What To Include on a Pay Stub

In California (Labor Code 226), failure to provide any one of these items can subject you to fines calculated on each pay period up to a total of $4,000.00 per employee – plus attorneys' fees and costs.

• Gross wages earned;
• Total hours worked by the employee (unless properly exempt from overtime);
• The number of piece-rate units earned and any applicable piece rate if the employee is paid on a piece-rate basis;
• All deductions (all deductions made on written agreement of the employee may be aggregated and shown as one item);
• Net wages earned;
• The inclusive dates of the period for which the employee is paid;
• The name of the employee and the last four digits of the social security number or employee identification number – not the entire social security number;
• The name and address of the legal entity that is the employer; and
• All applicable hourly rates in effect during the pay period and the corresponding number of hours worked at each hourly rate.

According to our friends at Fisher & Phillips:

California Labor Code 226 is not a recent statute, but employees have begun regularly including claims under this statute in many actions filed against employers...This is true low-hanging fruit on the litigation tree.

Benefits of Being a Kind Manager

Successful managers practice the golden rule.

And when managers treat employees with respect and decency, superior team performance is the result.

The American Management Association came out with a survey that illustrates how a boss's character affects employee performance and retention rates.

• 84% of employees who report to 'kind' managers plan to work for their company for a long time;
• Whereas only 47% of employees who report to bullies agreed.

Managing employee turnover - especially in troubled economic times - can be as simply as applying the golden rule.

When Women Work For Women

A new study by the University of Toronto says women who have to answer to a female supervisor feel more stressed than if their superior is male. They suffer from far more depression, insomnia, headaches and heartburn than if their boss is a man.

But for male workers, the sex of their manager makes no difference.

Scott Flander, writing in HR Executive Online, quotes experts as saying it may have to do with the fact that many women -- bosses and subordinates alike -- feel more vulnerable in their jobs than men do. And they say HR leaders need to work harder to change that.

My advice is generally gender neutral:

• Train your managers in the fundamentals of management and leadership;
• Conduct Employee Satisfaction Assessments;
• As a leader of your company, make sure to drive the concept to all employees of "Managing Up".

And become intimately involved in the relationships all of your managers have with their employees.

Amendments to the Americans With Disabilities Act

President Bush recently signed some significant amendments to the Americans With Disabilities Act (ADA).

As usual with such legislation, the burden on employers will ultimately be adjudicated in the courts, with little specificity as to direction an employer should take.

Here's an exerpt from a recent article by Jackson Lewis:

With the ADAAA going into effect on January 1, 2009, now is the time for employers to review existing procedures for ADA compliance at every stage, including hiring, medical testing, accommodation, leave and termination. Employers must prepare to inject flexibility into their policies and practices to meet the ADA’s demanding standard for reasonable accommodations. According to Mr. Alvarez, “Employers should train supervisors on individualized assessments and develop protocols or guidelines for responding to workplace limitations posed by injuries or illnesses. Forget about trying to discern whether someone meets the ADA definition of ‘disability’ – it’s a litigation issue at best, and, in most cases, a losing one.”

Among other things, Mr. Alvarez suggests employers review job descriptions since they are frequently a starting point for an individualized assessment. Employers also should consider implementing a formalized process for addressing reasonable accommodation requests or reviewing reasonable accommodation procedures already in place. Employers skilled in “individualized assessment” often rely on forms, internal guidelines, or template letters to help facilitate communication with individuals with disabilities and their healthcare providers. These practices will become both more common and indispensable as employers grapple with a more demanding and relevant ADA.

Nevada Company Pays $425,000 To Settle Sex Harassment/Retaliation

What's so troubling about this case is not the sexual harassment - which is offensive enough - but the retaliation. Attorneys are finding it much easier to prove retaliation charges than harassment charges. Almost anything done by an employer after harassment is alleged can be construed as harassment.

Also, you would expect to see cases like this in California rather than Nevada. With the economy in Nevada - especially Southern Nevada - sinking - all it takes is one mistake to end your business. Don't be like Scolari's.

