Scary Stats from SDEA’s 2010 Employment Law Update:
Posted by hr_mandy in Uncategorized on February 1, 2010
Here are some “Scary Stats” presented at this year’s Employment Law Update by Lonny Zilberman, Esq. of Wilson Turner Kosmo LLP as he discussed the Top Employer Mistakes of 2009.
75% of Claims Right Now are…. Disability Discrimination.
Highest Percentage of Complaints… Employers with 20-100 Employees.
There has been a “Tsunami” of Class Actions over Wage & Hour… 95% of the settlements were over $1 million dollars.
#1 of the Class Actions was Meal & Rest Period Violations. Some amounts awarded: 22.75 million, 10.5 million, 3.3 million and 1.4 million. All of these cases were won/lost (depending upon whose side you are on) in the TIME RECORDS!
Misclassification of Non-Exempt Employees as Exempt awarded employees 47.5 million, 17.25 million, 10 million, 7.5 million and 1.4 million from their respective companies.
Retaliation on Whistleblowers awarded employees 325 million, 26.3 million, 6.8 million, and 4 million. Wow, this is some serious money! An important note: not a single one of the companies is a household name.
In California the Department of Fair Employment and Housing (DFEH) gets about 28K Complaints each year. How can you make sure your company is not one of them?
Audit your Company! Audit your Practices! Audit your Records! Audit! Audit! Audit!
Train your Managers! Train your Staff! Train your Executives! Train! Train! Train!
Document Everything! Document Objectively! Document! Document! Document!
Be Consistent in Hiring, Firing and Everything In-Between! Consistency is Key!
Get Help! If you have 20-100 employees the Stats PROVE You Need Help!
The San Diego Employers Association can help! Contact Mandy Blackford, Membership Liaison for a Free HR Employment Practices Review. This “Self Review” will help you identify areas you might be open to a lawsuit or fine!
Contact Mandy @ 858-679-7332 or mblackford@sdea.com to be e-mailed your free HR Employment Practiced Review TODAY!
It’s 2010… 5 HR Items You Should Focus On
SDEA’s Annual Employment Law Update left attendees with a checklist of items that HR needed to ensure for 2010. The checklist was compliments of Paul Plevin Sullian & Connaughton as Rich Paul, Esq. was one of the illustrious speakers at the event.
Here are some key items that have probably not been discussed enough (or are now out of the limelight) to really sink in and cause action, but PPSC are recommending you make a focus for 2010:
v Consider Adopting an H1N1 policy that follows the CDC Guidelines. (There is some speculation that we will see another wave of this in late Winter/early Spring.)
v Scrub your policies to ensure they do not prohibit employees from discussing their wages or working conditions.
v Consider a “No use of Cell Phones while Driving” policy to ban employees from texting while driving and from talking without a hand free device.
v Update hiring practices regarding applicants who fail pre-screen drug test (may refuse to hire even if the person has a doctor’s note clearing them to take the illegal substance.) – Think authorizations and offer letters.
v Conduct an Audit of “Exempt” positions. (In this down economy many have scaled back which means more work for those left. Are your exempt employees still exempt?
Note: The above list is only 5 of the 32 points recommended in the Human Resources Compliance Checklist: Things to Do for 2010 © 2009 Paul, Plevin, Sullivan & Connaughton LLP.
The San Diego Employers Association helps local employers with their Compliance, HR Practices and Training! Contact Mandy Blackford, Membership Liaison for a Free HR Employment Practices Review. This “Self Review” will help you identify areas you might be open to a lawsuit or fine!
Contact Mandy @ 858-679-7332 or mblackford@sdea.com to be e-mailed your free HR Employment Practiced Review TODAY!
SDEA’s February Newsletter Now Available!
SDEA’s February Newsletter is now available online.
Contents: SDEA Announces New Director, Computer Professional Exempt Employees, DLSE Approves Deductions Of Fewer Than Four Hours From Exempt Employee Leave Banks and more!
Deducting Vacation Hours from Exempt Employees
Posted by hr_mandy in Uncategorized on December 31, 2009
The DLSE has recently released an option letter regarding “Deductions for Partial and Full Day Absences of Exempt Employees.” This 13 page letter, while not law, does offer employers support if they choose to have policies allowing them to deduct vacation pay from Exempt Employees Leave Banks in any increment- different from the originally believed 4 hours at a time.
For those that do not have the time (or patience) to read the 13 page letter… Paul, Plevin, Sullivan & Connaughton LLP summarized it for us in their Employment Law E-Update dated December 22, 2009: “DLSE Approves Deductions of Fewer Than Four Hours From Exempt Employees Leave Banks.”
