Hi, it's Bev again. How many of you have looked at your handbook in the last six months to make sure it is current and says what you want it to say? The Employee Handbook – every word counts. Now is a good time to review it in light of recent legislative and regulatory changes.
Three C’s Handbooks should have:
- Not be a Contract
- Communicate your policies to your workforce
- Comply with federal, state and local laws
We advise you to make sure your handbook does not create binding contractual obligations. State laws control whether an employee handbook can be viewed as a contract.
A handbook may create an implied contract of employment if it sets forth progressive discipline plans or corrective action procedures or distinguishes between “probationary” and “permanent” employees and provides for the discharge of “permanent” employees only after specific preconditions are met. If your handbook uses that type of wording I suggest you change it.
The best way to get around having a court call your handbook a contract is to use a disclaimer. The disclaimer should be prominently displayed in the handbook and should advise the employees that the policies and procedures are not intended to create a contract. HR should make sure to obtain a signed receipt on distribution of the handbook.
However, a disclaimer does not solve every problem. It is not a “get out of jail free” card. Even with a disclaimer, it is important for an employer to be uniform in its application of the handbook policies.
As to the second “C”-Communication- the handbook should plainly state the employer’s rules, regulations and procedures. It is critical with your handbook to say what you do and do what you say. If you don’t follow the policies and procedures it will come back to bite you. You will want to include rules regarding such diverse topics as access to personnel records, anti-nepotism rules, travel policies, attendance policies, performance evaluations, payment of wages including overtime, searches on employer property and in-house investigations.
You should make sure to describe your policies designed to assist employees. “You want to brag,” this includes your policies regarding all leaves of absence, employees assistance programs, holidays and flextime. Make sure to communicate your commitment to equal opportunity and harassment With your harassment policy, not only do you need to make a firm statement that harassment will not be tolerated but you need to spell out the steps to take if it occurs. Having this type of policy is not only the right thing to do, but it will save you money.
Set guidelines for the termination of employment, and make sure to develop “cutting edge” policies to take into account such issues as the use of social networking sites, blogging, telephone call monitoring and telecommuting.
And the third “C”-Compliance-means you must make sure that, in addition to addressing federal employment laws, you incorporate state and local legal requirements into your handbooks. Such things as workplace smoking policies, voting policies, jury duty policies, protected off-duty legal activity and breastfeeding accommodations are regulated by state laws.
Your handbook doesn’t have to be fancy, but it does need to be accurate and kept up-to-date. If you need help developing your policies or your handbook, give us a call. We have lots of experience, and can get you headed in the right direction.
Please visit our website at http://www.yourownhrpro.com/
Thursday, July 9, 2009
The 3 C's of Employe Handbooks
Wednesday, July 1, 2009
Drug/Alcohol Testing in Iowa: an employer's primer
Drug and alcohol abuse costs U.S. businesses billions each year in lost productivity, property loss, absenteeism and medical costs and accounts for nearly half of workers comp costs. It is no wonder then that companies have aggressively looked for ways to combat drug and alcohol abuse. Since the 1980s drug and alcohol testing programs have become widely implemented, reaching their peak in the early 1990s, but have been declining in popularity since 1996, largely due to questions about the cost/benefit of drug and alcohol testing. So is a drug and alcohol testing program right for your company?
If you have employees that fall under safety sensitive transportation classifications of Omnibus Transportation Employee Testing Act of 1991, which includes aviation, trucking, railroads, mass transit, pipelines and other transportation industries, drug and alcohol testing is required. These are most commonly referred to as DOT drug and alcohol testing requirements, and will not be directly addressed in this article.
Iowa Code Section 730.5 provides for the following types of drug testing in the private sector.
Post-offer, pre-employment: Employers may require prospective employees to undergo testing at the employer’s expense after a bona fide job offer has been made, but prior to the start of work. Continued employment may be made contingent on negative results of the test.
Unannounced testing of workers randomly selected from pools of defined populations of employees.
Post-accident testing: Testing following accidents that are serious enough to require OSHA reporting.
Reasonable suspicion: This may include observation of substance abuse or impairment at work, abnormal behavior or performance at work, credible report of drug or alcohol use at work, evidence of tampering with a drug test, evidence that the employee has caused an OSHA reportable accident, evidence that the employee has made, sold, possessed, or used drugs while at work.
Testing during or after drug or alcohol treatment programs.
Testing as required by federal laws or regulations (ie. under DOT requirements).
So, that is what you can legally do in Iowa. Let’s take a look at some of the pros and cons of drug and alcohol testing.
The Pros
As already noted, drug and alcohol abuse can create huge liability and costs for employers. The rationale of drug and alcohol testing programs is that they will help companies select employees less likely to abuse drugs and alcohol and serves as a deterrent against abuse for existing employees.
There is no consensus on how effective these programs actually are in achieving this though. Yes, they will weed out substance abusing job candidates, and yes, occasionally an employee will test positive on a random, post-accident, or reasonable suspicion test, and the fact that the policies are in place most certainly has some level of deterrent effect.
But study results vary. For instance the annual Drug Testing Index published by Quest Diagnostics shows that positive drug testing results fell from 13.6 percent in 1988 to 3.8 in 2006, which they attributed to widespread testing programs by employers. On the other hand, researchers at Le Moyne University in a study of high tech industries found that companies with drug testing programs actually had lower productivity than those who did not.
