Author Archives: Stephanie

Moonlighting Policy: Why You Need One & What to Include

September 15, 2021

What exactly is a moonlighting policy, and how do you know if your company needs one? Whether you are about to hire your first employee or have a rapidly growing team, many organizations have this critical concern.

A moonlighting policy, also known as an outside employment policy, establishes company guidelines on employees obtaining outside employment which may interfere with their primary job responsibilities.

Employees with external jobs can negatively impact your business in several ways, including:

Scheduling availability
Work productivity and performance
Professional behavior
Conflict of interest

An outside employment policy can protect your business from any employee who maintains another job that could cause these types of disruptions. It allows you and the employee to come to an agreement while setting boundaries and the ability for you to enforce them if necessary.

There is a lot to consider when implementing an outside employment policy, so keep reading for:

Best practices
What to include in your policy
Legal implications

Best Practices for Developing a Moonlighting Policy

Follow these guidelines to ensure your policy is focused, comprehensive, and empathetic.

Stick to the Employee’s Job

When creating a moonlighting policy, do not regulate what employees can and cannot do outside of your workplace or working hours. These overly restrictive practices rarely work and will not hold up legally.

Instead, outline your expectations for a successful working relationship. These might include being punctual and reliable for their work schedule, performance expectations, and a professional attitude, just to name a few.

Make It Fair and Ethical

Keep in mind that many workers who have more than one job are those with lower incomes. Make sure your moonlighting policy doesn’t negatively impact those people.

Choose to give them options that help with their personal lives while protecting your company. For example, offer flexible or consistent schedules so employees can manage their work for you along with outside employment and responsibilities.

Address Safety Concerns

Let employees know that you care about their safety. Those working multiple jobs could become overtired, stressed, distracted, and burnt out, resulting in accidents and injuries. And, of course, no employer wants more workers’ compensation claims, either.

Announce the Policy Upfront

Communicate your outside employment agreement during the hiring process. New employee orientation is the best time to review these types of policies and agreements, all of which should be in your employee handbook. Include a signature line in the handbook that the employee signs to acknowledge they’ve read and understood all company policies.

What to Include in Your Outside Employment Policy

Include these clauses to ensure your policy thoroughly protects your company.

General Hindrance

A general hindrance clause states that employees may not engage in outside employment or business that disrupts their performance at your company. Make it clear that you expect them to treat their position with your business as the primary job.

Conflict of Interest

Include a conflict of interest clause to ensure your employees don’t work for your competitors while they work for you. Specify what you define as a conflict of interest. For example, employees cannot use or share your company’s confidential information, techniques, policy, programs, etc. You can also address these concerns in detail with a non-compete agreement.

Additionally, explain your right of refusal. While you should not (and in some states, legally cannot) prohibit employees from having a second job, you can deny them from working for parties like your competitors, vendors, suppliers, and specific clients.

Require Approval of Employment

Many employers include a statement requiring employees to get approval for outside employment. This allows them to verify that the employee’s other job will not interfere with their primary job duties. Again, be sure this rule is not too restrictive and apply it equally to all employees.

Use of Company Resources

Finally, be sure to state that employees should not use company resources for outside employment. This means they should not be doing work for another company in your workplace or on your time.

Legal Implications

Be aware of both federal and state laws that could impact your moonlighting policy. Most importantly, do not prohibit employees from outside employment completely. This restriction can never be fully enforced and, in some states, is not even legal.

Employers may have the right to terminate employment if the employee is causing harm to the company, performing their job duties inadequately, and/or behaving unprofessionally. A well-written policy will communicate these expectations and protect your organization in this situation.

Employers also have the right to inquire about an employee’s outside work to verify that there will be no confidentiality issues or conflicts of interest. The following questions are generally legal for you to ask:

External employer’s name and active DBAs
Employer address
General description of working relationship (scheduling, work frequency, etc.)
Type of work the employee is performing
Licenses or certifications that are required or preferred (avoid paying for items that the employee is financially benefiting from them elsewhere)

As long as you include the above elements and considerations in your moonlighting policy, it can play an essential role in protecting your organization. If you don’t already have an outside employment policy in place, or you know it’s time to have your existing agreement reviewed by experts, we can help! Contact BlueLion today at 603-818-4131 or info@bluelionllc.com for assistance with policy development or updates.

The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.

Quick Guide to Labor Law Posters: 7 Common Questions

September 7, 2021

Whether you just hired your first employee, have converted to a fully remote workforce, or simply haven’t reviewed your labor law posters in a hot minute, it’s always a good time to audit them and ensure you are compliant.

Federal labor laws require specific types of employers to post specific notices. We know, that’s a lot of specifics. That’s because requirements vary based on factors like your industry, workplace, size, location. And while it may feel a bit overwhelming, it’s crucial to maintain updated posters—if not, your company could be slapped with some hefty fines.

We’ve put together a quick and easy guide for employers answering seven frequently asked questions about labor law posters to eliminate some of your stress. Read on for key answers and resources.

1. Who needs to post labor law posters?

This varies by each U.S. Department of Labor (DOL) statute. Not all employers are covered by every law, so certain employers may not be required to post a particular notice. Some small businesses may not be covered by the Family and Medical Leave Act (FMLA), for example, so they would not be required to post the FMLA notice.

To find out which posters you must post, visit the DOL’s Poster Advisor. The DOL does not provide guidance on state poster requirements, so be sure to check with your state Department of Labor to learn about your state’s requirements.

2. Where can I find federal labor law posters?

Posters are available from the DOL at no cost to employers. Check the DOL Poster Topic page for a list of all Federal labor law posters available for download. You can also call 1-866-487-2365 to request them via mail. Up to five of each type of poster can be sent to you for free.

Again, check with your state Department of Labor for your state’s posters.

3. Where do I need to post workplace posters?

General guidelines from the DOL state that posters must be displayed in conspicuous places where they are easily visible to all employees, such as break rooms or lobbies.

Three federal workplace posters must also be placed in conspicuous areas where both employees and applicants can see them for employment. They are the:

Family and Medical Leave Act (FMLA): FMLA-covered employers must display this poster in all locations, even those where there are no FMLA-eligible employees.
Equal Employment Opportunity (EEO): The DOL states, “Federal contractors and subcontractors covered by Executive Order 11246 must also post the notice where it can be readily seen by representatives of each labor union with which the covered contractor or subcontractor has a collective bargaining agreement.”
Employee Polygraph Protection Act (EPPA): Employers must place this notice in a prominent and conspicuous place in every location where employees and applicants can readily observe it.

4. What are the size requirements?

Federal regulations only specify a size for the Occupational Safety and Health Act (OSHA) poster and Executive Order 13496 poster. The DOL states that all other federal workplace posters need to be easily readable.

You can download them all in the proper size for free on the DOL Poster Topic page linked above.

5. How often do I need to update labor law posters?

Hundreds of labor law changes occur each year, and many of them require employers to display updated posters. The tricky part for employers is that both federal and state agencies can make labor law changes at any time and often do so without notifying employers.

