HOW SMALL BUSINESSES CAN KEEP UP WITH HR LAWS

As a Small Business Owner or Manager there is so much to know and so much to do. It can be overwhelming. There are local, state and federal regulations regarding everything imaginable, including licenses, taxes, accounting, environment, zoning, human resources and more. As soon as you hire your first employee, it’s critical that you discover how you can keep up with HR laws. Ignorance is never an excuse and can often lead to a loss of money (fines, penalties, etc.) but it can also harm your reputation and effect your ability to attract good employees AND customers.

I’d like to share why this topic is fresh on my mind. . .

A young lady that I know recently got in touch with me. She asked about the names of businesses that were hiring because she was just fired. We had just had a conversation a couple of weeks earlier about businesses that were hiring but she couldn’t remember the business names. She was upset that she lost her job and just needed to find another one as quick as possible. When she shared the circumstances I was shocked. She had just recently started working at this business. Prior to starting the job she had applied to enroll in a Medical Assistant program at the local college. As soon as she found out she was accepted, she told her supervisor that she would appreciate a reduction in hours when school started. School wasn’t going to start for almost 2 months so the employer had plenty of time to decide if they could accommodate a reduction in hours or not. Well, after her shift the day she told her supervisor about starting school, she received a text message from the business owner. This was the text she received:

“Hey hun . . . I just got off the phone with Beth* and she has another girl ready to work more hours for sure. I’m going to start training immediately so she said we’re going to stop your training as of now . . . she said she will have your paycheck on Monday.” *(Beth isn’t the manger’s real name; I don’t want to embarrass this employer by providing any details that will make it obvious to anyone living in my area who it is.) By the way, this happened on a Saturday.

So, there are a few things that disturb me:

She was fired via text. That is so impersonal and unprofessional.
The text was so odd. It starts with “Hey hun.” And, it shows no compassion for the employee. Just think of how much better the employee would have felt if the message said something like “Hi! Beth just told me you were accepted in the college program you were hoping for. Congratulations! While we wish we could accommodate your request for a change in hours, we are unable to do so. Therefore, ____ will be your last day.”
Employment laws were not followed. In California, where this business is located, an employee who is fired or laid off is entitled to a final paycheck at the time of termination or layoff. The employee is entitled to a waiting time penalty of one day’s pay for each day the employer is late, up to 30 days. This business is in the foodservice industry, has two locations, and several employees. It’s surprising they didn’t know better.

Let me be clear. The employer had every right to terminate the employee’s employment. It’s up to a business to determine what their needs are and when they need employees to work. Not being able to accommodate a reduction in hours may not even be the real reason she was terminated. Maybe the employee wasn’t learning quick enough. Maybe she was making mistakes. Maybe her personality didn’t gel with the other employees. And, sure the employer should show more professionalism when terminating someone. Buy, the REAL ISSUE is that the employer didn’t follow California law regarding providing the paycheck at the time of termination. There’s no excuse for not following laws.

So, here is how small businesses can keep up with HR laws:

Chamber of Commerce
Join your local Chamber of Commerce and/or access information at your state’s Chamber of Commerce. At the local level, Chambers often have special workshops or guest speakers on topics relevant to small businesses, such as Human Resources. On a state level, Chambers often have labor law posters and policy guidelines. For example, the California Chamber of Commerce has a great employee handbook resource to ensure businesses comply with all related laws and regulations. They also make available other information and resources such as HR-related forms. If you’re a California Business, check out https://www.calchamber.com.
NOLO
Nolo contains articles and information about many legal topics including do-it-yourself forms, documents, books and software. Check out their employment law section here: https://www.nolo.com/legal-encyclopedia/hr-employment-law
Government Labor Law Offices
Both the Federal and State Departments of Labor provide information online. So check out the U.S. Department of Labor here: https://www.dol.gov/. Here’s a list of State labor department websites: https://www.dol.gov/whd/contacts/state_of.htm. Many of these agencies have email newsletters you can subscribe to in order to get relevant updates.
HR Professionals
Almost every community has businesses that specialize in Human Resources. They often provide advice, guidance, training and more. Some also offer payroll services. You can find these professionals through a number of ways including networking with other businesses as well as the Yellow Pages (yes, people still use them) or online searches.
The Society of Human Resource Management
When I worked in HR at a large printing company, I attended some of their classes, which were always outstanding. Now, they have many online resources as well including books, software, online workshops and more. Learn more here: https://www.shrm.org.
Small Business Development Center (SBDC)
Local Small Business Development Centers provide assistance to small businesses as well those planning to start businesses. Many offer consulting and classes on various HR topics. To find the nearest SBDC, visit https://www.sba.gov/tools/local-assistance/sbdc.

I hope you find this list useful. Remember that if you decide to operate a business it’s up to you to seek out the information you need to ensure you’re complying with all regulations and laws. Protect your investment and your reputation by seeking out the information and guidance you need.

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And, don’t forget to include your comments or questions below!

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Sondra Kirtley

Sondra Kirtley, MBA, is an entrepreneur who owns and operates a retail and service business in Eureka, California. Known for her helpful nature and small business expertise, Sondra founded SmallBizpathway.com to share tips and experiences with other small business owners.