Illinois Employment LawyerBeing a business owner can be extremely rewarding and stressful at the same time. You have the benefit of knowing you are running a successful company, but with owning a business comes numerous responsibilities. One of the things you must pay attention to when you own a business is how you keep records, specifically, your employees’ records. There are numerous laws and regulations you must follow when you own a business, and there are laws about employee recordkeeping. It is important you comply with these regulations so you do not find yourself in trouble with the government.

Maintaining Personnel Files

A personnel file is one maintained for every employee’s personal information. Items that should be kept and updated in a personnel file include:

  • Employee’s name and personal information;
  • Job applications;
  • Resumes;
  • Employment offers;
  • Emergency contact forms;
  • Documents related to job performance;
  • Any warnings and formal discipline; and
  • Separate documents like exit interviews and resignation letters.

The United States Equal Employment Opportunity Commission (EEOC) states all employee personnel records must be kept for one year after the employee quits or is terminated.

Payroll Files

An employee’s payroll file should contain any and all information pertaining to their compensation history and government files. Items in a payroll file should include:

  • Compensation changes;
  • Wage garnishments;
  • Timesheets;
  • Direct deposit authorizations;
  • W-2s;
  • W-4s; and
  • Employee benefits information.

According to the Age Discrimination in Employment Act (ADEA) and the Fair Labor Standards Act (FLSA), employee payroll files must be kept for at least three years.

Medical Files

The Americans With Disabilities Act (ADA) requires an employee’s medical records to be kept separate from their personnel file. The medical file should include information about the employee’s medical history and contain information such as:

  • Medical exams;
  • Disability benefits claim forms;
  • Doctor’s notes;
  • Requests for ADA accommodations;
  • Workers’ compensation history;
  • Results from drug/alcohol tests;
  • Health insurance enrollment; and
  • COBRA notices and forms.

Contact an Illinois Employer Attorney Today

Recordkeeping is the backbone of any well-organized business. If you think you may be failing to keep up with good recordkeeping practices, talk to a Schaumburg, IL employer lawyer. If you are ever audited or need to prove you have been complying with various employment laws, good records are critical. Call the Miller Law Firm, P.C. at 847-995-1205 to schedule a free consultation.

Sources:

https://www.eeoc.gov/employers/recordkeeping.cfm

https://www.thebalancecareers.com/employee-records-1918109

https://www.dol.gov/general/topic/wages/wagesrecordkeeping

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Overtime Pay LawyerThe Fair Labor Standards Act (FLSA) is a federal law put in place in 1939 to protect the rights and well-being of American workers. While the act has changed since its inception 80 years ago, it still retains many of its original goals, such as the minimum wage, overtime pay requirements, record keeping, and child labor standards. The FLSA is an important part of the American workforce and protects the rights of most workers.

Are Employers Required to Pay Overtime?

According to the FLSA, if an employer permits or requires an employee to work overtime, that employer must pay the employee for those overtime hours. Overtime is defined as any hours worked after 40 hours in a single workweek. The FLSA also requires overtime pay be no less than the employee’s usual rate plus half.

For example, a retail worker normally makes $12 per hour. This week, they worked a total of 48 hours, meaning they have eight hours of overtime they must be compensated for. Their overtime rate would be $12 + $6, for a grand total of $18 for every hour worked over 40 hours in a week. This means the worker should receive a paycheck of $720, $576 for the first 40 hours worked, and $144 for the eight hours of overtime.

Exemptions from Overtime Pay

Though many employees are covered under these rules, not all employees are. According to the FLSA, the following are exempted from being required to receive overtime pay:

  • Executive, administrative, and professional employees;
  • Outside sales employees;
  • Employees in certain computer-related occupations;
  • Employees of certain seasonal amusement or recreational employers;
  • Fishermen and farm workers;
  • Newspaper delivery employees;
  • Certain commissioned employees;
  • Employees of certain transportation occupations;
  • Theater workers;
  • Domestic service employees living in their employer’s residence; and
  • Certain employees of non-metropolitan broadcasting stations.

Contact a Schaumburg, IL Employment Attorney

Though many employees are covered under overtime regulations, they do not apply to everyone. If you face an employee dispute related to overtime pay, contact an Illinois overtime pay dispute lawyer. At the Miller Law Firm, P.C., we can help you determine if your employee is exempt from overtime pay and assist with FLSA litigation. Call our office today at 847-995-1205 to schedule a free consultation.

Sources:

https://www.dol.gov/whd/regs/compliance/hrg.htm

https://www.dol.gov/whd/regs/compliance/whdfs23.pdf

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business law attorneys, employment attorneys Illinois, law firms, business records lawyer, Illinois lawyersEveryone who owns a business, no matter how small or large, must diligently maintain their paperwork. It is important to keep track of items for tax purposes and much more. Decent record keeping can help you monitor the success of your business, keep track of your expenses and assets, and prepare financial statements.

While well-kept records can ensure your business remains healthy, bad record keeping can get you into trouble. Here are four ways you can make things easier for yourself and keep your records in good order:

1. Have a Good Accounting System in Place

Keeping good tax records is much easier when you implement a quality accounting system. If you want accurate tax records, you need proper accounting, and that all starts with the way your records are completed and organized. There is a plethora of accounting software out there that can make the process simple, but it may be a good idea to have an experienced accountant on the job instead.

2. Make Sure You Keep the Right Records

The type of business you own will determine the type of records you need to keep. In addition to your business’ purchases, sales, payroll, and other transactions, there will be many supporting documents you should keep. This may include:

  • Cash register tapes;
  • Deposit slips;
  • Invoices;
  • Credit card receipts and statements;
  • Travel and/or transportation expenses; and
  • Documents involving employment taxes.

3. Know How Long You Need to Keep Records On-Hand

You cannot just wait a year and then throw everything out. There are specific rules you must follow to determine how long you must keep your records before you can get rid of them. The Internal Revenue Service tax code states you should keep your records for as long as they might be needed for administration of any part of the tax code. If you have employees, you must keep their records for at least four years. If you owe taxes, you must keep your records for at least three years.

Contact a Schaumburg, IL Employment Lawyer

While the way you keep your business’ records is up to you, make sure you keep precise records in accordance with all applicable laws. An Illinois employer records attorney can help ensure you follow all record-keeping standards. At the Miller Law Firm, P.C., we know how crucial keeping records is both financially and legally. Contact our office today to see how we can help your business thrive. Call 847-995-1205 to schedule a free consultation.

Sources:

https://www.thebalancesmb.com/tips-on-tax-record-keeping-for-small-businesses-393570

https://www.irs.gov/businesses/small-businesses-self-employed/how-should-i-record-my-business-transactions

https://www.sba.gov/sites/default/files/files/PARTICIPANT_GUIDE_RECORD_KEEPING.pdf

https://www.investopedia.com/university/small-business/creating-maintaining-business-records.asp

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