Review federal and state requirements regularly to ensure you have the most up-to-date workplace posters and remain compliant. You will need to cross-reference the print date on your posters with the list of notices on the DOL Poster Topic page.

6. Do nonprofit organizations need to post workplace notices?

The DOL states that an organization’s nonprofit or for-profit status generally has no bearing on whether they have to post notices. Even a church with just one paid employee must post some workplace posters.

Certain organizations that use only unpaid volunteers and may be exempt from federal poster requirements. To ensure your volunteers qualify, contact the Wage and Hour Division toll-free at 1-866-487-9243.

7. What about remote businesses and organizations?

Posting required labor law posters and communicating this critical information is a growing challenge as many businesses turn to telework.

Earlier this year, the DOL released new guidance for remote workforces, with distinctions based on one-time versus continuous notices and partially versus completely remote workforces:

One-time notice requirements: Employers may satisfy these by email delivery if employees routinely receive emails from the employer.
Employers with some remote employees: Physical posters for continuous notices are required for onsite employees, while the DOL encourages electronic posting for telecommuting employees.
Employers with all-remote employees: These employers may satisfy continuous-posting obligations via electronic-only means if all employees only work remotely, routinely receive information from the employer via electronic methods, and have readily available access to the electronic posting at all times.

Note that employees must be able to access electronic notices without requesting permission via an internal or external website or a shared network drive or file system. You must notify remote employees of where and how to access electronic notices.

Some businesses post job openings online and only interview applicants on the phone or virtually. The DOL advises these employers to place a prominent notice on their site where the job postings are listed, stating that “Applicants have rights under Federal Employment Laws” and linking to the FMLA, EEO, and EPPA posters. Again, this is permissible as long as the applicants have readily available access to the electronic posting at all times.

It may seem like just another chore, but maintaining updated federal labor law posters is a vital HR responsibility that keeps your company compliant, promotes workplace safety, and reduces risk.

Do you have specific questions about workplace notices and labor laws? Contact BlueLion today at 603-818-4131 or info@bluelionllc.com to learn more!

The information on this website, including its newsletters, is not, nor is it intended to be, legal advice. You should contact an attorney or HR specialist for advice on your individual situation.

Americans with Disabilities Act: 6 Things Every Employer Must Know

August 24, 2021

Are you an employer with a growing team? If so, it is time you pay attention to the Americans with Disabilities Act and understand these important regulations.

In our straightforward guide, we’re answering:

What is the Americans with Disabilities Act?
Who must comply?
Who is protected?
How should employers initiate the interactive process?
What is a reasonable accommodation?
When is a reasonable accommodation considered an undue hardship?

Read on for answers to these six crucial questions.

What is the Americans with Disabilities Act?

The Americans with Disabilities Act of 1990 (ADA) makes it illegal to discriminate against qualified individuals with disabilities in:

Employment
State and local government services
Public accommodations
Transportation
Telecommunications

The ADA was amended in 2008 with several significant changes, including broadening the definition of “disability.”

As an employer, you must understand the part of the ADA that outlaws job discrimination, which is enforced by the Equal Employment Opportunity Commission (EEOC).

Who must comply with the ADA?

According to the EEOC, employers that have to comply with ADA regulations include:

Private employers
State and local governments
Employment agencies
Labor organizations
Labor management committees

Basically, the ADA prohibits job discrimination by all employers, including State and local government agencies, with 15 or more employees. Therefore, it is illegal to discriminate in all employment-related activities, including but not limited to:

Recruitment
Pay
Hiring
Firing
Promotion
Job assignments
Training
Leave
Lay-off
Benefits

This also means employers cannot:

Retaliate against an applicant or employee who enacts their rights under the ADA, or
Discriminate against an individual (disabled or not) because of their family, business, social, or other relationship or association with an individual with a disability.

Who is protected?

Applicants and employees with substantial physical or mental impairments are protected by the ADA. This includes those who are considered to have a substantial impairment currently and those who have a record of a substantially limiting impairment.

A substantial impairment is a disability that significantly limits or restricts a major life activity, such as:

Hearing
Seeing
Speaking
Breathing
Performing manual tasks
Walking
Caring for oneself
Learning
Working

More specifically, the ADA Amendments Act (ADAAA) includes the following impairments:

Deafness
Blindness
Intellectual disabilities
Completely or partially missing limbs
Mobility impairments requiring the use of a wheelchair
Autism
Cancer
Cerebral Palsy
Diabetes
Epilepsy
HIV or AIDS
Multiple Sclerosis
Muscular Dystrophy
Major depression
Bipolar Disorder
Post-traumatic Stress Disorder
Obsessive-compulsive Disorder
Schizophrenia

An ADA-covered individual must also be qualified for the job with or without reasonable accommodation, meaning they must:

Meet job requirements regarding educational background, employment experience, skills, licenses, and any other job-related qualifications; and
Be able to perform essential job functions with or without reasonable accommodation.

The ADA only bans discrimination against a qualified applicant or employee based on their disability. Employers still have the right to hire and promote the most qualified candidates, and the law does not contain any affirmative action obligations.

What about individuals with substance use disorders?

Drugs and alcohol are a delicate area when it comes to ADA compliance.

Individuals who are currently using illegal drugs are not protected by the ADA, nor are those who use drugs casually. According to the EEOC, employers may still administer drug tests to applicants or employees for current illegal drug use and make employment decisions based on verified test results. However, those who are addicted to drugs, have a history of addiction, or who are regarded as being addicted are considered to have an impairment under the law.

Employers should also note that a person with alcohol use disorder is considered to have a disability and is protected by the ADA if they are qualified to perform the essential job functions. While you may be required to provide reasonable accommodation to an applicant or employee with alcoholism, you can discipline, discharge, or deny employment to an individual whose alcohol use negatively impacts job performance or conduct. Employers may also prohibit the use of alcohol in the workplace and can require that employees not be under the influence of alcohol.

How should employers initiate the interactive process?

The interactive process is a conversation about an applicant’s or employee’s disability that ensures compliance with ADA regulations. Through this process, the applicant/employee, healthcare provider, and employer discuss the nature of the disability and possible limitations on the individual’s ability to perform the essential job duties.

Although not required, employers should have a policy and process in place for those who need to submit a request for accommodation. These requests should be directed to HR, not supervisors, as HR professionals are much better equipped to handle the nuances and legal risks of ADA requests.

To conduct the interactive process, employers should:

Review the accommodation request from the applicant/employee or their healthcare provider. The ADA does not require written requests, but it is best practice to document everything throughout the process.
Obtain written medical release or permission from the applicant or employee. You will need this permission before a medical professional can disclose information or answer questions about the individual’s disability.
Request that the employee provide appropriate documentation from their healthcare provider about the nature of their impairment(s), severity, duration, activities limited by the impairment(s), and how the impairment(s) limit the employee’s ability to perform the job’s essential duties/functions.

What is a reasonable accommodation?

