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“Why can’t I use direct deposit for a final paycheck?”
Your HR Survival Tip
The simple answer is that you usually won’t be compliant with the law. Of course, there are exceptions, based on how your payroll is processed.
When you review the legal requirements, it becomes easier to understand what you need to do. The big thing to remember is, if you are late with a final paycheck, you must keep paying the employee until you can get that final check in their hands. The Labor Commissioner is happy to help the employee get the money that’s due plus the daily penalty. Here is the timing for each situation:
Employee is fired — You must provide a final paycheck that same day. On a side note, if you have the employee come to work just to be fired, you must make sure reporting time pay has been added to that check. Reporting time pay is half their scheduled time but no less than 2 hours and no more than 4 hours. If the employee normally works an 8-hour day, their reporting time pay must be 4 hours.Employee has resigned — You must provide a final paycheck on the last day [click to read more …]
Tuesday, 1/26/2021, 9-10 a.m.$49 for 1-Hour Live Webinar Is This Webinar for You? YES, if you will be subject to this law (5+ employees). YES, if you want to learn to manage leaves yourself (instead of paying us). About this Webinar
This training is designed for companies with 5 or more employees anywhere… who also have employees working in California. The revisions to California’s Family Rights Act (CFRA) are now in effect so you need to be prepared to manage your first leave of absence. Join us to learn how you can manage CFRA leaves yourself.
Learn what is legally required to be in writing.Be able to plan the deadlines for documents and return to work.Learn our method for tracking a leave.Notification templates and our tracking tool will be provided.
Presented by Candi Freed, Senior HR Consultant with HR Jungle LLC.
[click to read more …]
“My business is slower to return than expected and I have too many employees. How do I reduce my headcount?”
Your HR Survival Tip
Your employee costs are often one of your highest line items, depending on the type of business you have. It’s important to know exactly how much you spend per employee overall so you can make good decisions about when you should increase or reduce the number of employees.
There are several types of terminations but they each have a specific use. Many companies like to use “layoff” because it feels softer to them. However, your choice could potentially result in legal obligations for you so you really do want to choose the type of termination that fits your scenario.
Layoff – When you use layoff as your reason, the expectation is you will rehire the employee once business picks back up or you again have need of the position. You provide a final paycheck that includes any earned, unused vacation or PTO time. The employee is eligible for unemployment. Furlough – We rarely saw this used prior to the pandemic. It is almost exactly the same as a layoff except they remain an employee on your records. [click to read more …]
“I’d like to implement a plan that rewards employees for recommending people they know to our company. What do I need to consider?”
Your HR Survival Tip
Employee referral plans can be a huge benefit to your company and for your employees. When a current employee recommends someone to apply, they want the reward. As a side benefit to you, they often feel responsible for the success of that person and won’t recommend people they think might make them look bad.
When planning to offer a referral bonus, there are more things to consider than you might think:
What is the value of receiving a recommendation from an employee? Recruiting time and money can often cost you far more than paying a referral bonus. We see plans paying $300-$1000, depending upon the position. When does the current employee receive the bonus? Consider how long it takes a new hire to start doing well in the job. Or look at your turnover and determine when most of it happens. If you have a lot of turnover in the first three months, then you want to wait until after that to pay out any bonus. What process needs to be in [click to read more …]
Governor Newsom signed SB1383 and dramatically changed protected time off as we know it. On January 1, 2021, companies of 5 or more employees will be subject to the California Family Rights Act (CFRA). The CA Chamber of Commerce had declared this a job killer bill and it definitely proves politicians don’t understand the challenges smaller employers face.
CFRA is very similar to FMLA (Federal Medical Leave Act) but includes a few more benefits for the employee than the Federal law. Starting 1/1/2021, the following differences will be in effect:
Affected companies:FMLA = companies with 50+ employees;CFRA = CA companies with 5+ employees. Employee’s employment:Both = employed at least 12 months and worked at least 1,250 hours during that period. Location size:FMLA = 50+ employees within 75 miles;CFRA = 5+ total anywhere. Amount of time off:Both = up to 12 weeks of unpaid, protected time off. Reasons:Both = care for yourself or a family member with a serious health condition, pregnancy, new baby bonding (or foster or adoption), and various military reasons. Family member:FMLA = child (minor or a dependent), spouse, and parent;CFRA = those listed under FMLA plus siblings, grandparents, grandchildren, domestic partners, adult children, and [click to read more …]
“I finally received my PPP (Payroll Protection Program) funds but I am finding it hard to get employees to return to work. Unemployment is either paying them more than they earned each week with me or at least enough so they’d rather not work for nearly the same money. What can I do?”
