Human Resources

1. Outdated Employee Handbooks Legal Framework Updates Employee handbooks are legal documents in the eyes of courts and regulators. Yet many organizations let them fall out of date—failing to reflect critical changes in employment law.In 2025, several updates should be on your radar: New pay transparency laws require salary ranges in job descriptions and internal communications. EEOC guidance has been revised to include new language around harassment, accommodations, and retaliation policies. State-specific regulations have evolved around family leave, mental health support, and overtime policies. Legal requirements for disclosing AI use in hiring and performance management tools are becoming common. Sample Language to Revise Ensure your employee handbook includes: Clear, updated non-discrimination and anti-harassment policies aligned with EEOC guidance. Details on wage transparency: how salary bands are structured and who to contact for information. Clauses on data privacy and automated decision-making (if using AI in hiring or HR). Acknowledgment forms with timestamps and digital signature trails. Review and update your handbook annually—or more frequently if legal changes occur. Distribute revisions through your HR platform and require fresh acknowledgments from every employee. 2. Mismanaging Overtime and Classification FLSA and Exempt vs. Non-Exempt Employee classification issues continue to trigger lawsuits, wage disputes, and fines—especially when job duties don’t match exempt status or when salaried employees work beyond 40 hours a week. As of 2025: Salary thresholds for exempt employees have risen. Classification audits are increasing at both federal and state levels. Remote and hybrid roles are receiving heightened scrutiny regarding hours worked. Recordkeeping Tips Clearly define job responsibilities and compare them with FLSA and state exemption criteria. Maintain accurate time records for all employees, including those paid on salary. Audit classifications quarterly, especially for roles that evolve or shift responsibilities. Automated time-tracking integrated with payroll systems can simplify classification reviews and help flag risks before they become costly. 3. Neglecting Privacy/Data Protections Employee Data Best Practices Between I-9s, direct deposit details, benefits elections, and health disclosures, HR handles some of the most sensitive data in the company. And in 2025, new state and federal data protection regulations demand higher standards. Best practices include: Encrypting all employee data at rest and in transit. Assigning user-based permissions for access to sensitive files. Storing documentation in secure, audit-ready systems. Clearly disclosing to employees how their data is used and protected. Breach Protocols In the event of a data breach, having a documented response plan is mandatory. Your plan should include: Immediate containment steps and IT support activation. Notification timelines and formats for employees, vendors, and regulators. Review processes to assess scope and responsibility. Remediation actions to prevent recurrence. Compliance-ready HR software from trusted providers like Pinkerton Payroll & Insurance simplifies data protection and offers reliable audit trails. 4. Skipping Compliance Audits Self-Audit Checklist Skipping internal audits is one of the biggest HR compliance mistakes—especially in high-risk areas like payroll, onboarding, and classification. Every HR manager should conduct routine reviews that assess: Whether employee handbooks are current and acknowledged. If job classifications are correct and documented. Whether tax forms (W-4, I-9) are properly completed and stored. If benefits deductions are accurate and reflect current enrolments. Whether time-tracking logs are complete and align with payroll data. HR Software Audit Tools Modern payroll and HR platforms offer built-in tools that help automate and document these checks. These include: Exception reporting for missing or outdated records. Flags for classification or overtime discrepancies. Automated email alerts when forms go unsigned or data mismatches occur. To explore how integrated platforms can support your compliance goals, visit HR Services 2025, where Pinkerton outlines features designed specifically for growing businesses. 5. Incomplete New Hire Processes Form W-4, I-9 Steps Improper onboarding isn’t just inefficient—it’s a compliance risk. Every new hire must complete key documents in line with federal regulations: W-4s must reflect current tax structures and be validated against payroll records. I-9s must be completed within three days of hiring, with ID verification. In Florida, many employers are required to use E-Verify to validate work eligibility. Onboarding Policy Guide Build a consistent onboarding program that includes: Secure digital document collection and signature tracking. Time-stamped acknowledgment of handbook policies. Benefits elections that feed directly into payroll. A welcome process that reinforces compliance, culture, and clarity. Platforms like the one used by Pinkerton ensure all onboarding steps are logged, compliant, and ready for audit. How Integrated Payroll + HR Helps AI‑Powered Alerts Integrated platforms now feature smart compliance monitoring. These systems detect issues such as: Inconsistent employee classification. Missing onboarding documents. Mismatches between timesheets and exempt status. Lapsed certifications or expired IDs. These alerts reduce HR burden and prevent compliance issues from escalating. Audit Trails Every action—form completion, classification change, salary update—is logged and time-stamped. This documentation is crucial during: IRS or Department of Labor audits. Internal HR investigations. Workers’ compensation or wage disputes. Pinkerton’s platform offers robust auditing functionality—automating documentation and supporting HR risk mitigation without added administrative work. Pro Tips: Stay Up to Date Join national organizations like SHRM and subscribe to compliance updates. Assign quarterly responsibilities for compliance review among HR staff. Create a compliance calendar with alerts for audits, handbook reviews, and benefit enrollment periods. Use digital onboarding workflows that enforce completion of I-9, W-4, and benefit forms. Reevaluate job descriptions and pay bands annually to align with wage laws. Regularly test data privacy policies and breach response readiness. Maintain integrations between payroll services for small business, HR, and benefits tools. Seek legal review of key employment policies each year. Conclusion: Minimize Risk in 2025 Compliance isn’t just about avoiding fines—it’s about building a resilient, respected workplace. By addressing the top five HR compliance mistakes in 2025—outdated policies, misclassification, privacy lapses, skipped audits, and incomplete onboarding—you ensure your team is protected and prepared. Partnering with an expert provider like Pinkerton Payroll & Insurance offers the structure, tools, and compliance insights you need. Their integrated payroll, HR, and benefits services are purpose-built for SMEs in Florida, blending national-grade automation with regional experience and live local support. To simplify your HR operations, secure