According to the EEOC, “Reasonable accommodation is any change or adjustment to a job or work environment that permits a qualified applicant or employee with a disability to participate in the job application process, to perform the essential functions of a job, or to enjoy benefits and privileges of employment equal to those enjoyed by employees without disabilities.”

Reasonable accommodation examples can include everything from adjusted work schedules and remote work to installing elevators and renovating restrooms to make them accessible.

When is a reasonable accommodation considered an undue hardship?

Employers do not need to provide reasonable accommodation if doing so would cause an undue hardship, meaning it would:

Be excessively costly, extensive, substantial, or disruptive, or
Fundamentally change the nature of the job or operation of the business.

When an employer uses the “undue hardship” rationale, the EEOC will consider several factors, including:

Cost of the accommodation
Size of the employer
Employer’s financial resources
Nature and structure of the employer’s operation

If you determine an accommodation to be an undue hardship, you must attempt to find another accommodation that will not create such a burden. Your HR and legal counsel can help you assess accommodation requests and search for alternatives in cases of undue hardship.

If you need assistance developing an ADA policy, contact BlueLion today at 603-818-4131 or info@bluelionllc.com! Our HR experts will be happy to help you establish a thorough process and safe work environment for all employees.

The information on this website, including its newsletters, is not, nor is it intended to be, legal advice. You should contact an attorney or HR specialist for advice on your individual situation.

An Employer’s Complete Guide to Dress Code Policy Development

August 18, 2021

Is a dress code policy essential for every workplace? Even in this day and age?

Yes, these guidelines should be a part of every employee handbook! From insurance agencies to manufacturers to software development companies, every organization needs a dress code policy. It is crucial to set expectations about the image you want employees to convey about your organization. A thorough, well-thought-out dress code will help employers meet comfort, professionalism, safety, brand, and image standards.

Today’s employers must also consider the culture they want to create and how to avoid discrimination claims while protecting employees’ rights—which is why it’s critical to involve your human resources and legal teams in the development of the policy.

Dress codes can range from business professional to business casual to casual and vary based on the day of the week or time of year. Some organizations may require uniforms, whether for all employees or those in certain roles. Now, companies also have to consider work-from-home dress code policies.

So, how can you create a company dress code policy that is fair and comfortable for employees and suits your organization? Let’s look at the most common options, and the key elements every dress code policy should include.

4 Types of Dress Code Policies

Business Professional

Professional dress codes are most common in formal business settings where employees interact with visitors, clients/customers, and the public. These professionals need to appear polished and put-together to create trust and confidence. Think law, finance, banking, and accounting firms. Business formal attire includes:

Suits
Button-down shirts
Blouses
Dresses
Skirts
Sweaters
Ties
Nice belt
Cufflinks
Dress shoes, heels, or flats
Understated jewelry/accessories

Professional dress codes often call for more conservative colors and patterns (e.g., black, gray, navy, or muted/pastel tones). Typically, casual clothes and shoes are not allowed.

Business Casual

Other organizations opt for a business casual dress code policy. Less formal companies might include creative workplaces like marketing agencies or technology brands. This style includes:

Pants
Casual dresses/skirts
Polos
Cardigans and sweaters
Denim
Khakis
Blazers
Simple shoes, flats, heels, or loafers
Larger, more unique jewelry/accessories

While business casual dress codes often prohibit clothes with graphics, shorts, ripped clothing, tank tops, and sandals, this varies from one company to another. These limitations could be due to a combination of company image and health and safety regulations.

Casual

Casual dress codes often apply to those who do not have customer contact or businesses with a more laid-back brand. Casual offices generally allow employees to wear their everyday attire, including:

Blue jeans
T-shirts
Capris
Long/knee-length shorts
Athletic shoes

Of course, casual dress code policies may still have provisions against showing midriffs, wearing sandals, or sporting clothing with inappropriate graphics.

Many organizations incorporate “Casual Fridays” into their dress codes, designating Friday as the day of the week when employees can wear more informal attire. Others offer summer policies with a relaxed dress code that usually runs from Memorial Day through Labor Day.

Uniforms

The uniform is a more restrictive dress code that might be required by law, by the nature of the business, or simply based on the employer’s preference. Industries in which uniforms are common include:

Healthcare
Hospitality
Government agencies
Emergency services
Utility services (e.g., cable and internet providers)

Uniforms can range from specific attire, like medical scrubs, to standardized colors and types of apparel, like Target’s red shirt and khaki pants.

If you’ve ever worked in an environment in which uniforms are required (or even went to private school as a child), you might be familiar with their pros and cons. Benefits of wearing uniforms include:

Safety: Some jobs may require protective gear, such as fire-resistant suits and steel-toed boots.
Branding: Uniforms can present a specific, easily recognizable image and help customers identify employees.
Appropriateness: Uniforms help avoid inappropriate outfits in the workplace by limiting options.
Productivity: When all employees are in the same uniform, it eliminates the distraction of clothing and comparison.

Like any strict dress code, uniforms can also have potential drawbacks if:

Employees push back against wearing them.
Customers or clients perceive the uniforms as inappropriate, resulting in negative feedback.
Uniforms are not planned well and cause functional problems.

Not to mention, employers must consider who will pay for the uniforms. Check both state and federal laws on this topic. Although the Fair Labor Standards Act (FLSA) allows deductions for uniforms as long as it won’t bring pay below minimum wage, some states have more restrictive laws requiring employees to pay for required uniforms. Consult your HR and legal departments before instituting a uniform policy.

Remote Work Dress Code Policies

On top of treading lightly around fair and equitable dress code policies, a growing number of employers are now facing the question of remote work dress codes.

You may be wondering why a dress code is necessary if your whole team works from home. There are a few key reasons:

Promote productivity: According to a recent survey of 1,000 remote workers by CouponFollow, business-professional, business-casual, and smart-casual dressers all reported higher levels of productivity than those who dressed in gym clothes and pajamas. It sounds like looking put together really does help you feel put together.
Create a sense of camaraderie: A dress code policy that requires everyone to dress the same helps employees feel like they’re part of a team and connected—even if they’re spread around the world!
Boosts morale: Employers can stick to a dress code and start casual days that allow employees to wear their favorite comfy attire.

Between all of the above, instituting a remote work dress code policy can improve motivation. But it’s essential first to determine why you have a work-from-home dress code. Do you want to create uniformity? Convey a particular brand image? Make sure your dress code policy is specific (i.e., list the types of clothing items permitted) and allows flexibility based on seasons and employee locations.

What to Include in Your Dress Code Policy

Every organization can develop a fair and effective dress code policy as long as they:

Outline expectations about how employees should present themselves at work and why (the why helps get employee buy-in).
List who the policy applies to: Is it all employees? Does it vary by position?
Explain general guidelines about appropriate clothing and other related items like tattoos, hygiene, and jewelry.
Specify the dress code, what type of clothing is permitted or required, what is not allowed, and when employees may need to adhere to a different dress code.
Note that employees can address any dress code concerns with HR.

Additional Tips

Follow these extra tips as you develop your dress code policy to mitigate possible lawsuits:

Keep it gender-neutral.
Consider religious accommodations.
Know the health and safety requirements for your industry.
Loop in your HR and legal team to address any potential legal issues.

