You may be violating an employment law just by trying to be nice to your employees, says a new report.
The California Chamber of Commerce has produced a white paper cataloging the top 10 mistakes most likely to get a company sued. While a few of the laws cited apply specifically to California, some of them are federal and may apply in your state.
The report observes: "Employers may unintentionally violate employment laws simply by trying to provide some flexibility for an employee, save money for the company or just be nice."
Here are the top 10 mistakes:
1. Classifying all employees as exempt, whether they are or not
It may be easier to pay someone a salary rather than figure out overtime, meal breaks, rest breaks and the like. The time (and money) you save on bookkeeping is a false economy, however, since you could pay big time in penalties or a lawsuit. (See the report for more specifics.)
2. Letting employees work through lunch so they can take off early
A non-exempt employee is required to be given a 30-minute meal break, plus a 10-minute break for every four hours worked. If you deny one or the other, you owe the person an extra hour's wages; if you deny both in the same day, you owe an additional two hours. The wages must be paid during the pay period in which it's missed. The employee cannot waive his or her right to the breaks.
3. Making everyone an "independent contractor" because having employees is too much trouble
The report notes that contractors are happy until one of the following comes up: workers' compensation, unemployment insurance, state disability insurance or paid family leave benefits. Avoid these legal spiderwebs by determining who is and who isn't a contractor.
4. Not providing training about harassment and discrimination to managers and supervisors
Don't assume your employees won't need the information. Avoid lawsuits by providing the basic sexual harassment training required by law.
5. Letting employees decide which, and how many, hours they want to work each day
Most employees are restricted by law regarding the number of hours they can work without needing to be paid overtime. If you are allowing longer workdays for four-day workweeks, there are rules that need to be followed. Check with your state laws for specifics.
6. Terminating any employee who takes a leave of absence
From the report: "Employees have legal protection when they are away from work for various reasons, including workers' compensation, disability, pregnancy, family and medical leave, military leave, jury duty and many more."
7. Withholding an employee's final check if they fail to return company property
You may think you can withhold money while you wait for an employee to return a computer or a cellphone, but think again. Some states have laws that require you hand over the check the minute the words "you're fired" come out of your mouth. And if an employee quits and gives more than 72 hours notice, the check must be ready on his or her last day. The penalties start accruing from the moment the check is late-one day of wages for every calendar day of delay.
8. Providing loans to employees and deducting the money from their paycheck each pay period
This seems perfectly fine, doesn't it? Except most state labor codes permit only paycheck deductions authorized by law and those authorized by the employee for health insurance or other benefits. No other deductions are permitted. If you're making a loan, you should have the employee sign a promissory note and a lawyer review it.
9. Using noncompete agreements to protect confidential information
Many employers force employees to sign these agreements to protect business secrets, customer lists, and pricing information and to prevent employees from working for the competition. Essentially, you can't force your employee to stay with you, nor can you prevent him or her from making a living.
10. Implementing a "use it or lose it" vacation policy and avoid paying out all the money at termination
Accrued vacation is a form of wages and cannot be denied. You can stop an employee from accruing vacation beyond a "reasonable" amount, but you cannot take away what he or she has already earned. What is considered a "reasonable" cap? Generally 1.5 to two times the annual accrual, says the report.
Have you suffered any consequences from doing any of these things?
--
Courtney Rubin is a business writer and contributing editor to Inc. magazine.
Related Stories
| Feb 24, 2022
Signs of ‘Antiwork’ appear in the architecture industry
Reddit's r/Antiwork forum highlights the mounting pressures everyday workers face in a purely capitalistic society. AEC industry professionals are not immune to these pressures.
Office Buildings | Feb 23, 2022
The Beam on Farmer, Arizona’s first mass timber, multi-story office building tops out
The Beam on Farmer, Arizona’s first mass timber, multi-story office building, topped out on Feb. 10, 2022.
Codes and Standards | Feb 21, 2022
More bad news on sea level rise for U.S. coastal areas
A new government report predicts sea levels in the U.S. of 10 to 12 inches higher by 2050, with some major cities on the East and Gulf coasts experiencing damaging floods even on sunny days.
Wood | Feb 18, 2022
$2 million mass timber design competition: Building to Net-Zero Carbon (entries due March 30!)
To promote construction of tall mass timber buildings in the U.S., the Softwood Lumber Board (SLB) and USDA Forest Service (USDA) have joined forces on a competition to showcase mass timber’s application, commercial viability, and role as a natural climate solution.
University Buildings | Feb 18, 2022
On-campus performing arts centers and museums can be talent magnets for universities
Cultural facilities are changing the way prospective students and parents view higher education campuses.
University Buildings | Feb 17, 2022
A vacated school in St. Louis is turned into a center where suppliers exchange ideas
In 1871, The Carondelet School, designed by Frederick William Raeder, opened to educate more than 400 children of laborers and manufacturers in St. Louis. The building is getting a second lease on life, as it has undergone a $2 million renovation by goBRANDgo!, a marketing firm for the manufacturing and industrial sectors.
Sponsored | BD+C University Course | Feb 17, 2022
Metal roofing trends
New ideas in design and constructability are radically changing how metal systems are used as roofing for commercial and institutional buildings. Behind the investment in these new kinds of expressions and construction approaches is a growing interest in improved performance and reduced environmental impact. Metal roofing systems can cut cooling and heating loads significantly, according to the EPA.
Data Centers | Feb 15, 2022
Data center boom: How two AEC firms plan to meet unprecedented demand for data center facilities
Ramboll's Jim Fox and EYP Mission Critical Facilities' Rick Einhorn discuss the recent joining of their companies at a time of unprecedented data center demand. BD+C's John Caulfield leads the discussion with Fox, Ramboll's Managing Director for the Americas, and Einhorn, EYP Mission Critical Facilities' Managing Director.
Architects | Feb 15, 2022
Binkley Garcia Architecture and Goodwyn Mills Cawood join forces in Nashville
Goodwyn Mills Cawood (GMC) is pleased to announce the acquisition of architecture and interior design firm Binkley Garcia Architecture in Nashville.
Resiliency | Feb 15, 2022
Design strategies for resilient buildings
LEO A DALY's National Director of Engineering Kim Cowman takes a building-level look at resilient design.