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HR News Archive

From previous editions of CBIA's HR E-News

December 2008

November 2008

October 2008

 

September 2008

August 2008

 

July 2008

June 2008

May 2008

April 2008

March 2008

 

February 2008

DOL proposes FMLA changes

Bored workers more damaging

Change in travel documents

EEOC's anti-bias spots

NY finds misclassified workers

EBSA guidance on wellness program rules

How to build a 21st century skilled workforce

CBIA can set up onsite training at your facility

New military FMLA law

Proposal on section 529 tuition programs

Survey: Fewer workers would date co-worker

Signing bonuses for college grads

Time to post injury summary

CBIA can set up onsite training at your facility

What to do about personnel problems in Connecticut

January 2008

 

USCIS revises I-9 form

U.S. Citizenship and Immigration Services (USCIS) has announced an interim final rule that revises the Employment Eligibility Verification Form (Form I-9) to narrow the list of acceptable identity documents. The rule also specifies that expired documents are not considered acceptable forms of identification.

An expansive document list makes it more difficult for employers to verify valid and acceptable documents, says USCIS. It also makes it hard to single out false documents that compromise the security of the Form I-9 process.

The list of approved documents that employees can present is divided into three sections:

  • List A -- documents that verify both identity and eligibility to work
  • List B -- documents that verify identity only
  • List C -- documents that verify eligibility to work only

The rule eliminates Forms I-688, I-688A, and I-688B (Temporary Resident Card and older versions of the Employment Authorization Card/Document) from List A. USCIS no longer issues these cards, and all that were in circulation have expired.

It also adds the new U.S. Passport Card to List A. and makes other technical changes to the Form I-9.

USCIS submitted the rule to the Federal Register on Dec. 11, 2008. Beginning 45 days after publication, employers must use the revised I-9 for all new hires and to reverify any employee with expiring employment authorization.

 


$20M ends sex bias suit over male applicants

A national weight-loss chain has agreed to pay $20 million to settle a sex discrimination lawsuit filed by the Equal Employment Opportunity Commission (EEOC) claiming that the chain refused to hire qualified male applicants.

According to the EEOC’s lawsuit, the company had a nationwide policy of not hiring males into the positions of counselor/sales, medical assistants, assistant managers, area supervisors, and trainers. The agency also claimed that a female trainer was disciplined and fired in retaliation for complaining about the company’s exclusionary policy.
The $20 million — nearly $17 million in back wages and $3 million in punitive damages — is payable to men whom the EEOC determined were subjected to hiring discrimination from Jan. 1997 to the date of the settlement agreement. The female trainer had settled the retaliation charge with the chain in 2005. Along with the monetary relief, the agreement also:

  • Prohibits the company from discriminating against job applicants or employees because of sex and from retaliating against any of its employees
  • Requires the company to use an electronic applicant tracking system for each person hired and for any person who submits an application, and to provide specific
  • Mandates the chain to create a discrimination complaint procedure, post its commitment to equal opportunity and a diverse workforce, and report compliance to the EEOC

In addition, the company has agreed to hire the rejected male applicants and to conduct quarterly reviews to assess progress in meeting specified hiring and promotion goals. At the EEOC’s option, the company can be required to have an outside expert examine its hiring process and assist in any unmet goals

 


Workers take steps to reduce medical costs

In today's tough economy, rising health costs are causing more workers to curtail their own spending on medical care, according to an annual survey by Watson Wyatt.

Key findings from this year’s Employee Perspectives on Health Care:

  • Nearly one-fifth (19%) of employees are willing to pay more money out of their paychecks in order to keep health costs low and predictable. This is a marked difference compared with results from 2007, when twice as many employees were open to higher premiums for more certain health care.
  • Two-thirds of employees are trying to take better care of themselves. However, this year more employees are also taking actions — such as missing doctor’s visits or skipping doses of medication — that might lead to higher expenses down the road
  • A vast majority of employees (85%) say they have a primary care physician, which is a key to preventive care, while 76% say they get preventive screenings.
  • Financial incentives are still the most effective way to encourage participation in health-related programs. More than half (52%) of employees respond enthusiastically to financial incentives that are targeted to their needs by demographic, job or condition.

For more findings: http://www.watsonwyatt.com/news/press.asp?ID=20212

 


DOL contacts 18,000 on UI extension

Gov. Rell has announced that the state Department of Labor (DOL) has begun notifying more than 18,000 unemployed people that they may be eligible to extend their federal unemployment benefits seven more weeks.

The governor said the DOL has mailed letters to individuals who have exhausted the initial 13 weeks of federal compensation authorized this past summer. The letters provide instructions on how to apply for the seven-week extension.

The DOL is expediting claims by extending call center hours from 7:45 a.m. to 6 p.m., opening an Emergency Resource Center with staff dedicated to answering questions on the federal extension, and temporarily hiring additional workers.

State Labor Commissioner Patricia Mayfield said people should wait for their letters of notification to arrive before calling the agency. She also said that claims will be processed faster if individuals file using the DOL’s Web site.

For more information: http://www.ctdol.state.ct.us/messages/EUC08-Q%26A.htm


Lower mileage rate for 2009

The Internal Revenue Service (IRS) has set the optional employee mileage reimbursement rate at 55 cents per mile for business miles driven, beginning January 1, 2009.

The new business rate is slightly lower than the rate for the second half of 2008, which was increased by a special mid-year adjustment in response to a spike in gasoline prices. The rate was 50.5 cents in the first half of 2008 and 58.5 cents in the second half.

Still, the mileage rate for 2009 reflects generally higher transportation costs compared with a year ago, says the IRS, as well as the recent decrease in gasoline prices.

The business rate covers use of an automobile, van, pickup, or panel truck.

 


Top excuses for skipping flu shot

Forty-five percent of Americans plan to skip the flu shot this season, according to a national survey of more than 2,000 adults by the Consumer Reports National Research Center. And parents who avoid flu shots themselves seldom get their kids vaccinated, the survey found, even though the Centers for Disease Control and Prevention now recommends that everyone age six months and over get the shot each year.

Why skip the flu shot? Survey respondents offered a variety of reasons, saying they:

  • Don’t get sick (45%)
  • Have themselves or know someone who has gotten sick from the vaccine (41%)
  • Are worried about the side effects (35%)
  • Don’t like getting shots (27%)
  • Don’t like going to the doctor (23%)
  • Don’t have the time (16%)
  • Would rather get sick than go to work (5%)

On the other hand, ...

Respondents who said they will get a flu shot the shot offered ideas that should help persuade some abstainers to change their minds. Flu-shot recipients said the vaccine is:

  • Convenient -- 50% said they got or plan to get the shot at some place other than their doctor’s office, including their workplace, (24%), a walk-in clinic (14%), or a pharmacy (7%).
  • Cheap -- For 65% of the respondents, the flu shot was free, in part because Medicare now covers it entirely. For those who did have to pay, 90% paid less than $30.

 


Legislation extends UI benefits

President Bush has signed a $6 billion measure (H.R. 6867) further extending unemployment insurance (UI) benefits nationally for workers who have exhausted their benefits.

The law expands the current Emergency Unemployment Compensation (EUC) program to provide an additional seven weeks of benefits. It also provides an additional 13 weeks of benefits for workers in states with high unemployment rates, defined as 6% or higher, for a total of 20 weeks.

Bush signed the EUC extension in June. It added 13 weeks of UI benefits, but did not include a provision on states with high unemployment rates. Both extensions expire in March 2009.

 


IRS spins tax benefit for bicycle commuters

Employers will soon have a new way to 'pedal' some benefits to employees who are "going green."

Beginning Jan. 1, 2009, employees who commute to work by bicycle may be reimbursed on a tax-free basis for reasonable expenses incurred for the purchase of a bicycle, bicycle improvements, and repair and storage.

The new bicycle commuter benefit allows an employer to reimburse an employee a maximum of $20 per month for each month in a year that the employee uses the bicycle regularly for travel between the employee’s residence and the place of employment. An employee may not receive the bicycle commuter reimbursement in any month in which the employee receives any other qualified transportation fringe benefit, such as a transit pass or qualified parking.

For more details: http://www.groom.com/documents/bicyclearticle.pdf .

 


Female CEOs get higher base pay, lower total comp

Female chief executive officers (CEOs) receive higher base salaries than male CEOs, according to a study by the Corporate Library.

But when cash bonuses, perks and stock compensation are added to the mix, the total pay package for female CEOs is only 85% of their male counterparts.

While the study found that female CEOs were paid 103% of median male CEO base salary, the median total compensation for females was $1,746,000 compared with $2,049,000 for male CEOs. The differential worsens for female CEOs of the largest companies, whose earning power is less than two-thirds of their male counterparts.

The study’s authors even adjusted the pay figures for company size, performance, industry and the individual's tenure, but none of these influences could fully explain the differential. However, less than 3% of the CEOs surveyed were women, say the authors, so it’s possible that the small sample could be affecting the findings.

 


Attract skilled employees with disabilities…offer telecommuting

People with disabilities may be an untapped source of talent and experience that your business needs. Telecommuting is a great way to attract these employees, says Telecommute Connecticut, a commuter service of the Department of Transportation.

A telecommuting program also provides a way to meet accommodation requirements for all of your employees with disabilities, including new hires, injured workers, and employees returning from military duty with service-related disabilities.

For many people with disabilities, the availability of telecommuting presents the possibility of an accessible, barrier-free workplace, flexible scheduling and the elimination of disability-related bias or discrimination. For example:

  • Individuals can work from their own homes, which usually have the accommodations and modifications that the person with a disability needs, such as accessible restrooms, adjustable tables, computer or phone adaptations and possibly assistance from an aide or family member.
  • A flexible schedule can mean individual freedom to stop and start according to what works best, particularly if the employee’s disability requires more or longer breaks, regular treatments or therapies, etc.

Telecommute Connecticut can help you develop a telecommuting program that meets your specific business needs and the needs of employees with disabilities. Their consulting services are free of charge to employers. For more information, visit www.telecommuteCT.com or phone 1-800-255-7433.


Final FMLA rule issued

 The U.S. Department of Labor (DOL) has published a final rule updating its Family and Medical Leave Act (FMLA) regulations and addressing new entitlements for military family members. The new regulations take effect Jan. 16, 2009.

The new military family leave provisions:

  • Military caregiver leave. The law expands FMLA protections for family members caring for a covered service member with a serious injury or illness incurred in the line of duty or on active duty. These family members are able to take up to 26 workweeks of leave in a 12 month period.
  • Leave for “qualifying exigencies.” The law allows families of National Guard and Reserve personnel on active duty to take FMLA job-protected leave to manage their affairs –“qualifying exigencies.” The rule defines the term as: (1) short notice deployment; (2) military events and related activities; (3) childcare and school activities; (4) financial and legal arrangements; (5) counseling; (6) rest and recuperation; (7) post-deployment activities; and (8) additional activities where the employer and employee agree to the leave.

Other significant changes:

  • Waiver of rights . The DOL has finalized its longstanding position that employees may voluntarily settle their FMLA claims without court or departmental approval. However, prospective waivers of FMLA rights will continue to be prohibited.
  • Serious health condition . While the rule retains the six individual definitions of "serious health condition," it adds guidance on some regulatory matters. First, it clarifies that if an employee is taking leave involving more than three consecutive calendar days of incapacity plus two visits to a health care provider, the two visits must occur within 30 days of the period of incapacity. Second, it defines "periodic visits to a health care provider" for chronic serious health conditions as at least two visits to a health care provider per year.
  • Light duty . At least two courts have ruled that an employee uses up his or her 12-week FMLA leave while on a "light duty" assignment. Under the final rule, time spent in "light duty" work does not count against an employee's FMLA leave entitlement, and the employee's right to job restoration is held in abeyance during the light duty period. If an employee is voluntarily doing light duty work, he or she is not on FMLA leave.
  • Perfect attendance awards : The final rule changes how perfect attendance awards are treated to allow employers to deny a "perfect attendance" award to an employee who does not have perfect attendance because he or she took FMLA leave — but only if the employer treats employees taking non-FMLA leave in an identical way.
  • Employee notice . The final rule modifies the current provision that had been interpreted to allow some employees to notify their employers of their need for FMLA leave up to two full business days after an absence, even if they could provide notice sooner. Under the final rule, the employee must follow the employer's normal and customary call-in procedures, unless there are unusual circumstances.
  • Medical certification process. The final rule allows an employer to contact the employee’s health care provider directly, with the employee’s permission, to clarify or authenticate the medical certification. In response to medical privacy concerns, the rule adds the requirement that the employer’s representative must be a human resource professional, a leave administrator, or a management official, but not the employee’s direct supervisor. If the employee will not agree to let the employer contact the healthcare provider and does not resolve the unclear medical certification, then FMLA leave may be denied.


PROGRAM NOTE: Don’t miss the first HR Council meeting of the New Year….The Family and Medical Leave Act: Complying with an Evolving LawTuesday, Jan 27, 2009, in Hartford. To register or for more details: http://www.cbia.com/training/genbus/hr_council_20082009.htm

 


Survey: They're sticking with the job

Nearly half (46%) of middle managers polled by Accenture Ltd believe taking a new job in the current economic environment is risky.

In the online survey of more than 300 U.S. managers, 66% said they would consider taking a new job but are not actively looking, while only 13% said they are actively looking. More than one-quarter (27%) are taking steps to improve the security of their jobs by working harder or longer hours.

The survey also found that more than two thirds (68%) of middle managers believe their companies could do more to help employees cope with the weak economy. Telecommuting (26%) and four-day workweeks (24%) are the suggestions cited most often.

Some employers are already responding to the economy by finding new ways for employees to work. Nearly one third (29%) of the managers said their employers offer flexible schedules, four day workweeks, telecommuting and transportation subsidies.

 


Nearly $1M to settle retaliation suit

A preparatory school has agreed to pay $950,000 to settle lawsuit claims that it fired a male employee for voicing concern about unequal pay for women.

In the case, a jury had reached a unanimous verdict after hearing testimony that proved the employee was fired in retaliation for opposing sex-based wage discrimination. The jury awarded back pay of $50,000, front pay of $50,000 and compensatory damages of $500,000. While the jury was still deliberating the matter of punitive damages, the parties agreed to settle for a total of $950,000.

The employee was working at the prep school as chair of an accreditation study when he noted that males were being paid more than females with similar education and work history. He requested information from the school regarding possible pay inequities and was fired soon after.

Retaliation charge filings with the Equal Employment Commission (EEOC) totaled 26,663 in Fiscal Year 2007, up 18% from the prior year to a record high level and double the number of retaliation filings in FY 1992. Retaliation is now the second most frequent filing with EEOC offices nationwide.

 


27% of workers say they’ve faced bias

More than one in four American workers—27%—say they have encountered employment discrimination, according to a survey by FindLaw.com, a legal information web site.

The survey asked 1,000 adults if they believe they have ever experienced discrimination by an employer in job interviews, hiring, pay or promotions. Of those who said they have, the most frequently cited forms of discrimination involved race, age and gender:

  • 42% of African American respondents said they have experienced racial discrimination.
  • 15% of respondents age 45 and older said they have encountered age discrimination in the workplace. Younger workers also believe they have been discriminated against on the basis of age, with 13% of respondents 18 to 24 saying so.
  • 10% of women said they have experienced gender discrimination.

The survey also found that while racial discrimination was highest in the South, age, gender and religious discrimination were most likely to occur in the Midwest.

 


North Branford resident charged with WC fraud

A North Branford resident has been arrested and charged with one count of Workers’ Compensation Fraud, a felony carrying a maximum prison term of 20 years.

According to the arrest warrant affidavit, the individual reported a work-related injury on July 20, 2005 while employed by Yale University as a plumber. He received more than $7,000 in workers’ compensation medical and wage benefits from July 20, 2005 through October 3, 2005.

It is alleged that during the time he was collecting benefits, he was working as a self-employed plumber and was observed doing physical labor and operating construction equipment, installing underground plumbing conduits at a worksite in Naugatuck. He was paid in excess of $24,000 for this work, according to the warrant.

