HR Forum

Are you dishing the right details about dependent eligibility?

With all the confusion surrounding the dependent coverage rules under the health care reform bill, we’d like to take a moment to provide some clarity.

First things first: The definition of an eligible dependent is a biological or legally adopted child up to age 26, even if married.

Just as important, you must comply with the new eligibility rules if your plan year begins on or just after September 23.

Some of the eligibility rules to keep in mind:

=> Dependents don’t need to be enrolled in school or be financially dependent on their parents
=> The spouses or children of adult dependents aren’t eligible for coverage
=> You must invite all dependents back during your company’s enrollment period – including those previously dropped or whose parents opted out of your plan

As you might imagine, a change like this requires some targeted communication on your part. This means reviewing and updating all your company’s printed and electronic information (such as enrollment materials and benefits-related websites) to include the new dependent definition and eligibility guidelines.

When "fun in the sun" dampens work productivity

While the beach, backyard or neighborhood barbeque may beckon during the sunny days of summer, the fact remains that you’re running a business and the work must get done. Don’t wait until you have an attendance problem on your hands before taking a stand.

Your employee attendance policy should be in writing, included in your employee handbook and communicated to all employees so it can be enforced. Clarify when chronic lateness and absenteeism are cause for discipline, and outline how many absences or instances of lateness are acceptable.

Your company's attendance guidelines also must comply with the FLSA, which governs minimum wage requirements, overtime, timekeeping practices, child labor laws and other pay-related issues.

Finally, be certain to enforce the policy consistently. You may be courting a discrimination lawsuit if you only discipline some employees for poor attendance, while ignoring the time-management habits of others.

Curbing harassment when clothing choices - and employee behavior - relax

Preventing sexual harassment is a priority in any workplace, at any time, but it takes a new spin during the “easy, breezy” days of summer. When the temperatures are rising, there's more to keeping your cool than running the air conditioner and sipping on iced drinks.

This is a good time to review your company’s dress code policy and specify what’s acceptable. Don’t assume that employees will use their better judgment when it comes to certain clothes (and how much skin they expose). Unless you clearly specify whether or not an item can be worn in the workplace, it’s likely to make an appearance. Are shorts, capris, tank tops, strappy summer dresses, sandals, flip-flops, hats and other warm-weather staples acceptable? And what if an employee shows up to work wearing something inappropriate? Will you send them home immediately, or issue a warning?

Keep in mind, too, that teens may be particularly vulnerable to harassment. Because they are younger and less experienced, they may be reluctant to stand up to harassing behavior. Or they may feel they don’t have the authorization to complain about a colleague, especially one in a more senior position. Further still, uninformed teens may be guilty of harassing another coworker, perhaps without even realizing the boundaries.

Working teens need to know what constitutes harassment, as well as what resources are available to them if they are victimized. Harassment training shouldn’t take a summer vacation: It is essential for reducing incidents of improper behavior among your year-round and seasonal employees.

Here comes the sun - and the heat stroke (if you're not careful)

With a summer heat wave gripping most of the country right now, keeping cool seems to be everyone’s #1 priority. Obviously, employees who work outdoors or in confined spaces with limited cooling or air conditioning are at the greatest risk for heat-related illnesses.

OSHA requires employers to provide a safe and healthy work environment for all employees. When the sun is blaring and the temperatures are nearing the triple digits, protect your workers from heat stroke and other extreme temperature hazards by following these precautions:

• Provide shelter from the sun and allow employees to take regular cool-down breaks

• Make sure water is readily available and allow employees to drink throughout the day

• Know the symptoms of heat-related illnesses, including:

=> High body temperature
=> Lack of sweating, although skin may be hot red or flushed and dry skin
=> Rapid pulse
=> Difficulty breathing
=> Irrational or strange behavior, including hallucinations, disorientation. agitation or confusion
=> Seizure

• Keep first aid supplies on-hand at all job sites. For heat related illnesses, this would include ample water or sports drinks, a shower or hose for emergency cool-downs, a shaded or air-conditioned area for recovery, and a working telephone to summon 911.

• Educate employees on the dangers of soaring temperatures with G.Neil’s Extreme Heat Exposure Kit, which includes a poster, tip sheet and 20 takeaway notifications

Misclassifying employees can be a seriously costly mistake

Incorrectly classifying employees as actual employees or independent contractors is a legal risk that can cost your business millions. The federal government is cracking down on the issue, and many states are pushing to make worker misclassification a crime.

