HR Forum

Wellness programs stay strong despite recession

Despite the recession, companies continue to add wellness and health-management programs to reduce costs while encouraging employees to improve their physical health.

The latest Watson Wyatt/National Business Group on Health survey discovered that companies are still adopting employee wellness programs. The survey results also revealed that many companies improved employee participation rates by offering workers financial incentives.

Survey results show how companies increased the availability of various wellness programs:

58% of companies offer lifestyle improvement programs, up from 43% in 2007
56% offer health coaches, up from 44% in 2007
52% offer weight-management programs, up from 42% in 2007
80% offer health-risk appraisals, up from 72% in 2007

Companies that encouraged employees to participate in wellness programs by offering financial incentives reported significantly higher participation rates, according to survey results. Only 40% of companies reported that less than 5% of their workforce participated in weight-management programs.

"Employers continue to see gains from promoting wellness and health management initiatives," said Scott Keyes, senior group and health-care consultant at Watson Wyatt. "Effective financial incentives are one of the keys to encouraging worker participation in these programs — an effort that not only improves the health of workers but also helps reduce costs."

The survey also found that motivating employees with financial incentives significantly increased participation rates. Currently, 61% of employers offer incentives for health-risk appraisals and many employers are also offering incentives for smoking cessation and weight management programs.

Using financial incentives between $51 and $100 have been successful in encouraging employees to participate in smoking cessation programs, weight-management programs, and encourage employees to receive biometric screenings, according to the results.

"The relationship between the amount of the incentive and the level of program participation among employees is strong," said Sherri Potter, senior group and health-care consultant at Watson Wyatt. "A properly structured incentive program does much more than protect investments in health management; it creates a healthier and more productive workforce."

For more information on employee wellness programs and employee health, read these past posts:

Obesity linked to more expensive workers’ comp claims

HR survey reveals top green business practices

New research suggests exercise makes you smarter

Economic stress impacts employee health, productivity

How to beat stress in the workplace

Obama delays E-Verify requirement

President Obama has delayed the effective date of a new rule that would require government contractors to verify the immigration status of their employees using the federal government’s E-Verify electronic employment eligibility verification system. The new effective date is June 30, 2009.

E-Verify is the U.S. Citizenship and Immigration Services’ (USCIS) system that federal contractors would be required to use to verify the eligibility status of new hires and existing employees to work in the U.S.

Obama’s administration pushed back implementation of the new E-Verify rule in order to complete an administration review of the requirement, which is also the subject of a federal lawsuit, according to a Federal Register notice published Friday.

This extension will mark the third delay in the effective date of the requirement, which was originally scheduled to take effect January 15, 2009.

Domino’s employees fired, charged after “gross” video goes viral

On Monday, two Domino's Pizza employees posted videos on the Internet that resulted in their current unemployment, and also managed to create a disastrous PR storm for their former employer.

The two Domino's Pizza employees posted videos on the Internet showing themselves violating various health-code standards while preparing food for delivery. Since their video became a hit on YouTube, the employees have been charged with felonies for delivering prohibited foods.

A statement on the company’s corporate website apologizes for the unacceptable actions of their former employees and asks that customers continue their support, despite this embarrassment.

“The opportunities and freedom of the Internet is wonderful,” the statement reads. “But it also comes with the risk of anyone with a camera and an Internet link to cause a lot of damage, as in this case, where a couple of individuals suddenly overshadow the hard work performed by the 125,000 men and women working for Domino’s across the nation and in 60 countries around the world.” (Workforce Management)

Company President Patrick Doyle has also posted a video of his own in response to the “gross” video created by his former employees. Domino’s spokesman Tim McIntyre said the company is looking into what can be done to prevent anything like this from happening in the future, but says there’s only so much the Domino’s can do.

"You can be the safest driver, you know," McIntyre said. "But there's going to be that Friday night someone's drunk and comes from out of nowhere. You can do the best you can, but there's going to be the equivalent of that drunk driver that hits the innocent victim." (Advertising Age)

The food safety issues involved in this case can be kept under control with a combination of training, policy enforcement and complying with regular food safety inspections. But how can a company control what employees are saying about them online?

It’s impossible for a company to fully control what an employee is going to say or do on the Internet in regards to their employer. What companies can do is set standards and clear policies outlining responsible online behavior within the office and when an employee discusses the company on their own time.

Major companies including the BBC, Sun Microsystems and IBM have written social media guidelines for employees to help manage the risk that accompanies these online conversations. Each of these companies has a set of guidelines clearly posted on its website and serve as great examples when developing your own social media policies.

Policies will differ from company to company, but it’s important to have a clear set of standards that everyone in the organization can follow. Remember to run your social media policy through the legal department before distributing anything to employees. Finish the process with employee training that explains the company’s policy and how to act responsibly when talking about their employer online.

Like Domino’s spokesman said, “the opportunities and freedom of the Internet is wonderful,” but some employees may need help understanding the responsibility that comes along with talking about their employer online.

Do you think having a social media policy could have helped Domino's in the company's current situation? Does your organization train employees on responsible Internet use? Leave a comment and let us know.

