Stick to the Basics – make sure you are performing the foundational functions correctly. This News from Nancy is based on some recent questions. Maybe its Spring cleaning, maybe is springtime – time for new growth. Either way – here a some of the basics for everyone performing HR functions.
What goes in the employee file and what do I do with everything else? An employee file ONLY has these contents per MN Statute:
- All Minnesota Wage Theft Statute Notices
- Employment Application
- Resume
- Notice of accommodation
- Warning and disciplinary actions
- Authorization for deductions or withholding of pay
- Fringe benefit information
- Leave records – recording time off
- Employment history with the employer, including salary and compensation history, job titles, dates of promotions, transfers, and other changes, attendance records, performance evaluation and retirement records
- IRS and MN Forms W-4
What should NOT go into the employee file:
- USCIS Form I-9
- Written references
- Information relating to an investigation
- Education records
- Results of employer testing
- Information relating to the employer’s salary system and staff planning
- Written comments are data of a personal nature
- Privileged information
- Any portion of a written statement by a coworker of the employee that concerns job performance or job related misconduct of the employee that discloses the identity of the coworker by name, inference or otherwise and
- Medical reports and records including reports and records that are available to the employee from a healthcare services provider pursuant to the Minnesota Health Records Act
Why do I have to have separate files for this information.
- The employee has the right to everything in their file. They can ask for copies, and you have seven days to provide them free of charge.
- The Department of Labor has a right to review the employee files. You don’t want them to misinterpret your notes for discrimination. They do not have a right to supervisor notes, test details and medical records or I-9’s.
I recommend having an electronic file for noting the good things and areas that need improvement on Excel. It is easy to make timely notes. Have a tab for each employee. My medical folders are all red – Red Cross – easy to spot and keep separate. My I9’s are in a completely separate drawer. All the above records must be kept private and locked.
How often do I need to pay someone?
MN Law states that you have to pay someone every 31 days at a minimum. If you have someone that works on a commission basis, they need to receive their commission every 90 days at a minimum.
How long is a workweek?
The workweek is 7 days. You can pick when you want it to start. For example, Sunday – Saturday. If an employee works over 40 hours (48 hours for agriculture) you must pay them overtime. Watch our upcoming Wage and Hour training coming in June.
Employee misclassification is a really hot topic
Fines for misclassification are increasing and easily avoided – if you do it right. Exempt or non-exempt employees plus independent contractors all need to be classified properly. Please let me know if you would like to have a discussion or audit around this. We are all born non-exempt and must qualify to be exempt or independent contractor.
How often should I have our handbook updated?
The first time you have your handbook evaluated and updated it may be a larger expense. After that have it reviewed annually to keep up with changing laws and the cost isn’t as hard to handle. The cost you put into your handbook will protect you from legal penalties and provide expectations – everyone gets the same message. That is also helpful for supervisors, managers, and owners to know what to do so everyone is treated the same way.
Why can’t AI create a handbook for me?
Do you want to trust your most valuable asset to someone who you don’t even know? Even though we do create and update handbooks, that’s like using a handbook from my neighbor’s cousin. They are not all the same – especially in Minnesota. If you do use AI to create your handbook – read it carefully. AI can’t determine if something is legal or not. Better yet, let us take a peek at it.
Have a safe and wonderful spring – always be kind. Nancy