Protect Your Organization with a Dress Code Policy

Nip any potential workplace dress- or hygiene-related issues in the bud with a comprehensive dress code policy. You’ll want to consider the:

Nature of your industry/work
Health and safety risks
Professionalism
Comfort
Desired brand image

If you need assistance with a dress code or any other type of HR policy development, contact BlueLion to learn how we can help at 603-818-4131 or info@bluelionllc.com today!

The information on this website, including its newsletters, is not, nor is it intended to be, legal advice. You should contact an attorney or HR specialist for advice on your individual situation.

How to Update Your Employee Handbook: 11 Policies & Sections to Review

August 10, 2021

While employers are not legally required to have an employee handbook, this document does the job of clearly informing employees of their rights and can protect your business during lawsuits. Maybe your company already has a handbook—but the work doesn’t end there! You’ll need to review and update it at least annually to ensure your policies are modern and compliant with current laws and regulations.

Why is it so critical to review your handbook regularly? For one thing, outdated, non-compliant policies could leave your company at risk of costly litigation. Check yearly for state, local, and federal compliance and ensure any changes are reflected in your policies. You can find many of these changes on your state’s Department of Labor (DOL) site or consult with your attorney.

You should also ensure your policies align with today’s trends and technology (i.e., social media, cybersecurity, etc.). Not to mention, there is even more to consider since the COVID-19 outbreak, including remote work and paid leave policies.

Keep reading for 11 crucial policies and sections to pay attention to during your yearly employee handbook update process.

11 Employee Handbook Policies & Sections to Review

1. Mission Statement & Core Values

Have you incorporated your organization’s mission statement and core values into your employee handbook? If not, it’s a useful place to do so.

The mission statement defines a company’s why and what, while the values outline how you aim to achieve that mission. In other words, your values provide behavioral guidelines of how all team members are expected to conduct themselves and what kind of culture you aim to create. What better place to remind employees of these expectations than the handbook itself?

2. Multiple Locations

Do you have employees in many different locations? You may need location-specific versions or sections to ensure you address and communicate laws, regulations, and employees’ rights.

Many states, and even some cities, have specific laws and regulations on things like the Family and Medical Leave Act (FMLA), minimum wage regulations, overtime, fair scheduling, paid time off (PTO), meals and breaks, and more. Make sure your handbook and policies comply with the laws in each location where you have employees.

3. Remote Work Policy

Following the COVID-19 pandemic, remote work became the norm for many in 2020. At this point, many businesses have changed up the way they work by converting to fully remote work or hybrid schedules. Whatever your company has decided, your remote work policy should reflect the new practice so that all current and new employees clearly understand expectations.

Is your team returning to the office full-time? Perhaps you already have? You still need to update your policies on providing reasonable accommodations under the Americans with Disabilities Act (ADA) and other anti-discrimination laws. The Equal Employment Opportunity Commission (EEOC) states that allowing an employee to work from home could be a reasonable accommodation if it does not cause undue hardship for the company.

4. Paid Leave Policies

While updating your employee handbook, ensure you are compliant with state and federal laws on paid leave. This goes for PTO and sick leave, too. Check annually for:

State law sick leave requirements
State laws on time off for school/child activities
Parental leave: For both maternal and paternal leave
Time off to vote: A growing number of employers provide this to encourage people to vote.
PTO policies (e.g., “use it or lose it” policies are not legal in all states like CA)
FMLA: Company policy and employee rights must be provided to employees in written form with detailed instructions on how to take leave.
COVID-related leave: First, the Families First Coronavirus Response Act (FFCRA) required mandatory paid sick or family medical leave. While this is no longer mandatory, this year’s American Rescue Plan Act (ARPA) provides new qualifying reasons and tax credits for emergency paid leave related to COVID.

5. Health & Safety Requirements

Standard Occupational Safety and Health Administration (OSHA) requirements state that the work environment must be “free from recognized hazards that are causing or are likely to cause death or serious physical harm.”

Now, employers must also stay up-to-date with OSHA guidelines and local laws on keeping workers healthy and safe during the pandemic. Some states have enacted COVID-19 worker safety protections for limiting employees’ exposure, while some cities have passed pandemic-related workplace safety ordinances. These laws and regulations are constantly changing throughout the pandemic, so check regularly with your local government.

6. Anti-Discrimination Policies

According to Title VII of the Civil Rights Act of 1964, businesses with at least 15 employees cannot discriminate against workers based on color, national origin, race, religion, and sex. In 2020, the U.S. Supreme Court held that “sex” discrimination under Title VII includes sexual orientation and gender identity.

Make sure your anti-discrimination policy addresses this where appropriate if it does not already. State and local governments are now keeping an eye out for discrimination regarding hairstyles, LGBTQ+, pay, and criminal history matters.

7. Drug Policy

A growing number of states have approved medical and recreational marijuana use, complicating drug policies for employers. Beware of employment discrimination laws regarding medical marijuana patients, and review your drug-testing policy to ensure compliance with your state’s laws.

To ensure employees aren’t using marijuana recreationally during work time, address the issue similarly to alcohol by explaining that while use might be legal, it’s prohibited in the workplace because it impairs employees’ ability to do their jobs.

8. Pay Equity Policies

The federal government will soon begin collecting wage data by position, gender, and other demographics. Be sure your team members are paid fairly and according to local wage laws.

Now is also a good time to update minimum wage posters throughout your workplace and related policies. Ensure your employees are classified and paid properly for exempt vs. non-exempt and hourly vs. salary.

9. Social Media Policy

Make sure your social media policy reflects the most current platforms, which change quickly and constantly. If your social media policy still mentions MySpace or AIM, it is definitely time for an update.

Use this policy to communicate expectations of what is and isn’t acceptable employee use of social media concerning the company. This allows for disciplinary action if an employee misuses social media in a professional way.

Keep in mind that you can’t control how they use social media outside of work, nor can you discipline employees for protected concerted activity on social media.

Your social media and privacy policies should be tied together so that employees know they have little e-privacy when using company-owned devices.

10. Dress Code Policy

Between the growing remote workforce and changing attitudes, the professional dress code has become more relaxed.

While it’s essential to update this policy to remain modern, it also helps your organization be as inclusive as possible about appearance. After all, controlling too strictly what employees can (or cannot) wear, particularly men vs. women, could alienate certain employees and lead to a discrimination lawsuit. To avoid these issues, stick to legitimate, non-discriminatory business reasons for your dress code policy.

11. Cybersecurity Policies

Set rules about employees who want to connect their own devices (e.g., laptops, phones, watches) to company devices and networks. While this may be fine and allowed, you need to ensure you protect the company first. And a well-meaning employee could accidentally unleash a virus that wreaks havoc on your company’s network.

Biometrics, screening, and other forms of identification are becoming more widely used. Consider what type of sensitive information and systems your business has and which security measures will protect vital and confidential data.

