HR & Benefits Solutions - HKP

1. HR and Benefits Legislative Review & Best Practice Update

2. Workforce Management HKP is your comprehensive workforce solution offering a menu of solutions from one provider. From hire to retire, HKP can assist with: Tax credits* Payroll Retirement plans Benefits Time & attendance HR consulting Benefits consulting

3. Workforce Management HKP’s workforce management solution can: Provide a greater return on investment Simplify your interface, increase efficiency and reduce errors Allow you to better manage your human capital Guard your executive information and support confidentiality procedures Minimize your risk Consolidate your entire human capital system

4. Why Does HR & Compliance Make Our Heads Spin?

5. Building Your HR Infrastructure • Outdated or no employee handbook • Undocumented performance-based terminations • Incomplete/incorrectly completed I-9s • Unnecessary retention of I-9s • Lack of position descriptions • Position descriptions not signed by employee and employer • Position descriptions are not ADA compliant • Lack of basic HR policies • Claiming ignorance to federal and state employment law • Keeping up to date on ever-changing laws

6. Employee Handbooks • Provides a basis to establish general daily expectations of employment • Defines the employment relationship • Explains the expectations of the employee and the consequences if expectations are not met • Demonstrates compliance with state and federal employment laws • Helps maintain consistency

7. Employee Handbook Tips • Ensure you address changing social media policies • Protect your confidential and proprietary information • Establish standards of conduct • Articulate leave policies • Cover harassment and discrimination • Protect the “at will” status if applicable • Take into account federal and state laws • Enforce a corrective disciplinary process • Review at least every 2-3 years; monitor changing laws continuously • Obtain signed acknowledgements from all employees

8. Governing employee conduct requires establishing a written process outlining incremental corrective action measures; along with corresponding leadership training. These are two critical components of defending wrongful termination claims. Undocumented Terminations • “He said, she said!”

9. Have “some type of” performance evaluation process? Offer training to all new and existing leaders as to how to effectively and legally manage performance? Use a progressive disciplinary process? Educate your employees/resources as to how they will be evaluated? Save time and money with consistent processes! What’s your process? • Do you…

10. Employers must complete Form I-9 for each employee hired to work in the United States after November 6, 1986. Even for one day! The Employee section must be completed no later than the first business day of employment for pay The revised form with revision date of July 17, 2017 is required to be used as of September 18, 2017 There are rigid requirements in correct completion and retention of the I-9 form. Completion of I-9s • Administered by U.S. Citizenship and Immigration Services; Audited by Immigration and Customs Enforcement

11. I-9 Facts • ICE has increased employer audits from 300 in 2008 to nearly 3,000 in 2015. • Fines are not limited to lack of having an I-9 on file. You may also be fined for incorrectly completing I-9 or error in correction of I-9s. • Many employers do not file or purge I-9s in compliance with law. You may be fined for I-9s that you have retained past the purge rules. • Many employers retain I-9s; some of which have the employee documentation attached; others which do not. Law requires that you either retain all employee documentation or no employee documentation. May be fined if inconsistent practices found!

12. Position Descriptions • What does the ADA have to do with it? • Why does it matter if they’re signed? • Employee? • Employer? • How can they protect my business?

13. Position Descriptions – Why? • Violation of the ADA may result in fines up to $55,000 for first violation; $110,000 for each subsequent violation • Frequently used to support workers’ compensation claims, unemployment claims, FLSA, ADA, discrimination laws • Essential part of fair hiring practices and promotional opportunities • Clearly sets forth expectations in essential job duties and working conditions/environment

14. Many levels of employee count results in additional compliance requirements Do you know how the NLRB affects your work environment even if union free? Do you have your employees classified correctly and are you paying in compliance with the FLSA? FLSA updates to follow State & Federal Employment Law • How knowledgeable are you in the area of state and federal employment law? PROTECT YOURSELF

15. Common Employment Law Violations • Leave administration/FMLA • Benefits administration/ERISA • Sick leave (dependent on state) • PTO/vacation pay out upon separation • Jury duty • Military accommodations • Pay practices – state/federal • Hiring practices • ACA • OSHA

16. Risk of Non-Compliance • The majority of unfair employment claims pertain to the inconsistent administration of benefits, leave, or punitive actions against employees who should be protected under state and federal employment law. • Costly • Time consuming • Hurts credibility/reputation

17. Question You Should be Asking… • Am I compliant with the FLSA?

18. U.S. Department of Labor Orders $724,000 in Back Wages to be Paid to 275 Area Employees Employers Paying the Penalty for Wage and Hour Violations Employers Jailed for Failure to Pay Back Wages to Cleaning Service Workers Be proactive, not reactive! DOL FLSA Audits on the Rise! • Actual Headlines

19. Benefits – What’s Your Strategy? • Self-Insurance Options? • QSEHRA (Qualified Small Employer Health Reimbursement Accounts) • Small employers only: under 50 FTEs per the ACA definition • Employer must offer reimbursement to all “similarly situated” employees • Reimbursement amount can be up to $412/month for single or $833 for family • Employer must fund: NO pre-tax salary reductions from employees allowed • Employees must provide proof of coverage in order for employer to reimburse • Employee Education • Recruit and Retain

20. Commonly Overlooked Benefit Compliance Items • Section 125 Plan Document creation and Annual Discrimination Testing • Annual Employee Notices • ERISA Wrap Plan Document and SPD creation • COBRA and “mini” COBRA consult and administration • Unique State Laws • HIPAA • ACA “Nonchalance”

21. Status of Trending HR News • Background checks • Employment verification/references • Sexual orientation nondiscrimination • Workplace flexibility • Skills gap – preparing for the future • Trends in HRIS technology • Electronic Onboarding & Open Enrollment • Recruiting/Talent Pipeline • Telecommuting/Teleworking

22. Contact information www.hkpayroll.com 888.556.0123 | hrconsulting@hkpayroll.com Thank you!