June 2013 Newsletter

Welcome to the Four Point HR Newsletter

Business Disaster Planning

What would happen to your business if it were in the direct path of the Midwest tornados or if your office building were swept into the Florida wildfires?  Do you know what to do if a disaster were to strike your business?  Would your business be able to survive?  If so, how?  What steps are in place to ensure the business will be able to continue? If you have not thought about it you should and start a plan in motion.  Disasters can strike in many forms in varying levels of severity:

  • The death of the owner of the business
  • A flu epidemic causing 50-75% of your workforce to call out sick
  • A fire in your office building.
  • A natural disaster such as a flood, tornado, hurricane, or earthquake
  • An act of terror
  • An Internet or telephone outage

Optimally, a Disaster Plan must be created, reviewed and practiced in order for your business to survive a disaster.  The Small Business Administration (www.SBA.gov/content/disaster-planning) says that, according to the Institute for Business and Home Safety, an estimated 25% of businesses do not reopen following a major disaster.

Develop a Disaster Plan that fits your business.  Identify what disasters could affect your business and come up with a plan of action to be carried out in case your business is affected by that disaster.  You will need to identify your critical components such as:

  • Staff – How to replace staff that cannot make it into work or work remotely
  • Data and Computer System – Do you have current backups?  Do they work?
  • Communication with Employees, Customers and Vendors – How will you communicate if your business telephone system is down?  Do you have a list of phone numbers that is readily accessible?  Is the list up to date?
  • Physical Work Space – How long will you be displaced from your location?  Where can you set up your business quickly to get it up and running?
  • Insurance – Do you have adequate business insurance coverage?  Has it been reviewed annually?  Does your insurance company have wire instructions to your financial institution in case a paper check can not be delivered to your location?
  • Equipment – Safeguard your equipment in case of an impending disaster.  Where would you store your fleet of trucks in case a flood warning was given for your area?

Listed below are a few agencies that have publications and programs to assist you in the planning process.  So, get started.

  • SBA (Small Business Administration) has created “Prepare My Business” (http://www.preparemybusiness.org/).  This site was created to help small business owners start the planning process, become aware and educated, and assist with checklists and templates for risk assessments of various disasters.
  • “Prepare My Business” also offers free monthly webinars and lists current and archived offerings. (http://www.preparemybusiness.org/education).
  • Department of Homeland Security (http://www.ready.gov/) has a section on its website called “Ready Business” which takes you through four topic areas – Overview, Plan to Stay in Business, Talk to your People, and Protect your Investment.  You can order or download all “Ready Business” publications on this website.
  • FEMA (Federal Emergency Management Administration) has resources, information and publications to help the business owner at www.fema.gov.  FEMA’s website has the most up to date information and links to other agencies that offer assistance in times of disasters.  The FEMA library offers publications entitled “Protect Your Business from All Natural Hazards”.

Five Overtime Mistakes That Could Cost You

Do you know the proper way to calculate overtime for your employees?  Do your employees know when they are entitled to overtime?  In 2010, the Department of Labor launched a campaign encouraging employees to contact the DOL if they believe they are being paid incorrectly.  They hired additional investigators to enforce overtime requirements and wage and hour audits are on the rise.

Wage and hour auditors inspect payroll records for both current and past employees and will generally audit for the past two years, although they can go back three years if they believe an employer willfully violated overtime rules. Following are five of the most common mistakes an employer can make when calculating overtime.

  1. Not Paying Overtime

    Non-exempt employees are entitled to overtime for hours worked above 40.00 hours in a workweek.  These hours should be paid at time and a half of the employees’ regular rate of pay.  An exception to this is employees in California – they are paid overtime for hours in excess of 8.00 each day.

  2. Employee Classification

    Classifying employees as exempt from overtime earnings can be tricky.  The FLSA (Fair Labor Standards Act) requires that each meet a salary and duties test before being classified as exempt.  Classifying a job as exempt or non-exempt can be tricky and needs to be based on actual job duties.  If there are any questions, it is best to get advice from legal professionals.

  3. Not Paying Salaried Non-Exempt Employees For Overtime

    Employers often think that an employee that is paid a salary is not entitled to overtime.  However, that is not always the case.  A non-exempt employee can be paid a salary, but would still be entitles to overtime for hours worked in excess of 40.00 in a week.

