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

Fantasy Football - The Cost To Employers

It's almost fall, and football enthusiasts are eagerly awaiting for the college and pros to begin their seasons.

Over the past decade, fantasy football leagues have proliferated - especially since the advent of the internet. More and more people checking player and team stats; proposing trades; and tracking their team performace - and that's OK - unless it's being done at work.

According to Challenger, Gray & Christmas, fantasy football leagues cost U.S. employers about $9.2 billion annually in lost productivity.

It's a simple fix: internet use at work is for business use only. Fantasy Football (and anything else personal, for that matter) can be done from home, on one's own time.

Courtesy Newsday.

Non Competition Agreements Really Unenforceable

Lots of our clients request Non-Compete Agreements for their employees. I generally try to talk them out of trying it, and if they insist, I refer them to their employment lawyer.

The reason I discourage Non-Competes is that the courts change the covenants so frequently, there's no real way to have a solid template to develop one.

Now comes the latest California Supreme Court ruling, which has established a 'bright line' rule in the case of Edwards v. Arthur Andersen. The ruled on August 7 that California employers cannot enforce agreements limiting competition by former employees, except within very narrow statutory exceptions.

If you really believe you need a Non-Compete Agreement for your employees, please consult your attorney. And read this excellent article from Cooley Godward & Kronish LLP.

2008's Most Popular Employee Perk?

The cost and hassle of transportation (in addition to the poor economy) is leading employers nationwide to consider 4-day workweeks, car pooling and the like.

Yet the employee who must drive on company business is left out in the cold...unless...

According to a survey by SHRM (The Society for Human Resources Management) says that the most popular perk this year is raising mileage reimbursement to the current IRS limit (which is now 58.5 cents per mile).

A small price to pay for maintaining employee satisfaction.

Courtesy Clarksville, TN Leaf Chronicle.

Consequences of the Brinker Decision

Last month, a California appellate court made a significant (although sure to be appealed) ruling regarding rest and meal breaks.

For years, the California DLSE and courts have interpreted the term "provide" to mean employers must require employees to take their mandatory meal periods or be liable to the employee for one extra hour of pay.

The court determined:

The appellate court’s ruling included the following major points:

1. Rest Periods Must Be “Provided” But Need Not Be Forced. While employers cannot impede, discourage or dissuade employees from taking rest periods, they need only “provide,” not ensure, that rest periods are taken.
2. Flexible Timing of Rest Periods. Employers need only authorize and permit rest periods for every four hours or major fraction thereof worked, and they need not, where impracticable, be in the middle of each work period.
3. Meal Periods Must Be “Provided” But Need Not Be Forced. While employers cannot impede, discourage or dissuade employees from taking meal periods, they need only “provide” them and need not ensure they are taken.
4. Flexible Timing of Meal Periods. Employees are entitled to take meal periods when working more than five hours. But employers are not required to provide a meal period on a rolling five hour basis. That is, as long as an employer provides a meal period at some point during a shift, it doesn’t matter if the employee works more than five consecutive hours without taking that meal period.
5. Liability For Known Off-Clock Work. While employers cannot coerce, require or compel employees to work off the clock, they can only be held liable for employees working off the clock if they knew or should have known they were doing so.
6. Class Action Unavailable. Because whether or not employees were provided a meal and rest period, and whether they worked off the clock, cannot be determined on a class-wide basis, but rather must be determined on an individual case-by-case basis, the lawsuit should not be certified as a class action.

The Department of Labor Standards of Enforcement has issued the following memo that explains their position on this ruling. Read it here.

Employer Liability for Violence in the Workplace

An altercation at an Autozone store in Orange County California has put employer liability for violence in the workplace back in the news.

A customer was at the store to buy motor oil when he whistled at an employee in order to get his attention. The employee, a sales manager, took the whistling as an insult, and after a verbal exchange, hit the customer with a metal pipe.

The customer filed a lawsuit, contending that AutoZone was negligent in hiring, retaining, and training the employee, in light of his allegedly violent background. In particular, the sales manager had a juvenile delinquency record for attempted murder, although AutoZone was unaware of it. And, AutoZone had previously given the manager a written warning for raising his voice to a customer.

The CA appellate court ruled that the customer-victim can take his vicarious liability claim to trial.

