Personnel

Procedure is required action to be followed: Procedure is the established way of doing something; a series of actions conducted in a certain order; and/or steps necessary to meet the terms of a grant agreement.

Guidance is supporting information or recommended action: Guidance consists of recommended best practices; helpful context; and/or tools, resources and examples.

Records and policies

Recipients of BWSR grants are responsible for maintaining records relating to personnel and are encouraged to have comprehensive personnel policies and policies which govern payroll functions. Personnel policies should address the following: hiring procedures, new employee orientation, work schedules, compensation, timekeeping, benefits, worker’s compensation, performance appraisal, data privacy, leave, separation from employment, and complaint & grievance procedures. Consult your legal advisor or an employment law specialist for specific personnel or payroll questions.

Independent contractors

Grantees may use independent contractors; however, keep in mind that a strictly contractual relationship must be distinguished from an employment relationship under the Fair Labor Standards Act (FLSA). Typically, independent contractors do not acquire tenure rights or any rights or benefits by way of worker’s compensation, unemployment compensation, medical and hospital insurance, sick and vacation leave, severance pay, pensions or any other right or benefit normally provided to your employees. In addition, independent contractors do not have taxes withheld from their compensation. An employer can be held liable for employment taxes, plus interest and penalties, if a worker is incorrectly classified as an independent contractor. Consult IRS Publication #15a, MN Department of Revenue withholding fact sheet 8, or an employment law specialist for additional information.

Stipends

Grantees should not use stipends to hire individuals for scheduled duties, whether payment is by cash or check. Stipends are generally small allowances or living expense reimbursements paid to program volunteers for the purpose of compensating them for their “out-of-pocket” expenses. Remember, the concept of a “paid volunteer” sounds very much like an employee.