EMPLOYMENT LAW FOR FARMERS AND RANCHERS
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1 EMPLOYMENT LAW FOR FARMERS AND RANCHERS Presented by: SHANNON L. FERRELL, Esq., J.D. Assistant Professor, Agricultural Law Oklahoma State University Department of Agricultural Economics Written by: SHANNON L. FERRELL, Esq., J.D. Assistant Professor, Agricultural Law Oklahoma State University Department of Agricultural Economics 532 Agricultural Hall Stillwater, OK RODNEY JONES, Ph.D. Area Extension Agricultural Economist Oklahoma State University Department of Agricultural Economics 316 E. Oxford Enid, OK State Bar of Texas 5TH ANNUAL JOHN HUFFAKER AGRICULTURAL LAW COURSE May 19-20, 2011 Lubbock CHAPTER 9
2 TABLE OF CONTENTS I. INTRODUCTION... 1 A. Abstract... 1 B. Preface... 1 II. ASSESSING HUMAN RESOURCE NEEDS FOR THE FARM AND RANCH... 1 A. Understanding the Vision Statement for the Farm and Ranch... 1 B. Assessing Current and Needed Human Resources... 1 C. Preparing Job Descriptions... 2 III. PREPARING TO BE AN EMPLOYER... 2 A. Choosing an Entity Structure for the Farm and Ranch... 2 B. Establishing an Identity Obtaining Your FEIN... 2 C. Preparing for Federal Tax Withholding A Note About Employees and Independent Contractors Form W Withholding Federal Income Tax, Social Security Tax, and Medicare Taxes Federal and State Unemployment Taxes Deadlines for Employee Withholdings... 4 IV. RECRUITING, INTERVIEWING, AND HIRING... 5 A. Handling Discrimination Concerns Title VII of the Civil Rights Act of The Americans with Disabilities Act (ADA) The Age Discrimination in Employment Act Veteran Status Conviction Records... 7 B. Caution Regarding Negligent Hiring... 7 C. The Recruitment Process... 7 D. Interviewing... 7 E. Some Closing Thoughts on Recruitment and Interviews... 8 V. TASKS FOR A NEW HIRE... 9 A. Employment Eligibility Verification: Form I B. New Employee Hire Reporting C. Workplace Notices VI. ON THE JOB: WORKING WITH CURRENT EMPLOYEES A. Training Employees B. Motivating, Leading, and Directing Employees The Importance of Communication Generational Traits in Communication C. Handling Payday D. Minimum Wages and Overtime E. Recordkeeping F. When Children Work on the Farm or Ranch G. Safety Regulations for the Farm and Ranch H. Workers Compensation in Agriculture I. The Family Medical Leave Act in Agriculture i
3 VII. EVALUATING EMPLOYEES PERFORMANCE A. Conducting Positive Evaluations B. Discipline and Discharge VIII. COMPENSATION IX. YOUR EMPLOYER REPUTATION: BEING THE PLACE WHERE EVERYONE WANTS TO WORK X. CONCLUSION APPENDIX A - INTERVIEW QUESTIONS APPENDIX B - EMPLOYER CHECKLIST ii
4 TABLE OF AUTHORITIES Cases EEOC v. General Dynamics Corp. 999F.2d 113 (5 th Cir 1993)... 9 Ewald v. Wornick Family Foods Corp, 878 S.W.2d 653, 659 (Tex. App. Corpus Christi, 1994)... 5 Fifth Club, Inc. v. Ramirez196 S.W.3d 788, 796 (Tex. 2006)... 7 Garcia v. Schwab, 967 S.W.2d 883, 885 (Tex. App. Corpus Christi, 1998)... 5 Griggs v. Duke Power Co., 401 U.S. 424, (1971)... 8 Pacheco v. Mineta, 448 F.3d 783 (5th Cir. 2006)... 8 Robert J. Patterson, P.C. v. Leal, 942 S.W.2d 692, 694 (Tex. App. Corpus Christi 1997) Robicheaux v. Radcliff Material, Inc. 697 F.2d 662, 666 (5 th Cir. 1983) Schneider v. Esperanza Transmission Co., 744 S.W.2d 595 (Tex. 1987) TEX. LAB. CODE University of Texas v. Poindexter, 306 S.W.3d 798, 811 (Tex. App. - Austin, 2009)... 