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Idaho Small Business Solutions - Taxes
Idaho Small Business Solutions - Licenses
Idaho Small Business Solutions - Insurance
Idaho Small Business Solutions - Employer Issues
Idaho Small Business Solutions - Forms
Idaho Small Business Solutions - Agencies

State of Idaho Web Site

 


Employer Issues

Click here for Employee vs. Independent Contractor information Businesses with employees must comply with numerous regulatory issues. Some businesses attempt to avoid these issues by engaging Independent Contractors rather than hiring employees or by classifying workers as independent contractors instead of employees. Both Federal and state regulations govern whether a worker can be classified as an independent contractor. Make sure you fully understand them. Heavy fines may be imposed if you have misclassified people who work in your business and you may have to pay outstanding back employment-related taxes.

For a listing of the primary agencies you need to contact if you have employees or independent contractors, do a search using the Business Wizard. In Section 3, choose "Employee, Independent Contractor, or Both."

Following is a list of most of the issues businesses in Idaho may encounter when hiring or working with employees or independent contractors.  For a brief description of an issue and a link to a related Web site, click on the name of the agency or activity.

Background Checks - Pre-employment
Performing Background Checks
Child Support Payroll Deductions
Idaho Department of Health & Welfare
Criminal Record/Convicted Felon
Idaho Department of Labor 
Disabled Employees - Hiring or Accommodating
Federal Disability Employment Information
Americans with Disabilities Act
U.S. Department of Labor
Idaho Council for the Deaf and Hard of Hearing
Idaho Commission for the Blind and Visually Impaired
Employee or Independent Contractor
Idaho Industrial Commission
Idaho Department of Labor 
Internal Revenue Service 
Employee Misconduct Investigations
Employee Misconduct
Employee Training
Idaho Department of Commerce
Idaho Department of Labor
Employer Identification Number 
Internal Revenue Service 
Employer Tax Incentives/Tax Credits
Idaho State Tax Commission
Idaho Department of Commerce
Idaho Department of Labor 
Employment Posters
U.S. Department of Labor
Idaho Department of Labor  
Idaho Industrial Commission
Family and Medical Leave Act
U.S. Department of Labor
Farm/Agricultural/Migrant Workers/Farm Labor Contractors
U.S. Department of Labor
Idaho Department of Labor 
Health Plans and Benefits
U.S. Department of Labor
Idaho Labor Laws 
Idaho Department of Labor 
Insurance - Workers' Compensation
Idaho Industrial Commission
Visit the Insurance section of this Web site  
Legal Right to Work in the U.S./Employment Eligibility Verification
Bureau of Citizenship and Immigration Services    
Licenses - Professional
Bureau of Occupational Licenses
Visit the Business Wizard
Military Service - Employer Responsibilities
U.S. Department of Labor 
Minimum Wage
U.S. Department of Labor
Idaho Department of Labor 
New Hire Reporting
Idaho Department of Labor  
Overtime Payment
U.S. Department of Labor 
Pension/Retirement Plans
Internal Revenue Service
U.S. Department of Labor
Rehabilitation of Injured Employees
Idaho Division of Vocational Rehabilitation
Idaho Industrial Commission 
Idaho Commission for the Blind and Visually Impaired
Social Security/Medicare Withholding
Social Security Administration
Internal Revenue Service
Taxes (withholding & reporting requirements)
Idaho State Tax Commission
Internal Revenue Service 
Visit the Taxes section of this Web site
Teenaged Employees
U.S. Department of Labor
OSHA
Unemployment Insurance Tax - Federal and State
Idaho Department of Labor 
Internal Revenue Service 
Visit the Taxes section of this Web site
Veterans - Hiring
Idaho Department of Labor
U.S. Department of Labor
Union Members
Hiring Union Members
Wage and Payment Practices
U.S. Department of Labor
Working Conditions
U.S. Department of Labor
Occupational Safety and Health Administration (OSHA)
Nondiscrimination Compliance

Bureau of Occupational Licenses 

link to Idaho Bureau of Occupational Licenses
The Bureau of Occupational Licenses examines applicants and issues licenses to employees and business owners who are engaged in a number of professions. If your staff members are required to be licensed and they are not, you could be held liable for any consequences set forth by the related licensing board.  

