Paychex HR and Payroll Services in Glendale, California

Considerations for California Employers While Preparing to Bring Employees Back to Work

This is not an exhaustive list. It is an addendum to the Paychex Return to Work Checklist. Employers should consult with their HR professionals, legal counsel where appropriate, and California’s Labor and Workforce Development Agency and COVID-19 websites.

☑ Guidance on re-opening businesses

This impacts employers seeking loan forgiveness for their Paycheck Protection Program loan.

☑ What date should employees be recalled or rehired?

This impacts employers seeking loan forgiveness for their Paycheck Protection Program loan.

☑ Know how to address any changes that have been made to federal, state, or local paid leave laws

Familiarize yourself with the Families First Coronavirus Response Act to be prepared if employees are unable to return or need to take time off after returning.

☑ Understand the obligations under a collective bargaining agreement (CBA) if you have unionized employees

Check CBA for rehire/recall language, including agreed upon factors in order to bring employees back. Most changes will need to be negotiated with the union.

☑ If an employee was terminated and signed a separation agreement, check the language to see if the rehire requires an amendment to the separation agreement

☑ Consider providing letter offering return to work or re-hire to employees

☑ Review and adhere to internal policies on rehiring to determine any reinstatement of accrued PTO or vacation time

☑ Provide a new Form W-4 in case the employee wants to make changes upon returning to work

☑ Ensure “new hire” employee documents (i.e. employee handbook, arbitration agreement, etc.) are updated and properly executed

☑ Does the employee need to update an existing Form I-9 or complete a new Form I-9?

Review and compliance requirements for Form I-9.

☑ Did employee elect COBRA, State Continuation, or other health insurance conversion rights?

☑ Determine status of health plans, cafeteria plans, and other fringe benefit plans, such as vision and dental insurance

☑ Determine implications for 401(k), 403(b), and pension plans

Of note, California businesses with more than 100 employees need to implement a retirement plan by Sept. 30, 2020 to be compliant with the state-mandated program, CalSavers.

☑ Evaluate executive compensation and severance arrangements

☑ Consider appropriate actions related to COVID-19 health pandemic

Learn what new supplemental policies on safety are recommended or required to be followed and documented. For example, what measures to promote social distancing in the workplace and safety equipment such as masks and gloves will be provided.

Additional considerations as you prepare to return employees to work include applicable wage and hour laws, especially if employees have different work schedules, pay, and classification under state and federal laws.

Additional state guidance for California businesses can be viewed on our COVID-19 state resources tool.

A bill making its way through the California Senate would require certain types of businesses in the state to provide employees with multi-week work schedules at least seven calendar days in advance of the first shift on that schedule. Supporters of the bill, including several workers' rights groups, say the legislation will help curb abusive scheduling practices by restaurants, retailers, and grocery stores.

SB 878 cleared the Senate Labor and Industrial Relations Committee on April 13 after a 4-1 vote, and is before the Senate Appropriations Committee as of this writing.

The bill as currently written would require restaurants, retailers, and grocery stores to provide a work schedule of at least 21 consecutive calendar days to each of their workers, and to provide the schedules at least 7 calendar days before the first shift on that schedule. In other words, a store clerk, restaurant server, or coffee barista would have knowledge of their scheduled work hours over the next 28 days—a big difference in industries known for calling workers in or sending them home on short notice.

Employers who change the published schedules on short notice would have to pay "modification pay" at the employee’s regular rate of pay.  This would apply if a change is made fewer than seven days but more than 24 hours before the scheduled shift.  The modification pay would increase to an amount equal to or greater than half of the employee’s scheduled hours for the modified shift, where the change is made less than 24 hours before the start of the shift.

If a worker is on-call but not called in, employers must also pay modification pay equal to or greater than half of the employee’s scheduled hours for the on-call shift, at the employee’s regular rate of pay.

However, modification pay is not required where the change is made due to special circumstances  , including power or water issues, natural disasters, or even another employee calling in sick on short notice.

Employers are also required to display a poster that will be developed by the labor commissioner or face a $100 fine for every willful violation of this notice requirement.

