Title VII of the 1964 Civil Rights Acts prohibits discrimination based on race, sex, color, national origin and religion. This means that any questions related directly or indirectly to these issues should be avoided. You should also avoid any questions related to age or disability due to the Age Discrimination in Employment Act and the American’s with Disabilities Act of 1990. If you must ask a question related to these topics, be sure that it is related to an occupational qualification or it is required by law.

The Americans with Disabilities Act has some additional restrictions of which you should be aware.

• You cannot ask an application about previous compensation levels during the pre-offer stage.
• You cannot ask the applicant if they have a disability. However, you can ask if there is anything that prevents the applicant from performing essential tasks or functions of the job.

What is the average annual merit increase for employees?

The average merit increase rate has recently decreased from double digits to less than 5%. Most increases are now between 3-5% (Source: National Minority AIDS Council, Organizational Effectiveness Series, Human Resources)

What should be included in a job description?

The Americans with Disabilities Act requires employee job descriptions to cover all essential job functions, and to distinguish these from non-essential functions.

A job description should include the following items:

• Name of the role, employee, or supervisor.
• A description of the work required.
• Where will the incumbent do the work?
• When or how often the tasks must be completed.
• The purpose of the job. A description of the impact the position makes on the organization.
• How is the job completed?

Why do employees need job descriptions?

Job descriptions are not legally mandated.  However, developing job descriptions for employees can provide a number of benefits, including but not limited to:

• Clarifying the roles and responsibilities of the position.
• Establishing performance requirements.
• Defining pay levels.
• Simplifying recruiting efforts.

What is considered a benefit?

A benefit is any form of indirect compensation, or anything outside of the traditional salary or pay an employee receives. Most organizations offer benefits in order to provide employees some additional protection, promote goodwill, and reward employment. Though sometimes costly, offering benefits often better positions an organization for recruitment and retention of employees.

Are their any benefits that we are required to offer?

There are seven main categories of benefits required by either federal or state legislations:

• Social Security
• Medicare
• Unemployment Insurance
• Worker’s Compensation*
• Family and Medical Leave*
• Short-Term Disability*
• Health Insurance Portability and Accountability Act

*Check your local state regulator and an attorney for laws applicable in your state.

What is the difference between an HMO and a PPO?

Health Maintenance Organizations (HMO) provide a complete set of services, and typically require treatment in an HMO facility and/or with a participating network physician. A primary care physician (PCP) directs the care of the individual. Any specialty care requires the PCP provide a referral. Out-of-pocket expenses include co-pays and deductibles.  Additionally, there may be limited or no coverage for ‘out-of-network’ services.

Preferred Provider Organizations (PPO) allow members to choose a physician from a list or directory of preferred providers. This directory is typically broader than that offered by an HMO plan. Out-of-pocket expenses include co-pays, deductibles, and co-insurance.

Why should we create an employee handbook?

Employee handbooks are used to clearly and consistently communicate important information to employees. It provides an opportunity to educate all employees on the organization, mission, values, competitors, benefits, stakeholders, etc.