Scolari’s Warehouse Markets will pay $425,000 and furnish other relief to settle a class sexual harassment and retaliation lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced on September 5.

The EEOC charged in its lawsuit that 19 female employees, several of whom were teenagers at the time, were subjected to repeated and sometimes severe sexual harassment by the company’s senior officers across multiple stores in the Reno area. The EEOC asserted that Scolari’s senior officers and managers inappropriately touched female employees, propositioned them, made lewd comments and passed around naked photos of themselves, among other acts. In addition, the EEOC charged that Scolari’s management failed to address and correct the unlawful conduct, even when the victims complained about it. Instead, the women were fired or were forced to abandon their jobs after they complained about the harassment.

All this alleged conduct violates Title VII of the Civil Rights Act of 1964. The EEOC filed suit in U.S. District Court for the Northern District of Nevada after first attempting to reach a voluntary settlement (EEOC v. Scolari’s Warehouse Markets, CV 04-229 DAE - RAM). A consent decree setting forth the terms of the agreement was approved by the court on Sept. 5.

Under the three-year consent decree resolving the case, Scolari’s agreed to pay $425,000 to the employees identified by the EEOC to have been sexually harassed or retaliated against. As part of the injunctive relief, Scolari’s further agreed to provide training to all employees; provide reports to the EEOC regarding its employment practices for a period of three years; and, to hire a consultant to review its harassment policies and procedures.

“In a case like this, where several of the victims were young women new to the work force, victims of harassment often feel further isolated and marginalized,” said EEOC Los Angeles Regional Attorney Anna Y. Park. “This case shows that employers need to investigate and act on complaints of harassment before the problem mushrooms.”

EEOC’s Los Angeles District Director Olophius Perry added, “Nevada employers need to be vigilant in protecting workers who have the courage to speak out against harassment. The EEOC is determined to protect the civil rights of all workers, and that includes protecting their right to protest illegal mistreatment.”

Managing Your Boss

I've written frequently over the past few years about the need to Manage Up. In order to succeed and grow as a manager - as well as getting your employees to equally succeed, it's essential to know how to manage your boss.

Susan M. Heathfield, writing for the HR Daily Advisor, shares some tips (you can read the article here) - and I'm taking the liberty of adding my own comments to those tips.

1. Work to develop a positive relationship.
Any successful relationship - whether professional or personal - requires effort. I've worked for people I couldn't find any common ground with. The relationship deterioriated to the point that if he said the sky was blue, I'd disagree, just on principal. Then at a seminar one day, we were asked to name the most ethical person we'd ever worked with. To our mutual surprise, we named the same person. We discussed it and were able to build a positive relationship from there.

2. Work from the boss's viewpoint.
Just as you're in it for you, your boss is in it for him/herself as well. And since they're the boss, what they say ultimately goes. Find out what their goals are and help in attaining those goals.

3. Look for the best in your boss.
You're not going to change your boss (or your partner, for that matter), so stop trying. You need to adapt to their style and behavior, not the other way around.

4. Learn from the boss.
Whether you like or respect your boss, there are things you can learn from them. Some of the most valuable management skills I've learned are from bosses I didn't like or respect. In learning what I didn't like, I was able to avoid those characteristics in my subsequent leadership roles.

5. Ask for feedback.
Don't rely on the possibility that your boss will give you feedback - ask him or her for it frequently. Bosses should like playing the mentor role, and will be able to work better with you once they've communicated their feedback to you.

6. Value your boss's time.
Schedule meetings, don't interrupt.

7. Accept that sometimes you will disagree.
It's business. He or she is the boss. Understand that when you're in a position someday to make decisions, you may do it differently; but for now, get over it.

Picking The Best Health Plan

Whenever I meet with a new client, I prepare a list of questions about their business - both macro and micro. The answers are always diverse and informative - no business has the same issues.

Now matter how many business owners I've met with, however, there is one question they all agree on:

Are you satisfied with your health insurance plan?