Under California law, an employer is vicariously liable for its employees’ wrongdoings that are committed within the scope of the employment, and an employee’s willful, malicious, and even criminal acts may fall within the employment scope.

The appeals court, however, went on to reject the negligence accusations. According to the court, AutoZone had no duty to do a more-thorough background check before hiring the employee—and even had the company done more, it still might not have uncovered the juvenile record. What’s more, the prior incident in which the manager raised his voice with a customer wasn’t a red flag that he might be violent.

Avoid Liability

What can employers do to avoid liability—either vicarious or because of the employer’s own negligence—stemming from an employee’s violent outburst?

What can employers do to avoid liability—either vicarious or because of the employer’s own negligence—stemming from an employee’s violent outburst?

What can employers do to avoid liability—either vicarious or because of the employer’s own negligence—stemming from an employee’s violent outburst?

• First, be sure to investigate job applicants’ backgrounds before they’re hired. This is especially true if the worker will have unsupervised conduct with third parties or the public.

• Second, take care to monitor employees’ conduct, particularly, if given the nature of the job, there’s a possibility that violence could erupt. If you don’t, you could be liable for negligently supervising an employee who ends up assaulting a customer or co-worker.

• Third, promptly respond to complaints or warning signs. If you become aware of a possible problem with an employee, you will face bigger legal risks if you don’t investigate and take action.

Flores v. AutoZone West, Inc., Calif. Court of Appeals (Dist. 4, No. G038322 (2008))

Courtesy Business & Legal Reports, Inc.

How Not To Lead In a Bad Economy

The down economy stresses everyone in the workplace - including the boss.

But unless you are implementing an overall reduction in force, the last thing you want to do is threaten employees. It costs a substantial amount of money to replace an existing employee.

Yet that's what's happening in many businesses right now - here are some examples:

• Managers are more reluctant about granting sick leave or holiday pay.
• Employee reviews are more negative than usual, perhaps due to the fact that managers are paving the way for a justified firing (so they don't have to do a layoff).
• Employees are forced to do the work of two people without getting additional compensation.

Not the way to lead!

Find ways of making employees work better - and more efficiently. Consider any of the following:

• Flex scheduling that accommodates school visits, doctor appointments-or just personal time
• Telecommuting, from one day a week to full time
• Compressed workweek (for example four 9-hour days, or three 12-hour days)
• Job sharing (where typically two people share one full-time job, often overlapping for 1 day)
• Part-time seasons for full-time workers (that is, like a school schedule—work full time most of the year, part-time or not at all during the summer)

Courtesy Eve Tahmincioglu in msnbc.com

California's "New" Meal & Rest Period Rules

Last month, a California Appellate Court ruled employers don't need to ensure meal and rest breaks - a substantial change from previous policy.

Now comes a succinct analysis of that ruling from the law firm Barker Olmsted and Barnier. The key points as summarized in their article:

The appellate court’s ruling included the following major points:

1. Rest Periods Must Be “Provided” But Need Not Be Forced. While employers cannot impede, discourage or dissuade employees from taking rest periods, they need only “provide,” not ensure, that rest periods are taken.
2. Flexible Timing of Rest Periods. Employers need only authorize and permit rest periods for every four hours or major fraction thereof worked, and they need not, where impracticable, be in the middle of each work period.
3. Meal Periods Must Be “Provided” But Need Not Be Forced. While employers cannot impede, discourage or dissuade employees from taking meal periods, they need only “provide” them and need not ensure they are taken.
4. Flexible Timing of Meal Periods. Employees are entitled to take meal periods when working more than five hours. But employers are not required to provide a meal period on a rolling five hour basis. That is, as long as an employer provides a meal period at some point during a shift, it doesn’t matter if the employee works more than five consecutive hours without taking that meal period.
5. Liability For Known Off-Clock Work. While employers cannot coerce, require or compel employees to work off the clock, they can only be held liable for employees working off the clock if they knew or should have known they were doing so.
6. Class Action Unavailable. Because whether or not employees were provided a meal and rest period, and whether they worked off the clock, cannot be determined on a class-wide basis, but rather must be determined on an individual case-by-case basis, the lawsuit should not be certified as a class action.

Barker Olmsted & Barnier also agree with our assessment: Because this is an appellate court ruling, don't change your practices just yet; the appeals have just begun.

