Last month’s blog about the employer-employee Facebook saga scored one for employees, but the latest installment gives the edge to employers.  A recent case heard in a Georgia federal appeals court ruled that employees can be fired over their social-networking photos.

Tiffany Marshall, a Savannah probationary firefighter, lost her job over her Myspace photos.  These images featured Marshall and her coworkers in uniform, as well as several semi-clothed photos of Marshall, including one showing her bare backside.  An anonymous caller alerted Marshall’s supervisors to the photos.  Investigation found that Marshall had violated multiple Savannah Fire Department rules and regulations, particularly the section on displaying “unbecoming conduct” in her private life that discredited the department.  In response to the photos, the department gave Marshall a verbal reprimand and issued a general order reminding employees that department photos could not be used on personal websites without the fire chief’s express permission.

Marshall’s response to the reprimand led to her termination.  After she allegedly became defensive and combative, contending she’d been singled out as a female because male firefighters had not been disciplined for similar photos on their websites, she was fired for insubordination.  Marshall then sued for gender discrimination.  The court, which found no evidence of discrimination or violation of First Amendment free speech rights, dismissed her case.

What does this decision mean for employers?  A solid social media policy may be enforceable in court.  To be effective, the policy should clearly address work-related images and social postings, and disclose the employer’s right to review such media for compliance with employer regulations.  While drafting a policy, employers should remember that the National Labor Relations Act protects employees’ rights to discuss workplace activities.  Bottom line: employees’ social networking posts can’t be silenced, but can be guided by a carefully worded social media policy.

According to a CNN report, Americans working in a claustrophobia-inducing cubicle have one more thing to complain about: shrinking cubicle size.

The average worker’s office space has dwindled 15 square feet since 1994, down to a cozy 75 square feet in 2010.  And it’s not just the everyday workers who are feeling the squeeze—senior workers’ office space shrunk 19 feet over the same period.  Everyone but executive management, who enjoyed an increase in office space, has to do more work with less space.

Or are they?

What popularized the cubicle in the 1960s was its functional, modular office space without the construction required to build walled offices.  In the past, cubicle size has had to accommodate the latest office technology, such as bulky telephones, typewriters, and desktop computers.  Today, that technology is slender and sleek, such as flat-screen monitors, laptops, iPads, and Blackberries—and more important, that technology is mobile.

Mobile technology replaces the need for workers to be chained to their desks.  Instead, workers can telecommute or work from different places in the office, as in the open-space seating model found at companies such as Facebook and Intel.  This open-space model is becoming more popular thanks to its team-oriented setup and efficient use of work space.  Due to meetings, travel, shifts, or personal leave, not all work space is required at all times, so it makes sense to have fewer and unassigned work stations.

While some employees appreciate this modern, flexible approach to office space, other employees reject the approach’s irregularity, close quarters, and lack of privacy.  Since employees spend half their days at work, it’s important their office environment works for them to foster comfort and productivity.  But just as office spaces come in all shapes and sizes, so do employees, so not every model will suit every employee’s personality or work style.

Does that mean private offices are on the verge of extinction?  Not if SAS, a North Carolina business intelligence software company, is any indication.  For the last two years, the company was named Fortune magazine’s best place to work.  The kicker?  SAS gives almost all its employees private offices.

It’s Valentine’s Day and love is in the air.  If you’re in the office today, you’re likely to see coworkers receiving heart-shaped boxes of chocolates and lavish bouquets of lilies from their loved ones.  But what if such a display of affection occurs between coworkers?

Workplace relationships can pose a wealth of potential problems, from discrimination to sexual harassment.  These issues can be especially complicated for businesses that don’t clearly address workplace relationships in their employee handbooks.  If it’s too late to set policy amidst burgeoning love, supervisors and HR representatives will have to rely on their common sense to handle workplace relationships.  To make that process easier, remember to PREP by being:

Professional: When talking to employees, keep comments business related by addressing productivity, performance, and professional conduct.  Don’t discuss anything personal, and remember that any personal information confided in you should be kept strictly confidential.

Reasonable: Be reasonable about the demands placed on your employees.  They spend a lot of time together, which can naturally foster closeness.  Without a written policy to address workplace relationships, your response can only extend so far.  You can’t ask employees not to date, and even if you could, more problems could be created by enforcing unrealistic rules.

Equitable: As a matter of good HR practice, it’s important to treat all employees (and all workplace relationships) the same.  This applies even if the relationship involves an extramarital affair.