Having such a program in place does send a strong message to employees, customers, and the community that the company is committed to providing a work environment that is free from substance abuse. If communicated well, such a program can actually be a morale booster to employees as a whole who understand the dangers of substance abuse in the workplace and appreciate that their employer is taking action against it.
To the extent that having a drug and alcohol testing program can contribute to lower drug and alcohol abuse in the workplace, the company can enjoy lower costs and higher profits as a result of lower employee turnover, fewer accidents, lower workers comp costs, higher employee morale and greater productivity.
The Cons
The program can be costly. The individual tests run less than $50 each, but by the time you include the costs of administering the entire program, over time it can be very costly. In fact a congressional committee estimated the cost of each positive test in government to be $77,000, because the positive test rate was 0.5%. One of the reasons suggested for the downward trend in drug and alcohol testing in recent years has been the cost/benefit of such programs.
People wishing to beat drug tests will go to great lengths to do so. There is a whole multi-million dollar industry built around beating drug tests, products ranging from the Whizzinator to fake urine to various additives all touted as a sure way to pass drug tests and available a click away on the internet. So there is a constant race to keep technology a step ahead of those who wish to beat it.
One other factor to keep in mind before launching a drug and alcohol testing program is how it will impact the culture of the organization. If not communicated well, the program can cause discontent among employees. Some employees view drug and alcohol testing to be invasive.
The programs can also be administratively complex to administer, given the myriad of laws and administrative rules that must be followed. Under Iowa Code Section 730.5 employers are required to have the following in place in order to maintain a drug and alcohol testing program.
1. Have a policy in place that complies with Iowa Code Section 730.5, and you have distributed and communicated it to all covered employees.
2. Have an employee assistance program in place or you have a resource file where employees can access help for substance abuse problems.
3. Provide training as outlined in the Code to supervisors (2 hours the first year, 1 hour subsequent years).
Additionally, employers who do drug testing must work with qualified collection sites, laboratories and medical review officers, or if they choose to do the testing on-site, must have facilities and staff that meet the strict qualification standards.
Finally, drug and alcohol testing programs cannot assure that drug and alcohol abuse is eliminated from the workplace. To be fully effective it must rely on the training and best judgment of the supervisors and employees of the company.
There are a number of situations where drug and alcohol testing might be the preferred option, for instance, if your company is required by law to test certain populations of employees, you may want to test all employees to maintain consistency, or if you have a high risk working environment such as heavy machinery. It is never a good idea to introduce drug and alcohol testing as a way to weed out a problem employee.
Alternatives to Testing
The best place to begin is to have a zero-tolerance policy on drug and alcohol abuse in the workplace. Distribute the policy to all employees and train employees and supervisors on the dangers of drug and alcohol abuse, how to spot it, and what to do if they spot it in the workplace. Training your supervisors on substance abuse identification and response can be a very effective alternative to testing. If your company has an employee assistance program, the EAP professionals can be a great resource to you and your supervisors in addressing potential substance abuse cases.
Recently there has been some interest in using computer-based performance tests where employees set their own baselines, then must achieve a passing score before clocking in to work. While performance tests like this do show promise they haven’t met with wide acceptance.
Is Drug and Alcohol Testing Right For Our Company?
In the state of Iowa drug and alcohol testing is very defined. Employers considering whether it is right in their organizations need to first become familiar with Iowa Code 730.5, which covers the parameters of testing and the responsibilities of employers. Then employers need to consider how drug and alcohol testing will fit with their organizational cultures and with their business objectives to determine if that is the best alternative to achieve a drug and alcohol abuse-free workplace.
Please visit our website at http://www.yourownhrpro.com
If you have employees that fall under safety sensitive transportation classifications of Omnibus Transportation Employee Testing Act of 1991, which includes aviation, trucking, railroads, mass transit, pipelines and other transportation industries, drug and alcohol testing is required. These are most commonly referred to as DOT drug and alcohol testing requirements, and will not be directly addressed in this article.
Iowa Code Section 730.5 provides for the following types of drug testing in the private sector.
Post-offer, pre-employment: Employers may require prospective employees to undergo testing at the employer’s expense after a bona fide job offer has been made, but prior to the start of work. Continued employment may be made contingent on negative results of the test.
Unannounced testing of workers randomly selected from pools of defined populations of employees.
Post-accident testing: Testing following accidents that are serious enough to require OSHA reporting.
Reasonable suspicion: This may include observation of substance abuse or impairment at work, abnormal behavior or performance at work, credible report of drug or alcohol use at work, evidence of tampering with a drug test, evidence that the employee has caused an OSHA reportable accident, evidence that the employee has made, sold, possessed, or used drugs while at work.
Testing during or after drug or alcohol treatment programs.
Testing as required by federal laws or regulations (ie. under DOT requirements).
So, that is what you can legally do in Iowa. Let’s take a look at some of the pros and cons of drug and alcohol testing.
The Pros
As already noted, drug and alcohol abuse can create huge liability and costs for employers. The rationale of drug and alcohol testing programs is that they will help companies select employees less likely to abuse drugs and alcohol and serves as a deterrent against abuse for existing employees.
There is no consensus on how effective these programs actually are in achieving this though. Yes, they will weed out substance abusing job candidates, and yes, occasionally an employee will test positive on a random, post-accident, or reasonable suspicion test, and the fact that the policies are in place most certainly has some level of deterrent effect.
