businessman sick and sleeping on home wicker bench with newspaper over head

TX: Austin Passes Earned Sick Time Ordinance

Employees Earn One Hour of Earned Sick Time for Every 30 Hours Worked

The City of Austin has passed an earned sick time ordinance. Highlights of the ordinance are presented below.

Covered Employers and Employees

All private employers are generally covered by the ordinance. To be eligible for earned sick time, employees must work in Austin for an employer (including work performed through the services of a temporary or employment agency) for pay for at least 80 hours in a calendar year.

Accrual and Use

An employer must grant an employee one hour of earned sick time for every 30 hours worked in Austin. Employers are not required to allow employees to accrue more than the yearly cap of earned sick time. The yearly cap depends on employer size, as follows:

  • For small employers (no more than 15 employees at any time in the preceding 12 months, excluding family members), the yearly cap is 48 hours of earned sick time per year.
  • For medium or large employers (more than 15 employees at any time in the preceding 12 months, excluding family members), the yearly cap is 64 hours of earned sick time per year.

An employee may request earned sick time for an absence from scheduled work time caused by certain events (§ D). However, the ordinance does not require any employer to allow an employee to utilize earned sick time on more than 8 calendar days in a given calendar year.

Employer Notice and Effective Dates

Employers must display a sign describing the requirements of the ordinance in at least English and Spanish in a conspicuous place (or places) where employee notices are customarily posted.

An employer that provides an employee handbook to its employees must include in the handbook notice of employee rights and remedies under the ordinance. Also, at least monthly, an employer must provide each employee with a statement (electronically or in writing) showing the amount of the employee’s available earned sick time.

The ordinance is expected to take effect on October 1, 2018, pending the mayor’s signature. However, for an employer with no more than 5 employees at any time in the preceding 12 months (excluding family members), the ordinance is not effective until October 1, 2020. Click here for additional details.

Note: Certain provisions of the ordinance may be subject to change upon final approval by the mayor. Stay tuned for additional updates regarding the ordinance.

hr woman at laptop in office

Recordkeeping

OSHA’s recordkeeping rule requires employers to record and report certain work-related fatalities, injuries and illnesses, and provides employers a system for tracking workplace incidents.

Which recordkeeping requirements apply to me?

Reporting fatalities and catastrophes: Under a final rule, all employers covered by the Occupational Safety and Health Act of 1970 (P.L. 91-596) must notify OSHA of all work-related fatalities within 8 hours, and of all work-related in-patient hospitalizations, amputations, or losses of an eye within 24 hours. Keeping injury and illness records: The final rule also updated the list of industries that, due to relatively low occupational injury and illness rates, are exempt from the requirement to routinely keep injury and illness records. The rule maintains the exemption for any employer with 10 or fewer employees—regardless of its industry classification—from the requirement to routinely keep records of worker injuries and illnesses.

In addition, the following establishments are now required to electronically submit information from their OSHA recordkeeping forms to OSHA:

Click here for more information on the electronic recordkeeping requirement.

How can I tell if I am exempt?

OSHA has released a list of industries that, due to relatively low occupational injury and illness rates, are exempt from the requirement to routinely keep injury and illness records.

smiling small business owners

New Small Business Health Care Tax Credit Form Released

Form Used by Eligible Employers to Claim Credit for 2017 Tax Year

The IRS has released Form 8941, Credit for Small Employer Health Insurance Premiums, and related instructions, for tax year 2017. Eligible small employers use this form to figure the credit for health insurance premiums under the Small Business Health Care Tax Credit.

The Small Business Health Care Tax Credit is designed to encourage small businesses and tax-exempt employers to offer health insurance coverage to their employees. Among other requirements, an employer may be eligible for the credit for tax year 2017 if:

  • It had fewer than 25 full-time equivalent employees for the tax year;
  • It paid at least 50% of the premium cost for single health care coverage for each employee;
  • The average annual wages of its employees for the year were less than $53,000; and
  • It paid premiums on behalf of employees enrolled in a qualified health plan offered through a Small Business Health Options Program (SHOP) Marketplace (or qualifies for an exception to this requirement).

Note: Employers in Hawaii cannot claim this credit for insurance premiums paid for health plan years beginning after 2016.

Click here to review Form 8941 and its instructions.

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Job Analysis & Description: Key Tools In The Employment Process

The employees you hire are absolutely critical to your company’s success. With so much at stake, it is important to develop a job analysis and job description for each position in your company to ensure you are hiring and retaining the best possible people.

Job Analysis

The job analysis covers such key areas as the purpose or reason the job exists, job location or setting, and qualifications in terms of skills and knowledge necessary to complete the tasks. Once you have completed your job analysis, you are ready to develop your job description, which outlines a position’s responsibilities and requirements.