Proactive: After a relationship problem arises, it’s too late to implement a formal company policy, so don’t attempt enforcement beyond what federal, state, or local laws require.  Instead, talk with management about establishing a written policy to address workplace relationships.  A clear policy will be the best way to manage future workplace relationship issues.

With or without a formal policy, when a workplace relationship ends, things could get messy for both the former couple and the HR Department.  What was once welcome personal attention could now be considered unwelcome sexual harassment.  During the relationship, it may have been common for one partner to frequent the other’s desk to chat, but that chat may now make the other partner uncomfortable.  If left unaddressed, this unwanted conduct could easily snowball into a sexual harassment issue.

That’s why it’s best to catch these issues early.  As an HR representative, start by sitting down separately with each employee to clarify what professional behavior means to them and to your business.  Outlining professional standards may be enough to stop the unwanted conduct, but if the behavior continues, these conversations are a good starting point for potential disciplinary action.  Remember, everything should be documented, from the complaint to the sit-down conversations, to create a solid base for future action.  It’s important to take these issues seriously as professional matters and not just private conflicts.

Times are looking up for the once-struggling American auto industry, which means good news—and shared profits—for industry employees.

Last month, Ford Motor Co. paid $5,000 in profit sharing to each of its hourly workers, which was more than its contract with the labor union required.  And though Chrysler Group LLC did not make any money last year, the company still paid $750 to each of its hourly workers to thank them for standing by during recovery efforts.  Following suit, General Motors Co. is poised to pay each of its 45,000 hourly workers at least $3,000 in profit sharing.  This will mark GM’s largest ever payout, crushing 1999’s previous record of $1,775.

GM’s move comes as 2010 saw the company solidly back in the black for the first time since 2004, and just one year after a highly publicized $50 billion government bailout.  In those darker days, GM was forced to restructure by closing domestic factories and slicing more than 20,000 jobs, including much of its white-collar workforce.  Moving into the future, GM executives have expressed interest in compensating hourly workers according to their performance, much like the way salaried workers are compensated.  It should also be noted that salaried workers will not be receiving across-the-board raises.

Your business’ productivity could suffer because employees are chaining themselves to their desks.  But why are employees spending so many days at work and shunning the personal leave they once relished?  New studies show employees are afraid to—or genuinely unable to—step away from their desks.  Even a nasty head cold or the beckoning of a Caribbean vacation won’t unlock those chains.

As for the head cold, a recent CareerBuilder survey found 72 percent of workers report for work when they’re legitimately sick.  Most respondents (55 percent) do this because they feel guilty about missing work.  While this seemingly demonstrates amazing loyalty, how loyal is it to show up to spread germs to healthy coworkers?  Furthermore, does an office full of runny-nosed people slumped at their desks promote productivity?

And then there’s that Caribbean vacation.  A Right Management poll found 46 percent of workers didn’t use all their vacation time in 2010.  Workers either couldn’t get away from their desks or felt like they couldn’t get away to enjoy their annual vacations.

Whatever the case, employees are spending more days at their desks.  With so many businesses short staffed, with more duties falling to fewer employees, taking personal time is a legitimate concern for many workers.  Employees also worry that if they miss work, even for a day or two, their employers will realize either the worker or the position isn’t vital.  Employees are afraid to step away because their jobs may not be there when they come back.

If your employees aren’t taking the personal time they need, they’re at risk for employee burnout.  Workers who don’t feel like they can get a break from work, either to get healthy or to have fun, are more likely to suffer persistently high stress levels.  In turn, high stress levels can lead to employee turnover, which can quickly have your business flipping through job applications.  So what to do with employees who won’t unlock that desk chain?

Hand them the keys.  Now, more than ever, it’s important to tell employees it’s OK to miss work—and it needs to genuinely be OK.  Remind employees that their jobs will be waiting when they come back, and then train coworkers to fill in for sick or vacationing employees.  At the end of the day, employees able to take time off work will be healthier and happier, and will respond with increased loyalty and productivity.

If your employee handbook was last updated in the age of high hair and parachute pants, it lacks key legislative changes such as the Americans With Disabilities Act, the Family and Medical Leave Act, and the Polygraph Protection Act.  Relying on an out-of-date handbook is a surefire way to invite litigation!

Your HR team should continually review the handbook for necessary updates.  Employment law is constantly changing, so your HR team should check new laws against your employee handbook’s policies.  Your HR team should also confirm handbook policies match actual practices.  The last thing anyone wants is to be cornered by an employee armed with a handbook offering six weeks’ vacation, when current company policy only offers four.