  4. Allowing Employees To Work Off The Clock

    Employers are responsible for paying employees for all hours worked.  For example, if a non-exempt employee checks emails while at home, often using a smart phone, these are considered hours worked and must be compensated.

  5. Not Keeping Accurate Timesheets

    The DOL does not require a specific type of timesheet, but it does require that time sheets for non-exempt employees show the hours worked each day and the total for each week.  They also suggest that employees sign their timesheets each week to avoid any disputes over time paid.  Timesheets should be kept with the payroll records for a minimum of three years.

This article is informational in nature and is not intended to offer legal advice. If your business is audited, it is strongly suggested that you seek legal counsel.

Problem Employees? Take Another Look At Corrective Action

All Four Point HR clients should be using a Corrective Action process for all employee issues.  In the past, companies used a Disciplinary Form which was not nearly detailed enough and was usually one sided.  (In most cases it only stated what the employee was doing wrong.)

Today, Four Point HR clients have access to a full Corrective Action Process Document that will allow managers to correct inappropriate behavior by spelling out what the employee needs to do differently and what the Manager will do to support that turnaround—usually just good follow up.

A proper Corrective Action document always states at least two things:

  • The document must clearly allow you to describe the problem that exists and why it is a problem for the business.
  • The document must also state the steps that the employee needs to take in order to become fully satisfactory again.

Four Point HR’s new process will also allow you to take the ‘wiggle room’ out of the equation. Previously, the forms did not encourage managers to tighten up the warnings, and what we heard most often is that getting the employee to “sign the document” after the discussion, was nearly impossible.

What the Corrective Action document does is work only from the facts with all emotion taken out of the equation.  There should be no ambiguity and no uncertainty in the Issues Summary.  Additionally, where management can state how the issue impacted the business, it bears an even stronger argument and no chance for the employee to argue about the warning.  Some of the recent corrective actions I have seen fall into various categories:

  •  It may be that the employee simply broke policy and that you cannot allow the employee to break policy or all other employee will want the same “opportunity”.   (How often do you hear the good employees say, can I come in late too?)
  • It may be that the error or issue cost the business money. Even if the issue concerns one employee not arriving on time (a tardy/policy issue), but someone else had to wait for the employee to show up to give them an update on a project or assignment, that equates to overtime costs as well.  (In this case there would be two issues – tardiness and unnecessary overtime – and both impact the business.)
  • It may be something as simple as not greeting a client correctly, or not responding timely to an issue, and that may impact client retention.

Whatever the facts are, use them to detail the issues so they are easily understood.  Then by using our Corrective Action examples, you can also ensure that you have timely follow-up and that you move from a Documented Verbal Warning, to a Written Warning, and finally to a Final Written Warning smoothly and easily.  The next infraction would, of course, mean termination.

Another important note:  Many mangers think that you must give a specific amount of time to allow the employee to show change.  (Often, managers ask if they need to give the employee at least 30 days.)  Bottom line here is simple:  The amount of time you need to give to an employee to show change is equal to the amount of time it takes for them to make the change.

Example:  If someone is late on Monday, can they be on time on Tuesday?  You bet!  And, it’s up to you to hold them accountable when you ask them to make a change.  If this occurs, even the next day, you must move to the next step in the Corrective Action plan.  While I do not like to see it happen, I have seen employees written up for tardiness on Monday and terminated by Friday.  As long as the corrective Action Plan follows the guidelines, you should be good to go.

Finally, if you are unsure about the warning, call Kathryn Schene – Four Point HR’s Director of Human Resources for review.  It usually takes only a few minutes.  If you have not yet requested this process document, email Kathryn at kschene@fourpointhr.com.

Under normal circumstances, you would complete a first draft of the Documented Verbal Warning and if you feel like you missed any of the appropriate clauses, or you simply want to ensure that you have a “tight” document, send it to: kschene@fourpointhr.com.  We are always happy to do a quick review.

Hiring Young Workers For Summer Jobs

With schools getting ready to close out the academic year, many employers will be hiring young workers for the summer. Many new workers, most under the age of 25, are preparing to enter the workforce for the first time. While an asset to your organization, this demographic is twice as likely to be injured on the job than older workers and are often unaware of hazards in the workplace. Employers can prevent and reduce workplace injuries for all workers by stressing safety and good work habits in the workplace at all times. Supervisors have the greatest opportunity to protect young workers and influence their work habits.

