If you do bring on an unpaid intern, you must adhere to the following rules:

• Training received by the intern must be for his or her benefit.
• Training must be general, not for the immediate advantage of the business, and it may even slow normal operations.
• Interns can’t be used to replace paid employees.
• Interns must be closely supervised or mentored.
• Interns can do real work as long as they are closely supervised, are learning and aren’t necessarily creating a final product.
• Both the intern and the business must agree that the internship will be unpaid.
• Both parties must agree that no job is promised at the end of the internship.
• High schools, technical schools and colleges can partner with businesses to set up compliant unpaid internships in which the student receives course credit. This lends credibility to the internship’s benefit for the student.

Make sure that you have a thorough written plan outlining the activities and training the intern will receive throughout the course of the internship, as well as the expected learning goals.  Be sure to offer internships in writing, with a full outline of internship activities, goals and conditions.

It’s advisable to consult with legal counsel when developing a formal internship program to ensure that the company is not creating liability by bringing on unpaid interns.

If an intern fails to meet all of the DOL’s criteria, they should be paid at least minimum wage and any appropriate overtime as employees. When in doubt, businesses can avoid legal problems by paying interns at least minimum wage.

 Jill Critchfield is a professional Human Resources Consultant.  Through her business, Pacific HR, she has provided HR services to over 150 small and mid-sized businesses in Portland, Oregon since 1999.

Calling a Candidate’s References

• Make sure you have a signed authorization from the candidate allowing you to check on past employment details.  Generally, your employment application should contain this language and signature, but you may choose to use a separate form.  Many employers will not verify any information regarding past employees without this signed authorization.
• Request that the candidate provide you with at least 3 professional references.  Tell the candidate that these references should be able to speak freely about their interaction with the candidate in the workplace.  While references may be supervisors, peers, subordinates, vendors or clients tell the candidate that you need at least one of the professional references to be a past or present direct supervisor.
• Create a standard reference check form that includes all of the questions you intend to ask the references.  These questions should include, dates of employment, title, salary (if applicable), and additional questions regarding attendance, dependability, teamwork and work performance.  All questions must be work related. Do not ask any questions regarding a candidate’s personal life or questions that will reveal a candidate’s protected class status.
• Make sure you are complying with state rules regarding criminal background investigations and credit checks, and that you review the Fair Credit Reporting Act (FCRA) prior to conducting any of these activities.
• Remember that quality candidates should be able to easily provide you with three professional references that can speak to their abilities in the workplace.  If a candidate can’t provide such references, or if the references reveal troubling information, you should seriously reconsider the person as a final candidate.

Responding to a Reference Request

• Make it your company’s policy to only verify dates of employment and position title.  Only verify salary information if you receive a signed authorization from the employee allowing you to do so.  Ensure your Employee Handbook requires all staff to adhere to this policy.  Refer to your attorney prior to responding to a reference request if the employee in question committed workplace violence, or was terminated for any particularly unusual circumstances.

Jill Critchfield is a professional Human Resources Consultant.  Through her business, Pacific HR, she has provided HR services to over 150 small and mid-sized businesses in Portland, Oregon since 1999.

• Be clear as to where personal cell phones are NOT allowed (i.e. manufacturing floor, front of store, etc.).
• If you do allow employees to carry personal cell phones at work, be sure to clarify if phones are to be turned off or “silenced” during work hours.
• State that employees may use personal cell phones during break or meal periods, but that such use should not interrupt customers or business operations.
• You may choose to allow employees to “limited and reasonable” personal use of cell phones in the workplace.  If this is the case, request that employees excuse themselves to a private area so as not to disturb co-workers or business operations.  Be sure to add that determination of “limited and reasonable” is at management’s discretion.
• Many states now have restrictions on use of cell phones in vehicles.  If your employees drive during work hours, be sure to include policies adhering to state rules regarding cell phone use in vehicles.  You may choose to go above and beyond state regulations and ban all forms of cell phone use while driving on company business.  Consider purchasing “hands free” devices for employees who may need to make business calls while traveling in vehicles.
• If you provide company cell phones to employees, be sure to state whether or not you will allow personal use of such items.  If you do allow “limited and reasonable” personal use of company phones, be clear that ALL cell phone communications (business or personal) must adhere to other company communications standards and not be harassing, inappropriate or illegal.

Jill Critchfield is a professional Human Resources Consultant.  Through her business, Pacific HR, she has provided HR services to over 150 small and mid-sized businesses in Portland, Oregon since 1999.

