Human Resources

Pay Docking for Salaried Employees

Docking the pay of exempt employees is only permissible in certain circumstances. The Fair Labor Standards Act (FLSA) governs wage and hour laws of nonexempt employees. The law requires employers to pay nonexempt employees at least the federal minimum wage and requires the payment of overtime for an employee who works more than 40 hours in a week. Employees who are exempt from the law are not entitled to overtime or the federal minimum wage, but employers may not make improper pay deductions from their salary.

10 Best Practices for Employment Applications

Here are ten best practices for employers during the hiring process with regard to employment applications:

Checking Social Media of Job Applicants

You hear and read stories about companies that require job applicants to reveal their social media accounts, including passwords. These companies believe that by viewing an applicant’s social media activity they can get a better handle on his or her ability to be a productive employee.

Honestly, your background screening company shouldn’t have any reason to provide social media checks. The reasons why are very basic, and should make you think about this potentially risky practice.

Stagnant Wages: What the Data Show

Wages have grown over the past few years at rates similar to historical trends. The frequently repeated claim that wages are “stagnant” is at odds with six measures of wages and compensation, which indicate that hourly and weekly real wages (wages adjusted for price inflation) have grown between 1 percent and 2 percent per year since the beginning of 2013. Rather than engaging in fruitless attempts to raise wages directly, policymakers can benefit workers by removing laws and regulations that have artificially increased the prices of consumer goods.

Three-Factor Test for Non-Compete Agreements

Non-compete agreements come in all shapes and sizes, and the reasons why an employer may want to consider non-competes is equally diverse.

The bottom line is that a carefully crafted non-compete agreement can provide employers with a useful tool to protect its competitive position in the market place, especially in an increasingly mobile age where employees are more willing to test the barriers of non-compete agreements.

Michigan courts recognize and enforce non-competes, provided they are:

Top 5 Reasons to Conduct Background Checks

At our offices we are always amazed when we get a new client who tells us they have never done any background checks. Certainly, we value their business and trust in us, but we know that any business is at risk when they are clueless regarding the people they are employing.

What will background checks do for you?

Cost of Hiring a New Employee

Hiring can be a costly venture for most employers. The studies on costs of employee turnover are very broad and what makes it so hard to predict are the many intangible and often untracked costs. In general, turnover costs vary by wage and role of the employee. Here are some average costs of replacing an employee:

FLSA Ignorance Is Not Bliss

Not knowing the Fair Labor Standards Act (FLSA) rules can cost you more money in addition to back pay. This is a lesson learned the hard way by the employer in Souryavong v. Lackawanna County, 2016 BL 26447 (MD PA 2016).

You’re At-Will – You’re Fired

True or False: Human resource employees sit in their office and drink coffee/soda tracking their NCAA brackets all day, since their job is simple in an at-will employment state?  

True or False: Since Michigan is an “at-will” employment state, whenever you terminate an employee, just tell the employee that he/she is “at-will” and all your potential legal issues magically disappear.

Hopefully you answered “false” to both questions, because otherwise it becomes a very expensive proposition for you and your organization.  

Politicians Don’t Guide the Economy, You Do

Economic growth starts with the individual, not the state

MLive columnist Rick Haglund is skeptical about the state’s choices of favored industries, noting that much of the Michigan Business Development Program subsidies go to manufacturers. “[D]eluded by the recent resurgence of manufacturing jobs, state policymakers are doubling down on promoting Michigan as a state that makes things,” he writes.

However, everyone should be skeptical of the idea that the state can lead economic growth at all.