Employee Handbook Review

If you can’t remember the last time you and your team updated the employee handbook, it’s high time for a review. A thorough handbook sets expectations for employees and also protects your organization from potentially expensive and reputation-damaging litigation.

Would you rather have an outside view from experienced HR professionals? Contact us to learn more about our handbook development and review services today at 603-818-4131 or info@bluelionllc.com!

The information on this website, including its newsletters, is not, nor is it intended to be, legal advice. You should contact an attorney or HR specialist for advice on your individual situation.

How to Handle the Media: PR Tips for Growing Organizations

August 4, 2021

Your business may be cruising along, all appearing to be right with the world. And then—crisis hits, and the reporters are suddenly at your door (or on the line) wanting answers and a story. Do you know how to handle the media and respond to these inquiries professionally?

Every organization needs a good strategy to manage crises effectively and maintain their reputation. Keep in mind that a reporter could contact you about anything from a single customer complaint about your product or service to company-wide layoffs. You need to be prepared for both ends of the spectrum.

Make sure you and your team are on the same page. Use caution in telling employees that they CANNOT speak to the media, as the National Labor Relations Board (NLRB) could view this as your company preventing concerted activity.

Suppose your company is growing and having a larger impact on your community. In that case, it might even be time to invest in a crisis communication team that could guide you on managing both employees and the media during a crisis.

But if you are running the show on your own for now, don’t worry. We have five rules (and many tips!) on how HR teams and business leaders should respond to the media.

5 Rules for Managing Media Inquiries

1. Gather data and prepare key messages

Start by collecting as much information as possible about the issue the reporter is calling about. Prepare the crucial points or soundbites you want to incorporate in your answers. For example, note positive reasons for closing a business site or how you are offering extensive support to help staff find new work after job cuts or a closure.

Don’t be afraid to ask for more time to gather information. Here are a few example responses:

“I am very busy right now, but I or someone in our organization will get back to you. Can I follow up with you in an hour/day?”
“Is there anything else that you are interested in that I can gather while I look into this information?” (This helps open up the dialogue from the media on what they are looking for.)
“I just arrived/was just informed and need to gather more information to see what the situation’s details are. Let me have 20 minutes to see what the situation is, and I will respond.”

If they say they are under a deadline, do not be held hostage to this. YOU decide the timeline to respond. It is not unreasonable to request time (relative to the issue) to look into the situation or gather information. If it’s something like one customer complaint, you may even be able to resolve the issue within that time.

Bottom line: Anticipate the worst, most difficult questions and don’t feel pressured to respond immediately.

2. Remain calm and stick to the facts

During the interview, keep the tone light, but don’t resort to joking and humor. You could be quoted out of context and come off as insensitive.

While it may be challenging during a high-stress scenario, control your frustration and anger. Do not use negative terms or say anything that could be perceived as controversial. As long as you don’t lose your temper and instead remain professional, you won’t give the reporter any news to report.

If in-person or on camera, be conscious of your facial expressions and body language. Remember, your face will show your emotions, so watch for things like scowling and looking into the sun. And don’t hold up your hand to the camera unless you want to end up on the front page—we’ve all seen those newspaper and tabloid story photos.

Keep these tips in mind to maintain your composure:

Breathe deeply.
Relax your shoulders.
Speak clearly and slowly in short sentences.
Stick to your key messages and keep answers simple.
Avoid rambling, inconclusive answers.
Don’t take the bait of silly or instigating questions.

Finally, NEVER say “No comment”! This could sound very negative and give the impression that you’re hiding something. There are many ways to say this without actually saying it, like the examples above on asking for more time to research and gather info.

3. Consider potential twists

What may seem like a harmless story could be turned into something negative if your words are taken out of context. Review all of your responses and key messages and consider how they could be twisted.

What point is the reporter trying to make with their piece? Are they actually in favor of the product or service you provide or are they attempting to discredit it and your company? Do your research. Imagine how everything you say could be used out of context and edit your comments accordingly. Sticking to brief, direct answers also helps with this.

4. Remember, “off-the-record” doesn’t exist

Know that anything you say can and might be published. A reporter doesn’t need your permission to write or print anything you say, so only share what you are comfortable with being published. Even if the reporter says your conversation is “on background” or “off-the-record,” these terms are not legally binding.

5. Assume they’re recording you

Did you know 33 states allow for “one-party” taping? That means only one person needs to be aware of the recording—and that one person can be the reporter.

Even in states that require “two-party” notification, an “on-hold” message alerting callers that your company may record or monitor calls is enough to give the reporter permission to record on their end.

Although responding to the media during times of crisis may sound intimidating, working with the media can also be positive! Be strategic about which interviews you accept. When you speak with reporters, make factual, concise, and interesting points to maximize positive coverage and come out of difficult situations with your organization’s reputation intact.

Does your HR team need guidance in handling the media? Perhaps you have personnel issues and want help managing them before the media turns them into a whole thing? Contact BlueLion today for assistance at 603-818-4131 or info@bluelionllc.com to speak with our experienced HR professionals.

The information on this website, including its newsletters, is not, nor is it intended to be, legal advice. You should contact an attorney or HR specialist for advice on your individual situation.

PTO Policy Best Practices: To Rollover or Not to Rollover?

July 27, 2021

No matter how much we love our jobs, we all need a break. It may be a day or two, it may be a week or two. Either way, vacation time is critical—which is why employers must establish a vacation or PTO policy that is fair and encourages employees to take leisure days.

According to a SHRM survey, from 88 to 94% of HR professionals think that taking vacation is either “extremely” or “very important” for a variety of factors related to talent management, including:

Morale
Wellness
Performance
Retention
Positive culture
Productivity

Not to mention, 70% agree that taking time off is “extremely” or “very important” for inspiring creativity.

Unfortunately, many employees fail to take all their vacation days, which can bring down performance and morale. Many people at companies with unlimited rollover try to save their days for the next year, reserving it for a longer or simply more vacation.

So, what should your policy be? How do you encourage staff to take vacation without seeming inflexible? While some organizations have specific policies for vacation time and others group vacation and sick time into one PTO policy, employers have options (contingent upon state laws), including:

Use it or lose it time off policy
Limited rollover policy
Unlimited PTO policy

Of course, if you allow unlimited PTO, you don’t have to worry about it. But If you place a cap, you also need to consider unused time off and how to manage it.

Let’s take a closer look at the pros and cons of the first two options, use it or lose it, and limited rollover policies.

What is a Use It or Lose It Vacation Policy?

A use it or lose it PTO policy limits employees’ time off by prohibiting any rollover. This typically involves resetting an employee’s PTO balance at the end of the year (either calendar year or anniversary year, depending on how your company operates). In this case, employees either have to use their accrued time off or lose it.

If you are considering a no-rollover policy, you should first check your state’s laws because:

Some states do not allow employers to have use it or lose it time-off policy at all; and
Other states require employers to provide the employee with a reasonable opportunity to use the PTO, but this is arguable and opens your company up to possible lawsuits.

