News

Do we need to pay summer interns

By |2024-03-27T13:13:13-08:00March 27th, 2024|HR News|

Question:
Do we need to pay summer interns?

Wendy, PHRAnswer from Wendy, PHR:

Generally, yes, though it depends on who benefits most from their work.
The U.S. Department of Labor (DOL) has adopted the “primary beneficiary test” to determine whether a worker is an employee (who must be paid in accordance with federal wage and hour law) or can be classified as an unpaid intern (a non-employee who is exempt from federal wage and hour law). If the worker is the primary beneficiary of the arrangement—as opposed to the employer—they can be classified as an unpaid intern. If the employer is the primary beneficiary, the worker must be classified as an employee and must be paid minimum wage and overtime under the Fair Labor Standards Act.

To determine who the primary beneficiary is, consider the extent to which:

• The internship provides training that would be similar to what would be given in an educational environment, including clinical and other hands-on training provided by educational institutions.
• The internship is tied to the intern’s formal education program by integrated coursework or the receipt of academic credit.
• The internship accommodates the intern’s academic commitments by corresponding to the academic calendar.
• The internship’s duration is limited to the period in which the internship provides the intern with beneficial learning.
• The intern’s work complements, rather than displaces, the work of paid employees while providing significant educational benefits to the intern.
• The intern and the employer understand that there is no expectation of compensation. Any promise of compensation, express or implied, suggests that the intern is an employee.
• The intern and the employer understand that the internship is conducted without entitlement to a paid job at the end of the internship.

According to the DOL, the test is flexible, and no single factor will necessarily tip the scales. But as a practical matter, if having summer interns is saving your company money or the interns aren’t receiving some kind of academic credit, you should think very hard about classifying them as non-employees.
If you’re not sure whether the worker should be classified as an unpaid intern or paid employee, the safer option would be to classify them as an employee. Misclassification can be costly. And as is always the case, you should check state law for any additional requirements.

This Q&A does not constitute legal advice and does not address state or local law.
Wendy has over 20 years of experience in HR and talent acquisition. She has been writing and talking about HR for 5 years and was an HR podcast host for 4 years. Wendy has a BA from the University of South Dakota. In her spare time, she makes artisan ice cream and volunteers with her daughter’s Girl Scout troops.

Questions?
Vital Signs Insurance Services, Inc.
PO Box 6360
Folsom, CA 95630
Phone: (916) 496-8750
Email: [email protected]
Fax: (916) 496-8754

California Fast Food Worker Minimum Wage Increase

By |2024-03-18T12:21:16-08:00March 18th, 2024|HR News|

California Law Alert
March 18th, 2024

California Fast Food Worker Minimum Wage Increase

Beginning April 1, 2024, the minimum wage for many fast food employees will be $20 per hour.
This new minimum wage applies to employees who work for a fast food restaurant in California that’s part of a national fast food chain. The law defines a national fast food chain as a group of limited-service restaurants that meets the following three criteria:

• It has more than 60 establishments across the country
• It shares a common brand, or has standardized options for appearance, marketing, packaging, and offerings
• It’s primarily engaged in providing food and beverages for immediate consumption that customers select and pay for upfront with minimal or no table service

The law doesn’t apply to certain bakeries or restaurants inside grocery stores. Detailed FAQs are available here.
Required Notice

Employers with covered employees are required to post a supplement to the minimum wage order in a place where employees will frequently see it.

Future Increases
The newly created Fast Food Council will have the authority to raise this minimum wage annually beginning January 1, 2025.

Questions?
Vital Signs Insurance Services, Inc.
PO Box 6360
Folsom, CA 95630
Phone: (916) 496-8750
Email: [email protected]
Fax: (916) 496-8754

The Difference Between a Furlough and a Layoff

By |2024-02-28T15:44:59-08:00February 28th, 2024|HR News|

Question:
What’s the difference between a furlough and a layoff?