To find out which professions are licensed by the Bureau of Occupational Licenses, visit their Web site at http://ibol.idaho.gov/IBOL/General/bol%20boards.htm. Occupations not listed on the site may be licensed by their particular occupational board, such as the Board of Medicine or State Bar. To find a list of these agencies, visit http://www.accessidaho.org/business/licensing.html

Some professionals can renew their licenses on-line by visiting https://secure.ibol.idaho.gov/IBOLPortal/Boards/OnLineRenewalApplication/tabid/86/Default.aspx or http://www.accessidaho.org/business/licensing.html.


Idaho Department of Health & Welfare     
    Division of Family and Community Services
Idaho Department of Health and Welfare logo

If you have employees who are required to pay court-ordered child support, you will need to become familiar with this agency. The Division of Family and Community Services receives payments from employers for employee payroll deductions for court-ordered child support payments. When you hire new employees, the Idaho Department of Labor submits a copy of your New Hire report to this agency. If an employee is determined to be in arrears on child support payments, Health & Welfare will send an income withholding order to the employer. The order indicates when to begin withholding payments, how much to withhold, and where to send the withheld funds. The employer may charge the employee a small fee to cover administrative costs. 

An employer may be required to enroll dependent children in the company's health insurance plan if the children have no other coverage. For information, visit http://healthandwelfare.idaho.gov/Children/ChildSupportServices/tabid/76/Default.aspx.

If an employee owes child support in another state, the designated agency in that state may contact the employer with an income withholding order. Failure to comply with the order can result in the employer being held in contempt of court and being fined.   

If an employee holds an occupational license and is in arrears with child support payments, the license can be suspended, as can the employee's driver's license. A license suspension could affect your business.

An "Employer's Guide to Child Support Services" can be found at http://healthandwelfare.idaho.gov/Providers/ChildSupportPartners/tabid/379/Default.aspx. The guide contains information that will be helpful to you in understanding and complying with child support laws.

For further information on employer responsibilities call the Department at (208) 334-2479 or toll-free at 1-800-356-9868, or visit their Web site at http://healthandwelfare.idaho.gov/.

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Idaho Department of Labor                                                                             

The Department of Labor offers a wide variety of information and services for employers through its offices located throughout the state. To find your nearest Department of Labor office, click the link to the right. The department's Web site can be accessed at http://labor.idaho.gov.  The department oversees the following employee issues: link to Job Service local offices

Unemployment Insurance: Information about unemployment insurance (actually a tax, not insurance) can be found in the Taxes section of this site.

Independent Contractors:  If you are considering using independent contractors in your business, click here for a detailed description of the difference between an Employee and an Independent Contractor. You could face serious penalties if you misclassify workers.

Employment and Training:  Idaho Department of Labor offers business employment and training services. For a description of available services, visit http://labor.idaho.gov/dnn/EducationTraining/tabid/654/Default.aspx.

New Hire Reporting:  Employers must report all newly hired employees within 20 days of the date of hire. Employees who are rehired after an absence of 12 months or more must also be reported. For information, visit https://labor.idaho.gov/applications/newhire/.

Minimum Wage: For information on Idaho's minimum wage requirements, visit http://labor.idaho.gov/dnn/Default.aspx?tabid=695. The minimum wage increased in 2007 and 2008 and will increase again in July 2009. Required minimum wage posters can be printed from the Idaho Department of Labor's Web site at the location listed below.

Employment Posters: To find the 9 labor posters employers must post, visit http://labor.idaho.gov/dnn/Businesses/EmploymentServices/FormsPosters/tabid/649/Default.aspx. Posters are available in both English and Spanish.

