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HR News Archive - 2007
Mileage rate to increaseThe Internal Revenue Service has announced that the optional standard mileage rate for employees who use their own cars for business purposes will go to 50.5 cents per mile on Jan. 1, 2008. The new rate compares with a rate of 48.5 cents per mile for 2007. Employers who use the standard mileage rate to reimburse employees may deduct the reimbursement as a business expense. The rate is based on an annual study of the fixed and variable costs of operating an automobile.
Military spouses eligible for UCJoining a growing group of states to do so, Connecticut now allows employees to collect unemployment compensation when they leave a job to follow a relocating military spouse. Eligibility requirements in Public Act 07-5 specify that the employee’s separation from employment must take place between July 1, 2007 and June 30, 2008. Claimants will be required to provide a copy of the service member’s transfer orders. The majority of claimants who apply for these benefits will already be living out of state, says the Department of Labor. Employers will not be assessed a charge for any former employee now eligible for benefits under the new guidelines. At least 20 other states permit unemployment benefits for military spouses.
Staffing jobs set new recordStaffing-industry employment grew to an average of 3.05 million jobs per day in the third quarter, a new third-quarter high and only the third time on record that the industry has surpassed the three million mark. Data released by the American Staffing Association (ASA) shows that staffing jobs increased 2.3% over the same period last year. The third quarter rate of job growth was the highest in five quarters — staffing employment had been flat to down slightly in the previous four quarters. The ASA Staffing Index, which measures weekly changes in temporary and contract employment, shows a mostly flat August followed by a strong September and continued growth in October. While there was softer demand earlier in the year, says ASA, the second half is seeing increased demand, particularly for employees with higher skill and education levels. U.S. sales of temporary and contract staffing services hit a quarterly record high of $18.9 billion. That was an increase of 3.6% over the same period of the previous year and the strongest rate of growth in a year and a half.
High court hears 401(k) caseThe U. S. Supreme Court will decide whether an employee can sue for lost profits when an employer mishandles his or her 401(k) account. In the case, an employee is claiming that his employer, a management consulting firm, failed to follow his investment directions, resulting in a loss of $150,000 to his account. The employee filed suit under the Employee Retirement Income Security Act (ERISA), which allows recovery of “any losses to the plan” caused by a breach of fiduciary duty. A federal appeals court ruled against the employee, saying the ERISA provision authorizes recovery only of losses to the entire plan and was never meant to provide individuals with relief. The U.S. Department of Labor had filed an amicus brief supporting the employee, arguing that if an individual account suffers a loss, the plan as a whole has suffered a loss. The Supreme Court, which recently heard oral argument in the case, will now be the final word on whether the particular provision does in fact cover losses to an individual account. Court observers who were there when the case was argued say that if questions and comments from the justices are any indication, a decision in favor of the employee is likely.
One in five does not pay severanceAs many as 18% of companies do not provide severance for non-executive employees, according to a study by WorldatWork and Innovative Compensation and Benefits Concepts LLC (ICBC), an HR consulting firm. The study, Severance and Change-in-Control Practices 2007, reveals that of those employers offering a severance plan, 71% use the number of years served as the basis for determining the amount of severance provided to employees; 31% offer one week of salary per year of service; and 20% provide two weeks’ salary for every year served. Other factors considered in determining severance include an employee’s position (21%) and pay (17%). Of the companies paying severance, 42% offer a three-tiered structure. One tier focuses on the top executive, another on senior executives, and the third on all other employees. Only 37% of surveyed companies have detailed severance plans and policies in writing. The survey also showed that annual reviews of non-executive severance plans are rare. Sixty-nine percent of organizations have not reviewed their severance plans in at least the past 12 months, while 13% of organizations report never having reviewed their plans. The study’s authors recommend that compensation committees conduct annual reviews of executive severance and change-in-control plans in conjunction with a tally-sheet analysis of the top executives’ total rewards. This will help ensure that plan costs are being prudently monitored. The survey was based on responses from 523 WorldatWork members.
Tie telecommuting to your continuity planDoes your company have continuity plans in place? If not, what would happen if your business systems were down for part of a day or days? Would you be able to restore your systems if they were destroyed? Employers often say that they develop telecommuting programs in part to ensure the continuity of operations in emergency situations and major disasters. Continuity planning assures that in the event of disruption, critical functions will continue, the effect of disruptions will be minimized and sensitive information will be protected. Having policies and procedures in place for data backup, off-site storage and contingency safeguards associated with telecommuting programs will help ensure that your company remains up and running — and can quickly recover from an emergency or disaster. Telecommute Connecticut can help your company start a new telecommuting program and develop business continuity plans or integrate contingency planning into an existing telecommuting program. Telecommute Connecticut is a commuter service of the Connecticut Department of Transportation that provides Connecticut employers with free assistance to custom-design, develop and implement telecommuting best practices for qualified employees. For more information about Telecommute Connecticut, visit www.telecommuteCT.com or call (800) 255-7433. I-9 form revisedThe U.S. Citizenship and Immigration Services (USCIS) has released a revised Form I-9 that makes a number of changes to the kinds of documents an employer may accept from a newly hired employee during the employment eligibility verification process. The revised form removes the following five documents from the “column A” list of documents that can be used to prove both identity and eligibility: • Certificate of U.S. Citizenship (Form N-560 or N-561) According to USCIS, the documents were removed because they lack sufficient features to help deter counterfeiting, tampering, and fraud. USCIS has also added a new document, the most recent version of the Employment Authorization Document (Form I-766), to the column A list of acceptable documents. The new Form I-9, which carries a revision date of “06/05/07” in the lower right-hand corner, is the only valid form for use as of Nov. 7, 2007. The revised I-9, instructions for completing it, and a fact sheet that answers many questions about the new form are now available. Report: Conn. one of healthiest statesConnecticut is among the top five healthiest states in the nation, according to the 18th annual edition of America’s Health Rankings which measures the overall healthiness of states and the nation.