The California Senate is considering this proposal about a year and a half after the San Francisco Board of Supervisors passed a "Retail Workers 'Bill of Rights." The rules, which went into effect in October 2015, generally require two weeks’ notice of work schedules and also modification pay for changes made within seven days of the scheduled shift or on-call shifts in which there was no work available.

Scheduling legislation has also been proposed in nearly a dozen other states in recent years, according to the National Women's Law Center. And Democrats in Congress have been pushing for a Schedules that Work Act; a proposal that could get some traction if Democrats take back control of the Senate, or perhaps even the House after the 2016 election.

Workers’ rights advocates have been increasingly complaining about unpredictable scheduling.

About 17 percent of the U.S. workforce experiences unstable work shift schedule, according to the Economic Policy Institute. Low income workers are more likely to face such unpredictability, which raises the chances of work/family conflict.

In April, New York State Attorney General Eric T. Schneiderman joined attorney general offices from seven other states and the District of Columbia to complain to major retailers about their use of on-call shifts. Said their letter: "Unpredictable work schedules take a toll on employees. Without the security of a definite work schedule, workers who must be 'on call' have difficulty making reliable childcare and elder-care arrangements, encounter obstacles in pursuing an education, and in general experience higher incidences of adverse health effects, overall stress, and strain on family life than workers who enjoy the stability of knowing their schedules reasonably in advance."

Visit Paychex WORX for updates on California SB 878 and other legislation that could potentially affect your business.

Establishing a small business internship program can offer many potential benefits. Often college students or recent graduates can bring fresh perspectives, while training interns offers a unique management opportunity for current employees. But bringing on an intern for your business, like any other process, requires careful consideration. Let's take a look at not only how to find interns and potentially add to your future talent pool, but also identify potential internship requirements and best practices to be mindful of before starting such a program.

Determine Timeline, Budget, and Team Needs

A business may initially consider bringing on interns for a specific upcoming project or initiative. In such cases, it's a good idea to outline the project's scope and requirements, identify necessary tasks, and which skills are required. For example, a summer-long technical project may warrant bringing on interns who are computer-savvy and demonstrate strong attention to detail.

Another consideration is your budget, if any, for bringing on interns. Some internships should be paid while others may be unpaid, such as students receiving college credit in lieu of monetary compensation. There are many state and/or federal wage and hour rules to consider if you decide to bring interns into your organization. At the federal level, there are multiple factors that determine whether interns in the for-profit sector may be paid or unpaid by focusing on the primary beneficiary of the relationship. These factors include:

• Whether the internship provides training similar to what the intern would receive in an educational institution;
• Whether the internship accommodates the intern's academic commitment(s) and calendar; and
• The understanding of all parties concerning compensation, among other criteria.

When this analysis indicates that an intern would also be an employee, the intern is entitled to minimum wage and overtime pay under the Fair Labor Standards Act (FLSA). Additional state and local laws could provide additional clarification on internships.

In instances where interns are paid, these wages should be factored into your budget for an internship program. This will also require your interns to complete any necessary new-hire paperwork, such as Form I-9, Form W-4, and any other employment forms required before they begin work.

You may want to consult with an HR professional or legal counsel to ensure your internship programs and supporting agreements comply with federal, state, and local wage and hour laws.

Connect with Local Colleges

Once you've outlined business needs for bringing on additional help, where can you find interns? Colleges and educational institutions are great places to connect with students who are ready to get some hands-on work experience. Cultivate relationships with local colleges and universities by reaching out to the institutions' career development centers, advertising internship openings on their job boards, and attending job fairs.

Communicate Your Internship Opportunity to Students

Similar to recruiting an employee, reaching out to a potential intern requires communicating about opportunities via thorough descriptions. This is where you can outline responsibilities, the type of work they will take on, timeframes (e.g., May-September during a school's summer break), whether the internship is paid, and other pertinent information. Much like crafting a job description for an employee, make sure you can answer questions such as:

• What are the goals of the internship and what specific duties and functions will the intern take on to achieve them?
• Is there any previous skill set or current program of study the person needs to succeed in the role and add value?
• Where will the person work, and during what hours?
• Which team will the intern support?
• What tools, software, or technology resources will the intern be provided with to achieve the goals of the internship?
• Is there the opportunity to bring an intern on as an employee following the completion of their internship?

