FACTORING BLOG

Mineral HR Questions

Managing employees is no easy task, and navigating the complexities of day-to-day operations can challenge even the most experienced HR professionals. From maintaining clear policies to handling unexpected situations and ensuring smooth communication, having the right approach in place can save time, reduce stress, and help avoid potential pitfalls. In partnership with our friends at Mineral HR, we’re tackling three common but often confusing HR questions frequently asked in the staffing industry, giving you the guidance you need to stay compliant and keep your workforce running smoothly.

This Q&A does not constitute legal advice and does not address state or local law.

How should employee files be organized?

Answered by the HR Experts
We recommend having five separate files for each employee as outlined below:

I-9 file: Keep all Form I-9s in a separate master file or three-ring binder.
Medical file: This file should contain everything related to an employee’s medical history, including health insurance enrollment forms. It’s important to separate this file because you cannot legally base personnel decisions, such as who gets promoted and who doesn’t, on an individual’s medical history. In addition, various privacy laws and the Americans with Disabilities Act (ADA) require that you keep confidential employee medical records separate from basic personnel files. The retention period will depend on the type of record.
Personnel file: This file should contain items that were a factor in the employee’s hiring and employment, in addition to items that will have any impact on their employment in the future. This includes performance reviews and corrective action records.
Payroll records file: This file should contain the employee’s W-4 and any other payroll-related documents containing the employee’s SSN or other protected information, including garnishments.
Injury file: Keep a file for any employee who is injured while on the job. This file should contain workers’ compensation claim records and injury reports, and any additional medical records pertaining to the injury. It’s okay to start this file only if an employee suffers an injury on the job.

These files should be kept in a secure location that is only accessible to those in the HR function or with a legitimate need to review the information, for instance, in locked cabinets inside a locked HR office. This information can be stored electronically if that makes more sense for your business. Just ensure that it’s well secured and backed up to prevent data loss.

There are specific requirements for storing I-9s electronically, which are probably good standards for any kind of electronic data storage.

An employee worked unauthorized overtime. Do we have to pay them time and a half for these hours?

Answered by the HR Experts
Yes. Any overtime worked by nonexempt employees must be compensated, regardless of whether the overtime was authorized. We recommend communicating with the employee about work expectations outside of their scheduled workday, making it clear that the company does not expect or permit employees to work unauthorized time and that working without permission is subject to disciplinary action.

Assuming you have a policy that requires overtime to be authorized ahead of time, you can (and should) discipline employees for working unauthorized overtime, just as you would for any other violation of your policy. An oral or written warning may suffice for the first offense. Repeated offenses may warrant further corrective action, up to and including termination.

Do I need to do anything when employees come to me to vent?

Answered by the HR Experts
It depends on what they’re venting about. If they’re complaining about conduct that might be illegal, such as harassment or threats of violence, you’ll need to investigate. This is true even if the employee asks you not to take action.

If the situation doesn’t pertain to potentially unlawful conduct, it can be helpful to ask the employee what they’re looking for. For example, ask, “Do you just need me to listen, or do you want me to do something?”.

Let the employee share their complaints and offer suggestions as to how they might be able to work it out themselves or with the assistance of their manager. If their concerns involve their manager, you may need to act as a mediator to help facilitate a conversation.

Remember, you aren’t there to solve all the employee’s problems. But by lending an empathetic ear, you can help them learn to solve issues on their own as well as build trust, so they know they can safely bring up matters that do require your direct involvement.

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Previously Featured HR Questions:

What should we include in an attendance policy?
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Generally, an attendance policy should outline your attendance expectations, the procedures your employees should follow if they’re going to be late or absent, and the consequences when your policy isn’t followed.

Your expectations should include how you define being on time and what you would consider being tardy or absent. This section of your policy might say something like, “You are expected to arrive at the workplace on time and ready to perform your job.”

The procedures section of the policy tells employees what they should do in the event of a planned or unplanned absence, when they need to arrive late or leave early, or if an emergency arises and they aren’t able to notify you ahead of time. It could include instructions on whom to notify (e.g., one’s manager) and when to notify them (e.g., two hours before an unplanned absence).

The consequences section explains what happens when employees don’t follow your policy. “Failure to comply with this policy may result in disciplinary action, up to and including termination” is a typical line. You should also note how many days of unexcused absence, or no-call no-show, will constitute voluntary resignation on the part of the employee.

An employee called out a few days ago by leaving a message with some vague information about being ill and hasn’t followed up since. Can we consider this a voluntary resignation and start the termination process?
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Answered by the HR Experts
Most likely not. There are many reasons why your employee might not have been in contact since leaving the original message, and since they mentioned illness, there’s a good chance their absence is protected by law. Potential protections come from the federal Family and Medical Leave Act (FMLA) and Americans with Disabilities Act (ADA), state-level family and medical leaves and disability protections, state or local sick leave laws, and state-paid leave programs that come with job protections.