Two businesses learned this lesson the hard way. SOH Distribution Co., Inc. and G & A Snack Distributing, Inc. – subsidiaries of Snyder’s of Hanover, Inc. – misclassified nearly 1,500 delivery drivers as independent contractors rather than full-time employees. The employees took action, resulting in a $10 million court settlement to be distributed among the drivers.

Get expert guidance on properly classifying employees with ComplyWare™ FLSA software, which includes a convenient Classification Wizard and the latest FLSA regulations.

Medical marijuana: Deal or no deal in a drug-free workplace?

Boardrooms and courtrooms are getting fired up about whether doctor-prescribed marijuana has a place in corporate America. So far, the answer is “no.”

In cases where employees have challenged the boundaries surrounding the use of medical marijuana, the courts have sided with the employers. Although medical marijuana is legal as a prescription painkiller in 14 states, it is illegal under federal law. Plus, there’s the bigger issue of employees coming to work impaired and posing a safety risk.

This position is getting a rise out of medical marijuana advocacy groups, however. They view an employee’s marijuana-based treatment as a private medical matter, and any adverse action against the employee as discrimination.

Several lawsuits are still pending, so the issue is far from being settled. In the meantime, employers operating in states where medical marijuana is legal would be wise to monitor future court rulings and, if necessary, tailor their drug policies accordingly.

Get the facts on legal drug testing, and reinforce your company’s drug-free position with eye-catching posters and drug-screening tests.

New FMLA ruling permits child-care leave for same-sex domestic partners

On Tuesday, June 22, the Department of Labor (DOL) issued a new interpretation of the Family and Medical Leave Act (FMLA) clarifying that employees are entitled to FMLA leave to care for the child of a same-sex partner (for the child's serious health condition, or to bond with a newborn or newly adopted child). The announcement is not a revision to the FMLA, but a new interpretation of the existing law which has always recognized rights of employees acting "in loco parentis" to a child. In short, an employee may now claim "in loco parentis" status if he/she "intends to assume the responsibilities of a parent with regard to a child" and provides "either day-to-day care or financial support for the child."

For the first time, the DOL has stated that this includes children of a same-sex partner even where there is no biological or legal relationship.

Because of this ruling, as many as 100,000 children in 50,000 families will now have access to a second parent’s time for dedicated care. (GLTNewsNow.com) As the online article states: “The ruling provides important support for legally vulnerable families at particularly stressful times for families.”

There is no word yet if this new interpretation will impact the mandatory FMLA labor law poster or related HR forms, but we will continue to monitor the situation closely. At this point, it looks like the poster or forms will not be updated because "in loco parentis" has always been included - it's just the underlying definition of that term that has changed. In the meantime, however, you can count on G.Neil to provide expert guidance on the new interpretation, and what it means for your workforce.

Supreme Court: Search of work-issued pager acceptable

In a mid-December 2009 blog post, I talked about a case involving an employee in an Ontario, CA, police department who sent sexually explicit text messages on a work pager. After first warning the employee about the number of texts being sent each month, the employer dug a little deeper and reviewed the actual content of the texts. This set off a heated privacy debate that elevated to the Supreme Court.

Our nation’s highest court recently heard arguments and delivered a unanimous ruling: The police department did not violate the constitutional privacy rights of the employee when it audited his text messages on a city-issued pager.

While Justice Anthony M. Kennedy shared that the court was uneasy fashioning comprehensive legal rules, based on the pace of technological and cultural change, he offered practical insight:

“Cellphone and text message communications are so pervasive that some persons may consider them to be essential means or necessary instruments for self-expression, even self-identification. On the other hand, the ubiquity of those devices has made them generally affordable, so one could counter that employees who need cellphones or similar devices for personal matters can purchase and pay for their own.” New York Times

Although the Supreme Court’s decision did not address the privacy rights of people employed by private companies, I think it’s safe to say employers have firm legal footing for issuing a policy prohibiting personal use of company equipment – and for prying if they have a legitimate, work-related purpose for doing so.

Reminder: June 21 is NLRA posting deadline for federal contractors

On May 20, 2010, the U.S. Department of Labor (DOL) issued a final rule regarding how non-exempt federal contractors and subcontractors will notify employees of their rights under the National Labor Relations Act (NLRA). The new posting requirement is in response to President Obama’s Executive Order 13496, Notification of Employee Rights Under Federal Labor Laws, issued in January 2009.

Obama’s Executive Order revokes former President Bush’s Executive Order 13201, Notification of Employee Rights Concerning Payment of Union Dues or Fees, that required federal contractors and subcontractors to post notices (commonly known as “Beck” notices) informing employees of their rights to refrain from joining a union.

