Human Resource Management and the Law

Way back in 1965, I assumed my first management position – managing a grand total of four people. I was young, naïve, inexperienced and anxious to learn. Back then, there were only a handful of laws that governed personnel management (human resource management). You could ask literally any question you wanted during an interview, and if you wanted to fire someone, you just did!

Oh my, how things have changed!

I'm tempted to comment on this, but I won't because it would serve no purpose. The fact is, like the situation or not, we have to learn to live with the human resource management laws of today.

Over the past 40 years, I've learned that good human resource (HR) management is a learned skill. And there's a lot to it.

In past columns, I've stated that if you hire the best, train the best, communicate the best, motivate the best and compensate the best, then you'll enhance the probability that you'll be the best.

My experience in traveling the U.S. and Canada tells me that many small business owners – and that's who makes up the kitchen and bath industry – are poor HR managers. Many kitchen and bath dealership owners evolved into their current roles. They never really planned to be owners or bosses. It just happened!

The typical kitchen and bath dealer does $1.5 million in annual sales and employs six to eight people. Kitchens represent 80% of their total revenue; the owner works 60 hours a week (on a good week) and represents between 75% and 80% of total sales.

Owners usually wear more management hats than should be expected. There's financial management – budgets, P&L statements, balance sheets, job costing, cash flow management and the like. There's also marketing management – advertising, promotion and public relations. And then there's HR management, with all the many areas of responsibility that go along with it.

Wow! No wonder so many owners of kitchen and bath design firms are stressed out!

In this column, I'll simply touch on several of the laws you need to know. If there are any of which you don't have at least a basic understanding, do your homework! You can save yourself and your business a lot of heartache – and money – if you understand the legal landscape.

I know you've heard about the multi-million-dollar employee lawsuits currently broadsiding American businesses. As a business owner or manager, you're continually faced with the challenges of hiring, appraising, motivating, disciplining and occasionally firing employees. All these activities can catapult you headlong into a law, regulation or court decision that may put you and your company on the wrong side of an employment issue – and in harm's way.

Inadvertently, you could become the target of a government agency. Or, you could find yourself bearing the brunt of a costly legal action by a disgruntled former employee – or even an individual who never made it past the initial employment interview.

That's why it's so important to take a close look at the employment laws by which you must abide. You should be fully aware of the major ones. And you should seek professional counsel before you get bogged down in expensive claims.

Here are the key areas to examine, and for which to prepare your business:

• State and Local Laws. It seems like everyone is getting into the act these days! What to do? First, call the local and state offices that handle labor matters in your area. They may have different names across the country, but they're easy to identify in phone book listings of government agencies.
  Ask for information on wage and hour, fair employment practices and whatever other issues about which you seek information. You can also consult with local attorneys who specialize in HR issues.
• The Four Posters. All companies must post at least four notices to their employees: Federal Minimum Wage (Fair Labor Standards Act); Equal Employment Opportunity (this covers civil rights and age discrimination); Job Safety and Health (Occupational Safety and Health Act – OSHA); and the Employee Polygraph Protection Act.