The answer given by all, of course, is a resounding "no".

Every October should be the time for businesses to re-evaluate their current benefits program and consider different providers or different options. Health Savings Accounts, for example, have gained some popularity but are not widely known.

And I'm constantly amazed that more businesses don't utilize a Premium Only Plan.

A good start in the struggle to evaluate what's best for your business is this article by Tom Murphy of the Associated Press.

Employee Satisfaction Equals Profitability

In an era (to put it mildly) that is economically uncertain, there is a way to bolster both productivity and profitability:

Employee satisfaction.

Employees who are happy in their work are always more productive. Yet businesses seem to shy away from nurturing their satisfaction or - worse - business owners have no idea if their employees are happy or not.

An employee satisfaction assessment (or 360 degree survey) is an easy tool to determine how satisfied your employees are. And, worked with an expert, you can use that information to take steps to enhance that satisfaction.

The downside of low employee satisfaction is higher turnover, lower productivity and ultimately business failure.

The upside is significantly higher.

Businesses with great workplace environments, such as those mentioned in this Wall Street Journal article, will improve the components so essential to success.

Measuring The Best Hiring Manager

The most critical test for any manager or supervisor is the quality of their hires. Studies show that a bad hire (or any employee turnover, for that matter) costs a company about 50% of that employees annual salary.

In fact, one of my partners now believes that employee turnover costs American businesses over $340 Billion dollars per year.

So hiring the right person is indeed a critical component of a managers success, how do you evaluate that success (or failure)?

Kris Dunn, writing in Fistful of Talent, outlines some essential values when determining how well a manager hires, including a reference to the recent Jack Welch article in Business Week.

Tracking the hiring success of your managers is essential. And if a manager has a poor record of hiring, then the opportunities for training and development are ripe:

• Teaching the fundamentals of interviewing;
• Having that manager observe other interviews;
• Conducting performance appraisals of not just the newly hired employee, but also the hiring manager 90 days after the hire.

Speaking of Fistful of Talent, by the way: Jessica Lee, who is the Employment Manager for APCO Worldwide, has a blog that's must reading for small business owners and managers. And although she's obviously skilled at her job, a book (or two or three) is obviously in her future.

Stopping Gossip In The Workplace

What can an employer do about gossip?

Supervisors need to regularly communicate with their employees about what's going on in the workplace. Make sure everyone knows what's going on in the workplace - future plans, etc. Employees need to feel part of the process of the company - especially in small businesses - and if they don't, they'll make it up in the form of speculation and "gossip." The attention and communication will work wonders in stopping the gossip.

Incorporate into your Employee Handbook a policy that discourages employees from spreading of gossip and rumors. For example:

• Do not participate in spreading gossip and rumors, and do not tolerate it from others. Rumor and gossip sabotages the team's ability to work together effectively. It is disrespectful, nonproductive, and a selfishly motivated act that impedes employees from performing their jobs. If you hear about an issue that pertains directly to you, verify the accuracy of the information by asking the supervisor or the coworker involved, rather than simply passing on the information.

Tell the rumormonger that you're aware of his/her behavior. Describe how his/her behavior results in others not trusting them because no one wants to be the subject of the "gossip." For some, this single statement will be a realization that will result in immediate change. You should also describe the impact the employee's behavior has on the workplace and that his/her continued participation in the spreading of rumors and gossip is a violation of the company policy.

Incorporate the impact the employee's behavior has had on the workplace in his/her performance evaluations.

Your Job Application May Be Cause for Age Discrimination

Among the myriad of problems a business owner faces is compliance with the numerous federal and state laws pertaining to discrimination.

While experts and consultants see these issues as relatively simple and inexpensive to correct - the fact remains that business owners are either to overwhelmed to manage them; too ignorant to know; or - worse - to callous to even care.

Even the simplest thing can cause major problems. Take your Application For Employment form, for example.

I'm stunned at the number of applications which ask the applicant's age. This is illegal in the United States.