The case will be prosecuted by the Workers’ Compensation Fraud Control Bureau of the Chief State’s Attorney’s Office.


DOL issues union reporting rule

 

The U.S. Department of Labor’s Office of Labor-Management Standards has issued a final rule that improves financial reporting and gives union members more complete information about finances held in union trusts.

Union trusts primarily provide benefits to union members and their beneficiaries. Credit unions, strike funds, redevelopment or investment groups, training funds, apprenticeship programs, building funds and educational funds are examples of these trusts.

Right now, there is little, if any financial disclosure about the trusts, but under the rule, the new Form T-1 will provide information to union members and the public. Unions will be required to file the form for trusts in which a union, alone or in combination with other unions, has managerial control or financial dominance.

The DOL says it is hoping to deter the kinds of misuse of union trusts that has occurred in the past and allow union members to know exactly where their dollars are being spent.

The Form T-1 uses the same basic template as the existing Form LM-2, which has been in effect since 2004 and which unions have experience filing. The rule limits the burden on small unions, as only those with total annual receipts of $250,000 will be required to file a form. Also, labor unions will not need to file a Form T-1 on trusts subject to other disclosure requirements.

 


AG answers same-sex marriage questions

Attorney General Richard Blumenthal has issued legal opinions on a number of issues relating to the Connecticut Supreme Court’s ruling on same-sex marriage—including the status of civil unions and recognition of out-of-state same-sex marriages.

In Kerrigan v. Commissioner of Public Health, the Court ruled that Connecticut’s laws limiting marriage to opposite-sex couples violate the equal protection provisions of the state constitution and that same sex couples cannot be denied the freedom to marry. Most significantly for employers, this means that same-sex married couples will now be entitled to the same benefits afforded opposite-sex married couples under state law.

In response to a series of questions about the ruling formally asked by state officials, Blumenthal concluded the following:

  • The Kerrigan decision does not alter the status of existing civil unions in Connecticut. Both same sex marriages and civil unions will be granted and recognized under current law and policy.
  • Same-sex couples who are currently in civil unions are not required to dissolve their civil unions prior to marrying each other
  • Couples who have entered into civil unions will continue to be eligible for all health, pension, life insurance and other benefits now guaranteed under civil unions.
  • Connecticut will continue to recognize the validity of out-of-state civil unions and will now recognize out-of-state same-sex marriages.
  • Parties to a same-sex marriage will now be accorded the same state tax treatment as parties to civil unions and opposite-sex marriages.

Court orders will be issued to the town clerks and the state Department of Public Health enabling same-sex couples to marry, says Blumenthal. Same-sex marriages will most likely begin during the week of November 10.

 


NLRB reports on FY ‘08

Hampered by vacancies, the National Labor Relations Board (NLRB) issued 328 decisions during Fiscal Year (FY) 2008. Of this total, 241 were unfair labor practice (C) cases, and 87 were representation (R) cases. In comparison, the board issued 391 decisions in FY 2007 and 477 in FY 2006.

At full strength, the Board consists of five members, but since January 2008 has had just two members. The two member quorum decided 255 of the 328 cases, or nearly 78%, during the last nine months of the year. The Democratic controlled Senate had refused to approve President Bush’s nominations to the Board and blocked him from making short-term recess appointments.

The Board also lowered its inventory of pending cases, from 207 at the beginning of the fiscal year, to 171 by the end of the year. This is the sixth year in a row that the inventory has declined and the current backlog now stands at a historically low level.

The Board was unable to meet its internal goals to dispose of 90% of R cases pending as of October 1, 2007 and 90% of C cases pending as of May 31, 2007. However, it did decide 72% of the 58 R cases and 54% of the C cases.

For the NLRB’s full report on FY 2008: http://www.nlrb.gov/shared_files/Press%20Releases/2008/R-2675.pdf

 


High court clarifies timing on termination claims

 

The time period for filing a discriminatory-discharge complaint under the Connecticut Fair Employment Practices Act (CFEPA) begins on the final date of employment, not when notice of termination is received, says the Connecticut Supreme Court.

The opinion by the high court upholds an August 2007 ruling by the state’s Court of Appeals rejecting the “accrual” rule that applies to similar claims under federal law. Also accepted by a majority of the states, the accrual rule provides that the time to file begins when the employee receives clear notice of discharge.

Faced with a question of “first impression” in Connecticut—the first time a court examines an issue—the appeals panel looked at the reasoning in decisions from other states and examined the legislative history and policy principles underlying CFEPA. The panel eventually concluded that the final day of employment is the event that triggers the time period, citing the basic rule of law that a claim arises when a plaintiff is actually injured or damaged. The high court has now agreed with that position.

The decision revives an age discrimination against the Town of Wallingford by a former power plant superintendent.

 

 


H-1B workers owed back wages

An information technology company has agreed to pay nearly $1.7 million to 343 non-immigrant workers after a U.S. DOL investigation found the company violated the H-1B visa provisions of the Immigration and Nationality Act.

An investigation by the department’s Wage and Hour Division found that employees hired under the H-1B program were not paid their required wages from March 2005 through March 2007. Wage and Hour investigators also found that the Virginia company illegally charged new H-1B workers training fees ranging from $1,000 to $2,500.

The H-1B visa program permits employers to temporarily hire foreign workers in professional occupations such as computer programmers, engineers, physicians, and teachers. H-1B workers must be paid at least the same wage rates as are paid to U.S. workers who perform the same types of work or the prevailing wages in the areas of intended employment. To learn more about the H-1B program: http://www.dol.gov/compliance/audience/foreign_workers.htm

 


Computer giant sued for sex, age bias

Four former female human resources managers have filed a class action discrimination lawsuit against Dell Inc. seeking $500 million in damages.

The female managers were terminated earlier this year as part of a job cut. Their lawsuit claims that Dell’s all male Executive Leadership Team singled out thousands of female managers, as well as employees over 40, for layoffs in 2007 and 2008. It also claims that the company pays male employees higher wages than female employees for the same work and systematically blocks women across the company from breaking into the highest management ranks. Dell’s top fourteen executives are men.

A Dell spokesperson says the lawsuit is without merit.


Holiday for voting?

Presidential candidate Barack Obama's call for voters to take off work to volunteer for his campaign on Election Day could reopen a debate over whether the day should be made a national holiday or moved to the weekend as a way to boost voter participation. 

A study from the International Institute for Democracy and Electoral Assistance shows that the United States ranks 139th out of 172 democratic countries when it comes to voter turnout over the past 60 years. Supporters for adjusting Election Day argue that the U.S. needs to do something to improve its relatively low turnout. (Already, about 16 states -- but not Connecticut -- allow early, pre-Election Day voting.)

But opponents of making Election Day a holiday say that it would only encourage people to pursue leisurely activities -- and not necessarily turn out to vote. In Connecticut, polls are open from 6 a.m. to 8 p.m. to enable people to vote before or after their usual workday hours.

With expectations of a very high turnout and for long lines at polling places, and with many school systems closed, employers and employees could be feeling more pressure on Election Day this year.

 

 


Total rewards:  More communication needed

Only 33% of companies believe they communicate their reward philosophy and strategy effectively to employees — yet 80% believe communication has a significant impact on business performance and keeping employees satisfied, engaged and committed to the company. That's according to a new study by the Hay Group.

Investment in a solid communication campaign is minimal when compared with the overall scope of an employee reward program, says the Hay Group, but it can make all the difference. An average reward program with robust communications tends to be more successful than an outstanding rewards program with poor communication.

The study surveyed nearly 400 compensation and HR professionals from a cross section of industries. Among the key findings:

  • Many companies do not formally evaluate the effectiveness of their rewards communications. Only 10% pilot-test their programs before implementation. Organizations that do evaluate their reward programs, and particularly those that pilot test them, rate their programs as more effective than those that do not evaluate.
  • Marketing strategies and tools are highly effective in communicating rewards, but aren’t often used. Only 25% of survey respondents target communication to specific employee groups, but of those that do, 74% say it is effective or very effective.
  • Nearly half of respondents offer their employees training on investing for retirement. Of those, 79% say the training itself is effective — but only 29% of their employees participate.
  • Total reward statements were identified as one of the most effective methods for communicating about benefits, but they were the least prevalent method used, with 68% of companies providing these statements.

 PROGRAM NOTE: Help your employees look beyond their paychecks…Don’t miss CBIA/Mercer’s Introduction to Total Rewards ….Fri, Nov 21, at the Marriott in Trumbull, 8:30 a.m. to 4:00 p.m. For details or to register:  http://www.cbia.com/training/genbus/compbeneseries0809.htm.


USERRA amended

President Bush has signed legislation (S. 3093) amending the Uniform Services Employment Rights Act (USERRA) to reform the USERRA complaint process and expand reporting requirements for the federal Department of Labor (DOL).

Among other things, the new law requires:

  • The labor secretary to inform a veteran in writing of his or her rights within five days after a complaint has been filed and provide in writing the results of the investigation
  • The labor secretary to submit an annual report on USERRA enforcement activities to Congress by July 1
  • Training for executive branch human resources personnel on employment and re-employment rights of members of the uniformed services
  • The labor secretary to conduct an annual unemployment study that includes veterans of “Post 9/11 Global Operations” and veterans of the “Vietnam Era and Special Disabled Veterans.”

 


IRS releases COLAs for 2009

The Internal Revenue Service has announced cost-of-living adjustments applicable to dollar limitations for pension plans and other items for tax year 2009

Section 415 of the Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. It also requires that the IRS Commissioner annually adjust these limits for cost-of-living increases.

Effective Jan. 1, 2009, the limitation on the annual benefit under a defined benefit plan under Section 415(b)(1)(A) is increased from $185,000 to $195,000. The limitation for defined contribution plans under Section 415(c)(1)(A) is increased from $46,000 to $49,000. These limitations are changing for 2009 because the cost-of-living index met the statutory thresholds that trigger their adjustment.

The tax code also provides that various other dollar amounts are to be adjusted at the same time and in the same manner as the dollar limitation under Section 415. These dollar amounts and the adjusted amounts can be found at the IRS Web site.

 


DHS issues final ‘no match’ rule

The Department of Homeland Security (DHS) has issued a final rule that describes the steps employers should take when they receive a “No Match” letter from the Social Security Administration (SSA). The agency informs thousands of employers every year via the letters that certain employees’ names and corresponding Social Security numbers provided on the employers’ W-2 forms do not match SSA’s records.

The rule was originally proposed in 2006 and issued in August of 2007. A coalition of business, labor, and immigrants’ rights groups challenged the rule, and its implementation was blocked by a federal court. These same groups have now expressed disappointment with the final rule, saying it is unchanged from the August rule. DHS acknowledges that the latest rule is without substantive change, but says it does include additional background and analysis that addresses the specific issues raised by the court.

The rule will not be implemented until the federal court lifts its injunction, although DHS expects that to happen rather quickly.

 

 


DPH urges flu shots

The Department of Public Health (DPH) is urging Connecticut residents to get a flu vaccination. Health officials say the flu reached Connecticut earlier this year, with a few reports of flu cases in September.

Vaccines are encouraged for everyone, but especially for high risk groups, including children from 6 months to 18 years of age, women who will be pregnant during the flu season, people at least 50 years old, anyone with chronic medical conditions, and people who live in nursing homes or long-term care facilities.

Manufacturers expect to produce a record number of influenza doses this year with almost all vaccine delivered to providers by the middle of November. For help in locating a flu vaccine clinic, visit the American Lung Association’s Web site at http://flucliniclocator.org/

 

UI weekly benefit increases

The state Department of Labor has announced that the maximum unemployment insurance benefit will increase to $519 per week from the current $501, effective Oct. 5.

The new rate applies to claims filed for the benefit year starting on or after October 5, 2008. Individuals who established a claim prior to the October 5 date and who have been collecting unemployment insurance are not affected by the increase. The weekly dependency allowance for each dependent, at $15 with a maximum of $75, remains unchanged.

By law, any increase to the maximum weekly benefit is limited to $18 a year or 60% of the average manufacturing wage for the year ending June 30. The statutory limitation kept the increase this year to $18.

 


Change in maximum WC benefits

The state Workers’ Compensation Commission has announced that the maximum weekly compensation benefit for total disability and decedents’ dependents will go to $1,141 for injuries occurring on or after October 1, 2008. The maximum weekly benefit for partial disability (incapacity) will be $892.

The weekly benefit for total disability is equivalent to the average weekly earnings of all employees in the state, as determined by the State Labor Commissioner. The benefit for partial disability is equivalent to the average weekly earnings of production and related workers in manufacturing in the state.

For more information, go to

http://wcc.state.ct.us/memos/2008/2008-02.htm.

 

 


Reminder: EEO-1 due 9/30

Covered employers are reminded that the EEO-1 report summarizing employees by job category, race and gender is due by Sept. 30.

The Equal Employment Opportunity Commission (EEOC) made a number of changes to the form, including new categories for race and ethnicity, for the report that was due in Sept. 2007. Although employers were not required to re-survey their workforce last year using the new race/ethnicity categories, many did. For the 2008 report, employers must re-survey if they have not done so already, preferably by asking employees to self-identify.

The EEO-1 report must be filed annually by private employers with 100 or more employees and by federal contractors with 50 or more employees and a single federal contract worth $50,000 or more. Instructions are included with the form.

 

 


Backup care valued as benefit

Ninety-nine percent of employees who have used backup care sponsored by their employer think it’s an important employee benefit, according to a new survey, while 89% say just knowing the benefit is available reduces their stress.

Backup care acts as a “safety net” for employees who have caregiver responsibilities, providing temporary care for children, the elderly and other loved ones when an employee’s regular caregiving arrangements are not available.

The survey results also showed 78% of employees believe using the backup care increases their productivity at work; 77% say being offered the backup care benefit makes them more loyal to their company; 71% would have missed work without it.

The survey included responses from 1,200 employees who had used backup care services through Work Options Group, a Colorado-based company that specializes in the provision of corporate-sponsored backup care.

According to Work Options, a growing number of companies are adding backup care to their suite of benefits. Over the past year, the number of companies offering a backup care program through the group has increased 30% and the company anticipates scheduling 450,000 hours of backup care during 2008. The company has scheduled 184,000 hours of backup care during the first six months of 2008, a 90% increase over the same time period in 2007.

 


DOL recovers $7M in wages

Gov. Rell has announced that the state Department of Labor (DOL) recovered nearly $7 million in unpaid wages for workers in Connecticut during the fiscal year that ended June 30.

The DOL’s Division of Wage and Workplace Standards recovered $3.2 million after 3,234 workers complained they were not paid wages owed to them. The division also recovered $1 million by enforcing the state’s prevailing wage laws and returned $2 million more to workers unpaid for overtime or the minimum wage. Another $58,000 was recovered in back pay owed to service workers hired by private contractors for work on state property.

The unit handled more than 25,000 telephone and written inquiries during the past fiscal year and provided outreach services to businesses and schools to ensure that laws were fully understood.

For the latest information about a range of wage and hour issues, don’t miss CBIA’s Wage and Hour Conference, Tuesday, Oct. 21, North Haven Holiday Inn. To register visit the CBIA store online or contact Lise Cliche at lise.cliche@cbia.com or at 860-244-1977.

 

 


Majority say they are underpaid

 

When asked to say how they personally feel about their pay, 51% of Americans believe they are underpaid for the work they do, 46% feel they are paid the right amount, and 3% feel they are overpaid.

In the Gallup poll of nearly 600 employed adults, some groups of Americans were more likely than others to say they are underpaid. Only 38% of those making $75,000 or more a year say they are underpaid, compared with 62% of those making less than $75,000. Somewhat surprisingly, the difference between men and women on this measure is much smaller, with 47% of men and 55% of women saying they are underpaid.

The poll found little difference by race or by education in perception of being underpaid. Fifty-one percent of both whites and nonwhites say they feel underpaid. Similarly, 49% of those with high school educations or less say they are underpaid, compared with 52% of those with at least some college education.


