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Hiring in a Seasonal Environment

Hiring in a Seasonal Environment. 2014 Lake Business Conference. Disclaimer. I am not, nor have I ever been an attorney, and to my knowledge have not played one on TV or in local theatre Information presented here today is based upon my own research and analysis

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Hiring in a Seasonal Environment

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  1. Hiring in a Seasonal Environment 2014 Lake Business Conference

  2. Disclaimer • I am not, nor have I ever been an attorney, and to my knowledge have not played one on TV or in local theatre • Information presented here today is based upon my own research and analysis • Legal issues should be directed to your attorney for further in-depth guidance

  3. Unintended Consequences - ACA • How long will your seasonal employees be with you? • 120 days • More than 4 across four months • FTE = Total part time (possibly including PT seasonal employees) hours in a month ÷ 120

  4. Unintended Consequences: SUTA • State Unemployment Tax • $13,000 wage base – for each SS # • Seasonal - likely you will not hit cut-off • (FT turnover means you may not hit your cut-off!) • New business assigned rate 3.51% • Rolling 3 year experience rate calculation • What is YOUR rate? (What’s leaving your wallet?!)

  5. Unintended Consequences: SUTA What is YOUR rate? • Protest claims! • Quit for higher wages • Didn’t accept “suitable work offered” • Quit without good cause attributable to the employer • Discharged for misconduct connected to with work • Paid less than $400 during the claim’s base period • Properly reported as a probationary worker whose period of employment was 28 consecutive days or less

  6. Unintended Consequences: FUTA • Federal Unemployment Tax • $7,000 wage base – for each SS # • Seasonal - likely you will not hit cut-off • (FT turnover means you may not hit your cut-off!) • Missouri businesses will pay 1.8%

  7. Unintended Consequences: SUTA/FUTA • Consider your sources • Generally, students returning to school are not eligible for unemployment • (Would have to demonstrate that they are willing to quit school) • Start recruiting early! • Campus placement offices • Flyers • Job fairs • “Same Time Next Year” raise • Student referral incentive

  8. Fair Labor Standards Act • Where to start? • Does NOT require • Vacation, holiday, sick or severance pay • Meal or break periods, holidays off, or vacations • Premium pay for weekends, nights, or holidays • Pay raises or fringe benefits • Does address • Minimum Wage & Overtime (and their exemptions) • Child Labor • And many other labor topics

  9. Missouri 2014 Minimum Wage • Increased to $7.50 in January • Applies if gross Income over $500,000 • Individual coverage for “interstate commerce” employees (supplies, credit card processing) • Minimum wage for tipped employees is 50% • $3.75 • Employer must make up the difference if tips don’t • Fed minimum wage still $7.25 (7/24/2009) • Also has $500,000 and interstate commerce provisions

  10. Fair Labor Standards Act • Youth Minimum Wage • Under the age of 20 • First 90 consecutive calendar days • $4.25 • May not displace other workers

  11. Child Labor Law Consideration • 14-15 years old • June 1 – Labor Day: • Not more than 8 in a day / 40 in a week • Not before 7am • Not past 9pm • May not perform jobs declared “hazardous” by DOL like deep fryers, walk-in freezers, machinery • 16 – 17 years old • No rules restricting hours of work • May not perform jobs declared “hazardous” by DOL like machinery (including balers & slicers), roofing http://www.dol.gov/whd/regs/compliance/childlabor101_text.htm

  12. FLSA Seasonal Amusement Exemption Exempt from OT and minimum Wage if: • Do not operate for more than 7 months in any calendar year (excludes maintenance) or • Any 6 month’s average receipts are not more than 1/3 of the average receipts of the other 6 months in that same year

  13. FLSA Seasonal Amusement Exemption Example: Closed: Jan, Feb, Mar Operated 9 months, so then apply the 33% test. Receipts May-Oct (6 months) = $260,000 • Monthly Avg of $43,333 Receipts Apr, Nov, Dec = $75,000 ÷ 6 = $12,500 $12,500 ÷ $43,333 is less than 33%, so FLSA EXEMPT

  14. Overtime Considerations • Common mistakes • OT is for hours over 40 in a seven consecutive day period • You can define the payperiod to suit your company • No bi-weekly averaging • No staying “after work” to finish cleaning up