Farm Labor Contractors: Those who represent farm laborers in securing work in agricultural positions in Idaho must register with the Idaho Department of Labor, obtain a license, and be bonded. For information, visit http://labor.idaho.gov/dnn/lmi/Employment/FarmLabor/tabid/758/Default.aspx. Information is available in both English and Spanish. Farm labor contractors must also register with the Federal government. For information, see U.S. Department of Labor below.

Employer Tax Incentive/Tax Credit: Employers who meet certain requirements may receive a tax credit for hiring employees. For information visit http://labor.idaho.gov/dnn/Businesses/EmployerTaxCredits/tabid/644/Default.aspx.

Hiring Veterans: For information on hiring a veteran, visit http://labor.idaho.gov/dnn/idl/JobSeekers/VeteransServices/tabid/666/Default.aspx.

Hiring an Employee with a Criminal Record:  For information about hiring someone who has been convicted of a crime (not just accused), visit http://www.hirenetwork.org/admin/clearinghouse.php?state_id=ID. It is possible to obtain fidelity bonding for high risk employees through a Federal bonding program. Information is available on the above Web site. 

Your business may qualify for a Work Opportunity Tax Credit for hiring an ex-felon, a welfare or food stamps recipient, a recipient of Supplemental Security Income benefits (SSI), or another hard-to-place individual. For information, visit http://labor.idaho.gov/publications/WOTC_Info_Brochure.pdf.  

The Fair Credit Reporting Act, administered by the FTC, covers information that can be legally gathered in a pre-employment background check (see Background Checks below). The Act states that records of arrest cannot be included in an employment background check after seven years. However, a criminal conviction can be reported indefinitely. The Fair Credit Reporting Act can be found at http://www.ftc.gov/os/statutes/fcradoc.pdf.

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Idaho Department of Commerce

Tax Incentives: Find tax incentives for hiring new employees in certain rural counties, for creating jobs, and other opportunities at http://commerce.idaho.gov/business/incentives.aspx.

Workforce Training: Find information on the Workforce Development Training Program at http://commerce.idaho.gov/assets/content/docs/wdtfmarketingbrochure.pdf


Idaho Commission for the Blind and Visually Impaired           logo of ID Commission for the Blind and Visually Impaired

Provides rehabilitation services to workers who are losing their vision or have lost it due to an injury, illness, or congenital problem. For information, call the Commission at (208) 334-3220 or visit their Web site at http://www.icbvi.state.id.us/


Idaho Council for the Deaf and Hard of Hearing

Serves the deaf and hard of hearing and their employers. Find interpreters, assistive devices, and information on the Council's Web site at http://www.cdhh.idaho.gov/ or call their office at (208) 334-0879 or (800) 433-1323.


Idaho Division of Vocational Rehabilitation                                                                      Idaho Vocational Rehabilitation Logo

The employer of a worker who has suffered an injury or illness resulting in a permanent or long-term disability that interferes with her/his ability to perform their job should contact this agency for information about rehabilitation services. Workers who qualify to receive Social Security Disability Insurance payments should also contact this agency to learn about assistance programs. The agency's Web site is found at http://www.vr.idaho.gov/.


link to Idaho Industrial Commission Idaho Industrial Commission

Business Registration: 
If you have employees or make retail sales, you must register your business by submitting IBR-1, Idaho Business Registration application, which can be completed on-line at https://labor.idaho.gov/applications/ibrs/ibr.aspx. (Please note, submitting this form does not register your business name or entity type.)

Workers Compensation Insurance: 
Employers having one or more full-time, part-time, seasonal or occasional workers are required to provide workers’ compensation insurance coverage unless specifically exempt under Idaho law. Information is available at http://www.iic.idaho.gov/employers/employers.htm or you can contact a compliance representative by calling (208) 334-6000 or toll free 1-800-950-2110. If you have employees who are based in Idaho but work across state lines in a near-by state, they may be covered by your Idaho workers compensation insurance. Visit the Web site listed above for information.

