Touching on 12 Key Topics in Human Resources
The content in this article* derives from Brittany Hanson’s “HR Basics for the Non-HR Professional” webinar hosted by Park Bank in August of 2024. Hanson, MBA, PHR, is Park Bank’s Assistant Vice President – Human Resources Operations.
No matter the size of your company, all businesses need people to do their work.
“Having a fundamental knowledge of Human Resources (HR) basics is important to make sure those people can carry out your mission,” Hanson said. “HR ensures that an organization achieves success through people.”
In this article, we’ll explore 12 key HR topics.
- Laws and Regulations
Understanding applicable laws and regulations is the foundation of good HR practice and compliance. However, navigating the differences between federal and state laws can be challenging. What should you do in these cases?
A general rule of thumb is to “apply the most generous law in favor of the employee,” according to Hanson. For example, while the federal minimum wage is $7.25 per hour, some states have higher minimum wages. In such cases, employers must adhere to the higher state minimum wage, as it is more generous and favorable to employees.
- Employee Files
According to Hanson, every employee at your organization should have a file. All workers have a right to view and obtain copies of their file.
That’s why it’s important to know what information should or should not be included in an employee’s file.
What should be in an employee file?
“Things that are objective, indisputable facts,” said Hanson.
This includes:
- Offer information, promotion, job changes
- Benefit enrollment information
- Leave information
- Performance reviews
What should not be included?
- Medical information
- I-9
- Background check
- Interview notes
These items should all be kept in a separate file, according to Hanson.
- Employment Law Posters
Employers are required to post employment law and labor law posters that cover various state and federal regulations in places that are accessible for all employees.
“Think about a break room or a common area,” Hanson said.
She also noted that for remote workers, these posters should be available on your intranet or other commonly used platform. Send out links annually or whenever poster content is updated. The U.S. Department of Labor provides free workplace employee law information online.
- Exempt vs. Non-Exempt Jobs
This classification generally pertains to overtime pay.
A non-exempt job typically requires the employer to pay overtime if the employee works more than 40 hours in a week. In contrast, an exempt job usually does not require overtime pay, even if the employee exceeds 40 hours of work in a week.
What jobs are exempt? A key factor is the minimum salary.
“Individuals must have a minimum salary of $43,888 to be exempt,” Hanson said. She added that this minimum salary is like to increase in January 2025.
Exempt duty categories are:
- Executive
- Administrative
- Professional
- Computer Employee
- Outside Sales
Reference this free online resource provided by U.S. Department of Labor for more detailed information regarding exemptions.
For non-exempt employees (not contractors), the overtime rate of a pay is time-and-one-half.
- Independent Contractor vs. Employee
Properly classifying “contractors” vs. “employees” has important tax and benefit implications.
“If an organization misclassifies someone, there could be significant financial implications,” Hanson said. “They could owe back pay, benefits, or taxes.”
How can you determine whether someone is an employee or a contractor? Consider these factors:
- Financial control (e.g., reimbursing business expenses)
- Behavioral control (e.g., direction worker has from the organization)
- Relationship of parties (e.g., contracts and parameters)
The IRS provides a free online resource to help define these distinctions.
- Meals and Breaks
You are required to pay someone for a meal or break if:
- The break is less than 30 minutes.
- The employee is not in a complete relief of duties (e.g., employer says “Take a break, but can you keep an eye on the lobby?”).
Also, if you employ minors, there are specific meal and break laws. (To view these laws, click here.)
- Travel and Training Pay
Here’s how Hanson broke down the rules of travel and training pay:
Travel Pay:
- Pay for all time traveled as work time.
- Subtract normal commute time to work.
- Pay for any time spent traveling for the employer’s benefits.
Training Pay:
- Paying for training time not required if ALL of these are met:
- Attendance is outside of the employees’ regular working hours, and
- Attendance is voluntary, and
- The training is not directly related to employee’s job, and
- The employee does not perform any productive work during the training.
- Harassment and Discrimination
“In the workplace, organizations cannot discriminate against any protected classes for any reason,” Hanson said.
Protected classes include:
- Race
- Color
- Religion
- Sex (including pregnancy, sexual orientation, or gender identity)
- National Origin
- Disability
- Genetic Information
What is harassment in the workplace?
Harassment involves unwelcome conduct based on someone’s membership in a protected class.
“If it’s unwelcome according to them and how they feel, then that’s enough to describe it as harassment,” Hanson said.
Harassment becomes unlawful when:
- It becomes a condition of employment, or
- Conduct is so severe or pervasive that it creates an environment that a reasonable person would find intimidating, hostile, or abusive.
Anti-discrimination laws prohibit retaliation against individuals who file a charge, testify, or participate in an investigation related to harassment.
How to prevent harassment:
- Provide training.
- Establish clear policies.
- Build a strong, inclusive culture.
- Interviewing
Hanson shared a few best practices for interviewing:
- Ask every interviewee the same questions.
- Probing questions are acceptable (e.g., “Can you elaborate?”).
- You can probe into claims made on a resume.
- Questions must be job-related and consistent with business necessity.
You cannot ask questions such as:
- “Are you married?”
- “Do you own a car?”
- “Where were you born?”
- “Do you have a disability that would affect your ability to do this job?”
- Mandated Benefits
The following are required benefits for new hires:
- I-9
- New Hire Reporting
- Social Security and Medicare
- Unemployment Insurance
- Worker’s Compensation Insurance
- Family and Medical Leave Act (if over 50 employees)
- Health Care (if over 50 employees must provide affordable cover, plus additional requirements)
- Discipline and Documentation
For discipline and documentation, Hanson recommends the following:
- Have a written policy that is flexible enough to move through its steps.
- Document each step of the process, including the specifics of the policy violation, expected behavior changes, and potential consequences.
- Be consistent.
- Termination
“Make sure you are maintaining confidentiality and privacy when you’re going through the termination process,” Hanson said. “A best practice is to recap issues and not rehash issues.”
Do you have any questions or concerns regarding this topic?
About Brittany Hanson: Brittany has worked in HR for 15+ years with experience in a variety of areas. Today, in her role at Park Bank, Brittany’s primary focus is on training and development, performance management, and employee relations.