ADA questions arise after new hire is found having conversations with herself

What do you do when an otherwise perfect new employee starts acting a little “off” after only a few months on the job?

Here’s the situation: A good friend, we’ll call her “Jane,” was hiring for an entry-level sales position about a year ago. She interviewed a candidate who was friendly, articulate, had a steady work history and seemed to be perfect for the job.

After a few weeks of training, employees in her training class and the instructor expressed some concern that the individual was slightly “off.” No one could pinpoint exactly what was wrong, so she remained in training and on course for employment.

About six months later, HR began receiving complaints about the new employee’s strange behavior. Among the various complaints, she had been seen talking to herself in the hallways and break room. Other complaints explained how she was spending an excessive amount of time in the bathroom, having hour-long conversations with herself in the mirror.

Jane contacted Employee Health and the employee was removed from the workplace after going through a complete mental health evaluation.

Though the situation was rather strange and unfortunate, it also brought up some legitimate legal concerns, specifically regarding the Americans with Disabilities Act (ADA):

What are the ADA consequences if you hired someone and then discovered this behavior on day two? Can you dismiss them?
Do ADA accommodation requirements come into play? Is there a time frame? Or is it from the moment of hire? What about before the hire?
If she was otherwise best qualified, can you refuse to hire solely based upon her mental illness?

We ran Jane’s situation and our ADA accommodation questions by the G.Neil legal team to get a better understanding. Generally speaking, here’s what employers should know:

The ADA makes it unlawful to discriminate in employment against a qualified individual with a disability. To be protected from employment discrimination under the ADA, the employee must be disabled (as defined by the ADA) and qualified to perform the essential functions of the job, with or without reasonable accommodation. Disabilities recognized by the ADA may be mental or physical.

Qualified means two things - first the employee must satisfy your requirements for the job, such as education, employment experience, skills or licenses. Second, the applicant or employee must be able to perform the essential functions of the job with or without reasonable accommodation.

If the disabled employee is considered disabled as defined by the ADA and can perform the essential functions of the job with/without a reasonable accommodation, the employee is protected under the ADA and cannot be terminated or not hired solely because of his/her disability.

Reasonable accommodations can include nearly anything, depending on the individual's disability. Examples of common accommodations include:

Making existing facilities readily accessible to and usable by individuals with disabilities
Job restructuring or reassignment to a vacant position
Acquiring or modifying equipment or devices
Adjusting or modifying examinations, training or policies
Providing qualified readers or interpreters
Modified work schedules or leaves of absence

Employers are not required to provide an accommodation that would cause the business an "undue hardship." Undue hardships usually occur when an accommodation would cost too much (based on the company's resources) or would substantially interfere with business operations. This is a legal determination that must be made on a case-by-case basis by the company human resources department and/or legal counsel.

An individual with a disability may request a reasonable accommodation at any time during the application process or during the period of employment. The individual does not have to mention the ADA or use any "trigger" words like "reasonable accommodation" to begin the process. Instead, he or she only has to give you enough information to alert you to the fact that he or she needs an adjustment because of a medical condition.

Requests do not need to be in writing or take any particular form; however, you should have individuals make the request in writing so that the information is documented for future use.

Generally, it is the disabled individual's responsibility to alert you to the need for any accommodation. You are not required to accommodate any disability you do not know about. However, you may initiate the accommodation process if you have noticed a change in the ability of a person with a known disability to perform the job.

The definition of disability was expanded under the new Americans with Disabilities Amendments Act (ADAAA). G.Neil’s updated ADA Facts Sheet is a simple resource to help explain the most recent ADA changes, the process for requesting accommodation, what qualifies as reasonable and more. The ADAAA went into effect on January 1, 2009, read more on how the changes affect your business.

What would you have done in Jane’s situation? Are there any other legal issues that would affect your decision?

Use sexual harassment training as prevention, not punishment

Cracker Barrel Old Country Stores, Inc. will pay $255,000 to settle a sexual harassment and retaliation lawsuit filed by the U.S. Equal Opportunity Commission (EEOC), the agency announced Thursday April, 9.

Cracker Barrel, based out of Lebanon, Tenn., had allegedly turned a blind eye to repeated sexual harassment incidents at its Cedar Bluff, Tenn. store location. The EEOC lawsuit claims that male managers and other employees made repeated and unwanted sexual jokes and lewd remarks to women.

When the women complained about the sexual harassment to the managers and made calls to Cracker Barrel’s compliant line, the company failed to take any action to stop the harassment.

The company failed to take any action to stop the harassment, even after the women complained about it to managers and to the company’s complaint line, according to the lawsuit.

Under the terms of the settlement, Cracker Barrel must:  

Modify its policies and practices regarding the investigation of sexual harassment claims,
Conduct annual training on sexual harassment and retaliation for all employees for a period of three years
Maintain and report complaints of harassment received for three years
Post the company’s sexual harassment policy and a statement it will investigate anonymous claims of sexual harassment.

Instead of having sexual harassment training be a punishment for your organization, make it a part of your company culture. Empower every employee with the promise that every sexual harassment claim will be taken seriously and that each case will be fully investigated.