Workers Compensation Exemptions pop-up boxNot all employees or professions need to be covered by Workers' Compensation Insurance. For more information on exempt employees or professions, click on the button to the right. Also see Workers' Compensation on the Insurance section of this site.   

Independent Contractors:  If you are considering using independent contractors instead of employees, be certain you can legally do so. For information on the difference between an employee and an independent contractor, visit Employee vs Independent Contractor or http://www.iic.idaho.gov/employers/ec_ic_vs_employee.pdf. If you fail to classify a worker correctly, you could be fined for failure to carry worker's comp insurance.

Rehabilitation Assistance:  If an employee is injured in an on-the-job accident or suffers a serious illness as a result of his/her job, the Industrial Commission will provide rehabilitation assistance. For information, visit http://www.iic.idaho.gov/about_the_iic/divisions/rehab.htm.

The IIC offers an informative Guide for Employers found at http://www.iic.idaho.gov/employers/guide_for_employers.htm.

Poster: Employers are required to display a poster indicating that they have worker's comp insurance. The poster should be provided by the company from whom you purchased your worker's comp insurance. For information, visit http://www.iic.idaho.gov/employers/posters.htm.link to IIC regional offices listing

To find your nearest Industrial Commission office, click on the box to the right.                                       


link to ID State Tax CommissionIdaho State Tax Commission

If you have an employee who physically works in Idaho, or if you withhold Idaho income tax from a paycheck, you must open an Idaho withholding account with the Idaho State Tax Commission. Withholding Idaho income tax is required when payments are made to an employee for work performed in Idaho, with some exceptions. Idaho income tax withholding returns can be filed electronically at http://www.tax.idaho.gov/filing.htm.   

list of STC regional officesThis is what you need to do to get started:

Employer Tax Incentives: For tax years beginning in 2005, the Idaho Small Employer Incentive Act provides tax benefits to taxpayers who certify that they will meet certain tax incentive criteria. You will find information about the Idaho Small Employer Incentive Act of 2005 under Form 41 instructions found at http://tax.idaho.gov/forms_bus_05.htm. Look for "New for 2005."  Also refer to Forms 83, 84, and 85 and instructions.

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Internal Revenue Service

The Internal Revenue Service's Web site, http://www.irs.gov, is an easy-to-use resource to help with all your Federal business and personal tax needs. It contains information on how to obtain tax forms and publications, tax statistics, tax regulations, taxpayer help and education, IRS news, electronic services, how to contact the IRS and ask questions via the Internet, and more.

Employer Identification Numbers (EIN): The IRS issues Employer Identification Numbers (EIN), also called tax identification numbers or tax ID numbers. For information, visit http://www.irs.gov/businesses/small/article/0,,id=98350,00.html

You will need an EIN if you have employees, make retail sales, or do business with corporations and government agencies. Your bank may also require you to obtain an EIN in order to open a business banking account. If your business offers employee health insurance, your EIN will serve as your National Standard Employer Identification number for electronic claims reporting. If you change the name of your business or the entity type, you may need to obtain a new EIN. For information, click on the IRS link above.

Independent Contractors vs Employees: Employers are often confused about the difference between an independent contractor and an employee. For information on the difference and how it affects your tax reporting, visit http://www.irs.gov/businesses/small/article/0,,id=99921,00.html.

Federal Unemployment Insurance Tax: See the Taxes section of this Web site for information. 

Social Security and Medicare Withholding: Social Security and Medicare payments withheld from employee earnings are paid to the IRS. For information, visit http://www.irs.gov/businesses/small/international/article/0,,id=104936,00.html

Self-employment Tax: Business owners who are sole proprietors, partners, or who own an LLC or S-Corp may need to pay self-employment taxes, which are a form of Social Security, on their earnings. For information, visit http://www.irs.gov/businesses/small/international/article/0,,id=105255,00.html.

