Employment & Labor Law

How Much Does An Employee Cost?

Employment costs fall into several broad categories:

Recruiting Expenses

Finding technically qualified people who can function effectively in a rapidly growing startup venture is not easy task.  In an earlier column we discussed the economic alternatives for head hunting.  For this column it suffices for me to remind you to be sure to devote the time to make sure that your hires are as close to perfect “10s” as possible.  Anything less will be a drag on your business.

Basic Salary

Why HR Managers Can’t Say Because I Said So

Bully

Most of us have heard – or said – MOMisms and DADisms like “Because I said so!”, “Don't ask me WHY. The answer is NO.” and “Enough is enough!” And while parents may effectively get away with such terms, HR managers cannot. You will hear retorts like “You’re not the boss of me”, “Stop harassing me”, and “You’ll be hearing from my lawyer”, if you don’t consider your explanations more carefully.

True or False: The minimum wage for Michigan employees is $8.50 per hour

With all the media coverage of federal and state minimum wage laws, do you know if the above statement is true or false? It is true: for most employees working in Michigan, the 2016 minimum wage is $8.50 per hour.  

However, it is false for some employees:

Tipped Employees: The employer is not required to pay minimum wage to tipped employees if all of these apply:

Silver Lining in EEOC’s Continuing Quest to make Employees Untouchable?

In January 2016, the EEOC issued its proposed enforcement guidance on retaliation charges filed by employees. The public comment period for the proposed guidance is now closed. If you haven’t gone through it yet, settle in, make yourself comfortable and read the 73-page proposed guidance.

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.

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.