• Favoritism
• Perceptions of favoritism
• Conflicts of interest
• Hostile work environment
• Sexual harassment

To avoid or minimize such concerns, consider adding a Workplace Relationships policy in your Employee Handbook. Make sure the policy includes the following details:

• A clear statement that you require all employees to behave in a professional manner in the workplace at all times.
• State that employees are to avoid public displays of affection that may be perceived as unprofessional, such as hugging, kissing, handholding, etc.  Such displays may make co-workers uncomfortable and detract from the professional image of the workplace.
• Notify employees that they are to notify you if they are involved in a romantic workplace relationship that could result in real or perceived favoritism by others.
• State that a relationship that results in perceived or real favoritism may require you to transfer or terminate one of the involved employees.

Be sure to use discretion and handle each workplace romance evaluation with sensitivity.  With care and concern you should be able to develop an arrangement that allows the relationship while maintaining a professional image and workplace environment for your employees.

Jill Critchfield is a professional Human Resources Consultant.  Through her business, Pacific HR, she has provided HR services to over 150 small and mid-sized businesses in Portland, Oregon since 1999.

Conserves Energy – Telecommuting conserves the energy and resources associated with a daily commute such as vehicle & road maintenance. Also reduces the materials and energy used in the office.

Maximizes the Employees Free Time – By eliminating the commute, employees have more time to devote to family and personal endeavors.

Improves Productivity/Reduces Stress – Studies suggest that people who work from home are more productive with their time, and are less stressed than those who work in a traditional environment.  Here is some of the research results:  http://psychcentral.com.

Decreased Turnover – Employees consider telecommuting a valuable benefit, and are reluctant to leave an employer who supports such flexibility.

Before you start having an employee work from home, be sure to address the following items:

Develop a Telecommuting Plan: Develop a thorough plan that addresses work hours, expectations and deliverables.  Make sure the plan is in writing and signed by the employee.    Also make sure to retain the right to terminate the telecommuting aspect of the position if things are not working according to plan.

Make Sure the Employee Is Prepared: Ensure that the employee has been provided all of the tools required to work effectively from home.  A computer, high speed connection and dedicated phone line are just some of the items to be considered.

Timekeeping: Consider installing timekeeping and supervisory software on the telecommuter’s computer.  This will eliminate any arguments as to how the employee is spending their day. 

Security: Make sure the employee has a secure computer and office environment that will allow you to keep your company and client information confidential. Article: Telecommuting Security Mistakes.

Jill Critchfield is a professional Human Resources Consultant.  Through her business, Pacific HR, she has provided HR services to over 150 small and mid-sized businesses in Portland, Oregon since 1999.

• Develop policies that allow employees to stay home sick without fear of reprisal.
• Develop flexible policies to allow workers to telework (if feasible) and create other leave policies to allow workers to stay home to care for sick family members or care for children if schools close.
• Provide workers with up-to-date information on influenza risk factors, protective behaviors, and instruction on proper behaviors (for example, cough etiquette; avoid touching eyes, nose and mouth; and hand hygiene). See www.cdc.gov/h1n1flu/business.
• Provide resources and a work environment that promotes personal hygiene. For example, provide tissues, no-touch trash cans, hand soap, hand sanitizer, disinfectants and disposable towels for workers to clean their work surfaces.
• Promote a culture of health in the workplace, encouraging employees to access available health benefits & flu shots.

Other resources may be found at www.flu.gov, as well as a letter to small businesses from Janet Napolitano, Secretary of Homeland Security

Jill Critchfield is a professional Human Resources Consultant.  Through her business, Pacific HR, she has provided HR services to over 150 small and mid-sized businesses in Portland, Oregon since 1999.

• Consider Your Options – Many companies are avoiding layoffs by looking to other pay & staff reduction strategies.  Consider an across the board pay reduction for all employees, reduced staff hours or a required time off without pay schedule.  Employees are often understanding of such measures in lieu of layoffs.

• Be Fair – Make sure you aren’t selecting lay off candidates with a disparate impact on protected class employees.  Layoff considerations should be based on company operational and financial needs.  Consider utilizing a seniority based system for determining layoff candidates.

• After the Layoff – Laid off employees may be eligible for unemployment, so be prepared for this.  Make sure you are in compliance with COBRA or similar state programs.  Consider whether or not you are going to offer severance payments to laid off employees, and if you are going to require a release for severance payments.

• Know Your State’s Employment Rules – Specifically, final pay rules.  Employment regulations and rule can vary wildly from state to state.  Make sure you are versed in your state’s rules.

• Communicate – Be sure to immediately communicate to all remaining staff the reason for the lay off and express your regret for the situation.  Confirm that the decision was to keep the company in solid financial shape and stable through this tough economy.

