Chapter 7
Human Resources
You and Your Employees
 Your employees are a reflection of you, your company
and your values
 Excellent personnel management begins with selecting
the right people
 Setting rules, expectations, and consequences is
essential to providing a healthy work environment
Golden Rule
Treat your employees as you
would like to be treated
Federal Laws
 2 Agencies enforce Federal Workplace laws
 US Department of Labor
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Fair Labor Standard Act of 1958 (amended)
Immigration Reform and Control Act
Family and Medical Leave Act
National Labor Relations Act (Wagner Act,Taft – Hartley Act)
Employee Polygraph Protection Act
Occupational Safety and Health Act
Federal Laws
 Equal Employment Opportunity Act
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Americans with Disabilities Act
Civil Rights Act (Title VII)
Age Discrimination in Employment Act
Equal Pay Act of 1963
U.S. Department of Labor
 Fair Labor Standards Act of 1938
 Minimum Wage Level
 Tipped, non tipped, Subminimum
 Overtime Wages
 Child Labor Laws
 Hour restrictions
 Equipment and jpb restrictions
 Record Keeping
 Keep Records for 3 years
 Overtime Exemptions
 Managerial vs. non Managerial
U.S. Department of Labor
 Immingration Reform and Control Act of 1986
 Restricts the hiring of illegal entrants into the United
States
 Using Form I -9, Employers must obtain written proof of
identity and employment eligibility
 Within 3 days of employment
 Keep on file for audit purposes
 Having a U.S. Citizen only policy for hiring – or “green card
only” policy is illegal, unless specifically exempted.
U.S. Department of Labor
 Family and Medical Leave Act
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May take up to 12 weeks of unpaid leave per year for
Birth of a child
Adoption or Foster Care of a child
Caregiving for a spouse, child or parent
A Serious Health Condition
 Does not apply to:
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Employees with less than one year of Service
A part time employee with less than 1,250 hours per year
Companies with fewer than 50 employees
Key Man Provision
U.S. Department of Labor
 National Labor Relations Act
 Union Related
 Prevents an employer from restraining employees from
organizing and exercising collective bargaining rights
U.S. Department of Labor
 Employee Polygraph Protection Act
 Restricts the use of a polygraph except in certain defined
cases (theft or screening employees with access to
controlled substances)
 The Occupational Safety and Health Act
 Workplace Safety
 MSDS (Material Safety and Data Sheets) on Chemicals
 Requires some companies to keep records of health and
safety related claims
 Prevents discrimination against employees who file illness
and safety related claims
Equal Employment Opportunity
Commission
 Americans with Disabilities Act (ADA)
 Prohibits discrimination against a qualified person with
a disability (or HIV) who with or without reasonable
accommodation, can perform the essential functions of
a job
 Most accommodations cost less than $50.00
 Employers have the right to reject or fire applicants
who pose a significant risk to health and safety
Americans with Disabilities Act
 All employers with 15 or more employees must comply
 Best Practices include:
 Accurate and updated job descriptions, including physical
tasks
 Limit questions on applications to job related functions
 Do not ask about disabilities, past health problems, drug
abuse, prescription drug use, hospitalizations or Workers
Compensation Claims
 Have a set interview format that is strictly job function
related
 Conduct all interviews in places that are accessible.
Equal Employment Opportunity
Commission
 Civil Rights Act of 1964 (Title VII)
 Prohibits discrimination on the basis of
 Gender
 National Origin
 Skin Color
 Race
 Also forbids sexual harassment
 Sexual Harassment laws apply not only to management –
but employees and customers as well.
Sexual Harassment
 Best Practices
 Adopt Clearly Defined Policies
 Establish a reporting method and make sure communicated
 Train and inform employees about what is appropriate or
not.
 Ensure that reported incidents are taken seriously and
promptly investigated
 Take Immediate Corrective Action
Equal Employment Opportunity
Commission
 Age Discrimination in Employment Act
 Companies that employ more than 20 cannot discriminate
against job applicants or workers over 40 years old
 Equal Pay Act of 1963
 Equal wages must be paid for jobs that are substantially
the same in skill, effort and responsibility.
