Tag: Payroll Temecula

Employee Timekeeping Rules – Guidelines for Trouble Free Time Tracking

Employers who don’t follow the rules regarding time sheets and electronic time-keeping records are receiving very costly rulings from the California Division of Labor Standards Enforcement (DLSE).

The DLSE is very clear about how time records should be handled.  Time records are considered inadequate if  employees’ time sheets are filled in with the same times each day.  For example, the employee reports he started work at 8:00 AM every day, took a meal period at Noon every day, and then left for the day at 5:00 PM every day.  Employees do not, in actuality, report to work or take their lunch at exactly the same time everyday.  There is always at least a slight variation.

Check time sheets to be sure employees are writing in the exact times they arrive, take meal breaks and leave for the day.  It doesn’t matter if an employee has taken and recorded every meal period.  If the time sheet shows exactly the same time every day, the labor commissioner will accept the employee’s word that the meal period was written in but not taken or that the employee worked overtime but forgot to write it in.

While nobody wants to be the time sheet police, it can be very expensive to allow inaccurate time reporting.  Electronic records have become the target for a large number of complaints to the labor commissioner. Issues with time cards can support other complaints if they contain inaccuracies or other problems that would invalidate your defense.  Here are a few simple things you can do to ensure you don’t end up defending a time sheet issue in court:

  • Employees must sign their time records – even the electronic versions.  An unsigned time record is not adequate and will not be considered valid by the labor commissioner.  You must design some means for employees to review their time and sign the time record. They don’t have to sign the record prior to payroll, but it should be within the week following the end of the pay period.
  • Employees must sign an acknowledgment of their work time on their time sheet, time card or electronic record stating that, under penalty of perjury, it is an accurate record.  Contact me if you need the recommended language for the acknowledgment statement.
  • Be sure employees are credited for the time it takes to clock in.  It’s fine if it’s simple and takes very little time.  However, waiting for a computer to load may take more than a few minutes. Many employees have been awarded back pay and overtime because they were not compensated for the time required for their computer to load before they could clock in.  If the employee only has to wait a minute or two, it is not a problem.  However, if it is more than that, employers should determine the amount of time the employee must wait to clock in and automatically add the wait period to the employee’s work hours for the day
  • Does your time clock round up or down to the nearest ¼ hour?  Rounding must sometimes benefit an employee who is late and sometimes benefit the employer when the employee is early.  If employees are generally a little early, the benefit to the employer may be greater than the benefit to the employee.  Unfortunately, that is true in many organizations.  If the rounding benefits the employer more often than it benefits the employee, a complaint to the labor commissioner can be very expensive.  Set the time clocks to record exact times. The potential problems far outweigh any valid reasons for rounding.

If you have any questions, please contact Champion and we can help you tighten your procedures or develop an automated time tracking  system to properly track your employees’ time while saving time and money.

IRS Standard Mileage Reimbursement Rates for 2011

Beginning on Jan. 1, 2011, the following standard mileage rates for using a vehicle (cars, vans, pickups or panel trucks) will apply:

  • 51 cents per mile for business miles driven
  • 19 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

The new rates for business, medical and moving purposes are slightly higher than last year’s rates. These are the tax deductible rates that the IRS allows you to reimburse your employees for their driving on behalf of your company. You can go higher or lower if you choose but if you pay higher, the IRS will not allow you to deduct the amount over their designated rates.

The IRS website explains:

“The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.

“A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.

“Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.”

What Should You Do?

  • Review your policies to ensure reimbursing employees at the proper rate for 2011.
  • If you intend to change the reimbursement rate, notify your employees.
  • Consult with Champion to be sure you are prepared all the HR compliance changes in 2011

Disgruntled Employees are Inevitable – Are Your Trade Secrets Protected?

As business owners and employers, we all expect to have “Gruntled” employees forever, but in reality, someone will likely leave their position unhappy, carrying the power to harm your business or solicit your clients at some point in the future. From the perspective of an HR Services firm, it happens more often then you think. Ask yourself, are you absolutely confident that current or former employees wouldn’t consider misappropriating internal company data, or attempt to benefit  from the competitive information gained during their employment with you? If the answer is no, read on.

Its likely that you have information that could be valuable to someone, somewhere, and your employees have access to that information. Consider your internal financial data, client lists, employee lists, internal processes, recipes and product secrets. There are specific things you can do to protect this proprietary information but caution is advised. Missteps can dilute the power of your protection or get you in legal hot water. You should take time out to think about these issues now, or certainly before you hire your next employee, and then take the steps necessary to protect your assets.

Protect the Disclosure of Your Sensitive Corporate Information

A properly written Confidentiality Agreement, or Non-Disclosure Agreement can be used used to protect trade secrets and other proprietary information. A Confidentiality Agreement generally requires the named party agree to treat certain corporate information (as specifically set forth in the agreement) as confidential and prohibit that party from personally using or disclosing such information to third parties. Keep in mind, there is a limit to the amount of time you can bind the party to the terms of the agreement, typically during the course of employment and 2-3 years after separation.  Its always wise to protect company secrets internally but this agreement can deter inappropriate disclosure and make it easier to pursue employees or former employees that decide to divulge sensitive information.