But study results vary. For instance the annual Drug Testing Index published by Quest Diagnostics shows that positive drug testing results fell from 13.6 percent in 1988 to 3.8 in 2006, which they attributed to widespread testing programs by employers. On the other hand, researchers at Le Moyne University in a study of high tech industries found that companies with drug testing programs actually had lower productivity than those who did not.
Having such a program in place does send a strong message to employees, customers, and the community that the company is committed to providing a work environment that is free from substance abuse. If communicated well, such a program can actually be a morale booster to employees as a whole who understand the dangers of substance abuse in the workplace and appreciate that their employer is taking action against it.
To the extent that having a drug and alcohol testing program can contribute to lower drug and alcohol abuse in the workplace, the company can enjoy lower costs and higher profits as a result of lower employee turnover, fewer accidents, lower workers comp costs, higher employee morale and greater productivity.
The Cons
The program can be costly. The individual tests run less than $50 each, but by the time you include the costs of administering the entire program, over time it can be very costly. In fact a congressional committee estimated the cost of each positive test in government to be $77,000, because the positive test rate was 0.5%. One of the reasons suggested for the downward trend in drug and alcohol testing in recent years has been the cost/benefit of such programs.
People wishing to beat drug tests will go to great lengths to do so. There is a whole multi-million dollar industry built around beating drug tests, products ranging from the Whizzinator to fake urine to various additives all touted as a sure way to pass drug tests and available a click away on the internet. So there is a constant race to keep technology a step ahead of those who wish to beat it.
One other factor to keep in mind before launching a drug and alcohol testing program is how it will impact the culture of the organization. If not communicated well, the program can cause discontent among employees. Some employees view drug and alcohol testing to be invasive.
The programs can also be administratively complex to administer, given the myriad of laws and administrative rules that must be followed. Under Iowa Code Section 730.5 employers are required to have the following in place in order to maintain a drug and alcohol testing program.
1. Have a policy in place that complies with Iowa Code Section 730.5, and you have distributed and communicated it to all covered employees.
2. Have an employee assistance program in place or you have a resource file where employees can access help for substance abuse problems.
3. Provide training as outlined in the Code to supervisors (2 hours the first year, 1 hour subsequent years).
Additionally, employers who do drug testing must work with qualified collection sites, laboratories and medical review officers, or if they choose to do the testing on-site, must have facilities and staff that meet the strict qualification standards.
Finally, drug and alcohol testing programs cannot assure that drug and alcohol abuse is eliminated from the workplace. To be fully effective it must rely on the training and best judgment of the supervisors and employees of the company.
There are a number of situations where drug and alcohol testing might be the preferred option, for instance, if your company is required by law to test certain populations of employees, you may want to test all employees to maintain consistency, or if you have a high risk working environment such as heavy machinery. It is never a good idea to introduce drug and alcohol testing as a way to weed out a problem employee.
Alternatives to Testing
The best place to begin is to have a zero-tolerance policy on drug and alcohol abuse in the workplace. Distribute the policy to all employees and train employees and supervisors on the dangers of drug and alcohol abuse, how to spot it, and what to do if they spot it in the workplace. Training your supervisors on substance abuse identification and response can be a very effective alternative to testing. If your company has an employee assistance program, the EAP professionals can be a great resource to you and your supervisors in addressing potential substance abuse cases.
Recently there has been some interest in using computer-based performance tests where employees set their own baselines, then must achieve a passing score before clocking in to work. While performance tests like this do show promise they haven’t met with wide acceptance.
Is Drug and Alcohol Testing Right For Our Company?
In the state of Iowa drug and alcohol testing is very defined. Employers considering whether it is right in their organizations need to first become familiar with Iowa Code 730.5, which covers the parameters of testing and the responsibilities of employers. Then employers need to consider how drug and alcohol testing will fit with their organizational cultures and with their business objectives to determine if that is the best alternative to achieve a drug and alcohol abuse-free workplace.
Please visit our website at http://www.yourownhrpro.com
Thursday, June 25, 2009
Overcoming Negativity in the Workplace
Hello! My name is Bev,the other half of Your Own HR Pro, and I would like to share my thoughts with you about something that affects not only the employees, but customers’ perception of the company, and in turn the bottom line. I’m talking about negativity in the workplace.
In today’s business environment, people are working harder, sometimes for less money, people’s hours are being cut back, many are losing their jobs or they see their co-workers losing their jobs, and they are left picking up the extra work. You as a manager, are closely in touch with employees throughout the company, allowing you to keep your fingers on the pulse of the organization to sense workplace negativity. It enables you to establish and heed early warning signals that all is not well. You receive employee complaints, do exit interviews with employees who leave, and know the reputation of your organization in your community.
Negativity is often the result of a loss of confidence, control, broken promises and the accountability of senior management. Knowing what people are negative about is the first step in solving the problem.
In my experience, when rumblings and negativity are beginning in your organization, talking with the employees will help you understand the exact problems and the degree to which the problems are impacting your workplace. You will want to pinpoint employee, employee groups who are experiencing the negativity, and the nature of the issues that sparked their unhappiness.
Perhaps the organization made a decision that adversely affected staff. Perhaps the executive manager held a staff meeting and things were said or questions were asked that were misperceived or perceived as threatening. Perhaps underground rumors are circulating about an impending layoff. People may feel that they give the organization more than they receive in return. They may feel that a coworker was mistreated or denied a deserved promotion.