Paying Wages Into Debit Cards

The California DLSE (Department of Labor Standards Enforcement) has approved the payment of wages into a debit card or money check.

This should be a convenience for employees who previously have not had access to direct deposit of their wages. And in any case, it's definitely easier for employers not to have to cut a check (or sign all of them, either).

If you use a payroll company such as ADP or Paychex, contact your representative to get this started.

If you run payroll in-house, we strongly suggest you contact your HR Consultant or employment attorney before you enact this new system.

As usual, California is ahead of the rest of the nation in issues like this - if you'd like to implement this program - call your payroll provider or employment attorney to make sure your state accepts this form of payment.

Courtesy Barker Olmsted & Barnier.

Independent Investigations Can Reduce Your Liability

An employee has accused her supervisor of sexual harassment, and just informed you about it.

Now what do you do?

First, call your employment attorney, who will likely recommend an independent workplace investigator to interview all the relevant witnesses and work with that attorney to develop recommendations as to what, if any, steps should be taken.

Conducting your own investigation is fraught with peril. First, you don't have the experience or knowledge to do so, and secondly - you can avoid liability by having that investigation conducted by a neutral third party.

Of course, the first order of business is to make sure you have non-harassment and non-retaliation policies in writing immediately.

Men Fighting Back in the Workplace

It used to be that sexual harassment claims were made almost exclusively by women. But times have changed. According to the EEOC, men accounted for a record 16 percent of all sexual harassment complaints in 2007, nearly double the 9 percent figure in the early 1990s.

And men are also filing more FMLA Claims as well.

Attorneys believe this trend is caused by the so-called Father's Rights Movement.

Regardless of the cause, the monetary impact to employers is significant. One man successfully sued his employer for $11.65 million - he charged he was retaliated against for taking time off under the FMLA to care for his aging parents. Schultz v. Advocate Health, No. 01C-0702 (N.D. Ill. June 5, 2002). The case settled for an undisclosed amount in 2003.

Make sure to establish gender-free retaliation and harassment policies in your workplace. It's not just women who are suing anymore.

Courtesy law.com.

Workplace Respect

Here are the most common workplace 'pet peeves', as identified in a Fast Company 2006 survey:

1. Being condescended to, 44 percent
2. Being reprimanded publicly, 37 percent
3. Micromanaging, 34 percent
4. Loud talkers, 32 percent
5. Cell phones ringing, 30 percent

We've talked at length this week about issues that increase employee turnover. Note that the first three items on this list directly relate to poor management.

Employees want to enjoy their work; and if there is disrepect from the boss, there's going to be problems in the workplace.

Bosses: make sure you show your employees respect (remember the golden rule); and if you see disrespect in your workplace, do not allow it to continue.

Courtesy Maureen Moriarty in the Seattle Post-Intelligencer.

Source:

Humor in the Workplace

Times are tough. And when economic uncertainties prevail in the workplace, one of the first casualties is a sense of humor, which I consider a critical component of a successful work team.

That’s bad news for productivity, creativity and the general well-being of workers, say HR and humor experts.“It’s a natural tendency for some folks to tighten up during tough times, but we need to lighten up,” warns Joel Goodman, founder of The Humor Project Inc.

There's a need to toe the line for political correctness, of course; but humor - and having fun at work - increases productivity and morale, thus reducing turnover and gloom.

As an employer, it's critical to always remember that a workplace that's fun is a good workplace. And if you're working for a company and it's not fun: why would you spend at least a third of your life not having fun?

Thanks to Eve Tahmincioglu's article in msnbc.com

Flex Time's New Popularity

The increased cost of gas is one of the reasons for the increased use of 'flex time'. Employers are starting to squeeze the 40 hour/5 day week into a 40 hour/4 day work week - with the approval of both employees and employers.

Bosses say that flex time increases productivity.

The 2008 National Study of Employers shows that there is an increase in the use of flextime (79% of employers now allow it, as opposed to 68% in 1998).

Besides the cost savings of gasoline, employees perceive flex time or a reduced work week as a benefit - and the advantage for employers is reduced turnover.

Courtesy Christian Science Monitor & the Miami Herald.

Nine Steps To Reducing Your Wage & Hour Liability

Yesterday, we wrote about the incredible proliferation of wage & hour claims and lawsuits spreading over the country.

