Newer Company - ignoring laws or just ignorant of them?
So - I am a few weeks into a new job in HR. The company is small and I am the first 'official' HR professional. The CEO is very micro-manage-y and my trainer is in accounting by title. I am already noticing that some of the policies are not meeting my sniff test and are running on the wrong side of FLSA. Here's an example: sales reps are paid a base salary plus commission. Company policy indicates sales reps are not paid holiday pay (paid 4/5 of base pay for holiday week).
However, I know that, as exempt employees, that violates FSLA guidelines. How can I broach that subject with the CEO and trainer without 1) them getting offended and 2) not get fired. Ugh! Any insight or suggestions is appreciated!
Sandra Woodham
21
07/20/21 at 7:37PM UTC
If they are violating FSLA then they are probably ignorant of ERISA law as well. As a Full service Benefits Broker(Nationally for 30 years), I often present an HR360 type program, often available free with most payroll companies. I would love to look at your benefits package, HR solutions, Ben Admin, etc. and see if we can elevate the knowledge from our expertise and you could be the hero! I would love to help, (404)446-8801 Sandra
Tracy BredesonHR exec, thought leader and engagement champion
22
07/28/20 at 2PM UTC
So Sorry you were let go, Anonymous. This is one of those things that is probably better in the long run, given how much they were questioning your very sound advice to follow the law. You deserve to be in a place that understands how important it is to manage that risk. There are opportunities out there so keep the faith. HR needs people like you who are committed to integrity, honesty and doing what is right. You will never regret standing up for ethics in the workplace.
Anonymous
07/19/20 at 10:07PM UTC
l'm so sorry they let you go. Had there ever been an audit, fine, complaint, etc., it would have ultimately been your responsibility for the non-compliance even though you tried to educate them. You would have spent more time documenting your efforts to advise them in the name of covering yourself.
Anonymous
06/30/20 at 12:49PM UTC
Hi Anonymous,
I've been in your shoes. Initially when I approached the CFO, he got irritated and said, "show me the law." If I were to repeat this scenario today, I would approach the CFO differently armed with "evidence" of the law and potential fines as well as a couple of cases of employers fined. That should wake them up. If they don't hear you then, as Tracy says, it's time to move on because they won't value your advice on other matters in the future. Good luck.
Anonymous
07/19/20 at 10:39PM UTC (Edited)
Well - that decision was made for me; I was told on Thursday that I was not a "good fit" for the company and my employment was terminated after a month. I applied for unemployment from the parking lot and am contacting the DoL on Monday.
Tracy BredesonHR exec, thought leader and engagement champion
22
06/29/20 at 6:08PM UTC (Edited)
Hi Anonymous. Congrats on the new HR role! This is an opportunity for you to lay the groundwork for a solid, employee-law compliant workplace. Have you gathered details on all of the laws/regs you are concerned about? Not that you have to have everything all outlined, but I suggest meeting with the CEO and laying out your concerns and why this is a risk to their business. Show them examples of what you think is a violation and show that you've done some research of the consequences. Fines and court costs for FLSA and other legal violations are incredibly expensive and difficult to fight. I suggest you also request that the CEO allow you to reach out to an employment attorney to help you write the new policies. You may get some pushback (too costly, we've done okay so far, what is this a problem-type comments) but your role is to protect the company from these kinds of legal issues. Bottom line, if the CEO isn't willing to listen to you, perhaps you want to consider moving on. I hate to say it but if the CEO won't listen to you about such basic, yet critical issues, then they probably won't listen to you on other things that matter to the organization. Your CEO needs to trust you and allow you to be an honest and non-sugar coating partner in the company's success. I hope this helps.
User deleted comment on 07/19/20 at 9:48PM UTC
