required so that the U.S. Department of Labor
can make sure that employers are following the
requirements of the FLSA.
Most HR departments keep additional
records on each employee. These records
include performance reviews and benefit pro-
gram enrollments. If an employee has perfor-
mance or conduct problems, these are also
documented and kept in the personnel files.
HR must keep personnel files up-to-date.
New files must be made for new employees.
Changes in employee status must be recorded.
Changes include retiring, leaving the company,
promotions, new address, and changes in family
status such as marriage, divorce, or new chil-
dren. In addition, the FLSA requires employers
to keep certain records for two to three years.
Many HR departments use computers to
help with record keeping. A Human Resources
Information System (HRIS) is the general name
for a computer system that human resources
departments use for personnel records. It is rela-
tively inexpensive software and very user-
friendly. An HRIS system can keep track of
employee information such as employee atten-
dance, wage histories, anniversaries of hire date,
birth dates, disciplinary records, names,
addresses, and social security numbers. The
software can then be used to quickly access
information about any employee. HRIS can
also be used to generate reports. For example,
an HRIS can generate a report on a specific
employee, such as the work history and number
of days the employee has missed work. An
HRIS can also generate reports about all the
employees, for example, how many employees
are currently on staff, the average wages, and
the average workdays missed.
An important responsibility of HR is confi-
dentiality, 17-13. HR staff members have access
to a great deal of personal, private information.
HR staff must be able to keep private all private
information. All employee files are confidential.
Only the employee and authorized HR staff can
see the whole file. The manager to whom the
employee reports directly can only see items
directly related to job performance. That man-
ager cannot see any personal information, for
example, medical information.
Labor Relations
The word labor is another term often used
for human resources, that is, the people who
work for a company. However, labor also has a
more specialized meaning. Labor is the term
used to refer to those workers who are members
of a labor union. A labor union is an organi-
zation for workers who perform similar work.
The purpose of a labor union is to make sure
that the union members get fair wages, decent
benefits, and safe working conditions. Labor
unions achieve this purpose through collective
bargaining. Collective bargaining is the way
that labor and management discuss what they
expect from each other. The union represents the
workers in collective bargaining with manage-
ment. Many unions also offer training and
apprenticeship programs.
There are several unions active in the hospi-
tality industry. One of the major unions is the
Hotel Employees and Restaurant Employees
International Union (HERE). HERE represents
over 250,000 people who work in the hospitality
industry in North America.
At each hospitality business, it is up to the
employees whether they want to be represented
by a union. Many hospitality businesses have no
union representation. Some hospitality busi-
nesses have several unions. Each union repre-
sents a different group of workers. In a business
where there is union representation, the relation-
ship between the labor unions and the manage-
ment of the company is called labor relations.
HR is usually responsible for labor relations.
There are many laws that govern labor rela-
tions. The main law is the federal National
Labor Relations Act. Many states have devel-
oped their own laws for labor relations. HR is
responsible for making sure that all labor rela-
tions laws and regulations are followed.
Employee Retention
Employee retention refers to the efforts
made to keep good employees and reduce
turnover. Turnover occurs when an employee
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Part 4 The Business of Hospitality