Having an up-to-date handbook provides many benefits beyond avoiding uncomfortable confrontations.  Not only does the handbook provide guidance to employees and supervisors, but it also establishes consistent policies important to risk management.  Consistent policies also ensure a more harmonious work environment, since everyone knows what to expect.

If it’s time to update your employee handbook, consider the following steps:

1. Regularly review the handbook to ensure the most current policies.
2. Have an attorney review the handbook at each phase.
3. Implement a plan to address policy updates and how to communicate them to everyone in the business.
4. Train management staff to consistently follow handbook policy.
5. Record all updates and changes in a log.

Check back soon for Parts Two and Three of our Employee Handbook series!

It’s 2011, and with a new year brings a new way to steer your small business toward success!  One strategy you might not have considered: enlisting a professional employer organization (PEO) like Global Human Resources Outsourcing to take care of your business’ Human Resources needs.  By partnering with a PEO like GHRO, your business will benefit from a skilled and efficient Human Resources team at a fraction of the cost of maintaining an internal HR department.

So what can GHRO do for your business?  Our experienced specialists provide all the services of complete HR and payroll departments.  We’ll act as your personal staffing agency; start to finish, from developing a customized recruitment strategy, to screening potential candidates, to assisting with employee selection and negotiations.  Additionally, we’ll function as your payroll department, keeping abreast of the latest payroll laws and regulations.  We’ll also act as HR consultants and risk managers, monitoring safety and workers’ compensation law, government compliance, and employee benefits.  We can also help you establish an employee wellness plan, an employee handbook, and other strategies to best fit your business’ unique needs and goals.  With GHRO, you can efficiently outsource the employee relations that can stress your business’ time and budget.

With GHRO on your side, you’ll be gaining a trusted business advisor, just like your CPA or attorney.  So let us assume the risks and responsibilities of maintaining your employees while you concentrate on your core business.  We have a package to meet the needs of any small business.  Contact us today to see how your business can benefit from GHRO!

Ah, December—a busy and tumultuous time for many businesses . . . a time of holiday office parties, secret Santa exchanges, and most important to many—time off to spend with family and friends.  When December rolls around and employees are itching to clock out, does your company’s holiday pay policy look more like It’s a Wonderful Life or does it look more like How the Grinch Stole Christmas? Much of how your company shapes its policy will depend on the needs of the business (and of course, the holiday spirit!), but when it comes to legal requirements for holiday pay, this employer’s guide to common questions and answers can help.

Q: Must employees get paid time off for nationally recognized holidays?

A: No.  Federal law doesn’t require employers to provide holiday time off, paid or unpaid.

Q: What about accommodating a religious holiday?

A: In short, yes, employers must accommodate their employees’ religious practices unless the business would suffer an undue hardship.

What is reasonable accommodation?  Allowing an employee to use a floating holiday, a vacation day, or unpaid time off are all reasonable ways to accommodate religious observances.

Q: Must employees be paid for employer-provided holiday time off?

A: This answer depends on the employee’s classification.  Employers are not required to pay hourly employees for holiday time off; employees must only be paid for time they actually worked.  On the other hand, employers are required to pay salaried employees who work without regard to overtime for holiday time off if they worked any hours in the holiday week.

Q: Must paid time off be included in determining an employee’s entitlement to overtime?

A: No.  Employer-provided paid holiday hours are not required to count toward an employee’s hours worked ,for the purposes of determining overtime eligibility.  Typically, an employee must work 40 hours in a week to become eligible for overtime.  This may be overridden, however, by collective bargaining agreements.

Q: Can conditions be attached to holiday pay?

A: Yes, but those conditions should always be in writing.  As examples, an employer may prorate holiday pay for part-time employees or may require a certain amount of service time before an employee becomes eligible for holiday pay.

Q: If an employee works a holiday, must they get premium pay?

A: While a common practice (and a kind gesture) to pay a premium to employees who work holidays, it is not a legal requirement.

Q: Must the same holiday benefits be extended to all employees?

A: No, as long as any differences are not a result of potential discrimination, such as age or gender.  Employers can, for instance, grant holiday pay to full-time employees only, or to office workers instead of field workers.

Q: What happens if a holiday falls on an employee’s regular day off or on a non-business day?

A: No legal requirement governs this area; however, a popular practice is to allow employees to take another day off during that pay period.  This is typically seen when holidays like Christmas fall on a Sunday and employees are given the following Monday off.