8 Statutes 29 U.S.C. 203(d) U.S.C. 203(l) U.S.C. 203(u) U.S.C. 206(a) U.S.C. 206(a)(1)(C) U.S.C. 206(a)(4) U.S.C. 207(a) U.S.C. 207(a)(1) U.S.C. 213(a)(6) U.S.C. 216(a) U.S.C. 216(a),(b) U.S.C. 2611(4)(A)(i) U.S.C. 630(b) U.S.C. 631(a), 623(a) U.S.C. 201 et seq U.S.C. 203(f) U.S.C (f) U.S.C et. seq U.S.C (5)(A) U.S.C (9) U.S.C (a), (b)(5)(a) U.S.C (d)(2)(A) U.S.C (d)(2)(B) U.S.C. 2000e(b) U.S.C. 2000e-2(a) U.S.C. 2000e-5(e)(1) U.S.C. 453A(c) U.S.C U.S.C. 653A(a)(2)(A) U.S.C (10) U.S.C. 1324a et seq... 9 TEX. LAB. CODE TEX. LAB. CODE TEX. LAB. CODE TEX. LAB. CODE Tex. Lab. Code TEX. LAB. CODE TEX. LAB. CODE TEX. LAB. CODE (a) iii
5 TEX. LAB. CODE TEX. LAB. CODE TEX. LAB. CODE (a),(b) TEX. LAB. CODE (c) TEX. LAB. CODE et seq... 5 Texas Labor Code (a)... 5 Other Authorities Andrea Johnson and Katrina Grider, SECURING HIRING SUCCESS, EASY GUIDES TO EMPOWER BUSINESS, Texas Bar CLE (Austin, November 19, 2010)... 1 Department of Labor Child Labor Bulletin No Don Hofstrand, MAKING FAMILY BUSINESS DECISIONS, Iowa State University Extension File C4-72 (2007) Dychtwald, K., T.J. Erickson, and R Morison. WORKFORCE CRISIS, Boston: Harvard Business School Press (2006) EEOC FILES NATIONWIDE HIRING DISCRIMINATION LAWSUIT AGAINST KAPLAN HIGHER EDUCATION CORP EEOC Notice Number , ENFORCEMENT GUIDANCE: PREEMPLOYMENT DISABILITY-RELATED QUESTIONS AND MEDICAL EXAMINATIONS (1995)... 6 EEOC POLICY STATEMENT ON THE ISSUE OF CONVICTION RECORDS UNDER TITLE VII OF THE CIVIL RIGHTS ACT OF 1964 (1987)... 7 Gigi DiGiacomo, et al., BUILDING A SUSTAINABLE BUSINESS: A GUIDE TO DEVELOPING A BUSINESS PLAN FOR FARMS AND RURAL BUSINESSES MISA REFERENCE, MINNESOTA INSTITUTE FOR SUSTAINABLE AGRICULTURE (2003)... 2 Gisela Bradley, EMPLOYMENT ISSUES, Texas Bar CLE (Austin, November 19, 2010)... 8 Gregory Billikopf, Labor MANAGEMENT IN AGRICULTURE: CULTIVATING PERSONNEL PRODUCTIVITY. Agricultural Extension: University of California IRS Publication 15-A, Employer s Supplemental Tax Guide IRS Publication 505, Tax Withholding and Estimated Tax... 3 IRS Publication 51, Circular A, Agricultural Employer s Tax Guide... 3 IRS Publication 919, How Do I Adjust My Tax Withholding... 3 J.M. Twenge. GENERATION ME. New York: Free Press (2006) M. Taylor, GENERATION NEXT COMES TO COLLEGE: 2006 UPDATES AND EMERGING ISSUES. In A COLLECTION OF PAPERS ON SELF STUDY AND INSTITUTIONAL IMPROVEMENT, 2006 Vol.2, ed. S.E. Van Kollenburg, Chicago: The Higher Learning Commission Personal Correspondence with Jason Resnick, 4/27/ R. Schuler, MANAGING HUMAN RESOURCES. Cincinnati Ohio, South-Western College Publishing (1998) Richard Stup, JOB DESCRIPTIONS: THE BUILDING BLOCK OF ORGANIZATIONS. Penn State Dairy Alliance, Rodney Jones and Sarah Fogelman, FARM AND RANCH STRATEGIC PLANNING (VISIONING AND GOAL SETTING, (2005)... 1 Schneider, C. G., and R. Miller, LIBERAL EDUCATION OUTCOMES. Washington D.C.: Association of American Colleges and Universities W. Strauss and N. Howe, GENERATIONS. New York: Quill (1991) iv
6 Rules 20 C.F.R C.F.R C.F.R. Part C.F.R (a) C.F.R (c) C.F.R C.F.R C.F.R (b) C.F.R C.F.R C.F.R (a)(1)(B) C.F.R (a)(1)(i)(A) C.F.R C.F.R C.F.R (a) C.F.R. Part C.F.R. 274a C.F.R. 274a C.F.R. 274a Department of Labor, FIELD OPERATIONS HANDBOOK 30c v
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