While this is a change that supports employers PPSC remind us that “If the employee’s accrued leave balance is exhausted, he or she must be paid the full salary for that day because partial day deductions from an exempt employee’s salary are not allowed.”
As in all their Employment Law Updates, PPSC sum up ‘what this means’ to employers..
“Although DLSE opinions do not have the force of law, California employers now have support for making deductions in any increment from an exempt employee’s accrued leave bank. Before doing so, however, employers must revise their vacation, sick leave or paid time off policies to expressly allow for partial day deductions in increments shorter than four hours. Employers should also decide whether to require the use of accrued vacation time when sick pay is exhausted, and must make the appropriate changes to their policies if they wish to do so. Keep in mind that employers must give advance notice to employees of any changes to accrued leave policies.”
New Years and Resolutions… Five Points to Help!
Posted by hr_mandy in Uncategorized on December 29, 2009
Stacey McKibbin of ActionCOACH stood before an audience of 50 people and asked what is the difference between Goals and Resolutions? The room was quiet . That was a good question. At SDEA’s Breakfast Brief in December we were there to talk about Goal Setting for 2010; but New Years 2010 was quickly approaching, and with that comes the annual list of Resolutions. So, what is the difference? Weren’t they the same. If you set goals or make your New Years Resolutions they were all in the same group- weren’t they? Something you hoped to do… that (If you are like me) you may or may not accomplish.
Stacey explained that they were not, in fact, the same.
Dictionary.com defines Goal as: the result or achievement toward which effort is directed; aim; end.
Stacey pointed out that this is where effort is directed. Whereas Resolution is defined as: the act of resolving or determining upon an action or course of action, method, procedure or the mental state of quality of being resolved or resolute.
There is a big difference between directing effort and being RESOLVED to do something. Directing effort, as you can towards a goal is not the same as Resolving to Be Different.
I took a moment to reflect on my prior New Years Resolutions. Yep, pretty much the same year after year. It doesn’t take a rocket scientist to figure out that I must not be achieving them if the goals are always the same. I have some pretty typical resolutions and have them in the same format in my head:
1. Lose Weight/Get in Shape (Yep, me and just about everyone else in America.)
2. Walk the Dogs More Often
3. Get to the Beach More (Probably would do more if I could achieve #1 to my satisfaction! Yep, bathing suit season is already just a few months away!)
4. Spend More Time with Family & Friends
These are just goals that are floating in my head year after year without actual attainment. They are something off in the distance that sometimes I work towards and sometimes I decide that watching Dog The Bounty Hunter is much more fun than taking the real Dogs for a Walk… So, how do we turn these goals into resolutions and get them achieved so next year they can be something different?
Stacey offered the group these jewels of information to help:
1. Don’t let fear stand in the way of Resolutions and Goal Setting. Fear is just False Expectations Appearing Real. How do you overcome the fear (for yourself and your employees?) Give permission to change the goal/resolution. Do not etch it in stone.
2. Write the Goals/Resolutions Down! All successful people are intensely goal oriented. And, if you want to be like those people… don’t reinvent the wheel. Imitate them! Write the goals/resolutions down and refer to them frequently.
Write your resolutions to help you visualize the person you want to become…
In 2010 I am healthy because I eat right at every meal, do not snack in the evenings and exercise at least 30 minutes 4 times a week. (Big difference from Lose Weight-Get Healthy!)
In 2010 I am dedicated to educating the Management Staff in our weekly meetings about the policies in our employee handbook. I will start with LOA’s and then Disciplinary Action and then…
3. Everything you do should be related to your goals/resolutions. So, when making all your resoltions about your business (and life) ask yourself “Does this task/behavior support my resolve to…?”
4. Don’t Worry. Worry is really praying about what you don’t want. (Yep, “The Secret” creeps in.) Focus on what you want and the positive. Do not spend your time on the negative and what you don’t want.
5. Find what motivates you (and your employees.) Finding out what really motivates you (and your peeps) will help you to achieve results.
ActionCOACH Stacey gave everyone in attendance some different ways to look at Goal Setting and Resolutions. I would be interested to see how many in the group actually make Real Resolutions this year. (We should have a Breakfast Brief Reunion in June! ) She left the group with a final word of wisdom… Place your Order in Life with the Same Detail as Ordering a Meal. I’ll take mine with a little spice and variety… but not so much my mouth catches fire and eats up my stomach! Watch out 2010, I am armed with new ways to achieve my resolutions. Thanks Stacey!
See Stacey speak at SDEA’s class on Strategic Planning & Goal Setting on May 18th from 9am to 4pm. For more information or to register go to www.sdea.com.
