HR Priorities for 2018

Each January I publish a list of HR priorities for small and mid-sized companies for the coming year. Here is this year's list:

1. Harassment Policy and Training - sexual harassment has been a dominant feature on newscasts over the past several months. Like me, you've probably been shocked by some of the allegations against prominent celebrities and politicians. The take-away for small and mid-sized businesses is that they should have two things in order: First, they should make sure they have a good policy. Read yours and confirm that it covers what it should and is very clear about what employees should do if they believe they are being harassed. Second, they should make sure all of their foremen, leads, supervisors and managers have received documented training on what harassment is (and isn't) and what to do if they encounter it.

2. Classification of Exempt/Non-exempt - if you are located in North Carolina, 2018 signals the beginning of a new enforcement division which represents a consolidation of resources at the state level specifically to combat misclassification of employees. Summarizing what one labor attorney told me: "in the old days, if one agency determined you were out of compliance, they didn't necessarily communicate that with other agencies, but with this new enforcement group, you're more likely to get hit with fines from multiple agencies for a single infraction." That might mean fines from the wage and hour division for failure to pay overtime plus fines from the taxing authorities for failure to withhold the proper taxes, all from a single investigation. Even if you're not in NC, lack of compliance with exempt/non-exempt can be an expensive mistake.

3. Classification of Employee/Contractor - many small companies find it tempting to bring on workers as 1099 contractors rather than employees. It's less hassle for the company and the workers like it because their weekly check is bigger. But it's a risky strategy. The government discourages the use of 1099 because it doesn't get its tax money on payday, and may not get it at all. The fines and penalties associated with misclassification of employees as contractors are among the stiffest an employer can face. The threat of prison is even on the table for extreme cases.

4. Social Media policy - the National Labor Relations Board under the Obama administration took a very rigid stance against social media policies that they felt had the potential to silence speech protected by the NLRA. That Board, now lead by a Trump appointee, recently announced a softening of that position. But it still makes sense for organizations to ensure that they have a social media policy that protects the companies interests while also remaining in compliance with even a narrow interpretation of the NLRA. 

It can be a costly mistake for business owners to assume that since a more business-friendly administration has replaced a more labor-friendly administration, that investigators and auditors from state and federal agencies are going to turn a blind eye to violations such as these. The rules are still the rules and business owners are better served being compliant.

If you need assistance with these or any HR initiatives in 2018, The Davidson Group is here to help.