Pension/Retirement Plan: For information on establishing an employee pension or retirement plan and required tax reporting, visit http://www.irs.gov/pub/irs-pdf/p560.pdf and http://www.irs.gov/retirement/sponsor/article/0,,id=136475,00.html

Information on terminating a pension or retirement plan and the required tax reporting can be found at http://www.irs.gov/retirement/article/0,,id=110421,00.html

Closing or Changing the Legal Structure of a Business: If you close your business or change its legal entity type (legal structure), visit http://www.irs.gov/businesses/small/article/0,,id=98761,00.html to be certain your reporting requirements are either terminated or changed to fit your new entity form. 


Occupational Safety & Health Administrationlink to OSHA

OSHA is the division of the U.S. Department of Labor that regulates working conditions. They publish the "OSHA Small Business Handbook," which can be downloaded at http://www.osha.gov/Publications/smallbusiness/small-business.pdf. The handbook provides valuable information for employers.

For information about OSHA and the services they provide, visit their Web site at http://www.osha.gov. Their Office of Small Business Assistance can be accessed at http://www.osha.gov/dcsp/osba/index.html.  

Information about OSHA's various training programs can be found at http://www.osha.gov/dcsp/ote/index.html. Information for Hispanic employers and workers is found at http://www.osha.gov/dcsp/compliance_assistance/index_hispanic.html.

If you employ teenagers, visit http://www.osha.gov/SLTC/teenworkers/index.html to find teen worker safety and health information in both English and Spanish.

OSHA maintains an office in Boise at 1150 N. Curtis Rd., Suite 201, phone (208) 321-2960 or toll-free in Idaho 1-800-482-1370.  Free, confidential, on-site consultation services about workplace health and safety issues that may affect your business are available.

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U.S. Department of Labor

link to U.S. Department of Labor The U.S. Department of Labor regulates working conditions, wages, and payment practices. These activities are governed by the Wage and Hour Division, which publishes the "Handy Reference Guide to the Fair Labor Standards Act" found at http://www.dol.gov/esa/whd/regs/compliance/hrg.htm. 

Wage and Payment Practices:  DOL guidelines classify all employees as either exempt or nonexempt. Nonexempt employees are entitled to overtime pay if they work more than 40 hours in a week. Exempt employees are managers who spend at least 80% of their time (60% in retail and service businesses) on management duties. They must also supervise at least two employees and have some discretionary authority over accomplishing their jobs. 

Paying an employee a salary rather than an hourly wage does not automatically classify her/him as exempt from receiving overtime pay. Rather, the duties performed determine whether they are exempt or nonexempt employees. If you have questions about the status of your employees, contact the DOL. If you fail to pay overtime to a nonexempt employee, you could be fined for failing to comply with Federal law. For information, visit http://www.dol.gov/dol/topic/wages/index.htm.

Overtime Pay: For information on requirements concerning payment of overtime and the federal FairPay Overtime Initiative, visit http://www.dol.gov/esa/WHD/regs/compliance/fairpay/.

Minimum Wage: Both Federal and state laws cover minimum wage payment practices. For information on the Federal minimum wage law, visit http://www.dol.gov/dol/topic/wages/minimumwage.htm. The minimum wage increased July 24, 2008 and will increase again in July 2009. Idaho's minimum wage is the same as the Federal minimum wage.

Employment Laws: To find out about Federal labor regulations that may affect your business, visit the Department's e-laws Web site at http://www.dol.gov/elaws. The "FirstStep Employment Law Advisor" on this site helps employers quickly determine which of the DOL's major employment laws apply to their business. If your business is a government contractor or sub-contractor, visit http://www.dol.gov/elaws/ofccp.htm to be certain your business complies with all necessary Federal employment regulations.

The DOL Compliance Assistance Web site at http://www.dol.gov/compliance offers information on Federal employment rules and regulations and how to comply with them.

