EMPLOYMENT LAW 101
Don’t miss this MSAA meeting! Francyne Stacey, employment and immigration attorney at Butzel Long, will be sharing her in-depth knowledge of best practices and policies. Topics may include:
Employees vs. Independent Contractors
Record retention and compliance
Unemployment claims; and
Employees and social media
MAIN STREET AREA ASSOCIATION MINUTES
April 3, 2014
Those present: Tom Murray and Caroline Kaganov Conor O’Neill’s; Carl Ent and Rhonda Foxworth, Bank of Ann Arbor; Pippa Creffield, Abracadabra; Tim Berry, Ann Arbor State Bank; Amy Cameron and Selena Monroe, Ann Arbor Art Center; Susan Pollay, DDA; Noah Goldsmith, The Wafel Shop; Jessica Wade Johnston, Falling Water; Nick Rau and Rick Russell, Moosejaw; Adam Lowenstein, Alley Bar / Last Word; Lisa Dorwin, Comerica; Lopa, Keybank; Sabra Briere, City Council; Pem Sherpa, The Himalayan Bazaar; Veronique Liem, Smith Haughey; Chris Pawlicki, Old Town; Trevor Step, Running Fit; Annie Wolock, Keystone Media; Judy Comstock and Samara Martin, Republic Parking; Hisako Yabuki, DDA/UM.
President, Tom Murray starts meeting with Introductions
Francyne Stacey, Employment and Immigration Attorney at Butzel Long
Fran presented topics she thought would be useful for employers. Topics included; classifying employees, pay practices/recordkeeping, compliance issues, and social media.
It is important to classify people who work for you as employees or independent contractors. The IRS cares because the government wants its share of your money, FICA, FUTA, and employee taxes. Workers care because they miss out on benefits if they are improperly classified as independent contractors. Penalties for improper classification of workers include wage payments, reimbursement for lost benefits, and attorney costs. Workers are generally employees, not contractors, if you have control over their schedules, you provide training, they are being supervised, and/or if they are an integral part of your overall business operations.
Proper classification is also important for pay practices and recordkeeping. Exempt employees are not entitled to overtime; non-exempt employees are eligible (job titles are not sufficient to establish exempt status). To qualify an employee as an exempt executive, administrator, or professional an employee must be compensated on a salary basis at a rate of not less than $455/week. An executive employee is one who is primarily engaged in management and directs the work of others. Administrative employees generally perform office work or non-manual work directly related to the management of general business operations of the employer. Professional employees are engaged in work that requires advance specialized knowledge.
If a business does not meet the compliance standards, they are exposed to numerous fines and penalties. A common compliance violation is I9 forms not being dated or filled out within three days of the employees hire date. Make sure they are dated. Also, do not keep I9’s filed with personal files or medical files (if audited they will see the personal files). Immigration is coming around more and more.
There is no way to prevent employees from accessing and posting to social media in or about the work place, but you can set up some limitations. By providing social media guidelines to employees you can prevent the posting of discriminatory remarks about customers and can express what you consider inappropriate content to be.
Questions: “We have musicians play, are we responsible for their workers comp. insurance?” Fran explained, that you shouldn’t provide additional coverage for them, it should be covered under your general liability insurance. However, you should make it clear with in a written agreement that the employer doesn’t cover workers comp. or insist they provide their own insurance. “What if employee is an administrator during the day, and makes deliveries for business at night, would you have to pay them overtime?” Fran explained, how you pay them is very specific to the organization. If they are doing two separate jobs, it can work to treat as an independent contractor for one. In some states, independent contractors have to set up their own business. “Can an employer provide additional compensation instead of overtime / can you be discretionary and give a salary person extra pay?” Fran explained it is dependent on what job duties are and how much discretion employee has.
May 1 MSAA meeting will be at Sweetwaters Coffee and Tea, it will be a mayoral candidate forum.
Ladies Night is May 9. We will be doing the passports, if you have any questions contact Maura or Sandra.