Summer is here, and I was thinking, wouldn’t it be nice if this month’s newsletter could just be about fun things?
This week, I got to walk the game ball out to the pitching mound at the start of the Angels game, (pictured above and in the side bar). Huge thanks to Joe Naddour for making that happen. I’m calling this step number one toward my dream of throwing out the ceremonial first pitch someday.
I could also share some highlights from my recent Virgin cruise, like chatting with the HR leader and getting a behind-the-scenes tour. These are always on my list when I take a cruise. I want to see how the “sausage” is made, so to speak. On my latest cruise adventure, what really stood out to me was the onboard culture.
Virgin is just different and in great ways. Everywhere you went, someone greeted you with a cheerful “Hi Sailor!” The employees showed their personalities and joked with guests. They sounded genuine, not scripted. Even the Sailor Services app responses had some humor and attitude. It was clear the culture was intentional, not robotic or cookie-cutter. It is like a breath of fresh sea air! Virgin’s team members usually work no more than six months at a time (compared to 9-10 month contracts on other cruise lines). Twelve-hour days are common, and depending on their visa, some employees can’t leave the ship in the U.S. Imagine being on a ship for six months straight! Still, you could feel a difference in how the employees interacted with passengers and each other, and everyone was always pleasant and helpful.
I’d love to spend this whole newsletter talking about baseball games, cruises, and great company culture. But the truth is, there are important things happening right now that employers need to pay attention to.
The Little Things Add Up
Sometimes I feel like I’m repeating myself, reminding companies about payroll audits, HR audits, wage-and-hour issues, documentation problems, and compliance gaps. The reality is, our team sees these issues every day. I wouldn’t be true to myself or our company’s values if I didn’t use this newsletter to help the people who take time out of their busy day to read it.
Lately, we’ve been working on several audits, and I always want clients to know that audits are judgment-free zones. We’re not there to criticize or point fingers. Our goal is to help spot issues before they turn into fines, penalties, lawsuits, or agency headaches. Most of the time, employers are not intentionally doing something wrong. It is usually the little things, or overlooked details, that trip them up. Unfortunately, agencies don’t care about the “we didn’t know that changed” situations. Small mistakes across multiple employees or over several years can become very expensive.
Real Examples We Are Seeing
In a recent I-9 audit, we found an employer entering the wrong information in Section 2 of the form. They used the employee’s Alien Registration Number instead of the 13-character Permanent Resident Card document number. It might seem minor, but it’s a violation. Fines for this type of error can add up. Fines range from $288 to $2,861 per Form I-9! One simple mistake that is repeated could cost a company tens of thousands.
In another audit, we found a company trying to incentivize its employees by offering inside sales reps a flat $75 for coming into the office on weekends to process a client order. It is completely voluntary. The intention was great, but again, California doesn’t care about your intentions. If employees are required to return to work after their shift, they must be paid at least two hours of reporting time pay (usually OT), not just a flat fee. This company was trying to do something positive, but it didn’t match California law.
Even something as simple as workplace posters can cause problems. During a recent client site visit, we found that the required California labor law posters weren’t displayed where employees could easily read them during their normal workday. California law requires these postings, and failure to display them properly can lead to state and federal penalties.
The Hard Conversations Matter
Sometimes the hardest part of our job is having tough conversations.
No one likes to hear that a process they’ve used for years could cause compliance issues. No one wants to find out that trying to do the right thing for employees might not match California law. But these conversations are important.
The reality is that most employers are busy running their businesses, supporting employees, helping customers, and managing day-to-day operations. Things get missed. Processes or laws change. Someone learned something years ago, and no one realizes the law or interpretation has changed.
That’s why audits matter.
We do this because even small HR compliance issues can turn into costly problems if they’re not addressed. Our priority is to help you catch these before they grow.
Real Partnerships Require Real Conversations
So yes, I’d rather spend this newsletter talking about baseball games, cruises, and what fun summer things are planned, but we are here to provide a service to you.
As I mentioned above, I appreciated that the Virgin culture felt real and not cookie-cutter or scripted. People showed up as humans, spoke honestly, and focused on creating a better experience for everyone.
That’s the same philosophy our Ethos team brings to client relationships. We focus on open HR compliance communication, honesty, and creating safe spaces for real discussions.
Sometimes that means celebrating wins. Other times, it means having tough conversations about compliance risks, payroll practices, or processes that need fixing before they become bigger problems. At Ethos, we’re here for the good times and to work alongside you to help prevent the bad ones.
I hope you take some time this summer to relax and enjoy whatever makes you happy! Me, I will be dreaming about throwing out the first pitch at a future Angels game! Until my next cruise….
Cheers,
Linda Duffy