Changes proposed for H-2B program

 U.S. Citizenship and Immigration Services (USCIS) has proposed a series of rule changes that will streamline procedures for hiring workers under the H-2B program. The new rule supplements the extensive reforms of the H-2B program already proposed by the Department of Labor (DOL) in May.

When faced with a shortage of U.S. workers to fill temporary, non-agricultural jobs, employers may petition USCIS for permission to bring foreign workers into the country to perform that work. Once approved, these workers enter the U.S. in nonimmigrant status.

The proposed rule would:

  • Require employer verification of the scope of the H-2B employment and the use of recruiters to locate H-2B workers
  • Crack down on employers and recruiters who impose fees on prospective H-2B workers in connection with, or as a condition of, an offer of H-2B employment
  • Require an approved temporary labor certification in connection with all H-2B petitions
  • Disallow, with limited exception, changing the employment start date after the grant of the temporary labor certification
  • Require employers to notify the Department of Homeland Security when H-2B workers fail to show up for work, are terminated, or leave the worksite without cause
  • Change the definition of “temporary employment” to provide that a job is of a temporary nature when the worker's tenure will end in the near, definable future, and to eliminate the requirement that employers show “extraordinary circumstances” to be eligible to hire H-2B workers where a one-time need for the workers is longer than one year but shorter than three years
  • Prohibit the approval of H-2B petitions for nationals of countries that are determined to be consistently refusing or unreasonably delaying repatriation of their nationals
  • Establish a land-border exit system pilot program, which requires H-2B workers admitted through a port of entry participating in the pilot H-program to also depart through a participating port and to present designated biographic and/or biometric information upon departure. 
  • Reduce from six months to three months the time H-2B workers must wait outside the United States before they are eligible to re-obtain status under the H or L classification

USCIS will accept comments from the public until Sept. 19, 2008.

More information about H-2B visas.

 


Dip in federal bias complaints

A report from the Equal Employment Opportunity Commission (EEOC) shows that in fiscal year (FY) 2007, federal employees filed 16,363 complaints alleging employment discrimination—down from 16,723 in FY 2006 and 18,000 in FY 2005.

Agencies also reduced the average processing time for conducting investigations from 186 days in FY 2006 to 176 days in 2007, the best investigation times reported in the last 14 years. The average processing time for closing complaints was 355 days, a decrease from 367 days in FY 2006. Of the 7,673 cases closed on the merits, 2.8% resulted in findings of unlawful discrimination. The parties entered into settlements in 3,262 complaints, or 20.6% of the total complaint closures.

Over the last 10 years, there have been subtle changes in the composition of the federal workforce, says the EEOC. Overall, the representation of women, Hispanics or Latinos, African Americans, and Asians has slightly increased, although the number of people with targeted disabilities continues to decline.

 


Consultants say 'Don’t sack fantasy football'

Fantasy football leaguers could cost employers nationwide an estimated $9 billion on lost productivity over the 17-week regular NFL season (September through December), say researchers at Gray Challenger and Christmas.

Challenger’s calculation assumes that the nearly 37 million fantasy football participants spend about 10 minutes per day at work, or almost an hour a week, drafting players, setting rosters and plotting strategy. Yet the Chicago-based outplacement firm warns that employers that ban their employees from participating could risk damage to morale and loyalty.

Companies need different ways to bring people together to create relationships and make the organization more than the sum of its parts, says Challenger. If fantasy footballers build relationships with each other through participation in a league, that can be valuable to an employer. In the view of Challenger, the potential fallout from a ban could be far worse than the loss of productivity caused by 10 minutes of online team management.

 


Best-paying states for women

Women in Connecticut had the fifth-highest median earnings in the U.S. in 2007, according to a report from the U.S. Census Bureau.

Last year, women working full-time, year-round in Connecticut earned a median $41,868. The District of Columbia had the highest median earnings for women ($49,364), followed by Maryland ($44,022), New Jersey ($42,221) and Massachusetts ($42,062). Women had the lowest median earnings in Montana ($26,598.)

The report also showed that women had lower median earnings than men in each of the 50 states. In the District of Columbia, there was no statistically significant difference between women’s and men’s median earnings.

 


National preparedness month

The U.S. Department of Homeland Security is sponsoring the fifth annual National Preparedness Month (NPM) in September with support from more than 2,700 NPM coalition members, the largest number to date.

NPM coalition members, consisting of national, regional, state and local organizations, will combine efforts throughout the month to encourage all Americans to prepare for emergencies before they happen.

The coalition urges individuals across the nation to take important preparedness steps that will greatly improve their ability to survive and recover from all types of emergencies, whether natural or man-made. These steps include getting an emergency supply kit, making a family emergency plan, becoming informed about the different emergencies that may affect them, and getting involved in community preparedness and response efforts.

Employers can learn how to prepare for a workplace emergency by visiting http://www.cdc.gov/niosh/topics/prepared/ .

 


Telecommuting helps with work-life balance

Today, work-life balance is one of the most important issues facing employees – and as a result, their employers. Employees are looking for ways to juggle their responsibilities, both on the job and in their personal lives, and often can benefit from flexibility in their work schedules.

Offering a telecommuting option is one tool employers can use to facilitate work-life balance. Telecommuting programs also provide employers with a competitive advantage in recruiting, retention, productivity and customer service levels – and profitability.

For example:

  • Employees who are better able to balance the demands on their time are more satisfied and content.
  • With satisfied employees, employers usually experience increased productivity, reduced turnover, a stronger team spirit and loyalty.
  • A lower turnover rate leads to a decrease in the cost of training new employees and reduced costs associated with informal training provided to new team members by existing employees, which result in increased profitability.

 

The state Department of Transportation’s Telelcommute Connecticut consultants can help you develop a telecommuting program that not only helps employees reduce stress and save money but also meets your specific business needs.

 

Telecommute Connecticut provides employers with free consulting assistance to design, develop and implement telecommuting programs including HR policies and teleworker agreements and training. For more information, visit www.telecommuteCT.com or cal1 1-800-255-7433.

 

State's High Court rules for employers in workers' comp case

In a major victory for employers, the Connecticut Supreme Court has ruled that an employee’s health status and lifestyle choices should be taken into account when determining the extent of an employer's liability in workers’ compensation cases. .

In Deschenes v. Transco, Inc., an employee who suffered from chronic emphysema caused by to a 30-year history of heavy cigarette smoking later developed lung disease due to asbestos exposure in the workplace.

The Supreme Court, overturning a decision by the state's Compensation Review Board, concluded that the employer should be liable only for the portion of lung disability caused by the asbestos exposure. A lower court will now determine a new award based on the decision.

Some trial attorneys have said they are planning to seek to overturn the court's decision in next year's General Assembly. But the fact remains that as of now, lifestyle choices will be taken into consideration in workers’ compensation cases. .

 


Lights, camera…no action

Job applicants are always looking for ways to stand out from the crowd, but a recent survey by the staffing firm Robert Half International suggests that submitting a video resume may not yet be the answer. Just one in four senior executives interviewed said their companies accept video resumes from candidates.

The survey asked 150 senior executives from the nation’s 1,000 largest companies “Does your company accept video resumes from job seekers?” Their responses:

  • Yes 24%
  • No 58%
  • Don’t know 18%

Although video resumes have become more common, many employers are reluctant to accept them for fear of bias claims from job applicants, says Robert Half. Before submitting a video resume, applicants should check with the hiring manager to ensure the company does not have a policy against their use in evaluating candidates.

 


IRS finding 401K problems

The Internal Revenue Service (IRS) reports that about 65% of the corporate 401(k) plans it audited last year had compliance problems, a significant increase over past years.

As a result, the agency has issued a new instruction manual, available free to employers online, that discusses 11 common 401(k) errors and how to fix them.

The IRS noted that most of the mistakes are coming from small and midsize employers that usually do not have the resources to keep up with tax code changes.

 


It pays to ride public transportation

Americans took 2.6 billion trips on public transportation in the first three months of 2008, according to the American Public Transportation Association (APTA) -- nearly 88 million more trips than last year for the same time period.

There’s no doubt that high gasoline prices are motivating people to change their travel behavior, says APTA. More and more people have decided that taking public transportation is the quickest way to beat the high gas prices.

APTA points out that employer incentives to use mass transit can benefit both employers and employees from a tax standpoint. The federal tax code allows employers to give their workers up to $115 each month to commute by transit or vanpool. Employees get the benefit tax-free, and employers get a tax deduction for the expense.

The code also lets employers give employees the option to use payroll deductions to avoid paying taxes on up to $115 a month in commuting costs. Employers save money, too, because the $115 is not subject to payroll taxes.

Employers can also share commuting costs with their workers by paying part of their monthly commuting costs and letting workers pay the balance using pre-tax dollars.

For more information on reducing commuting costs, visit APTA’s Web site.

 


New program promotes hiring of vets

The U.S. Department of Labor’s Office of Federal Contract Compliance (OFCCP) has unveiled a new program —the Good Faith Initiative for Veterans Employment, or G-FIVE — aimed at encouraging federal contractors and subcontractors to hire and promote veterans.

As an incentive, the program provides for a three-year exemption from OFCCP compliance reviews for contractors and subcontractors that receive a G-FIVE rating. While federal law already requires that contractors and subcontractors take affirmative action to hire and promote veterans, the G-FIVE rating will be reserved for those that demonstrate “outstanding achievements” with their efforts.

OFCCP says it will grant G-FIVE recognition based on the following factors:

  • Presence of veterans in the contractor’s workforce
  • An increase in the number of covered veterans in the contractor's labor force.
  • The number of partnerships with local veterans' service organizations
  • Established liaison with the state job service to facilitate the posting of job openings and evidence that appropriate job openings were listed and the number of veterans hired by the contractor during the AAP year.
  • Recruitment efforts at educational institutions to reach students who are covered veterans.
  • The number of job advertisements targeting veterans
  • For prime contractors, evidence that demonstrates a commitment to encourage their subcontractors to seek qualified veterans for employment opportunities
  • Affirmative action steps taken to attract qualified special disabled or disabled veterans through the nearest Veterans Administration job placement program.
  • The number of on-the-job training opportunities provided to covered veterans.

OFCCP Regional Directors can make G-FIVE recommendations to the agency’s national headquarters following full compliance reviews. Contractors and subcontractors may also self-nominate by contacting their Regional Director in writing.

 


Passport cards: New I-9 document

U.S. Citizenship and Immigration Services reminds employers that the new U.S. Passport Card may be used in the Employment Eligibility Verification form (I-9) process.

The Departments of State and Homeland Security began producing the new passport cards in July. The card provides a less expensive and more portable alternative to the traditional passport book, and will expedite document processing at U.S. land and sea ports-of-entry for U.S. citizens traveling to Canada, Mexico, the Caribbean, and Bermuda. It cannot be used for air travel.

While the new card is more limited in its uses for international travel, it is a valid passport that attests to the U.S. citizenship and identity of the bearer. The card may be used for the I-9 form process and can also be accepted by employers participating in the E-Verify program.

The passport card is considered a “List A” document that may be presented by newly hired employees when completing the Form I-9. List A documents are those used by employees to prove both identity and eligibility to work.

The passport card is valid for 10 years for adults and for five years for children age 15 and younger.

 


Breastfeeding programs: Making the business case

Connecticut is one of the first 10 states in the country selected to implement The Business Case for Breastfeeding, a new project intended to heighten awareness about the benefits of having a comprehensive workplace lactation program. The project was designed by the U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration’s (HRSA) Maternal and Child Health Bureau. Also participating is the National Business Group on Health, a nationwide membership-based organization. Their involvement signifies the importance of this topic to businesses who are continually seeking to improve their employees' health while reducing health care costs.

The Society for Human Resource Managers (SHRM) estimates that 26% of U.S. companies have implemented a lactation program. Research shows that these programs have a significant impact on the bottom line of companies because they:

  • Increase employee retention after maternity leave, from the national average of 59% to over 90%
  • Lower employee absenteeism rates for both male and female employees
  • Reduce health care costs
  • Improve employee productivity and loyalty to the company

The Business Case for Breastfeeding includes a comprehensive resource kit with step-by-step guidance to implementing a lactation program. These resources include many different options to consider in tailoring a program to the unique needs of each business environment, examples of existing programs, and tools that can be reproduced or modified as needed.

The Connecticut Breastfeeding Coalition (CBC) has received a grant from HHS to help start a lactation support program in 30 businesses. An individual with professional training in lactation will share their expertise with you to create a breastfeeding- friendly worksite. For more information on The Business Case for Breastfeeding, you may contact Christine Bracken RN, MSN, IBCLC at 860-628-0159 or Jennifer Matranga at jenmatr@aol.com

If you already have a lactation program, you may qualify for an employer recognition award from CBC. Apply athttp://www.breastfeedingct.org/employerfriendlyapplication.pdf

 


WC mileage rate increases

The mileage reimbursement rate for all work-injury related travel expenses incurred on or after Aug. 8, 2008, is now 58.5 cents per mile. The rate increase applies to all claimants, regardless of injury date, and coincides with the federal mileage reimbursement rate.

More about mileage reimbursement rates.

 

Study: Salary jump for new grads

 The overall starting salary offer to new college graduates, regardless of major, increased by 7.1% over last year, according to a report from the National Association of Colleges and Employers (NACE).

The Summer 2008 issue of NACE’s Salary Survey shows that, in general, the average starting salary offers to 2007-2008 bachelor’s degree graduates are on the rise.

While the Spring 2008 survey report suggested that salary increases might be leveling off, the current report shows that salaries continue to rise in many disciplines—including some that appeared flat in the spring. For example, the average salary offer to business disciplines increased by 4% over last year at this time, but the Spring 2008 report showed just a 1.6% increase.

In terms of specific majors:

  • Business administration/management grads fared well, posting a 5% increase, as did economics, marketing and engineering grads.
  • Computer science graduates rocketed up 13% over last year to an average of $60,000.
  • Liberal arts graduates also saw rising salaries. As a group, their average offer rose from $32,000 as reported in the Summer 2007 report, to $36,000 in this report—a more than 12% increase.

NACE publishes its salary surveys quarterly, compiling data from college and university career services offices nationwide on graduates in 70 disciplines at the bachelor’s level.

 

Program note: How can you attract, motivate, and retain good employees? A key is ensuring that your compensation and benefits plan is efficient and effective. CBIA and Mercer Human Resources Consulting have developed a series of courses that will help you do just that.

Courses will be held from 8:30 a.m. to 4:00 p.m. at CBIA in Hartford, Mercer Human Resources Consulting in Norwalk, and the Marriott in Trumbull. To register or for more information.

 


10 Free bus rides for commuters

Governor M. Jodi Rell is inviting Connecticut residents to take advantage of a variety of state-sponsored services, including 10 free bus rides for new riders.

“This is a perfect opportunity for those folks who have been giving some serious thought to commuting because of the high gas prices but aren’t sure if it is for them,” said Gov. Rell. “I encourage them to try it. The 10 free bus rides are an example of all the state-supported options out there.”

The governor said other commuting incentives include a free voucher for a three-day trial ride for vanpooling. More information about commuter services.


Special update on top labor and employment issues

Over the past year, there has been a flurry of activity in the areas of federal and state employment law. The courts also made a number of significant rulings sure to have a long-lasting impact on employers. Join CBIA and the U.S. Chamber of Commerce for a synopsis of recent legislative and regulatory developments, and gain insight into positions the government is likely to take in the future, on Tuesday, Sept. 30, starting at 8:30 a.m. in CBIA's offices in Hartford. To sign up, contact CBIA's Lise Cliche at 860-244-1900.

 


HSAs: IRS issues Q&A

The Treasury Department and the Internal Revenue Service (IRS) have released Notice 2008-59 providing employers and employees with a new set of formal questions and answers about Health Saving Accounts (HSAs).

