With this increasing issue, managers need to hold themselves accountable to strictly enforce FMLA , and other,  attendance policies. Use the below six valuable tips to avoid being taken advantage by employees abusing FMLA.

1. Use a Rolling Calendar to Calculate FMLA Leave.

Using a rolling calendar year means calculating FMLA backwards, based on the first date the employee uses leave. This helps to minimize the opportunity for employees to try and double their FMLA time based on a regular calendar year.

2. Demand Medical Certifications

Every company should develop an internal policy that employees must submit a medical certification to the the appropriate personnel within 15 days of the start of their FMLA leave. Examine the certification closely to determine its creditability, if suspicion does arise, you have to right to ask for a second opinion from an objective provider.

3. Require Employees to Provide Advance Notification

Employees should be required to submit a request at least 30 days in advance for all foreseeable FMLA leave. 

4. All Attendance Policies Need to Be Strictly Enforced

As a manager,  be strict when enforcing all absentee policies. The key is to stay consistent in following procedures, whether an employee is gone for one day or two months.

5. Request Employees to Appropriately Schedule Medical Appointments Around Work

Employers have the right to ask employees to schedule treatments and appointments at convenient hours of the work day, usually early morning or late afternoon, to enable them to work the majority of the work day. If necessary, employers can give the employee an alternative position to accommodate the changing schedule during intermittent FMLA.

Require Medical Recertification

If an employee is taking an extended leave of absence, require them to resubmit medication certification every 30 days, or more frequently, to stay up-to-date. This will ensure the employee is not taking more time off than necessary.

FMLA was not intended to be disruptive or abusive, but unfortunately there will be employees who try and cheat the system. As a manager, remaining consistent, asking questions and keeping track of all attendance will help decrease the opportunities of FMLA abuse by employees

For more information on the basics of FMLA, read our Policies and Procedures of Family and Military Leave Act Blog post.

There is no way to eliminate the chance that a disgruntled employee will file a lawsuit against you or your company, however there are ways to minimize the risk. To help save yourself and your company from potential damaging lawsuits follow the below advice on practices to abide by in the workplace.

1. Always Document Conversations with Employees

All conversations verbal, via email or formal can be presented to a jury. Document all forms of conversations you have with employees to make sure you have proof to defend yourself if a case is brought up against you. Although sometimes monotonous, you should always communicate with your employees as if they are going bring you to court.

On the reverse side, be aware as to not over document right leading up to a planned termination. There have been cases where employers attempt to overcompensate employee disciplinary documentation in the time leading up to a termination to make up for the lack of documentation throughout the entire employment.

2. Know Corporate Policies

Be familiar of with your organizations standard policies and procedures, including employment law. A manager claiming ignorant in front of a jury will not be reliable. It is a manger’s job to always be knowledgable of company policies. 

Never make decisions without knowing the definite company policy,  if ever in doubt, ask your HR department.

3. Over Exaggerated Reviews

Do not over exaggerate positive performance reviews for employees. Overly enthusiastic reviews can discredit your termination decision if that employee is fired down the line. Always be honest and consistent.

4. Pay Attention to Employee Complaints

Do not shrug off complaints from employees related to unfairness or perceived illegal actions. Not addressing employee complaints can not only can come back to haunt you, but it also destroys your credibility as an employer and a supervisor.

5. Interview Mistakes

Not all lawsuits stem from firing an employee, companies are often brought to court under allegations of discrimination during the hiring process of an individual. This is often because rejection decisions are not always as well documented as an employee hire. Avoid being in this situation, by documenting the exact reason that you did not hire an employee. Remember, it is illegal to not hire an employee based on or related to marital status, age, race, religion, children, political affiliation or health status.

6. Have a Consistent (and true) Story

One of the worst things you can do in a lawsuit is to change your story or reasoning as to why you made an employee decision. Communicate with your employee the exact reasons for discipline and remain consistent. This includes the initial defendant statement sent to court. If you change your reasoning at any time during the lawsuit, your credibility will go out the window.

7. Dictating Accommodations:

Employers are required under federal law to make “reasonable” workplace changes to accommodate employees disabilities. As a supervisor, do not try and dictate the solution, work with the employee to meet their specific needs. If the employer controls the situation and creates an unsatisfactory solution for the employees needs, the employee may have a reason to file a lawsuit.

8. Firing Employees Too Quickly

Before terminating an employee, managers are responsible to try and improve a workers performance. If you attempt to fix the issues before firing an employee, you will have a proof and credence in the court room.

For more information on Firing Employees visit our Guide to a Smooth Terminations blog.

Many times work related lawsuits are not in the hands of the employer, however taking precautionary action involving documentation, communication and familiarity can help you be prepared to defend you or your company in court.

Take the time to plan ahead, start buy asking questions about budgeting and the future. Asking these questions now may help you avoid asking questions about how to get out of debt later.

Follow the below tips on budgeting to start becoming a proactive saver.

Set Short and Long Term Goals:

It is important to determine and evaluate your short and long term goals. Are saving for a summer trip to Europe or for your children’s education? Maybe it is both. Estimate how much each goal will cost and how much money you need to put away each month to reach that goal.