The more detailed your description, the better you can communicate your needs and find the right intern. Otherwise, unclear expectations can lead to interns bouncing back and forth between teams, sitting idly with nothing to do, and developing a less-than-favorable impression of your business.

Once you have a solid description for an internship opening, post the listing with local colleges, as well as on websites that post about internship opportunities, career pages, and social networks. Encourage current employees to also reach out to their alma maters to help spread the word.

Start the Intern Selection Process

A thorough vetting process, much like hiring a full-time employee, is crucial to selecting an intern. The intern selection process may involve initial phone screenings to weed out unqualified applicants, in-person interviews to assess their capabilities, and even a meet-and-greet with the team to get a sense of future dynamics. Anyone involved in the interviewing and selection process should be mindful of the fact that this person likely has limited (or zero) job experience, so questions should reflect this. They may include:

• What do you hope to learn as an intern?
• What made you interested in your current field of study?
• What are your future career aspirations?
• Can you talk about a recent school project you worked on?

Anyone involved in the interview process should also be mindful of questions to avoid, including anything related to an individual's race, ethnicity, religion, or gender; citizenship status or place of birth; any physical or mental disability; or whether the candidate is pregnant.

Make an Offer

Just as you would extend an offer letter to a potential employee, make an offer in writing to an intern, whether it's paid or unpaid. Details to consider including in the offer letter:

• The name and location of the business
• The internship's start and end dates
• The amount of compensation you are offering if it's a paid internship (or alternatively clearly stating that the position is unpaid)
• The intern supervisor's name
• The deadline for accepting the internship

Internship FAQs

Do Interns Get Paid?

Many internships offer some form of compensation, but unpaid internships may exist in situations where the intern is the "primary beneficiary" of the agreement, per the DOL's primary beneficiary test. State and local laws should also be taken into consideration when determining whether an internship is paid or unpaid.

Do Interns Get Benefits?

While interns are generally not eligible for most company benefits, those who qualify as employees under the FLSA are typically eligible to participate in company benefit plans. As of May 2017, organizations with 50 or more employees are required to offer health benefits to any individual working 30 or more hours per week once they have satisfied a waiting period. The law doesn't specifically outline guidance in regard to interns, but if they work 30 or more hours per week and have satisfied the waiting period, interns must be offered coverage. Make sure to review your company policies prior to bringing on any interns.

What's the Difference Between Intern vs. Employee?

As stated above, there are federal and state guidelines that help organizations classify an intern vs. employee. But at the basis of an internship policy, an internship's purpose is to provide a student or recent graduate with training for a specific period of time similar to what would be given to them in an educational setting. The experience is for the benefit of the intern. On the other hand, an employee is hired to perform specific tasks for the benefit of their employer in exchange for compensation and benefits.

Do Internships Always Lead to Jobs?

Not necessarily. Internships are a great way for students to build connections within a company, demonstrate their abilities, and generally get their foot in the door. But there is no guarantee that an intern will receive a job offer.

Can a Company Revoke an Internship Offer?

An employer has the right to rescind an internship offer for almost any reason, unless it's based on discriminatory factors such as gender, race, etc. If the individual fails a background check or drug test, this could also lead to a revoked internship offer as part of the company hiring policy.

Can an Intern Get Fired?

It's possible for internships to end prematurely, but how businesses choose to handle subpar intern performance can vary. Some businesses will simply wait out the duration of the internship and wish the student well at the end of it. Others may choose to dismiss an intern before their last day. That said, internships are learning experiences, and it's important to provide opportunities for interns to learn from their mistakes. However, actions such as continually showing up late (or not at all), stealing or committing illegal acts, or exhibiting inappropriate behavior may all be grounds for immediate dismissal.

How Long is an Internship?

Internships last for a specific period of time, typically anywhere between a few months to half a year. An internship that lasts for a short duration, such as during a summer break, can be beneficial if there's a project that will have a definite end date. At the same time, a longer internship offers more time for training and additional opportunities to further develop an intern's skills.

Get the Most from Your Internship Program

An effective internship program can help students and recent graduates see what it's like to work at your company, explore different departments, and gain valuable work experience. And with today's competitive hiring landscape, interns can offer a helping hand to over-capacity departments, and be a great strategy for building a solid candidate pool for future job openings.