The agencies have issued numerous guidance items since HSAs were created as part of the Medicare Prescription Drug Improvement and Modernization Act of 2003. The act lets an eligible employee covered under a high-deductible health plan set up a tax-exempt trust or custodial account—an HSA— for the purpose of paying qualified medical expenses.

The latest notice contains more than 40 new frequently asked questions and answers that cover a range of topics, including: Who is an eligible individual; issues related to high-deductible Health Plans; contributions to and distributions from HSAs; and establishing an HSA.


SSA unveils benefits calculator

The Social Security Administration (SSA) has a new online tool that provides immediate and personalized benefit estimates to help people plan for their retirement. The Retirement Estimator is tied to a person’s actual Social Security earnings and eliminates the need to manually key in years of earnings information.

Deciding when to retire is one of the most important and difficult decisions many people face, says Social Security. The Retirement Estimator is simple, easy-to-use and will provide highly accurate benefit estimates for those nearing retirement age. For younger workers, it will provide valuable information to help them plan and save for retirement.

The estimator is interactive allowing the user to compare different retirement options. For example, a person can change retirement dates or expected future earnings. Individuals also can print out up to three difference scenarios at one time, including their benefits at age 62 (current age if older), full retirement age, and age 70.


OFCCP has record year

In Fiscal Year 2007, enforcement efforts by the Office of Federal Contract Compliance Programs (OFCCP) garnered a record $51,680,950 in back pay and annualized salary and benefits for a record 22,251 workers subjected to unlawful employment discrimination.

OFCCP enforces Executive Order 11246, Section 503 of the Rehabilitation Act of 1973, and the Vietnam Veterans’ Readjustment Assistance Act of 1974. These laws prohibit federal contractors and subcontractors from discriminating in employment on the basis of race, gender, color, religion, national origin, disability, or veteran status.

Of the record enforcement result, 98% was collected in cases of systemic discrimination—those involving an employment practice or policy that affects a significant number of workers or applicants. The nearly $52 million reflects a 78% increase over financial remedies obtained in FY 2001.

This marks the third consecutive year that OFCCP has posted record enforcement numbers. More information about the agency’s enforcement initiatives.


DOL proposes 401(k) disclosure rule

The U.S Department of Labor (DOL) has proposed regulations to improve the disclosure of certain investment-related information to workers covered by 401(k) type plans.

The centerpiece of the proposal is a requirement that plan fiduciaries provide information about investment options in a comparative chart or similar format. As part of the proposal, the DOL has developed a model chart for complying with this requirement, while giving plan fiduciaries the flexibility to design their own charts or comparative formats. The proposal also would require plan fiduciaries to disclose basic information about the plan and its investment options, such as how to give investment instructions, investment returns and fees and expenses, and how to obtain more detailed information. This information would be given to plan participants on a regular and periodic basis.

The DOL says its proposal is consistent with public consensus that workers need clear and concise information to be able to make wise investment decisions and make the most of their 401(k) plans.

The proposed rule would be effective for plan years beginning on or after January 1, 2009. Comments on the proposal should be directed to the U.S. Department of Labor, Employee Benefits Security Administration, Room N-5655, 200 Constitution Ave., N.W., Washington, D.C. 20210, Attention: Participant Fee Disclosure Project; electronically to e-ORI@dolk.gov or via www.regulations.gov. Comments must be received by September 8, 2008.

 

Incentives may delay decisions to retire

Employers have a narrow window of up to two years in which they may be able to change workers’ decisions to retire by offering them incentives to remain with the company, according to a survey of recent retirees by the Employee Benefit Research Institute (EBRI).

Although no single incentive is likely to motivate the majority of potential retirees to stay longer with their employer, says EBRI, it appears that employers may be able to assemble a toolkit of alternatives that would be effective in retaining substantial numbers of workers. Among the most highly rated incentives:

  • Making employees feel needed
  • Offering full or partial pensions while working part-time
  • Making seasonal or contract work available

Other incentives for continuing to work included pay raises; continued health benefits; more meaningful work; working from home; and part-time hours.

The survey also found that the timing of the offer of a delayed retirement incentive is important. Nearly two-thirds of retirees (63%) report that these offers would have been much more effective if the retirees had known about them in the two years before they communicated their intention to retire.

In general, most workers begin thinking about retirement not long before they retire: 22% first began thinking about it only six months before they left the company; 21% began 12 months beforehand, and another 28% began 18 months or two years beforehand.

For more survey results, go to http://www.ebri.org/pdf/PR_807_10July08.pdf


New EEOC guidance on religious bias

The Equal Employment Opportunity Commission (EEOC) has issued a new compliance manual section on religious discrimination, calling the update a valuable resource for employers, employees, practitioners and EEOC staff.

The new section includes a comprehensive review of the relevant provisions of Title VII of the Civil Rights Act and consolidates case law and the EEOC’s views on religious discrimination issues “into one comprehensive document.”

Topics covered include the definitions of “religion” and “religious organization;” disparate treatment based on religion; the requirement to reasonably accommodate religious beliefs and practices; religion-based harassment; and retaliation. The section also provides guidance on the sometimes complex workplace issues involved in balancing employees’ rights regarding religious expression with employers’ need to maintain efficient, productive workplaces.

The EEOC says it developed the new guidance in response to a significant increase in charges of religious discrimination. The agency also issued a companion question-and-answer fact sheet and a best practices booklet, available for free from the EEOC Web site.

 


UC benefits extended

President Bush has signed an Extended Unemployment Compensation Benefits bill that will provide up to 13 weeks of additional unemployment benefits to individuals who meet federal guidelines.

The state Department of Labor is identifying those who are potentially eligible for the extended benefits and will send them notification letters. To qualify for the extension, individuals must:

  • Have filed an unemployment claim effective May 7, 2006, or later, on which they have exhausted benefits
  • Be fully or partially unemployed as of July 6, 2008
  • Have no rights to unemployment benefits from any state, the federal government or Canada
  • Be legally authorized to work in the United States
  • Be able and available for and seeking employment

Employers will not be charged for the extended weeks of benefits because it is a federal program. For most claimants, eligibility and benefits will be retroactive to July 6, 2008.

Visit the Labor Department’s Web site to access Frequently Asked Questions about the extension.

 

 


Survey: Leadership development programs

Coaching a performance problem solution, communicating performance standards, and other tactical initiatives are the most common components of leadership development programs, a study by Novations Group finds.

Less frequently covered by leadership development programs are key strategic skills such as communicating vision or delegating responsibility, reports Novations, which surveyed more than 2,500 senior human resource and training executives.

The survey asked “Which of the following management situations or initiatives are addressed by your organization’s leadership development program (Check all that apply)?”

  • Coaching a performance problem 71.9%
  • Communicating performance standards 69.1
  • Coaching a development opportunity 68.7
  • Conducting a performance appraisal 66.8
  • Handling conflict situations 65.9
  • Communicating vision and strategy 59.4
  • Selecting the right employee 58.1
  • Diversity and inclusion 55.3
  • Gaining commitment to goals 49.3
  • Managing priorities 48.8
  • Change management 45.2
  • Acting on feedback 44.7
  • Teaching a skill and delegating responsibility 39.6
  • Influencing internal resources 34.6
  • Managing a virtual team 27.6

The high priority given day-to-day management problems should not take anyone by surprise, says Novations. What's disappointing is the relatively low emphasis given to the strategic dimension. At the very core of developing new leaders is getting people to look beyond the tactical to see the bigger issues.

 

  • When your top managers grow, your company will, too. Register now for CBIA’s Management Institute series —a convenient, affordable way to prepare your employees for the increased responsibility that comes with leadership. Classes are held at CBIA in Hartford.

 

 


DOJ files USERRA suit against city

The Department of Justice (DOJ) has filed a lawsuit on behalf of an Alabama National Guard member, claiming her employer, the City of Marion, violated the Uniform Services Employment and Reemployment Rights Act (USERRA).

The suit alleges that the city refused to reinstate the guard member to her civilian employment position as a dispatcher with the Marion Police Department after she returned from basic training. The suit also alleges that Marion’s violation was willful, which carries an award of special damages, because city officials were aware of USERRA’s reemployment requirements and still refused to reemploy the guard member.

Subject to certain limitations, USERRA requires that individuals who leave their jobs to serve in the U.S. military be reemployed in a timely manner by their civilian employer -- in the same position that they would have held had they not left to serve in the military.

The DOJ’s Civil Rights Division assumed responsibility for the enforcement of USERRA with respect to state and local governments and private employers in 2004. Since that time, the Division has filed 23 USERRA suits on behalf of service members, including the first-ever federal class action lawsuit under USERRA.

 


2008-2009 HR Council meetings set

Learn from some of the most experienced HR experts in Connecticut by participating in CBIA’s Human Resources Council. The council will meet at CBIA in Hartford from 8:30 to 10:30 a.m. on these dates:

  • Sept. 30, 2008 — A legislative and judicial review
  • Oct. 28, 2008 — Data security: Don’t let a breach put you in the headlines
  • Jan. 27, 2009 — The Family and Medical Leave Act: Complying with an evolving law
  • March 31, 2009 — the Internet and your employees: Avoiding potential dangers
  • April 28, 2009 — Human resources’ role in going green

The five-meeting series costs $45 per person. To register, contact Lise Cliche at lise.cliche@cbia.com or 860-244-1977.

 


Design an effective compensation and benefits plan

How can you attract, motivate, and retain good employees? A key is ensuring that your compensation and benefits plan is efficient and effective. CBIA and Mercer Human Resources Consulting have developed a series of courses that will help you do just that.

Courses will be held from 8:30 a.m. to 4:00 p.m. at CBIA in Hartford, Mercer Human Resources Consulting in Norwalk, and the Marriott in Trumbull according to the following schedule:

 

Introduction to Benefits Theory and Administration

  • Sept. 12, Hartford
  • Sept 26, Norwalk

Health and Wellness Strategies

  • Oct. 3, Hartford
  • Oct. 31, Norwalk

Introduction to Total Rewards

  • Nov. 21, Trumbull

401(k) or 403(b): Managing Your Retirement Savings

  • Jan. 16, Hartford
  • Jan. 30, Norwalk

Health Care Consumerism

  • Feb. 6, Hartford
  • Feb 27, Norwalk

Individual courses cost $199 for CBIA members, $260 for nonmembers. The full series costs $750 for CBIA members, $975 for nonmembers. To register or for more information, contact Lise Cliche at lise.cliche@cbia.com or 860-244-1977.

 

IRS hikes mileage rate

The Internal Revenue Service (IRS) has approved an eight-cent increase in the optional standard mileage rate for work-related automotive travel, effective July 1. The new rate for the use of a car, including vans, pickups and panel trucks, is 58.5 cents per business mile, up from 50.5 cents for the first six months of 2008.

The mileage rate is normally updated once a year in the fall for the next calendar year. The IRS says this special mid-year adjustment is in recognition of recent gasoline price increases.

The agency also noted that the rate for the use of a car for medical or moving purposes will be 27 cents per mile, and the rate per mile driven in service to a charitable organization will be 14 cents.

 


HR pros: Mets struck out

While there may have been reason to fire Mets manager Willie Randolph, human resource experts say team officials struck out when it came to how the dismissal was handled.

The Mets "whiffed" by:

  • Firing Randolph in the dead of night when he was 3,000 miles away from home
  • Doing it after a team victory
  • Letting speculation about the manager's status build
  • Allowing players to hear the news from outside sources as they returned to their hotel
  • Failing to treat Randolph with respect.

The dismissal showed poor communication and poor judgment, said one HR executive. Management didn’t think about perception, and now the team is facing serious damage control.

 


House approves bill to amend ADA

By a vote of 402-17, the U.S. house of Representatives has approved a bill (H.R. 3195) that would amend the Americans with Disabilities Act (ADA) and override several U.S. Supreme Court interpretations of the federal disability bias law.

The bill modifies the definition of the term “substantially limits” to mean “materially limits,” stating that the new definition is meant to depart “from the strict standard” that has been applied by the courts. It also provides that any “ameliorative effects” of “mitigating measures” like medications may not be considered when determining whether an individual has a disability.

Employer groups as well as civil rights and disabilities groups support the legislation. The bill next moves to the Senate for consideration. The Bush Administration has expressed support for “legislation that improves the ADA” but says it has “significant concerns” about some of the bill’s provisions.


Survey shows increased job satisfaction

More than four out of 10 employees say they are very satisfied with their jobs, according to an annual job satisfaction survey by the Society for Human Resource Management (SHRM).

Eight out of 10 employees report overall satisfaction.

The percentage of very satisfied employees rose from 38% in 2007 to 41% this year. The figure has remained relatively constant since SHRM first conducted its annual survey in 2002, with 30% responding very satisfied. The overall satisfaction score — 83% this year — was 79% last year, and 77% in 2002.

In this year’s survey, female employees reported higher levels of satisfaction than male employees, as did employees aged 56 and older compared with those 35 and younger.

The most important aspects of job satisfaction, as reported by 50% or more of employees, were job security, benefits, compensation, feeling safe in the work environment, communication between employees and senior management, and opportunities to use skills and abilities. These results were similar to last year’s findings.

One significant difference in this year’s findings was the decrease in the importance of “work/life balance,” as it reached its lowest average level in the history of the survey. Forty four percent of employees reported that work/life balance is a very important aspect of job satisfaction, compared with 62% in 2002.

 


DOL releases annual “time use” data

The U.S. Department of Labor’s Bureau of Labor Statistics (BLS) reports that employed persons worked an average of 7.6 hours per day in 2007, working longer on weekdays than on weekends — 7.9 versus 5.6 hours.

On the days that they worked, employed men worked about three-quarters of an hour more than employed women. This difference partly reflects women’s greater likelihood of working part-time, says BLS. However, even among full-time workers (those usually working 35 hours or more per week), men worked slightly longer than women — 8.2 versus 7.8 hours.

Other BLS findings:

  • Many more people worked on weekdays than on weekend days: 83% of employed persons worked on an average weekday compared with 36% on an average weekend day
  • On the days that they worked, 20% of employed persons did some or all of their work at home, averaging 2.8 hours per day at home
  • Multiple jobholders were almost twice as likely to work on an average weekend day as were single jobholders—62% versus 33%
  • Multiple jobholders were also much more likely to work at home than were single jobholders—31% versus 18%.

CBIA’s 2007 – 2008 Compensation Report

Compensation rates are key to attracting and retaining top performers. Find out if your company’s pay practices are in line with what other similar Connecticut businesses are paying. This new report includes data on more than 150 positions from small, midsize and large employers and across various industries. In addition, for the first time CBIA has partnered with Adecco, a leader in human resources solutions, to include their salary survey data as well. For more information or to order a copy of the report, go to http://www.cbia.com/hr/Publications/20072008compensationreport.htm.

 


CBIA’s On-Site Training:
Sexual harassment prevention and more

If your company has 50 or more employees, you probably know that you are required by law to provide sexual harassment training for supervisory staff. But did you know that numerous court decisions have underscored the importance of such training for smaller companies and for nonsupervisory staff as well?

Off-site employee training can be expensive, inconvenient and difficult to coordinate. CBIA eliminates those headaches by conducting sexual harassment prevention training right at your facility.

No matter the size of your company or the nature of your business, we can tailor a dynamic training workshop to meet your needs. Your staff will learn

  • What kinds of conduct and language constitute sexual harassment

  • Strategies to prevent harassing behaviors from occurring in your workplace

  • Procedures to follow when an employee is harassed, or believes he or she has been harassed

  • Interpersonal skills for confronting/discouraging harassers, to ensure a positive, productive work atmosphere

Our workshop includes a review of harassment law, how it applies to your work environment, numerous real-world case examples, role-play activities, and informative take-away materials that will enable you to implement positive, corrective steps immediately upon returning to work.

To schedule a sexual harassment prevention training workshop at your facility—or for information about CBIA’s other onsite training programs—contact Mark Soycher at 860-244-1138 or mark.soycher@cbia.com.

 

Gas prices changing business practices

For most employers, where their employees live has never been a concern, but soaring gas prices may be changing that.