The Centers for Disease Control (CDC) has issued guidance for employers that have a suspected or confirmed case of COVID-19 at their workplace. This e-Alert is a summary of the CDC’s information. Details can be found at the CDC’s website. What should I do if an employee comes to work with COVID-19 symptoms? Employees who have symptoms when they arrive at work or become sick during the day should immediately be separated from other employees, customers, and visitors and sent home. Employees who develop symptoms outside of work should notify their supervisor and stay home.Sick employees should follow the CDC recommended steps. Employees should not return to work until they have met the criteria to stop home isolation and have consulted with a healthcare provider. Employers should not require sick employees to provide a COVID-19 test result or healthcare provider’s note to validate their illness, qualify for sick leave, or return to work. Healthcare provider offices and medical facilities may be extremely busy and not able to provide such documentation in a timely manner. What should I do if an employee is suspected or confirmed to have COVID-19? In most cases, you do not need to shut down your workplace. But you should close off any areas that the sick person used for prolonged periods of time. Wait 24 hours (or as long as possible) before cleaning and disinfecting to minimize potential for other employees being exposed to respiratory droplets. Follow the CDC cleaning and disinfection recommendations. In addition to cleaning and disinfecting, you should determine which employees may have been exposed to the virus and need to take additional precautions: If an employee is confirmed to have COVID-19, employers should inform the other employees of their possible exposure to COVID-19 in the workplace but should maintain confidentiality by not revealing the name of the employee who tested positive. Employees who test positive for COVID-19 should not come to work and should isolate at home if they do not need to be hospitalized and follow the CDC recommended steps. Workplaces should follow the CDC’s recommended precautions for people exposed to COVID and tell potentially exposed employees to stay home for 14 days and self-monitor for symptoms. Employees should not return to work until they have met the criteria to stop home isolation and have consulted with a healthcare provider. If employees have been exposed but are not showing symptoms, should I allow them to work? Employees may have been exposed if they have been within 6 feet of a person with COVID-19 for a prolonged period of time. Exposed employees who do not have symptoms should remain at home and practice social distancing for 14 days. All other employees should self-monitor for symptoms and wear cloth face coverings when in public. If they develop symptoms, they should notify their supervisor and stay home. What should I do if I find our several days later, after an employee worked, that they were diagnosed with COVID? If it has been less than 7 days since the sick employee was in the workplace, you should clean and disinfect all areas used by the sick employee following the CDC cleaning and disinfection recommendations. If it has been 7 or more days since the sick employee was in the workplace, additional cleaning and disinfection is not necessary. Continue routinely cleaning and disinfecting all high-touch surfaces in the workplace. Other employees may have been exposed if they were in within 6 feet of the sick employee for a prolonged period of time (longer than 15 minutes): If an employee is confirmed to have COVID-19, you should inform the other employees of their possible exposure to COVID-19 in the workplace but maintain confidentiality by not revealing the name of the employee who tested positive.  Employees who have symptoms should self-isolate and follow the CDC recommended steps. Employees who were potentially exposed but have no symptoms should remain at home or in a comparable setting and practice social distancing for 14 days. Employees not considered exposed should self-monitor for symptoms. If they develop symptoms, they should notify their supervisor and stay home. When should an employee suspected or confirmed with having COVID-19 return to work? Employers do not need to require a sick employee to provide a negative COVID-19 test result or healthcare provider’s note to return to work. Employees with COVID-19 who have stayed home can stop home isolation and return to work when they have met one of the following criteria: Persons with COVID-19 who have symptoms may return to work if: They have gone at least 3 days (72 hours) without a fever and have improvement in respiratory symptoms (cough, shortness of breath); and At least 10 days have passed since their symptoms first appeared. OR They have no fever and They have improvement in respiratory symptoms (cough, shortness of breath), and They have negative results from at least two consecutive COVID tests done at least 24 hours apart. People who test positive for COVID-19 but don’t have symptoms may return to work if: At least 10 days have passed since the date of their first positive COVID-19 test assuming they have not subsequently developed symptoms since then. OR They have negative results from at least two consecutive COVID tests done at least 24 hours apart. FUBA members with questions about COVID-19 can call us at 800-262-4483 or email our experts for assistance. Click here for FUBA’s dedicated Coronavirus Resources page for Florida businesses.