Employment Posters: If you have employees, you must post labor-related posters, even if you have a home-based business. To find a list of federal poster requirements, visit http://www.dol.gov/elaws/posters.htm. Posters concerning Idaho laws can be found at http://labor.idaho.gov/dnn/Businesses/EmploymentServices/FormsPosters/tabid/649/Default.aspx.

Health Plans and Benefits: If your business offers health insurance, visit http://www.dol.gov/dol/topic/health-plans/index.htm to find information on how to comply with ERISA and COBRA requirements. Information can also be found on the Employee Benefits Security Administration's Web site at http://www.dol.gov/ebsa/.

Employing Teenagers:  If your business employs teenagers, you will find much information at http://www.youthrules.dol.gov. Laws govern the number of hours teens can work, the types of activities they can perform, and the types of equipment they can operate based on their age.

Drug and Alcohol-free Workplace: The U.S. Department of Labor Working Partners division helps employers establish an alcohol and drug-free work place and provides information on drug and alcohol use in the work place. The site is located at http://www.dol.gov/workingpartners/welcome.html.

Hiring Veterans: For information about hiring or retaining employees who are veterans, including information on available training grants, visit http://www.dol.gov/vets/.  

Disabled Workers: If you employ workers with disabilities, visit http://www.dol.gov/esa/sec14c/index.htm to find information about special minimum wage allowances and requirements.

Employing the Homeless: The U.S. DOL offers programs to train and support homeless individuals and agencies working with the homeless to assist them with employment. For information, visit http://www.dol.gov/dol/audience/aud-homeless.htm. Information is also available on training grants available to businesses that employ homeless veterans.

Farm Laborers:  This agency administers the "Migrant and Seasonal Workers Protection Act" found at http://www.dol.gov/esa/whd/mspa/index.htm. The Act requires farm labor contractors to be licensed by the U.S. Department of Labor as well as by the Idaho Department of Labor.

Family and Medical Leave Act: Businesses with 50 or more employees must comply with this act. For information, visit http://www.dol.gov/esa/whd/fmla/. Changes to the act took effect in January 2009. To become familiar with them, visit http://www.dol.gov/esa/whd/fmla/finalrule.htm.

Military Service: Employees who are members of the National Guard and who are called to active duty are covered by the Uniformed Services Employment and Reemployment Rights Act. The Act requires employers to reinstate returning employees with the status, seniority, and same rate of pay they would have obtained if they had been continuously employed. The law also prevents discrimination in hiring, promoting, or retaining employees who are in the National Guard. For information on the law and how it may affect your business, visit http://www.dol.gov/dol/compliance/comp-userra.htm

Pension Plans: Find information on employee pension and retirement plans and benefits at http://www.dol.gov/dol/topic/retirement/consumerinfpension.htm. Information on the Pension Protection Act of 2006 can be found at http://www.dol.gov/ebsa/pensionreform.html.

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Bureau of Citizenship and Immigration Services  

Federal law requires that all parties in a business have a legal right to work in the United States. To comply with this requirement, a Form I-9, Employment Eligibility Verification, must be completed by all employees and owners of a business. Employees must complete the form during their first day of work.  

Effective December 26, 2007 employers must use a new version of Form I-9 or face penalties from the Bureau of Homeland Security. The new form includes changes in the types of documents employers can accept to verify a job applicant’s identity. The form was updated again in April 2009 to update the types of documents that can be accepted to verify identity.

Employers must complete their portion of the form, including recording the documents presented by the employee to verify identity, by the end of the third day of employment. Employers must keep the completed forms on file with their personnel records for at least three years after hiring a new employee.  If an employee resigns or is terminated in less than three years, the form must be kept on file for one year after the end of employment.  

Be aware: If an inspector visits your office and you can't produce the forms, you can be fined for each undocumented employee, including the business owners.