  15. Overtime Considerations • Common mistakes • Fixed dollar amount bonuses increase the hourly wage for purpose of OT calculations • Breaks – up to 20 minutes are considered compensable time • Bona fide meal periods typically last at least 30 minutes

  16. Selection • Keep the job requirements in mind when sorting applications • Prepare a list of (legal!) questions that are behavioral in nature, not “hypothetical” • Prepare a Candidate Evaluation Form to complete after each interview • If possible, don’t be the only interviewer

  17. Selection • Require the application be filled out on-site • Remember the 80/20 rule • During the interview, don’t help them out • Have each interviewer complete a Candidate Evaluation Form “Hire the person first, and the skill-set second”

  18. Selection – Interview Questions • Tell me about a time when you went out of your way to give great service to a customer. • Tell me about a time when you knew that your customer might not get what he or she needed on time. How did you handle this? • Share an example how you developed rapport with a customer. • Tell me about a time when you had trouble working with a difficult or demanding customer. How did you handle this? What did you learn?

  19. Retention • Employees hire on to the company, but they usually quit the supervisor. • Hire one (not two!) season’s worth of employees An organization’s performance level can not exceed that of it’s people. Seasonal or Regular Full Time makes no difference to your customers.

  20. Retention – Orientation/Training • Explain the position overview and how it ties to the big picture • Review job description • Talk about how you’ll provide performance feedback • End of Season bonus – Keep them all season!

  21. Retention – Orientation/Training Cover the basics • Who– Management team, “buddy system” • What– To wear, tools needed • Where – Supplies, first aid, time clocks • When – Hours of work, pay cycle, call in rules • How – YOUR WAY! rules, preparation, software • WHY – Why you hired them. Why they’re important to you! Your brand …

  22. Retention – Orientation/Training • Discuss employee handbook key policies • Unapproved OT, sexual harassment, attendance, punctuality, personal appearance, customer service, etc. • Review benefits summary FT vs. Seasonal • Holidays, vacation, etc. • I9’s, W-4’s, harassment policy sign-off • Document copies permitted, but not required • Retain the longer of 3 yrs from DOH or 1 yr from termination • Keep in a separate file

  23. Work Opportunity Tax Credit WOTC – Tax Credits for hiring specific groups facing barriers to employment The tax credit ranges from $1,200 to $9,600, depending on the employee hired. • SNAP (Food Stamp) recipients • TANF Recipients • Long-term family assistance • Ex-Felons • Vocation Rehabilitation referrals • Qualified veterans • No limit how many you hire – ideal for lower wage, high turnover positions. More than offsets the SUTA issues. • Employee forms completed on date of hire • Filed with State Workforce Agency within 28 days • http://www.doleta.gov/business/incentives/opptax/eligible.cfm

  24. Work Opportunity Tax Credit Tax credit equal to 25% or 40% of a new employee's first-year wages, up to the maximum for the target group to which the employee belongs • If the individual works at least 120 hours, the employer may claim a tax credit equal to 25% of the individual's first year wages, up to the maximum tax credit • If the individual works at least 400 hours, the employer may claim a tax credit equal to 40% of the individual's first year wages, up to the maximum tax credit

  25. Why Do This?

  26. When You Can Do This?

  27. Owner/Manager vs. Employer Manager Employer Government paperwork and personnel issues Run Business and generate profits Non-productive! Bottom Line! Time is a precious, expensive, and scarce resource. PEO’s free managers to focus on the business.

  28. The PEO Relationship

  29. Personnel Files & Record Keeping ONE YEAR • Hiring Records: job applications, resumes, records relating to refusal to hire, job advertisements Federal Contractors should keep these for two years • Employment Actions: hires, separations, rehires, promotions, demotions, transfers, layoffs, recalls, training opportunities, employment test results

  30. Personnel Files & Record Keeping THREE YEARS • Payroll Records: name, address, SSN, date of birth, job classification, occupation, pay rate, weekly compensation, amounts and dates of payments, daily and weekly hours, OT hours and pay, pension payments, benefits, deductions from wages • FMLA: all documents relating to FMLA leaves • I-9 Forms: 3 years after hire or one year after termination, whichever is later

  31. Personnel Files & Record Keeping FOUR YEARS tax records FIVE YEARS job related illnesses and injuries THIRTY YEARS Medical Records, i.e. medical examinations, toxic substance exposure, blood-borne pathogen exposure

  32. Questions?

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