Employers are required to report the amount of qualified sick and family leave wages paid to employees under the Families First Coronavirus Response Act (FFCRA) on Form W-2, according to guidance from the IRS and the U.S. Treasury Department. The guidance was provided in Notice 2020-54, issued by the agencies on July 8, 2020. Reporting FFCRA Compensation on the W-2 Employers will be required to report FFCRA leave compensation in either Box 14 of Form W-2, or in a statement provided with the Form W-2. The reporting requirement provides self-employed individuals who are also employees with the information necessary to claim sick and family leave tax credits for which they are eligible. According to the Notice, these individuals must also report on Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals, included with their income tax returns. The guidance provides employers with optional language to use in the Form W-2 instructions for employees, explaining that the FFCRA leave wages may limit employees’ tax credits for FFCRA leave with respect to any additional self-employment income. Employee Leave Under FFCRA The FFCRA requires covered employers to provide employees with up to 80 hours of paid sick leave and up to 10 weeks of partially compensated leave under the Family and Medical Leave Act for specified reasons relating to COVID-19. Employers may take a dollar-for-dollar reimbursement through tax credits for all qualifying wages paid under the FFCRA. Applicable tax credits also extend to amounts paid or incurred to maintain health insurance coverage.

Even as stay-at-home orders and restrictions are lifted, daily operations won’t be business-as-usual for many across the country. The coronavirus (COVID-19) pandemic is still going on, despite businesses reopening. Moreover, public health officials and experts are warning of a potential second wave of COVID-19 cases. Of course, no one knows if or when a second wave of infection will strike—or whether it will be as bad as or worse than the first wave. As such, businesses across the country should start planning today so they’re properly prepared for a second wave of COVID-19 cases. Review Federal, State and Local Guidance Similar to the first wave of COVID-19 cases, governmental guidance will play a large role in how your organization should respond to a second wave of COVID-19 cases. The COVID-19 pandemic has impacted states and regions in different ways. A second wave of cases may follow the same suit, affecting different regions at different times and in varying capacities. This means that businesses in one region may be able to remain open, while businesses in other regions may need to close or adjust for a second time. As such, it’s critical to understand and continually review all relevant state and local orders to determine if your business needs to take action in the face of a second wave of COVID-19 cases. Review Your Organizational Risks Even if there aren’t federal, state or local recommendations to close your business or make changes to prevent the second spread of COVID-19 cases, that doesn’t mean your organization is safe from the coronavirus. What’s more, some businesses may have greater exposures than others, underscoring the importance of performing a thorough risk assessment to determine how you should respond.   Similar to conducting a risk assessment for planning to reopen following the first wave of COVID-19 cases, your organization should conduct a risk assessment in preparation for a reemergence of COVID-19 cases. While the complexity of risk assessments will differ from business to business, they typically involve the following steps: Identifying the hazards—When it comes to planning for a second wave of the coronavirus, businesses need to think critically about their exposures, particularly if an infected person entered their facilities. When identifying hazards, it’s a good idea to perform a walkthrough of the premises and consider high-risk areas. It’s also important to consider what tasks employees are performing and whether or not they are especially exposed to COVID-19 risks when performing their duties. Deciding who may be harmed by a second wave of cases and how—Once you’ve identified hazards to your business, you need to determine what populations of your workforce are exposed to COVID-19 risks. When performing this evaluation, you will need to make note of high-risk individuals (e.g., staff members who meet with customers or individuals with preexisting medical conditions). Assessing risks—Once you have identified the risks facing your business, you must analyze them to determine their potential consequences. For each risk facing your business, you’ll want to determine: How likely is this particular risk to occur? What are the ramifications should this risk occur? When analyzing your risks, consider potential financial losses, compliance requirements, employee safety, business disruptions, reputational harm and other consequences. Controlling risks—With a sense of what the threats to your business are, you can then consider ways to address them. There are a variety of methods businesses can use to manage their risks, including: Risk avoidance—Risk avoidance is when a business eliminates certain hazards, activities and exposures from their operations altogether. Risk control—Risk control involves preventive action. Risk transfer—Risk transfer is when a business transfers their exposures to a third party. For preparing for a second wave of the