For more information on Form I-9 visit http://www.uscis.gov/files/nativedocuments/m-274.pdf, Handbook for Employers. To download Form I-9 in either English or Spanish, visit http://www.uscis.gov/. 

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Social Security Administration

Federal Law requires that employers withhold Social Security and Medicare payments from employee wage and salary payments. For information and forms, visit http://www.ssa.gov/employer1.htm. Business owners who do not receive a paycheck that includes withholdings from their business must pay self-employment tax, which is a form of Social Security, on their earnings. This tax is paid to the Internal Revenue Service when a business owner files his or her personal income taxes. For more information, see Internal Revenue Service above.

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Nondiscrimination Compliance

Businesses having five or more employees must comply with state and federal laws that cover various types of discrimination, including discrimination based on race, religion, ethnic origin, gender, disability, age, and pregnancy. These laws include the Americans with Disabilities Act and the Federal Fair Employment Practices Act. For information on ADA requirements, call (800) 669-3362 or visit the ADA Web site at http://www.ada.gov/.  A guide containing ADA requirements for small businesses, as well as other publications, can be downloaded at http://www.ada.gov/publicat.htm.  

You may be eligible for a tax credit if you must make structural changes to your building or work area to accommodate a disabled employee's needs. Check with your accountant for details or visit http://www.ada.gov/taxpack.htm.

The Web site of the Equal Employment Opportunity Commission (EEOC) provides much information for small businesses, particularly those that do not have an HR department, to assist with compliance issues.  The site is located at http://www.eeoc.gov/employers/smallbusinesses.html

The Idaho Human Rights Commission enforces both Idaho and Federal human rights laws. For information on laws that may affect your business, visit the Commission's Web site at http://humanrights.idaho.gov/.

Harassment:  Every business, even a very small one, should have a written harassment policy that all employees read and sign, since harassment on the job is a Federal offense.  See Employee Handbooks in the Links section of this Web site for information on creating a harassment policy.

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Federal Disability Employment Information

Federal law requires that businesses with 15 or more employees hire and make accommodation for disabled workers or current employees who become disabled during the course of employment. For information about your responsibilities and for assistance in complying with the law, visit http://www.disabilityinfo.gov

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Americans with Disabilities ActDepartment of Justice Seal

The Americans with Disabilities Act gives civil rights protection to individuals with disabilities similar to the rights provided to individuals on the basis of race, color, sex, national origin, age, and religion. It guarantees equal opportunity for individuals with disabilities in public accommodations, employment, transportation, State and local government services, and telecommunications. To learn about your responsibilities under the law, visit the ADA Web site at http://www.ada.gov/.

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  Hiring Union Members

Idaho is a Right-to-Work state. Therefore, employees cannot be forced to join a union, nor can union or non-union members be discriminated against in hiring, promotion, or termination. If your business hires union members, you may be asked to negotiate a labor contract covering wages, benefits, and working conditions. A union negotiator will represent union members when problems arise concerning conduct, productivity, and other issues. When the labor contract expires, your employees could strike if the demands contained in their new proposed contract are not accepted. If your business hires union members, either as employees or subcontractors, be sure you understand the laws with which you will need to comply.

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Performing Background Checks

Many businesses are required by law to check the background of potential employees, independent contractors, and volunteers. These include businesses that work with children, the elderly, the physically or mentally disabled, bank employees, alcohol permit holders, truck drivers, and others. Other businesses may want to perform some type of background check to be certain that applicants are honest and don't have issues that may negatively affect their ability to perform their work, such as an alcohol or drug problem, particularly if employees have access to money or credit card information or use company vehicles.

A background check should include verification of references, past employment, and education as reported on a resume or employment application. It may also include obtaining fingerprints, checking the person's credit record, driving record, past alcohol or drug use, verification of Social Security number, and/or past criminal history. If your business works with children or vulnerable adults, you may need to check the state sex offender registry.

