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Category: Terminations


How Solid is Your Employee Handbook?: Employee Sets Record for Longest Absence

 How important is a good attendance policy? Consider the case of a 69-year-old Spanish civil servant who gained international notoriety.  It seems that this particular water utility employee held what we hope was an unmatched record: the employee grabbed the slacker brass ring and was absent from work for a total of six years, while still collecting a check.    Add in the fact that no one noticed he wasn’t reporting to work and it’s easy to see how this employee made international headlines.

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What should be in your employee’s severance payment?

You are probably aware that State laws governing employees' final pay upon termination vary widely. As your company grows, needing to terminate an employee may come up more often. To avoid legal hassles, you should make sure your HR people know how to legally cut the employee’s severance payment check. For example, a laid-off employee's severance payment may be due immediately upon termination (e.g., in California), or not until an employee's next regularly scheduled payday (e.g., in Florida). Likewise, an employee's entitlement to payment for accrued vacation and/or sick time, commissions, and bonuses varies by state. There are different rules in each state for whether the employee is entitled to: Accrued vacation Accrued sick time Commissions Bonuses Failing to pay an employee as required by law can subject you to costly unpaid wage claims and additional civil penalties. You should encourage your HR resources to take a look at applicable laws to determi ...

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HR Outsourcing Can Help You Create an Effective Employee Discipline Policy

  HR Outsourcing Can Help You Create an Effective Employee Discipline Policy   Sections:   HR Outsourcing Helps with Employee Policies Disciplinary Policy is Key Employee Discipline Basics   HR outsourcing can be invaluable to your business. An effective employee discipline policy is just one way HR outsourcing can help you be as efficient as possible. Here are some guidelines we can help tailor for your specific needs: Disciplinary Policy Key Common problems at work that require attention often include poor attendance, inappropriate or offensive behavior (such as harassment or discrimination) and dress code violations. HR outsourcing consultants can help you develop a plan for how to address most infractions on the front end. When it comes to disciplining employees, documentation is key. To effectively discipline a person, managers should have well prepared documentation to back up any action decisions. In order to have strong documentation, companies need a well written disc ...

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Federal HIRE Act offers a tax credit on social security, how much can my company earn?

Federal HIRE Act offers a tax credit on social security, how much can my company earn? President Obama signed into law the Hiring Incentives to Restore Employment Act ( HIRE Act ) in March of 2010. The federal HIRE Act carries a tax credit on Social Security. It starts immediately for employers hiring qualified employees through the remainder of 2010. The best way to generate the maximum tax credit on Social Security is to hire qualified employees early in the year, since the exemption stops on wages paid after January 1, 2011. If an employee earning $40,000 annually is hired on April 1, 2010, the Social Security tax credit to the employer would be approximately $1,900. If the same employee was not hired until Aug. 15, 2010, the savings would be lowered to $950. The tax credit on Social Security can be used to offset scheduled tax deposit liabilities beginning April 1, 2010 and accrue with each payroll processed. Employers will receive a 6.2% Employer Social Security Tax Ex ...

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Having an employee sign a separation agreement doesn’t cover you completely.

Having an employee sign a separation agreement doesn’t cover you completely. If you offer a severance, a separation agreement and general release is essential to secure the release of employment-related claims. Keep in mind that not all claims can be released by an employee, Including: Wage and hour claims Certain workers' compensation-related claims Family and Medical Leave Act (FMLA) claims (courts are split over this issue). Additionally, an employer cannot bar an employee from filing a charge of discrimination (although it can prevent an employee from obtaining related monetary relief thereunder). Because of varying local/state employment laws, employers should be encouraged to seek outside counsel for separation agreement drafting and review. A separation agreement should be clearly written and must comply with local, state, and federal law. Important factors must be considered when negotiating severance and drafting a separation agreement. Modern Business ...

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