5 Phrases to Avoid Saying to Your Employees

Posted on Tue, Sep 11, 2012

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Tags: small business owners, employees, HR Allen Consulting Services, HR Informant

What ‘Obamacare’ Means for Your Small Business

Posted on Thu, Sep 06, 2012

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Tags: health care, health insurance, obamacare, President Barack Obama, HR Allen Consulting Services, HR Informant

California Court of Appeal Significantly Narrows Administrative Exemption

Posted on Thu, Sep 06, 2012

On July 23, 2012, in Harris v. Superior Court (Liberty Mutual Ins. Co.), a case that the California Supreme Court previously had reversed and remanded, the California Court of Appeal stuck by its prior conclusion and held that insurance claims adjusters do not qualify for the administrative exemption from overtime pay requirements.

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Tags: Fifth Circuit, settlement, HR Allen Consulting Services, HR Informant, Fair Labor Standards Act

401K Fee Disclosures Go Into Effect August 30

Posted on Wed, Aug 29, 2012

The U.S. Department of Labor’s (DOL) Employee Benefits Security Administration’s participant fee disclosure rule goes into effect on August 30, 2012.

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Tags: 401K, ERISAA, HR Allen Consulting Services, HR Informant, DOL

Enforcement Sweep Targets Illegally Operating Contractors

Posted on Wed, Aug 15, 2012

State enforcement efforts ramped up against California businesses that deliberately operate in the “underground economy” by not complying with state contracting, insurance and payroll requirements.

Dave Jones, California’s Insurance Commissioner, said that “Operation Underground,” a series of sweeps at construction sites suspected of illegal operations, resulted in 104 enforcement actions

Investigators issued enforcement actions for violations including:

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Tags: HR Allen Consulting Services, HR Informant, Labor Enforcement Task Force, California underground economy, enforcement efforts, JESF, Joint Enforcement Strike Force, LETF

$89.7 Million Awarded in Rest Break Class Action Lawsuit

Posted on Tue, Aug 14, 2012

If you thought the generally employer-friendly Brinker decision meant we won’t be seeing large financial awards in meal and rest break lawsuits, think again.

A Los Angeles County Superior Court judge ordered a security services firm to pay nearly $90 million in an employment lawsuit brought by 15,000 security guards, according to the Los Angeles Times.

The lawsuit alleged that the guards were denied off-duty rest breaks and were required to remain on call during their breaks. In the ruling, Judge John Wiley said: “Put simply, if you are on call, you are not on break. That has been the law for many years.”

Though the Brinker decision gave employers much needed guidance in the area of meal and rest breaks, California law still poses significant risks.

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Tags: Brinker case, meal and rest breaks, HR Allen Consulting Services, HR Informant

What Should a Small-Business Owner’s LinkedIn Profile Look Like?

Posted on Tue, Aug 14, 2012

LinkedIn has plenty of potential uses for a small-business owner: lead generation, marketing, and hiring, to name just a few. But your company’s presence on the site is one matter; your individual presence is another.

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Tags: LinkedIn, deductions, networking, HR Allen Consulting Services, HR Informant

How to Overcome Shyness When You’re the Boss

Posted on Tue, Aug 14, 2012

Some entrepreneurs just have a way with people. They’re the extroverts with the gift of gab: They can (and will) talk to anyone, anywhere, anytime. My father-in-law, a lifelong salesman, calls it “doing the chin boogie.” It’s a nice knack to have when you run your own business because, like it or not, that makes you a salesperson by default. But what if you’re an introvert?

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Tags: sales, HR Allen Consulting Services, HR Informant, management

Pay Your Nanny on the Company’s Dime and Risk Jail Time

Posted on Fri, Aug 10, 2012

You couldn’t run your small business without your nanny. Heck, without her looking after the kids, you wouldn’t even be able to go to work. So, it makes sense to put her on the company’s payroll, right?

Wrong. Your nanny is employed by your household, not your business.

U.S. law and the IRS are very clear on this point — and you run a big risk if you choose to bend the rules to make your life “easier.” In fact, if the government should ever find out, you’re likely to face and audit and potentially devastating penalties.

Here’s how to do the right thing:

  • Embrace being a household employer and apply for an Employer Identification Number from the IRS.
  • Ask your nanny to complete the necessary employment forms. These include an I-9 and a W-4. See IRS Publication 926 (2012): Household Employer’s Tax Guide for complete details.
  • Withhold (and remit to the IRS) your share of the employee’s Social Security and Medicare taxes. Together these taxes should amount to 7.65 percent of the employee’s wages, and they are the only withholdings legally required of a household employer.
  • Withhold and remit any applicable state and federal income taxes. Although this isn’t legally required, it will help your employee avoid large lump-sum bills at tax time.

Once the initial payroll and withholding process is set in place for your nanny, you’ll find that paying her separately is relatively simple. Besides, when you consider the potential alternative — audits, fines, even jail time — it’s well worth any extra effort.

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Tags: Taxes, HR Allen Consulting Services, HR Informant

How to Retain Employees from Day One

Posted on Fri, Aug 10, 2012

According to employee turnover cost studies compiled by Sasha Corporation, the cost to replace an entry-level employee who quits is $3,500, with estimates for other positions going as high as $25,000! This should provide small-business owners with ample incentive to keep staffers around — starting with the first day on the job.

How you set up the rookie’s first day is critically important to keeping employee turnover down and retention high. In larger companies, the process is called “onboarding,” but the benefits apply to your small business, too. Here’s what a successful welcome gets you:

  • New employees become productive quicker;
  • They get a keen grasp of your mission and values earlier; and
  • Their co-workers appreciate them being able to hit the ground running.

Get started before day one. Let’s say you’ve decided to hire Jane for that open accounting position. In the days following your decision (and before she starts the job), you can communicate with her via email and/or phone to share details about how your business operates and your vision for its future, as well as to answer any initial questions she may have.

Offer a warm welcome. On Jane’s first day, make sure that everything on her desk (telephone, computer, etc.) works and that she has the proper keys and supplies. If you can, greet her in person, but at the very least encourage her new co-workers to introduce themselves and offer a warm welcome. You might even throw her an informal “welcome aboard” party.

Provide information. Have you put together a simple employee handbook covering basic policies and procedures? This should be on Jane’s desk when she arrives. Other things she’ll want to know: computer passwords, names of the people she’ll work with (and their job titles and functions), where the conference room, restroom, and other key facilities are located. The more information she gets up front, the fewer questions she will feel obliged to ask — another way to boost a new employee’s comfort level.

Assign a mentor. Ask a veteran employee to serve as Jane’s mentor during her early days on the job. This mentor can offer answers to “behind-the-scenes” questions that Jane may not want to ask the boss.

Take the new employee to lunch. This is a big one! A new employee should never have to eat lunch alone on her first day. Encourage one or more co-workers to take her out (and tell them you’ll pay), so the “getting to know each other” part gets accelerated.

Get her feet wet. Feeling useful from day one is another great long-term retention tool. What project can Jane get started on right away? Even a small contribution will make her feel productive early on.

Check in and set expectations. At the end of the first day, invite Jane into your office for a chat. Ask how her day has gone, what impressions she’s come away with, and whether she has any concerns you can address. Take this opportunity to talk a little about some short-term goals you both agree on, so she has a good sense of your expectations.

Following a successful first day, Jane will likely go home eager to share her excitement with friends and family. That incidentally heightens your profile as an employer-of-choice, an attractive recruitment tool for future new hires.

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Tags: employee retention, HR Allen Consulting Services, HR Informant