While some of the language the DOL proposed in August 2009 has changed, the new, broader notice remains focused on pro-union rights for employees. The posting also provides contact information for the National Labor Relations Board (NLRB), the agency responsible for enforcing the NLRA.

Time to get into compliance!

Federal contractors with prime contracts over $100,000 and subcontracts over $10,000 must properly display the NLRA poster by the June 21, 2010, deadline. This means displaying the poster conspicuously in plants and offices where employees covered by the NLRA perform contract-related activity. Ensure mandatory posting compliance with G.Neil’s NLRA Poster.

One size doesn't fit all: Paid leave benefits vary by industry, occupation and wages

A report by the U.S. Bureau of Labor Statistics (BLS) revealed some interesting findings about paid sick leave benefits, including:

• Access to paid sick leave for private industry employees varied by occupation, ranging from 42% for service workers to 84% for management, professional and related occupations

• 81% of employees earning wages in the highest 25% wage distribution bracket had access to paid sick leave, compared to 33% for employees in the lowest 25% backet

• In private industry, employee received an average of eight days of paid sick leave after one year of service (with small establishments offering an average of six days and large establishments, 11 days)

• The cost of sick leave per employee hour worked in state and local government was $0.81, compared to $0.23 an hour in private industry

• Higher-paying occupations typically incur higher sick leave costs, averaging $0.53 per employee hour worked in management, professional and related occupations, compared to $0.08 for service occupations

As an employer, you are not required by law to provide paid leave benefits for your employees. But to attract and hold on to workers, most employers offer some sort of paid sick leave in their benefit package.

How do your paid sick leave benefits compare to national averages? Are you doing enough with this particular employee perk? To learn more, check out the entire Program Perspectives: On Paid Sick Leave.

House-approved National Defense Authorization Act could lead to FMLA posting change

On May 28, 2010, the House approved the National Defense Authorization Act (NDAA) for Fiscal Year 2011 (H.R. 5136.) The bill authorizes a $726 billion military budget that will, according to House Armed Services Committee Chairman Ike Skelton, “strengthen our national security, provide our men and women in uniform with the tools they need to do their jobs, and take care of our service members and their families.”

Included in the bill is an amendment (H.AMDT.656) that would allow the spouse, children and parents of a deployed member of the Armed Forces to take at least two weeks of unpaid leave from their job, even if they’re not covered under the Family and Medical Leave Act (FMLA).

Check back here for future updates on the NDAA and specifically, any posting changes resulting from this amendment. Poster Guard® Compliance Protection guarantees posting compliance with automatic replacements every time a mandatory law changes.

What's up with downsizing?

The recession-battered economy has experts wondering what’s next for the job market. Are companies stabilizing – and can employees rest easier that their jobs will still be there tomorrow? Well, that depends on who you talk to.

According to a recent online poll by Right Management, half of the 426 senior HR executives who responded expect their organizations to restructure in the next six months. One in five executives anticipates a change in leadership.

Other changes the HR professionals foresee in the near future include:

Acquisition or merger – 13%
New product launch – 10%
New technology – 6%

While not all of these changes mean job cuts for employees who live in fear of the dreaded “pink slip,” they certainly don’t point to smooth sailing in the coming months, either.

“Although the economy shows certain signs of improvement, it seems likely that more corporate upheaval is ahead,” says Michael Haid, senior vice president of global solutions at Right Management. “The current atmosphere remains unsteady and anxiety is still widespread.”

At the same time, however, employees are much more tuned into what’s happening around them. Their radar is up, and they’re not naïve about how quickly things can change in corporate America.

“Employees are surely listening carefully to what their top management is saying, how the company is performing and the kind of announcements being made,” says Haid.

New posting requirement now in effect for federal contractors and subcontractors

On May 20, 2010, the U.S. Department of Labor (DOL) issued its final rule regarding how federal contractors and subcontractors will notify employees of their rights under federal labor laws. This was in response to President Obama’s Executive Order 13496 in early 2009, requiring federal contractors to post a notice “in all places where notices to employees are customarily posted both physically and electronically,” informing them of their rights under the National Labor Relations Act (NLRA).

The new notice replaces the “Beck notice” posting requirement under the Bush administration. While some of the language the DOL proposed in August 2009 has changed, the notice remains focused on pro-union rights for employees, including:

=> The right to organize a union to negotiate wages, hours and other working conditions
=> The right to discuss union terms and conditions with coworkers
=> The right to take action with coworkers to improve working conditions, such as raising work-related complaints with you, the employer, or a government agency

Ensure mandatory posting compliance by the June 21, 2010, deadline with the NLRA Poster.