JennyAnswer from Jenny, SPHR, SHRM-SCP:

Furloughs and layoffs are ways to reduce labor costs during times of economic hardship. They both involve a loss of work for employees, but there is a key difference between them.
A furlough continues employment but reduces scheduled hours or requires a period of unpaid leave. Because the employment relationship remains intact, employees typically expect that they’ll come back to their full schedule when the period of hardship is over. Employers should generally avoid using a furlough if the odds of bringing people back are slim, as it can provide false hope and prevent employees from seeking new work when they should.
A layoff, on the other hand, involves terminating the employment relationship. In most cases, layoffs are permanent, and employees don’t expect to be rehired. While layoffs can be temporary, furloughs are usually the better option when the employer plans to bring the employees back since it avoids the administrative hassle of terminating and rehiring employees.
Whichever method is chosen, employees may be owed certain notices and benefit continuation rights. In addition, affected employees may be eligible for unemployment insurance benefits.
This Q&A does not constitute legal advice and does not address state or local law.
Over her 20 years of experience, Jenny has specialized in helping small to mid-sized businesses across a variety of industries reduce their risks and manage employee relationship issues. Jenny holds a Bachelors of Business Administration (BBA) degree in Human Resources Management from the University of Georgia and a Masters of Business Administration (MBA) degree with a concentration in Human Resources Management from Georgia State University.

Questions?
Vital Signs Insurance Services, Inc.
PO Box 6360
Folsom, CA 95630
Phone: (916) 496-8750
Email: [email protected]
Fax: (916) 496-8754

Could this be considered discrimination?

By |2024-02-14T11:25:46-08:00February 14th, 2024|HR News|

Question:
An employee says their manager told them to lose their accent if they ever want to be promoted. Could this be considered discrimination?

Answer from Kim, SPHR, SHRM-SCP:

Yes. Discrimination based on national origin is prohibited under Title VII of the Civil Rights Act and includes treating applicants or employees unfavorably because they are from a particular country or region of the world, speak with an accent, or appear to be of a certain ethnic background. Even if the manager didn’t follow through on the lack of promotion, ongoing comments from the manager about the employee’s accent could also be considered harassment. We recommend that you take this situation seriously and investigate it immediately.
While there are some limited circumstances where an employee’s accent might be legitimately and legally career-limiting, these are few and far between. Usually customers, coworkers, and managers just need to exercise patience and seek clarification.
For more information about national origin discrimination, see the harassment page on the platform.
This Q&A does not constitute legal advice and does not address state or local law.

Kim is a results-driven HR Professional with experience from diverse industries, including but not limited to, transportation, environmental services, staffing, pharmaceutical, market research, banking, retail, software development and education non-profit. In her spare time, Kim enjoys the beautiful view from her home and being with her husband and their German shepherd, Fin.

Questions?

Vital Signs Insurance Services, Inc.
PO Box 6360
Folsom, CA 95630
Phone: (916) 496-8750
Email: [email protected]
Fax: (916) 496-8754

Job Applications Coming In

By |2024-02-07T13:09:21-08:00February 7th, 2024|Uncategorized|

Question:
We’ve identified the job candidates we’d like to interview, but we still have applications coming in. Do we need to review every application before moving forward with interviews and making a job offer?

Janelle, SHRM-CP, SHRM-PMQAnswer from Janelle, SHRM-CP, SHRM-PMQ:

The short answer is no. There’s no legal requirement to review all the applications before moving forward, and you can always return to the applicants who applied later to review them if needed. Having said that, we do recommend reviewing every application.
Doing so ensures you don’t miss out on potentially excellent candidates who might be buried in the pile. It also demonstrates a commitment to fairness and nondiscrimination in your hiring process.
If you’re concerned about a flood of applicants after interviews are already underway, you can always take down the job posting and repost it if none of the current candidates work out.
This Q&A does not constitute legal advice and does not address state or local law.