Whatever the cause of the workplace negativity, you must address the issues, or like a seemingly dormant volcano, they will boil beneath the surface, and periodically bubble up and overflow to cause fresh damage.
The best way to combat workplace negativity is to keep it from occurring in the first place. These following tips will help you minimize the workplace negativity.
- Provide opportunities for people to make decisions about and control and/or influence their own job. The single most frequent cause of workplace negativity I encounter is traceable to a manager or the organization making a decision about a person’s work without his or her input. Almost any decision that excludes the input of the person doing the job is perceived as negative.
- Make opportunities available for people to express their opinion about workplace policies and procedures. Recognize the impact of changes such areas as work hours, pay, benefits, assignment of overtime hours, comp pay, dress code, job requirements and working conditions.
- Treat people as adults with fairness and consistency. Develop and publicize workplace policies and procedures that organize work effectively. Apply them consistently. As an example, if your vacation policy allows the opportunity for employees to apply for vacation time, tell the employees how the decisions will be made and apply the same factors to all employees.
- Address the issues directly with those employees. You want to minimize the number of rules directing the behavior of adult people at work. Treat people as adults; they will usually live up to your expectations and their own expectations.
- Help people feel like members of the in-crowd; each person wants to have the same information as quickly as everyone else, and nobody wants to feel excluded. Provide the context for decisions, and communicate effectively and constantly.
- Afford the people the opportunity to grow and develop. Training, perceived opportunities for promotion, lateral moves for development, and cross training are visible signs of an organization’s commitment to staff.
- Provide appropriate leadership and strategic framework, including mission, vision, values, and goals. People want to feel as if they are part of something bigger than themselves. If they understand the direction, and their part in making the desired outcomes happen, they can effectively contribute more.
- Provide appropriate rewards and recognition so people feel their contribution is valued. The power of appropriate rewards and recognition for a positive workplace is remarkable. Suffice to say, rewards and recognition are among the most powerful tools an organization can use to buoy staff morale.
Take some time to analyze how well your organization is applying these recommendations. They form the foundation for a positive staff morale and minimized negativity in your workplace.
Please check our our website http://www.yourownhrpro.com
Tuesday, June 23, 2009
Things I Learned From My Dad…
I am blessed that I still have both of my parents, and both are in good health. My dad is 92. Dad always wanted to be a minister, but had to stay home and run the farm as his dad was in poor health. He would have made a real good one… I need to tell him that… I know he would have been a good minister because he was such a good dad, and both need a lot of the same skills. So here are a few of the things I have learned from him over the years.
Keep your rows straight - He always took great pride in how his fields looked… nice straight rows. His secret to straight rows was looking ahead. When he struck out on a new field he would pick an object on the other end of the field and focus on that, heading straight toward it. Sort of like goals… begin with the end in mind, and always keep that in focus. Don’t let the everyday things happening around you distract you from that goal. Anyway, he tells of a time he did this and got to the other end only to find that the object he had set his sight on was a calf that was pacing back and forth along the fence line.
Creativity and ingenuity - Thinking outside the box is a buzz term that has been around for awhile, but I think my dad had that concept mastered years before. One example that stands out happened during harvest time. There was a rain storm moving in and Dad wanted to finish combining the field before it hit. As luck would have it, the main bearing in the feeder chain went out. The nearest part was hours away, and by that time the rain would be there. As Dad sat looking at what was left of the roller bearing, it struck him that bearing cylinders were about the same size as 16 penny nails. He grabbed a handful of nails, cut them to the right length, packed them back into the bearing race with grease, put it back together, and that home-made bearing ran on that old combine until it was retired several years later.
Looking after people - If you can claim one best friend in life you are fortunate indeed. A best friend is a rare and precious gift. I think there are several people who would claim my dad as their best friend. Why? Because he invested in them, cared for them and he looked after them. He was never too busy to help other people. He is the person who will drive over to check in on someone to make sure they are OK, or just give them a call to chat. He treated everyone with respect. It didn’t matter if it was the bank president or the kid that everyone else picked on. They were his friend.
I find myself getting so caught up with the fast pace that today's culture puts on us that it is easy to forget this. But it is so important, both in personal relationships and in business relationships.
Finally, my dad taught me that success isn’t how much money you make or how high you climb on the corporate ladder, it is how you touch those around you.
Thank you Dad.
Please visit our website http://www.yourownhrpro.com/
Keep your rows straight - He always took great pride in how his fields looked… nice straight rows. His secret to straight rows was looking ahead. When he struck out on a new field he would pick an object on the other end of the field and focus on that, heading straight toward it. Sort of like goals… begin with the end in mind, and always keep that in focus. Don’t let the everyday things happening around you distract you from that goal. Anyway, he tells of a time he did this and got to the other end only to find that the object he had set his sight on was a calf that was pacing back and forth along the fence line.
Creativity and ingenuity - Thinking outside the box is a buzz term that has been around for awhile, but I think my dad had that concept mastered years before. One example that stands out happened during harvest time. There was a rain storm moving in and Dad wanted to finish combining the field before it hit. As luck would have it, the main bearing in the feeder chain went out. The nearest part was hours away, and by that time the rain would be there. As Dad sat looking at what was left of the roller bearing, it struck him that bearing cylinders were about the same size as 16 penny nails. He grabbed a handful of nails, cut them to the right length, packed them back into the bearing race with grease, put it back together, and that home-made bearing ran on that old combine until it was retired several years later.