Pros of a No-Rollover Policy

A use it or lose it policy could work in the perfect company culture, where everyone embraces taking time off and disconnecting entirely from work. After all, this type of policy:

Encourages employees to use all of their time off.
Incentivizes employees to take true vacations and get much-needed R & R when they normally may not.
Means you don’t have to pay out unused vacation time if the employee is terminated (although this is a negative for employees).
Mitigates employees taking extended periods of vacation since they can’t accumulate PTO.

Cons of a No-Rollover Policy

We all know, however, that there is no such thing as a perfect workplace. Creating a no-rollover policy:

Could penalize employees who work hard to get their jobs done well and on time.
May cause employees to take unused vacation time at the last minute, all at the same time, leaving you understaffed.
Can give a negative impression of your company culture.
Essentially takes benefits away from employees, which is never a good look.

Capped PTO Accrual & Rollover Policy

If your company is looking for more of a happy medium, you can limit how much time off employees can earn so they don’t accumulate an unlimited amount.

With this system, you set the threshold of how much rollover time an employee can accumulate. It can be the same as the number of hours the employee earns per year or slightly more. Let’s say:

Employees earn 80 hours per year.
The cap is set at 80 hours.
They cannot earn more than 80 hours per year.

For the rollover portion of the example above, you might say:

Employees can roll over a maximum of one year of unused time (i.e., 80 hours).
The cap is 160 hours (80 + 80 = 160).
They stop accumulating more time off after 160 hours.

This policy encourages employees to use their PTO but doesn’t take away what they’ve already earned. It allows them to take more vacation time if they did not have the opportunity the year before.

Tips for Leaders

Work with your HR team to stay abreast of whether or not employees are using their PTO. If you find they are not, research why.
Foster a company culture that values taking time off! Ensure your vacation policy aligns with the culture you are working to create and that it is being communicated and applied accurately and fairly throughout the company.
Stay in tune with your employees. Be aware of their workloads and responsibilities, and make sure managers and leaders encourage their teams to take vacation. Communicate this regularly so that workers do not feel guilty or think there is a stigma around requesting vacation time.

Everyone needs to unplug occasionally. When you demonstrate to employees that it is not just ok but encouraged to take quality vacation time, you help boost morale and productivity. Regular time off is certainly worth more engaged and productive employees!

If you need guidance in developing a new PTO policy or evaluating your current one, contact BlueLion today at 603-818-4131 or info@bluelionllc.com. Our HR experts will be happy to help you conduct a policy review!

The information on this website, including its newsletters, is not, nor is it intended to be, legal advice. You should contact an attorney or HR specialist for advice on your individual situation.

Job Descriptions: Why They Matter + How to Do Them Right

July 20, 2021

How much time and effort does your company put into writing stellar job descriptions? Do you have a process? Do you and your team regularly review roles and job descriptions throughout the organization?

At this point, you may be thinking, Are job descriptions really THAT important?

The answer is a resounding YES! Writing effective job descriptions comes with many benefits, from hiring the best employees to holding onto them to planning for your business’s future goals.

Stick with us as we break down the benefits of using job descriptions and how to write them to ensure you find the best fit for every position.

Benefits of Using Job Descriptions

Paint the Picture

The job description is a great opportunity to share your company vision and direction and show the prospective employee how they fit into the big picture. How will their role and responsibilities make a difference and contribute to the success of their team or the overall company?

Keep in mind that you must sell them on your business just as they need to sell you on their skills, knowledge, and qualifications. When you illustrate how the candidate would fit into your organization, you also ensure their goals align with yours. After all, you want everyone to be going in the same direction.

Set Clear Expectations

Setting clear job expectations starts with the job description. When job descriptions are well-written and specific, both candidates and current employees will clearly understand the expectations, essential responsibilities, and requirements for the position. This aids in external and internal recruitment, as well as employee retention.

Collect Compensation Data

Compensation should be based on the job duties and responsibilities rather than an arbitrary title. Part of job description development is doing market research to find out the value of the role and ensuring the compensation you’re offering is competitive with the rest of your industry. Plus, your HR team can evaluate the role on how it fits within your compensation structure compared to other positions within your company.

Comply with Labor Laws

Maintaining job descriptions is not legally mandated, but developing and updating them regularly can help your company stay compliant with employment laws. Two examples include:

Fair Labor Standards Act: You’ll have to classify exempt vs. non-exempt roles through the job description development process.
Americans with Disabilities Act (ADA): Your job description should define the physical, mental, and environmental requirements. It should also differentiate between essential and non-essential job functions so you can make reasonable accommodations for employees with disabilities.

Plan for the Future

As you develop job descriptions, you and your team should review the organization’s current staffing situation and future people goals:

Current Roles & Gaps: Gather a complete list of roles in your organization to identify which jobs are not filled or where you may need to develop new positions.
Career Paths: Job descriptions should include the future career path of the role, which also helps your hiring managers to consider a candidate’s fit against the bigger picture of future advancement.
Training & Development Needs: When you understand the skills and competencies necessary for each job, your leaders can strategically implement training for each employee based on their career goals and the business’s needs.

How to Develop Effective Job Descriptions

1. Make it a Team Effort

Job descriptions should never be created in a vacuum. Consult with relevant managers and employees for perspective and accuracy. By talking to those who will be working with the new hire: (i.e., superiors, colleagues, and direct reports), you can ensure the candidate fits in with the rest of your team.

Not to mention that when you involve current employees, you show them that their thoughts and opinions matter. This helps put them in a more positive and supportive mindset regarding the new hire or promoted colleague.

2. Perform a Job Analysis

Once you have the team assembled, it’s time to conduct a job analysis. While you should do this for every job opening, it’s vital to do so with newly created roles. A job analysis should address the following questions to all relevant parties mentioned above:

What needs would this position be fulfilling for your company and/or team?
What are the job responsibilities of current employees both in the same position and department?
How have the demands of this job changed within both your company and your industry over the past five years?
What differences do you notice between an example job description and one posted by one of your competitors for this position?
What is NOT included in the typical requirements of this position?
How will this person support other specific roles?
What technical and soft skills will a new hire need to perform this job successfully?
What work duties, tasks, and responsibilities will this employee need to accomplish?
How does the compensation package you offer for this position compare to competitors?
What is the most important outcome or contribution(s) needed from this position?

3. Determine What to Include in the Job Description

Write each section of your job ad with a certain goal in mind. What do you want the candidate to take away from that specific part? Show them that your company and this position is an excellent fit for their career.

Essentials to include in a job description are:

General position description and areas of responsibility
Engaging and accurate job title
Essential job functions with a couple of examples of each
Required knowledge, skills, and abilities
Mandatory education and experience
Description of physical demands
Clear employment terms (e.g., full-time vs. part-time, salaried vs. hourly)
Description of the work environment

And don’t forget these bonus tips to attract top talent:

Highlight the “must-haves” early (i.e., mandatory education, certifications, and skills) to interest the most qualified candidates.
Describe your workplace culture, history, and the perks of working for your company.
Use a conversational voice that aligns with your company’s brand and adds a personal touch.
Showcase career paths and opportunities for growth by explaining how they will be evaluated (i.e., goals and metrics for salary increases and/or bonus eligibility).
Incorporate flexibility so that employees can cross-train and develop/advance.
Format your job descriptions to be clean and easy to read with spacing, bullet points, and headers.