Mississippi was ranked as the least healthy state, with Louisiana (49), Arkansas (48), Oklahoma (47), and Tennessee (46) completing the bottom five. This year’s report analyzed a comprehensive set of 20 health-related factors, including smoking, binge drinking, violent crime, infectious disease, high school graduation, health status and several measures of mortality. The data also showed that despite gains in reducing the rates of cancer and cardiovascular mortality, the overall health of the nation declined by a rate of .3% since last year. This lack of progress contrasts with the nation’s average annual improvement of 1.5% between 1990 and 2000. The report was published by United Health Foundation, the American Public Health Association, and Partnership for Prevention
Final rule on employer-paid protective equipmentEight years after it was first proposed, a final rule on employer-paid personal protective equipment (PPE) has been issued by the Occupational Safety and Health Administration (OSHA). Under the rule, all required PPE, with few exceptions, will be provided by the employer at no cost to the employee. Those exceptions include:
The new rule covers general industry, shipyard employment, longshoring, marine terminals, and construction. The rule takes effect on Feb. 13, 2008, but has an enforcement deadline of May 15, 2008, to allow employers to change their existing PPE payment policies. 'No-match' rule will be revisedThe Bush administration says it will drop its legal defense of a controversial rule covering “no-match” letters and revise it instead. In August the government published the rule outlining the steps employers should take if they receive a “no-match” letter from the Social Security Administration (SSA). The agency sends out the letter when the name and Social Security number submitted for an employee do not match SSA records. Under the rule, an employer would face criminal and civil liability if it failed to follow the steps and an employee was found to be unauthorized to work. Business and labor groups challenged the rule, however, and a federal judge issued an injunction blocking it indefinitely. The judge said that the SSA database contained errors that could cost many legal workers their jobs and that the government had failed to properly study the effect the rule would have on businesses. The same judge has now agreed to a request from the Bush administration to put the case on hold until March 24, 2008, when the government thought it could have new rules ready that would address the court’s concerns.
Caregiving duties interrupt workdayOne quarter of workers caring for children and elders make calls and arrangements during work, while nearly as many leave work early, according to an online poll by LifeCare, a company that creates work/life programs. The survey asked: “If you care for a child or older loved one, what is the one adjustment you make to your work schedule most often?” Participants responded:
The responses making up the “other” category included changing from full-time work to part-time work, changing work shifts, waking up earlier and leaving work at lunch. People who care for children and older adults are going to need to make adjustments to their work schedules from time to time, says LifeCare. But employers can reduce their absenteeism and productivity losses by providing employees with support tools such as resource and referral services and backup care programs. The survey was posted on LifeCare’s private Web site for a month and was open to employees of the company’s 1,500 client organizations EEOC warns about e-mail ‘phish’ scamThe Equal Employment Opportunity Commission (EEOC) is alerting the business community to a “phishing” e-mail circulating to companies that appears to be from the agency regarding a harassment complaint. The bogus e-mail contains a virus that is likely to harm the recipient’s computer if the user clicks on the referenced Web links or downloads the attached file. The phony e-mail to employers — being circulated under the subject line “Harassment Complaint Update For”— includes links from which the recipient can allegedly access details of a fake discrimination claim. It also indicates that EEOC staff will keep the employer apprised of the agency’s investigation. An EEOC logo appears under the subject line. The agency’s policy is to notify an employer via the U.S. Postal System that a charge of employment discrimination has been filed. Because of security concerns, the EEOC does not use e-mail to notify employers of a filing. If companies receive an e-mail notification that purports to advise the respondent of a filing with the EEOC, the agency urges users to delete it immediately. Final rule on default investmentsThe U.S. Department of Labor (DOL) has unveiled a final rule establishing qualified default investment alternatives, making it easier for employers to automatically enroll workers in their 401(k) and other defined contribution plans. The DOL projects that the final rule, which resulted from the Pension Protection Act (PPA), will increase retirement savings in 401(k) type plans by as much as $134 billion by 2034. The rule implements PPA provisions providing relief to plan fiduciaries who invest the assets of participants who do not provide investment direction (such as automatically enrolled workers) in “qualified default investment alternatives” or QDIAs. The QDIAs described in the rule will encourage the investment of employee assets in investment vehicles appropriate for long-term retirement savings. The new default options will be an essential element in the success of automatic retirement plans to help workers achieve retirement security, says the DOL. The rule will ensure that workers in qualified default alternatives are automatically invested in a mix of fixed income, equity and other assets appropriate for long-term retirement savings. A fact sheet detailing the final rule is available at the agency’s Web site. WCC updates info packetThe Workers’ Compensation Commission has posted its newly revised Information Packet. The packet, which carries a revision date of Oct. 25, 2007, includes comprehensive “plain-English” information about Connecticut’s workers’ compensation system, its benefits, and procedures, and contains a number of fillable and sample forms.
Disconnect on why workers leaveEmployees rank stress as the top reason they would leave their company, but it isn’t even among the top five reasons employers cite when asked why employees leave, according to a survey by Watson Wyatt and WorldatWork. Instead, employers name insufficient pay and lack of career development and promotion opportunities as reasons employees leave.
Here are the different perspectives on the top 5 reasons workers leave a company:
The survey also found that employees are more inclined to stay with their company when they are satisfied with stress levels and work/life balance (86% versus 64% when dissatisfied) and more likely to recommend it as a place to work (64% versus 55% when dissatisfied). The pace of modern business is taking its toll on employees, says WorldatWork. There’s no question that employees are more likely to leave or speak badly of their workplace if they feel overburdened. Companies that take steps to ensure that stress levels are not onerous will save money in the long run by reducing attrition.