Janelle has over 19 years of HR Practitioner experience within the healthcare, logistics, and manufacturing industries. She has worked in HR roles as an HR Manager, HR Generalist, and Sr. Recruiter managing hiring, onboarding, payroll, employee relations, and staffing. Janelle holds certifications from the University of South Florida Muma College of Business and the Society for Human Resource Management.

Questions?
Vital Signs Insurance Services, Inc.
PO Box 6360
Folsom, CA 95630
Phone: (916) 496-8750
Email: [email protected]
Fax: (916) 496-8754

Background Checks For Rehires

By |2024-02-02T14:36:50-08:00February 2nd, 2024|HR News|

Question:
We’re not bound by any law requiring us to conduct background checks, but we choose to do them for all new hires. Should we also do them when we rehire an employee?

Answer from Wendy, PHR:

It’s up to you. Conducting a background check when hiring a former employee would keep the process simple and straightforward. Every exception you add to a process gives you something else to remember—and potentially forget!
That said, you could instead establish a time limit between an employee’s termination date and rehire date—90 days, for example—and if they’re rehired within that time, you wouldn’t run a background check. If you opt for this practice, consistency is key. Skipping background checks outside of this time-frame for some employees but not others could open your organization to discrimination claims.
This Q&A does not constitute legal advice and does not address state or local law.

Wendy has over 20 years of experience in HR and talent acquisition. She has been writing and talking about HR for 5 years and was an HR podcast host for 4 years. Wendy has a BA from the University of South Dakota. In her spare time, she makes artisan ice cream and volunteers with her daughter’s Girl Scout troops.

Questions?
Vital Signs Insurance Services, Inc.
PO Box 6360
Folsom, CA 95630
Phone: (916) 496-8750
Email: [email protected]
Fax: (916) 496-8754

Religious Accommodation For Employees

By |2024-01-24T11:39:27-08:00January 24th, 2024|HR News|

Question:
We’ve had a request for a religious accommodation, but I think the employee wants to get out of following the policy for other reasons. How do I determine whether a religious belief is legitimate and sincerely held?

Answer from Kyle, PHR:

Ordinarily, you should assume that an employee’s request for a religious accommodation is based on a sincerely held religious belief, observance, or practice. The definition of religion is broad and protects beliefs, observances, and practices you may not be familiar with. That said, if you have an objective basis for doubting either the religious nature of the belief or that it’s sincerely held, you can request additional supporting information. We have a Request for Religious Accommodation form on the platform you can use.
If you decide to ask for supporting documentation, don’t require that it come from a specific source, such as a clergy member or fellow congregant. A belief can be both religious and sincerely held by the employee without being shared by the leaders of the religion or all adherents to that religion.
If you intend to deny an accommodation on the basis that the belief, observance, or practice is not religious or sincerely held, we recommend that you work with legal counsel. Such a challenge can become complicated quickly.
This Q&A does not constitute legal advice and does not address state or local law.

Kyle is a professional author, editor, and researcher specializing in workplace culture, retention strategies, and employee engagement. He has previously worked with book publishers, educational institutions, magazines, news and opinion websites, nationally-known business leaders, and non-profit organizations. He has a BA in English, an MA in philosophy, and a PHR certification.

Questions?
Vital Signs Insurance Services, Inc.
PO Box 6360
Folsom, CA 95630
Phone: (916) 496-8750
Email: [email protected]
Fax: (916) 496-8754

Employees Feedback Is Valuable

By |2024-01-17T09:29:53-08:00January 17th, 2024|HR News|

Question:
How can we show employees that their feedback is heard and valued?

Answer from Wendy, PHR:

First, thank them. This lets the employee know you received their input and that you appreciate their taking the time and energy to give it. If you plan to act on the feedback and employee assistance is feasible, ask the person or people who suggested the change if they’d like to be involved in executing it. Employees who identify a problem may have ideas about the solution.
Second, when you make a change based on employee feedback, make sure all affected employees are aware that it was a motivating factor. If appropriate, give credit for the idea where it’s due. If you’re unable to make a desired change, explain why.
In short, reward feedback with appreciation, transparency, and the chance to participate in the change.
This Q&A does not constitute legal advice and does not address state or local law.