The Hartford Courant reports that companies nationwide have begun asking applicants a different type of question: Are you driving to work and what’s the length of your commute? It’s part of any conversation, says one employer. Making an investment in an employee who’s going to leave after a short time because of commuting costs hurts the bottom line. Anything beyond a 20- to 30-minute commute is dicey. 

 Many employers are also looking for ways to reduce the commute for current employees, some by shifting to a four day workweek.  Others have begun to shift their supply chain around and are using local suppliers. Larger-than-expected raises to cover the cost of gas may also become necessary for employers worried about losing employees to competitors. 


Job ads: Watch that language

In an informal discussion letter the Equal Employment Opportunity Commission (EEOC) has offered guidance on the legality of using particular wording in “help wanted” advertisements.

Asked whether employers can legally use phrases such as “women and minorities encouraged to apply,” the EEOC said they knew of no case where an employer had been held liable for using such language in their job advertisements. To develop an applicant pool that reflects the demographics of the qualified workforce, it may be necessary to encourage members of underrepresented groups to apply, said the agency.

The agency was also asked whether use of the phrase “and others” makes an otherwise discriminatory advertisement -- as in “seeking stay-at-home moms and others” or “seeking retirees and others" -- nondiscriminatory. According to the EEOC, “seeking” a particular kind of applicant indicates a preference for that group; it is not just "encouraging” people to apply. Therefore, using the phrase “and others” likely would not redeem such an ad.

Another issue brought a mixed response from the EEOC. Asked whether it had a definitive policy for the use of gender-specific job titles, the agency said using a narrow term such as “waitress” in a job ad implicates federal anti-discrimination law because the term is likely to deter members of protected groups — in this case, men — from applying for such jobs. The term “journeyman,” however, is considered gender-specific but its use does not implicate antidiscrimination laws because it is a term of art designating a particular skill level. However, the agency added that it has not taken a formal position on whether “journeyman” or “journey level” is appropriate.

In the letter, the EEOC cautioned that the guidance was general in nature and not a legal assessment. The legality of particular employment practices can only be determined when specific charges of discrimination are filed, said the agency.

 


Federal contactors must use E-Verify

Under an executive order issued recently by President Bush, federal contractors will be required to use E-Verify — the Department of Homeland Security’s (DHS) voluntary electronic employment verification system — to confirm the employment eligibility of workers on all future government contracts.

DHS operates E-Verify in partnership with the Social Security Administration (SSA). The system compares employee information from the I-9 form against records in the Social Security Administration’s database and in the DHS immigration database. While some states have mandated use of the system for certain employers, voluntary adoption by employers has been slow

The DHS and the attorney general of the U.S. are charged with enforcement of the executive order, and DHS is authorized to issue implementing rules. Among other things, the rules are expected to clarify whether the Office of Federal Contract Compliance will have an enforcement role; the order applies to all federal contracts, regardless of size; and subcontractors are also covered.

 


Google top choice for MBAs

For the second year in a row, MBA students responding to a survey by Universum have chosen Google as their ideal employer.

The global employer branding consultants Universum polled nearly 58,000 students from 52 MBA programs for its annual survey. Nearly 24% of the students named Google as the workplace of choice. Rounding out the top five were McKinsey and Company (16%); Goldman, Sach (15%); Apple (14%); and The Boston Consulting Group (12%).

The survey also found management consulting to be students' desired industry (30%), followed by financial services (19%), marketing/advertising (13%), consumer goods (12%), and investment banking (8%).

MBA students said they expect a $90,000 salary, on average, one year after graduating and $180,000 after five years.

 


Boomers not eager to retire

Baby boomers are no more eager to retire than their predecessors were, according to a survey of more than 2,500 senior HR executives by Novations Group, a consulting and training services firm based in Boston.

When asked how the baby boomers in their organization feel about retirement, the HR execs responded:

  • Our baby boomers seem eager to retire – 14%
  • Our baby boomers seem no more eager to retire than previous groups – 42%
  • Our baby boomers do not seem eager to retire – 19%
  • Not sure – 25%

Novations warned that the ambivalence of boomers toward retirement has left many employers in a vulnerable position. A majority of them (56%) either don’t expect, or don’t know if there will be, a large loss of talent. Only 26% are taking steps to mitigate the loss, for example, by creating ways for baby boomers to gradually reduce their hours. These 26% will have a competitive edge over other companies that don’t have plans to address the issue, says Novations.


DOL proposes H-2B changes

The U.S. Department of Labor (DOL) has proposed rules to modernize the H-2B application process and strengthen worker protections under the temporary labor certification program.

 

When there is a shortage of skilled U.S. workers, the H-2B program enables employers to apply for temporary, nonagricultural workers from outside the country to fill temporary or seasonal needs. The proposed rules would streamline the process and eliminate duplication of effort by state workforce agencies (SWAs) and the DOL’s Employment and Training Administration (ETA). Instead of applying first with their SWAs, employers would file their H-2B applications directly with the ETA. Employers would also obtain the applicable prevailing-wage determinations for their job opportunities from the DOL, rather than from their SWAs.

 

The proposed rules also prohibit employers from passing along any related costs to foreign workers who participate in the H-2B program. In addition, the DOL proposes to debar for up to three years any employer, attorney or agent who commits fraud or willful misrepresentation concerning the H-2B employment-based immigration program, or fails to cooperate in DOL audits or investigations.

 

Public comments on the proposal will be accepted until July 7.

 


HSA limits for 2009

 The U.S. Treasury Department and Internal Revenue Service have issued new guidance on the maximum contribution levels for Health Savings Accounts (HSAs) and out-of-pocket spending limits for High Deductible Health Plans (HDHPs) that are required with HSAs. These amounts have been indexed for cost-of-living adjustments for 2009.

 

New annual contribution levels for HSAs:

  • For 2009, the maximum annual HSA contribution for an eligible individual with self-only coverage is $3,000
  • For family coverage, the maximum annual HSA contribution is $5,950
  • Catch-up contribution for individuals age 55 or older is increased by statute to $1,000 for 2009 and all subsequent years
  • Individuals eligible on the first day of the last month of the taxable year (which is December for most taxpayers) may make the full annual contribution (plus catch-up contribution if 55 or older by year-end), regardless of the number of months the individual was eligible in the year. For those people who are no longer eligible on that date, both the HSA contribution and catch-up contribution apply pro rata based on the number of months of the year a taxpayer is eligible.

 

New amounts for out-of-pocket spending on HSA-compatible HDHPs:

  • For 2009, the maximum annual out-of-pocket amounts for HDHP self-coverage increases to $5,800 and the maximum annual out-of-pocket amount for HDHP family coverage is $11,600.

Minimum deductible amounts for HSA-compatible HDHPs:

  • For 2009, the minimum deductible for HDHPs increases to $1,150 for self-only coverage and $2,300 for family coverage.

In addition, a fiscal year plan that satisfies the requirements for an HDHP on the first day of the first month of its fiscal year may apply that deductible for the entire fiscal year.

 


High court backs workers in retaliation cases

 In separate decisions, the U.S. Supreme Court has ruled that two federal laws prohibiting employment discrimination also allow employees to sue for retaliation, even though neither law specifically mentions it.

 

In one of the cases, a black employee filed suit against his employer, claiming he was fired because of his race and because he complained about alleged racial discrimination against a co-worker. The lawsuit included discrimination and retaliation claims under Title VII of the Civil Rights Act of 1964 and Section 1981, a Reconstruction-era civil rights statute that prohibits, among other things, race discrimination in employment contracts. A lower court dismissed all but the 1981 retaliation claim, which made its way up to the high court.

 

The other case involved the provision in the Age Discrimination in Employment Act (ADEA) that covers federal employees. It prohibits age discrimination against federal employees, but unlike the ADEA provision covering the private sector, does not prohibit retaliation.

 

The race bias ruling is particularly significant for employers because Section 1981 has a much longer statute of limitations — four years — than Title VII has. It also does not require an employee to first file a complaint with the EEOC, and does not limit the amount of punitive and pain and suffering damages that can be awarded

 


Staffing employment edges down

Staffing industry employment declined slightly in the first quarter of 2008 compared with the same period last year, according to survey data from the American Staffing Association(ASA).

 

America’s staffing companies employed an average of 2.8 million temporary and contract workers per day from January through March, down 1.7% or 48,000 jobs from the first quarter of last year. This marks only the fourth time since the second quarter of 2002 that the industry’s quarterly employment decreased from the same period of the previous year.

 

Demand has softened for lower-skilled labor, says ASA, but there continues to be growing demand for higher-skilled talent.

 

In addition, the ASA Staffing Index — which measures weekly changes in staffing industry employment — has been flat since the beginning of the year. This suggests that the staffing industry has remained more resilient than in previous periods when the economy had slowed, says ASA.

 

U.S. sales of temporary and contract staffing totaled $17.7 billion in the first quarter of this year, an increase of 1.5% over the same quarter of the previous year, and a new first quarter record.

 


New degree: A.S. in finance, insurance

 

A new academic degree, associate of science in insurance and financial services, was recently approved by the Board of Governors of the Connecticut Department of Higher Education. The degree is one of the first of its kind in the country.

 

The Insurance and Financial Services Center for Educational Excellence developed the new degree with extensive industry participation and in collaboration with faculty at Capital Community College in Hartford and Norwalk Community College

 

Gov. M. Jodi Rell’s office called the degree a significant step toward meeting the needs of the state’s insurance and financial services companies for skilled workers.

 

The degree will be offered for the first time in the fall of 2008 at Capital Community College and Norwalk Community College. Registration begins in June. For more information, go to

http://www.ct.gov/governorrell/cwp/view.asp?A=3293&Q=416140

 

 


Competing for talented younger workers? Get an edge with telecommuting

 

Connecticut companies are facing a shortage of skilled workers that’s being caused by an aging employee population. Because businesses must continually compete for younger workers, talented young people whose skills can contribute to the success of any business are in high demand. Is your company doing all it can to attract and retain them?

 

Younger workers often expect flexibility in their work schedules, so offering the ability to telecommute is an easy way to reach this age group. Employees between the ages of 18 and 34 are twice as likely to prefer flexible working conditions as older employees, according to one recent study. In fact, 70% of survey respondents agreed that they would welcome the opportunity to work from a remote location.

 

Telecommuting is a good option because employers with telecommute programs (1) attract the best and brightest candidates to the hardest-to-fill jobs, (2) reduce the cost and time of recruiting and retraining replacements and (3) help employees achieve work/life balance and reduce their costs and stress.

 

Many younger workers also have the characteristics that make good telecommuters, including being self-motivated, independent self-starters.

 

Telecommute Connecticut provides employers with free consulting assistance to design, develop and implement telecommuting programs including HR policies and teleworker agreements and training. For more information, visit www.telecommuteCT.com or call 1 -800-255-7433.

 

2008 college class largest in state’s history

 Connecticut’s public and independent colleges are expected to graduate some 36,000 students this spring, the largest number in the state’s history.

According to a profile by the state Department of Higher Education, about half of the students will receive their bachelor’s degree, 26% will get a master’s degree, and 14% an associate’s. Most will have majored in one of five fields that have been the most popular choices over the past 10 years: business; health; education; social science/history; and the liberal arts. The class will include more than 1,000 new nurses, more than 3,600 new teachers, and about 3,500 with degrees in the sciences — biology, physics, engineering, and computer science.

Nearly 18% of the students are from minority groups, reflecting the state’s increasing diversity, but still lagging their representation in the general population. Sixty percent are women, retaining their majority status first reached in the late 1970s.

 


Immigration agents arrest 300

Looking for evidence of aggravated identity theft and fraudulent use of Social Security numbers, agents of U.S. Immigration and Customs Enforcement (ICE) recently arrested more than 300 individuals at a meatpacking plant in Iowa.

The worksite raid was the largest enforcement operation of its type ever in Iowa. All of those taken into custody during the operation are being interviewed to determine if they have health, caregiver, or other humanitarian concerns, says ICE. So far, 40 individuals have been released on humanitarian grounds under supervision, but will be required to appear before an immigration judge. Anyone discovered to be in the United States illegally eventually will be placed into administrative removal proceedings.

ICE has not indicated whether the employer will face charges.

 


Few companies dealing with language issue

A survey by The Conference Board of senior human resource, training and development executives finds that 66% of companies do not provide English language skills in their training programs.

Among this group, more than half said they “have not found a need to warrant such training,” even though more than 80% report employing English-deficient employees. Some of these companies have found alternative means for accommodating such employees; for example, one in five report using bilingual supervisors.

Companies that don’t provide English language skills in their training programs say they would if it would result in increased productivity and employee engagement.

As foreign workers make up a larger share of the U.S. workforce, more employers will be dealing with language limitations, says The Conference Board. Whether and how companies choose to accommodate these workers could have significant impact on the sustainability of success. The latest evidence suggests companies would do well to recruit and hire the best available talent, regardless of language limitations, and invest in language training.

 


$1M payout for sex bias against men

A Dallas-based restaurant chain has agreed to pay $1 million to settle a sex discrimination lawsuit that accused the company of refusing to hire male bartenders.

In the lawsuit, the Equal Employment Opportunity Commission (EEOC) claimed that Razzoo’s restaurants set up and communicated to managers by e-mail a plan for an 80 – 20 ratio of women to men behind the bar. Male applicants and servers were expected to testify at the trial — which will now be unnecessary because of the pre-trial settlement—that managers told them Razzoo’s wanted mostly “girls” working as bartenders. Male servers were generally denied promotion to bartender and the few men who were promoted were not allowed to work lucrative “girls-only” bartending events.

Some may say that sex sells drinks, said the EEOC’s lead counsel on the case, but gender ratios are illegal.

Razzoo’s agreed to pay $775,000 to be divided among a class of male applicants, male servers and male bartenders who were discriminated against. The chain also agreed to spend no less than $225,000 to retain the services of a human resources consultant or to develop an in-house human resources department.

 

Coming in June…. What Every Supervisor Needs to Know About Employment Law. Informed managers and supervisors can be a big help on the HR front. Be sure your company’s supervisors are up to date on the latest developments in discrimination law and related workplace issues. June 11 in Windsor or June 20 in New Haven.

 


Job seekers need a little help from their friends

Internet sites are helpful, but job seekers still rely most heavily on personal connections when looking for work.

In a survey by Gallup, people who had searched for work in the past six months were most likely to say they used family and friends (74%) and current employees at a company (70%) as resources. Forty percent also used referrals from the potential hiring company’s customers or vendors.

Nearly two-thirds (62%) used online databases to look for work. Smaller percentages of jobseekers relied on other Web-based resources, such as specific organizations’ Web sites (56%), search engines such as Google and Yahoo (39%), professional or trade associations’ Web sites (36%), online networking tools (29%), online job ads (28%), and their college’s career center or Web site (16%).

Job seekers also found referrals and personal interaction more effective than other types of search tools, including web-based databases and search engines. About two-thirds of jobseekers said referrals from an organization’s current employees are effective when searching for work, while half rated family and friends as effective resources. One-third of jobseekers considered an organization’s Web site to be a somewhat effective tool. One quarter said online job databases are somewhat effective, while no more than 20% rated any of the other cyber-search resources as somewhat effective.

 

State’s high court breaks new ground

Employers must reasonably accommodate employees with disabilities and identify potential accommodations, even though the state Human Rights and Opportunities Act does not explicitly require them to, Connecticut’s Supreme Court has ruled.

In officially recognizing an employer’s duty to accommodate, the high court adopted the position the state Commission on Human Rights and Opportunities (CHRO) has long held on the issue. Its interpretation, said the court, is consistent with the state statute’s legislative history and intent, federal disabilities law, and the law of other states.

The court’s decision revives the accommodation claim of an employee whose employer temporarily moved him from a job as a driver to working in a warehouse after he hurt his back. But the company refused to reassign him on a permanent basis.