Automatic health care enrollment kicks in for large employers

Under the Patient Protection and Affordable Care Act, employers with more than 200 full-time employees must automatically enroll new employees in one of their health benefit plans and continue the enrollment of current employees.

Keep in mind, however, that the automatic enrollment provision needs to include ample notice – and a chance for an employee to opt out of the coverage and choose another option (or opt out altogether). Automatic enrollment may be subject to a legal waiting period, too.

Like with auto-enrollment in 401(k)-type plans, this change is expected to increase participation in employer-sponsored health care plans and ensure coverage for more Americans.

Check back here for future updates on this and other health care reform requirements.

With summer comes warmer weather ... and more workplace risks

While most of us look forward to the longer, warmer days of summer, this time of year can pose unique challenges for many businesses – especially in the hospitality and entertainment industries. From dress code issues to properly managing a seasonal workforce, you need to be certain you’re towing the legal line during the summer months. This includes:

1. Planning around vacation requests so you’re sufficiently staffed. See Vacation Request & Approval Form (Calendar Format)
2. Preventing sexual harassment when clothing choices — and employee behavior — relax. See Harassment Training Program, “Harassment-Free Workplace: Take Control” and Gradience Handbook Manager software
3. Upholding legal dos and don’ts when hiring temporary summer employees. See The HR Answer Book
4. Understanding child labor issues surrounding teen employees. See SolveIt Now™ Answers to All Your Questions: OSHA Compliance
5. Making the necessary staffing adjustments when employees call out “sick”. See Yearly Vacation Planner
6. Keeping employees safe when the temperatures soar. See Extreme Heat Exposure Kit (Poster & Notifications)

Through thick and thin, it's the people who matter most

We talk a lot about employee morale on this blog. We stand behind the notion that happy, engaged employees are more positive, more productive and your most important resource. So when Robert Half Management Resources posed the question, “Which one of the following is the greatest lesson you have learned from the recession?”, we were pleased that the #1 response was, “Place greater focus on maintaining employee morale.” Ding, ding, ding – employee morale gets top billing!

Participating in the survey were 1,400 chief financial officers from a random sample of U.S. companies with 20 or more employees. The other top responses from the CFOs:

• Take decisive measures more quickly to avoid multiple rounds of cost-cutting — 22%
• Make sure we have enough staff to maintain productivity — 22%
• Implement more detailed succession plans — 15%

But back to employee morale. How encouraging that people in high places recognize the importance of employee morale – no matter how rough the waters. And let’s hope they’re not "all talk and no action" when it comes to this belief. We’ve said it before and we’ll say it again: Once the recession lifts, employees will remember how they were treated. Will your best employees stick around as the economy improves, or will they dust off their resumes and hit the job boards?

Happy employees are good business. “Without a motivated workforce and adequate staffing levels, companies can be ill-equipped to take advantage of improving market trends,” said Paul McDonald, executive director of Robert Half Management Resources. “They may also risk losing top employees as the job market strengthens.”

What about your business? Did you make employee morale a priority during the tough times of the recent recession? Are you confident that you treated your employees right … and will be rewarded with their continued loyalty?

Survey reveals heavy financial burden of class action lawsuits

Based on the sixth annual Workplace Class Action Litigation Report by Seyfarth Shaw LLP – a leading law firm handling complex employment litigation – employers should be aware of several key trends that occurred in federal and state courts last year:

• Class action filings seeking recovery for unpaid wages and 401(k) losses increased. More age discrimination and Worker Adjustment and Retraining Notification (WARN) lawsuits were filed, too, due to workers being displaced in layoffs.

• Wage and hour litigation outpaced all other types of employment-related cases, especially in CA, FL, IL, NJ, NY, MA, MN, PA and WA.

• The Obama Administration’s renewed focus on regulation and enforcement, mostly through the DOL and EEOC, continues to increase exposure for employers.

• Massive settlements were seen in several nationwide class actions, as plaintiffs’ lawyers pushed for greater damages. The top 10 employment discrimination settlements in 2009 totaled $86.2 million, while the top 10 wage and hour settlements reached $363.6 million.

Just one major, costly lawsuit could be devastating to your business. Stay on the right side of the law and reduce your risk with legally compliant products and services – from Poster Guard® Compliance Protection to the latest FMLA, FLSA, OSHA and HIPAA compliance materials.

OSHA cracking down on careless employers who endanger workers

In an effort to reduce the number of workers seriously injured or killed while on the job, the Occupational Safety and Health Administration (OSHA) recently developed the Severe Violator Enforcement Program (SVEP). The program will take aim at employers who “have demonstrated indifference to the OSHA obligations by willful, repeated, or failure-to-abate violations.” How they’ll do this is through increased and more aggressive worksite inspections, follow-up inspections and greater penalties for safety violations.