When it comes to managing your company’s payroll services, GHRO can help!  Our seasoned professionals have years of experience in Human Resources and can help you develop the best policies for you and your employees.  For more information about how GHRO can meet your business needs, visit our website.

Everyone’s favorite federal organization, the IRS, recently released guidelines to help business owners distinguish employees from independent contractors.   The IRS is following up these guidelines with random audits of employee classification.  Sure, classifying an independent contractor can save your business money in taxes, overtime, and workers’ compensation, but if the IRS finds the contractor should actually be an employee, that business will face stiff penalties.  To avoid this costly and all-too-common mistake, remember these tips the IRS wants you to know about classifying employees.

1.  The IRS uses three characteristics to determine the relationship between businesses and workers: behavioral control, financial control, and type of relationship.  All of these factors will affect whether a worker is rightly an employee or an independent contractor.  If a business has behavioral control, it has the right to direct or control how a worker performs the work, via instructions, training, or other methods.  If a business has financial control, it has the right to direct or control the financial and business aspects of the worker’s job.  Finally, the IRS examines the type of relationship, or how a worker and the business owner perceive their relationship.

2.  If you, the business owner, have the right to control or direct the work to be performed and also how the work will be performed, then your workers are most likely employees.

3.  If you, the business owner, can direct or control only the result of the work to be performed—and not how that result will be achieved—then your workers are most likely independent contractors.

4.  If you have misclassified workers as independent contractors, you may face a hefty bill come tax time.  In addition, the IRS can assess penalties for failure to file required tax forms and pay employment taxes.

5.  If any doubt remains whether a worker should be an employee or an independent contractor, both employers and workers can file IRS Form SS-8: Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, which lets the IRS make the classification call.

“Employment law.” If those words sent a shiver down your spine, you’re not alone. You have so much to think about to keep your business running at its best, the last thing you want bogging you down is employment law! Employment law is complicated, confusing, and ever-changing—and unfortunately, it’s critical to you and your employees that it be followed to the letter. To help you out, GHRO has compiled a list of five common workplace violations you’ll want to look out for.

1. Unpaid or Incorrect Overtime Pay

According to the Fair Labor Standards Act (FLSA), all work over the employee’s regular 40-hour workweek must be paid at time and a half. Note, California’s overtime laws are based not only on a 40-hour workweek, but also an 8-hour workday (except for certain employees on a modified work schedule, such as a 4/10). Any work performed in excess of eight hours in one workday is considered overtime, paid at time and a half, as well as the first eight hours worked on the seventh day of work in any one workweek. Similarly, work performed in excess of 12 hours in one workday shall be paid at double-time, as well as any work performed beyond eight hours on the seventh day of work in any one workweek.

Compensatory time may be granted instead of overtime wages, but it must be paid at the same rate: 150 percent.

Pitfall: If your business requires overtime to be preapproved, even if a non-exempt employee works “unauthorized” overtime, it must still be reported.

2. Minimum Wage Violations

As of July 24, 2009, federal minimum wage is $7.25 per hour. Many states have their own minimum wage laws; current minimum wage in California is $8 an hour. If a discrepancy exists between federal and state rates, the higher rate prevails. Under certain circumstances, minimum wage exceptions apply to special job groups, including tipped employees, full-time students, and disabled workers.

3. Unpaid Vacation Time

Employers are not legally required to pay employees for vacation time; however, if employers choose to provide paid vacation time, any accrued vacation time becomes part of an employee’s compensation package. That means accrued time must be paid out when an employee separates from the employer, whether through resignation or termination.

4. “Use It or Lose It” Vacation Time Policies

Some employers have adopted a “use it or lose it” vacation time policy, where if employees don’t use all of their accrued vacation during the calendar year, they will lose that time once the new year starts. In some states, “use it or lose it” vacation policies are unlawful.

5. Unpaid Compensable Time

Paid work time extends to more than just an employee’s job duties. If an employee spends time changing into a uniform, performing stock inventories, or setting up and cleaning a work area, that time is compensable. An employee is also entitled to wages for extra hours worked, such as working through lunch break, even if the employer didn’t require it.

Employment law has so many fine details, it’s tough to remember them all and implement them just right. One mistake can mean disaster! If employment law is getting you down, the Human Resources specialists at GHRO can help. Our professional staff stays on top of federal, state, and local employment regulations so you don’t have to! We’ll teach you the best way to adapt employment regulations to your business goals. Visit our website today to see how GHRO’s services can work with your business.