Job Description

A well-developed job description will be a key resource to help you review employee performance, select employees, develop recruitment advertising, and make sure your compensation is competitive so you can attract the best talent. Be sure in developing your analysis and description that you have adhered to all federal equal employment opportunity laws and applicable state discrimination laws. For more on writing a disability-compliant job description, please click here. If you have any questions, please consult an employment law attorney who knows your state laws.

The following are benefits associated with developing the job analysis and job description:

  • Providing essential job-related information necessary to make decisions on whether to hire additional staff.
  • Providing an opportunity to clearly communicate a job’s responsibilities and functions to employees and management.
  • Sharpening the focus on job functions, responsibilities, and skills needed to meet the company’s business goals.
  • Playing a key role in performance reviews.
  • Helping evaluate compensation levels based on job requirements.
  • Establishing standards and requirements necessary to the selection process.
  • Identifying job functions that will require additional training.
  • Identifying health and safety risks and working conditions that may require special training.
man getting ready for an interview wearing a suit

Attracting Quality Candidates to Your Company

You need skilled, dedicated employees to build your business. How do you attract the human capital that will position your business for growth and success?

In many ways, it’s about presenting your business so that candidates will get excited and enthusiastic at the prospect of working for your company. Of course, offering competitive compensation and benefits is always important, but there is much more to the art of positioning your company as the best choice for your top candidates. The following are additional factors that will enhance your company’s attractiveness:

Compensation/Benefits Package

  • Competitive salary
  • Bonus/incentive compensation
  • Healthcare and life insurance benefits
  • Tax-saving retirement plans, i.e. 401(k)
  • Other types of benefits such as childcare assistance and gym membership

Note: When making decisions regarding compensation, it is important to consider whether the employee will be exempt or non-exempt under the federal Fair Labor Standards Act (FLSA). Non-exempt employees are entitled to certain protections (including minimum wage and overtime pay) under the FLSA.

Position-Related Benefits

  • Flexible work arrangements
  • Telecommuting
  • Location and position match to candidate’s individual needs

Support and Training

  • Career-enhancing courses
  • Certifications
  • Career growth and potential

Company Brand

  • Positive, well-known company brand
  • Industry-recognized, successful company

Company Environment

  • Friendly, organized workplace environment
  • Company culture
  • Values and environment

Interview Process

  • Straightforward, friendly, professional interview process

Competitive Analysis

  • Evaluate your competition in the area and strategically plan to offer a package of benefits that will enable you to attract the best talent

Employee Recruiting Success

The key to successful recruiting of new employees is the development of a systematic process for developing job descriptions, generating a pool of candidates, and selecting the right candidate. The following are the major steps involved:

  • Develop a job analysis to identify skills, knowledge, and abilities for each position.
  • Create your job description and selection criteria based on the most current information available and modify when necessary.
  • Develop your recruitment plan in terms of promoting the job opening and generating a pool of candidates.
  • Develop a process for interviewing candidates.
  • Create a process for selecting the best candidates.

Tips for Recruitment Success

  • Before recruiting, consider the possibility of how to accomplish the work without adding staff. Areas to consider include: improve efficiency and divide or allocate additional responsibilities to existing staff.
  • Organize a planning meeting with the hiring manager or relevant staff to determine needs, timeline, and any other recruitment issues.
  • Decide whether your budget will allow for the hiring of a new employee to fill the position.
  • Develop job criteria to help you in the selection process; try to stay within 6-8 criteria.
  • Consider structuring an interview, i.e., develop a set group of questions and determine the best answers with specific scoring before the interview process begins.
  • Base your evaluation of candidates more on skills and job knowledge rather than personality. Many times, skills are the critical factors that consistently predict job success.
  • Be sure to avoid any discriminatory inquiries or statements during the interviewing/recruitment process.

Which employees should be paid overtime, and what are some basic rules to go by?

While many employers require that their employees have overtime approved prior to actually working it, if an employee does not receive prior approval, the employer is still required to pay the overtime. The employer may choose to discipline the employee for not following the correct procedure, but the overtime hours must be paid. The Fair Labor Standards Act (FLSA) states that nonexempt employees must be paid time and one-half their regular rate of pay for all hours worked over 40 in a seven-day workweek. Nonexempt employees are defined under the FLSA, and appropriate classification of employees is critical. In accordance with the FLSA, overtime pay may not be calculated over a two-week pay period to allow for more flexible scheduling.

Example: John works full time at Pet Mania and his hourly rate of pay is $8.75. Someone calls in sick on John’s day off, so he works an extra eight hours. For the week, John will be paid for his regular hours (8.75 x 40) as well as for the extra hours he put in (8.75 x 1.5 x 8). Therefore, rather than receiving $350 of pre-tax income for the week, John will receive $455 of pre-tax income because of his overtime pay.

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