This was an odd week for employee issues. Another Pro called me about
her client who was facing Labor Board hearings because of an employee
who bullied him, then quit.
OK, the extent of the employee nastiness is unusual. However, the overall
situation is not - so, I'm going to alert you to the problem so you can
avoid it.
Whenever you hire someone, INSIST that they fill in and sign the Form
W-4 and the I-9 BEFORE they start doing any work at all. Make a photocopy
of their drivers license and the second identification they use for the
I-9.
Advise them before they come to their first day of work
that they must bring these documents with them. If they don't have the docs,
send them home immediately, do not let them start working. Period. No discussion.
Do not relent and let them start working, with the promise that they'll
do it later. Often, they never will.
If anyone insists on being cash - NO! Never.
If it's a hardship for them to cash checks, because more and more banks
are starting to charge $5 or more for YOUR employees to cash checks on
your account... you may cash their checks for them.
However - have them first sign the back of their paychecks and endorse
them over to your company. If possible, re-deposit the paychecks to cover
the cash you gave them - and so you have an audit trail to support your
payroll records.
NEVER, EVER just give them cash. If they refuse to be on payroll and
insist on being paid as an independent contractor in a position that
is obviously an employee position - SEND THEM AWAY - fast!
Do not hire them at all.
Ignore the sob stories.
These people are pros. They know how to work the system. If you don't
follow the guidelines above, you're also likely to find yourself before
the Labor Board or the state employment people, paying big fines and
penalties...and wages to people who are rip-off artists.
While I've rarely heard of cases as intense as the one brought to me
this week, I have seen poor, helpless, pathetic workers work this con
on employers all too often.
And you, the employer, will rarely get off with less than a $5,000
hit - non-deductible to you, because penalties are not deductible. While
they get off with free money - because the penalties are not taxable
to them.