 


10 hardest jobs to fill

In an annual survey by Manpower, Inc., U.S. employers identified the following 10 jobs as the hardest to fill for 2008:

  1. Engineers
  2. Machinists/Machine Operators (ranked 10th in 2007)
  3. Skilled Trades
  4. Technicians (4)
  5. Sales Representatives (1)
  6. Accounting and Finance Staff (8)
  7. Mechanics (3)
  8. Laborers (9)
  9. IT Staff
  10. Production Operators

Sales representatives, technicians, accountants/finance staff and machinists appeared on the hardest-to-fill list for the third consecutive year, confirming that job seekers with specific skill sets are still in demand.

Engineers appeared second on the list in 2006 and first this year, after dropping off completely in 2007. Employers are also finding it difficult to fill openings for skilled trades people, IT staff and production operators, all new to the 2008 list.

Although job categories have shifted on the list, it’s clear that all types of companies need to plan how they will transition from baby boomers to younger generations, says Manpower. Companies must balance attracting and retaining aging workers with developing innovative recruiting programs that target young professionals, especially those interested in technical and trade careers.


New drug-free workplace kit

The Substance Abuse and Mental Health Services Administration (SAMHSA) has developed a Drug-Free Workplace Kit, suitable for all sizes of workplaces.

Nearly 75% of current illicit drug users and 79% of heavy drinkers aged 18 or older are in the workforce, says SAMHSA. Substance abuse is expensive and dangerous for American businesses, costing them estimated billions of dollars a year.

Available in print or online, the free kit offers practical, evidence-based information, resources and tools for developing and maintaining drug-free workplace policies and programs.

The new kit includes nine brochures, 13 fact sheets, a bumper sticker and two posters for display in workplaces. The materials cover a range of topics, including how to assess your company’s needs; understanding the legal issues related to substance abuse; developing a policy; prevention education; training your supervisors; and creating an employee assistance program. The kit also includes information on how to set up systems for evaluating the program’s effectiveness.

Up to five printed copies of the kit can be ordered by calling 1-877-726-4727. It can be downloaded online at http://www.workplace.samhsa.gov/WPWorkit/index.html.

 


Bigger paychecks for summer hires

Twenty-four percent of employers plan to pay their summer hires more this year than they did last year, according to a survey by CareerBuilder.com. Nearly half plan to dish out $10 or more per hour; 7% will pay $20 or more per hour.

The hospitality and retail industries lead in the number of hiring managers planning to recruit summer help, at 40% and 39% respectively. Most-offered summer positions are office support, customer service, and landscape maintenance.

Nearly two-thirds of employers say they will consider their summer recruits for permanent placement within the organization.

Summer jobs can also be rather … unusual. When asked about the most unusual or memorable summer jobs they’ve ever held, workers identified chicken wrangler, clown in an underwater theatre; cast member in a haunted house; gopher hunter; eraser of marks in used books; and scrubber of rubber ducks for a national rubber duck race.

 


Women in the workforce

A record 68 million women were employed in the U.S. in 2007 — 75% of them in full-time jobs, according to the U.S. Department of Labor (DOL).

The largest percentage of employed women (39%) worked in management, professional, and related occupations, accounting for 51% of all workers in these occupations. They outnumbered men in such occupations as financial managers; human resource managers; education administrators; medical and health service managers; accountants and auditors; budget analysts; property, real estate, and social and community association managers, physical therapists; and nurses.

The DOL’S figures also show that 34% of employed women worked in sales and office occupations; 20% in service occupations, 6% in production, transportation and material moving occupations; and 1% in natural resources, construction and maintenance occupations.

For more data from DOL on women in the workforce, go to http://www.dol.gov/wb/stats/main.htm.

 

H-1B visa cap reached

The U.S. Citizenship and Immigration Services (USCIS) says it has received enough H-1B petitions to meet the congressionally mandated cap for Fiscal Year 2009. The agency has also received more than 20,000 H-1B petitions filed on behalf of people who are exempt from the cap under the “advanced degree” exemption.

USCIS will randomly select the number of petitions needed to meet the caps of 65,000 for the general category and 20,000 for the advanced degree exemption. The agency will conduct the selection process for advanced degree exemption petitions first. All advanced degree petitions not selected will be part of the random selection process for the 65,000 limit.

Current holders of H-1B visas are not affected by the cap.


Safety at the office

While office settings usually lack drill presses, band saws and other obvious risks that everyone equates with workplace safety, thousands of working Americans are injured in offices every year, says the National Safety Council (NSC). Perhaps the biggest risk in the workplace is not being aware of risks -- not realizing the potential dangers associated with some common office features that can lead to injuries or even death.

According to the NSC, the most common office hazards include file cabinets and other obstacles; electricity and fires; falling down and sitting down; and ergonomics and working postures. For tips on how to assess your office workspace for these hazards and prevent or correct potential problems areas, visit

http://www.nsc.org/cubicle_safety.aspx

 


More Connecticut commuters using trains

Nearly 1.4 million new riders traveled on Connecticut’s commuter rail service in 2007.

The Connecticut Department of Transportation (DOT) recently released its annual rail ridership report for calendar year 2007 and first two months of 2008, showing across-the-board increases. The New Haven Line had more than 1.3 million new passengers in 2007, a nearly 4% increase over 2006. Shore Line East (SLE) ridership increased 5.5%, or 25,000 more passenger rides in 2007. In January and February of 2008, rail ridership continued to experience strong increases.

New stations, more parking and better equipment are all encouraging more people to choose the train, says Gov. M. Jodi Rell. A modern rail system with convenient and reliable service is an important part of a 21 st century transportation infrastructure Connecticut needs to support our economy and quality of life.

Connecticut intrastate ridership—those customers who do not begin or end their commute in New York City’s Grand Central Terminal — had the highest percentage increase in 2007. More than 3.9 million passengers traveled on the New Haven Line within Connecticut, a 7% increase over 2007. The Waterbury Line experienced a 6.9% increase; the New Canaan Line increased 3%.

The New Haven Line is one of the busiest commuter routes in North America, carrying more than 36 million passengers in 2007.

 

 


Watershed benefits case

The U. S. Supreme Court has agreed to hear a case that could have widespread ramifications for employee benefit plans and insurers nationwide.

In the case, the justices will consider how courts should weigh an apparent conflict of interest when the same benefits administrator is authorized to both determine eligibility for benefits and pay those same benefits. The decision would pertain to ERISA-covered plans, such as health, life and disability coverage.

The case involves a benefits administrator who approved an employee for long-term disability, but terminated the benefits after two years, saying the employee had improved to the point of no longer being eligible. Meanwhile, a Social Security judge had ruled that the employee was totally disabled and entitled to Social Security disability benefits.

The employee sued, and a federal appeals court ruled in her favor, finding that the decision to terminate benefits was not the result of a principled reasoning due to the benefits administrator’s conflict of interest.

Depending on the outcome of the case, say experts, companies may find that they have to completely reorganize the way they handle benefit claims. Oral argument at the high court is set for April 23.

 


Obesity costs employers billions

Obese employees cost U.S. private employers an estimated $45 billion annually in medical expenses and lost productivity, according to a report from the Conference Board.

Obesity is not solely a health and wellness issue, says the Conference Board. Employers need to pay attention to their workers’ weights, for the good of the company’s fiscal health as well as for the good of the employees’ health.

Among the reports’ findings:

  • Obesity is associated with a 36% increase in spending on health care services, more than smoking or problem drinking.
  • More than 40% of U.S. companies have implemented obesity-reduction programs, and 24% more said they plan to do so in 2008.
  • Estimates of return-on-investment (ROI) range from zero to $5 per $1 invested. ROI aside, these programs may give companies an edge in recruiting and retaining employees.
  • Employers need to weigh the risks of being too intrusive in managing obese employees against the risks of not managing them.
  • The jury is still out on the costs and benefits of paying for employees’ weight-loss surgeries, as some say companies are unlikely to recoup surgery costs before these employees leave for other jobs.
  • How employers communicate a wellness or weight-loss program is as important as how they design it; companies should involve employees in planning health initiatives, rather than working from the top down, and should make sure personal privacy is protected.

Updated WC info packet

The Connecticut Workers’ Compensation Commission’s Information Packet has been updated and is available online.

The packet includes comprehensive “plain-English” information about Connecticut’s workers’ compensation system, its benefits and procedures, plus a number of sample forms. It carries a revision date of 4/8/08.

 


Telecommuting Works! Telecommuting from the Employer’s Perspective

This seminar presents the benefits of telecommuting from the employer’s perspective, including bottom-line benefits, and also focuses on human resources issues and technology considerations. Wednesday, April 30 in Stamford.


More about ‘no-match’ letters

The Department of Homeland Security (DHS) has released a supplemental proposed rule related to the agency’s controversial No Match Rule issued last August.

The August rule outlined the steps an employer should take if it receives a letter from the Social Security Administration indicating that the information the company submitted about an employee does not match the government’s records. That rule was later blocked by a federal judge, and the new supplemental rule aims to address the three issues cited by the judge for his decision.

Specifically, the judge questioned the agency’s change in position on what would constitute an employer’s “knowing violation” of immigration law. He also expressed concern that the DHS had exceeded its authority regarding anti-bias provisions in the rule and had failed to conduct a regulatory analysis as required by the Regulatory Flexibility Act.

DHS maintains that the supplemental rule adequately deals with the judge’s objections. The agency has also filed an appeal of the court’s decision and says it is pursuing the two paths simultaneously in order to resolve the situation as quickly as possible.

The public has until April 25, 2008, to comment on the supplemental rule.

 

  • For an update on the DHS “no match” rule and other immigration issues, don’t miss CBIA’s next HR Council meeting on Tuesday, April 29 in Hartford. To register or for more information.

 


Onsite health clinics becoming popular

Workplace health centers providing care for employees are growing in popularity, according to a survey by the consulting firm Watson Wyatt Worldwide.

The 2007/2008 Onsite Health Center Survey found that nearly one-third of companies have or plan to have an onsite health center by 2009, up from 27% in 2006. Among companies that have already set up onsite clinics, the most common motivation was a desire to improve the productivity of their employees.

Other key survey findings about workplace health clinics:

  • Preventive services such as immunizations and screenings are the most commonly available services. Many employers also offer wellness, disease management, lifestyle behavior change and coaching services.
  • Nearly all employers make the onsite health center services available to employees enrolled in their health plan. Three-quarters of companies provide services to part-time employees, including those not eligible to participate in the plan.
  • There are significant gaps in the integration of the onsite health center with other health and productivity programs. A number of companies cite this lack of integration as one of the top challenges in operating an onsite health center.
  • Despite offering the clinics to help increase productivity, most surveyed companies do not measure their onsite health center’s return on investment.

 


High court turns down retiree health care case

Ending eight years of litigation, the U.S. Supreme Court has refused to review a federal appeals court ruling that upheld an employer’s right to reduce health care benefits for retirees when they become eligible at age 65 for Medicare.

The court’s action, in effect, leaves intact a rule adopted by the Equal Employment Opportunity Commission (EEOC) that permits “coordination of retiree health benefits with Medicare.” The rule allows employers to maintain a two-tier system of retiree health care benefits, with younger retirees receiving richer benefits than Medicare-eligible retirees. The American Association of Retired Persons (AARP) challenged the EEOC rule in court, claiming that lower benefits for older retirees violated the federal Age Discrimination in Employment Act.

Employer advocates and unions alike disagreed with AARP, saying the rule encourages employers to maintain health care coverage for retirees. Without a compromise rule, they said, employers might equalize retiree health care benefits by reducing benefits for younger retirees or decide to drop all benefits for their former employees.


Most employees take “mental health days”

Nearly one-third of employees say they take “mental health days” to tend to family or relationship issues.

ComPsych a provider of employee assistance programs, asked 1,036 employees at client companies: “What would most likely cause you to take a ‘mental health day’ to recover or recharge?” The responses:

  • Family/relationship issues (30%)
  • Work stress/workload (20 %)
  • Personal issues such as legal, financial, other (15%)
  • Lack of physical energy/well being (12%)
  • Boredom, lack of motivation (5%)

With the growing complexities of family and personal life, it is not surprising that relationship and family issues top the list of reasons for checking out of work, says ComPsych. Whether the employee is married, a caregiver or single, relationship stress can be a major distraction at work. ComPsych says they see this every day in their work, with relationship problems consistently among the top reasons for calls to their employee assistance programs.


New rule on H-1B filings

U.S. Citizenship and Immigration Services (USCIS) has issued an interim rule that modifies the selection process for H-1B visas and prohibits employers from filing multiple H-1B petitions for the same worker. The agency says the goal of the new rule is to ensure that companies seeking H-1B visas subject to congressionally mandated numerical limits have an equal chance to employ an H-1B worker.

The H-1B visa program allows U.S. businesses to employ workers in certain occupations, such as scientists, engineers, and computer programmers, that require a minimum of a bachelor’s degree and the theoretical and practical application of highly specialized knowledge.

Under the new rule:

  • USCIS will now either deny or revoke multiple petitions filed by an employer for the same H-1B worker
  • USCIS will not refund filing fees for duplicative or multiple H-1B petitions
  • In years when USCIS implements a random selection process for petitions, USCIS will include petitions in the random selection process that are filed during the first five business days available for filing H-1B petitions for a given year, rather than just the first two days
  • If a petition incorrectly indicates that it is exempt from any of the H-1B numerical limits, the petition will be denied if no H-1B visa numbers are available; and filing fees will not be returned

The rule does not prevent related employers, such as a parent company and its subsidiary, from filing petitions on behalf of the same alien for different positions, based on legitimate business need.


Telecommuting Works! Telecommuting from the Employer’s Perspective

This seminar presents the benefits of telecommuting from the employer’s perspective, including bottom-line benefits, and also focuses on human resources issues and technology considerations. Thursday, April 17 in Gales Ferry or Wednesday, April 30 in Stamford.

 

 

Poster insert for military FMLA

The U.S. Department of Labor (DOL) has issued a notice that describes employees’ rights under the new military amendments to the federal Family and Medical Leave Act (FMLA). Employers should print the notice from the DOL’s Web site and post it in the workplace until the agency revises its official FMLA poster to include the military amendments.

The military amendments permit a spouse, son, daughter, parent, or next of kin to take up to 26 work weeks of leave to care for a member of the Armed Forces, including a member of the National Guard or Reserves, who is undergoing medical treatment, recuperation, or therapy, is otherwise in outpatient status, or is otherwise on the temporary disability retired list, for a serious injury or illness. This provision took effect on Jan. 28, 2008.

The amendments also let eligible employees take up to 12 weeks of FMLA leave for “any qualifying exigency” arising out of the fact that the spouse, or a son, daughter, or parent of the employee is on active duty or has been notified of an impending call or order to active duty in the Armed Forces in support of a contingency operation. This provision is not effective until the Secretary of Labor issues final regulations defining “any qualifying exigency.” In the interim, DOL encourages employers to provide this type of leave to qualifying employees.


Gen Y’s top concern: Financial security

Topping the career-concern list of Generation Y workers is their compensation and benefits, according to a survey by Robert Half International and Yahoo!HotJobs.

The survey examined the professional priorities of 1,000 of the most senior members of Generation Y, also known as the “Millennials” (aged 21-28). Asked to name their No. 1 career concern for the future, 33% named salary and health care/retirement benefits, 26% named job stability, and 23% said career satisfaction.

Gen Y workers want the best health care and retirement benefits employers can provide as well as defined career paths, says Robert Half. To recruit these professionals, firms should make these programs easy to understand, promote them in detail on the company’s Web site and highlight them during the interview process.

 


Record enforcement numbers for OFCCP

 

In Fiscal Year 2007, the Office of Federal Contract Compliance Programs (OFCCP) recovered a record $51,680,950 in back pay and annualized salary and benefits for a record 22,251 workers who had been subjected to unlawful employment discrimination.

Of that record enforcement result, 98% was collected in cases of systemic discrimination — those involving a widespread discriminatory practice or policy that affects a significant number of workers. About 35% of the recoveries came from cases referred to the Office of the Solicitor for enforcement litigation.

