I attended a webinar this month, put on by Brotherhood Mutual Insurance which is one of the companies we proudly represent. I attended an earlier webinar on Tax issues and found in both cases that even though it was directed toward Churches and Ministries, the information was just as helpful for businesses. I will share the basic outline used and some sites to go to for additional information and hope you find it helpful, too.
Saying Hello and Goodbye: How to Hire, Discipline, and Terminate Ministry Employees
Webinar led by: Kathleen Turpin, JD, CPCU
Vice President – Human Resources at Brotherhood Mutual Insurance Co.
Guidelines for Hiring Employees
Step 1: Employee or Independent Contractor
Incorrectly classifying an employee as an independent contractor could leave a ministry on the hook for back taxes, severe fines, and other penalties. You can learn more from the 10 Factor Test by clicking the link.
Court Considerations
In order for an independent contractor relationship to exist, the courts consider all of the factors. The more of the factors the courts finds exist, the more
likely they will find that the worker is an employee rather than a contractor.
Step 2: Job Descriptions
A well‐crafted job description is not only beneficial to protect your ministry legally, but it also spells out for an applicant what is expected to perform a job
successfully.
A job description does not need to be lengthy or cover everything the job entails, but it should give the applicant a good feeling of what he or she will be expected to do.
Why are job descriptions necessary?
The job description is the legal starting point when determining whether an organization has complied with or violated a law.
Job descriptions can also be helpful in:
• Determining compensation
• Evaluating performance
• Training
• Discipline
• Americans with Disabilities Act compliance: Analyzing essential functions
Job descriptions typically include the following:
• A short, high‐level summary of what the job is
• A list of key responsibilities
• A description of the experience, education, skills, and values that are required or desired
• A list of any special working conditions or minimum physical requirements needed for the position
Step 3: Interviewing/Screening
Interviewing Best Practices:
• Use a formal application if you hire more than one person a year
• Come prepared
• Explain the process
- I’ll tell: about the ministry
- I’ll ask: about experience, skills, mission alignment
- I’ll answer: about organizational structure, compensation,benefits
- We’ll discuss: unanswered questions
• Conclude with contact information and next steps
Questions to avoid:
• Age
• Nationality
• Family status (plans to have children)
• Health related questions
As a ministry, you are permitted to ask about the applicant’s testimony and willingness to agree to a lifestyle statement and ministry mission.
Screening best practices:
• It is important to conduct a background screening on all employees, especially if they will work with children or vulnerable adults.
• Use a reputable and accurate company for background checks.
• Take results seriously.
• Check references.
Step 4: Offer Letters
Every employee should receive an offer letter – a verbal “handshake” alone isn’t recommended.
Step 5: Forms & Procedures: Background checks, I‐9
Forms to Complete:
• W‐4 for Federal Income Tax Withholding (must be completed before receiving their first paycheck)
• State Income Tax Withholding Form
• Register each new employee to your state’s new hire reporting agency
• I‐9 form
- Employees must also provide a photo document establishing identity (such as a driver’s license) and eligibility (such as a Social Security card).
- Copies aren’t acceptable forms of ID.
- Note: I‐9 forms must be kept in a separate folder.
Guidelines for Disciplining Employees
Using Progressive Discipline
• Oral Warning
Use specific examples
Document this warning
• Written Warning
Deliver during a formal meeting
Review previous warning
Clarify expectations
Obtain signed employee acknowledgement
Using Progressive Discipline
• Corrective Action Plan
Outline previous corrective actions
Explain specific behavior or performance issues
Set out specific improvement goals
Review potential consequences
Obtain signed employee acknowledgement
• Last Chance Agreement
Typically reserved for serious issues and isn’t necessary to use prior to termination
Lay out conditions for immediate termination
Obtain signed employee acknowledgement
Guidelines for Terminating Employees
Termination best practices:
• Surprises aren’t good
• Consult local counsel
• Plan the exit strategy
• Find out which documents to collect
• Gather paperwork for benefits
• Determine severance, if appropriate
• Discuss security (physical and technological)
• Decide what information will be shared, with whom, and when
Termination red flags:
• Severance agreements
• Payout of vacation and sick time
• Two‐week notice
• Unemployment benefits
• Withholding final paycheck
What to say to staff:
• Stick to the facts
• Remind them of confidentiality standards
• Recognize they shouldn’t “defend”
• Provide talking points
• Explain next steps
What to say to the congregation:
• Stick to the facts
• Don’t provide personal details
• Explain why additional details can’t be provided
• Show compassion
What to say to the community:
• Stick to the facts if you say anything
• Don’t provide personal details
• Know how to respond to reference letters
• Have a plan for dealing with media requests
Ten Things Every Church Administrator Should Know About Staff and Volunteers
This free resource was created especially with church administrators in mind. It provides instructions, tips, and links to sample forms and checklists on a variety of administrative topics concerning employees and volunteers.
Download now!
Working Together
Ministry employment practices guidebook, featuring:
• Best practices
• Sample forms and policies
• Tips for preparing an employee handbook
Go to BrotherhoodMutual.com and search “Working Together”