Your HR Survival Tip
You’re not alone with this particular dilemma! We have heard the same thing from several clients. Even those companies that don’t have PPP money but are ready to slowly start back up are having similar problems. However, the PPP money requires you to maintain a certain headcount for the funds to be forgiven so you may have to make a hard decision about those employees.
Employees First
Employees are often making more on unemployment right now due to the extra $600 they are getting each week. You could sympathize with their desire to receive more money right now and allow them to stay on unemployment. However, please keep in mind they are turning down work and therefore, legally, are committing fraud by continuing on unemployment… where they are attesting they are “willing and able to work” each week. You might [click to read more …]
Everyone is focused on the effects of COVID-19 and we thought it was time to give you something else to think about. Life, and California legislators, keep finding ways to challenge business owners. Proposed bills affecting employers this legislative session include:
AB3216 – Currently companies with 50+ employees are subject to the California Family Rights Act (CFRA), which is very much like the federal FMLA with a few exceptions. It provides up to 12 weeks of unpaid time off with job protection. This bill proposes two things: (1) to change CFRA so companies with 1+ employees are subject to this Act and (2) allow the 12 weeks to be used for diagnosed COVID-19 quarantine for the employee or close family. Bringing CFRA down to such small companies could be devastating unless it’s only for COVID-19 related situations…but it’s not clear.AB2999 – This bill wants employers to provide 10 days of unpaid bereavement leave for employees who have worked at least 60 days prior to the leave. The employee could only use this leave for specific family members and would need to provide written proof of the death. Whether a company provides 1 day or 10, it usually never seems [click to read more …]
You have several options available to reduce your payroll costs but be sure to remain compliant while making changes. Make sure you provide employees something in writing when making changes and, when possible, provide at least a few days’ notice.
Reduction of Hours
Instead of continuing a full-time schedule, consider cutting back hours.
Reduction of Pay
As long as employees are paid at least minimum wage for time worked, you can cut the hourly rate of an employee with written notice.When cutting hours or pay of a salaried exempt employee, first consider converting their salary to an hourly wage (annual salary / 2080 = hourly wage). This allows you to make changes without worrying about still meeting the state minimum salary. Once hourly, remember they must now complete a timecard and take meal/rest breaks.If they remain salaried exempt, you must pay for the whole week if they work at all that week.Provide as much notice as possible when reducing pay but, in extreme times, a couple of days may be sufficient.
Work Sharing
A common version is, if you have more than one person doing the same work, you might consider having two people share one job. Each person works [click to read more …]
As events are being cancelled and bars, nightclubs, restaurants, gyms, etc. are being closed, everyone is worried about their employees and their business. We are getting a lot of questions on what employers could or should be doing during this national emergency. We’ve tried to provide a few answers for you here:
Your business interruption insurance won’t cover your losses during a pandemic.Your workers’ compensation insurance won’t cover employees who have been exposed because it’s impossible to prove it was a work-related illness.State disability insurance won’t be available to employees unless they have medical certification, which doesn’t appear to be easily available at this time. However, employees can apply if they are diagnosed and have a doctor’s note.Employees cannot decide on their own to stay home from work as a precaution. They can only make that choice if they are truly in imminent danger. However, you can approve an unpaid leave of absence.You may ask for a doctor’s note stating they should stay home and you can ask for a doctor’s note before letting them return to work if they’ve missed any work due to illness.You may send employees home and use sick (if available) or unpaid time off [click to read more …]
“I gave a large advance to an employee and we started deducting money from his paychecks to pay it back. However, he just resigned and still owes me $750. What are my options for getting the rest of my money?”
Your HR Survival Tip
Whenever a company “lends” money or provides equipment to an employee, you will always take the chance you won’t get it back. California does not allow you to deduct anything from that final paycheck. Yes, even if they have your phone or laptop or an outstanding loan, the value cannot be deducted without the employee’s express permission (in writing, to be safe).
At a minimum, at the time the money was advanced or loaned, you should have put into writing a repayment schedule and agreement for the employee to sign. You don’t want to start deducting money from an employee’s paycheck for any reason without written authorization (aka proof that it’s a legitimate deduction) from the employee.
Once the employee terminates, all bets are off. Since you can’t deduct the remainder owed from the final paycheck, you either have to hope the employee will send you the money or take them to small claims court. [click to read more …]
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