(You can ask if the applicant meets a minimum age requirement if the position requires a minimum age; and you can certainly ask if an applicant can provide proof of authorization to work in the United States - but proof should only be provided after a job offer is made. And in neither situation should you ask for proof of age during the application process).

Yet it continues to happen. Over and over again.

Age discrimination is illegal. And one of the easiest ways to fix this problem is to get an up-to-date employment application from a reputable attorney or consultant.

Courtesy Kansascity.com and the Miami Herald.

401(k) Fees - The Employers Choice

A great deal has been said about forcing financial institutions to disclose their hidden fees and expenses for 401(k) Retirement Plans.

But businesses - small businesses especially - tend to select a 401(k) provider for their company based on the monthly fee (only $100 per month!) or because the owner's best friend is a money manager and can do 'it all' inexpensively.

It's not the cost of maintaining the program - it's the hidden costs - especially expense fees - that are rarely if ever disclosed.

Demand from your third party administrator or money manager what those expenses are - they are costing you and your employees a reduced return on their investment.

And that means you are costing your employees and yourself - your retirement.

Courtesy Wall Street Journal.

Onboarding a New Employee

Employee turnover is a major reason why businesses don't succeed. There is an enormous cost to replace a new employee - from recruiting costs to selection and the lost productivity.

A recent SHRM survey showed that 46% of new hires are gone within the first 18 months of employment.

With these statistics, it's surprising that more effort isn't put into onboarding - the process of completely indoctorinating a new employee into the company. That doesn't just mean what they will do - it means understanding and being integrated into the company's culture. And it's not just a one-day or one-week process - it's an on-going, long-term process.

Some very good onboarding tips from Mike Russell and Maureen Moriarity.

On Handbooks And Amateurs

Time and time again, we write about the need to have a professional develop your employee handbook.

And once again, another instance of a poorly developed handbook costing a business.

In this instance, a court allowed an employee to pursue an FMLA claim, even though that employee was ineligible.

The reason? Not all of the FMLA provisions were included in the company's handbook, nor the correspondence the company sent the employee.

How easy (and less expensive) it would have been to simply have a professional or labor attorney update their handbook.

Ironically, when I read that article from Fisher & Phillips LLP, I subsequently read another article of theirs - directed at educators - identifying the top five mistakes made by independent schools.

Mistake #3? Using an outdated faculty or employee handbook!

Thanks to Fisher & Phillips.

Don't Borrow Another Company's Handbook!

Many small businesses will 'borrow' someone else's employee handbook in order to save some money.

The problem is that without expert advice, your company could be providing benefits and promises that are not necessary.

For example, FMLA leave is required for businesses that have 50 or more employees within a 75-mile radius. If you have fewer than 50 employees, you need not comply with the FMLA.

UNLESS - your company handbook says so. A 7th Circuit Court ruling illustrates the issue:

According to the federal appellate court, statements in the employee handbook and two letters received by the employee that promised him 12 weeks of FMLA leave may have been sufficient to create an enforceable contract under Indiana law.

Alternatively, the court held that the worker may be able to prove his claim for promissory estoppel because he relied to his detriment on the company’s promises. Peters v. Gilead Sciences, Inc., No. 06-4290, Seventh Circuit Court of Appeals (July 14, 2008).

Courtesy Ogletree Deakins.

Immigration Raids Continue In The Workplace

After hearing for months how ICE will be stepping up enforcement of undocumented workers, word comes from Mississippi that the largest ever raid has taken place in the workplace - 595 Howard Industries workers were arrested last month.

It remains unknown if company executives will be arrested.

The fines against employers are increasing, the enforcement has dramatically elevated, and now it's time to make sure you're compliant with all I-9 and related requirements.

If it can happen to a large company like Howard Industries, it can happen to you.

Thanks to Barker Olmsted & Barnier.

E-Mails & Company Litigation

No matter how frequently we write about the perils of e-mail, litigation continues to happen in this area.