The nearly $52 million reflects a 78% increase over financial remedies obtained in FY 2001. This marks the third year that OFCCP has posted record enforcement numbers.


Sales survey: 4% raises expected

A survey from The Alexander Group shows 4% as the median increase in total target cash compensation planned for sales personnel in 2008.

According to the 2008 Sales Compensation Trends Survey of 165 companies, the year is shaping up to be “steady as we go,” with moderate revenue growth to go along with the moderate pay increase. Other highlights from the survey findings:

  • 4% was the median increase of incentive compensation payouts for salespeople in 2007, compared with 3.4% in 2006
  • 10% was the expected median revenue growth for 2008
  • 55% say correct goal setting is the toughest part of sales compensation
  • 63% use sales revenue as the primary performance measure.

The annual survey covers sales compensation budgets, staffing changes, program changes, quotas, equity plans, car allowances and more.

Designing Effective Sales Compensation Plans

Join us for a day long how-to on rewarding and promoting excellent sales performance: Designing Effective Sales Compensation Plans. Thursday, May 15, at CBIA in Hartford. For details or to register, go to http://www.cbia.com/training/genbus/SalesComp08.htm.


Drop in meth use among workers

The percentage of positive tests for methamphetamine among job applicants and workers in the general U.S. workforce dropped more than 22% between 2006 and 2007, says a report from Quest Diagnostics, a provider of employment-related drug testing services. The Quest data also show that positive tests for cocaine in the general U.S. workforce were down 19 percent between 2006 and 2007 and that overall drug use, among workers subject to drug testing, remains at an all-time low.

While positive methamphetamine tests have decreased, the use of amphetamine in the general workforce has increased slightly, by about 5%.

Methamphetamine and amphetamine are both types of stimulants typically used to increase alertness and relieve fatigue. Stimulants are also used for euphoric effects or to counteract the "down" feeling of tranquilizers or alcohol. Possible side effects of stimulants include increased heart and respiratory rates, elevated blood pressure, dilated pupils and decreased appetite. High doses may cause rapid or irregular heartbeat, loss of coordination or collapse. Indications of possible misuse may include excessive activity, talkativeness, irritability, argumentativeness or nervousness.

The fact that the data show an increase in amphetamines suggests that some workers might be replacing one stimulant drug for another in the larger drug class of amphetamines, says Quest.

The report is based on results from 8.4 million pre-employment, random, or for-cause workplace drug tests performed by Quest Diagnostics between January and December 2007.


Discrimination complaints up

The Equal Employment Opportunity Commission (EEOC) received a total of 82,792 private-sector discrimination charge filings last fiscal year, the highest volume of incoming charges since 2002 and the largest annual increase (9%) since the early 1990s.

Allegations of discrimination based on race, retaliation, and sex were the most frequently filed charges, continuing a long-term trend. Nearly all major charge categories showed double-digit percentage increases from the prior year —a rare occurrence. The jump in charge filings may be due to a combination of factors, says the EEOC, including greater awareness of the law, changing economic conditions, and increased diversity and demographic shifts in the labor force.

For the first time, retaliation was the second highest charge category (behind race), surpassing sex-based charges in total filings with EEOC offices nationwide. Historically, race has been the most frequently filed charge since the EEOC became operational in 1965.

During FY 2007, pregnancy charges surged to a record high level of 5,587, up 14% from the prior fiscal year’s record of 4,901. Sexual harassment filings increased for the first time since FY 2000, numbering 12,510 —up 4% from the prior fiscal year’s total of 12,025. A record 16% of sexual harassment charges were filed by men, up from 9% in the early 1990s.

The EEOC’s year-end enforcement data also show the agency recovered $345 million in monetary relief for job bias victims, up 26% from the prior year’s total of $274 million

 

HR Conference coming in May ... For an update on developing law in the discrimination and retaliation arena, don’t miss CBIA’s Annual HR Conference. For more information or to register, go to http://www.cbia.com/training/genbus/AnnualHRConference0508.htm.


Reminder: FMLA report due 4/1

Companies that employed 75 or more employees during the payroll week that included Oct. 1, 2006, need to file their Annual Family and Medical Leave Experience Report before April 1. The form should be completed online at the Department of Labor’s Web site and transmitted back to the agency.

Employers are required to report leaves of absence: for the birth or adoption of a child, to care for a seriously ill family member, or for the employee’s own serious illness. Leaves lasting fewer than five days or portions of leave exceeding sixteen weeks need not be reported.

 

High court defines ADEA “charge”

The U.S. Supreme Court has ruled that a group of former and current FedEx employees may proceed in court with their age discrimination lawsuit even though they did not first file a “formal” charge with the Equal Employment Opportunity Commission (EEOC).

In the case, a FedEx employee filed an Intake Questionnaire with the EEOC, rather than a Charge of Discrimination form, along with a six-page affidavit claiming age discrimination. The Age Discrimination in Employment Act (ADEA) requires the EEOC to provide employers with prompt notice of a charge, but the agency took no action on the questionnaire and did not notify FedEx. Several months later, the employee and some co-workers filed suit in federal court.

The ADEA requires that complainants file an EEOC “charge” — although the term is not defined — 60 days before filing a lawsuit. This gives the parties a chance to resolve the matter informally through mediation with the EEOC. The trial court ruled that the Intake Questionnaire was not a charge and dismissed the suit as untimely.

The appeals court reversed in favor of the employees, saying the questionnaire contained the information required by the EEOC interpretive regulations and therefore constituted a charge for purposes of the ADEA. The Supreme Court agreed and ruled that a filing constitutes a charge when, “taken as a whole, it can be construed as a request by the employee for the agency to take whatever action is necessary to vindicate her rights.” The Court pointed out that not every Intake Questionnaire will constitute a charge, but that this particular questionnaire, in conjunction with the affidavit, met the test.

The case has now been returned to the trial court for a decision on the merits of the discrimination claim, although the Supreme Court did indicate that the trial court might stay its proceedings to allow for the mediation process that should have taken place at the EEOC level. The ruling also urged the EEOC to revise its forms and procedures to avoid confusion in the future, a process that the agency has reportedly begun.

 


DOL introduces online retirement resource

The U.S. Department of Labor (DOL) has released a new online resource designed to make it easier for Americans to prepare for a financially secure future.

The agency developed a series of interactive worksheets as a companion to a 2006 publication entitled “Taking the Mystery Out of Retirement Planning.” Using the worksheets, individuals who are 10 to 15 years from retirement can calculate their income and savings as well as their projected expenses in retirement.

Although targeted to individuals approaching retirement, the worksheets and booklet are also useful for recent retirees, says DOL. The worksheets are available online at http://askebsa.dol.gov/retirementcalculator/UI/general.aspx

Free copies of the booklet are available by calling the Employee Benefits Security Administration toll-free at 866-444-3272 or online at www.dol.gov/ebsa/publications/nearretirement.html.

 


State seeks unpaid wages

The state attorney general’s office and the Department of Labor are taking steps to recover millions of dollars in unpaid wages and commissions for former employees of a national mortgage lending company.

The two agencies say they have filed a proof of claim in U.S. Bankruptcy Court in Delaware to recoup more than $2.6 million allegedly owed to more than 100 workers. The lending company filed for bankruptcy more than a year ago, laying off hundreds of employees in Connecticut and many more nationwide. More than 100 Connecticut employees claim they were never paid, in most cases thousands of dollars.

The attorney general’s office expects the unpaid wages and commissions to have priority among the company’s debts.

 


Most women work during pregnancy

A report from the U.S. Census Bureau shows that women today are more likely to work while pregnant, work longer into their pregnancies, and return to work sooner after giving birth than they did in the early 1960s.

The report compares employment and leave trends among women who were pregnant between 2001 and 2003 with data from earlier periods dating back to 1961.

Highlights from the report:

  • Two-thirds of women who had their first child between 2001 and 2003 worked during their pregnancy compared with just 44% who gave birth for the first time between 1961 and 1965.
  • Eighty percent of women who worked while pregnant between 2001 and 2003 worked until one month or less before their child’s birth compared with 35% who did so in 1961-1965.
  • In the early 1960s, 14% of all mothers with newborns were working six months later, increasing to 17% within a year. By 2000 - 2002, the corresponding percentages had risen to 55% and 64%.
  • In 2001 – 2003, 49% of first-time mothers who worked during pregnancy used paid leave before or after their child’s birth while 39% used unpaid leave. Twenty-five percent quit their jobs: 17% while they were pregnant and another 8% by 12 weeks after the child’s birth.
  • Sixty percent of mothers with a bachelor’s degree or more received paid leave benefits compared with 39% of mothers with a high school diploma and 22% of those with less than a high school education.

 


EEOC guidance on vets with
service-connected disabilities

The EEOC has issued two question-and-answer (Q&A) guides providing technical assistance for employers and veterans on workplace issues affecting veterans with service-connected disabilities.

The new guide for employers explains how protections for veterans with service-connected disabilities differ under the Americans with Disabilities Act (ADA) and the Uniformed Services Employment and Reemployment Rights Act (USERRA). The document further describes how the ADA in particular applies to recruiting, hiring, and accommodating veterans with service-connected disabilities.

The other new publication answers questions that veterans with service-connected disabilities may have about the protections they are entitled to when they seek to return to their former jobs or look to find their first, or new, civilian jobs. The document also explains changes or adjustments that veterans may need, because of their injuries, to apply for, or perform, a job, or to enjoy equal access to the workplace.

Each guide also includes a list of resources on where to find more information on USERRA and the ADA; public and private organizations that can assist employers who want to recruit and hire veterans or can help veterans who are seeking employment; and organizations and agencies that can help identify specific reasonable accommodations for veterans with service-related disabilities.

 


HR managers and gens X, Y, Z

Mark your calendar for Tuesday, March 25, 2008 – Generational Issues: What the HR manager needs to know about Mr. Gen X, Ms. Gen Y and Baby Z. This CBIA-member program will take place from 8:30 10:00 a.m. (registration at 8 a.m.) at CBIA offices in Hartford.

Strategically addressing the staffing and retention needs of their company’s workforce is a key responsibility of the HR manager. Understanding the motivators or drivers of the different generation of workers is key to achieving this goal. This session will provide an understanding of the differences among Gen X, Y and Z and how best to incorporate these difference into your staffing needs.
Presenter: Melanie Sinche, career counselor, Center for Professional Development, University of Hartford

To register contact Lise Cliche at 860-244-1900 or registrar@vbia.com.

OPEN TO CBIA MEMBERS ONLY: Cost is just $15.

 

DOL proposes FMLA changes

 Long-awaited revisions to the federal Family and Medical Leave Act (FMLA) have been proposed by the U.S. Department of Labor (DOL), with members of the public invited to consider and comment on the changes by April 11, 2008.

The proposal addresses several key areas of the FMLA, including:

  • Employer and employee notice requirements
  • The definition of “continuing treatment”
  • Substitution of paid time
  • Intermittent leave
  • Fitness for-duty certification and recertification.

In a major victory for employers, the proposal allows an employer to contact an employee’s health care provider directly without permission from the employee. The DOL has also completely revamped the WH-380 medical certification form, which had been a source of dissatisfaction among employers.

A section of the proposal also identifies several issues related to the recently enacted legislation that provides for expanded military FMLA leave and invites public comment.

 


Bored workers more damaging

Bored employees have a greater negative effect on an organization than employees who say they are overworked, according to Sirota Survey Intelligence, specialists in attitude research.

In a survey of more than 1 million employees, Sirota found that bored employees (those reporting “too little work”) are often doing work for which they are ill-suited or have jobs that are poorly designed. As a result, they are less satisfied with their jobs, finding them less challenging and poorer matches for their skills. Bored employees are also less proud of their employers, less innovative, and feel less valued compared with all other workers.

The survey also found that:

  • Feeling overworked is more prevalent (22% of workers) than feeling bored (14%).
  • Employees’ perceptions of having too much work spike during their second through fifth years with an employer, with 27% of employees with those years of experience saying they are overworked.

Sirota cautions that the complaints of both overworked and bored employees should be taken seriously. Complaints about being overworked can be an indication of poor work quality or work processes. It can also be difficult in certain circumstances to retain employees who feel they are overworked. But bored employees pose more serious consequences for a business, says Sirota, lowering morale and productivity, and draining resources.

 


Change in travel documents

The U.S. Department of Homeland Security is reminding the traveling public that U.S. and Canadian citizens are no longer permitted to enter the U.S. on the basis of an oral declaration of citizenship. Instead, travelers will be asked to prove their identity and citizenship by presenting documentation from a specified list of documents.

U.S. and Canadian citizen children ages 18 and under will need a birth certificate.

Travelers unable to produce appropriate documentation may be delayed as U.S. Customs and Border Protection officers attempt to verify identity and citizenship. The change took effect on Jan. 31.

 

 


EEOC’s anti-bias video spots

The Equal Employment Opportunity Commission (EEOC) has partnered with jazz great Wynton Marsalis to produce two public service announcements (PSAs) about workplace discrimination.

The two 30-second PSAs featuring Marsalis focus on the value of diversity in the workplace and the dangers of discrimination. The PSAs were produced in cooperation with Jazz at Lincoln Center and shot at their New York facility. The EEOC plans an aggressive push to air the PSAs, which are closed captioned for the hearing-impaired, on television and cable stations, on Web sites and on radio.

Racism continues to be the most frequent claim filed with the EEOC. The announcements should help heighten awareness of race and color discrimination as the agency advances its national initiative to bring a fresh approach to combating racism. Says the agency, the participation of Wynton Marsalis ensures that a broad audience will be apprised of our message.

 


NY finds misclassified workers

 The New York Department of Labor says a task force has found more than 2,000 workers misclassified as independent contractors, a situation that has been costing the state millions of dollars in lost revenue.

In its first four months, the Joint Enforcement Task Force on Worker Misclassification conducted 15 enforcement sweeps primarily targeting construction and restaurant worksites. These efforts revealed more than $19 million in unreported wages, another $3 million in underpayments owed to workers, and $1.2 million owed to the state Unemployment Insurance Trust fund. Asbestos, recordkeeping, and child labor violations were also uncovered.

The task force was created in September 2007 and is charged with reporting on its findings each February. Its first report recommends establishing a statewide standard for determining whether an individual is an employee or independent contractor.


EBSA guidance on wellness program rules

The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) has released a field assistance bulletin (FAB) that provides guidance to the agency’s national and regional offices about the department’s final wellness program rules.

In December 2006, the department issued final regulations relating to the wellness provisions of the Health Insurance Portability and Accountability Act (HIPAA). Since then, the department has received numerous questions about what types of health promotion or disease prevention programs must comply with those regulations and how a group health plan determines whether such a program is in compliance.

FAB 2008-02 provides further guidance in the form of a checklist. The checklist includes examples and tips on the applicability of the wellness program rules and, if the rules apply, five compliance criteria for determining whether a particular program complies.

FABs are part of the department’s ongoing compliance assistance program to help employers, plan officials and service providers, and others comply with ERISA. They are available on the Internet at www.dol.gov/ebsa.


How to build a 21st century skilled workforce

As an HR professional, it's imperative for you to be aware of the latest workforce development programs and practices, as well as significant challenges Connecticut educators face in producing skilled, educated workers that companies like yours need to thrive and survive.

To help equip you, CBIA, The United Illuminating Co., Capital Workforce Partners and The College of Technology Regional Center for Next Generation Manufacturing are presenting two conferences on the subject of Connecticut’s Challenge: Building a 21st-Century Skilled Workforce:

  • Wednesday, Feb. 27 at the Crowne Plaza Hotel in Cromwell
  • Thursday, March 6 at the Holiday Inn in Stamford

(For both conferences, 7:45 a.m. — Registration; and 8:15 a.m. – noon — Program)

This conference is worth 3.0 Strategic recertification credit hours toward PHR and SPHR recertification through the Human Resources Certification Institute (HRCI).

