1. Chapter 7
Human Resources

2. 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

3. Treat your employees as you would like to be treated
Golden Rule
Treat your employees as you would like to be treated

4. Federal Laws 2 Agencies enforce Federal Workplace laws
US Department of Labor
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

5. Federal Laws Equal Employment Opportunity Act
Americans with Disabilities Act
Civil Rights Act (Title VII)
Age Discrimination in Employment Act
Equal Pay Act of 1963

6. 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

7. 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.

8. U.S. Department of Labor Family and Medical Leave Act
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:
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

9. U.S. Department of Labor National Labor Relations Act Union Related
Prevents an employer from restraining employees from organizing and exercising collective bargaining rights

10. 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

11. 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

12. 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.

13. 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.

14. 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

15. 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.

16. 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

17. 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

18. 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

19. 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.

20. 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

21. 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

22. Interviewing (Cont.) No Photographs until after the applicant is hired
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

23. 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

24. Reference and Record Checks
The more responsibility - the deeper the checks
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

25. 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?

26. Payroll Set clear wages and policies for
Regular Pay
Premium Pay
Overtime Pay
Tips
Record Hours – keep records for at least 7 years

27. 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

28. Orientation and Training
The First Day on the Job determines how well things will go.
Have an Orientation plan
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 days)

29. 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

30. 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

31. Terminating an employee
Two types of termination –
Voluntary – resignation
Involuntary
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.

32. 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.

33. Next Class
Quiz Chapter 7
Chapter 10 - Pricing