Question: Do we pay the minimum wage of the state where our headquarters is located or the state an employee does the work?

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Answer: This comes up a lot with employers who have people working remotely or at a work site in a different state. The answer is simple: Employees should be paid the minimum wage for the state in which they work, whether this is a satellite office or their own home. Beyond that, it’s important to be aware that some cities and counties have even higher minimum wages than the state they are located in. In general, with most employment laws, you should adhere to the law that is most beneficial to the employee.

Compensation Strategy Checklist


Too many organizations are disorganized when it comes to compensation. They make compensation-related decisions in a haphazard manner that:

  • Discounts applicable laws and regulations
  • Obscures whether their approach to compensation generates appropriate ROI
  • Makes compensation and payroll management unnecessarily difficult.

This kind of ad hoc approach to compensation often results from being overwhelmed by all the related considerations. To help, The Weston Group breaks down compensation management, strategy, and compliance into component parts for business owners and executives to carefully consider. We help clarify the issues that need to be addressed and the questions that must be answered.  Things to consider include:

  • Compensation Policies
    • Have you developed a written compensation policy that guides executives and promotes consistency in compensation decision-making throughout the organization?
    • Does your compensation policy or strategy address a total compensation package that includes incentives, bonuses, and/or any other financial benefits you offer, in addition to salaries and wages?
    • Are decisions regarding compensation, promotions, and merit raises based on objective, fair criteria? Are those criteria included in your compensation policy?
    • Are any bonuses or incentive payments tied to clearly documented triggers (e.g., sales performance or profit-based measures)?
  • Compensation Strategy 
    • Have you researched and developed compensation benchmarks appropriate for your industry and geographic region?
    • Have you documented your reasoning for any one-off or unusual compensation decisions to ensure they are reasonable?
    • Do you regularly review and adjust compensation levels and plans? Note that some positions / geographic areas require regular reviews (e.g. every year).
    • Does your compensation strategy account for cost of living allowances?
    • When reviewing compensation plans, do you solicit employee feedback? For example, if you might be considering a new incentive payment program, it would be helpful to ensure the program would actually incent performance.
  • Regulatory Compliance
    • Have you audited all currently exempt positions to ensure they meet salary requirements and the duties test? Remember, job title alone does not determine employee classification.
    • Have you considered reclassifying employees, both to comply with the law and for strategic purposes? For example, it might be more cost-effective to hire additional employees than to pay existing employees significant overtime.
    • Do you have training procedures to ensure employees understand when and how they need to manage time-keeping?
    • Do you have procedures in place to ensure pay equity where required by law (e.g., you’re not systematically discriminating against a protected class)?
    • Have you reviewed pay practices to ensure they align with the Fair Labor Standards Act?
    • Have you reviewed pay practices to ensure they align with any applicable state and local laws?

This list of questions and considerations is just the start. Compensation is complicated! Fortunately, The Weston Group specializes in healthcare compensation planning.  We have seasoned (and certified) compensations available and updated salary data for all industries across the US.

Filing the Employer Information Report (EEO-1)


Filing the Employer Information Report (EEO-1) is mandatory for employers with 100 or more employees and for federal contractors with 50 or more employees, and the filing deadline for 2018 is coming up fast on March 31, 2019.


Make sure you are aware of the common filing errors:

1. Pulling data from the first quarter of 2019 rather than correctly pulling data from the final quarter of 2018.

2. Failing to count employees properly. The EEO-1 requires separate reports for each employer location with 50 or more employees. For an employer with multiple facilities, there must be a report for each facility and a headquarters report.

3. Failing to report that an employer has been through a merger, acquisition or spinoff, Patton said.

4. Excluding from the EEO-1 those employees who do not self-identify their race, ethnicity or gender.   Jay Patton, an attorney with Ogletree Deakins in Birmingham, Alabama said,  “The EEOC provides specific guidance for how employers are required to handle such situations, including a set process for visual identification. However, many employers omit such employees entirely,” 

5. Not accurately classifying job titles into the correct EEO-1 category. The EEOC provides definitions for and examples of jobs that fall within each category.

6. Failing to file the EEO-1 because of turnover in HR or a lack of awareness of the filing requirement, he observed.

Social media Posting

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We’ve become aware of a social media post by one of our employees in which he complained about his working hours and pay. The post was “liked” by several of his coworkers, one of whom commented “Preach!” and another of whom posted an angry face emoji. Can we discipline these employees for complaining about the company on social media?


I would recommend against disciplining the employees for these activities on social media as their speech is almost certainly protected under Section 7 of the National Labor Relations Act. Section 7 protects certain “concerted activity” by employees, which is activity done in concert, meaning more than one employee is involved. This kind of activity is protected if it’s related to their terms and conditions of employment (e.g., pay and scheduled hours).

In this case, because the employee complained about their pay and hours in a virtual space and other employees joined in – expressing their agreement through “likes,” emojis, and comments – the actions are clearly concerted activity and therefore protected.

I understand, however, that this sort of social media activity by employees can be frustrating. One way to reduce the likelihood that employees will air their grievances on social media is to establish a means for them to do so internally. Employee surveys, comment boxes (whether physical or online), stay interviews, and true “Open Door” policies are all ways to solicit this feedback. The key is to be willing to listen and act on the information you gather. If employees think taking their complaints directly to a manager will end in retaliation, or simply won’t lead to any change, they’re more likely to keep complaining on the internet.