Links to GINA Posters
Posted by hr_mandy in Uncategorized on November 30, 2009
EEOC Posters for GINA Compliance from the EEOC website!
EEOC has revised its “Equal Employment Opportunity is the Law” poster. This new version reflects current federal employment discrimination law (including the Americans with Disabilities Act Amendments Act of 2008). The poster was revised to add information about the Genetic Information Nondiscrimination Act of 2008, which is effective November 21, 2009. The revised poster also includes updates from the Department of Labor.
There are several ways for employers to comply with the law:
- Print the supplement below and post it alongside EEOC’s September 2002 “EEO is the Law” poster or OFCCP’s August 2008 “EEO is the Law” poster.
- Print and post the EEOC’s November 2009 version of the “EEO is the Law” poster.
- Order a new poster through the EEOC Clearinghouse at the address provided below. Please note that the EEOC poster is on backorder and will be shipped when the poster becomes available in the near future. The new poster will also be available in Spanish, Chinese and Arabic before the GINA statute becomes effective on November 21, 2009.
Are your Hiring Practices Open to EEOC Claims?
Posted by hr_mandy in Uncategorized on November 23, 2009
Do you do candidate selection based on any type of testing? Some common tests include computer skills testing for Word, Excel and Outlook. The standard typing test to assess speed and accuracy is another popular one. Even many organizations have moved into testing the skills that are specific to the job function (IE: Telephone skills, Customer Services Skills and physical machine operation.) Not a bad idea since “The percentage of people who lie to potential employers is substantial, says Sunny Bates, CEO of New York-based executive recruitment firm Sunny Bates Associates. She estimates that 40% of all resumes aren’t altogether aboveboard.”
There is a potential problem for those companies using pre-employment testing… and, as usual in any employment situation, the problem lies in the ability to be consistent. Organizations must consistently deliver the candidate testing and consistently interpret the results. Sounds easy enough… But, what happens when there has to be an exception.
Let’s look at an example. As you will see the potential for EEOC claims in our example become much larger than just in the testing practices. You have sales and marketing department for which you need an Operations Manager. The hiring Executive has told you they need the following:
1. The ideal candidate will have an accounting background including a minimum of an associates degree.
2. The ideal candidate will have at least 8 years prior experience in an office environment including 4 years of management experience.
3. The ideal candidate will test at an Expert Level on Outlook, Word and Excel. (Yep, a certificate of proof is necessary.)
4. The ideal candidate will be able to type 60+ words per minute. (Yep, include the certificate for this too.)
Of course there are many other qualifications that the management is looking for the in the ideal candidate. But, for this example, we will stick to the four. You run the ad requesting resumes to be sent to you. Because you live in So Cal and it is the end of 2009 your in-box is about instantly flooded. Hundreds and hundreds of resumes come in. You shut down the ad after 450 resumes- surely one will be your ideal candidate.
You begin filtering. Ok, 275 did not include any/all certificates verifying skill levels as you required. Those get tossed to the side. You have 175 left. You continue to filter… Typing Certificate says 48 WPM, Excel level is Above Average, No prior management experience, no minimum associates degree. Whew, after all the filtering, you are down to 10 candidates.
Now, for our example our Senior Hiring Executive has been out there doing his own “candidate search” via his friends/colleagues network and found his own candidate that he likes. (This example works the same if none of the 10 candidates end up being the “right” match and you go back to the other 440 for more to interview.) Now the candidate he likes has the prior experience, but only 3 in management and does not have a degree. And, because it is a hand selected candidate the hiring executive does not require this candidate to provide the testing results. This Hiring Executive decrees this is the perfect candidate and moves them to the offer/orientation process.
Does this sound familiar? Despite your best candidate selection process and filtering… candidates still seem to make it in without ever having gone through you?
Here is the big problem that most do not think about in this process… because the selected candidate was not required to have the skills listed in the job posting… now, everyone that sent their resume for that job opening that did not have the qualifications should not have been considered as potential candidates. So, if one of those candidates felt that they didn’t get the job because of their race, sex, etc… the can go to the EEOC. And, while the EEOC does their investigation… they will uncover all of the resumes you have that were not considered and will identify them because they are in a protected class. And, now your open position for $60,000 annually is costing you 450K to pay out for the 245 in the protected classes that were never considered for the position.
The potential is there for something as simple as a Typing Test and minimum words per minute. You said you needed candidates to type 75 words per minute. But the candidate you selected (perfect in every other way) only types 60 words per minute. Now, you are open to possible discrimination charges because of all of those that type 60 words per minute that were not selected and just so happen to be in a protected class.