A 2005 survey conducted by the American Management Association and the E-Policy Institute showed that of employers surveyed

• 25 percent had terminated employees for e-mail misuse,
• 13 percent of those same employers have been involved in litigation triggered by an employee’s use of e-mail, and
• 20 percent of the employers have had e-mail subpoenaed in litigation.

Teresa M. Thompson of Fredrikson & Byron, PA, an employment attorney, says that "every piece of litigation that comes across my desk includes an e-mail discovery issue."

It's not enough just to put policies in place that state e-mail is for business use only - now, training is needed to reinforce the seriousness of this issue.

There is no expectation of privacy in company e-mails - and don't think that the opposing attorney doesn't know that.

Tolerance in the Workplace

The EEOC has issued new guidelines on religious discrimination in the workplace, after receiving the highest number of complaints ever in this area in fiscal year 2007 (it's doubled since 1992).

Accommodating religious diversity in the workplace means more than deciding if a Christmas tree or Menorah should be displayed in the reception area.

There are any number of federal and state laws that may govern this issue, including the Civil Rights Act of 1964.

While employers must assist with all reasonable requests, they are less obligated to leap major hurdles to accommodate a religious request than they would be for a employee with disabilities - but it still requires an acute knowledge of what's acceptable or not.

Make sure to work with your human resources consultant or employment attorney when any matter such as this arises. And read this excellent article from Jennifer Nycz-Conner in the Washington Business Journal.

Illegal Workers & The ICE Crackdown Statistics

It can't happen to you? Wanna bet?

The graphic above shows the staggering increase in arrests made in conjunction with the hiring of illegal workers by the Immigration & Customs Enforcement Department (ICE - a part of the Homeland Security Department).

• In fiscal year 2007, ICE secured more than $30 million in criminal fines, restitutions, and civil judgments in worksite enforcement cases. They arrested 863 people in criminal cases and made more than 4,000 administrative arrests. That is a tenfold increase over just five years before.
• The number of criminal and administrative arrests has steadily increased over the past few years. Those arrested criminally include a variety of persons–corporate officers, employers, managers, contractors and facilitators. In criminal cases, ICE often pursues charges of harboring illegal aliens, money laundering and/or knowingly hiring illegal aliens. Harboring illegal aliens is a felony with a potential 10-year prison sentence. Money laundering is a felony with a potential 20-year prison sentence.
• ICE has found these criminal sanctions to be a far greater deterrent to illegal employment schemes than administrative fines.
• These arrests also include illegal aliens charged with criminal violations. Aliens have been charged with possession or sale of fraudulent documents, identity theft, Social Security fraud or re-entry after deportation.

And it gets more important in the fiscal year 2008 (which ends this October):

• As of August, ICE made more than 1,000 criminal arrests tied to worksite enforcement investigations.
• Of the 1,022 individuals criminally arrested, 116 are owners, managers, supervisors or human resources employees facing charges including harboring or knowingly hiring illegal aliens. The remaining workers criminally arrested are facing charges including aggravated identity theft and Social Security fraud.
• ICE has also made more than 3,900 administrative arrests for immigration violations during worksite enforcement operations.

If that wasn't sobering enough, the ICE website posts their most recent arrests and punishments -all types of businesses are being investigated - from donut shops, agriculture, manufacturing, retaurants and more.

They're not kidding any more. Make sure all your employees are legally authorized to work in the United States; review your I-9's for each employee - and when in doubt, follow the law.

When HR supervisors are getting arrested, you know it's serious.

Preventing Violence in the Workplace

While OSHA reports that nearly 2 million people have been victims of violence in the workplace, nearly 70% of all businesses have no workplace violence prevention policies.

That must change. Prevention is the cornerstone of all human resource policies, and it's simple to implement (at an extremely low cost).

Steven R. Peltin and Gregg O. McCrary, writing on the washingtonceo.com website, present 5 simple tools to establish a workplace violence prevention plan in your workplace.

Too often business owners focus on the 'now' instead of the future. Preventing violence in the workplace is a 'now' issue. It could happen to you.

Courtesy washingtonceo.com