Looking after people - If you can claim one best friend in life you are fortunate indeed. A best friend is a rare and precious gift. I think there are several people who would claim my dad as their best friend. Why? Because he invested in them, cared for them and he looked after them. He was never too busy to help other people. He is the person who will drive over to check in on someone to make sure they are OK, or just give them a call to chat. He treated everyone with respect. It didn’t matter if it was the bank president or the kid that everyone else picked on. They were his friend.
I find myself getting so caught up with the fast pace that today's culture puts on us that it is easy to forget this. But it is so important, both in personal relationships and in business relationships.
Finally, my dad taught me that success isn’t how much money you make or how high you climb on the corporate ladder, it is how you touch those around you.
Thank you Dad.
Please visit our website http://www.yourownhrpro.com/
Thursday, June 18, 2009
Same Sex Marriage in Iowa - What Employers Need to Know
On April 27, 2009 it became legal in Iowa for gay and lesbian couples to have access to civil marriage. So Iowa now joins Massachusetts and Connecticut as the only states currently allowing same-sex marriage. Legislation is pending in several states, and in several states same-sex civil unions are legal, which offer some, but not all of the privileges of marriage.
This is a hotly debated topic, and my intent here is not to take any side, but to discuss the impact on employers from a legal standpoint. It is a complex issue, particularly when it comes to employee benefits, where some benefits are governed by Iowa law, some by federal law (which does not recognize same-sex marriage), and some by both.
First I would like to discuss the area of respectful workplace, discrimination and harassment. The law has not changed in this area. Sexual orientation has always been protected under the Iowa Civil Rights Act, which means that you cannot discriminate against or harass an employee because he or she is gay or lesbian.
What may change is a "coming out." Your employee may have chosen not to disclose to anyone at work that he or she was gay or lesbian, but if someone sees their wedding announcement in the newspaper, the word would be out. So you need to be extra sensitive to these situations, and be proactive to head off any potential issues. And by all means, make sure you have your respectful workplace/harassment policy in place, that it is communicated to your employees, and that they know the process to report harassment if it occurs.
Also, be aware that you need to treat people equitably. So if it is the culture at your company to throw a wedding shower or chip in for a gift for a heterosexual couple... Well, this may seem a bit awkward, but you should be thinking how you can treat your same-sex couple as equally as heterosexual couples. You should at least visit with your employee to find out his or her wishes.,
OK, on to the benefits, and this is where it gets really messy. I won't be able to cover everything here. You should rely on your benefits providers, as they are the experts and know your plans, but I'll give you some of the basics so you understand where all the craziness is coming from.
One of the priviliges of marriage is having rights as a spouse to employee benefits. The main tension here is between the Iowa law that says same-sex marriage is OK, and the Federal Defense of Marriage Act (DOMA), which specifically defines marriage as a legal union exclusively between one man and one woman. So any employee benefits controlled by federal laws like COBRA, FMLA, HIPAA, Section 125, etc. are not extended to same-sex spouses. Below are some examples.
Most employer-sponsored health plans (including dental and vision) will cover same-sex spouses. If you have a self-insured plan covered under ERISA, there may be an exception, however before excluding same-sex spouses, I would strongly suggest consulting your attorney.
If the employee loses coverage and is eligible for COBRA, he/she may elect family coverage and cover the same-sex spouse, however, if he/she waives coverage, the same-sex spouse does not have COBRA priviliges on his/her own.
HIPAA is a federal law, so same-sex spouses have no special enrollment rights for qualifying events. For instance, if you get married, it is normally a qualifying event to add drop coverage, but not for same-sex spouses. However they could enroll at the next open enrollment.
Family Medical Leave Act (FMLA) is a federal law, so does cover time off to care for same-sex spouse.
Section 125 (Flexible Spending Accounts) and Health Savings Accounts are federal laws, so that money cannot be used to reimburse for same-sex spouse expenses.
This is not a complete list. You should discuss all of your employee benefits with your benefits providor. In addition you should review your policies for any references to spouse or domestic partner to make sure you are using the terminology you intend. Examples of plans and policies to review are bereavement leave, sick leave, any self-funded reinsurance, your retirement or pension plans, and adoption assistance plans.
While we at Your Own HR Pro are not your benefits experts, we can be of assistance in reviewing and developing your employee policies and providing respectful workplace training. Don't hesitate to give us a call.
Please visit our website http://www.yourownhrpro.com/ .
This is a hotly debated topic, and my intent here is not to take any side, but to discuss the impact on employers from a legal standpoint. It is a complex issue, particularly when it comes to employee benefits, where some benefits are governed by Iowa law, some by federal law (which does not recognize same-sex marriage), and some by both.
First I would like to discuss the area of respectful workplace, discrimination and harassment. The law has not changed in this area. Sexual orientation has always been protected under the Iowa Civil Rights Act, which means that you cannot discriminate against or harass an employee because he or she is gay or lesbian.
What may change is a "coming out." Your employee may have chosen not to disclose to anyone at work that he or she was gay or lesbian, but if someone sees their wedding announcement in the newspaper, the word would be out. So you need to be extra sensitive to these situations, and be proactive to head off any potential issues. And by all means, make sure you have your respectful workplace/harassment policy in place, that it is communicated to your employees, and that they know the process to report harassment if it occurs.