Worker deaths decline in ConnecticutWork injuries were the cause of 38 deaths in the state during 2006, the Connecticut Department of Labor’s Division of Occupational Safety and Health (CONN-OSHA) reports. The figure represents the second consecutive decline in the number of work-related fatalities, and it brings the number below the state’s annual average of 41. Connecticut also had a fatality rate of 2.2 deaths per 100,000 workers, well below the national average of 3.9 deaths per 100,000 workers. Other highlights from the CONN-OSHA data:
Telecommuting equipment: Proper use, securityAdvancing technology allows easier communication between employees who work in the office and telecommuters who work from home. Telecommuters are able to link to their company’s network and utilize the same Web, e-mail and phone functionality as workers in the office. To protect your company’s equipment and ensure information is secure, see that on-site workers and telecommuters are knowledgeable about the importance of security. Training subjects should include, for example:
It is also important to incorporate procedures and training and set policy for acceptable use so that telecommuters:
Expert consultants from Telecommute Connecticut ( www.telecommuteCT.com) can help you develop policies and procedures for proper use of voice and data communications equipment. Contact Telecommute Connecticut at info@telecommuteCT.com or (800) 255-7433. Telecommute Connecticut is a commuter service of the Connecticut Department of Transportation, provides Connecticut employers with free assistance to custom-design, develop and implement telecommuting best practices for qualified employees. Judge blocks 'no match' ruleA federal judge has issued a nationwide preliminary injunction to stop the government from enforcing a rule outlining the steps employers would take if they received a “no match” letter from the Social Security Administration. The rule was first issued by the Department of Homeland Security (DHS) in August and had been scheduled to go into effect on Sept. 14. A group of unions and business organizations challenged the rule, claiming that DHS had exceeded its authority and failed to follow proper administrative procedures. A court granted a temporary restraining order on Aug. 31, and the preliminary injunction followed on Oct. 10. The latest order means that the no-match rule is blocked indefinitely until the judge makes a final decision, after trial, on whether the rule is legal. In granting the injunction, the judge noted that implementation of the rule would cause “irreparable harm” to innocent workers and employers. Employers can help narrow racial divide in retirement savingsThe 10th annual Black Investor Survey reports that blacks save less money for retirement than whites and are no more likely to be investors today than they were a decade ago. Co-sponsored by Ariel Mutual Funds and the Charles Schwab Corporation, the survey polled 500 blacks and 500 whites earning more than $50,000 annually. The median amount of money saved by blacks was less than half the median amount saved by whites ($48,000 versus $100,000). On a monthly basis, median savings was $182 for Blacks versus $261 for Whites. Employers are crucial to addressing the situation, because most Americans’ first, and sometimes only, exposure to investing is through their workplace, says Schwab. The employer community needs to find ways to get the message out to employees about how to take charge of their finances. The Ariel-Schwab survey was first conducted in 1998, when 57% of blacks said they owned individual stocks or mutual funds compared to 81% of whites. Today, the number of blacks who own stocks or mutual funds is still the same. Over the years black participation rose as high as 74% in 2002, only to fall again, while the figure for whites has consistently hovered within a few percentage points of 80%. $27.5M settles age bias suitUnder a settlement agreement approved by a federal judge, an international law firm will pay $27.5 million to 32 former partners who the Equal Employment Opportunity Commission (EEOC) claimed were forced out of the partnership because of their age. When the EEOC first filed suit against Sidley Austin LLP, a threshold issue in the case was whether the partners were considered employees within the meaning of the federal Age Discrimination in Employment Act. As part of the settlement, the law firm agreed that each person for whom the EEOC sought relief was protected by the act. The $27.5 million will be paid to partners who either were expelled from the partnership in connection with a reorganization or retired under the firm’s age-based retirement policy. The average payment to partners will be $859,375, with the highest payment set at $1,835,510, and the lowest at $122,169. The settlement terms also bar Sidley Austin from taking any adverse action against a partner because of age or maintaining any formal or informal retirement policy that discriminates on the basis of age. The case had been followed closely by the legal community as well as by professional service providers in general. It shows that the EEOC will pursue claims wherever they are found, says the commission, regardless of the relative status of the protected group members or the resources and sophistication of the employer. Bottom line on employee depressionRates of depression among full-time workers are highest in personal care and service jobs and food preparation and serving occupations, according to a report by the Substance Abuse and Mental Health Services Administration (SAMHSA). The report says that 10.8% of personal care and service workers and 10.3% of food preparation and serving workers experienced one or more major depressive episodes in the past year. A major depressive episode is defined as a period of two weeks or longer during which there is depressed mood or loss of interest or pleasure and at least four other symptoms that reflect a change in functioning, such as problems with sleep, eating, energy, concentration and self-image. Overall, 7% of full-time workers faced depression in the past year. While rates of depression were higher among the unemployed and part-time workers, 52.4% of the adults who reported depression were full-time employees. Full-time workers make up more than half of the adult population. Depression exacts a high price from workers and their employers, costing the U.S. workplace an estimated $36.6 billion per year in lost productivity. Employers, workers and their family members need to know effective treatments for depression are available, says SAMHSA. Depression screening, outreach, and enhanced treatment can improve productivity, lower employer costs, and improve the quality of life for individuals and their families. The occupations with the lowest rates of past year depression among full-time workers were engineering, architecture and surveying (4.3%); life, physical and social science (4.4%); and installation, maintenance and repair (4.4%). Workplace injuries dropThe rate of workplace injuries and illnesses in private industry declined in 2006 for the fourth consecutive year, says the Bureau of Labor Statistics. Nonfatal workplace injuries and illnesses reported by private industry employers declined from 4.6 cases per 100 workers in 2005 to 4.4 cases in 2006. The number of nonfatal occupational injuries and illnesses also declined, from 4.2 million in 2005 to 4.1 million in 2006. The dip came against the backdrop that overall hours worked increased by 2%. Among the goods-producing sector of private industry, manufacturing experienced significantly lower rates of illnesses last year — dropping from 66.1 in 2005 to 57.7 per 10,000 workers in 2006. Small establishments (those employing 1 to 10 workers) reported the lowest rate (1.9 cases per 100 workers), while midsize establishments (50 to 249 workers) reported the highest rate (5.5 cases per 100 workers). General medical and surgical hospitals reported more injuries and illnesses than any other industry in 2006—nearly 265,000 cases. Lawsuit over medical release policyOne of the world’s largest auto parts suppliers has been accused of illegally asking its employees for personal medical information and retaliating against those who objected. In a lawsuit filed in federal court, the Equal Employment Opportunity Commission claims that Delphi Corp. has violated the Americans with Disabilities Act since at least 2004 by requiring workers returning from sick leave to sign releases allowing the company to access medical information. An employee said he was fired when he missed two days of work and refused to sign a release that would have let his employer check with his doctor. The employee said he agreed to let the employer verify that he had been unable to work, but would not allow disclosure of his specific medical condition. The lawsuit asks that the company be ordered to refrain from making disability-related inquires that are not job-related and to provide back pay and other compensation to those affected by the medical release practice. Preparing for the fluEach year, 36,000 Americans die from influenza or complications of influenza. In addition, each year there are an estimated 200,000 hospital admissions due to influenza. Each year 5%-20% of the population will get influenza . The best way to prevent the flu is getting an influenza vaccination between October and March. The Centers for Disease Control and Prevention (CDC) reports that U.S. businesses could save up to $12 million dollars annually by providing influenza vaccinations to their employees. The savings come in reduced health care costs and reduced absenteeism. The CDC identifies the following groups as priorities for influenza vaccination:
