One of Catapult’s most used member services is our HR Advice Line. While most calls are unique and require special attention from our experts, numerous organizations often experience the same or similar situations. Here are a few frequently asked questions from member companies to keep on hand.
Q: What is “Employment At-will?”
A: Without a contract of employment, employers have the right to terminate an employee for any reason in accordance with all local, state, and federal laws. Likewise, employees have the right to resign at any time for any reason. To protect against implied contracts that could negate at-will, employers should have well-worded policies. Eliminate references to permanent or steady employees and “just cause” terminations. Due to all the varying employment laws and regulations, employment at-will should never be a basis for termination!
Q: Must I pay out PTO when an employee leaves?
A: In NC and SC, you must pay out accrued, but unused, paid time off when an employee leaves your company, regardless of the reason, unless you have a clearly communicated written forfeiture policy. Nothing in the policy can be left up for interpretation, for example terminated for “misconduct.” Sample compliant language is in our Employee Handbook Template, which can be found here.
Q: Is my company’s liability for harassment in the workplace limited to situations that occur at work?
A: No. The company is obligated to treat employee harassment situations with the same level of responsibility regardless of where it occurred. This is also true regardless of who else is involved, including people who don’t work for you, such as vendors or customers.
Q: How does maternity leave work?
A: There is no federal or NC/SC maternity leave law. If you are a covered employer, and the employee is eligible, maternity leave falls under FMLA. There are other federal laws to keep in mind, such as the Pregnancy Discrimination Act (PDA) and the Pregnant Workers Fairness Act (PWFA). The PDA requires employers to treat pregnant employees the same as other workers who are similar in their ability to do the work. The PWFA requires employers to provide reasonable accommodations to pregnant workers. Compliance with both of these laws typically results in providing time off for pregnant employees, however this could look different based on company size and resources.
Q: Is there a federal or NC/SC law that requires employers to provide a break or meal period to employees?
A: No, but it is certainly recommended from an employee relations perspective. In addition, depending on the nature of a person’s job, you will want to consider the OSHA general duty clause for safety practices. If you provide breaks, the Fair Labor Standards Act (FLSA) provides pay guidelines. There are work-hour limitations for employees under the age of 18.
Q: Do I have to give employees access to their personnel file?
A: There is no federal law that requires private sector employers to provide employees access to their personnel files. Some states have laws permitting access, but NC and SC do not. However, employees must be provided access to their medical file if requested. As a best practice, employers should have a policy regarding access to personnel files. A sample can be found in our Employee Handbook Template found here.
Q: Can I recoup amounts for lost, stolen, or damaged equipment from my employee’s paycheck?
A: A qualified yes for non-exempt employees only. NC requires a written authorization, signed by the employee, with the specific amount to be deducted. SC does not spell this out as clearly, but we recommend following the same guidelines. Deductions cannot be made from overtime, and the employee must still make minimum wage. We recommend getting the non-exempt employee to sign the authorization at the time equipment is provided. This is much more complicated for exempt employees.
Q: Can I pay anyone I want as an Independent Contractor (1099)?
A: No, there are certain criteria that someone must meet in order to be paid as an independent contractor. Independent contractors are in business for themselves. The relationship must be reviewed as a whole, but some of the factors are: they have the right to control their own work, have the ability to make a profit or loss (an employee always makes a profit), and the relationship typically ends when the work is complete. Many agencies are interested in companies getting this right, including the DOL, IRS, Unemployment, and Workers’ Compensation.
Q: Can I pay someone a salary and not have to pay overtime?
A: Not necessarily. Even though someone is considered a salaried employee, they may not be exempt from overtime provisions of the Fair Labor Standards Act (FLSA). Employers must determine whether an employee is exempt or non–exempt by following the criteria outlined in the FLSA.
For assistance with these topics and more, reach out to our HR Advice team. Also familiarize yourself with the resources available in our HR Toolbox.