Also, be aware that you need to treat people equitably. So if it is the culture at your company to throw a wedding shower or chip in for a gift for a heterosexual couple... Well, this may seem a bit awkward, but you should be thinking how you can treat your same-sex couple as equally as heterosexual couples. You should at least visit with your employee to find out his or her wishes.,
OK, on to the benefits, and this is where it gets really messy. I won't be able to cover everything here. You should rely on your benefits providers, as they are the experts and know your plans, but I'll give you some of the basics so you understand where all the craziness is coming from.
One of the priviliges of marriage is having rights as a spouse to employee benefits. The main tension here is between the Iowa law that says same-sex marriage is OK, and the Federal Defense of Marriage Act (DOMA), which specifically defines marriage as a legal union exclusively between one man and one woman. So any employee benefits controlled by federal laws like COBRA, FMLA, HIPAA, Section 125, etc. are not extended to same-sex spouses. Below are some examples.
Most employer-sponsored health plans (including dental and vision) will cover same-sex spouses. If you have a self-insured plan covered under ERISA, there may be an exception, however before excluding same-sex spouses, I would strongly suggest consulting your attorney.
If the employee loses coverage and is eligible for COBRA, he/she may elect family coverage and cover the same-sex spouse, however, if he/she waives coverage, the same-sex spouse does not have COBRA priviliges on his/her own.
HIPAA is a federal law, so same-sex spouses have no special enrollment rights for qualifying events. For instance, if you get married, it is normally a qualifying event to add drop coverage, but not for same-sex spouses. However they could enroll at the next open enrollment.
Family Medical Leave Act (FMLA) is a federal law, so does cover time off to care for same-sex spouse.
Section 125 (Flexible Spending Accounts) and Health Savings Accounts are federal laws, so that money cannot be used to reimburse for same-sex spouse expenses.
This is not a complete list. You should discuss all of your employee benefits with your benefits providor. In addition you should review your policies for any references to spouse or domestic partner to make sure you are using the terminology you intend. Examples of plans and policies to review are bereavement leave, sick leave, any self-funded reinsurance, your retirement or pension plans, and adoption assistance plans.
While we at Your Own HR Pro are not your benefits experts, we can be of assistance in reviewing and developing your employee policies and providing respectful workplace training. Don't hesitate to give us a call.
Please visit our website http://www.yourownhrpro.com/ .
Wednesday, June 17, 2009
Ouch! Company To Pay $30K Back Pay To Workers
This was a headline on today's KCCI website. You'd hate that to be about your company, wouldn't you!?
The Department of Labor said that the company paid nonexempt (hourly) employees their normal rate for travel time. When employees are travelling to and from jobs or any other company directed activity, that time is compensable. Whenever compensable time exceeds forty hours per week it must be paid at the overtime rate of 1½ times their regular pay.
Time that doesn't count toward the forty hours and doesn't have to be paid at 1½ times pay includes vacation, PTO, sick, and other paid time that isn't actually worked.
Overtime pay is an area that is easy to get stung. The rules are complicated. If you're not sure how time should be paid, your best bet is to call the Department of Labor and ask them. Or, if that makes you nervous, call us (you knew that was coming, now didn't you?).
Please visit our website http://www.yourownhrpro.com/ .
The Department of Labor said that the company paid nonexempt (hourly) employees their normal rate for travel time. When employees are travelling to and from jobs or any other company directed activity, that time is compensable. Whenever compensable time exceeds forty hours per week it must be paid at the overtime rate of 1½ times their regular pay.
Time that doesn't count toward the forty hours and doesn't have to be paid at 1½ times pay includes vacation, PTO, sick, and other paid time that isn't actually worked.
Overtime pay is an area that is easy to get stung. The rules are complicated. If you're not sure how time should be paid, your best bet is to call the Department of Labor and ask them. Or, if that makes you nervous, call us (you knew that was coming, now didn't you?).
Please visit our website http://www.yourownhrpro.com/ .
Monday, June 15, 2009
Swine Flu - Is Your Company Prepared?
Swine flu, or H1N1 for us Iowans who want to be piglitically correct, has been in the news for months now, and most of us have pretty much stopped paying attention. But the World Health Organization (WHO) has declared it a world-wide pandemic... the first one in forty years! So that should grab our attention! It has already affected 30,000 people in 74 countries world-wide, and even though those pesky little virus bugs will lie low during the summer months, they are expected back full force this fall.
So if we do have a worst case scenero this fall, is your company prepared? The Mercer company did a survey of large companies and found two out of five didn't have contingency plans to deal with emergencies or disasters. I would imagine with small companies that percentage would be even higher. So if half of your employees call in sick some Monday morning in October, what are you going to do?
Now is the best time to be thinking about how to respond to a worst case scenero, not on that Monday morning after you've received the 10th call from your sick employees. Here are some of the things to think about and put some contingency plans in place.
So if we do have a worst case scenero this fall, is your company prepared? The Mercer company did a survey of large companies and found two out of five didn't have contingency plans to deal with emergencies or disasters. I would imagine with small companies that percentage would be even higher. So if half of your employees call in sick some Monday morning in October, what are you going to do?
Now is the best time to be thinking about how to respond to a worst case scenero, not on that Monday morning after you've received the 10th call from your sick employees. Here are some of the things to think about and put some contingency plans in place.
- How will you communicate with your employees?