Wendy has over 20 years of experience in HR and talent acquisition. She has been writing and talking about HR for 5 years and was an HR podcast host for 4 years. Wendy has a BA from the University of South Dakota. In her spare time, she makes artisan ice cream and volunteers with her daughter’s Girl Scout troops.

Questions?
Vital Signs Insurance Services, Inc.
PO Box 6360
Folsom, CA 95630
Phone: (916) 496-8750
Email: [email protected]
Fax: (916) 496-8754

Asking Employees About Medications

By |2023-12-27T09:54:47-08:00December 27th, 2023|HR News|

Question:

Can we ask employees if they are taking any medications that may impair their abilities to do their job?

LauraAnswer from Laura, MA, SHRM-CP:

Generally, no. The Americans with Disabilities Act restricts employers from asking medical questions of employees and protects the privacy of medical information. Asking about prescription medications would fall into the category of a medical-related inquiry and should only be done if job related and consistent with business necessity. For such an inquiry to be job related and consistent with business necessity, you must have a reasonable belief, based on objective evidence, that an employee’s ability to perform essential job functions will be impaired by a medical condition or that an employee will pose a direct threat to employee or public safety because of a medical condition. A direct threat is a significant risk of substantial harm that cannot be eliminated or reduced by reasonable accommodation.
For example, an automotive repair facility could require mechanics to report when they are taking medications that may affect their ability to operate heavy machinery safely. However, they would not be able to require administrative employees to do the same.
This Q&A does not constitute legal advice and does not address state or local law.

Laura has 9 years of HR experience, spanning public- and private-sector work in the education, transit, and insurance industries. After completing a B.A. in Asian Studies from Knox College, she received her M.A. in Industrial/Organizational Psychology from University of New Haven along with graduate-level certificates in Human Resources Management and Psychology of Conflict Management. Laura enjoys fencing, baking, and cross-stitching.

Questions?
Vital Signs Insurance Services, Inc.
PO Box 6360
Folsom, CA 95630
Phone: (916) 496-8750
Email: [email protected]
Fax: (916) 496-8754

Local Minimum Wages

By |2023-12-18T16:26:18-08:00December 18th, 2023|HR News|

California Law Alert
December 16th, 2023

California Employment Law Updates for January 1

The following employment laws take effect January 1, 2024.

CANNABIS PROTECTIONS IN EMPLOYMENT
Employers with five or more employees will be prohibited from discriminating against an applicant or employee for using cannabis off-duty and away from the workplace. This includes discriminating based on a drug test that finds non-psychoactive cannabis metabolites in their system. Non-psychoactive cannabis metabolites are what’s stored in the body after THC (which causes the “high”) is metabolized. Their presence means that cannabis was consumed but doesn’t indicate that a person is currently impaired.

Additionally, employers can’t ask about an applicant’s prior use of cannabis or consider information about an applicant’s or employee’s prior cannabis use. This includes making decisions based on information revealed in their criminal history, unless doing so is allowed by state or federal law.

Employers can still make employment decisions based on drug tests that don’t screen for non-psychoactive cannabis metabolites. Employers can also continue to take steps to ensure a drug free workplace, such as prohibiting employees from having or using cannabis at work or being impaired on the job.

The law contains certain exceptions, including but not limited to, employees in building and construction, and positions for which drug testing is governed by federal or state law, a federal contract, or as a condition of receiving federal funds or licensing.

Action Items
• Review your drug screening policies to make sure they’re in compliance.
• Update any equal employment opportunity policies to include off-duty and off-premises use of cannabis.
• Ensure managers and those involved in the hiring process know that they can’t ask about or consider an applicant’s off-duty cannabis use.

REPRODUCTIVE LOSS LEAVE
Employers with five or more employees will be required to provide employees who have been employed for at least 30 days with up to five days of leave when they experience a reproductive loss.