Track Your Expenses:

If you don’t track your expenses, you may not realize where your money is actually going towards. The best way to do this is to first add up your fixed expenses (rent, insurance, loan payments, etc.) and track your variable expenses (utility bills, food, transportation, etc.) for each month. Carrying around a small notebook or putting daily expenses in your phone is an easy way to track this and it may cause you to reconsider your day-to-day purchases! When planning ahead, take into account specific splurge periods, the holidays often lead to higher spending habits. 

Cutting Unnecessary Costs:

After looking at your monthly spends, ask yourself where you can cut costs? The coffee you buy twice a week may be adding up.

Here are some common budgeting tips to try:

• Buy frozen non-perishable food to avoid having to throw away expired groceries
• Compare your current homeowners or renters insurance - there may be less expensive options that were not available when you initially signed up for coverage
• Look at options for internet, phone lines and cable/satellite. Again there may be cheaper options you have not heard of!

Bargaining on Purchases:

Although we are not bargaining on most of our daily purchases, the operation isn’t completely dead. You still might have the power to actually lower prices, especially on larger purchases. Do your homework and be prepared, research the market price and find out what you should be paying. When you do arrive at the store, it never hurts to ask the salesperson if an item has coupons or if there are similar items on sale. The worst they can say is no. Finally, if it a larger purchase, such as car, be comfortable with walking away from the sale if you are not getting the price you want. In today’s economy, more often than not the merchant will want your money. And, if they do not stop you, you can always go back.

Remember your budget will not be set in stone. Life happens and you will have to make changes occasionally, but taking the time to budget now will help you stay prepared for the future and for your trip across seas!

Automatic IRA Act:

The S 3760 would require companies, who previously did not offer retirement accounts to employees, to automatically enroll employees in individual retirement accounts. The bill was introduced to both Congress and a few states but has been turned down. The APA is urging for it to be reconsidered in 2012.

American Jobs Act:

Although the initial package did not get past Congress, it is likely we will see bits and pieces of the American Jobs Act introduced separately or squeezed in with other legislation throughout 2012.

The APA is interested in the effect the individual proposals will have on payroll professionals. They are specifically tracking the Social Security Preservation Through Individual Choice Enhancement Act. The act would allow employees the option of participating in any temporary tax holiday passed by Congress.

Mobile Workforce Bill

HR 1864 concerns employees who travel interstate on short term work assignments. The bill would limit states’s ability to tax certain incomes, which would reduce administrative tasks for payroll departments.  The bill was passed by the House Judiciary Committee but has not been voted on by the full House.

State Paycard Bills

Not all states have not addressed the use of paycards as wage payment in their related laws and regulations. APA is lobbying for state paycard legislation to be passed.

There will be bills reintroduced in Connecticut, New Mexico and California in 2012.

State Garnishment Bills:

Georgia legislature is considering SB 11. The bill affects the amount of time employees have to respond to a garnishment order, it is expected to be reintroduced in 2012.

Continue to check Optimum’s blog for future government updates.

2012 Standard Deduction Increase

The standard deduction for married couples filing jointly or surviving spouses increased from $11,600 in 2011 to $11,900 in 2012. Single taxpayers and married taxpayers filing separately increased from $5,800 in 2011 to $5,950 in 2012. Heads of the households also face an increase from $8,500 in 2011 to $8,700 in 2012.

As a reminder, the Tax Relief of 2010 states that the standard deduction for married taxpayers filing jointly is at 200% of the standard deduction for single taxpayers through 2012.

2012 Personal Exemption Increase

The personal exemption amount has increased $100 from $3,700 in 2011 to $3,800 in 2012.

Note: Under the TRA, the phaseout of the personal exemption for higher income taxpayers does not apply to taxable years in 2011 and 2012.

2012 Foreign Earned Income Exclusion Increase

In 2012, the maximum amount of the foreign housing cost exclusion increased from $13,006 in 2011 to $13,314 in 2012 and the maximum foreign earned income exclusion increase from $92,000 in 2011 to $95,000 in 2012.

Check back with our HRIS News page for future local, federal and state updates.

More Convenient Deposits

Using direct deposit, employees always know the exact day their paycheck will show up in their account. There will never be a question as to whether a check will arrive on time or when the bank will process the transaction. In fact, direct deposit eliminates the need to stop at the bank to deposit paychecks altogether.  This means if no special arrangements to get your check if you are sick or on vacation.

More Monetary Control

Direct deposit eliminates all worry that a check may be lost, stolen or misplaced, as it goes directly into employees’ bank accounts - its called direct deposit for a reason! Not a single person touch any checks before they are deposited. Additionally, employees also have the option of how much money will go into which bank accounts for each pay period.

More Security and Reliability

Imagine if there is a natural disaster in your city or even the city where your checks are processed. How are you going to get paid? You many not be able to get your paycheck for days, or even weeks. Direct deposit eliminates all of these circumstances by automatically transferring your money into your account, whether or not the mail service is running.