Incorporate sexual harassment training into an overall harassment prevention program at your organization to ensure every employee, including managers and supervisors, know how to recognize and prevent harassing behavior.

Unfortunately, many of your employees may be engaging in or condoning sexual harassment without even realizing it. G.Neil’s Harassment-Free Workplace -- Take Control training program helps employees understand how they can “pause, fast forward, rewind and stop” to take responsibility for their own actions.

Office etiquette: Tips for “smart” phone use

Business etiquette tells us that answering a cell phone call during a meeting is something highly frowned upon. But what does business etiquette have to say about emails, texts and tweets?

Unfortunately, many people don’t realize that answering an email on your Blackberry or iPhone during a meeting can be just as rude as answering a call.

The chances that you’ll find someone in your office with a cell phone that is simply a phone have become quite slim these days. Along with calling, most of the cell phones on the market also have ability to text, email, tweet and instant message.

Because of the wide-range of tools these smartphones provide, it can be hard for some people to ever take them out of their pocket. For many of the mobile addicts out there, a review of some general business etiquette tips are in order.   The following tips can help any business-etiquette offender learn how to be more well-mannered:

Ask yourself: Is it really urgent? Most of the time, a call or email can wait until you’re out of a meeting or finished with an important task. If it isn’t urgent, let it go and check it later. If it is urgent, politely excuse yourself from the room and handle it quickly.

Don’t touch it. Even if you’re using the phone to take notes during the meeting, your colleagues may assume that you’re texting a friend or playing a game. Simply looking at your phone during a meeting causes people to wonder what you’re up to and diverts their attention away from the presenter.

Keep it off the table. Whether you’re in a conference room or a restaurant, it’s best to keep your phone off of the table. Keeping it in plain view shows to the people around you that they’re less important than what’s on your phone.

Lose it. If you find that you can’t get through a meeting or meal without constantly checking for a new message, lose it. Leave your phone at your desk and eliminate the temptation.

Post a sign. Some people need a clear sign that using their cell phone in certain areas of the office is not allowed. Post a “No Cell Phone Sign” to encourage people to silence or turn off their cell phones.

Company faces serious OSHA violations and fines, third year in a row

Neglectful businesses that take safety shortcuts and fail to protect employees can bet that they will soon find themselves subject to strict Occupational Safety and Health Association (OSHA) investigations and owing steep penalty fines.

At most cases, one negative OSHA inspection is all it takes to turn a company’s poor safety standards around. For some, like 4 Brothers Stucco Co., the third time’s a charm.

OSHA has proposed $118,650 in fines against the Cleveland, Tenn.-based 4 Brothers for 15 alleged repeat violations of safety standards, making this citation the third in three consecutive years for the stucco contractor.

The latest inspection discovered employees exposed to falls of up to 22 feet when working on scaffolding, in an aerial lift and on the roof of a worksite. OSHA also identified electrical, overhead and chemical hazard communication (HAZCOM) weaknesses at the worksite.

"These sizable fines reflect both the seriousness and recurring nature of several of the conditions cited here," said C. William Freeman III, OSHA's area director in Hartford, Conn. "Keep in mind that falls are the number one killer in construction work and can occur in an instant. Be it a scaffold, an aerial lift, or a roof, proper and effective fall protection must be in place and in use at all times."

The latest inspection resulted in six repeat citations for violations ranging from no fall protection for employees in an aerial lift, to workers not wearing helmets and employees not trained to recognize scaffold hazards. Similar violations were also found in 2007 and 2008.

OSHA issues serious violations in instances where death or serious physical harm could result, and the employer knew or should have known about the danger.

It’s most important to note that out of the latest set of nine serious citations 4 Brothers received included “lack of a hazard communication program, training, material safety data sheets, and protective gloves for employees working with cement and hazardous chemicals.”

There’s an alarming trend emerging as the economy suffers that has more businesses including necessary OSHA safety training in their budget cuts. It may seem like cutting safety training could help some companies save money, but it will only put more workers at risk for serious injury and death, leading to increased OSHA fines, workers’ compensation claims and wrongful injury lawsuits.

With the total cost of work-related injuries in the U.S. is more than $50 billion annually, it should be a clear sign that cutting workplace safety corners, especially employee safety training, puts the success of your business in serious danger.

As our country continues to work through this recession, the demand for cost-effective safety training has never been higher. G.Neil is answering that call with affordable safety training products that take the guesswork out of OSHA compliance and help keep your employees safe from workplace hazards.

Employees hit the road for National Start! Walking Day, tomorrow April 8

Thousands of Americans will bring along a pair of sneakers to work tomorrow and embark on a new journey to fitness that starts with one 30-minute walk.

The initiative is part of the American Heart Association’s National Start! Walking Day, a nation-wide effort to get more people of all physical ability levels on the path to wellness.

The American Heart Association chose walking as the main activity in their program because it’s the most accessible, affordable and successful of any type of exercise routine.