Sponsoring a flu vaccination clinic in the workplace is as easy as picking up a phone. Providers come to your site and bring all the necessary supplies. You set aside space and help promote the clinic. The provider will bill insurance companies, your business or the employee who gets vaccinated. The state Department of Public Health has prepared a folder with all the information you need to sponsor the clinic, including a list of agencies that will come to your site and a “recipe for planning an employee influenza vaccination clinic.” This year the CDC has designated Nov. 26- Dec. 2 National Influenza Immunization Week. Gov. M. Jodi Rell has proclaimed that week as Influenza Immunization Week in Connecticut. To obtain a folder, or if you have additional questions, contact: Debbye Rosen, Adult Immunization Coordinator at the State of Connecticut Department of Public Health at 860-509-7729 or debbye.rosen@ct.gov. You can also visit the Department of Public Health’s Web site at www.ct.gov/dph and find out more information under “seasonal influenza” in the “featured links section”. It’s not too late to vaccinate. Workers’ comp rates likely to increase in 2008On average, Connecticut employers will see increases in the basic rates affecting their workers’ compensation premiums in 2008, if the state Insurance Department approves the rates proposed this week by the National Council on Compensation Insurance (NCCI). The overall change proposed for policies purchased in the normal, or “voluntary,” market is +3.4%, and for the assigned risk market, +0.5%. If approved, the proposed rates will be effective Jan. 1, 2008 for new and renewal policies. Here are NCCI's proposed rates, by industry:
The Insurance Department plans to schedule a public hearing on the proposed rates within the next few weeks. If you have any questions, contact CBIA's Kia Floyd at 860-244-1900 or floydk@cbia.com. Seven employment cases for high courtThe U.S. Supreme Court opened its 2007-2008 term on Oct. 1 with seven employment cases pending—five discrimination cases, an employee benefits case, and a pay dispute. Four of the five discrimination cases were brought under the Age Discrimination in Employment Act (ADEA). Two of the ADEA cases raise the questions of whether age-based provisions in a state disability retirement plan violate the ADEA and whether the statute permits retaliation claims against federal government employers. The other two ADEA cases involve issues that also come up in other discrimination contexts: the admissibility of “me too” evidence of discrimination by other supervisors and whether an Equal Employment Opportunity Commission intake questionnaire constitutes a charge. The fifth discrimination case asks whether retaliation claims may be filed under the Civil Rights Act of 186, which prohibits race discrimination in contracts. The benefits case was brought under the Employee Retirement Income Security Act and involves a breach of fiduciary duty claim against an employer for not implementing an employee’s chosen 401(k) investment strategy. The final case asks whether the Federal Arbitration Act preempts a California law that gives the state labor commissioner jurisdiction over a contract dispute between a television actior and his manager over compensation. During the past decade, the number of labor and employment cases pending at the start of the court’s term has varied from a high of 14 in October 2001 to none in October 1999.
H-2B cap reachedU.S. Citizenship and Immigration Services (USCIS) says it has received a sufficient number of petitions to reach the congressionally mandated H-2B cap for the first half of Fiscal Year 2008 (FY2008). Under the H-2B program, employers may request foreign workers to fill a one-time, peak load, intermittent or seasonal need for labor when no workers are available in the local work force. September 27, 2007 was the “final receipt date” for new H-2B worker petitions requesting employment start dates prior to April 1, 2008. The “final receipt date” is the date on which USCIS determines that it has received enough cap-subject petitions to reach the limit of 33,000 H-2B workers for the first six months of FY2008. Petitions for workers who are currently in H-2B status do not count toward the congressionally mandated bi-annual H-2B cap. USCIS will continue to process petitions filed to:
Benefit trends for open enrollmentAs this year’s open enrollment season rapidly approaches, the consulting firm Watson Wyatt has identified a number of major health care benefit trends that employees should expect to see. Open enrollment is a much more active process than it was just a few years ago, says Watson Wyatt. With some employers making significant change to their benefits offerings, employees will have to pay closer attention to their options than ever before. Among the trends: Incentives for healthy behaviors. More companies are offering financial incentives to employees who have healthy lifestyle habits or who participate in wellness and fitness programs. According to Watson Wyatt, 46% of employers currently offer economic incentives and another 26% plan to do so in 2008. Full coverage for preventive care benefits. More employers are covering preventive medical care and even preventive drugs at 100% and not subjecting these to a deductible. Often included in these fully paid benefits are vaccinations, exams, and screenings for early diagnosis of, and intervention in, breast, colon, and cervical cancers. Health coaches/onsite health centers. A growing number of employers offer workers access to health coaches and advocates. These experts provide individualized advice to workers on personal health care needs and can educate workers about best care and what questions to ask of their health care providers. More choice to meet individual needs. Employers are offering workers a variety of benefit options to help meet personal and family needs. Some of these options are voluntary benefits, such as homeowners’, automobile and group life insurance, as well as discounts on vision and dental care, massage therapy, chiropractic care, weight-management programs, and fitness club memberships. More communication/more tools. Employers are enhancing their communication with workers and providing online tools to help them evaluate and estimate their health care expenses and needs and manage their personal health care. More health savings accounts/fewer plan options. Employer interest in consumer-directed health plans with health savings accounts (HSAs) continue to grow. Watson Wyatt says that 40% of companies will offer workers an HSA next year. At the same time and in order to reduce administrative costs, employers are cutting back on the number of health plan options they will offer workers. More employers plan to offer a consumer-directed health plan as their only option. NLRB rules against 'salting'The National Labor Relations Board has ruled that an applicant for employment is not protected against discrimination in hiring based on his or her union affiliation unless that applicant is genuinely interested in an employment relationship with the hiring employer. The board explained, “one cannot be denied what one does not genuinely seek.” The case involved the International Brotherhood of Electrical Workers (IBEW) and their use of “salts” -- union supporters who are sent to take a job with a nonunion employer and once hired, attempt to organize the workers. When union members were not hired by a company, the IBEW would follow up by filing hiring-discrimination and other unfair labor charges The presumption that the National Labor Relations Act protects any individual who submits an application is inconsistent with the text and basic purposes of the Act, said the board. Submitting applications to provoke litigation, rather than to seek work, is not protected activity. The case has been returned to an administrative law judge to reconsider claims against the Toering Electric Co. in Michigan in light of the board’s decision.
