Compliance

How We Helped a Cannabis Start-Up Find Ease in Payroll and Become HR Compliant

Our Client

7Points is a cannabis cultivating company in Woodlake, California. They seek to offer their customers a continuously unique and pleasurable experience with their product.

Their Challenge

7Points is a start-up looking to grow quickly and needed systems and processes that were smooth, compliant and reliable from the start. They turned to CorpStrat for their Payroll and HR needs and received just what they were looking for.

Recommendation + Results

Instead of paper timesheets, 7Points employees are now using biometric timeclocks that sync directly into payroll. They are now able to avoid any timekeeping discrepancies and have saved endless time now that their hours are no longer manually entered.

In addition, 7Points turned to CorpStrat HR to make sure they were in compliance with all their HR-related needs. The first item on the agenda was the NEW California State required Sexual Harassment Training for all employees. 7Points can now have confidence in their policies and procedures when it comes to employees who are consistently compliant with State and Federal laws.

Cannabis-related companies have traditionally had a difficult time establishing banking and payroll practices. Contact the team at CorpStrat to help your company deploy best practices in benefits, compliance, learning, HR and technology.

Got Sexual Harassment Training? We Do!

California has enacted a series of laws that strengthen the state’s protections against workplace harassment. These new laws:

✔️ Require employers with five or more employees in the state to provide sexual harassment prevention training to all employees;

✔️ Expand and clarify employer liability for workplace harassment; and

✔️ Prohibit employers from entering certain agreements related to sexual harassment and other unlawful acts in the workplace.

All California employers should become familiar with the new laws. Those with five or more employees should review the new training requirements and ensure that each of their employees receives the required training by the end of 2019.

✔️ Managers must complete 2-hours – employees 1-hour.

The appropriate training must be completed by each employee within six months of assuming his or her job. Each employee must receive the appropriate training once every two years. ‘’

The deadline for initial compliance with these requirements is Jan. 1, 2020.

CorpStrat has a learning platform that can help employers easily comply for a nominal expense. With our platform, you can easily upload your roster, push out trainings, track progress and secure completion certifications.

Contact us to learn more ASAP! Don’t delay.

The Legal Implications of Personality Testing

There are some companies that require job applicants to take a personality test, or Myers-Briggs personality test, before being considered for a role. And then there are companies who are seriously considering adding it to their hiring process. Ultimately, companies want to get a sense of how one sees the world and makes decisions.

Some companies believe this type of insight can help employers make predictions regarding future job performance and success. At the very least, it allows employers to get to know an applicant and find the right fit through more than just the traditional interview process. However, tread lightly because while these tests sound appealing and like a no brainer, they raise many legal issues, particularly in the areas of potential discrimination claims and privacy laws.

[Read more…] about The Legal Implications of Personality Testing

Why You Should Have Job Descriptions

While there is no “law” that requires that an employer has set job descriptions, writing job descriptions is an important step in planning your staffing programs. They form the foundation for many important processes such as job postings and recruitment. Here’s how it will pay off for your business.

Cover Your Company, Legally

As an example, for remaining in compliant with the ADA, you’ll want to make certain that the description of the physical requirements of the job is accurate down to the offer letter.

A Useful Communication Tool

Aside from any absence of legal reasons to have one, practical reasons weigh strongly in favor of having them. For example, job descriptions can be useful communication tools to tell employees exactly what tasks you expect them to perform. Job descriptions may also address quality or quantity of performance standards, or even work rules that apply to a particular job. Without such clear communications, employees may not perform to your expectations.

Find the Right Fit

Job descriptions can help identify particular skills or abilities that are necessary for a position or the environmental pressures that apply to the position. A good job description tells the applicant what the position may involve or require. After reading the job description, some applicants may decide that they are not a good fit for the position or are not interested in it. If an applicant withdraws his or her application, then a prospective employer cannot be held liable for any “adverse action” under any applicable laws.

Guide the Interactive Process

Some state or federal laws require reasonable accommodations for qualified individuals with disabilities. Job descriptions can help with the interactive process that such laws require. A job description serves as a starting point for what the employer believes to be the essential job duties. The applicant or employee then must identify which of the listed duties he or she cannot perform.

Once those duties are identified, the employer and individual with a disability can begin an interactive dialogue about what accommodations may help the individual to perform those duties without being an undue hardship on the employer or without creating a direct threat to the individual or others. A job description can also be helpful in soliciting the advice of professionals such as physicians, chiropractors, counselors or rehabilitation therapists about whether the individual can actually perform a particular job.