"With over 66 percent of Americans considered overweight and obese and nearly 70 percent of the population not engaging in regular light to moderate physical activity five times a week or vigorous activity three or more times per week, we realized there was a dire need to incorporate more walking into people's daily routines," said Timothy Gardner, M.D., American Heart Association president. "Just a few extra steps each day is a simple and easy way to take an active role in maintaining a significantly healthier life."

Research has proven that walking programs have the lowest dropout rate of any physical activity and are the most effective method to get employees to exercise during the workday without hurting productivity, according the the American College of Sports Medicine.

“It’s good business to have physically fit workers,” says David Josserand, executive vice president and chief strategic officer of The Dalton Agency in Jacksonville, Fla., and 2008-2009 national chairman for the American Heart Association.

“A recent four-year sutdy reported in the Journal of Occupational and Environmentla Medicine found that employers can save $1.65 in healthcare expenses for every dollar they invest in fitness programs. Reducing just one health risk in a workplace can increase productivity by 9%,” Josserand said in a Forbes magazine article (pdf).

In addition to healthcare savings, studies also suggest that implementing a workplace physical activity program can help companies reduce absenteeism and lower turnover rates.

Businesses can register for the Start! Fit-Friendly Companies Recognition Program, which recognizes employers who advocate the health of their employees and work to create a culture of physical activity in the workplace. Nearly 1,000 companies were designated Fit-Friendly since the program was launched in 2007.

Participants in the Start! Fit-Friendly Companies Recognition Program are given free access to program resources, including materials to promote employee wellness programs, internal newsletter templates and consultation on CPR/AED programs.

Encourage employees to wear their sneakers to work tomorrow and take a 30-minute walk outside. Even if you can't pull things together to get started tomorrow, set a date in the near future and put your company on the road to wellness.

You can find free, downloadable walking plans and a list of walking paths in various cities at startwalkingnow.org.

Related posts:

Obesity linked to more expensive workers’ comp claims

Economic stress impacts employee health, productivity

Employee wellness best practices: Offset the rise in health care costs

Rising health care costs motivate employee wellness programs

Better work-life balance improves employee productivity

Second only to compensation, work-life balance is now one of the most important attributes people look for in an employer, according to research by the Corporate Executive Board. In their survey of more than 50,000 global workers, the company also found that employees who feel they have a better work-life balance tend to work 21% harder than those who don’t.

In the BusinessWeek video below, Accenture CHRO Jill Smart explains how her company found a way to make work-life balance work for their organization. By listening to their workforce, from the bottom up, management has created successful programs that work for both employees and the company.

Can an employer fire an employee for being too buff?

During a recent conversation with a friend in the HR industry, an interesting story came up about a situation at a past employer. To keep it simple, we’ll call our friendly HR-pro “Jane.” (Note: Names, dates and company information have all been omitted to protect the innocent.)

Years ago, Jane was recruiting physicians for the medical clinic she worked at when she thought she came across the perfect doctor to fill an open position. The applicant filled all the necessary qualifications, was well-educated, well-spoken, energetic and self-motivated. Jane offered the job to the doctor the day after the interview. He accepted and was hired.

After about a week on the job, Jane unexpectedly found the doctor showing off to some of the medical assistants in the employee lounge. The doctor, dressed in scrub pants and an undershirt, was having the medical assistants count off how many one-handed push ups he could complete in one minute. After the push-up routine, he proudly took off his shirt and asked for volunteers to hang on his biceps as part of another strength test.

Jane fired Dr. Muscle a week later and some of the female assistants seemed to be rather upset. However, Jane thought the office was better off without someone revealing their muscles and working out when they should be focused on their job.

While Jane may think she did her office a favor by getting rid of Dr. Muscle, could she have potentially put her clinic in serious legal trouble for the firing? A list of questions ran through my brain:

Can an employer fire an employee for being too buff? Could that warrant a sexual discrimination claim? Behavior is one thing, but what about just looking too hot and that being a distraction to the other employees? Is there a discrimination lawsuit in there? Is it the same for a good looking man or a good looking woman?

According the G.Neil legal team, unless you are a government employer or operate under a contract, your company is most likely an at-will employer. At-will simply means the employment relationship may be terminated at any time for any reason by either the employer or the employee. The only “catch” is that the “any reason” really means any reason except for an illegal one. In other words, you can terminate an employee because of absenteeism, poor work performance or simply because he/she isn’t a good fit for your company. However, you cannot fire someone for being Asian, a female, too old, etc. Firing someone because of race, color, national origin, religion, age, gender, disability or other legally protected characteristic is prohibited by law and may result in a claim of wrongful discharge.

Although there is no law that prohibits discrimination based on personal appearance, appearance-based litigation arises under several discrimination laws. These days employees and former employees are bringing lawsuits, which are in essence appearance-based discrimination claims, alleging violations of the ADA, ADEA, Title VII, and state fair employment statutes. By tying an unprotected physical characteristic to race, sex, national origin, religion, or disability, plaintiffs are able to get their appearance-based complaints in front of a judge or jury.

Can a particular employee be asked/required to cover up more than other employees because of appearance (good or bad)? Possible situations … large breasts, ugly scars, big muscles, deformities, etc. Is there a level of distraction that could justify such a request as part of a legitimate business need on the part of the employer?

