1.7 Human Resources Management
Key Takeaways
- Florida employers must complete Form I-9 for work authorization, Form W-4 for federal withholding, and report each new hire to the Florida New Hire Reporting Center within 20 days under F.S. 409.2576.
- Florida is an at-will employment state, but termination cannot violate anti-discrimination statutes (Title VII, ADA, ADEA, Florida Civil Rights Act F.S. 760) or retaliate against workers' comp or safety complaints.
- A certified Drug-Free Workplace program under F.S. 440.102 requires an AHCA-licensed lab, documented chain of custody, and earns a 5% workers' compensation premium credit.
- Employee evaluation must be documented in writing; progressive discipline and performance reviews protect the employer in wrongful-termination and unemployment-compensation disputes.
- FLSA classification of exempt vs. non-exempt employees determines overtime eligibility; misclassification is a federal wage-and-hour violation the GC must avoid.
1.7 Human Resources Management
The Managing Human Resources content area of the Business & Finance exam (approximately 6% of the 120-question exam) tests the candidate's knowledge of hiring new employees, developing HR policies and procedures, and evaluating employees. A Florida general contractor typically manages a fluid workforce of direct employees and subcontracted labor, and the exam expects the qualifier to know the employment laws, required hiring forms, drug-testing rules, and evaluation practices that govern that workforce.
1. Hiring New Employees
Required Forms at Hire
Every new Florida employee triggers a sequence of mandatory forms and reports:
| Form / Report | Purpose | Authority |
|---|---|---|
| Form I-9 (Employment Eligibility Verification) | Verifies identity and work authorization; employer and employee each complete sections. | federal Immigration Reform & Control Act; E-Verify for public contracts in Florida. |
| Form W-4 (Employee Withholding Allowance Certificate) | Sets federal income-tax withholding from wages. | IRS / federal tax law. |
| Florida New Hire Reporting | Employer reports each new/rehired employee within 20 days of hire to the Florida New Hire Reporting Center. | F.S. 409.2576 and federal PRWORA (42 U.S.C. § 653A). |
| RT-6 / Reemployment Tax Registration | Registers the employer for Florida reemployment (unemployment) tax. | Florida DEO / F.S. 443. |
Exam Key: The 20-day new-hire reporting deadline under F.S. 409.2576 is a frequently tested number. Reports may be filed electronically, by paper form, or by submitting the W-4 with the employer FEIN written at the top.
Interviewing and Background Checks
- Interviewing skills: Questions must be job-related; avoid inquiries into protected-class status (race, religion, national origin, age, marital status, disability).
- Background checks: Permissible with written consent under the Fair Credit Reporting Act; Florida arrests not resulting in conviction generally may not be considered.
- Employment laws at hire: Title VII (Civil Rights Act), ADA, ADEA, Florida Civil Rights Act (F.S. 760), and FLSA all apply from the first interview.
2. Developing Human Resource Policies & Procedures
Employee Handbook Essentials
A Florida contractor's written HR policies should address:
- Wage and hour: FLSA minimum wage and overtime (1.5× regular rate over 40 hours); Florida minimum wage (adjusted annually); exempt vs. non-exempt classification (executive, administrative, professional exemptions require salary basis and duties tests).
- Equal employment / anti-discrimination: Written non-discrimination policy covering race, color, religion, sex, national origin, age (40+), disability, pregnancy, and Florida-protected categories.
- Drug-free workplace: A written program under F.S. 440.102.
- Workplace safety: OSHA compliance, injury reporting, and a written safety program (cross-references the OSHA chapter).
- Leave policies: FMLA (≥50 employees), Florida-specific leave, and jury-duty leave.
Drug-Free Workplace Program (F.S. 440.102)
A certified Drug-Free Workplace program is heavily tested because it earns a 5% workers' compensation premium credit and is mandatory for many public contracts. Requirements:
- Written policy stating the prohibition on drug use, the types of tests, and consequences of a positive result.
- AHCA-licensed laboratory (or HHS-certified lab) named in the policy.
- Chain of custody documented from collection through testing—loss of chain-of-custody invalidates a result.
- Confirmed positives require a Medical Review Officer (MRO) to rule out legitimate medical explanations before reporting to the employer.
- Types of tests permitted: pre-employment, reasonable suspicion, post-accident, routine fitness-for-duty, and post-rehabilitation.
Exam Key: The chain-of-custody requirement and the 5% premium credit are the two most-tested F.S. 440.102 facts. A positive result without a documented chain of custody cannot support discipline.
Insurance Regulations Affecting HR
- Workers' compensation coverage is mandatory for construction employers in Florida (F.S. 440.05) — see §1.4.
- Health insurance offerings must comply with ACA employer mandates for applicable large employers (≥50 FTE).
3. Evaluating Employees
Performance Review Process
Evaluation is an ongoing management duty, not an annual event. A defensible evaluation system includes:
- Written job description defining expectations and measurable standards.
- Periodic performance reviews (e.g., 90-day introductory, then annual) documented in writing.
- Progressive discipline steps: verbal warning → written warning → final written warning → termination, each documented.
- Documentation of every incident; undocumented discipline is unenforceable in an unemployment-compensation or wrongful-termination hearing.
At-Will Employment and Termination Limits
Florida follows employment at will—either party may end the relationship for any reason not prohibited by law. The qualifier must know the exceptions that convert a legal termination into a wrongful one:
LAWFUL at-will termination:
- Poor performance (documented)
- Reduction in force
- Policy violation (documented progressive discipline)
WRONGFUL termination (statutory exceptions):
- Discrimination (Title VII / ADA / ADEA / FL Civil Rights Act)
- Retaliation for filing a workers' comp claim (F.S. 440)
- Retaliation for an OSHA safety complaint
- Retaliation for reporting misapplication of funds
- FMLA-protected leave
Final Paycheck
Florida has no state final-paycheck statute. Under the federal Fair Labor Standards Act (FLSA), all earned wages must be paid on the next regularly scheduled payday, whether the employee quit or was terminated. The final check must include all hours worked plus any accrued bonuses, commissions, and accrued leave the employer's policy pays out. An employer that withholds earned wages may be liable for the wages plus attorney's fees under F.S. 448.08.
Connecting HR to the Business & Finance Exam
The HR content area is small (≈6%) but the questions are specific and factual. Expect scenario questions such as:
- A contractor hires a worker and files no new-hire report for 60 days → violates the 20-day rule under F.S. 409.2576.
- A positive drug test is used to fire an employee with no documented chain of custody → discipline cannot stand under F.S. 440.102.
- A superintendent is classified as exempt and paid a salary but spends 80% of time on manual labor → likely FLSA misclassification.
- An employee is fired one week after filing a workers' comp claim → retaliation presumption.
Within how many days of hire must a Florida employer report a newly hired or rehired employee to the Florida New Hire Reporting Center under F.S. 409.2576?
A Florida contractor fires an employee based on a positive drug test, but the lab cannot produce a documented chain of custody from collection through testing. What is the result under F.S. 440.102?
A Florida superintendent is paid a salary and classified as exempt from overtime, but spends roughly 80% of the workweek performing manual carpentry labor. What is the primary compliance concern?