Category Archives: hr outsourcing

Should you Hire or Outsource HR?

A question we often get is, “Should I hire a full-time HR person or outsource my HR?” It’s a really important question and we wanted to address it on the blog today. In general, HR is a critical part of any business operation. So much gets wrapped up in the HR seat, it’s often responsible for: maintaining morale, culture, hiring, firing, delivering employee handbooks, ensuring compliance, and more.

However, many firms decide not to have a full-time, dedicated HR person. Instead they’ll opt to delegate the task among several employees, all who may know a little bit about HR laws and guidelines, but may not know enough of the nuances to keep a company in compliance and help it reach its full potential.

So is there are “right way to do it”? Not necessarily, but there is a “right” solution that best fits your organization. We think there are three primary ways a business can set up their HR department; none of them are “right” or “wrong”, it’s just about finding the option that best fits the employer.

1. Hire a full-time HR person.

This is pretty self-explanatory, you can hire an in-house HR person that focuses solely on managing and executing HR. We think having an in-house HR person may be best for growing companies that have 55-70 plus employees. These organizations are large enough that they really do require the support of a full-time HR person or HR team.

2. Outsourced HR.

If you hop on Google and look for an outsourced HR solution, you’ll find hundreds of them. Very few of them are really good but there’s an unending supply of them. These outsourced HR companies will help you with all the baseline HR tasks: handbooks, compliance, access to form libraries and policies. They can even help with employee agreements like hiring or separation agreements. Often they’ll provide ongoing support through a call center or email.

The main drawback is as a user is you’re left on your own to navigate their system and, because these tech HR companies are so massive, it can be difficult to get someone on the phone to answer your questions directly.

3. Full-service, outsourced HR.

Full-service, outsourced HR provides the same benefits as the outsourced HR department, but you get much more value because you would have a proxy HR department but not on your payroll.

These type of firms, can step in, get to know your team, and help with culture, morale, interviewing, hiring, terminations, conflict resolution, etc. And a lot of times they’ll even work directly with the employees and help drive your HR initiatives. We think this is how you get the best of both worlds.

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There’s really no right or wrong way to do this. Every company is going to set up their HR department differently, based on the size of their company and their objectives. Sometimes it’s about finding the best combination of the two, depending on the needs of the company.

At CorpStrat, we offer full-service, outsourced HR. If you have questions about how to best set up your HR department, let us know. We’re here to help. marketing@corpstrat.com

2020 Updated Employment Laws for California Employers

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2020 Updated Employment Laws 2020 is here, which means that along with a fresh start comes an onslaught of new laws. To help guide your business in the new year, here is a guide to important California employment laws that will be going into effect this year.

Wage-Hour

AB 5: Independent Contractor ABC Test

AB 5 codifies the “ABC” test from the Supreme Court of California case, Dynamex Operations West, Inc. vs. The Superior Court of Los Angeles. The test classifies workers as either employees or independent contractors under the California Wage Orders. As of January 1, 2020, a worker must meet all three requirements put out in the ABC test in order to be categorized as an independent contractor.

Here is a breakdown of AB 5 and the ABC Test.

Minimum Wage and Minimum Salary Increased

Since January 1, 2020, the California state minimum wage has increased to $12/hr for employers with 25 or fewer employees and $13/hr for employers with 26 or more.

In conjunction with the increased state minimum wage, the minimum salary permitted in California will increase to $49,920 annually for employers with 25 or fewer employees and $54,080 annually for employers with 26 or more.

In addition, cities within California have their respective minimum wage increases; for example, Los Angeles, Pasadena, and Malibu have increased their minimum wage to $14.25.

Privacy

California Consumer Privacy Act

As of January 1, 2020, the California Consumer Privacy Act of 2018 (“CCPA”) has officially gone into effect. The CCPA aims to give California consumers increased transparency and control over how businesses use and share their personal information. The law affects a wide range of businesses as it applies to all business entities in California and those collecting consumers’ personal information.

Businesses subject to the CCPA must at minimum:

Provide notice to consumers (on data collection practices) at or before data collection.
Create procedures to respond to requests from consumers (to opt-out, know, and delete).
Respond to requests from consumers within specific timeframes.
Verify the identity of consumers who make requests.
Not sell personal information of consumers under the age of 16 without explicit consent.

Businesses that do not comply with the proposed regulations in the upcoming new year will face civil damages that could total up to $1 million.

Discrimination and Harassment

SB 188: Discrimination Based on Protected Hairstyles

SB 188, also known as the Creating a Respectful and Open Workplace for Natural Hair (CROWN) Act, prohibits discrimination based on race-based hairstyles. Effective as of January 1, 2020, the bill enforces that an employer may not withhold or terminate employment or promotion based on a job applicant’s or employee’s hairstyle. Protected hairstyles include braids, dreadlocks, and twists.