Employers generally have the right to establish dress code and appearance standards for appropriate business reasons. Common business reasons include sustaining a positive public image, promoting productivity, and complying with health and safety standards. Legal claims can arise when an employer enforces dress code or appearance standards that are not business-related or applied uniformly, or when the standards affect one group of individuals more than another, in violation of federal or state anti-discrimination laws.

In some cases, a company might be required to make an exception to its established dress code or appearance standards for legal reasons. For example, employers are required to reasonably accommodate an employee’s religious beliefs and employees generally should be permitted to wear head coverings, religious insignia and other tokens of faith. Religious accommodations are not required, however, if they present a safety risk, public health concern, or other undue hardship on the employer. For example, employees may be prohibited from wearing long hair or flowing garments near machinery, or they may be required to wear hats or ponytails in a food service establishment.

We know that firing an employee is never an easy thing to do, but knowing how to handle each stage of the process can make it go much smoother. The ComplyRight How to Fire Anyone: Your Guide to Fair and Legal Terminations will give you a clear explanation of the legal do’s and don’ts when it comes to firing employees.

Can an employer fire an employee for being too buff? Leave a comment and let us know what you think.

How losing can inspire motivation

As this year’s March Madness college basketball competition comes to a close and those lucky few employees collect their winnings from the office NCAA pool, some may be saddened to know they may have picked better brackets if they would have paid attention to a recent study.

A new study out of the Wharton School of the University of Pennsylvania examined 6,000 college basketball teams and found that teams that were slightly behind their opponent at half-time were more likely to win the game.

Wharton professors Jonah Berger and Devin Pope who conducted the survey, titled “When Losing Leads to Winning,” suggest that their findings directly tie into the workplace and how we set employee performance goals.

The researchers compare employees to basketball players in that they both will show more motivation and perform better when they are close to, but still short of, achieving a goal.

"Take any situation where someone is so close to a goal that they can almost taste it," said Berger in a recent Human Resources Executive Online article. "The fact that they're almost there makes them work harder."

Similar to the idea of setting “whisker” goals, Berger recommends that managers set milestones that are within reach of employees’ efforts. While “stretch” goals may be effective in motivating employees when confidence is high, setting smaller goals can spark an increase in performance when times are tough and confidence is waning.

"A lot of tools are used in the workforce to motivate people, such as wages, bonuses, etc. While surely these things can have motivating effects, one should not underestimate the potential importance of psychological motivation as well. This paper shows that the psychological impact of being behind by a small amount can cause significant increases in performance," said Pope.

Whether it’s on the basketball court or in the workplace, the Wharton study shows that small goals have the power to motivate. Pair those small goals with positive employee recognition for their shining accomplishments and help employees get moving on the road to success.

Reminder: New Form I-9 effective April 3

Next Friday, April 3, 2009, employers must start using the revised Form I-9 for Employment Eligibility Verification.

The new I-9 form was originally scheduled to take effect on February 2, but the U.S. Citizenship and Immigration Services (USCIS) delayed implementation for 60 days for further review.

Employers should continue using the current Form I-9 until April 3 and should prepare to use the new version beginning April 3.

Completing the I-9 form is mandatory for all new employees hired to work in the U.S. and the updates reflect numerous changes in the list of acceptable documents employers may use to verify an applicant’s work eligibility status.

The new Form I-9 reflects several changes, including:

Expired documents are no longer considered acceptable proof of identification or work authorization.
Three documents were removed from List A of the List of Acceptable Documents: Form I-688, Temporary Resident Card, Form I-688A, Employment Authorization Card, and Form I-688B, Employment Authorization Card.
Foreign passports with machine-readable visas for certain citizens of the Federated States of Micronesia (FSM) and the Republic of the Marshall Islands (RMI) were added to List A.
The new U.S. Passport card was added to the list of acceptable employment eligibility verification documents.

Employers who fail to use the revised Form I-9 by April 3, 2009, may be subject to violation fines. Neglecting to fill out an I-9 form for every employee, or filling out forms incorrectly , can result in up to $1,100 for every incorrect form.

Order the updated I-9 form with detailed tip sheets to ensure your company is in compliance with federal recordkeeping requirements. More tools and information on completing your I-9 forms correctly are available in the ComplyRight I-9 Recordkeeping Kit.

DOL issues model COBRA notices for employers

Late last week the Department of Labor (DOL) issued four model notices that employers can use to explain federal premium subsidies available under COBRA.

As part of the economic stimulus plan President Obama signed into law in February, employees who were involuntarily terminated between September 1, 2008, and December 31, 2009, are eligible to retain their group health coverage for a period of up to nine months by paying a portion of the COBRA premium.

Involuntarily terminated employees must pay 35 percent of the COBRA premium and employers must front the money for the remaining 65 percent. Employers will pay the insurer directly, then claim it as an offset against payroll tax liabilities. Payroll will then report any subsidies and take the offset on an updated Form 941.

"Our action today gives workers and their families useful information on their right to receive the COBRA subsidy and makes it easier for employers and plans to meet their notice obligations. Given the current economic situation facing dislocated workers and their families, it is very important that individuals do not lose their group health coverage," said Alan D. Lebowitz, deputy assistant secretary of labor for the department's Employee Benefits Security Administration (EBSA).