4. Create an Engaging Job Title

A job title needs to attract your ideal candidate and be accurate. So, what does attract your perfect candidate?

Cater to their specialties, so they know they will be doing the work they love most. You’ll also need to consider the most commonly used and accepted job title for the position, as that title will have the highest search volume. An example that captures both would be “Senior Accountant – Mergers & Acquisitions.”

5. Tailor the Responsibilities & Requirements

Responsibilities and requirements should be different from every job description to the next, not simply copied and pasted. Ensure applicants get a clear and accurate picture of the position and what it entails by tailoring and refining the responsibilities and requirements.

Responsibilities: These should be a high-level look at what they will be doing in the role. Include ideas of projects, tasks, and day-to-day work without getting too technical.

Requirements: This is where you list specific requirements and qualifications you want candidates to possess, such as years of experience to certifications, and proficiency in specific tools and applications.

6. Review & Revise the Job Description

As with any professional written communication, it’s crucial to review and edit your work. Here are a few tips for revising a job ad:

Confirm your job description flows and each section makes sense individually and as a whole.
Share the job description with members of your team for review, particularly those with some of the skills you are looking for, so they can verify its accuracy.
Read it aloud to spot awkward, unclear, or boring parts. This will also help ensure everything sounds genuine.
Make relevant changes based on feedback from your team and your read-out-loud exercise.

Making the Most of Job Descriptions

Strategic, thoughtful job descriptions are a critical first step toward recruiting the best candidate for any position. Every organization should have a job description development process.

Here are two final tips to ensure your organization’s job descriptions are compelling:

Review each employee’s job description, goals, and where they are spending their time regularly (at least quarterly, ideally monthly) and assess if their job description is accurate or needs to be updated.
Actually USE the job description throughout internal and external hiring processes to help you hire the best candidates and maintain employee engagement and satisfaction.

Do you need someone with an outside perspective and professional experience to help you write enticing job descriptions? Contact BlueLion today at 603-818-4131 or info@bluelionllc.com to discover how we will set you up to land great new hires!

The information on this website, including its newsletters, is not, nor is it intended to be, legal advice. You should contact an attorney or HR specialist for advice on your individual situation.

What Employers Must Include on an Employment Termination Checklist

July 13, 2021

Whether you just hired your first employee or you are already managing a growing team, it’s never too late to put an employment termination checklist in place. After all, terminations are difficult enough as it is—every organization could use a tool to make employee separations that much easier.

Your termination checklist serves as a master list of the things you, your leadership, and your HR team need to do when an employee leaves the company. You should refer to this list for employee resignations, layoffs, or firings.

That’s why we’re sharing the importance of having an employee termination checklist along with a template, which even includes some helpful tips and definitions.

Why is it important to have a termination checklist?

Terminating an employee can be a sensitive, stressful process. Even in the case of a resignation, employers need to ensure they remain compliant and don’t miss any important steps. An employment termination checklist will help you:

Create a smooth transition for the employee and the rest of your team.
Protect your business against possible future legal issues.
Ensure you provide separated employees with all required termination documents.

Employment Termination Checklist Template + Tips

Basic Termination Information

___ Create termination documents: This should include:

Employee’s name
Job title
Last day of employment
Department they worked in
Reason for termination
Employee/company number (if applicable)
HR person working on the termination
Date of termination checklist completion

Human Resources Involvement

___ Notify HR

___ Consult with HR to notify other relevant employees and individuals:

Receptionists
IT
Security
Union
Bank/Credit Union
Mobile provider
Insurance provider
Professional associations
Customers/clients the employee is currently working with

___ File employee files & termination documentation in terminated employee files:

Personnel file
Form I-9
Termination letters
Receipts for returned items
Documentation for disciplinary action, warnings, and performance reviews that support your firing of the employee

Termination Type

Voluntary Termination: If an employee ends the working relationship, employers must:

___ Obtain employee resignation letter: If an employee gives a verbal resignation, request a written resignation letter immediately for your records.

Involuntary Termination: If you fire or layoff an employee, be sure to:

___ Provide employee with termination letter (for-cause terminations)

___ Provide employee with severance agreement (if eligible for layoff and severance)

___ Receive signed severance agreement (if applicable)

___ Provide employee with WARN/OWBPA notices (if applicable):

Worker Adjustment and Retaining Notification (WARN): Ensures advanced notice in cases of qualified plant closings and mass layoffs
Older Workers Benefit Protection Act (OWBPA): Protects workers from age discrimination by specifically protecting their benefits

Learn about the different types of termination.

Exit Interview

If an employee leaves voluntarily, employers should hold an exit interview.

___ Conduct an exit interview: An exit interview is a confidential meeting with the departing employee and HR meant to provide insight to your company’s work environment and communicate important employment separation information to the employee.

___ Allow the employee to share their work experience: Ask them how they:

Related to their coworkers
Felt about their work and the environment
Viewed conditions and company practices

___ Review final pay policy

___ Inform employee on how to return company property.

___ Provide letter reminding employee of legal agreements that continue post-employment, including:

Noncompete
Nondisclosure
Confidentiality
Non-solicitation
Intellectual property

___ Obtain a signed authorization to respond to employment verification requests

___ Verify & update information: Confirm the employee’s address, contact information, and emergency contact information (whom you can contact to find the right address if necessary). Provide them with a form to update their address if they move within the next year. This is crucial for important tax and other forms, like W2s.

IT Matters

___ Notify IT staff: Inform your network administrator and IT team when to terminate the employee’s computer, network, and phone access.

___ Remove employee from email distribution and phone lists

___ Migrate clients (if applicable): Determine who will take over the ex-employee’s accounts to ensure you do not lose any clients or contact information. Typically, organizations keep former employees’ phone lines and email accounts live for 60 days to avoid missing important business communication.

___ Clear data & reset devices: Your IT department should check and erase the ex-employee’s computer, tablet, and/or phone so they are ready for future employee use.

Building Access & Property

___ Disable security code(s): Disable the former employee’s building codes on their final day. If everyone uses the same codes, change them and remember to update the rest of your staff. Be sure to do this immediately if you fire the employee.

___ Disable their key card

___ Change office mailbox

___ Clean work area and remove the employee’s personal belongings

Collect all applicable company property, including:

___ Keys (including office, building, desk, filing cabinets, etc.)

___ ID card

___ Building access card

___ Business cards

___ Nameplate

___ Name badge

___ Company cell phone

___ Laptop

___ Uniforms

___ Tools and equipment

___ Company software

___ Company vehicle

Add items specific to your company/industry to create a comprehensive employment termination checklist.

Benefits

___ Provide a benefits status letter: Employers should provide departing employees with a letter indicating the status of their benefits, including when coverage ends. This should address benefits like COBRA, life insurance, supplemental.

