Hiring Employees — Step-by-Step Guide

What this video covers

This webinar, presented by Northland SBDC and HR consultant Rovena Claxton, guides small business owners through hiring their first employees. It outlines operational scheduling, the legal distinction between employees and independent contractors, and candidate recruitment and screening. While recruitment and interviewing best practices apply universally, the tax IDs, new-hire reporting timelines, Wage Theft notices, and lactation break mandates are specific to Minnesota.

Best for: Small business owners making their first employee hires; Employers in Minnesota needing to comply with state Wage Theft and new hire rules; Business owners evaluating whether to engage contractors or W-2 staff; Not intended for large enterprises with dedicated in-house HR legal departments

Chapters

1. 00:01 Introduction & Northland SBDC Services
2. 04:31 Hiring Agenda & Presentation Goals
3. 06:40 Post-Pandemic Labor Market Challenges
4. 11:28 Pre-Planning: Work Tasks & Full-Time vs. Part-Time
5. 16:36 Timeline of Hiring Activities Prior to Opening
6. 21:50 Independent Contractor vs. Employee Classification
7. 33:33 Employer Checklist: EIN, UI, and Insurance
8. 45:08 Mandatory Recordkeeping: W-4, I-9, and Wage Theft Notices
9. 50:06 Hiring for Attitude: Defining Job Requirements
10. 53:50 Job Postings and Sourcing Channels
11. 1:00:08 Screening Resumes & Structured Interview Questions
12. 1:05:32 Making Job Offers & Candidate Decision Windows
13. 1:10:43 Employee Handbooks and Essential Work Policies
14. 1:15:53 First-Day Onboarding and Retention Check-Ins
15. 1:20:26 Hot Compliance Topics: Labor Posters, Overtime, and Paid Breaks

Key points

• 08:42 US unemployment claims dropped from roughly 18 million during the peak pandemic period to 1.5 million by early 2022
• 13:56 Full-time employment is generally defined in business HR practice as 30 hours per week or more
• 14:46 Employers are not legally mandated to provide employee health insurance until they reach 50 or more full-time equivalent employees
• 19:08 Posting a job, interviewing, and selecting candidates typically requires approximately 60 days
• 27:11 The Minnesota Attorney General estimates that up to 20 percent of Minnesota employers misclassify at least one employee as an independent co
• 29:05 Businesses must file Form 1099 by January 31 for any independent contractor paid $600 or more during the prior calendar year
• 36:12 Minnesota state law mandates reporting all new hires and rehires within 20 days of hire
• 48:58 Minnesota's Wage Theft Law took effect July 1, 2019, requiring written wage notices provided to employees upon hire
• 59:58 Quality job candidates remain on the open market for an average of only 10 days before accepting an offer
• 1:10:00 Minnesota's Ban the Box law prohibits employers from asking about criminal history until an offer of employment has been extended
• 1:12:50 An employee handbook is not legally required by statute, but it provides an employer's best affirmative defense against employment disputes
• 1:22:20 OSHA fines for failing to display mandatory workplace safety posters can reach up to $14,000
• 1:24:10 Effective January 1, 2022, Minnesota law requires that lactation breaks for nursing mothers be paid time

Turn it into a project: Establish a Compliant Small Business Hiring System

Follow a structured hiring workflow from scheduling needs and tax account setup through recruiting, compliant paperwork, and new-hire retention.

Phase 1: Pre-Hiring Setup and Classification

1. 15:59 Build a core schedule of operating hours and necessary shift tasks
2. 25:20 Determine worker classification (W-2 employee vs. 1099 contractor) based on control and tools
3. 35:10 Obtain federal EIN, Minnesota Tax ID, and establish state UI account online
4. 36:58 Secure workers' compensation insurance policy

Phase 2: Offer and Regulatory Documentation

1. 36:12 Report new hire to the state registry within 20 days
2. 45:10 Collect completed W-4 and state W-4MN forms
3. 45:26 Complete Form I-9 verification within 3 business days of start date
4. 47:19 Issue and have employee sign the Minnesota Wage Theft written notice
5. 1:07:06 Send written conditional offer letter with pay rate, start date, and response deadline

Phase 3: Recruiting and Screening

1. 53:50 Publish job posting on chosen platforms (state job banks, job boards, community sites)
2. 55:12 Draft job description with clear titles and preferred qualifications
3. 1:00:10 Conduct telephone pre-screening interviews
4. 1:03:00 Hold structured in-person interviews using behavioral and situational questions

Phase 4: Onboarding and Policy Compliance

1. 1:12:35 Distribute employee handbook containing at-will disclaimer and key policies
2. 1:20:01 Conduct scheduled 30, 60, and 90-day check-in stay interviews
3. 1:22:00 Post required state and federal labor posters in a visible staff area

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