Employers can send the DOL’s model notices to COBRA beneficiaries advising them of the subsidy and how they can enroll for coverage.

Designed to fit different situations, the four COBRA model notices include:

A general or “full” notice to be given to beneficiaries who lost group coverage between September 1, 2008, and December 31, 2009.
An abbreviated general notice that would be for beneficiaries who are currently receiving unsubsidized COBRA.
An alternative notice explains the right of individuals working in states with continuation coverage laws, or “mini-COBRA” laws, which apply to employers with fewer than 20 employees.
A notice of extended election periods for eligible individuals who lost their jobs before the stimulus plan was signed into law, between September 1, 2008 and February 16, 2009, and declined or discontinued COBRA coverage at the time.

Each package includes information of the premium reduction provisions, a series of questions and answers, and which forms to use in requesting the premium reduction or COBRA coverage.

More information on the COBRA subsidy:

Obesity linked to more expensive workers’ comp claims

Data released earlier this month indicates that obesity is having an increasingly larger impact on workers’ compensation claims and workplace safety efforts.

Workers’ comp medical claims involving obese claimants open for one year can be up to three times as costly than those involving healthier employees, according to preliminary findings released by the National Council on Compensation Insurance (NCCI).

Claims that remain open for five years can be five times as expensive and the extra treatments related to obesity involved in some “smaller claims” can exceed almost 30 times the cost of treating a non-obese individual, according to NCCI.

Studies have shown that along with obesity, the heath care costs associated with employees who smoke and with conditions such as diabetes and high blood pressure can be significantly higher than healthy employees.

In addition to mounting health care costs, the cost of work-related injuries in the U.S. totals more than $50 billion a year. Though the costs are high, a growing number of business have been taking their chances with employee safety by cutting vital OSHA safety training out of the budget in the wake of the recession.

The combination of unhealthy employees and more businesses cutting safety training corners has the potential to add even more financial stress to organizations that are already feeling the pressure.

Employers can take a comprehensive approach to combating both rising health care costs and more expensive workers’ comp claims by promoting the importance of employee wellness and workplace safety.

Employer-sponsored wellness programs can help employees take that first step to improving their health. Find a gym to partner with that can give you a good deal on memberships for employees or bring health specialists in-house to train employees on the benefits of wellness.

As the economy continues to challenge businesses, more are searching for inexpensive safety training methods to save money and limit the number of workplace injuries that can lead to costly workers’ compensation claims.

G.Neil is meeting that challenge with new products that make employee safety training and OSHA compliance easier and affordable. With the right tools, it’s possible to keep workers safe and healthy without jeopardizing your budget.

Achieve more with small goals?

The recession has been creating adverse effects across the business world, from a severe drop in sales to stressed-out employees. Right now, everyone seems to be feeling the pain.

Research shows that financial stress has a direct impact on employee performance and morale, landing many businesses in a state of immobility. Whether it’s from shock or stress, it’s difficult to get moving.

Companies across the country are searching for a stimulus that will cure the paralysis that has been plaguing employees and motivate them to move forward. Instead of overwhelming yourself and looking at it as one giant task, some experts suggest that baby steps are the best way to go.

Setting smaller goals is the secret to improving employee performance during tough times, as Dan Heath and Chip Heath explain in their Fast Company article, Set Smaller Goals: Get Bigger Results.

Dan and Chip believe that during times when we feel empowered, stretch goals are a great way to spark motivation. However, when we're feeling overwhelmed, stretch goals can cause immobility.

They recommend setting "whisker" goals, with targets that fall just slightly lower than average.

From the Fast Company article:

We need these more modest steps because they help us get past the "startup costs" -- the apprehension and fear -- that deter us from doing the tasks we hate.

Adversity calls for change, and change doesn't arrive via a miracle: It arrives via a kick start.

For most organizations, now is not the time to make major changes. Many are focused on working through the adversity in order to land safely on the other side.

Whisker goals could be the solution to kick starting any team that is stuck in a rut. It takes small steps to get the ball rolling.

Start a movement in your organization with small goals and keep that movement going with small recognition. By focusing on the small stuff, you may find that the big problems just don't seem so big anymore.

Do you think it’s possible to achieve more at work with small goals? How does your organization work to get employees motivated during difficult times?

For more information on goal setting and employee recognition, take a look at a few of these posts and HR Library articles:

Test employee engagement with a new sensitivity survey

Employee engagement is a main factor in determining the long-term success of a business. Studies show that engaged employees perform as much as 20 to 28 percentage points higher than disengaged employees, making them one of your business’ best assets during tough times.

"When employees witness corporate downsizing and start to fear for their own jobs they often lose their motivation, which in turn affects their job performance, thereby causing them to become less productive and less of an asset to the company," said Greg Harris, president of Quantum Workplace, a market research company that surveys employee engagement, loyalty and retention.

So, what's the easiest way to find out if employees in your organization are engaged in their work? Ask them.

