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Hiring in Northern Michigan - An Employer's Guide

Understanding Employment Law

 

Employment laws at the federal and state level encompass a wide range of regulations governing the relationship between employers and employees.  As a business owner, it's essential to generally familiarize yourself with these legal topics to ensure compliance and mitigate legal risks. Some key areas of employment law include:

 

  • Discrimination Laws: Michigan, like many other states, prohibits discrimination based on protected characteristics such as race, gender, age, disability, and religion. It's crucial to avoid discriminatory practices throughout the hiring process, from job postings to interviews and hiring decisions.
  • Wage and Hour Laws: Employers must adhere to federal and state laws regarding minimum wage, overtime pay, and record-keeping. Familiarize yourself with Michigan's minimum wage requirements and ensure that employees are properly classified as exempt or non-exempt for overtime purposes.
  • Employment Contracts: Although Michigan generally follows the doctrine of at-will employment, it’s still advisable to have written employment contracts in place, particularly for key employees or those in specialized roles. These contracts can outline terms of employment, including essential job requirements, compensation, benefits, and termination provisions.
  • Worker's Compensation: Michigan requires most employers to carry worker's compensation insurance to provide benefits to employees who suffer work-related injuries or illnesses. Ensure compliance with state regulations and have appropriate insurance coverage in place.

 

Hiring Processes

Crafting a thorough and legally compliant hiring process is essential for attracting top talent while minimizing legal risks.  Here are some best practices to consider:

  • Position Descriptions: Position descriptions serve as the foundation for the hiring process, providing clarity on job responsibilities, qualifications, and expectations. From a legal standpoint, these documents play a crucial role in ensuring compliance with employment law and protecting both employers and employees.  Position descriptions should be carefully crafted to avoid language that could be perceived as discriminatory. They should focus on job-related criteria such as skills, experience, and qualifications, rather than irrelevant factors such as age, gender, or disability.  Position descriptions also help employers properly classify employees as exempt or non-exempt under wage and hour laws.  Finally, position descriptions, including clear identification of essential job functions, provide clarity to both the employee and employer, such that if the employee’s performance is sub-par, the position description can be used as a metric for advancement or termination.
  • Application Process: Develop standardized application materials and processes to ensure consistency and fairness.This process may include a standardized interview structure and a hiring committee led by a diverse group of stakeholders. Avoid asking illegal or irrelevant questions related to protected characteristics during the application process.
  • Background Checks: If conducting background checks on potential employees, comply with federal and state laws, including the Fair Credit Reporting Act (FCRA) and Michigan's laws regarding the use of criminal history in employment decisions. For instance, an applicant’s misdemeanor arrest record may not be considered in the hiring process under Michigan state law.

 

Employment Contracts

 

While not always required, employment contracts can provide clarity and protection for both employers and employees.  When drafting employment contracts, consider the following:

  • Terms of Employment: Clearly outline the terms and conditions of employment, including job duties, essential job functions, compensation, benefits, and any probationary periods.
  • Termination Provisions: Specify grounds for termination and any notice requirements in the employment contract. This can help mitigate disputes and provide clarity for both parties in the event of termination.
  • Dispute Resolution: Consider including provisions for dispute resolution, such as arbitration or mediation, to resolve potential conflicts outside of court.Enforceable arbitration provisions are especially important to avoid employee-related litigation.

 

The team at TNLG is consistently asked about non-compete agreements in employment contracts, especially given the Federal Trade Commission’s position against such agreements.  While the status of non-compete agreements is likely to be debated in political circles and in the courts for years to come, employers can explore alternatives to non-compete agreements that protect the company’s intellectual property, customer base, and core assets.  Legal alternatives to non-compete agreements include non-disclosure agreement, non-solicitation agreements, intellectual property assignment clauses, and garden leave clauses.  Having an experienced legal team helping your company craft such agreements is critical to ensuring your business is protected from unauthorized competition.

 

Employee Onboarding

 

Finally, effective employee onboarding is crucial for setting the tone for the employer-employee relationship and ensuring a smooth transition for new hires.  Here are some tips for successful onboarding:

  • Orientation and Training: Provide comprehensive orientation and training programs to familiarize new employees with company policies, procedures, and expectations.
  • Documentation: Ensure that new hires complete all necessary paperwork, including tax forms, benefits enrollment, and company policies. Maintain accurate records of employee documentation for compliance purposes.
  • Communication: Foster open communication with new hires to address any questions or concerns they may have during the onboarding process. Encourage feedback and provide opportunities for new employees to acclimate to their roles.
  • Feedback and Evaluation: Schedule regular check-ins and evaluations to assess new employees' progress and address any performance issues early on. Provide constructive feedback and support to help new hires succeed in their roles. Use the position description as a metric against which employee success will be measured.
  • Provide Reasonable Accommodations: Within a few weeks or months of starting employment, new employees may wish to request certain accommodations to assist them in performing their duties. In deciding how to accommodate such request, employers must engage in the “interactive process” under the Americans with Disabilities Act, which includes a good-faith dialogue with the employee, seeking the employee’s detailed request for an accommodation, and deciding whether to meet that request, deny that request, or provide some other resource to allow the employee to do their job effectively.

 

In conclusion, navigating the legal landscape of hiring employees in Northern Michigan requires attention to detail, compliance with applicable laws, and a commitment to fairness and transparency. By understanding employment law, implementing best practices in the hiring process, drafting clear employment contracts, and conducting effective employee onboarding, businesses can mitigate legal risks and build a strong foundation for success.

 

As always, consulting with a qualified business attorney, like the team at True North Legal Group, can provide invaluable guidance and support throughout the hiring process.