You'll see and hear the findings from CBIA’s latest survey on the availability of skilled workers in Connecticut, and examine challenges facing employers whose growth depends on a highly skilled workforce. Panels will focus on promising practices to close the educational achievement gap, reverse the trend known as “brain drain” and tap into nontraditional employment pools.

 

Special speakers:

  • Feb. 27 -- Mark McQuillan, commissioner, State Department of Education and Patricia Mayfield, Commissioner, Department of Labor.
  • March 6 -- Rae Rosen, assistant vice president and economist, Regional Affairs, Federal Reserve Bank of New York

Click here for more information or to register.

 

New military FMLA law

President Bush has signed a bill that amends the Family and Medical Leave Act (FMLA) to provide additional leave to families of service members, effective immediately.

The amendments are part of the National Defense Authorization Act of Fiscal Year 2008 (H.R 4986). The new provisions guarantee up to six months of leave for family members caring for military veterans injured while on active duty and up to 12 weeks of leave for family members of service members called up to active duty under certain circumstances.

The president had previously vetoed a similar bill (H.R.1585), but for reasons unrelated to the FMLA amendments. Seven states ( California, Illinois, Indiana, Maine, Minnesota, Nebraska, and New York) have passed state family military leave laws granting limited unpaid leave to the family members of service members.


Proposal on section 529 tuition programs

The Internal Revenue Service (IRS) has issued proposed rules to address the potential for abuse in Qualified Tuition Programs (QTP) under section 529 of the IRS Code. Comments from the public must be submitted by March 18.

The proposed rules provide a general anti-abuse rule that will apply when section 529 accounts are established or used for purposes of avoiding or evading transfer tax or for other purposes inconsistent with section 529 and the generally applicable income and transfer tax provisions of the code. The notice of proposed rulemaking also will include rules relating to the function and operation of QTPs and section 529 accounts.

Written comments should be sent to: Internal Revenue Service, Attn: CC:PA:LPD:PR (REG-127127-05), room 5203, POB 7604 Ben Franklin Station, Washington, DC 20044. Comments may also be sent electronically via the Federal eRulemaking Portal at www.regulations.gov (IRS-REG-127127-05).


Survey: Fewer workers would date co-worker

Thirty six percent of workers would consider dating a co-worker if they were single, down from 42% in 2005 and 39% in 2006 and 2007, according to a survey by the staffing firm Spherion. Female workers were less likely to consider dating co-workers, with only 28% saying they would, compared with 43% of men.

However, the fear that a workplace romance could jeopardize one’s career appears to be eroding alongside interest in doing so. Thirty percent of workers feel that openly dating a co-worker would jeopardize their job security or advancement opportunities, down from 41% in 2007. Of the 39% of workers who reported actually having had a workplace romance, 39% say it was conducted in the open.

An increasing number of employers have begun to acknowledge the potential for and existence of workplace dating and have put measures in place to properly manage these relationships, says Spherion. This includes training workers, and providing guidelines and written policies. As a result, workers view on-the-job dating as less damaging to their job security or career advancement as long as they follow the guidelines.

Among workers who have had a workplace romance, 17% say they dated for several years and 22% of the romances resulted in marriage.


Signing bonuses for college grads

Competition for new college graduate hires remains robust, and many employers expect to use signing bonuses to sweeten the deal, according to results of the Job Outlook 2008 survey by the National Association of Colleges and Employers (NACE).

Nearly 54% of the employers responding to the annual survey said they will offer signing bonuses to potential hires, a sizeable increase over the 47% who reported that they expected to offer bonuses in 2007.

Moreover, NACE studies suggest that employers tend to underestimate their need to use signing bonuses. Last year approximately 47% of employers said they planned to offer signing bonuses and ultimately, more than 54% used them. Similarly, in NACE’s 2006 survey, 44% of employers expected to offer bonuses and 47% ended up doing so.

If that pattern holds, says NACE, more than 60% of employers could use signing bonuses to attract and hire 2008 graduates.

The survey also showed that the size of the average bonus has increased, underscoring the level of competition employers are facing. Among respondents who plan to offer a bonus to all entry-level college hires, the average signing bonus is $4,450, a 25% increase over last year’s average of $3,568.
However, two-thirds of those using bonuses expect to offer them only to selected candidates, and the average bonus offers vary according to a number of factors, including the candidate’s academic degree and degree level.


Time to post injury summary

The Occupational Safety and Health Administration (OSHA) is reminding employers about the requirement to post the OSHA 300A summary of the total number of work-related injuries and illnesses that occurred last year. Only the 300A summary — not the OSHA 300 log — must be posted from Feb. 1 to April 30.

The form should be posted in a common area where other employee notices are usually displayed. A copy of the summary must also be made available to workers who move from worksite to worksite or who do not report to any fixed worksite on a regular basis.

The summary must include the total number of job-related injuries and illnesses that occurred in 2007 and were logged on the OSHA 300. To help calculate incidence rates, information about the annual average number of employees and total hours worked during the calendar year is also required. If a company recorded no injuries or illnesses in 2007, the employer must enter “zero” on the total line. The form must be signed and certified by a company executive.

Employers with 10 or fewer employees and employers in the retail, services, financial, insurance and real estate industries are normally exempt from OSHA recordkeeping and posting requirements. A complete list of exempt industries can be found on OSHA’s Web site.


CBIA's On-site Training

Did you know that for five or more employees, CBIA can save you time and money by conducting on-site training at your facility or in combination with another company that has similar human resources training needs?

CBIA can tailor a training session for the size, makeup and needs of your supervisory or management staff. Because you pay a flat fee for each session, the more employees who attend, the more economical the cost per person. Fees vary based on the length and number of sessions requested.

The right training can keep your company out of trouble, minimize the number and severity of disputes, boost employee morale, and increase productivity. Our expertise covers a variety of key employment compliance issues.

Training topics include:

  • Sexual Harassment Prevention
  • Basic Employment Law Principles
  • Drug and Alcohol Abuse Prevention and Intervention
  • Workplace Ethics
  • Family and Medical Leave
  • Americans with Disabilities Act (ADA) Reasonable Accommodation

If you have fewer than five supervisors or managers who need training, consider the value of including nonsupervisory staff in training sessions. We have developed effective, shortened formats for mixed groups of employees.

For more information, contact Mark Soycher at 860-244-1138 or mark.soycher@cbia.com.


What to Do About Personnel Problems in Connecticut

For the first time, CBIA is partnering with Connecticut Human Resource Reports LLC to offer members one of the most comprehensive sources on HR issues in Connecticut.

What to Do About Personnel Problems in Connecticut is a popular guide to employment law and HR practices that delivers clear, straightforward guidance for handling the Connecticut labor and employment laws that apply to your organization. The guide gives you Connecticut specific answers to all your questions and also tells you how our state law differs from the federal.  It’s a single resource that offers guidance in hundreds of key areas and is guaranteed to make your job easier.

Updated regularly, the guide offers information on relevant topics such as:

  • Overtime pay
  • FMLA leave
  • Discipline and discharge
  • Record keeping
  • Safety and health
  • Workers’ compensation

What to Do About Personnel Problems in Connecticut is available to CBIA members for only $350. That’s a $50 savings off the regular price. For more information or to order, contact Lise Cliche at 860-244-1977 or e-mail her at clichel@cbia.com.

$6.2M settlement in union bias case

A federal court has approved a $6.2 million partial settlement for black and Hispanic sheet metal workers who accused their union of discrimination.

The Equal Employment Opportunity Commission (EEOC) had sued Local 28 of the Sheet Metal Workers’ International Association in New York City for underpaying the workers for many years because of their race and national origin. The settlement will compensate minority workers for lost wages for the years 1984 to 1991, while litigation continues on behalf of workers claiming discrimination after 1991.

The parties have also agreed to significant changes in the union’s job referral program as well as monitoring systems aimed at equalizing union members’ access to job opportunities. The EEOC called the partial settlement “historic.”


Governor seeking business community's
input on CHRO

CBIA is participating on an advisory board appointed by Gov. Rell to review and possibly restructure the state’s Commission on Human Rights and Opportunities (CHRO).

The governor formed the panel because of widespread concerns about the agency’s backlog of complaints and high caseload volume for its investigators. CHRO is responsible for enforcing discrimination laws in Connecticut, with a budget of $8 million and staff of 103 full-time employees.

Made up of a diverse group of stakeholders with interest and dealings with CHRO and affirmative action in state agencies, the advisory board is seeking input from the business community about CHRO and its handling of employment discrimination claims

To comment, or for more information, contact Kia Murrell, CBIA’s representative to the advisory board, at 860-244-1931, or murrellk@cbia.com.

 


FMLA reporting form due 4/1

Employers subject to the state Family and Medical Leave Act (FMLA) are asked to complete the Labor Dept’s Annual Family and Medical Leave Experience Report and transmit it online by April 4, 2008.

The form asks for information about the types and total weeks of FMLA leave taken by a company’s employees during calendar year 2007. It should be completed by any employer that had 75 or more employees in Connecticut during the payroll week that included Oct. 1, 2006.

 

Leaves that need not be reported:

  • Any family and medical leave lasting less than five days
  • Portions of leave exceeding 16 weeks

Leaves that should be reported:

      • All other FMLA time taken for the birth or adoption of a child or the serious illness of the employee or employee’s family member. Covered employers that had no reportable leaves must still complete the form and provide that information.

Ads highlight importance of HR

The Society for Human Resource Management (SHRM) has launched a national communications campaign designed to highlight the growing business need for talented HR professionals.

The first installment is a 30-second TV spot called “Most Important Asset,” which is airing on CNN during the network’s election coverage and on select Fox business programming. The new ad underscores the fact that “people policies” — and the HR professionals who drive them — are more critical to business success than ever before. A print version will appear in business publications.

In today’s knowledge-based economy, people are the most important asset, says SHRM. It’s the job of the HR professional to manage what is now mission-critical — recruitment, training, and retention policies — to keep their organizations competitive in the global marketplace.

 


Report to feds: Hire more workers with disabilities

The federal government falls far short of being the “employer of choice” for individuals with serious disabilities, according to a report by the EEOC.

The report shows the percentage of federal employees with “targeted” disabilities has declined each year since reaching a peak of 1.24% in fiscal year 1994, despite initiatives from numerous administrations. In FY 2006, the participation rate of individuals with disabilities declined to 0.94% of the federal government’s total workforce, the lowest rate in more than 20 years. Targeted disabilities include deafness, blindness, missing extremities, partial or complete paralysis, convulsive disorders, mental retardation, mental illness, and distortion of the limb and/or spine.

The EEOC says the report offers practical solutions that federal agencies can implement immediately to improve their recruiting, hiring and advancement of people with severe disabilities. Among the recommendations:

      • Establish hiring goals for persons with targeted disabilities
      • Implement mandatory training for all management officials
      • Develop procedures to ensure management accountability as well as verification that goals are met
      • Include a diversity element in senior leaders’ performance appraisal

The report also highlights measures taken by agencies that have successfully embraced the issue, as well as policies and practices that may serve as barriers for individuals with disabilities.

 


Parental perks at work

A survey by the staffing firm OfficeTeam finds that 62% of companies have made policy changes in the past five years to better accommodate working parents.

The survey was based on telephone interviews with 150 randomly selected senior executives from among the nation’s 1,000 largest companies.

Programs that support work-life balance are attractive to employees, especially members of the “sandwich generation,” says OfficeTeam. For smaller companies that may not have as much flexibility in adjusting salaries as larger organizations, offering these types of benefits can level the playing field.

OfficeTeam also noted that working parents aren’t the only ones who benefit from perks such as telecommuting, flextime, extended family leave, and elder care. Many employees are juggling multiple priorities and appreciate these types of programs, says the staffing firm. Companies should actively promote these offerings to all prospective hires, both in job postings and during the employment interview.

New rule on coordinating retiree health care

The Equal Employment Opportunity Commission (EEOC) has issued a final rule that allows employers to coordinate retiree health benefits with Medicare without running afoul of the Age Discrimination in Employment Act (ADEA).

The EEOC proposed the rule in response to a decision in 2000 by a federal appeals court in Erie County Retirees Association v. County of Erie. In the case, the court ruled that the ADEA requires health insurance benefits received by Medicare eligible retirees to be the same, or cost the employer the same, as the health benefits received by younger retirees.

After the decision, labor and business groups told the EEOC that complying with Eric County would force companies to reduce or eliminate the retiree benefits they were providing.

According to the EEOC, employers who provide retiree health benefits generally “coordinate” those benefits with Medicare by supplementing the government health care or by offering a “bridge” benefit to retirees not yet Medicare-eligible. Until the 2000 court interpretation, employers believed the ADEA permitted them to coordinate with Medicare any retiree health benefits they provided without having to ensure that the benefits received by Medicare-eligible retirees were the same as those received by younger retirees.

The new regulation exempts this common employer practice from ADEA coverage.


DOL’s record wage recovery

The U.S. Department of Labor’s Wage and Hour Division (WHD) recouped more than $220,000,000 in back wages for workers in fiscal year 2007, the highest amount ever.

The recovered wages will go to 341,624 workers, the second largest number since 1993. Since FY 2000, WHD has recouped more than $1.25 billion for nearly two million workers.

The agency says it has placed a major focus on bringing very large employers into compliance. Numerous employers have made multi-million dollar payments, in two instances to more than 20,000 workers. Earlier this year, WHD obtained the largest private sector settlement in the agency’s history.

 


Ford, union to pay $1.6M in race bias case

Ford Motor Co., along with two related companies and a national union, will pay $1.6 million to a class of 700 African Americans to settle a lawsuit brought by the Equal Employment Opportunity Commission (EEOC).

The EEOC had charged that a written test used by Ford, Visteon and Automotive Components Holdings (ACH) to determine the eligibility of hourly employees for a skilled trades apprenticeship program had a disproportionately negative impact on African Americans. The National United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) was also a defendant in the case because the test was used to select apprentices for the Ford-UAW Apprenticeship Program and the lawsuit settlement affects people covered by the union agreement.

The class members include individuals nationwide who have taken the test since Jan. 1, 1997, and were not placed on the Ford apprentice list. In addition to the monetary relief, the defendants have agreed to place 55 African American test-takers on the apprentice lists. They also will have a jointly selected expert develop a new selection method for the apprenticeship program, and will comply with detailed reporting and monitoring requirements.

The EEOC recently issued an Employment Testing Fact Sheet that cites the Ford case. The fact sheet does not break new ground, but reminds employers to use care when deciding what tests to use and how to score them.

 


More regs on Pension Protection Act

The Treasury Department and the Internal Revenue Service (IRS) have issued proposed regulations that provide guidance to employers sponsoring single-employer defined benefit plans regarding the measurement of pension assets and liabilities under the new funding rules enacted as part of the Pension Protection Act of 2006.

These new regulations — together with proposed regulations related to mortality issued in May, and those relating to funding balances and funding-based benefit limitations issued in August; yield curve guidance issued in October; and guidance on lump-sum determinations issued in November — will help plan sponsors determine the contribution requirements that apply to their defined benefit plans for the first year that the new funding rules apply.

Although the new funding rules are generally effective for plan years beginning on or after Jan. 1, 2008, these regulations are proposed to be effective for plan years beginning on or after Jan. 1, 2009. However, plan sponsors can rely on these proposed regulations for purposes of satisfying the requirements of section 403 for plan years beginning in 2008.

 


President vetoes FMLA amendment

 President Bush has vetoed a bill that would have expanded the Family and Medical Leave Act (FMLA) to provide additional leave to families of service members.

The FMLA amendments were part of the 2008 National Defense Authorization Act (H.R. 1585), which Congress approved overwhelmingly. The provisions would have guaranteed up to six months of leave for family members caring for military veterans injured while on active duty and up to 12 weeks of leave for family members of service members called up to active duty under certain circumstances.

Seven states ( California, Illinois, Indiana, Maine, Minnesota, Nebraska, and New York) have passed state family military leave laws granting limited unpaid leave to the family members of service members.