Tracking time off

Editor’s note: This is the second in a series of stories on the most serious HR mistakes landscape contractors make. In the coming months, Lawn & Landscape will cover: discrimination, the Fair Labor Standards Act, OSHA violations, time sheets, workers’ compensation, wrongful termination, employee handbooks and retaliation.

Many landscapers severely underestimate the scope, complexity and financial impact of employee leaves of absence. Depending upon the size of the company and the state(s) in which it conducts business, there could be 15-20 different types of employee leaves of absence that must be communicated, documented and managed to remain legally compliant. Failure to maintain compliance can produce significant legal costs to the company, and in several cases, financial costs can even be applied against the employer’s personal assets.

Leaves of Absence
There are three categories of leaves of absence: federal, state and employer discretion (e.g., vacation, sick leave, personal time off).

With those categories in mind, it is critical for a landscape company to identify all leaves of absence that impact its business operation, specify precise compliance routines for each type of leave and document the exact steps the company takes every time an employee uses a leave of absence. Beyond the large number of leave programs – everything from vacation to military leave to religious observances – that must be managed, this issue is further complicated by state and federal laws that address similar functions (e.g., medical, pregnancy, military) yet have very different legal requirements that must be upheld.

Penalties
The penalties related to leaves of absence violations are usually related to one of three employer errors: negligence, improper administration and retaliation. Negligence is when the employer does not offer, communicate or approve the available leaves of absence as defined by law.

Improper administration is evident in those situations where the employer does not abide by the legal procedures outlined by the particular leave of absence program.

When it comes to retaliation, many recent court decisions have ruled in favor of employees based on employer comments – “Aren’t you back from medical leave yet?” – or documenting the leave of absence in an employee’s job performance review.

Likely penalties include employee reinstatement, back pay and reimbursement for lost benefits.

Best-in-Class Practices
In an effort to reduce the company’s financial risk, here are some best practices used by top landscapers.

Training. Best-in-class companies train all appropriate staff (e.g., administrative, human resources, supervisors) on how to identify, discuss and review relevant leaves of absence.

Communication. In addition to having all required state and federal employment posters in place, companies should have an employee handbook that addresses each available leave of absence, stipulates an anti-moonlighting standard while on leave, cites a rolling 12-month timeframe for using certain leaves of absence and has each employee sign an arbitration agreement.

Policies. Develop formal policies to ensure compliance with each type of leave of absence to include: specific compliance standards, definition and duration of each leave of absence, employee eligibility standards, justification for taking each leave, impact on pay and seniority and benefits.

Conclusion
Landscape companies typically view the extent of leaves of absence as being vacation leave, sick leave or workers’ compensation. That is not the case. By addressing this topic proactively, owners can improve their legal compliance, minimize legal risk to their companies and reduce their own personal financial liability.
 

The author is an industrial psychologist with the Harvest Group, a landscape consulting group. Send your HR questions to cesare@gie.net.