Today, some tips to reduce your chances of being at the wrong end of a filing:

1. Audit all positions classified as exempt from overtime;
2. Re-write your job descriptions, even if they were last done within the last few years;
   
3. Review your policies to determine whether steps can be taken to eliminate or substantially reduce the possibility that an employee can claim to have been working, including reviewing such things as “automatic deductions for lunch,” rounding, and similar practices.
4. Analyze policies and procedures to review deductions from wages and salaries to ensure that they comply with the minimum wage and overtime requirements of state and federal law. These are the first steps toward minimizing liability.
5. Train Managers. Making sure managers understand the rules is paramount. Managers can avoid costly mistakes and spot problems before they become too costly.
6. Think Exempt - Non-Exempt, Not Just Salary - Hourly. Too many employers pay employees a salary and then believe that relieves them from any obligation to pay overtime. Employees need to make sure those employees are properly classified as exempt (someone who is typically not paid overtime) or non-exempt (someone that is generally entitled to overtime).
7. Take Complaints on Wage Issues Seriously. You want to treat wage and hour complaints just as seriously as employment issues including harassment or discrimination. In fact, these wage and hour lawsuits could be more costly to your business.
8. Do Not Retaliate. Never, never, never retaliate against someone that makes a complaint for wage and hour issues.
9. Develop strong policies on pay practices and employee hours. Make sure employees work those hours assigned and do not work off-the-clock. Above all, properly document the number of hours worked because just like in baseball where a tie goes to the runner - if the employer has not documented the hours worked by the employee - the benefit of the doubt will go to the employee.

Courtesy Rush on Business (we wish he was in California!), Elarbee Thompson, Monster.com

Wage & Hour Issues: The Trial Lawyers Dream Come True

More wage claims were filed in federal court in 2006 than in 2003/04 combined. Through April 2008, those claims are on pace to outdo 2007. Entire law firms are being formed to litigate wage and hour claims.

That's because about 70% of all businesses are out of compliance with wage & hour laws.

One Rochester, NY attorney switched from defense to plaintiffs work, saying, "I can hit a company with a hundred sexual harassment lawsuits, and it will not inflict anywhere near the damage that [a wage and hour suit] will."

It’s estimated that corporate America pays out more than $1 Billion a year to settle and resolve wage and hour claims.

We're mostly talking about exempt or non-exempt employees, from not taking meal breaks to tip credits, and overtime. From Starbucks to Oprah Winfrey, no employer is immune.

Tomorrow, we'll talk about ways to prevent these lawsuits and claims from occurring.

Courtesy Rush on Business; Ethics & Legal Compliance Training; Business Week; New York Times (registration required)

Workplace Wellness Programs

Even in this down economy, workplace wellness programs are on the increase. The advantages are numerous - lower health care costs; increased attendance and improved morale.

Employee Assistance Programs (EAPs) are also an inexpensive way to obtain these advantages - and in some cases, spouses and dependents can participate as well.

Wellness programs also increase the attractiveness of an employer. Companies with wellness programs that touch on the physical and emotional needs of staff and their families show the employer's interest in keeping everyone healthy, and keeping them happy.

Courtesy East Indiana Star Press.

When You're Ready For Management

"It's good to be the King," said Mel Brooks in History of the World Part I.

Lots of employees envy the boss; the boss is the one who sets the agenda, enforces the rules, and gets to make the decisions the rest of us must implement.

From the outside looking up, management seems like a great job. Telling others what to do, instead of being told what to do, is really the essence of what many people aspire to.

Yet from the perspective of managers, there's no job more humbling. Making decisions - no matter how benign - that affect people's lives is difficult. The balance between managing and doing is a fine one.

For example, the best salesperson does not necessarily make the best manager. The attributes needed to succeed in sales - supreme self-confidence, self-motivation and determination along with a strong measure of independence - are not those which are desired in a great manager.

Management requires a huge team concept, the ability to admit you've made incorrect decisions and immediately change course.

A very good checklist on "Are You Ready For Management" is available here - written by Jackie Harder in the Miami Herald.

Keep Politics Out of the Workplace

We've written before about the need to keep political discussions out of the workplace. The best practice is to discourage it - emotions can simply get to volatile, and there's no real need to have that discussion in the workplace, anyway.