Paycards: Another Payment Option

An additional, and still reliable, option to direct deposit are Paycards. These are particularly beneficial for the unbanked population. If a disaster does occur, you will have still have access to your money through an ATM.

Optimum Solutions provides an unlimited amount of direct deposit accounts, click here to learn more about our payroll processing.

The extension is not permanent

Workers will get two more months of a rate reduction in their Social Security taxes. However, this extension is temporary. As of now, the reduced tax rate of 4.2% only applies until February 29 when the tax rate is set to return to 6.2%. Although there is a likelihood of Congress extending it through 2012, nothing is certain until President Obama signs the bill.

The extended tax cut covers the self employed

The extension also applies the Social Security tax rate reduction to the self-employment taxes. This deduction has not changed, which allows self employed individuals to deduct their employer portion of the tax as an adjustment to their gross income.

The rate reduction is automatic for employees

As an employee, you do not have to do anything different to benefit from the tax decrease. If you are eligible, employers will apply the rate reduction when figuring out your withholding for Social Security Tax. Employers must make this adjustment no later than January 31, 2012.

Your Social Security benefits will not suffer

Although you are paying less to the Social Security system, you are not suffering from by collecting less benefits. The government is paying the difference.

The tax cut only applies up to certain incomes

If you earn more than $110,000 a year, the wage base limit,  you will be subject to a new recapture rule upon filing your 2012 tax return. The reduction applies to your earnings up to $110,000 but you will be taxed the original 6.2% for all excess earnings. Again, this is only effective until February 29, 2012.

If Congress extends the same payroll tax cut in February through 2012, these same rules will apply. Check our blog often for more tax cut updates.

Assign Every Email You Receive

In today’s work world, emails are never ending. An easy way to keep up on emails is being able to quickly recognize the next step for every email. This means every email should be assign an action.

• Delete all irrelevant or unimportant emails
• If urgent, complete the task and mark as completed
• Assign the email to a future date and time
• File the email to an appropriate folder
• Forward the email to the appropriate person

Prioritize All Interruptions

In a perfect world, every phone call or meeting would be properly scheduled in advance - but we all know this doesn’t happen. However, most of the time you can decide on when to actually have the conversation. Within the first two minutes of the phone call or meeting, make a decision as to whether it is an urgent issue or if you need to schedule a meeting for a later date and time.

Plan Your Schedule In Advance

Before you leave the office every day, plan out a schedule for the next day. Make a list of what tasks you need to accomplish and check items off as you complete them.

It is also smart to prioritize the tasks you need to get done. Come up with a system that helps you decide which tasks are necessary to complete by what date.

Keep Your Office Space Organized

This may sound simple, but the two minutes it takes you to find that document, can add up significantly during the week. Stay organized so you don’t waste time saying, “I know I have it here somewhere!”

Everything you do at the office should be worth your time. Planning ahead and taking 15 minutes to schedule your day can save you hours during the week.

Computers Left Unattended

The most common electronic data breach is an employee leaving their computer monitors unattended, exposed, and unlocked. Any passerby can not only read the electronic information, but may even have the opportunity to sit down and search through it.

This same issue occurs when papers containing confidential information are left on desks without any sort of security. To prevent these breaches from occurring, have an enforceable policy, such as timed computer locking, that is effectively communicated to all of you your employees.

New Employee Access to Old Information

In recent years, there have been decreases in data breaches stemming from old hard drives in sold or discarded computers. However, in- office data breaches have seen an increase. Frequently, new employees are able to access information from an old employees computer that is not meant for their eyes.

To avoid these breaches, all computers need to be completely cleared of any data from the previous user before given to a new employee.

Information Stored on Unexpected Memory Drives

In today’s world, more things seem to have memory drives than not - it no longer just computers. Make sure everything in your office with a memory drive is cleared off before being reused, sold or thrown out. This includes cell phones, printers, copiers and even fax machines!

Data breaches are serious and can get a company into more than a little trouble. Do not be reactive. Put in place security policies, communicate them, and enforce them.

USCIS Penalties

If there is an issue, the USCIS is no longer filing cases as civil penalties, they are now being brought under criminal
code. Standard penalties are:

• Poor documentation can cost up $1,000 per employee
• Knowledgeably hiring an illegal immigrant can cost up to $10,000

USCIS I-9 Form Compliance Guidelines

Follow the below guidelines to stay clear of any legal issues and avoid USCIS penalties concerning I-9 forms.

• Make sure all new employees complete the I-9 form, specifically Section 1, on their first day of work. Do not allow applicants to complete this form before they are hired. If they are not hired, they can file for discrimination.
• Ask the employee to give you acceptable documents from the updated I-9 list. Review these documents to make sure they are up- to-date and appear legitimate.
• Regulate a uniform procedure for completing I-9 forms. This procedure should be followed by all hiring managers.
• Always make and keep copies of I-9 documentation on file.
• Set a reminder to follow up on documents with expiration dates that will limit employees’ work authorization.
• Keep I-9s and employee documentation for at least 3 years after the hire date or 1 year after the termination date.
• To protect against discrimination, keep I-9s and supporting documents separate from an employee’s personnel file.