Start a conversation with employees to find out how they are handling the recession and how it may be affecting their work. To get a better sense of how engaged employees are across the entire company, you can take it one step further and ask them to complete a survey.

We recently came across a great format to follow when testing employee engagement levels in the 10-question Economic Sensitivity Survey developed by Quantum Workplace, a market research company that surveys employee engagement, loyalty and retention.

The survey measures employee engagement by an employee's "ability and willingness of individuals to exert effort for the benefit of the company, their tendency to speak highly of the organization and their intent to stay."

Quantum suggests you can determine how engaged your employees are by asking them to rate these 10 statements:

Management is providing good leadership and guidance during difficult economic conditions.
My job is mentally stimulating.
I understand how my work contributes to the company's performance.
There are future opportunities for growth at my company.
My company affords me the opportunity to develop my skills.
I receive recognition and reward for my contributions.
There is open and honest communication between employees and managers.
I see professional growth and career development opportunities for myself in this organization.
I know how I fit into the organization's future plans.
Considering the value I bring to the organization, I feel I am paid fairly.

Employee engagement should be at the top of your list of key business objectives, especially if your organization has experienced layoffs since the economic downturn began. An engaged workforce is a productive workforce, something every business needs during tough times.

"Now, more than ever, employers should be helping employees know how they're part of the future of the company. You need to quell any negative or fatalistic attitudes that might be present and educate the staff that this isn't something that's going to last forever, and that we need to be prepared for better times once the economy turns around," emphasizes Harris.

If you're looking for ways to let your staff know you appreciate their hard work, you can find a variety of new employee recognition ideas from G.Neil. Even playful gifts like a silly-looking stress ball can show an employee that you notice and are grateful for the extra effort they've been putting in recently.

Dangers of using social networking sites to screen applicants

For many businesses, looking up an applicant’s profile on social networking sites has become a part of their hiring routine. What many may not be aware of is that using sites like MySpace or Facebook to screen applicants may spell serious trouble if you’re not careful.

Studies suggest that almost 40% of employers have used Facebook and other social networking sites to gather information on job candidates. When they find negative information on these sites, more than 80% of employers consider that information when making hiring decisions.

While personal profiles on social networking sites contain some of the same facts that would be on a resume, they also include information related to gender, relationship status, sexual preference, home town, age, religion and if they have or plan to have children. The problem is that most of these topics should never be discussed during the hiring process.

For a business to make a hiring decision based on any of the personal information just mentioned, it could be considered discriminatory and may quickly create a legal mess for your company. If you have no legitimate job-related reason for asking about personal information during the hiring process, you should avoid the topics completely.

The only exception to using information you find on the Internet to deny an applicant a job is if there is a direct link between the information and a person’s job duties. If an applicant is modeling behavior outside of work that could interfere with their job responsibilities, it is legal to deny that person a position.

While many human resource professionals have been trained the dangers of “too much information” in the employee hiring and recruiting process, the Internet has made it as simple as clicking a button to fall into more information than you would ever want to know about an applicant.

When you’re using the Internet to research job candidates and even current employees, there are some very important legal issues to keep in mind:

Invasion of privacy. Some social networking sites state specifically in their terms of service that is is illegal to use users’ profile information for commercial purposes.
State protected privacy. California and New York have laws preventing employers from interfering in employees’ private lives outside of the workplace.
Discrimination. Even if you stumbled across an applicant’s personal information unintentionally, it is unlawful to deny employment based on protected categories such as age, race or gender.
False information. It’s probably not surprising, but users on social networking sites don’t always post information that is entirely true. It’s best to rely on information that the applicant directly gives you.
Fair Credit Reporting Act (FCRA). If you’re using an outside agency to conduct background checks on job candidates, you must comply with the FCRA and receive the applicant’s consent before starting the background screening process.

To avoid potential discrimination lawsuits, develop a uniform procedure for using social networking sites in the hiring process. Train everyone involved in the hiring process to treat every applicant consistently to avoid trouble and document each step you take.

With the rate at which new technology emerges, it’s almost impossible for the law to keep up the pace. When you use social networking sites to research applicants, you may be taking uncertain legal risks with every search you make.

Is your business using social networking sites to screen job candidates? Have you found the sites to be helpful or harmful throughout the process?

IRS releases info to help employers claim COBRA credit

The Internal Revenue Service (IRS) has released detailed information that will help employers claim credit for the COBRA medical premiums they pay for their former employees, a measure contained in President Obama’s economic stimulus package passed last month.

Employers will find a comprehensive set of questions and answers at IRS.gov, in addition to a revised version of the quarterly payroll tax return employers must use to claim credit for COBRA medical premiums paid for former employees.

Beginning with the first quarter of 2009, the Employer’s Quarterly Federal Tax Return, Form 941, is the form used to claim the new COBRA payments credit.

“This is the first step in our effort to provide employers with information on this important health benefit for people who have lost their jobs,” said IRS Commissioner Doug Shulman. “We will continue our work in the weeks ahead to help employers implement this crucial change for the nation’s unemployed.”