- How will you keep disease from spreading employee to employee? (hygene, work from home, limit travel and meetings, health screenings, etc.)
- How will you keep the essential functions of your business operating and your customers served?
There are resources available on-line to help you prepare contingency plans. The World Health Organization website is one. Local agencies such as Red Cross can also be resources. We can point you to others.
Please visit our website at www.yourownhrpro.com .
Friday, June 12, 2009
Cutting Costs in a Wage and Hour Minefield
Times are tough and business is slow for a lot of companies, and in an effort to lower costs a lot of businesses are looking at ways to reduce their payroll expenses without having to lay people off. One of the popular approaches is to reduce hours or to actually shut down operations for a day or two each week or month. Good idea, but watch out, because if you're not careful, it may end up costing you more than you're saving!
How could that be you ask? Well, it has to do with how the federal and state wage and hour laws (primarily FLSA for those of you who like alphabet soup) handle overtime exemptions. Under FLSA there are two classes of employees, those exempt from overtime pay and those who are not exempt from overtime pay. We commonly refer to these as salaried and hourly. Not precise terms, but they'll do.
With hourly employees, you can do pretty much anything you want with their hours, so long as it doesn't violate things like union contracts or other employment agreements you may have with them.
With salaried employees it's quite different. In order to be exempt from the overtime pay provisions of FLSA you have to meet various criteria, including that they are paid a regular weekly salary, and that salary isn't tied to punching a time clock. So as soon as you tell them to go home on Friday and dock them a day's pay, you are violating that criteria, and they are no longer exempt from the overtime provision.
You don't want to have to pay all of your managers, sales people, and professional staff overtime pay!
So, what are your alternatives? There are several. You can ask them to take vacation days (or other paid days off) on the days you send everyone else home, you can have them take off time a whole week at a time unpaid, or you can reduce their salary (as long as it stays above $455 per week).
Sound complicated? Yes it is! And I've even left out most of the details. So if you are considering this and not sure how to proceed, give us a call at 515-314-9835, and we can help you through the minefield.
Finally, WHAT you do isn't as important as HOW you do it. Communicating these tough messages to your employees in a compassionate way, including them in the solution, and encouraging their input and feedback is key. We've had years of experience crafting and delivering messages like this, so call us for help.
Please visit our website at http://www.yourownhrpro.com/.
How could that be you ask? Well, it has to do with how the federal and state wage and hour laws (primarily FLSA for those of you who like alphabet soup) handle overtime exemptions. Under FLSA there are two classes of employees, those exempt from overtime pay and those who are not exempt from overtime pay. We commonly refer to these as salaried and hourly. Not precise terms, but they'll do.
With hourly employees, you can do pretty much anything you want with their hours, so long as it doesn't violate things like union contracts or other employment agreements you may have with them.
With salaried employees it's quite different. In order to be exempt from the overtime pay provisions of FLSA you have to meet various criteria, including that they are paid a regular weekly salary, and that salary isn't tied to punching a time clock. So as soon as you tell them to go home on Friday and dock them a day's pay, you are violating that criteria, and they are no longer exempt from the overtime provision.
You don't want to have to pay all of your managers, sales people, and professional staff overtime pay!
So, what are your alternatives? There are several. You can ask them to take vacation days (or other paid days off) on the days you send everyone else home, you can have them take off time a whole week at a time unpaid, or you can reduce their salary (as long as it stays above $455 per week).
Sound complicated? Yes it is! And I've even left out most of the details. So if you are considering this and not sure how to proceed, give us a call at 515-314-9835, and we can help you through the minefield.
Finally, WHAT you do isn't as important as HOW you do it. Communicating these tough messages to your employees in a compassionate way, including them in the solution, and encouraging their input and feedback is key. We've had years of experience crafting and delivering messages like this, so call us for help.
Please visit our website at http://www.yourownhrpro.com/.
Wednesday, June 10, 2009
Isn't HR Just Plain Common Sense?
Isn't HR just plain common sense? Well, when you strip away all of the laws and regulations we have to comply with, I think it is. Let me give you an example.
My son is perhaps the most brilliant graphic artist/designer in the state of Iowa, and I say that with absolutely no bias whatsoever. He worked for a very prominent and well-known Des Moines advertising/marketing firm which will remain nameless for purposes of this example. Last Monday, all of the employees at his office were called into a meeting where various business items were discussed. A PowerPoint presentation was used. One of the PowerPoint slides was titled something like "staff changes." It was a list of nineteen employees, including him. These employees (who were there in the room, surrounded by all the other employees) were told right there and then that they no longer had jobs, and that they were to go back to their desks, gather their immediate personal belongings, leave the building, and call to make arrangements to return at a later time to collect any other personal belongings, return company property, and go over termination paperwork....
.....just like that.
I don't even know where to begin on this one. I was stunned when I heard about this. I've been involved in some tough terminations in my day where I felt really bad for the employees, but at least it always involved a private meeting with them.
OK, now do you know what I mean about HR being common sense? You have to treat people with respect and some compassion! That's common sense, right? Don't people learn the Golden Rule anymore? If you are planning a big lay off and not sure how to do it, wouldn't one of the questions you ask yourself be, "How would I want to be treated if I were being laid off?"
Do companies not realize that ex-employees are some of their strongest ambassadors in the community? ...for good or for bad. The smart companies learn how to terminate employees in a way that they part as friends.... they don't burn bridges. RSM McGladrey is a great example of this, their ex-employees are some of their best sources of customer and employee referrals.