Learn more about SB 188.

AB 9: Statute of Limitations for FEHA Claims Extended

AB 9, effective since January 1, 2020, extended the deadline for a person alleging unlawful discrimination, harassment, or retaliation in violation of the California Fair Employment and Housing Act (FEHA) to file a verified complaint with the California Department of Fair Employment and Housing (DFEH) from one year to three years from the date of the occurrence.

SB 788: Extended Deadline for Sexual Harassment Prevention Training

The deadline for employers with five or more employees to provide sexual harassment prevention training has been extended from January 1, 2020 to January 1, 2021.

Learn why you should start sexual harassment prevention training now.

Arbitration Agreements and Separation/Settlement Agreements

AB 51: Mandatory Arbitration Agreements Banned

Under AB 51, California employers are prohibited from requiring employees and applicants to sign arbitration agreements as a condition of employment, continued employment, or the receipt of any employment-related benefits. This law applies to contracts for employment entered into, modified, or extended on or after January 1, 2020.

It also states that employers may not retaliate against an employee or applicant who refuses to sign an arbitration agreement.

AB 749: No More “No Rehire” Provisions in Employee Settlements

“No Rehire” provisions will no longer be allowed in employment settlement agreements. Under AB 749, a settlement agreement may not restrict or prohibit a settling party from getting rehired with the employer or its parents, subsidiaries, affiliates, divisions, and contractors.

This new law applies to the “aggrieved party,” or those have filed a claim in court or through the employer’s internal complaint process. For employees who have engaged in sexual harassment or assault, the law will not apply and the “no rehire” provision can be included.

Leave, Accommodation, and Workplace Safety

SB 142: Additional Accommodations for Lactation

Effective since January 1, 2020, employers are required to provide more lactation accommodations. In addition, providing access to a sink with running water and refrigerator, the lactation room or location must:

Be close to the employee’s work area
Be shielded from view and free from intrusion; and
Have certain features, including electricity and resources necessary to operate a breast pump.

They must also create and enforce a lactation accommodation policy and make it available to all employees. It must be included in the employee handbook as well as any other materials employers distribute to new employees upon hiring. Whenever an employee makes an inquiry or requests about parental leave, the employer must inform the employee about this policy.

Failure to comply and provide a lactation room will be deemed a violation of California’s rest period laws. The employer will need to pay a premium of one hour of pay per day for each day that violation occurred.

AB 83: Paid Family Leave Extended

On July 1, 2020, Paid Family Leave (PFL) benefits that individuals can receive from California’s State Disability Insurance program will be increased from six to eight weeks.

Contact CorpStrat for any assistance you may need in ensuring full compliance with these new laws in 2020.

Now it’s the HAIR? California Law Bans Hair Discrimination

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California Anti-Discrimination

On January 1, 2020, California will become the second state in the nation to prohibit discrimination based on natural hair or hairstyles.

Covered under the CROWN Act –which stands for “Create a Respectful and Open Workplace for Natural Hair”—the bill enforces that an employer may not withhold or terminate employment or promotion based on a job applicant’s or employee’s hairstyle.

The law essentially expands the definition of “race” under both the Fair Employment and Housing Act (FEHA) and the anti-discrimination provisions of the California Education Code to include traits historically associated with race, including hair texture and protective hairstyles. These hairstyles include braids, dreadlocks and twists.

The bill declares that when hair acts as a proxy for race, discrimination targeting hairstyles associated with race is racial discrimination:

“Workplace dress code and grooming policies that prohibit natural hair, including afros, braids, twists, and locks, have a disparate impact on Black individuals as these policies are more likely to deter Black applicants and burden or punish Black employees than any other group.”

The New York City Commission on Human Rights (NYCCHR) released a similar enforcement guidance identifying discrimination based on natural hair and hairstyles as a form of race discrimination earlier this year.

With the human resources landscape becoming more challenging, make sure you have a fully compliant HR strategy and team, like CorpStrat, to help with any and all issues in the new year.

The Uncertainty of Googling HR Issues

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Why Googling HR Issues Is A Bad Idea:

In a recent conversation with a client, we spoke of employees having access to the internet. We both agreed that this can be a blessing or a curse depending on the day of the week in the HR world. Prior to working with CorpStart HR, this client said their company handled information on employment laws and other topics one of two ways:

Googling it themselves, or
Calling an attorney.

Calling their attorney was often a good experience. As a trusted advisor with extensive knowledge of their business, they knew they could trust the information being provided. At times this became cost prohibitive so they would Google the issue. This resulted in a mixed bag of opinions with a sprinkle of the law depending on the subject.

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