A reproductive loss includes a failed adoption, failed surrogacy, miscarriage, stillbirth, or an unsuccessful assisted reproduction. Reproductive loss leave can be taken by any employee who would have been the parent.

Generally, the leave must be completed within three months of the loss and days can be taken intermittently. The leave can be unpaid unless the employer has an existing paid leave policy that would apply. If unpaid, employees can choose to use any available paid leave, including accrued sick leave. Reproductive loss leave is in addition to all other state leave rights and does not run concurrently with CFRA or PDL. For employees who experience multiple losses, employers can cap leave at 20 days in a 12-month period.

Action Item
• Add a reproductive loss leave policy to your employee handbook or other policy documents.

NEW NOTICE REQUIREMENT FOR NEW HIRES
All employers need to provide new employees with notice about any federal or state emergency or disaster declaration that applies to any county where the employee will perform work and that may affect their health and safety on the job, if the declaration was issued in the 30 days prior to their start date. The Department of Industrial Relations has already updated its NOTICE TO EMPLOYEE template.

SICK LEAVE REMINDER
40 is the new 24. While the accrual rate has remained unchanged (1 hour per 30 hours worked) employers must increase the amount of sick leave their employees can use each year from 24 hours or three days to 40 hours or five days. The total (rolling) accrual cap is now 80 hours or 10 days (instead of 48 hours or six days). More information is available on the platform, and the state recently released FAQs.

MINIMUM WAGES AND SALARIES
Statewide Minimum Wage
California’s minimum wage for all employers, regardless of size, will increase to $16 per hour.

Exempt Employee Minimum Salaries and Wages
The minimum salary threshold for exempt employees will increase to $1,280 per week ($66,560 per year) for employers regardless of their employee count.

The minimum hourly rate for exempt computer software employees will increase to $55.58 per hour (or an annual salary of $115,763.35).

The minimum rate for exempt licensed physicians and surgeons paid on an hourly basis will increase to $101.22 per hour.

Local Minimum Wages
The hourly minimum wage will also increase in the following cities:
Belmont: $17.35
Burlingame: $17.03
Cupertino: $17.75
Daly City: $16.62
East Palo Alto: $17
El Cerrito: $17.92
Foster City: $17
Half Moon Bay: $17.01
Hayward (25 or fewer employees): $16 (state rate)
Hayward (26 or more employees): $16.90
Los Altos: $17.75
Menlo Park: $16.70
Mountain View: $18.75
Novato (25 or fewer employees): $16.04
Novato (26–99 employees): $16.60
Novato (100 or more employees): $16.86
Oakland: $16.50
Oakland (hotels with health benefits): $17.94
Oakland (hotels without health benefits): $23.91
Palo Alto: $17.80
Petaluma: $17.45
Redwood City: $17.70
Richmond (with benefits): $16 (state rate)
Richmond (without benefits): $17.20
San Carlos: $16.87
San Diego: $16.85
San José: $17.55
San Mateo City: $17.35
San Mateo County (unincorporated areas only): $17.06
Santa Clara: $17.75
Santa Rosa: $17.45
Sonoma City (25 or fewer employees): $16.56
Sonoma City (26 or more employees): $17.60
South San Francisco: $17.25
Sunnyvale: $18.55

Questions?
Vital Signs Insurance Services, Inc.
PO Box 6360
Folsom, CA 95630
Phone: (916) 496-8750
Email: [email protected]
Fax: (916) 496-8754

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Investment Disclaimer

* Jeffry D. Proul, Registered Representative of LifeMark Securities Corp., 400 West Metro Financial Center, Rochester, NY 14623 (585) 424-5672 Member NASD/SIPC Vital Signs Insurance Services, Inc. is not affiliated with LifeMark Securities Corp. CONFIDENTIALITY NOTICE: Communications are Confidential Information of LifeMark Securities Corp. and may also be privileged.
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