This document summarizes the top 10 HR myths presented by Ellen Aldridge of the Nonprofits' Insurance Alliance of California. Each myth is followed by the truthful perspective, and an action item employers can take. Some myths addressed include assuming supervisors don't need HR training, that employees are "at-will" so no reason is needed for termination, and that non-exempt employees can be required to volunteer at fundraising events without pay. The document provides concise fact-checking of common misconceptions and practical steps non-profits can implement to stay compliant with employment laws.

1. Top 10 HR Myths
Presented by:
Ellen Aldridge, Esq.
Labor & Employment Risk Manager
Nonprofits’ Insurance Alliance of California NIAC
This presentation is being brought to you by the
Nonprofits' Insurance Alliance of California (NIAC) and the
Alliance of Nonprofits for Insurance, Risk Retention Group (ANI).
Both companies are 501(c)(3) nonprofits that provide specialized liability
insurance to more than 12,700 501(c)(3) nonprofits in 31 states plus D.C.

2. 2
HR Myth #10
It’s O.K. if Supervisors are only subject matter or
technical experts since the E.D. can handle any
HR matters.

3. 3
HR Truth #10
Train your Supervisors to spot employment law
issues and seek expert assistance when needed.
Make sure supervisors have solid communication
skills/tools.

4. 4
HR Action Item #10
Train Managers/Supervisors on:
1.
2.
3.
4.
AB 1825 Sexual Harassment Training
Personnel Policies and Procedures
Conflict Resolution
Performance Reviews

5. 5
HR Myth #9
We don’t need a reason to terminate our
employees because they are “at-will”.

6. 6
HR Truth #9
Document, document, document performance
and behavior issues in the workplace.

7. 7
HR Action Item #9
1. Develop a process for documenting
performance and behavioral problems.
2. Use Performance Improvement Plans
3. Evaluate employees on an Annual Basis
4. Remember, a legally sound termination should
come as no surprise.

8. 8
HR Myth #8
Employees who complain that they are
“harassed” in the workplace or are subject to a
“hostile work environment” are always legally
protected.

9. 9
HR Truth #8
Management needs to establish standards of
appropriate behavior in the workplace and
promptly investigate allegations of
unlawful discrimination, harassment or retaliation.

10. 10
HR Action Item #8
Every Nonprofit should have these policies in their
Employee Handbook:
1. Sexual Harassment and Discrimination
Complaint Procedure
2. Whistleblower Policy
3. Conflict of Interest Policy

11. 11
HR Myth #7
It’s best to ignore an employee’s health issue,
because of privacy concerns.

12. 12
HR Truth #7
Employers must engage in an
“interactive process” with employees with
disabilities to determine whether there are
reasonable accommodations which would
eliminate barriers to successful performance.

13. 13
HR Action Item #7
Simple Reasonable Accommodation Process:
1. Ask, “Is there anything we can do that would
help you perform your job”?
2. Document steps you have taken to
accommodate the employee; check back in.
3. Don’t go through a formal process unless the
accommodation is difficult or there is a
question if there is a “disability”.
4. Consult with an HR expert if you have any
questions.

14. 14
HR Myth #6
It’s OK to fire employees who just don’t come to
work.

15. 15
HR Truth #6
Employees cannot be disciplined or terminated for
absences that are for legally protected reasons.

16. 16
HR Action Item #6
1. Develop a clear absenteeism reporting
procedure for planned and unscheduled
absences.
2. Include leave of absence policies in your
handbook based on those leave laws that
apply to your organization based on its size.
3. Have an attorney or HR expert review any
termination of an employee with legallyprotected absences.

17. 17
HR Myth #5
Employees get to say whatever they want on
Social Media off duty because of Free Speech
rights.

18. 18
HR Truth #5
Employers can discipline and terminate
employees for certain on and
off duty Social Media activity.

19. 19
HR Action Item #5
1. Develop Social Media Guidelines that apply to
on and off duty conduct.
2. Don’t request password access to employee
Social Media sites.
3. Develop clear ownership of the Nonprofit’s
Social Media sites and passwords.
4. Review any termination of an employee for
Social Media activity with an HR expert.

20. 20
HR Myth #4
If you’re a small nonprofit without a payroll system
it’s OK to just pay employees when the grant
money comes in.

21. 21
HR Truth #4
There are many California laws concerning the
timing and payment of employees’ wages,
benefits and business expenses that impose
penalties on employers for non-compliance.

22. 22
HR Action Item #4
1. Establish twice monthly paydays.
2. Accurately account for all hours worked with
timesheets for non-exempt employees.
3. Pay out accrued vacation upon end of
employment.
4. Pay final pay in a timely manner.
5. Track and reimburse for business expenses.

23. 23
HR Myth #3
We can designate any worker as an Independent
Contractor if they want to be a contractor and sign
an Independent Contract Agreement.

24. 24
HR Truth #3
To be properly classified as an Independent
Contractor the Nonprofit’s relationship with the
worker has to meet specific legal criteria.

25. 25
HR Action Item #3
If you answer yes to any of these questions, there is a
potential problem with an IC designation:
1. Can the worker quit or be terminated at any time
without being legally obligated for failure to complete
the job?
2. Does the worker’s manager assign, review and
supervise the individual’s work?
3. Does the worker perform services that are a part of
the regular operations of your agency?
4. Are there employees doing the exact same job?

26. 26
HR Myth #2
It’s OK to pay all employees a monthly salary.

27. 27
HR Truth #2
Only employees that meet both the “salary test”
and “duties test” can be classified as overtime
exempt under the
Executive, Professional or Administrative
exemptions of the California Wage Orders.

28. 28
HR Action Item #2
Audit all exempt classifications
1.salary basis test
2013: $33,280
2014: $37,440
2015: $41,600
2. duties test:
51% of the time the employee is performing
exempt functions.

29. 29
HR Myth #1
As a nonprofit we can require our nonexempt
employees attend our fundraising events and we
don’t have to pay them.

30. 30
HR Truth #1
Under the federal FLSA, nonprofit non-exempt
employees can only volunteer for events where
they are:
1. Not performing their regular duties, and
2. There is no detriment or benefit to employees
who do or don’t volunteer.

31. 31
HR Action Item #1
1. Clarify that volunteer opportunities are truly
voluntary.
2. Confirm that employees are not allowed to
volunteer to perform their regular duties
3. Have employees sign a Volunteer Agreement
for each separate volunteer activity.

32. 32
Thank You!
Ellen Aldridge, Esq.
Labor & Employment Risk Manager
Nonprofits Insurance Alliance of California (NIAC)
ealdridge@insurancefornonprofits.org
831-621-6078
Read my “Ask Rita in HR” columns in Blue
Avocado, the on-line magazine for nonprofits