Holiday Office Parties

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The Holidays are upon us and that means the season for Holiday Office Parties.   As an employer you want to take steps so it doesn’t end up like the Office Christmas Party starring Jason Bateman!

Alcohol can be a liability. Partygoers who overindulge could cause an accident at or after the party, or they might act in ways that violate your harassment policy.

You have more potential liability if the event is required instead of optional, as employers may be liable for employee misconduct and negligence when the employee is acting “in the course and scope of employment.” 

There are steps you can take to protect both yourself and your employees. Here are some practices you might consider.

  • Do not make the event mandatory and clearly communicate that attendance is optional. Make sure that managers and supervisors do not imply that failure to attend would count against the employee in any way. 
  • Avoid conducting any work-related activities, such as award presentations or company updates, at the event. To further support the non-work nature of the event, hold it off-site and outside of regular business hours and allow employees to bring a guest.
  • In advance of the event, set expectations around respectful behavior and encourage employees to drink responsibly. Remind employees that company policies, including harassment and other conduct policies, apply at the event.
  • Have a plan to ensure that no minors or visibly intoxicated attendees are served alcohol. If possible, hire professional servers (or hold the event at a staffed facility) who will, as part of their job, politely refuse to serve anyone who they perceive has had enough to drink.
  • Consider hosting a cash bar where employees purchase the alcohol. This will reduce the likelihood of a claim that the employer provided alcohol directly to employees. It will also reduce consumption.
  • Provide employees with a set number of drink tickets so that each attendee is limited in the number of alcoholic drinks they will be served (there are obvious limits to the usefulness of this tactic, but it may be somewhat helpful).
  • Avoid entertainment and event locations that may be potentially provocative, risqué, or offensive. These atmospheres, especially when combined with alcohol, may become conducive to sexual harassment.
  • Plan for how employees who have been drinking will get home. This may involve providing taxis or public transit options at no cost to the employees, arranging for group transportation, or encouraging employees to designate a driver at the beginning of the event. 
  • Provide ample food and non-alcoholic beverages, both for safety reasons and so non-drinkers know you’ve given them consideration.
  • Even if you don’t want or plan to provide taxi service, don’t think twice about calling and paying for one if an intoxicated employee has no way home other than driving themselves. This is not the time to teach employees a lesson, and from a cost-benefit point of view, it may be the best $30 the company ever spends.

While these steps will not eliminate all the risks, they can help reduce liability and help your employees celebrate the year safely and responsibly.

Is annual Sexual Harassment training required?

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Answer:    Although the EEOC does not require that employers conduct annual Sexual Harassment training; however, they do recommend it.    Take a look at the following stats and it becomes obvious why that would be a great idea.   The Weston Group can facilitate this training and also help with investigations in the work place.


  • The EEOC filed 50% more sexual harassment lawsuits in Fiscal Year 2018 than it did in Fiscal Year 2017.
  • Charges filed with the EEOC alleging sexual harassment increased by more than 12% from 2017.
  • For charges alleging harassment, reasonable cause findings increased to nearly 1,200 in 2018 compared to 970 in 2017. Successful conciliation’s (agreements reached without a lawsuit) were up to nearly 500 from 348 in 2017.
  • The EEOC recovered nearly 50% more for victims of sexual harassment through administrative enforcement and litigation in 2018; $70 million, up from $47.5 million in 2017.

Does “at-will employment” mean we can terminate without risk?

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Answer:  No, termination always comes with some risk, even when the employment is at-will. While at-will employment allows either the employer or the employee to terminate the employment relationship at any time, with or without notice, and with or without cause, it does not permit you to terminate employment based on the employee exercising a legal right or belonging to a protected class (e.g., race, sex, religion, national origin).

There’s even some risk when the termination is for cause, because a terminated employee could claim that your reasoning is just for show, and that they were actually terminated for an illegal reason. That risk grows exponentially when you don’t provide the employee with a sensible reason for the termination.

Consequently, the safest way to terminate an employee is to have documentation that justifies the legitimate business reasons behind the termination. This documentation would include infractions of policy, instances of poor performance, and any disciplinary or corrective action taken. The more you can do to show that you had a legitimate business reason, the harder it will be for an employee to fill in the blank with their own

This is a question we get from our clients often and it is so important to understand the risks.

How long should we keep employee timecards?

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Under the Fair Labor Standards Act, you are required to keep such records for at least three years from time of creation. However, we recommend that personnel records, including payroll records and timecards, be kept for seven years from the date the record is made or the date of termination, whichever is longer. That way, if you are subject to an IRS audit (which could go back seven years), you have this supporting documentation available upon request.

If you’re currently using a paper timekeeping system and you don’t want to store that much paper around the office for seven years, you can scan paper documents for electronic storage. Just make sure you have a reliable and secure method for storing this sensitive information and are able to access it as needed.

Return to Work

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An employee injured off the job would like to return to work, but we’re concerned about her safety and her ability to do the job. How should we proceed? We’re a small employer and not subject to the Family and Medical Leave Act.


What does an employer need to do if an employee is injured off the job and would like to return to work? The employer is concerned about her safety and ability to do the job? (This employer is under 50 employees so is not subject to Family and Medical Leave Act).

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