In February, President Obama signed the American Recovery and Reinvestment Act of 2009. The new law contains specific changes to COBRA health benefit requirements, changes that affect former employees, their employers and COBRA coverage providers.

Under the new law, eligible former employees, enrolled in their employer’s health plan at the time they lost their jobs, are required to pay only 35 percent of the cost of COBRA coverage. Employers must treat the 35 percent payment by eligible former employees as full payment, but the employers are entitled to a credit for the other 65 percent of the COBRA cost on their payroll tax return.

The IRS notes that employers must maintain supporting documentation for the COBRA credit claimed, including:

Documentation of receipt of the employee’s 35 percent share of the premium.
In the case of insured plans: A copy of invoice or other supporting statement from the insurance carrier and proof of timely payment of the full premium to the insurance carrier.
Declaration of the former employee’s involuntary termination.

Visit the Department of Labor for more information about COBRA payments and read another HR Forum post on the subject: Stimulus plan subsidizes COBRA, expands unemployment insurance.

EEOC accepting public comment on proposed GINA rules

The U.S. Equal Employment Opportunity Commission (EEOC) published a Notice of Proposed Rule Making on February 25, 2009, implementing employment requirements of the Genetic Information Non-Discrimination Act of 2008 (GINA). The EEOC is seeking public comment on the notice.

“The addition of genetic information discrimination to the EEOC’s mandate is historic, and represents the first legislative expansion of the EEOC’s jurisdiction since the Americans with Disabilities Act passed in 1990,” said Acting EEOC Chairman Stuart J. Ishimaru in a press release. “We welcome the opportunity to implement important provisions of this landmark legislation, and to expand the promise of equal opportunity in the workplace for everyone.”

The proposed rule provides additional guidance regarding some of the terms used in GINA. For example, the rule defines “employee” to cover not just current employees, but also applicants and former employees.

It also clarifies that drug and alcohol tests are not “genetic tests,” and invites comments on the scope of the term “genetic test,” specifically, “how the term should be applied, whether the proposed rule should be more or less expansive, and whether it or the preamble should provide examples of what should be included or excluded.”

The proposed rule also specifically mentions that the EEOC will update its EEO poster to include information regarding GINA. Final regulations must be completed by May 21, 2009.

“GINA is an important piece of legislation. As a deliberative body, we want to ensure that the intent of Congress is properly carried out through our regulations. Public comment on this NPRM is a critical part of that process. We look forward to a vigorous and thoughtful review,” said acting EEOC Vice Chair Christine M. Griffin.

The EEOC set up a 60-day public comment period on the proposed rule-making. Comments will be accepted through May 1, 2009.

You may submit comments by accessing the Federal eRulemaking Portal at http://www.regulations.gov. Comments will also be accepted by mail and fax. Read more instructions on submitting comments here.

For more information on the GINA regulations, read:

President signs Genetic Information Non-Discrimination Act

Genetic non-discrimination law includes increased FLSA child labor penalties

Take simple steps to start going green at the office

At home, many of us have taken steps to become more environmentally friendly, such as carrying reusable grocery bags and switching to more energy-efficient light bulbs. When it comes to carrying that same green ethic into the workplace, it’s easy to get overwhelmed at the thought of taking on such a large project.

However, going green at the office can be a simple process to start and involves many of the same simple steps you take at home. Borrow a few of these ideas and take the first steps to turning your workplace into an eco-friendly oasis:

Buy plants. Plants not only brighten up the office, but also improve the quality of the air in your building. There a wide variety of plants that can flourish indoors. Talk to your local nursery about plants that would work best in your office.

Only print when necessary. Paper is one of the most wasted items in the workplace. When you want to print something, ask yourself if it is absolutely necessary to have a hard copy.

Print with eco-friendly ink. Soy-based toners offer an environmentally friendly alternative to the petroleum-based options. Using soy-based ink also increases the recyclability of paper, so that when you have to print, you know you’re doing it in the ‘greenest’ way possible.

Purchase recycled office products. From printer paper to the labor law posters along the walls, do your research and find the best recycled products on the market.

Consider using electronic forms. The recent changes to the Form I-9 turned into a green disaster after hundreds of companies threw out out stacks of old forms, only to be told to start using them again. Electronic forms allow you to print out the documents you need, only when you need them. No more wasted stacks of unused forms the next time laws change.

Turn it off. Turning off the lights when you leave a room is a simple way to make a positive impact on your energy costs. Take it a step further by shutting down your computer and switching appliances off when you leave the office at the end of the day.

Buy reusable utensils. Instead of going through boxes and boxes of plastic utensils every month, ask employees to bring their own from home or invest in a set of inexpensive silverware for the office. Switching to the real thing will not only reduce waste, but will also save you money.

With more organizations and manufacturers jumping on the ‘green’ bandwagon, creating a more environmentally friendly workplace is easier than ever before. With a little bit of creativity, going green in the office can be easy and fun.

Have any more ideas for going green at work? Leave a comment and let us know.

Read these related posts for more ideas:

HR survey reveals top green business practices

Commuter benefits a growing business trend

Want happy employees? Promote public transportation

Recycle your way to a ‘green’ workplace

Going green at the office? Start with your printers

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