Workplace fraud costing businessesSix percent of total revenues in American business are lost as a result of fraud and abuse, according to a recent national report by the Association of Certified Fraud Examiners. And it is not just happening at big businesses -- small businesses often are hit hardest by white-collar crime. In fact, the average scheme costs a small business $127,500 in losses. Most frightening is that the persons most likely to commit fraud in the workplace are your most trusted employees:
One mistake business owners commonly make is waiting until after a fraud scheme is revealed to take preventive action. The average fraud scheme lasts 18 months before it is discovered. So, what can you do to prevent fraud in your workplace? CBIA is presenting a free Web seminar, “Protecting Yourself From Fraud in the Workplace” on Wednesday, Oct. 17 at 10 a.m. Don’t wait to take action until it is too late. Find out what you can do to best protect your company and its assets. Hartford pay among highestAverage pay in the Hartford area was 12% above the national average in 2006, according to figures from the Bureau of Labor Statistics (BLS). Among the 78 metropolitan areas studied by BLS, the San Francisco metropolitan area had the highest pay at 19% above the national average. Pay was lowest in the Brownsville, Texas, metropolitan area, where workers earned an average of 78 cents for every dollar earned by workers nationwide. For the report, BLS calculated pay relatives — a means of assessing pay differences — for each of the nine major occupational groups within the 78 metropolitan areas, as well as averaged across all occupations for each area. The calculation controls for differences among areas in occupational composition, establishment and occupational characteristics, and the fact that data are collected for areas at different times during the year. Setting up voice, data systems for telecommutersTelecommuting among Connecticut companies continues to grow – in large part because work has become more portable. Computers and other communication technologies have become more secure, available and reliable. As long as telecommuters can communicate easily with their co-workers, managers, customers/clients and suppliers; they can often work anywhere. The first step in developing a technology implementation plan is to determine what voice and data communication equipment and processes are currently used in your company. Then consider how these technologies would be applied to your telecommute program. Consider the following:
Expert consultants with Telecommute Connecticut can assist you with analyzing your company’s voice and data communications for telecommuting. For more information, contact Telecommute Connecticut at (800) 255-7433 or info@telecommuteCT.com. Telecommute Connecticut ( www.telecommuteCT.com) is a commuter service of the Connecticut Department of Transportation that provides Connecticut employers with free assistance to custom-design, develop and implement telecommuting best practices for qualified employees. Court protects job referencesIn a victory for employers, the Connecticut Supreme Court has extended legal protection to companies that make negative comments about a former employee when contacted by a prospective employer. The case involved a security officer at the University of New Haven who sued for defamation after her former supervisors made unfavorable comments about her work to municipal police departments where she had applied for jobs. Addressing the issue for the first time, the court recognized a “qualified privilege” for references given out with an employee’s consent and made without “improper motive.” This means, said the court, that an employee must have proof that the employer actually intended to prevent the employee from securing employment. With the ruling, Connecticut joins dozens of other states that have adopted a qualified privilege for references either judicially or by statute. Workers split on pay satisfactionForty-eight percent of American workers say they are well paid for the job they do but 46% say they are not, according to a survey by Express Personnel Services, an international staffing and human resources company. The survey included a cross-section of business owners, managers and employees in a variety of industries throughout the U.S. In general, survey respondents who said they are paid adequately are age 45 and older, hold upper management job titles or own their own business, and have been with their current company six years or longer. Respondents who believe they are not paid adequately are between the ages of 25 and 35, hold an associate’s degree or have some college experience, hold middle management or salaried positions and have been with their current company five years or less. Maximum WC rate changes 10/1The Workers’ Compensation Commission has announced that the maximum benefit for total disability and decedent’s dependents will go to $1,077 for injuries occurring on or after October 1, 2007, up from $1,038. The maximum benefit for partial disability (incapacity) will go to $853, up from $816. The total disability rate is equivalent to the average weekly earnings of all employees in Connecticut as determined by the State Labor Commissioner. The rate for partial disability is equivalent to the average weekly earnings of production and related workers in manufacturing in Connecticut.
Max UI comp benefit also risesOn Oct. 7, the maximum unemployment insurance (UI) compensation benefit increases to $501 per week. The annual revision of the maximum weekly unemployment benefit is based on average manufacturing wages for the year ending June 30, 2007.
$1M in unpaid wages for Katrina workersFollowing an investigation by the U.S. Department of Labor’s (DOL) Wage and Hour Division, two subcontractors have agreed to pay almost $1 million in back wages to nearly 400 workers who helped in Hurricane Katrina disaster recovery efforts. The DOL found that the workers were not properly paid as required by the Fair Labor Standards Act (FLSA), the Service Contract Act (SCA), and the Contract Work Hours Safety Standards Act (CWHSSA). L & R Security, Inc. provided armed security at Federal Emergency Management Agency (FEMA) trailer sites in New Orleans. The DOL determined that the company, from August 2005 to July 2006, paid straight time for overtime hours worked by guards on both federal and non-federal contract jobs, in violation of the CWHSSA and the FLSA. The subcontractor also failed to pay the prevailing wage rate and fringe benefits required by the SCA. L & R has agreed to pay $185,385 in back wages to 239 workers. In addition, the DOL has assessed a civil penalty of $37,620 for repeating similar past violations. The investigation of HKA Enterprises, which provided debris removal monitoring in New Orleans after the hurricane under a FEMA contract, covered the period from October 2005 to July 2006. The DOL determined that the company paid workers straight time for overtime hours worked, in violation of the FLSA. HKA has agreed to pay $756,152 in back overtime wages to 143 workers. L & R is headquartered in New Orleans; HKA is headquartered in Duncan, South Carolina. Both companies were subcontractors to the prime contractor, CH2M Hill of Englewood, Colorado.
