Effective employee management is essential for the success of any business, especially in construction. Poor hiring decisions or mismanagement can lead to wasted time, resources, and ultimately cost a company money. At Komar Luxe Design Build, we understand the importance of compliance, efficient hiring practices, and fostering an equitable workplace. This guide will walk you through key aspects of employee management and ensure your business remains compliant with labor laws.
The Costs of Poor Employee Management
Hiring the wrong employees or failing to comply with labor laws can be costly. Poor performance, safety violations, and legal penalties can drain both time and money. Avoid these pitfalls by having clear processes in place to hire and manage your team effectively.
Smart Hiring Practices
- Safety First: When interviewing candidates, ask about their safety record to ensure they align with your company’s standards.
- Reporting New Hires: All new employees must be reported to the Georgia New Hire Reporting Program within 10 days of being hired, rehired, or recalled. Failure to comply could result in fines of $25 per unreported employee and up to $5,000 for conspiracy to avoid reporting.
- Hiring Minors: Minors under 16 cannot be employed between 9 PM and 6 AM and cannot take on dangerous occupations, many of which fall under construction activities.
Compliance with Labor Laws
Employee management requires adherence to state and federal labor laws. Below are key points to keep in mind:
Employment Eligibility and Documentation
- I-9 Forms must be completed within three days of hire and kept for three years after the hire date or one year after employment ends, whichever is later.
- Employers are prohibited from discriminating based on national origin or citizenship. Violations could result in penalties ranging from $375 to $16,000 per individual case, depending on the offense level.
Fair Labor Standards Act (FLSA)
- Employers must adhere to the higher of state or federal minimum wage rates.
- Some employees, like administrative staff and outside sales professionals, may be exempt from overtime pay under FLSA.
- Willful violations of FLSA may result in criminal prosecution and fines of up to $10,000, plus civil penalties of $1,100 per violation for repeat offenders.
Anti-Discrimination Laws
- Americans with Disabilities Act (ADA) prohibits discrimination against individuals with disabilities and applies to employers with 15 or more employees.
- Age Discrimination in Employment Act protects individuals aged 40 and above from workplace discrimination.
Family and Medical Leave Act (FMLA)
Eligible employees of covered employers can take up to 12 weeks of unpaid, job-protected leave each year.
Importance of an Employee Handbook
A well-crafted employee handbook is key to preventing employee-related lawsuits. It establishes clear expectations, outlines workplace policies, and serves as a reference for addressing grievances or misunderstandings.
Workers’ Compensation and Injury Reporting
Under Georgia law, businesses with three or more employees must carry Workers’ Compensation insurance to provide monetary compensation for employees who are injured or disabled on the job.
- Employers must file an Employer’s First Report of Injury (WC-1) immediately with their insurer when an injury occurs.
- If the injury results in more than seven days of lost time, it must be reported to the State Board of Workers' Compensation within 10 days of the employer's knowledge.
- Failure to carry Workers’ Compensation may result in penalties.
Unemployment and Cobra Provisions
- Georgia Unemployment Insurance applies to businesses with at least one employee in 20 different calendar weeks or a payroll of $1,500 in any calendar quarter.
- COBRA provisions allow employees of businesses with 20 or more employees to continue their health coverage after job separation under specific conditions.
At-Will Employment
Georgia is an at-will employment state, which means an employer or employee can terminate the working relationship at any time without notice or cause. However, poor performance should be well-documented to protect against potential legal issues.
Final Thoughts
Strong employee management starts with compliance and investing in proper hiring and workplace practices. By adhering to federal and state labor laws, documenting critical processes, and fostering a compliant and positive work environment, you can avoid costly pitfalls and maintain a successful business.
At Komar Luxe Design Build, we prioritize safe, fair, and effective employee practices to drive our projects forward while protecting our teams. Ensure your business is setting itself up for success by focusing on employee management and compliance today.