Prevent the  Solicitation Clients and Employees

Protecting your employees and clients is possible through the use of a Non-Solicitation Agreements. A Non-Solicitation Agreement typically prohibits the party named from directly or indirectly soliciting customers and company employees in ways that would directly compete with your business. While the courts are not entirely in support of the Non-Solicitation Agreement, with proper wording, and in the defense of provable trade secrets, it can be effective in keeping former employees from raiding your clients and employees to build their own competing business or benefit their new employer. A Non-Solicitation Agreement is much more powerful when combined with a Non-Disclosure or Confidentiality Agreement. With both, the legal restraints on using confidential information should give you the power to prevent a former employee from contacting clients or employees for business purposes.

What about using a Non-Compete Agreement?

A Non-Compete Agreement is a contract that generally states that an employee, former business partner, or former business owner will not engage in the same type of business as the employer, or former business partner or owner in which the individual had an ownership interest for a specific period of time. Despite being very desirable, these agreements are typically illegal and invalid in the state of California unless the non-compete clause is part of the sale or dissolution of a corporation, limited liability company, or partnership.

Its best to avoid any use of Non-Competes, a judge could throw out any accompanying Non-Solicitation or Non-Disclosure agreements if you try and pursue the provisions of the Non-Compete.

Caution Advised

Many employment contracts and severance agreements, especially those downloaded from the internet or picked up off the shelf at an office supply store, may included clauses that are not legal in California or may not withstand legal scrutiny.  It is advised that you avoid use of such agreements, unless you plan to spend some serious money defending a lawsuit for wrongful termination or unfair interference with business. Its best to get wise legal and HR advice when looking to protect your company’s client list and confidential information. Contact Champion if you need more information.

Employers Survival Tip #3

Taking a Bath in the Sink is NOT ok and 5 Other Reasons to Have an Employee Handbook

Yes, we’ve all heard of the employee that was video taped taking a bath in the sink at the Burger King restaurant he was working. While that’s not likely to happen in your workplace, it’s still a critical that you clearly communicate your company policy to your employees.

Your employees need to know what your policies are so they can confidently work at their optimum level knowing that you have a solid strategy regarding their employment. Additionally, in today’s litigious environment, labor board claims, discrimination lawsuits, sexual harassment claims and employees doing really stupid things are all too real and can drain your time and focus or worse, devastate your business.

Here are 5 top reasons you need to have and Employee Handbook:

Save Time and Money

Comprehensive Employee Handbooks, clearly written and carefully compiled will  save time and avoid confusion about your policies and simply keep the redundant questions about vacation, sick-time, benefits and other policies to a minimum. Employees can focus on their work instead of worrying about the little things and trust me…..they worry about the little things.

It Creates Uniformity and Consistency

One of the worst things you can do as an employer is treat employee disparately or handle employment situations inconsistently. The Employee Handbook is a guide not only for you and your managers to consistently respond to workplace situations, but it will help the employees to know that they are being treated equally and fairly.

Employee Handbooks are a Great Motivational Tool – For You and your Employees

When you  clearly define your mission in language that employees will understand and buy into, it can inspire your own leadership and that of your managers to help keep your employees and your business in line with your mission and values. When your employees understand where you’ve been (company history) and buy-in to where you’re going (mission statement), they can help you not just survive, but thrive in a difficult business environment.

Written Policies Can Avoid Legal Disputes

Written policies, consistently enforced, can help diffuse threatening situations before they get out of control.  A well drafted and enforced handbook can ward off accusations of misapplied benefits, pay or overtime. It can provide clear guidance on the company’s position(s) against discrimination/retaliation/harassment as well as how to manage situations like substance abuse, inappropriate behavior, dress code, etc.

The Government Says You Have to Communicate Certain Employee Rights

That should be good enough but we’ll provide some further clarification. You as an employer are obligated to inform your employees of such programs as Family Medical Leave (FMLA) Pregnancy Disability Leave (PDL) Paid Family Leave (PFL) Sexual Harassment, Workers Compensation, Unemployment, Voting rights, and many more. In addition to required postings, the Employee Handbook is the place where the required notification needs to be.

Okay, 6 Reasons

In addition to covering policies designed to help you manage your workforce and protect your business, an effective employee handbook should tell the story of your company, your business philosophy and where you want to go in the future. Information like this is invaluable to employees as it helps them to understand how their lives can be enhanced by a partnership with your business.

I hope we’ve made the case. An Employee Handbook should be part of your strategy to provide a solid foundation your employees can stand upon so they can work efficiently, effectively and profitably. It should also be updated at least annually to ensure all new laws and changes to existing law have been incorporated.

Don’t have time to make it happen? Contact Champion today and we’ll get you started for less than you can do it yourself.