New bosses sink or swimAlmost everyone has a “bad boss” story, but a new survey suggests that these “bad bosses” may not be to blame -- chances are, they never got the training they needed. The study by the Institute for Corporate Productivity (i4cp) found that, of the 338 companies polled, nearly half (47%) do not have a training program for new supervisors. And even where they do, most companies don’t measure the programs’ effectiveness. Companies know they should do better in this area, says i4cp, but the bottom line is that companies are moving faster than ever and the U.S. is experiencing talent shortages. Many workers are given supervisory jobs they didn’t expect and are just “thrown out there,” says i4cp. It’s not surprising that so many wind up floundering. For the organizations that already have a supervisory training program, 77% consider it important enough to make it mandatory, and most pour considerable resources into it. Of those companies conducting training for new supervisors, 83% do so for nine hours or more hours. The most common subjects include introducing managers to management ad leadership principles and providing them with practical knowledge of the company’s policies and procedures. The study also found that 45% of the companies without a training program plan to implement one within the next 12 months.
Three million contract workersThe American Staffing Association (ASA) reports that the U.S. staffing industry employed nearly three million workers per day in the second quarter of 2007, setting a new record high in second quarter employment. Average daily employment in the April-May-June period involved 3,000 more workers than in the second quarter of 2006, a .1% increase. On a quarter-over-quarter basis, staffing employment performed stronger, with 4.8% more workers employed in the second quarter of this year than in the first. Temporary help sales totaled $18.5 billion, 2.3% higher than in the second quarter of last year and 5.9% higher than in the first quarter of this year. This year’s second quarter sales growth reverses a year-long trend of market deceleration, says ASA, but remains far from the double-digit growth rate of three years ago.
$8.7M in unpaid wagesThe Connecticut Department of Labor’s Division of Wage & Workplace Standards recovered a record $8.7 million in unpaid wages for Connecticut workers during fiscal year 2006-2007, according to the governor’s office. The department recovered $3.2 million after investigating 3,449 complaints from workers who claimed they were not paid wages owed to them. Another $1.9 million was recovered by enforcing the state’s prevailing wage laws, while investigators returned an additional $1.7 million to workers who either were not paid the minimum wage or were not paid for overtime work. The department also collected $1.9 million in back wages owed to service workers who were hired under state contracts to do jobs on state property. Gov. Rell commended employees in the Wage & Workplace Standards Division for their ability to successfully investigate wage-related complaints while promoting healthy business relationships through the use of proactive outreach and education efforts. The unit handled more than 25,000 telephone calls and written inquiries during the past fiscal year and issued more than 1,000 citations for child labor violations. Staff also investigated approximately 70 complaints that alleged violations of the Family and Medical Leave Act. (Still time to register for CBIA’s annual Wage and Hour Conference on Sept. 18) Top 5 industries for recent gradsMonsterTRAK, the student division of Monster Worldwide, has named the top five industries for entry-level employment based on the number of opportunities posted to the Web site over the last year. Business operations, human resources and financial services, considered together as an industry, topped the list, offering nearly one-fourth of all job opportunities for entry-level workers. This industry category includes jobs in accounting, financial analysis and research, management and administration, and human resource and labor relations. Yet MonsterTRAK says many of the people who will take open positions in this industry will lack business or math-related majors. Applicants with unconventional majors and experiences can offer new expertise and skills sets to a job, giving employers the chance to build a well-rounded staff. Other top industries included: sales and marketing, with brand and product marketers representing the most rapidly growing segment; architecture and engineering; computer, information technology and mathematical, the industry with the most growth among the top five; and office, administrative and customer support. Proposed rules on underfunded pension plansThe Internal Revenue Service has issued proposed regulations providing guidance on new requirements — enacted as part of the Pension Protection Act of 2006 — that restrict benefits in pension plans that are underfunded. The restrictions on benefits will apply next year to underfunded plans under section 436 of the Internal Revenue Code. The proposed regulations also include guidance under section 430(f) of the Code regarding the treatment of an employer’s contributions in excess of the minimum required contribution for a plan year that results in a credit or funding balance. The Pension Protection Act generally requires such a balance to be excluded in determining a plan’s funded percentage for purposes of applying the limitations of section 436. The proposed regulations will apply to plan years beginning after Dec. 31, 2007, and can be relied on for qualification purposes pending the final regulations. When final, the regulations will affect sponsors, administrators, participants, and beneficiaries of single-employer defined benefit pension plans. Latino workers make wage gainsForeign born Latino workers saw notable progress in terms of wages between 1995 and 2005, according to an analysis of Census Bureau data by the Pew Hispanic Center. The study found that the proportion of foreign-born Latino workers in the lowest quintile of the wage distribution decreased from 42% in 1995 to 36% in 2005, while many workers moved into the middle quintiles. Newly arrived Hispanic workers also were much less likely to be low-wage earners in 2005, in part because they were older, better educated and more likely to be employed in construction than in agriculture. Yet despite the progress, many foreign born Latinos remain low wage earners, the study showed. Even though the share of Latino workers at the low end decreased, in absolute numbers this population grew by 1.2 million between 1995 and 2005. Drug-free work weekOctober 14-20 is national Drug-Free Work Week 2007, and the U.S. Department of Labor (DOL), which heads the observance, is encouraging employers and workers to participate. The purpose of Drug-Free Work Week is to highlight the fact that being drug-free is key to protecting workplace safety and health and to encourage workers with alcohol and drug problems to seek help, says DOL.