And don't let anyone throw the first amendment at you, either: political speech at work is generally not protected by the First Amendment.

Where the political issues get troubling is when employees bring political buttons, signs, bumper stickers, etc. into the workplace.

Make sure to review and/or update your employee handbook to make sure these activities are prohibited (usually through a non-solicitation policy).

And, make sure to read this excellent article on the topic from our friends at Jackson Lewis.

Insult Your Boss Day

Happy "Insult Your Boss Day". No, I'm not kidding. It must be official - it even has a website: http://www.insultyourbossday.com/.

It better be tongue-in-cheek. I find very few bosses who appreciate being insulted.

There's a difference, though, between insulting your bosses and legitimate criticism.

Think about a major difference you have with your employer. The best managers invite a contrary opinion; just be careful about how and where you express that opinion.

I never object to an employee who has a difference of opinion. But I would strongly prefer to be criticized in my own office than in front of a number of employees; my initial reaction to the latter situation would be hostile.

Don't insult; do express your opinion - but know where and when to do it the right way.

Courtesy Winston-Salem Journal.

Employers Do Not Need To Ensure Meal Periods

In a decision that California employers have been waiting for, a California Court of Appeals today ruled "...while employers cannot impede, discourage or dissuade employees from taking meal periods, they need only provide them and not ensure they are taken."

In Brinker v. Superior Court, the Court analyzed what California Labor Code § 512 means when it requires an employer to "provide" meal periods to its non-exempt employees. (California Labor Code § 512 requires that an employer "provide" an employee with a meal period if the employee works five (5) hours or more.)

For years, the California DLSE and courts have interpreted the term "provide" to mean employers must require employees to take their mandatory meal periods or be liable to the employee for one extra hour of pay.

It would be a mistake to immediately change any policies you have in place regarding meal breaks; the decision will almost certainly be appealed to higher courts.

The Annoyance of E-Mail

One of my closest friends has an e-mail account, but refuses to give out the address to his friends. "I get enough e-mails at work," he explains, "and the junk I get from my friends is the biggest time waster I can think of."

The overuse of e-mail, and related etiquette violations, are a big annoyance in the workplace.

ABC News has developed a list of "No-No's" when it comes to business e-mails (and they're all great examples of what not to do). They are:

1. Don't 'cc' someone's boss on a criticism unless you really mean it;
2. Hitting the 'reply all' button;
3. USING ALL CAPS

It is suggested that you develop an e-mail etiquette policy for your handbook - but, like all policies, you need to consistently enforce it.

And remember - when you put something in writing - it's there forever.

5 Alternatives to a Pay Raise

The economy is down, and business owners are feeling the pinch. Employees may deserve a pay raise, but you can't afford to provide one.

Here are five alternatives to a pay raise:

1. Increase the number of paid days off.
2. Go to a four day work week twice monthly.
3. Telecommute one day a week (this saves the employee travel time and gas expense).
4. Establish a bonus for high performance during the year; if an employee exceeds billable hours, or productivity standards - your business will improve.
5. Initiate a 401(k) or other savings incentive plan (the incremental costs are very small compared to the perceived benefit)

Remember, it costs far more to replace an employee than keeping one. Reducing your employee turnover is a key component to business success.

Courtesy USA Today.

Same-Sex Marriage & The Affect On Employers

When California's Supreme Court overturned a state law that banned same-sex marriages in May, the impact on employers was not immediately clear. As lawyers and experts have begun to evaluate this decision, their opinions are starting to come out.

Writing in Harrison Ford's Management Update, Jeffrey Ashendorf says that "Employers should review the terms of their benefit plans and employee communications and adopt a clear definition of the term "spouse" to avoid any confusion. Additionally, if benefits are or will be offered to same-sex spouses or non-dependent domestic partners, employers should ensure that their payroll or accounting departments can comply with differing tax treatments under federal law."

Obviously the issue is controversial - and litigious - for employers. Take steps now to ensure you're in compliance.

Retaliation: The New Emerging Issue for Employers

Employment attorneys tell me that the reason retaliation claims are on the rise is that retaliation is much easier to prove than harassment. Some plaintiffs lawyers are even 'giving up' on a harassment complaint and just focus on retaliation as a result.