Coach you managers to understand that they need to protect the organization from EEOC claims… and that means when determining qualifications for the perfect candidate, they HAVE to stick to them. It will be a hard discussion to have with your Senior VP that insists on hiring their nephew fresh out of college for that seasoned position… But, point out that you are saving the company hundreds of thousands and numerous headaches. If they don’t believe you, simply point them to the EEOC website to read Headline after Headline of the extraordinary settlements paid by those organizations who go up against the EEOC for discrimination.
Your Get Out of Jail Free Card Will Not Work. Enourage Complaints!
Posted by hr_mandy in Uncategorized on November 12, 2009
Sitting at the NCPA 2009 Legislative Update and I hear the attorney presenting put forth a most curious thought. Stacey E. James of Littler Employment and Labor Law Solutions Worldwide said this:
“Encourage your employees to complain.”
Humm… not sure I heard her correctly… but she repeated it. “Encourage your employees to complain.” This was a most interesting thought. Never in my years of being an Operations Manager or a Human Resources Manager did I desire my employees to complain more. In fact, I encourage managers, supervisors, etc. to avoid complaining and encourage their employees not to complain. The old theory I believed was Negativity Breeds Negativity… Hence, Complaining would increase Complaints.
So, why, in my right mind would I encourage my employees to complain? And, why, would I ever encourage my members to encourage their employees to complain? This just seemed like a way to increase the line of people waiting to complain outside any poor HR Manager’s door.
However, James was right. We should encourage our employees to complain and encourage our contemporaries to encourage their employees to complain… Here’s why.
When you are driving your car and you run a stop sign, miss the sign that says to turn on your headlights, or are too busy changing your radio station to see the sign stating the speed limit changed from 55 to 35 you are still in violation of the law.
When Johnny Law pulls you over you are confused. Why are you pulling me over? Did I have a headlight out? The officer proceeds to tell you about your traffic violation. But, you get upset. You plead that you never saw the sign. Officer how can I be held responsible for a sign I never saw? How can you give me a ticket for violating the law? It was not intentional… give me a break. Now, unless you have your Monopoly “Get Out of Jail Free” Card… you are likely to have yourself a nice ticket and a date with Traffic School.
This same story applies to violations of Employment Law and Employee Rights. Your employees are protected from being discriminated against based on race, color, religion, national origin, age and disability… and even more under California Law. What you don’t know about what is happening to your employees CAN & WILL hurt you. So, yes, I agree with attorney Stacey James… Encourage Your Employees to Complain anytime they feel slighted, disgruntled, unfairly treated, harassed, whenever they need to. Encourage them to share with you what is going on. This is the only way you can be sure to be made aware of any potential problems… and given the opportunity to address them before they get completely out of hand and you find yourself representing the company against the EEOC or DFEH. You want the opportunity to address and resolve problems BEFORE governmental agencies get involved. And, YES, encouraging your employees to complain is a good way to keep your finger on the pulse of the organization.
A couple of Reminders about this…
1. Treat every complaint with respect and seriousness.
2. Investigate thoroughly.
3. Remember… now you know… so while the “I didn’t know” defense won’t protect you… the “I Knew and Ignored It” defense can put you in a much worse position.
What you don’t know can and will hurt you. Encourage your employees to complain. Thank you Stacey James for this is terrific advice!!
“Yes, You Can Reduce an Exempt Employee’s Pay” says the DLSE
Posted by jennifer_j in Uncategorized on November 2, 2009
We have just recently learned that the DLSE (Division of Labor Standards) has issued an opinion letter which, in plain English, say, “we’re changing our minds…temporarily.” Do we really need more reasons for confusing interpretations of the labor law? But wait—this appears to be in the favor of the employer! Do we dare believe?
While an opinion letter by the DLSE is definitely not “law” we as employers frequently refer to these opinion letters to help interpret otherwise very confusing legalese-type language of wage and hour laws—especially for those of us in California—we have to keep those employment law lawyers employed, right? So, this opinion letter represents a change in what we have come to know and love about the DLSE—the opinion is that an employer may reduce, on a temporary basis, an exempt employee’s salary if it is in connection with a reduction in hours without jeopardizing the employee’s exempt status—did that make sense? In plan in English, if an employer is looking to cut costs, like so many of us are in these challenging economic times, a reduction in pay that is in direct correlation to a shortened workweek, will not get you in trouble as far as your exempt employees are concerned.
A few things worth taking note, or to remember: the reduced schedule and pay must be temporary, yet fixed, i.e., the reduction is for 3 months and is for a regularly set 4-day workweek (example only), the salary requirements for exempt employees remain the same (two times minimum wage in California, which is currently $640/week) and the employee must still meet the duties test for the exemption.
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