Employers of all sizes will fall under the scrutiny of the SVEP, with the following incidents drawing particular attention:

1) Fatality and/or catastrophe situations resulting in three or more hospitalizations or the death of an employee
2) Non-fatality and/or catastrophe situations where you’ve exposed an employee to one of the most severe workplace hazards, including “high-gravity serious violations,” such as fall hazards, combustible dust hazards and lead hazards
3) Hazards due to the potential release of a highly hazardous chemical
4) Any violation considered “egregious” (conspicuously bad or offensive) under current OSHA obligations

The consequences for an employer on the SVEP list are equally severe. First, if just one of your facilities has come under fire, OSHA may order a nationwide inspection of all your facilities. There will be mandatory follow-up investigations at every facility, and OSHA will publicize your citations and violations.

Then there’s the financial hit. Over the next couple of months, the maximum penalty for a violation causing death or serious physical harm will increase from $7,000 to $12,000 – and the maximum penalty for a willful violation will increase from $70,000 to $250,000. (Penalties have increased only once in 40 years, despite inflation.)

June is National Safety Month. Are you doing everything possible to create a safer, OSHA-compliant workplace? Meet OSHA safety standards and prevent injuries year-round with G.Neil’s training and compliance solutions.

Don't let your employees leave without learning why!

What goes around comes around. According to MRINetwork, one of the largest recruitment organizations in the world, employers should expect as much as a 50% increase in employee turnover as the economy picks up again. So while it's good that you'll be able to lift your hiring freezes in the coming months, it's not so great if you find yourself saying goodbye to quality employees walking out the door in search of greener pastures.

When it comes to employee turnover, parting can be such sweet sorrow ... AND a unique learning experience. That is, if you take the time to conduct an exit interview and find out why an employee is packing her briefcase and hitting the road.

“Most companies routinely conduct exit interviews,” said Tony McKinnon, president of MRINetwork, “but unfortunately few of them use the information they garner for the company’s benefit. And yet, a poorly delivered exit interview can affect the morale of the existing employee population and undermine the company culture.” WorldatWork.org

McKinnon adds that the primary aim of the exit interview is twofold: 1) To learn the reasons for the person's departure, on the basis that criticism is a helpful driver for organizational improvement; and 2) to allow the organization to transfer knowledge and experience from the departing employee to a successor or replacement.

In other words, ask probing questions to find out the good, the bad and the ugly from the departing employee (and be prepared to listen when the news is less than flattering) and then, use that information to improve upon the position (and the corporate culture) for the person filling the departing employee’s shoes.

For additional direction, check out the article, Exit Interviews Reveal What Went Wrong in the G.Neil HR Library. From the article:

It’s important to gather profiling data on employees such as age group, length of time employed, department, division, and job classification or title. This information helps you identify the typical high-risk turnover candidate.

Understandably, most employees won’t want to level with you about their reasons for leaving. Some are merely ill at ease; others may fear reprisals from ex-supervisors. Nevertheless, you’ve got to encourage them to supply enough details to let you pinpoint the main reasons why most people are quitting. It’s the only way to get to the root of the problem. Your discussion should focus on these topics:

• Salary
• Benefits
• Opportunity for advancement
• Training
• Relationship with supervisor
• Relationships with coworkers
• Reasons for leaving that aren’t related to the job or company

Help put the brakes on distracted driving

Last Friday (April 30) was the nation’s first “No Phone Zone Day,” developed by Oprah Winfrey and Harpo Studios to build awareness around the deadly habit of distracted driving.

Did you know that distracted driving – or talking on your cell phone or texting while driving - takes the lives of nearly 6,000 Americans a year? With the support of the U.S. Department of Transportation (DOT), the National Highway Traffic Safety Administration (NHTSA), the Governors Highway Safety Association (GHSA) and other leading transportation safety organizations, individuals and companies are taking a stand against cell phone-related auto accidents.

“I’ve made it my mission at the DOT to end distracted driving,” says U.S. Secretary of Transportation Ray LaHood. “We know that if we can get people to put away cell phones and other electronic devices when they are behind the wheel, we can save thousands of lives …”

Bottom line: Your company could be held liable for an employee causing an accident while using a cell phone in a company vehicle, or while conducting company business in a personal vehicle. Raise awareness and communicate your policy with our Texting While Driving Poster and Policy Kit. Or download and print a Text Messaging and Cell Phone Use Policy now for immediate use.

To learn more about the dangers of distracted driving and what you can do - personally and professionally - to curb it, check out the No Phone Zone website.

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