The Business of Having Employees

Presented By:

Steven Sweeney, President

NEMR Total HR

Practical Human Resources Information For Businesses and

How To Manage The Future Landscape

Background Information

• President of a HRO (Human Resources Outsourcing) firm– 16 years in HR industry

– Client employees in 11 states

– Firm assists clients and employees with daily employee relations, compliance issues, vendor consolidation and total employer offering

• Founding partner of licensed insurance agency– Licensed insurance producer since 2002

– Offices in NJ & PA

– All aspects of employee-related benefits

• Featured speaker– Provides expert presentations on Human Resources and various

employee related topics to business and industry groups

Most Days With Employees

Discussion Points…

• Need to Know!– Employee Onboarding

– OSHA & Drug Testing

– Anti-Harassment

– Employee Handbook Updates

• Need to Watch!– Paid Sick Leave

– ACA Provisions

– Pay Equity

– E-Verify

– FLSA Updates

• How To Handle!– In-House

– Consulting Model

– Outsourcing Model

• Handouts– Restrictive Covenants

– Small Business & PEO

“Human Resources isn’t a thing we do – it’s the thing that runs our business.”

-Steve Wynn

How Complicated Could It Be?!?

Sample of Federal & State Agencies That Regulate Employment

• Department of Labor (DOL)

• Department of Justice / Civil Rights (DOJ)

• Occupational Safety & Health Administration (OSHA)

• Employee Benefits Security Administration (EBSA)

• Department of Health & Human Services (DHS)

• Equal Employment Opportunity Commission (EEOC)

• National Labor Relations Board (NLRB)

• Workers Compensation Bureau

• Department of Banking & Insurance

• And many more (based on location and industry…)

Need To Know!

• Employee Orientation & Onboarding– Critical Items

• Regulatory Paperwork

– Best Practices

• Establish Timeframes

• Preparation

• Reference Checks

• Background Checks

• Behavioral Assessments

• Offer Letter

• Immersion & Buddy System

• Office “Swag”

*Data from recent Bamboo HR studies.

90% of employees decide whether they will stay with a company or leave within the first 6 months.

Recent survey's have shown 75% of new hires say training during the first week is most important to them.

Why?

Need To Know!

• OSHA & Post-Accident Drug Testing– Critical Knowledge

• OSHA interpretation of anti-retaliation provision's changing the landscape for employers who conduct post accident drug testing

• New Presidential administration may change current opinion of these rules, but this is an unknown

• OSHA interpretation is “law of the land” at the moment

– Best Practice• Limit post-accident testing to situations where drug use likely contributed

to the accident

• Have reasonable certainty a drug test can accurately show impairment caused by the drugs use

• Only test when drug use could have been causal factor in accident– i.e. Drug presence in persons system vs. drug preventing the person from

working safely

Need To Know!

• Anti-Harassment / Bullying– Critical Items

• More important now than ever to educate your workforce

• Written policy

• Non-Retaliatory provision

• Reporting mechanism

– Best Practices

• 2 assigned personnel for reporting purposes

• Training 2x’s per year with live trainers (employees & supervisors)

• Clear examples of prohibited conduct

• Survey’s

• Hotline

Need To Know!

• Employee Handbook Updates – Critical Items

• Social media policies

• Background checks

• Violation reporting

• Employer size

– Best Practices

• Review current handbook

• Be aware of continuous changes

• Update as soon as administratively feasible

• Obtain written or digital signature of acknowledgement of understanding and receipt

NLRB v. T-Mobile USA “found several workplace rules were unlawful, including a rule about maintaining a positive work environment”.

Need To Watch!

• Paid Sick Leave– What is happening currently?

• Federal sick leave program has been in place since 1993 for employers of specific sizes

• Certain states have policies that govern programs

• Specific cities within states are now adopting measures to provide these benefits

– Where are we headed?

• Look for more major metro cities to enact these programs

• Federal programs have been discussed to make the current law more broad in scope

• New laws are targeting employers of all sizes

Need To Watch!

• Affordable Care Act (ACA) Provisions– What is happening currently

• Government is in turmoil regarding this legislation

• “Obamacare is the law of the land”

• Challenges with insurers

– Some states are down to single insurers, some states have none at all in parts (Tennessee)

– Where are we headed?

• Full repeal was unlikely

• “Repeal and Replace” effectively delayed… for now

• Tweaks may happen – but not likely to happen soon, dependent largely on administration

Need To Watch!

• Pay Equity– Background

• Organized efforts and legislation on the books have existed for decades

• Has been building strong support in recent years as women have taken a bigger spotlight in major political positions

• Legislators are taking up the cause – Specifically with high profile cases such as “US Women’s Soccer” and “Team USA

Hockey”

– Why “Hot” Now?• Effective March 2018, certain employers will have to report a new 2017 EEO-1

report including summary pay data– Private employers with 100 or more employees will report summary pay data

– Federal contractors and subcontractors with 50-99 employees will continue to report as current

– Private employers with fewer than 99 employees and Federal contractors and subcontractors with 49 employees or fewer are not currently required to complete the EEO-1

Need To Watch!

• E-Verify– Background

• Voluntary for most employers since 1996

• Each employer representative utilizing system must undergo registration process

• Good practice, but administratively cumbersome

– Electronic process, but still need to complete paper form

– Why “Hot” Now?

• New Administration is very eager to tackle immigration and Homeland Security

• Mandatory E-Verify is on the horizon

• Still administrative things to be worked out for the system

• Research registration now, gain a comfort level and be ahead of the curve

Need To Watch!

• Fair Labor Standards Act (FLSA) Updates– Background

• Federal law governing exempt and non-exempt employment status

• Sweeping regulation changes were to take effect in December of 2016

• Last minute judicial ruling halted the implementation of the new regulations

– Why “Hot” Now?

• Law will most likely be revised and enacted

• Examine your current workforce if you didn’t prepare in 2016

• Pay close attention to the salary thresholds

– New regulations indicate the $35K range

How Do I Handle All Of This?

There are a variety of ways to ensure your organization iskeeping up with the myriad of federal, state and local lawsrelated to employment. We will briefly examine three of thoseways.

– In-House

– Consultant Model

– Outsourcing Model

In-House Model

Positive Attributes

• Personnel is on site

• Corporate culture is more easily influenced*

• Other duties can be assigned as necessary

Negative Attributes

• All liability and responsibility is assumed by the company

• Overhead cost

• Continuing education

• Workload ratio

• Supervisory oversight is necessary

• Vendor management

• Only “know what they know”

• Knowledge is transient

*This can be a positive or negative attribute

Consulting Model

Positive Attributes

• Specialized knowledge

• Unbiased advisory

• Short term commitment

• Available on “as-needed” basis

• Flexibility

Negative Attributes

• More reactive

• Can be costly

• Has to be managed with internal resources

• “Project” based

• Transactional

Outsourcing Model

Positive Attributes

• Fixed cost for budgeting

• Continuous counsel

• Team of specialists

• Vendor consolidation

• Complete discovery related to employee items

Negative Attributes

• Perception of less control

• Off premise

• Learning curve (client and vendor)

• Clarity of relationship for staff

• Intimate knowledge

Parting Thoughts To Ponder…

People are not your most important asset. The right people are.

- Jim Collins

Time spent on hiring is time well spent.

- Robert Half

Never hire someone who knows less than you do about what he’s (or she’s) hired to do.

- Malcolm Forbes

Questions & Answers

Thank you for your time and attention!

Steven Sweeney

NEMR Total HR

4-A Eves Drive; Suite 108

Marlton, NJ 08053

ssweeney@nemrhr.com

www.NEMRHR.com