Employer Responsibilities For Young Workers

  • Understand and comply with the relevant federal and state child labor laws. For example, these laws prohibit youth from working certain hours and from performing dangerous/hazardous work.
  • Ensure that young workers receive training to recognize hazards and are competent in safe work practices. Training should be in a language and vocabulary that workers can understand and should include prevention of fires, accidents and violent situations and what to do if injured.
  • Implement a mentoring or buddy system for new young workers. Have an adult or experienced young worker answer questions and help the new young worker learn the ropes of a new job.
  • Encourage young workers to ask questions about tasks or procedures that are unclear or not understood. Tell them whom to ask.
  • Employers must be mindful of the unique aspects of communicating with young workers.
  • Ensure that equipment operated by young workers is both legal and safe for them to use. Employers should label equipment that young workers are not allowed to operate.
  • Tell young workers what to do if they get hurt on the job.
  • Provide the required personal protective equipment (PPE). Provide training on proper training on the use of PPE.

Information for this article was supplied by OSHA. For more information on employee safety, please contact the Risk Management Department at Four Point HR.

Key Issues To Watch – Health Insurance Exchanges

The two biggest challenges to watch in the design and implementation of the exchange include; (1) commutating complex information to the consumer and (2) measuring, monitoring and managing performance.

Commutating Complex Information to the Consumer:

It is difficult to overstate the challenge of communicating effectively with the many and varied people likely to appear at the exchange’s virtual door.  The information itself is complex—various plans, multiple benefit levels, and new eligibility criteria for Medicaid and premium subsidies.  Prospective enrollees need to choose whether to obtain coverage through the private non-group market or through the exchange, understand their options, and align their choices with their values and preferences.

Yet, many new enrollees will be previously uninsured people unfamiliar with complex insurance coverage and will likely be poorer, less educated, and more racially and ethnically diverse than the commercially insured population.  These newcomers to the insurance market will probably also include young adults who see little need for health insurance even though law requires it, high risk individuals with pre-existing conditions, and low and moderate income single adults and families whose house hold income exceeds the state Medicaid threshold but find monthly premiums unaffordable.  To meet the challenges ahead, exchanges must provide added support and make sure it is culturally and linguistically appropriate.

Measuring, Monitoring & Managing Performance:

Providing exchanges with timely, accurate, easily accessible information on key performance metrics will allow these new entities to track and report their progress toward meeting major new responsibilities.  To that end, the Centers for Medicare & Medicaid Services has commissioned a quality rating system and an exchange enrollee satisfaction survey to facilitate comparison of qualified health plans within an exchange and across exchanges in different geographic area with distinct approaches to structure and governance.  Such information can assist regulators with oversight responsibilities.

The natural experiment that is unfolding with the launching of state-based exchanges, partnership exchanges, and a massive federally- facilitated exchange, presents an opportunity to learn from all states implementation and to assess the differential effects of exchange structures on cost, quality, patient experience, and other key outcomes.

This year should certainly be a fascinating one for healthcare as that experiment evolves.  Exchanges have the potential to not only expand coverage but also transform it; increasing consumer involvement in health care might in turn to higher- quality, more efficient care for Americans for years to come.

Upcoming Events – Free Webinars

Controlling Workers’ Comp Claims

June 5, 2013, 10AM EST

Phil Herron – President, Four Point HR

When it is a priority for management, safety becomes top of mind throughout the organization and a part of the fabric of everyday operations. Safety is a critical part of standard operations, and you will learn tips to keep safety top of mind and critical steps to implement a safety practice in your company. Webinar agenda includes:

– Who Is Responsible For Safety?

– Review of The 7 Critical Steps In Creating A Safety Plan

– Avoiding the Top 3 Safety Hazards

https://student.gototraining.com/r/8159564100869159168

Successful Separations

June 19, 2013, 10AM EST

Kathryn Schene, Director of HR, Four Point HR

Successful Separations looks at the necessary steps Managers should take for resignations, terminations or layoffs to ensure that clients have the necessary paperwork to successfully challenge unemployment claims.

https://student.gototraining.com/r/3845834738452817920