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Maintaining good employee records will protect your business
By Suzanne DeVries
November 05, 2009
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| Suzanne DeVries is president and founder of Diamond Staffing Solutions Inc., one of the jewelry industry's leading placement firms and an official American Gem Society sustaining member. |
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During retail store visits, my colleagues and I routinely ask jewelers to see their company policy manuals. I have been amazed by how often we discover that they don't have one. When we ask if their employees' files are in place, I am further shocked to hear jewelers say they are "not sure."
Having certain documents in an employee's file is something that businesses are required to do by law. Moreover, going beyond the bare legal minimum early on will save business owners time and legal fees in the event of any unanticipated employee grievances should their companies ever be audited.
As a rule, companies should put a file together no later than a new hire's first day.
Every company policy must contain clear and concise written guidelines that are signed by each employee. Two copies should be made: one to keep in an employee's file and one to give to each employee for their own records. At the office, all employee records should be kept in a locked file to which only principals and key executives have access. All I-9 Employment Eligibility Verification forms must be kept in a separate locked file.
It may be helpful to divide documents into three categories: forms, payroll and policies.
Forms are documents specific to an employee and include information about responsibilities. Payroll documents include federal and state tax forms as well as documentation of payment. Policies are the documents that all employees must sign so that there are shared behavior standards, company-wide.
There are many policies that exist as a natural part of doing daily business, and then there are some that must be created.
Enacting a cell phone and text messaging policy is a particular hot button issue. In fact, Diamond Staffing Solutions now recommends a no-cell-phone policy for many jewelers.
Signed policies exist to protect both business owners and employees. Not having them protects no one.
Visit your state labor board's Web site to learn which notices must be posted in an area where they can be clearly seen and read by employees. Notices can often be printed as posters right off of the Web site, and business owners might also be able to sign up to be notified of changes in the law. Companies face a stiff fine if they are audited and these posters are not in place.
If business owners do not have the time to keep good employee records and maintain legal compliance, they should consider consulting a professional. It might be possible to hire a part-time human resources professional or take advantage of the personnel services offered by payroll companies.
Protect your interests and your time, because an employee relationship that goes bad can cost businesses time and thousands of dollars. Make the investment upfront by having the important legal forms securely on file, having well-written policies in place and posting accessible and clear posters in the necessary areas. Getting all of this done allows jewelers to concentrate on what they do best: running and managing prosperous businesses.
Forms
- Employment application
- Offer letter
- Job description
- Statement of benefits
- Commission policy
- Documented change in status (changes to title, position, responsibilities or hours)
- Reprimands
Payroll Documents (Employee-Specific Files)
- W-4 Employee's Withholding Allowance Certificate
- Employee time cards
- Direct deposit paperwork
- Payroll records
Payroll Documents (Separate File)
- I-9 Employment Eligibility Verification
- Policies
- Confidentiality agreement
- Non-compete agreement
Acknowledgement of receipt of employee handbook, which should include:
- Client-associate referral policy
- Dress code
- Inclement weather policy
- Lateness policy
- Maternity policy
- No-tolerance loss-prevention policy
- Overtime policy
- Safety handbook
- Statement of use of company property and time
- Vacation policy
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