Even if you have a job abandonment policy that says an employee will be treated as having voluntarily resigned after a certain number of days, this is not the time to use it. Since you know the absence started with a reason that may have protections, and you did receive a call on the first day, it will be safest to hold off until you have more information.

We recommend trying a variety of ways to contact the employee to find out more about why they haven’t been at work and when they expect to return. Try calling, texting, and emailing, and failing all that, send a certified letter. Document all attempts to reach the employee. If, after an extended absence with no successful contact, you decide to proceed with termination, detail your efforts to reach them in that communication. Be aware that if they finally do respond with an explanation that appears to be protected by law, you may ultimately need to restore them to their position.

If an employee runs out of paid time off, do we have to allow them to take unpaid time off?
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Answered by the HR Experts
It depends on why your employee needs the unpaid time off and what you’ve done in the past.
In some situations, such as those that would be covered by the Family and Medical Leave Act, Americans with Disabilities Act, Pregnant Workers Fairness Act, or a similar state law, the employee may be legally entitled to unpaid leave. In those cases, you would need to approve the unpaid leave at least to the extent required by the applicable laws.

In the absence of any legal requirements, if you’ve historically granted similarly situated employees unpaid time off, you should continue to do so. Inconsistency can lead to discrimination claims. (You can make a permanent change in policy and stop granting unpaid time off when it’s not required by law, but that’s the kind of policy shift you’d want to share widely, and if possible, with some advance notice.) If neither of the above situations apply, you could deny a request for unpaid time off, but be sure to let the employee know why. People appreciate transparency, especially when being told “no.”

Is there anything different we should do when terminating a remote employee?
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Answered by the HR Experts
For the most part, no. Your termination process should look much the same. However, there are a few extra steps you may need to consider.

If your employee is in a different state, follow the notice and other termination requirements for their location. For example, if your company is in Michigan, but the employee works in California, California law will apply.
Consider the employee’s time zone when scheduling the meeting.
Plan how you’ll get back any company equipment the employee has in their possession (if they’ll need to ship things back to you, have them do it during work hours on their last day, or if that’s not possible, add the time it will take into their final paycheck.
Have all termination paperwork ready to email or mail, ensure you have an accurate email or physical address for the employee, and send it by a speedy method where you can verify receipt.

When are we required to pay for trainings?
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Answered by the HR Experts
In general, time spent in job-related training is counted as time worked and must be paid. However, not every lecture, class, training program, or similar activity would qualify. If all four of the following criteria are met, you don’t need to pay the employee for the training:

The training occurs outside of the employee’s normal work hours
The training is completely voluntary (there will be no company-initiated consequences if the employee does not attend)
The training is not specifically job-related (it may be tangentially related to their job, like most continuing education, without being specific to how they do their job on a day-to-day basis or intended to train them for new job duties)
No work for the employer is performed during the training (e.g., reading or replying to emails).

For example, if a software developer wants to learn a new coding language that isn’t even used in the workplace and enrolls in a local college class that meets in the evenings after work, that wouldn’t need to be paid. On the other hand, if a graphic designer needs to learn a new piece of software because it will be used for future work projects, that would need to be paid.

What can we do to reduce turnover and retain employees?
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Answered by the HR Experts
High turnover can quickly become costly. We recommend the following practices to increase retention:

Pick the right people in the first place. Put thought and care into your recruitment and interview procedures. The more time you and other employees can spend with candidates, the more certain you’ll be that they believe in your mission, understand the challenges of the position, and want to contribute to your success.
Make sure your compensation and benefits remain competitive. This is a tall order and may squeeze your bottom line in ways that make you uncomfortable, but it’s necessary if retention is at the top of your priority list. Make it a goal to do a yearly analysis of your total compensation package to ensure it’s at least keeping up with the market. Many employers that know they can’t offer competitive pay instead offer other compelling benefits, like generous paid time off and the ability to work from home.
Provide your employees with opportunities for professional growth. Talk to them about their career goals, develop and share career paths for their roles, and offer training and educational programs for those interested.
Be appreciative. A little gratitude can go a long way, and you can show it in multiple ways—from flexibility when employees need it to a willingness to hear out ideas to employee appreciation programs. Even a simple thank you can work wonders.
Investigate why people are leaving and look for themes. Engagement surveys, stay interviews, and exit interviews are useful tools for gauging employee satisfaction and understanding common pain points and frustrations.
Create an environment people enjoy, one that encourages healthy boundaries between work and personal time, roots out any bias, discrimination, or toxic behaviors, and facilitates opportunities for employees to socialize and form friendships.