When I conduct workplace investigations, one of the things I look for is whether retaliation has taken place. It may be that there was no actual harassment - but there was retaliation.

The simplest example is when an employee is terminated shortly after making a harassment or discrimination claim. The burden is on the employer to prove he or she did not terminate because the accusations were made.

And retaliation can be much more subtle - co-workers avoiding the accuser; management moving the accuser to another office or work location.

Make sure you add a non-retaliation policy to your employee handbook. But you need to be vigilant in making sure the policy is truly in practice.

This excellent article from Shaw/Valenza illustrates some recent retaliation decisions made by the courts.

Alternatives to Employee Layoffs

Yesterday, we discussed the downside to laying off employees. It often is a short-term fix at a substantial long-term cost to your business.

But when business turns south (62,000 jobs were lost last month), what alternatives are there?

Michigan-based Pro-Temp Inc. co-owner Cal Van Hemert started snipping away at expenses at the heating, cooling and refrigeration service company.

He replaced the company's formal holiday dinner with a pizza lunch, restructured to get more people into the profitable sales department and is debating whether to trim benefits for his 14 employees.

Cross-training employees in multiple roles can add efficiency with no additional cost.

Employees might agree to sabbaticals, unpaid vacations, lowered salaries, even work furloughs.

415 Productions offered either an overall 5 percent pay cut, or a four-day work week reflecting the appropriate decrease in pay.

Charles Schwab Corp. guaranteed a $7,500 bonus for any affected employee who gets rehired within 18 months. In addition, company founder Charles Schwab and his wife created a $10 million educational fund for these workers. The fund will cover as much as $20,000 worth of tuition over two years at accredited academic institutions.

Your most important investment is in human capital. The cost of turnover is significant.

Thanks to salary.com and themorningcall.com.

The Downside of Employee Layoffs

In a "down" economy, the first thing many businesses decide is to layoff employees.

It's not a great idea, since it is a short-term fix at a long-term cost.

William McKinley, in an article titled Organizational downsizing: constraining, cloning, learning,
wrote that "While downsizing has been viewed primarily as a cost reduction strategy..there is considerable evidence that downsizing does not reduce expenses as much as desired, and that sometimes expenses may actually increase."

Employees should not be viewed as an expense, but as a capital investment.

F. John Reh argues that businesses need to consider the reduced morale and the reduced performance and innovation it will bring, and to consider the reduced quality of the company's overall workforce that will result.

Tomorrow, we'll discuss alternatives to laying off employees.

Courtesy about.com (management).

Getting Coffee For The Boss

So an employee got fired for complaining about having to get her bosses coffee. And then sued for a hostile and discriminatory work environment.

She lost (here's the article in www.philly.com), but certainly created a problem for her former employer.

The best way to deal with this problem - like most problems - is to get in front of it before anything gets out of hand.

For example, the written job description should always include a section that says, "...and all other duties as required by management." And it wouldn't hurt in the job interview to mention that bringing coffee to the boss is considered part of the job.

As for me - I'm fully capable of getting my own coffee every day, and would rather have by associates working that making me a latte.

The fired employee plans to appeal - but one of her quotes was really significant: "...they had no idea that I needed that job as much as I did..."

Managing Your Boss

I've written frequently about the concept of 'managing up'.

Now, Joe Tokash, writing in Business West Online, offers four steps to Managing Your Boss:

1. Choose Good Timing
2. Understand How Your Boss Prefers Information
3. Align Understanding
4. Follow Up and Live Your Word

All excellent steps. Remember - as a boss, it's up to you to encourage and foster communication with your employees. As an employee - it's equally up to you in order to proactively deliver that same communication.

Absenteeism in the Workplace

Many employers - especially smaller ones - get frustrated with frequent absenteeism. It reduces productivity and even minor disruptions can create problems in the workplace.

Sandra Sunken, writing in the Ventura County Star, has several suggestions on improving poor absenteeism - several I don't agree with:

But let's start with the ones I do agree with:

- You can make a difference. As a leader, it's your responsibility to set an example and make sure you set expectations as well.

- Leading by example. I once worked for a boss who believed he should be the first one in the office at least twice a week, and the last to leave at least twice a week.