State Level Employment Laws
 Workers Compensation
 The State fund that covers on the job bodily injury or
death while on the job
 Employers pay into the fund based on industry, number
of employees
 Payments are usually made quarterly
Determining Staffing Levels
 Have proper balance of permanent and part time
employees
 As a general rule, Labor should be between 20% – 30% of
Sales
 Computing Labor Costs –
 Not Just the paycheck
Labor Costs - Employer
 Employers Share of Social Security
 Federal and State Unemployment
 Workers Compensation
 Holiday, vacation and sick day benefits (if applicable)
 Bonus and other compensation
 Health Insurance paid by employer (Affordable Care Act)
These costs can add up to as much as 40% of total labor
costs
Recruiting
 The best recruitment sources are your own employees
 Use caution – too many close employees – one persons
problems become everyone’s
 Use contacts - vendors, educational institutes
 Keep records and applications submitted in response to
advertising.
Interviewing
 Set up a system that is easy to follow and use it every time –
keep records
 Before –
 Establish the company personality – communicate it.
 During –
 Establish a cordial, not overly friendly atmosphere free from
interruptions
 Keep control of the interview
 Let the applicant do the talking
 Concentrate on what they are saying and deliver a deliberate
response
 After
 Close with an explanation of status and next step
 Follow up with a communication on final status
Interviewing
 Ask Job related and Legal questions – Do
Not Ask About:
 Age or date of birth
 Country of origin
 Maiden Name
 Relatives names (unless applicant is a minor)
 Past Residences
 Religious Affiliation
Interviewing (Cont.)
 Membership in organizations
 Marital Status
 Pregnancy or future child bearing plans
 Age and number of children
 Diseases or major illnesses
 Credit Rating
 Owns or rents home
 Arrests not involving convictions
 Native Language
No Photographs until after the applicant is hired
Interviewing – Proper Questions
 Can you meet specified work schedules?
 Are you of legal age to perform work (i.e. Bartending)
 Do you have reliable transportation
 Educational or military experience as it relates to the job –
but not Discharge Status
 Professional Organizations
 References
 Like best about your last job
 Long term plans
 Strengths and weaknesses
Reference and Record Checks
 The more responsibility - the deeper the checks
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Criminal Records
Driving Records
Workers Compensation Records (some states make public)
Credit Records
Educational Records
Previous Employers –
Typically, by this time you have provisionally hired the
applicant pending the above checks – which they have
given written authority for you to do
Employee or Independent
Contractor? (W2 or 1099?)
The IRS has developed a series of questions –
Do you provide the person with detailed instructions?
Are their services vital to the company operations
Do you set the hours?
Does they work full time for the company?
Do you control the order and sequence of the work
performed?
Do you furnish tools or equipment to the employee?
Payroll
 Set clear wages and policies for
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Regular Pay
Premium Pay
Overtime Pay
Tips
 Record Hours – keep records for at least 7 years
Employee Benefits
 Employee Meals and Breaks
 Need to be defined and enforced
 Vacation Pay
 Sick Pay
 Holiday Pay
 Health Insurance – Affordable Care Act
 Jury Duty
Orientation and Training
 The First Day on the Job determines how well things
will go.
 Have an Orientation plan
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Meet key employees
Review Hand Book, company policies, rules and regulations
Pay rates, employee reviews, etc
Assign a “mentor” to train the new hire
Assign Performance goals and review date (typically 30 -90
days)
Motivating Workers
 Treat your staff as you would like to be treated
 Show respect and compassion, but be firm
 It is not a democracy
 Don’t be afraid to get dirty
 Reward high performers
 Be fair in discipline
Discipline and Termination
 Enforce your policies
 Discipline normally follows a certain set of step –
 Verbal Warning (documented date and time)
 Written warning(s)
 Suspension without pay
 Termination
Terminating an employee
 Two types of termination –
 Voluntary – resignation
 Involuntary
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Discharge only for proper, well documented reasons
Consult legal counsel
Conduct exit interviews
Treat the employee with dignity
If you feel endangered, have security or another employee
with you.
Employee Handbook
 Cover all rules and regulations
 Review and Update frequently
 Go over in detail at orientation
 Have employee sign that they have received a copy,
understand the contents and have had an opportunity to
ask questions.
Next Class
 Quiz Chapter 7
 Chapter 10 - Pricing