Common sense and treating people like you would like to be treated, and like business partners, not like commodities, can go a long way in driving good human resources practices that will make your company more profitable.
Please visit our website www.yourownhrpro.com.
My son is perhaps the most brilliant graphic artist/designer in the state of Iowa, and I say that with absolutely no bias whatsoever. He worked for a very prominent and well-known Des Moines advertising/marketing firm which will remain nameless for purposes of this example. Last Monday, all of the employees at his office were called into a meeting where various business items were discussed. A PowerPoint presentation was used. One of the PowerPoint slides was titled something like "staff changes." It was a list of nineteen employees, including him. These employees (who were there in the room, surrounded by all the other employees) were told right there and then that they no longer had jobs, and that they were to go back to their desks, gather their immediate personal belongings, leave the building, and call to make arrangements to return at a later time to collect any other personal belongings, return company property, and go over termination paperwork....
.....just like that.
I don't even know where to begin on this one. I was stunned when I heard about this. I've been involved in some tough terminations in my day where I felt really bad for the employees, but at least it always involved a private meeting with them.
OK, now do you know what I mean about HR being common sense? You have to treat people with respect and some compassion! That's common sense, right? Don't people learn the Golden Rule anymore? If you are planning a big lay off and not sure how to do it, wouldn't one of the questions you ask yourself be, "How would I want to be treated if I were being laid off?"
Do companies not realize that ex-employees are some of their strongest ambassadors in the community? ...for good or for bad. The smart companies learn how to terminate employees in a way that they part as friends.... they don't burn bridges. RSM McGladrey is a great example of this, their ex-employees are some of their best sources of customer and employee referrals.
Common sense and treating people like you would like to be treated, and like business partners, not like commodities, can go a long way in driving good human resources practices that will make your company more profitable.
Please visit our website www.yourownhrpro.com.
Tuesday, June 9, 2009
Welcome!
Hi! And welcome to the Your Own HR Pro Blog! I'm Norm Hoffman, lead blogger, I have my blogging shoes on and ready to go! My partner, Bev Sawin, will be stepping in from time to time as well. In this first post I'll give a brief background of Bev and myself and an overview of what Your Own HR Pro is all about.
I've been in the human resources business for twenty three years, and Bev's been doing this for over eighteen, so that makes over forty years of total HR experience! I started as an intern with Preferred Risk Insurance (now GuideOne)and stayed on for several more years to run their compensation and benefits. From there went to GenEx, which morphed into Praxair Distribution, Inc. for a total of 13 years, did some consulting for a couple of years, spent a couple of years with Employee and Family Resources as a workplace consultant, and most recently was with the internal HR group with RSM McGladrey. I met Bev in 1992 when I hired her as a part-time payroll clerk at GenEx. It didn't take long to recognize that she had a whole lot of talent managing systems and training and leading people, and by the time I left Praxair in 2002 she and I were peers. We worked together again as consultants when she left Praxair shortly thereafter. For the past five or six years (I'm sure she'll correct me on this) she has been Client Relationship Manager at Merit Resources.
We formed Your Own HR Pro to bring the best human resources expertise and practices to small and mid-size companies. Many smaller companies can't afford to have a HR professional on staff or it just makes more sense to outsource some of the work. Bev's expertise is organizing HR administration, policies, and training. She is also bilingual Spanish. My specialty is helping organizations develop future leaders. I also have a lot of experience with organization development, culture, employee surveys, and risk management. We have the experience and expertise to make HR easier for you.
We will be posting blogs about emerging trends in human resources, new laws that affect your business, HR tips, and occasionally rants and opinions. This is also a forum where you can comment, ask questions, and jump into the mix. I hope you find it enjoyable and informatve.
Please visit our website http://www.yourownhrpro.com/
I've been in the human resources business for twenty three years, and Bev's been doing this for over eighteen, so that makes over forty years of total HR experience! I started as an intern with Preferred Risk Insurance (now GuideOne)and stayed on for several more years to run their compensation and benefits. From there went to GenEx, which morphed into Praxair Distribution, Inc. for a total of 13 years, did some consulting for a couple of years, spent a couple of years with Employee and Family Resources as a workplace consultant, and most recently was with the internal HR group with RSM McGladrey. I met Bev in 1992 when I hired her as a part-time payroll clerk at GenEx. It didn't take long to recognize that she had a whole lot of talent managing systems and training and leading people, and by the time I left Praxair in 2002 she and I were peers. We worked together again as consultants when she left Praxair shortly thereafter. For the past five or six years (I'm sure she'll correct me on this) she has been Client Relationship Manager at Merit Resources.
We formed Your Own HR Pro to bring the best human resources expertise and practices to small and mid-size companies. Many smaller companies can't afford to have a HR professional on staff or it just makes more sense to outsource some of the work. Bev's expertise is organizing HR administration, policies, and training. She is also bilingual Spanish. My specialty is helping organizations develop future leaders. I also have a lot of experience with organization development, culture, employee surveys, and risk management. We have the experience and expertise to make HR easier for you.
We will be posting blogs about emerging trends in human resources, new laws that affect your business, HR tips, and occasionally rants and opinions. This is also a forum where you can comment, ask questions, and jump into the mix. I hope you find it enjoyable and informatve.
Please visit our website http://www.yourownhrpro.com/
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