Describe Legitimate Minimum Qualifications

If a job requires a particular certification, such as a commercial driver’s license, a particular degree, or professional designation, list it in a job description. Similarly, if a negative drug test is required before starting or continuing work, that should be stated in the job description.

Another objective, minimum qualifications can be listed as well, including such basics as the need for good attendance and the ability to work well with others. Then, if a person seeks a position and does not possess the required certification or qualifications, you have a legitimate, nondiscriminatory reason for not placing the person in the job.

Justify an Employee’s Exempt Status

Job descriptions will not, by themselves, determine whether a person should be exempt or nonexempt under applicable wage and hours laws. A job description must first accurately reflect the duties of a particular position. In addition, other elements of the applicable exemptions must also be present with respect to each individual worker to qualify as exempt.

But if you claim a person is exempt from minimum wage, timekeeping and overtime requirements under the “executive” exemption to the Fair Labor Standards Act, the job description should state that the employee manages a “recognized department or subdivision” of the company and regularly supervises at least two or more full-time equivalent employees every week. Other managerial duties should also be referenced in the job description.

Similarly, for those employees that you are attempting to qualify as exempt under the “administrative” exemption, the job description should state that the employee “regularly exercises independent judgment and discretion about matters of significance” or words to that effect. Again, describing duties that involve such independent judgment and discretion, such as “negotiates” or “decides,” would also be helpful.

Do a great job of describing what you expect, and you have a greater chance of getting exactly what you want from your team members. The ROI is up to you.

2019 Labor & Employment Law Update for California Employers

California Governor, Jerry Brown, recently signed into law several bills that will have a significant impact on California employers’ workplace obligations. Effective January 1, 2019, the new laws will restrict nondisclosure agreements and certain settlement agreements covering harassment and discrimination claims.

These changes significantly expand harassment training obligations (including for employers of under 50), require female quotas on California-headquartered boards of directors, and potentially require updating lactation accommodations.

[Read more…] about 2019 Labor & Employment Law Update for California Employers

New 2019 Affordable Care Act Guidelines and Their Effects on Businesses

Laws change all the time and it’s important for employers to stay up to date on employment-related news as they come along. The Affordable Care Act (ACA) has seen annual changes since it began nearly a decade ago. The new year 2019 is no different, especially since the tax reform act from 2017 featured a few ACA changes that take effect in 2019.

Companies must keep track of these changes in the ACA law or face fines, penalties or even worse. Here are a few major changes to look out for in relation to the Affordable Care Act in 2019:

Companies with 50+ full-time employees must offer affordable health coverage

Requiring that health coverage is offered to employees at large businesses has been a goal of the Affordable Care Act since the start. In 2018, the rule went into effect that requires companies with 50 or more full-time employees to at least have health care offered to them by their employer. This rule goes unchanged for 2019.

While affordable care must be offered, and the plans must be of high enough quality to fulfill the ACA’s coverage requirements, employees are not required to accept.

However, most employees do accept an offer of coverage, if for no other reason than to avoid the tax penalty for going without coverage. But that changes in 2019 as well.

The individual mandate for healthcare has been suspended

Up until now, if an individual did not carry ACA-approved healthcare, they would be charged an extra tax come April 15th. This included anyone who had coverage that did not qualify for ACA, as well as anyone who lacked coverage for any amount of time during the year.

However, in 2019, this mandate has ended. Now if an individual chooses to go without coverage, they will not be penalized for doing so. This could affect employers as they may see a decline in employee enrollment in the company’s group plans.

The health insurer tax is suspended again

The Health Insurer Tax is a fee placed on healthcare providers based on the premiums they brought in throughout the year. In 2017, the fee was suspended, but it was brought back in 2018. Now it is suspended again for 2019.

The hope is that the health insurance companies will be able to control the cost of premiums now that they do not have to pay this extra fee, which could lead to better rates for employers and employees.

The affordability threshold has risen to 9.86%

In order for there to be affordable care, there must be a definition of the term “Affordable”. According to the law, the lowest-cost self-only coverage option made available to employees cannot exceed 9.86 percent of an employee’s household income.

For example, plans that use the Federal Poverty Line for affordability can’t charge more than $99.75 per month to their employees who choose to sign up for a health plan.

These are the major changes that could have an impact on many businesses around the country. Be sure to consider how these changes will affect your organization when budgeting for the next year.