• Continue to be Proactive – Don’t forget to continue with goals to move your business forward.  Even in a staff reduction situation, you should continue to develop your policies, programs & staff development.

Jill Critchfield is a professional Human Resources Consultant.  Through her business, Pacific HR, she has provided HR services to over 150 small and mid-sized businesses in Portland, Oregon since 1999.

• Employee Handbook – Make sure you have an up to date and customized Employee Handbook for your business. A well written Employee Handbook will:
  • Define your policies & procedures
  • Communicate to your employees
  • Protect your business from liability

• Classify Contractors and Employees Correctly – Make sure you have people classified correctly as either Contractors or Employees. Use the 20 Rule test to determine if you are meeting IRS classification criteria.

• Make sure you know your state employment rules

Employment regulations and rule can vary wildly from state to state. Make sure you are versed in your state’s rules.

• Job Descriptions – Develop accurate and up to date Job Descriptions for every position in your company. Job Descriptions should include the Knowledge, Skills and Abilities required for each position, as well as primary responsibilities for the job. Well drafted Job Descriptions are:
  • Great for defining the new and current jobs
  • Works as documentation if you need to discipline a current employee.
  • Help when hiring for a new position – use the job description to create the ad and screen candidates.

• Document all discipline! There are two primary purposes to documented disciplinary action:
  • Clearly communicate the issue and correct behavior to employees.
  • Protect your business!

Jill Critchfield is a professional Human Resources Consultant. Through her business, Pacific HR, she has provided HR services to over 150 small and mid-sized businesses in Portland, Oregon since 1999.

1.  Employee Handbook Review – Don’t have an Employee Handbook yet?  Make this your top priority for the year.  If you haven’t had your handbook reviewed for a couple of years, contact an HR consultant to make sure your manual is up to date.  A well written Employee Handbook is a must for any small business.

2.  Update Job Descriptions – Job descriptions are invaluable tools for any business. Make sure your job descriptions are up to date and accurate.  Not sure where to start?  Ask your employee’s to review their own job descriptions and give you feedback on the accuracy of the document. 

3.  Annual Performance Evaluations – Many small business owners drag their feet when it comes to annual performance evaluations.  Make this the year that you conduct Performance Reviews on time for all employees!

4.  Employee Files – Make time this year to ensure you have a complete Employee File for each staff member.  Review your State’s regulations in regards to Employee Files and make sure you are in compliance.

5.  Review ADA procedures – New changes to the Americans with Disabilities Act go into effect on January 1, 2009.  Take time to review the changes and how they may affect your business.

Jill Critchfield is a professional Human Resources Consultant.  Through her business, Pacific HR, she has provided HR services to over 100 small and mid-sized businesses in Portland, Oregon since 1999.

1-14 Employees

• Fair Labor Standards Act (FLSA) (1938)
• Immigration Reform & Control Act (IRCA) (1986)
• Employee Polygraph Protection Act (1988)
• Uniformed Services Employment & Re-employment Rights Act of 1994
• Equal Pay Act of 1963
• Consumer Credit Protection Act of 1968
• National Labor Relations Act (NLRA) 1935
• Labor-Management Relations Act (Taft-Hartley) 1947
• Employee Retirement Income Security Act (ERISA) 1974 (if Co. offers benefits)
• Uniform Guidelines of Employee Selection Procedures (1978)
• Federal Insurance Contribution’s Act of 1935 (FICA) (Social Security)

11-14, add

• Occupational Safety & Health Act (OSHA) (1970)

15-19, add

• Civil Rights Act of 1964 Title VII, Civil Rights Act of 1991
• Title I, Americans with Disabilities Act of 1990, (ADA)

20-49, add

• Age Discrimination in Employment Act (1967) (ADEA)
• Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA)

50 or more, add

• Family and Medical Leave Act of 1993 (FMLA
• EEO-1 Report filed annually w/EEOC if Organization is a Federal Contractor

100 or more, add

• Worker Adjustment & Retraining Notification Act of 1989 (WARN)
• EEO-1 Report filed annually w/EEOC if Organization is not a Federal Contractor

Federal Contractors, add

• Executive Orders 11246 (1965), 11375 (1967), 11478 (1969)
• Vocational Rehabilitation Act of 1973
• Drug Free Workplace Act of 1988
• Vietnam-Era Veterans Readjustment Act of 1974
• Davis Bacon Act of 1931
• Copeland Act of 1934
• Walsh-Healy Act of 1936

Jill Critchfield is a professional Human Resources Consultant.  Through her business, Pacific HR, she has provided HR services to over 100 small and mid-sized businesses in Portland, Oregon since 1999.