Five Ways the
Government
Can Get You
By Seth Taylor
There are dozens upon dozens of state and federal regulations that dictate how employers – large, small and all sizes in between – treat their employees and even potential employees.
However, because these
regulations can often be
complicated or arcane, many employers find it difficult to understand how the laws impact them or their businesses. As a result, employers often,
knowingly or unknowingly, violate the regulations.
“The first time I walk into a potential client's office, I can usually identify five or more areas where the company or practice is non-compliant,” said Robert Colmenares, Vice President, G&A Partners, an Administrative and Human Resources Services company and a Platinum Sponsor of the BCMS Circle of Friends.
“Non-compliance is not typically about a business owner being irresponsible or negligent. Instead, it is more often a factor of the business owner not understanding or being aware of a particular regulation.”
Below are examples of some of the most common violations, along with potential consequences.
A physician terminates an employee for work-related misconduct. However, the physician never provided the employee with an employee handbook, so he never signed a policy and procedure acknowledgment. In addition, the physician neglected to maintain a written file of the employee’s
misconduct, so there is no documentation of the employee’s disciplinary history.
Consequences: Because the physician cannot present documented evidence of the employee’s misconduct nor demonstrate that the employee should have known of the company policy, the physician is charged with a costly unemployment claim.
A small business owner works her hourly, non-exempt employees nearly 50 hours each week, but only pays them for 40 hours. A competing business owner also works his employees 50 hours each week, and although he pays them for 50 hours, he only pays the regular straight time rate rather than incorporating any overtime pay.
Consequences: Several employees file “Wage & Hour” charges, which in turn lead to audits of ALL payroll records. Both employers are found to be non-compliant, one is required to repay two years of back pay, while the other is required to repay three years of back pay because it was determined that the violations were knowingly and willfully committed (FLSA violation).
A supervisor at a mid-sized manufacturing company continually makes sexist comments and tells his subordinates off-color jokes that offend a number of employees. One employee complains, but the company does nothing about it and the negative behavior continues.
Consequences: The employee files an EEO charge, and later, a harassment suit. After incurring sizable legal fees, the company ultimately agrees to a significant settlement (Title VII violation).
During a job interview, a physician asks the applicant if she has children. The applicant is not hired, and she assumes it is because she responded that she has small children.
Consequences: The applicant files an EEO charge and ultimately a suit against the practice. The physician is forced to pay extensive legal fees to defend against the suit.
This list is just the tip of the proverbial iceberg. It is nearly impossible for a business owner, physician or practice manager to keep up with all the regulations governing employee issues, so how does he avoid making a costly mistake? The most effective way to ensure your business is in compliance with all the human resource regulations is to hire knowledgeable Human Resource professionals, whether you hire in-house or outsource human resources.
Outsourcing HR makes sense for a lot of practices, especially in this time of falling reimbursements. By having an outside firm manage human resources, benefits, payroll, accounting and risk management, physicians and their employees can focus more of their time on patients and fee-generating activities, rather than worrying about compliance issues and administrative tasks.
For more information about regulations governing employee matters or outsourcing human resources, contact Seth Taylor at G&A Partners at 210-490-6425 or via email at staylor@gnapartners.com.