Ideas range from training supervisors to recognize the signs of substance abuse to offering health screening, distributing payroll messages, and allowing employees time to volunteer in community drug prevention efforts. Salary increases hold steadyWorldatWork reports in its annual Salary Budget Survey that the average overall salary budget increase for 2007 rose slightly to 3.9% across all employee categories, regions, and industries. The report indicates that most U.S. companies are planning to hold the line next year, with the average 2008 salary budget increase expected to remain at 3.9%. Salary budget increases have risen one-tenth of a percent each year since 2004, says WorldatWork. Salary budgets do not include other employment hard costs, i.e., medical/dental insurance, payroll taxes, 401(k) match, etc. Base pay increases may come from merit increases, cost of living increases and general increases, but do not include promotional increases. Washington, D.C. employers reported the highest total salary budget increase (4.1%) of all metro areas surveyed. The biggest increase from 2006 to 2007 (3.7 to 4.0%) occurred in Houston. Note: CBIA will be e-mailing our annual salary budget survey to member companies in the next few days. The results of this study will provide data on the merit increase and pay administration practices of Connecticut companies. The final data will also include information on projected merit increases. If you would like to participate in this survey and have not received the link by 9/15/07, please email Phillip Montgomery at montgomp@CBIA.com Final rule on 'no match' lettersThe Department of Homeland Security has issued final regulations that outline the steps an employer must take upon receiving a “no match” letter from the Social Security Administration (SSA). These letters let an employer know that an employee’s name and Social Security number provided on a W-2 form do not match the agency’s records. Under the new rule, effective mid-September, the SSA letter will now be accompanied by a letter from Homeland Security telling employers how to respond in order to comply with U.S. immigration laws. Steps an employer must take include:
Employers who make a good-faith effort to follow these steps will have a “safe harbor” against liability for employing unauthorized workers. Pension plan freezes slowingThe rate of pension plan freezes has slowed, and the majority of companies with defined benefit plans are committed to keeping them, according to two new studies by Watson Wyatt Worldwide. An analysis of pension plan sponsorship among FORTUNE 1000 companies shows that the share of plan sponsors freezing their plans dropped from 7% in 2006 to 4% in 2007. New freezes reached their highest levels in 2005, when 42 additional firms on the FORTUNE 1000 list had frozen plans. Some companies will undoubtedly freeze their pension plans in the future, but it appears that trend has peaked, says Watson Wyatt. In addition, a Watson Wyatt study of 300 organizations with pension plan assets of more than $100 million found that 59% of companies that have a defined benefit plan which is open to new hires have made a formal decision to keep their plans open. The remainder did not say whether they had made a formal decision about their plans. Tax credit proposed for wellness programsU.S. Senators Gordon Smith (R-OR) and Tom Harkin (D-IA) have introduced legislation that would provide a tax credit to employers that offer employee wellness programs. The Healthy Workforce Act of 2007 (S.B. 1753) allows a tax credit of up to $200 per employee for the first 200 employees, and up to $100 per employee thereafter, to employers that offer a “qualified wellness program.” A qualified wellness program is one that includes any three of the following components:
The tax credit would be available to an eligible employer for 10 years.
$20M resolves race caseWalgreens has agreed to pay $20 million to settle a race discrimination suit filed against the national drugstore chain by the Equal Employment Opportunity Commission (EEOC). The EEOC had claimed that Walgreens discriminated against African American retail management and pharmacy employees in promotion, compensation and assignment. In addition to the monetary relief for an estimated 10,000 class members, the settlement terms also prohibit store assignments based on race. The settlement is subject to final approval by a federal judge. Walgreens had denied all of the EEOC’s allegations, but agreed to the settlement to avoid protracted litigation. The agency commended Walgreens for working to reach an amicable resolution of the case, saying the outcome was a satisfactory one for all parties. Sales compensation re-design: Too soon for ‘08?Sales compensation is probably the most challenging area of compensation because of the number of interested parties. Recently, David Cichelli, a nationally recognized expert on sales compensation, shared his thoughts on conducting a comprehensive annual review of compensation plans. Q: Some sales executives are constantly tinkering with the sales compensation program; others feel few changes are best. What’s the right answer? A: Neither is really correct. Sales departments are all about alignment, alignment between customers and product divisions. Both of these variables — for most companies — are in transition. A sales department is constantly fighting to maintain this alignment and thus avoids slipping in to obsolescence—the opposing force to alignment. The sales compensation program helps enforce this alignment. Thus, once a year, a sales department needs to check its “rigging” to ensure the sales compensation program is retaining the sales force and motivating the right types of sales behavior. Q: I have heard you say that “tweaks” are bad, but “minor changes” are acceptable. What’s the difference? A: A “tweak” is best described as a “noncontextual” change made outside a comprehensive design process. It’s these“ tweaks” that can cause unanticipated glitches in the compensation plan. Minor changes are acceptable as long as all elements of the sales compensation program are reviewed by a cross-functional team of sales, marketing and finance management. Q: Who owns the design of the sales compensation plan? A: In our annual survey of sales compensation trends, the results have remained pretty consistent year after year. For 45% of the companies, sales management “owns” sales compensation redesign. Twenty-five percent use a cross-functional team. And 24% assign their design task to HR. The remaining 5% are divided between finance and marketing. My preference: I like the idea of a cross-functional design team. It seems to work best. Q: What’s the biggest mistake companies make with their sales compensation plan? A: Sales compensation offers many trap doors to fall through, but the most common and negative mistake is using too many performance measures. The rule of “no more than three” is the best advice. And, these three or fewer measures should be related to sales results of the seller. The following measures should be avoided: corporate or division measures, compliance measures and activity measures. Q: If a company’s fiscal year begins Jan.1,2008, when should it start its re¬design process? A. Begin your re-design effort at the start of September. Give your self one month to assess the current plan, one month to do the design work and the rest of the year to document, update your automation support and communicate the program to the field. David Cichelli is senior vice president of The Alexander Group, one of the nation’s leading consulting firms in the area of sales compensation. He can be reached at dcichelli@alexandergroupinc.com. BLS reports drop in work fatalitiesThere were 5,703 fatal work injuries in the U.S. in 2006, down slightly from the revised total of 5,732 fatalities in 2005, according to the annual Census of Fatal Occupational Injuries from the Bureau of Labor Statistics (BLS). The overall rate of fatal work injuries in 2006 was 3.9 per 100,000 workers, the lowest since the fatality census was first conducted in 1992. The fatality rate for 2005 was 4.0 per 100,000 workers. Other key BLS findings:
Of the 5,703 fatal work injuries in 2006, 5,202 occurred in private industry. Service-providing industries in the private sector accounted for 47%, while private goods-producing industries accounted for 44%. Government workers accounted for 9% of fatalities in 2006. The fatality rate for goods-producing industries was unchanged in 2006, while the fatality rate for service-providing industries and for government were both lower. Construction accounted for 1,226 fatal work injuries, the most of any industry sector and an increase of 3% over 2005. Fatalities among specialty trade contractors rose 6%, from 677 fatalities in 2005 to 721 in 2006, due primarily to higher numbers of fatal work injuries among building finishing contractors and roofing contractors. Fatalities in building construction and in heavy and civil engineering construction decreased in 2006. Twenty-seven states reported higher numbers of fatalities in 2006, and 23 states and the District of Columbia had lower totals. Texas recorded the highest number of fatalities of any state (486), followed by California (448) and Florida (355). BLS says the reported numbers are preliminary and will be updated in April 2008. House approves 'Fair Pay' legislationThe U.S. House of Representatives has approved legislation that would overturn a recent Supreme Court decision on pay discrimination and make employers more vulnerable to claims — possibly years after the discrimination allegedly occurred. The Ledbetter Fair Pay Act of 2007 (H.R. 2831) was introduced following the recent U.S. Supreme Court ruling that the deadline for filing a pay discrimination complaint is 180 days from the date the pay decision is first made and communicated to the worker. The employee plaintiff in the case had argued that the clock on that 180 days restarted each time she received a paycheck reflecting the discriminatory pay decision. The legislation would amend Title VII of the Civil Rights Act of 1964 to specify that pay discrimination occurs when “an individual is affected by application of a discriminatory pay compensation decision or other practice, including each time [emphasis added] wages, benefits, or other compensation is paid.” By substantially relaxing the statute of limitations for claims, H.R. 2831 would make it much harder for employers to anticipate and resolve cases. H.R. 2831 also would:
President Bush has said he would veto the act if Congress passes it. Nationwide ADA class actionA federal judge has certified a nationwide class action challenging the return-to-work practices for United Parcel Service (UPS) employees who have been out on medical leave. An early estimate of the potential number of class members is more than 36,000 current and former employees. The judge has authorized the workers to proceed with claims that UPS discriminates against employees with disabilities and refuses to accommodate them in violation of the Americans with Disabilities Act (ADA). According to affidavits from UPS managers, the company requires workers to present a full medical release, with no permanent restrictions, in order to return to work following an injury or long term illness. Employees also submitted evidence that UPS uses job descriptions that fail to describe the essential functions of specific jobs. And in some cases, say the employees, UPS has retaliated against workers who requested accommodations. UPS plans to appeal the certification ruling.
Workers struggle with health care termsFewer than half of workers are comfortable explaining common health benefit terms, such as co-pay or deductible, to a friend or co-worker, according to a survey by Watson Wyatt. And fewer than 25% feel comfortable describing health savings accounts, coinsurance and terms such as formulary and center of excellence. In the survey of nearly 2,100 covered workers, 43% also said they have trouble understanding what their health care plan covers. It’s hard for employers to ask employees to take more responsibility for their health care when they are not speaking the same language, says Watson Wyatt. Helping employees improve their health care literacy can make or break a company’s overall health care efforts. The survey also found that most workers want to receive communications about their health care benefits in print. When asked to rate several delivery channels, employees preferred print materials, followed by the Internet and face-to-face meetings. More Americans working into older ageThe Employee Benefit Research Institute (EBRI) reports that the U.S. workforce over age 55 is growing, driven almost exclusively by an increase in the number of female baby boomers joining the employed. The trend is likely to continue, says EBRI, as workers face more responsibility for paying their own retirement expenses and are increasingly expected to cover their own health insurance in retirement. According to EBRI, labor force participation among women ages 55 to 64 increased from 57.1% in 1993 to 66.7% in 2006. For men in that age group, participationdipped from 78.3% in 1993 to 77.7% in 2006. Among those age 65 and older, however, more men than women joined the workforce during the same period. EBRI also found that the labor force participation rate for older workers increases as the level of education increases. Tattoos hinder job searchEmployees are starting to understand that visible tattoos and body piercings can hinder a candidate’s chance of getting the job. In a survey by career Web site and publisher Vault.com, 85% of online respondents said that their employers consider body decoration objectionable, a big jump from the 19% who responded that way in 2001. Regardless of the true character of an employee, said one respondent, stereotypes associated with piercings and tattoos can and do affect others. In general, individuals with body decoration are often viewed as “rougher” or “less educated.” Forty nine percent of the respondents said that their company had no policy on tattoos and piercings, while another 35% said they were unsure whether their company had such a policy. Only 2% indicated they had been fired or disciplined because of their body art. Nonetheless, most employees with tattoos said they conceal them when at work. About 40% of the respondents reported having at least one tattoo and about 20% had at least one piercing, apart from pierced ears. CBIA CT-SHRM CollaborationOn Wednesday, September 19, 2007, there will be a Legislative Update dinner meeting/presentation at the Crowne Plaza, Cromwell with the law firm of Jackson Lewis, hosted by two Connecticut SHRM chapters – HRACC (Greater Hartford) and HRLA ( Eastern Connecticut). More information, or to register. CBIA is working with the Connecticut HR SHRM State Council in our continuing effort to bring to you valuable information and resources of interest to your profession. As a Human Resources professional -- or even if HR is just one of several areas in which you are expected to be an expert -- you should consider joining one of the seven local SHRM chapters in Connecticut in addition to your CBIA company membership. For more information about the Connecticut SHRM State Council, including local chapter contacts, go to: http://www.ctshrm.org/ Together, CBIA and CT SHRM offer you statewide and local HR and business-related resources.
Y offers adult reading programThe Greater Hartford YMCA has designed a literacy education program to assist adults with poor reading and spelling skills, with special help for those with a reading disability such as dyslexia. The Y’s Read to Succeed Program offers a reading assessment to adults to help them understand their literacy skills, weaknesses and goals, and provides classroom training and other support services. Adult students typically attend classes two hours per day four days per week during morning or evening hours. The lessons are self-paced and provided in a 1:1 setting by certified teachers and specially trained volunteer tutors. According to the program, about one in five people has a reading disability. They cannot read the newspaper, street signs, or work instructions, or help withhomework or read health or prescription information. The Y reports that its average student enters the program reading and spelling at an elementary or sub-average reading level, but graduates at or above adult level. For more information, contact the program at 860-522-9622 or e-mail them at karen.theroux@ghymca.org.
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