Many businesses don't have the expertise to perform a thorough background check and may need to use the services of a company specializing in background investigations. If you want to begin the process yourself, you can find information on the Idaho State Police Web site at http://www.isp.state.id.us/identification/. For information on fingerprinting, visit http://www.isp.state.id.us/identification/crime_history/fingerprint.html and http://www.isp.state.id.us/identification/ApplicantNCPAFingerprintProgram.html.

Volunteers - If your business, church, or non-profit organization uses volunteers who come in contact with children or vulnerable adults, they may need to submit to fingerprinting and a background check. This may include church volunteers, sports coaches, and volunteer teachers.

Privacy issues - A prospective employee or current employee's right to privacy may be violated when performing a background check, so be careful. The federal Fair Credit Reporting Act (FCRA), administered by the FTC, sets national standards for employers who want to learn more about an applicant or a current employee. The Act covers "consumer reports," and employment background checks are considered a form of consumer report. In addition to credit issues, the Act covers information that can and cannot be collected about a person’s “character, general reputation, personal characteristics, and mode of living.” The Act also limits access to information contained in a background check to certain key individuals within a company. For an employment background check to qualify as a “consumer report” under the FCRA, it must be prepared by an outside agency, not by your business. For more information, visit http://www.privacyrights.org/fs/fs16b-smallbus.htm. The Fair Credit Reporting Act can be found at http://www.ftc.gov/os/statutes/fcradoc.pdf.

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Employee Misconduct

Employee misconduct ranges from simple issues such as spending too much time on the phone or Internet to acts of violence. Some situations can be handled with a reprimand. More serious offenses may require an investigation to substantiate allegations or suspicions. Situations warranting an investigation may include:

  • Misconduct relating to conditions of employment, including misuse of equipment, computers, and vehicles.
  • Violation of federal, state, or local laws or regulations, including laws against harassment.
  • Violation of any of the business's pre-existing written policies, including issues covered in employee handbooks.
  • Noncompliance with the rules of a self-regulatory organization that oversees your industry, such as an occupational licensing board, State Bar, or Board of Medicine.
  • Use of alcohol or drugs on the job or any situation that impairs the employee's ability to safely perform his/her work or that affects the safety of other employees, customers, or the public.
  • Aggressive or belligerent behavior toward the employer, other employees, customers, or the public.
  • Theft

Depending on the nature of the offense, you may want to hire an outside investigator to assure that you and your business have some legal protection from a potential lawsuit. You may also want to contact your attorney before beginning the investigation. According to the Fair Credit Reporting Act, which covers pre-employment and current employment investigations, you do not need to notify an employee or obtain permission to perform an investigation. 

If you decide to take action against the employee after an investigation is completed, you must give the employee an “adverse action” notice, but only after the action (such as a suspension or termination) has been taken. An employee who is the subject of a misconduct investigation is legally entitled to receive only a summary of the investigation report, but not the full report, which may include names or other confidential information.

Depending on the situation, the completed investigation report may need to be shared with:

  • Your attorney
  • The police 
  • Representatives of any federal, state, or local agency charged with oversight of the business activity in question, such as the Department of Finance, Department of Insurance, or IRS.
  • Any self-regulatory organization with regulatory authority over the activities of the employer or employee, such as an occupational licensing board, State Bar, or State Board of Medicine.
  • Any other organization as required by federal, state, or local law.

Do not share the report with other employees or with anyone who does not have a legal need to know. It is important to protect the privacy of the employee under investigation.

According to recent amendments to the Fair Credit Reporting Act, an employee cannot dispute the findings of an investigative report with the employer, but he/she may be able to file a law suit if wrongful termination can be proved. The Fair Credit Reporting Act, which is administered by the Federal Trade Commission, can be found at http://www.ftc.gov/os/statutes/fcradoc.pdf

For more information on this topic, visit http://www.employeemisconduct.com/ and http://www.privacyrights.org/fs/fs16b-smallbus.htm#9.


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