___ Check and notify employee of remaining FSA/HSA funds and reimbursement deadlines (if applicable)

___ Check and notify employee of remaining DCAP funds and reimbursement deadlines (if applicable)

Dependent Care Assistance Plan (DCAP): Employee benefit plan that helps employees pay for the care of a qualifying dependent (i.e., someone who lives with the employee and is 12 years of age or younger, OR someone 13 or older who is physically or mentally incapable of self-care and regularly spends at least eight hours a day in the employee’s household)

___ Check and notify employee of PTO balance and how it will be processed upon employment termination

___ Inform employee about retirement plan options

Final Compensation

___ Provide notice of payroll advance repayment policy: Unpaid payroll advances, travel advances, and educational loans should be withdrawn from the employee’s final paycheck.

___ Notify payroll to process final paycheck: The final pay should include any earned unpaid/unused:

Wages
Commission
PTO balance
Business expenses that they submitted on an expense report
HSA/FSA balances

___ Notify payroll to process severance pay and specify if lump sum or salary continuation (if applicable)

___ Issue the final paycheck: Check your state laws to ensure you send the employee’s final paycheck within the required time and through an accepted method.

Do you need help creating your employment termination checklist or managing the overall process? Contact BlueLion today at 603-818-4131 or info@bluelionllc.com and our HR professionals will gladly review your processes and policies to ensure compliance and positive employee relations.

The information on this website, including its newsletters, is not, nor is it intended to be, legal advice. You should contact an attorney or HR specialist for advice on your individual situation.

Quick Guide to Final Pay State Laws: ME, MA & NH

July 6, 2021

When it comes time for an employer and employee to part ways, one of the top things an organization needs to be aware of is the final paycheck. Final pay state laws vary, with stipulations based on whether the separation is voluntary or involuntary.

It’s important to be aware of both Federal and State laws to ensure you provide employees with their earned wages within the required timeframe. While Federal law and the Department of Labor require businesses to establish regular paydays and compensate employees by that day, they do not require final wages be immediately paid upon separation. Your state typically sets this requirement.

Remember, employers cannot withhold an employee’s final paycheck under any circumstances, even if they fail to sign their timesheets or don’t attend an exit interview. If you refuse to pay final wages, you could be forced to pay a waiting time penalty and other fines.

Final paychecks must include all earned, unpaid:

Wages
Commissions
Bonuses
Accrued sick and vacation time

Read on to find out what employers can and cannot deduct from final paychecks and a quick breakdown of the laws for Maine, New Hampshire, and Massachusetts employers.

What about final paycheck deductions?

Employers can only withhold mandatory deductions from final paychecks, such as federal income tax, Social Security tax, Medicare tax, state-mandated taxes, and applicable wage garnishments.

Voluntary deductions like medical and dental benefits depend on company policy. Additional deductions must be permitted by the employee for their benefit via specific written authorization.

Can an employer deduct a negative leave balance from an employee’s final paycheck?

Deducting a negative leave balance from an employee’s final paycheck is a separate and touchy topic—which is why we hear this question frequently. The answer largely comes down to exempt vs. nonexempt employees.

Nonexempt Employees

Federal law allows employers to make a deduction from a nonexempt employee’s final pay to recover a negative paid-leave balance. Guidance from the Department of Labor (DOL) says deducting advanced paid leave from a nonexempt employee’s final pay is permissible when:

Employers inform employees before leave is advanced that the deduction will be made; and
The deducted amount reflects the employee’s pay rate at the time the advanced leave was taken.

Why are negative leave balance deductions allowed for nonexempt employees? A leave advance is viewed as a loan or cash advance, which the employer can recoup even when the deduction drops the employee’s pay below minimum wage.

Some state laws do not allow such deductions, while others require prior, signed authorization. Always check your state’s laws to ensure compliance.

Exempt Employees

Deducting negative paid-leave balances from exempt employees’ final paychecks is not recommended. Exempt employees’ salary cannot go below the minimum salary set by the Fair Labor Standards Act (FLSA) except in limited situations.

Only full-days off qualify as allowable deductions. The FLSA states that partial days off can never be deducted from an exempt employee’s pay. For example, if you advance an exempt employee five half days of paid leave, you cannot deduct that amount from their pay.

The Family and Medical Leave Act (FMLA) does provide an exception allowing for partial-day pay deductions for covered absences, but there is no specific guidance stating that an employer may recover leave advanced for partial-day FMLA absences. Consult your legal counsel in these situations.

If your company does want to deduct negative leave balances for full-day increments from exempt employees, you would need to:

Keep very detailed, accurate records separating negative leave hours for partial-day absences (not allowed) from negative leave hours for full-day absences (allowed); and
Track the rate of pay at which each day of leave was advanced so that the appropriate amount is deducted.

This level of recordkeeping is laborious and rare. Plus, your state wage payment and deduction laws may prohibit negative leave balance deductions or impose even more requirements—hence why these deductions are not advisable for exempt employees’ final pay.

Maine

Employees who are fired, discharged, terminated, or laid off

Maine employers must pay terminated or laid off employees all wages due by the next regularly scheduled payday OR within two weeks of the employee’s demand for payment, whichever comes first.

Employees who quit

A Maine employee who quits is entitled to their final paycheck no later than the next regularly scheduled payday OR within two weeks of demand for payment, whichever is earlier.

Employees who are suspended or resign due to a labor dispute (i.e., strike)

In this case, the employer must pay the employee all wages due by the next regular payday OR within two weeks of the employee’s demand for payment, whichever occurs first.

Massachusetts

Employees who are fired, discharged, terminated, or laid off

A Massachusetts employer must pay the terminated employee all wages due on the day of the discharge.

One exception is Boston, where terminated employees must be paid as soon as the employer has complied with laws requiring payrolls, bills, and accounts to be certified.

Employees who quit

Employers must pay employees who quit all earned wages due by the next regular payday OR, if the employer does not have a regular payday, on the next Saturday.

Employees who are suspended or resign due to a labor dispute

While Massachusetts does not have a law regarding final pay to a worker whose employment ends due to a labor dispute, employers should pay these employees no later than the next regular payday or on the next Saturday to ensure compliance with State laws.

New Hampshire

Employees who are fired, discharged, terminated, or laid off

A New Hampshire employer must pay a discharged employee all wages due within 72 hours. Employees who are laid off must be paid by the next regular payday.

Employees who quit

If the employee…

Gives the employer at least one pay period’s notice of their resignation, the employer must pay all wages due within 72 hours.
Has not given at least one pay period’s notice of their intention to quit, the employer must pay the employee by the next regular payday.

Employees who are suspended or resign due to a labor dispute

If an employee leaves because of a labor dispute, the employers must pay them by the next regular payday.

Do you need assistance with navigating the final pay state laws? Our team of HR experts will be happy to review the details with you and ensure your company remains compliant with both Federal and State requirements. Contact us today at 603-818-4131 or info@bluelionllc.com to learn more.

The information on this website, including its newsletters, is not, nor is it intended to be, legal advice. You should contact an attorney or HR specialist for advice on your individual situation.