Industrial Distribution

If you’re responsible for managing employees, you may find the need to terminate one or more of them at some time in your career. Terminations are potentially emotional, sometimes volatile, and maybe even deadly. Given the current state of the economy, terminations in the form of layoffs are increasing.

The information provided in this advisory is not designed to serve as legal advice. It is designed for the practical application of employment regulations in the everyday work of your business. It is written from a human resources management perspective, in a Q&A format. The following 10 questions address termination in general and “at-will termination” in particular.

Question: Are there any specific laws affecting termination?
Answer: There are federal, state and local laws that have serious co...Read More

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If you’re an executive, owner, manager, or any other person responsible for employees, it is important for you to understand pay practices. Questionable pay practices generally bring an outside regulatory agency into your business to determine if you are in compliance with the laws regarding pay, hours of work and record keeping. The information provided here is not designed to be legal advice. It is designed for the practical application of Wage & Hour regulations in the everyday work of your business.

Question: Are all businesses required to pay minimum wage?

Answer: Yes. Except for agriculture, all businesses must pay either the state or the federal minimum wage. The determination is based on the sales volume of the business.

Question: How much volume is needed before we are re...Read More

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One of the most frequently asked questions I hear is, "What should be kept in a personnel file?" There is no standard prescription for what is kept in an employee personnel file. This Q&A will be helpful in determining whether your files are in order.

Q. Is there certain information that must be kept about employees?

A. Yes. For pay purposes, federal regulations require that every employer keep the following information about their employees.

1. Name
2. Social Security Number
3. Address
3. Occupation
4. Gender
5. Birth date (if under 18)
6. Schedule Worked (for non-exempt employees)
7. Total Hours (daily and weekly for non-exempt employees)
8. Earnings record of straight time
9. Earnings record of overtime (workweek for non-exempt employe...Read More

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Q. I live in a state where medical marijuana is legal. An employee in our shipping department, who drives a forklift, says he uses marijuana for pain management under the supervision of a physician and we cannot stop him from using it or test him while he is using it. Is that true? 

A. If your employee has a prescription for medical marijuana that is legal in your state, then the attending physician is the person who makes the decision regarding usage. If your employee operates machinery, climbs or does work where judgment is needed, just relate that to the doctor and ask the doctor under what circumstances the employee should be using this medically prescribed marijuana. Keep in mind that there is no law in the United States that allows an employee to break the law, so you can be sure your employee does not have a free tick...Read More

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Q. A skilled electrician, who has been with us for eight years, had a non-work injury and was absent for six weeks. We are a very small company of 15 people, but I held his job because he is really good at it. He called me last week and said he has a doctor’s release to come back to work on Monday but said he will not come back unless I give him a $3.00 an hour raise. I explained that I cannot afford to do that. Today, I received an unemployment claim that states he was fired for requesting a raise. Is that true? I never told him he was fired.

A. Your electrician did not request a raise in pay; he gave you an ultimatum. When you said “no,” he had two choices—come back to work at his current pay rate or quit. He obviously quit. Be sure to respond to the unemployment claim quickly because the claim is time sensitive a...Read More

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Q: Our company’s janitor told me that he was sweeping up the locker room when Tony, a 15-year local driver, opened his locker to get his jacket. The janitor said he saw a gun lying up on the top shelf. Can I open and search this employee’s locker? We have a policy against weapons in the workplace and we don't live in a state where there is a "concealed weapons" law. Our policy says we forbid weapons in the workplace.

A: Your issue is serious. Since you live in a state where a concealed weapon is illegal, and there is suspicion of an illegal weapon in your workplace, you are now “on notice.” I would put the brakes on searching lockers. Since you own the lockers and they are certainly your property, you have the right to open them. I also hope you have issued the lock that can be found on any locker. That ma...Read More

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Q: My chief buyer is a salaried employee, who is not paid overtime. He supervises three employees. He has been showing up late, taking long lunch breaks and leaving early. When I confronted him, he said that he is not required to account for his hours because he is salaried and must be paid his full salary. I want to dock his pay for hours he does not work to force him to be more punctual. Can I do that?

A: Sounds like your chief buyer has figured out how to take advantage of his “exempt” status. There are very few circumstances under which you can dock the pay of an exempt employee, especially by the hour. Exempt employees are not paid by the hour. I would remind this employee that he is responsible to supervise employees and that you expect him to be at work during the hours his employees are required to be there.
...Read More

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Q: We don't have a drug/alcohol testing policy, but an hour ago one of my receivers told me he is sure he smells alcohol when he gets near the forklift operator. Even though we don't have a drug/alcohol testing policy, can I require him to go for a drug/alcohol test? I am worried that he could hurt someone.

A: You are wise to be worried. Although you do not have a formal drug testing policy, if you operate a business in the United States, you are required to have a drug-free workplace. That includes both drugs and alcohol. If your employee works in a “safety sensitive” job, testing is mandatory. To address your immediate need, you should bring the employee to a place for a private conversation and tell the employee that you have reason to believe that he is impaired with alcohol. Assure him you are not certain about the level...Read More

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Q. Our business is slow right now and I need to lay off three people from the warehouse for about three months. Whether I lay off by seniority or skill, all three will be minorities. I have 15 employees in the warehouse and there will only be one minority left among them after the lay off. What should I do to be sure I don't get sued for discrimination?

A. There is absolutely nothing you can do to be sure you won’t get sued. People sue for a hobby. The issue is not being sued, it is being successfully sued. You have taken the most important first step in layoffs. In human resources we call this process an adverse impact study. Whenever we prepare to take an adverse action in the workplace that involves employees, it is wise to do a formal study to see the impact against those affected. We study the impact based on gender, age and m...Read More

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Q. My very best maintenance mechanic had an accident with his lawn mower over the weekend. He had surgery on his hand to repair tendons and it is heavily bandaged. He brought a doctor’s statement this morning that says he needs to be off from work for six weeks, but he is asking to go back to work because he needs the money. He is the only person I have who knows how to repair some of our equipment and I need him badly. Can I let him work even though the doctor says he should be off?

A. NO! The statement from the doctor is a directive, not a suggestion. If you allow this employee to return to work, you will subject him to further injury. As an employer, you are required to have a safe and healthy workplace. If you deliberately put the safety of an employee at risk, you may be charged with negligence. You should say to the employee,...Read More

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Q: Nancye, we have a problem with an employee in our payroll department. She is abusing the company computers by spending long hours on instant messaging every day. I have asked the IT manager to block her from instant messaging privileges. Since she is a member of a minority group, I am worried about discrimination. Is this discrimination? By the way, I should tell you, Nancye, that we let employees use the Internet at lunchtime without any penalty.

A: I would not be worried about discrimination unless you let non-minorities abuse instant messaging with no penalty. If this employee does not need to use instant messaging, or has abused her privileges by visiting with friends during her workday, then taking away the privilege is an option. But taking her privileges away as the first step in correcting the problem may be a little drastic. ...Read More

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Q. We have an employee, who has been with us for a year, who has asked to be off from work each Friday for the next two months. He says he has a health issue that requires him to have three consecutive days of rest each week. I asked for a doctor's statement, but he said he prefers not to have anyone aware of his condition. He wants the time off without pay and does not want to use any vacation time to cover it. With only 18 employees, it will be tough for us to handle. What should I tell him?

A. What your employee is actually seeking is the ability to take a three day weekend for two months by taking Fridays off. If you have had a precedent for this absence, then you can let him off if you want to. If not, I would not set such a precedent. He is not seeking a medical leave and his request opens the door for others to ask for time off for other personal reasons. In most small companies, such a request is impossible.

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