Welcome back to another edition of HR Basecamp Roundup! This week, we tackle some interesting and common issues that come up in workplaces more often than you think. If you haven’t joined our HR Basecamp Facebook group yet, be sure to join so you can participate in these discussions in real time!
Podcasts and Resources in this Roundup:
- A Compliant PTO & Time Tracking system
- Progressive Corrective Coaching
- FREE Corrective Action Form
- Episode 96: Set It and Regret It: The Danger of Auto-Clocking Time Keeping
1. Can different employees get different benefits?
Question: I just purchased a practice and am planning on retaining all current employees and hiring a few more. Current employees have a pretty generous benefit package, and I want to keep it this way, but not necessarily offer the same to new hires. Is this allowed?
The Legal Side: It depends on the kind of benefits.
When it comes to things like paid time off, you’ve got quite a bit of discretion—as long as you’re basing it on objective, employment-related criteria (think: length of service or full-time vs. part-time). It’s common to offer more generous perks to long-standing or full-time team members, especially during a transition. But laws may still apply, depending on where you are.
At the federal level, there’s no requirement to offer paid time off at all. But did you know that nearly half the states have passed some form of mandatory paid leave, and that list is growing? In fact, three more states are hopping on that bandwagon this year (don’t worry CEDR members, we’ve got you covered). So, while you can differentiate beyond the minimum, you must at least meet any applicable state mandates for all eligible employees, no matter what tier of benefits you’re offering otherwise.
Health insurance and retirement plans are a different ballgame. These benefits are often governed by plan-specific rules and regulations that go well beyond general employment law. Whether you can offer different levels to different groups depends on how your plans are structured—and that’s where your plan administrator earns their keep. Run your ideas by them before making any changes.
The Human Side: You’re not alone—many new owners opt to “grandfather in” existing employees with the benefits they’ve come to expect, while drawing a different line for new hires. It’s doable, but how you communicate those differences is key.
The magic words here are clear, objective, and employment-based. When employees see that the benefits structure is rooted in fair criteria—like seniority, job type, or hours worked—they’re less likely to feel like they’re getting the short end of the stick. It also protects you if anyone ever raises concerns about unfair treatment.
Consistency is everything. Whatever criteria you set, stick with it across the board. If two employees are in the same role and meet the same criteria, they should be getting the same benefits. That’s how you stay on the right side of both the law and your team.
2. Can I adjust employee timecards when they forget to clock out?
Question: Employees keep on “forgetting” to clock out for lunch. Am I allowed to clock them out automatically? Or can I automatically deduct the lunch period from their total hours? I’ve sent out multiple memos about this, but it keeps happening.
The Legal Side: We get it—this is frustrating. But automatic deductions or clock-outs are a risky move. In fact, these kinds of timecard edits are one of the easiest ways to find yourself knee-deep in a wage and hour claim. And spoiler alert: the cost of defending one of those claims will far outweigh the price of a few lunch breaks.
Non-exempt employees must be paid for all hours worked—yes, even if those hours weren’t pre-approved. If you auto-deduct or manually adjust hours based on what should have been their lunch break, but the employee worked during any of that time, you’re not just skating on thin ice; you would be violating the laws that govern you. You would also call into question your integrity as a manager. And open all clocking practices to an audit.
Just because your timekeeping software can auto-deduct doesn’t mean it should. That’s why it’s essential that you have a timekeeping system that works for you, not against you, and takes these kinds of risks into consideration. If your current process isn’t giving you that, it may be time to reevaluate the tools or settings you’re using.
The Human Side: When friendly reminders and team memos haven’t worked, it’s time to take it a step further.
Start addressing this with individual corrective coaching. This isn’t just about timekeeping; it’s about protecting everyone, including the employee. In some states, failing to take required lunch breaks doesn’t just create liability for you—it can limit an employee’s right to rest, which can turn into a bigger legal mess down the line.
Give coaching, and document it. If the problem persists, you’ve built the foundation for further corrective action, like a written warning or even termination if necessary. Keep track of these conversations and your efforts to correct the issue. Tools like the HR Vault are perfect for storing secure notes in one place without the clutter of paper files.
Lunch breaks shouldn’t be a liability. But without the right systems and follow-through, they can become exactly that.
Extra Credit Listening: Don’t Get Caught Clock Watching: Timekeeping Compliance for Medical Practices
3. I found out an employee was arrested. What do I do?
Question: One of my employees called out last week saying they were sick. I was shocked to see their mug shot on social media that weekend. They were arrested for drinking and driving. Can I say anything to them about this? Should I take any action based on the arrest?
The Legal Side: Seeing a team member’s mug shot pop up on your feed is definitely jarring, but it doesn’t automatically mean you need to act—or that you even can act.
Legally speaking, in most instances employees aren’t required to disclose if they’ve been arrested, and an arrest alone is not the same as a conviction. While you can talk to the employee about your concerns, keep in mind that employment decisions based solely on an arrest record—not a conviction—can be risky territory. In fact, the Equal Employment Opportunity Commission (EEOC) advises against it because arrest rates tend to disproportionately affect certain minority groups. Making a move based on this could unintentionally create a disparate impact under federal law.
So before you initiate any conversations, ask yourself: Does this impact their ability to do their job? Have there been any prior concerns that this incident brings into sharper focus? If not, and if their duties don’t involve driving or safety-sensitive tasks, you may not have a legal or operational reason to step in. And making decisions based on something you saw on social media? Not a great legal foundation to stand on.
The Human Side: Legality aside, this kind of thing can cause concern. But when it comes to how you might handle it, try to focus on the big picture.
If the employee’s job doesn’t involve driving or safety-sensitive work, the DUI may not affect their ability to perform. That said, the aftermath of an arrest often includes court dates and other legal proceedings, which could affect their availability. Now’s a good time to open a dialogue—not so much about the arrest itself, but about whether they foresee any upcoming time off or scheduling issues.
Consider how you’ve handled similar situations in the past, or how you would handle the same issue with a different employee. If you wouldn’t address a similar situation for another employee, don’t make an exception here. And if you do decide to address it, make sure your reasons are based on business needs—not personal feelings or social media posts.