coronavirus, control measures could include cleaning protocols, work-from-home orders and mandated personal protective equipment (PPE) usage. Monitoring the results—Risk management is an evolving, continuous process. Once you’ve implemented a risk management solution, you’ll want to monitor its effectiveness and reassess. Remember, the COVID-19 pandemic so far has been rapidly evolving, and guidance can change quickly. Your business should be prepared to take action at short notice. Maintain Workplace Safety Maintaining workplace safety is crucial to preventing the spread of COVID-19 at your organization, and will continue to be crucial in protecting your organization against a second wave of COVID-19 cases. There are a number of OSHA and Centers for Disease Control and Prevention (CDC) workplace controls to consider if your risk assessment determines that COVID-19 poses a threat to your employees or customers. For instance, you should: Implement administrative controls—Typically, administrative controls are changes in work policies or procedures that reduce or minimize an individual’s exposure to a hazard. An example of an administrative control for the coronavirus is establishing alternating days or extra shifts that reduce the total number of employees in a facility at a given time. Utilize PPE—Businesses should focus on training workers on proper PPE best practices. Employees should understand how to properly put on, take off and care for PPE. Training material should be easy to understand and must be available in the appropriate language for all workers. Consider engineering controls—Engineering controls protect workers by removing hazardous conditions or by placing a barrier between the worker and the hazard. For COVID-19, engineering controls can include: Installing high-efficiency air filters Increasing ventilation rates in the work environment Installing physical barriers, such as clear plastic sneeze guards Screen employees before they enter the building— To keep employees safe, consider conducting screening procedures to identify potentially ill employees before they enter the workplace. The Equal Employment Opportunity Commission permits employers to measure employees’ body temperatures before allowing them to enter the worksite. Any employee screening should be implemented on a nondiscriminatory basis, and all information gleaned should be treated as confidential medical information under the Americans with Disabilities Act—specifically, the identity of workers exhibiting a fever or other COVID-19 symptoms should only be shared with members of company management with a true need to know. Be sure to notify employees of this practice prior to implementation in

Under a new federal law effective June 5, 2020, the requirements for PPP loan forgiveness have been relaxed in favor of small businesses. The new rules are: More time to use the loan: Instead of having to use your PPP loan in the 8 weeks after you get it, the new law gives you either 24 weeks or until the end of this year (whichever is earlier) to use your PPP loan.  More flexibility on how you spend your loan: The old PPP rules required you to use at least 75% of your loan on payroll costs (salary/wages, health insurance, retirement, paid leave, and unemployment taxes) and no more than 25% on certain non-payroll costs (rent, utilities, and mortgage interest). The new rules require you to spend only 60% of your loan on payroll costs and allow up to 40% on the approved non-payroll costs. This is a very helpful change for small businesses who were not able to reopen but who were still obligated to pay their rent and utilities.  Longer to pay back your loan: Any portion of your PPP loan that is not forgiven will be converted to a loan. New PPP loans approved after June 5, 2020 will be for 5 years. Existing PPP loans are for 2 years, but you can negotiate with your lender to change it to a 5-year loan.  No penalties for reducing employee count and/or employee wages: Your PPP loan forgiveness can be reduced if you have fewer employees or lower employee salaries after receiving your loan than you did before the pandemic. To read more about PPP loan forgiveness reduction, click here and scroll down to #3) Forgiveness amounts can be reduced two ways. Under the new rules, you now have until December 31, 2020 to restore employees and wages to your pre-pandemic levels and still get loan forgiveness. The new law allows you to get full forgiveness if you can document that you are unable to re-hire employees who were on your payroll as of February 15, 2020 and you can’t hire similarly-qualified individuals to fill their positions by December 31st. Also, if you can document that you can’t go back to your pre-pandemic staffing level because your business is complying with worker or customer social distancing measures, your loan forgiveness will not be penalized. We expect a lot more guidance from the Small Business Administration on this topic in the near future.  Payroll tax deferral: Businesses who receive PPP loan forgiveness are now eligible to defer the employer’s share of employee payroll taxes over the next two years. See FUBA’s coronavirus resources page for an explanation of how this payroll tax deferral works. If you have questions about your PPP loan or forgiveness, you can ask our expert staff and we will assist you.­ Email us at fuba@fuba.org or call us at 800-262-4483. FUBA’s coronavirus resources page for small businesses is constantly updated and can be found here.