When hiring a new employee you should evaluate what information is crucial to maintain on your employees. You may want to consider consulting a Seattle business attorney, or more specifically a Seattle employment attorney or Washington employment attorney for the exact legal information needed. The tables below are an example of the kind of information you need in your employees' personnel files. Much of this information and certain documents are required by the Internal Revenue service (IRS), Department of Labor (DOL) and State Agencies. Keep in mind that state regulations vary and being in compliance with state laws is critical to reducing any exposure you may have as an employer. For that reason, seeking the legal advice of a Seattle employment attorney or Washington employment attorney for detailed state (and local) regulations is prudent. This should help you avoid any potential wage and hour disputes with employees.
Employee Master File
Employee Data
' Name (match with social security card)
' Address (with Zip code and apartment number)
' Sex
' Date of birth
' Work location
' Social security number
' Company-assigned employee number
' Occupation/classification
' State where employee works
Employment/Wage and Hour Data
' Hire date/time
' Termination date
' Payment date
' Exempt/nonexempt status per the FLSA (See additional comments below)
' Regular rate of pay
' Additions to and deductions from pay
' Shift differential or bonus
' Frequency of payment/pay period
' Hours worked per day
' Hours worked per week
' Workweek
' Straight time hours/pay
' Overtime hours/pay
' Tipped wages
' Form 4070 Employee's Report of Tips to Employer
' Amount of Tip credit taken
Tax and Payroll Data
' Form W4 ' Employers Allowance Certificate
' State withholding allowance certificate, if state does not accept the federal Form W-4
' Local withholding allowance certificate or certificates of residence or non-residence. If required by the local jurisdiction where the work is performed or the employee resides
' Additional withholding requested
' Form I-9, Employment Eligibility Verification.
' Filing Status
' Exempt from withholding
As noted above, the classification of employees as exempt or non exempt is an important business decision that can have far reaching consequences if an error is inadvertently made in this area. The job title of an employee is not nearly as relevant as those duties or job responsibilities performed by the employee. Therefore, it is recommended that you familiarize yourself with the Federal Labor Standards Act to determine whether the various positions at your company will be/are subject to overtime pay. If you are not clear, it is strongly suggested that you contact a Seattle business attorney experienced in employment law and seek appropriate legal advice. There are many Seattle law firms that can provide the guidance you need to insure your company's compliance with the FLSA, thus avoiding potential wage and hour disputes with your employees.
Although not specifically mentioned above in our tables of information, one of the most valuable tools a business can implement is the employee handbook. While it is not a federal or state required employee document, an employee handbook is an outstanding way to clearly explain the employment rules and policies as they relate to your company. Employee handbooks promote consistency in the administration of a company's HR policies and procedures. They act as a summarized version setting forth the company's expectations as well as what the employees can expect from their employer. An employee handbook facilitates stronger communication between the company and its employees and it makes a positive first impression on newly hired employees.
While the employee handbook does present many benefits to your Seattle business, including legal protection if an employee attempts to file an employment claim against your business, there are a few important things to keep in mind.
1. There may be organizational, local, or state guidelines that could affect the legality of your handbook. It is wise to seek the legal advice of a Seattle business attorney to verify your presentation of any state specific regulations as well as to seek out any relevant provisions that you were unaware of and should include in the content of your handbook. An experienced Seattle employment attorney would be an invaluable resource in this area.
2. Once you document these policies and procedures in your employee handbook, it is critical your business adhere to them. The legal system views the contents of your distributed employee handbook in the same fashion that they approach federal and state regulations. If you do not feel your business is in a position to consistently apply a policy or procedure as outlined in your handbook, then do not include it there.
3. While the specific details of a company's employee handbook will vary depending upon the industry, your marketplace, the complexity of your organization, the company's size and of course your state location there are a few items that should be included 'at a minimum'. They are: (1) Statement/section addressing the 'at-will' employment relationship, (2) a policy on sexual harassment, and (3) statement of compliance with federal and state anti-discrimination statutes (equal employment opportunity).
Employee personnel files are an important component of any business. There can be exposure when employee contracts and personnel formats are not handled properly, creating the potential for wage and hour disputes. The internet can serve as a valuable resource for locating relevant information to set up documentation for your company's personnel files. However, if you want to insure that you are actually in compliance with all federal and state regulations, it would be wise to have a Seattle business attorney or Seattle employment attorney review your employee information.
About the Author:
John M. Adams has worked as a Seattle business attorney for the past 20 years. He practices as a Seattle employment attorney advising clients in need of a Washington employment attorney for their contract or litigation needs.