- Create a bank of personal time days. In the HR world, this is called "Paid Time Off" or "PTO". PTO combines vacation, sick and any personal days an employee is eligible for. When they call in sick, or request a vacation, it is charged to PTO - so it doesn't matter why they're off; they're just off. And when that bank of days is exhausted, they can still be absent - they're just not paid for that time off.

Here's where I disagree with Ms. Sunken:

- Let your employees know you care about them. While this is important for morale, it's not relevent to absenteeism. If you care about your employees AND they care about their job, they'll be there.

- Emphasize the link between attendance and productivity. It seems to me that employees who are frequently absent simply don't care about productivity (or their jobs, for that matter). Explaining the importance of productivity likely will not result in improved attendance.

- Job Enrichment. Why would you go to the trouble of cross-training and developing an employee who doesn't care enough to show up?

- Prize Pool [for punctuality and attendance]. Many companies do this, and I'm frankly opposed to it. Attendance is a minimum expectation of employment. I do not believe in rewarding anyone for something they're expected to do. (However, rewards for exceptional performance are something I highly encourage).

Setting the expectation is critical. This should be emphasized in the job interview, supported in a written job description, and addressed immediately when there is a pattern of absences or tardiness.

Ending Gossip in the Workplace

The bad news first: it's really difficult to put an end to gossiping. Most people have a natural tendency to talk about others (witness the explosion of sites like www.perezhilton.com and www.tmz.com).

Yet gossiping about fellow employers or leaders in a business can truly produce incredible morale issues. My experience shows that if employees are happy, they tend not to negatively gossip in the workplace.

On the other hand, I've seen businesses where gossip is crippling morale and reinforcing already negative attitudes.

So what do you do?

Sam Chapman of Empower Public Relations set forth a 'no-gossip' zone in his office, firing three employees and establishing a strict policy of no-gossiping.

Perhaps a more practical approach is to keep your eyes open for unhappy employees and enforce your open-door policy. Find out what is troubling him or her and make sure your policies, procedures, and decisions are frequently communicated to everyone.

That (naturally) has created some consternation among the experts, as outlined in this article in the Christian Science Monitor.

Love Contracts

Even though businesses frown on workplace romance, let's face it: most of us have three ways of meeting people: through our friends, at a bar, or at work. And since we spend at least one-third of our lives at work, the chances are there that a romance will develop.

In most states, an employer cannot prevent employees from dating. (However, most states permit employers from halting a romance between a supervisor and direct report).

And remember - 50% of all sexual harassment cases start when the relationship was consensual.

So how to mitigate the issue?

One way is through a so-called love contract, in which both parties acknowledge their relationship is voluntary and consensual. Although it's questionable whether these contracts are enforceable, it seems desireable for an employer to get something in writing.

Here's an excellent article about love contracts by Ann Margaret Pointer of Fisher & Phillips LLP.

Hiring Someone Just Like You

Most managers do a poor job of hiring. With the average employee turnover rate around 20-30% annually, that percentage is almost entirely a reflection on poor hiring practices.

Many managers are looking for someone just like themselves in terms of mannerisms, appearance, culture and skill sets.

David G. Javitch, Ph.D, writing in Entrepreneur magazine, calls this hiring practice "mirror-hiring".

In truth, you want to hire to your weaknesses, and not your natural strengths. An honest assessment of your strengths and weaknesses combined with your desire to bring in people who have a different skill set can only help you and your team.



via entrepreneur.com via MSNBC

Wellness Programs Benefits for Small Businesses

You don't need an expensive wellness plan to develop a healthier workforce.

Think about what's in your breakroom: bagels, donuts, chips, and sodas?

How about fresh fruit and other low-fat snacks?

The American Heart Association offers a free walking program for employers.

What are the benefits?

• increased employee morale
• lower absenteeism and
• potentially reduced health-care costs

Find out what your employees would like - if you deliver on their needs, the benefits will ultimately be both yours and theirs.

Via Chicago Tribune.

Workplace Bullying

Workplace Bullying, as noted here before, is a serious problem.

Jennifer Starace, client services manager for Business Resource Solutions, has now labeled the problem an "epidemic" in the workplace.

The best advice is to make sure your managers are looking out for this behavior and eliminating it the moment it occurs.

Unfortunately, 72% of all workplace bullies are managers!

If you've got turnover problems, or morale issues, one of the best techniques to specifically identify those problems is a 360 degree survey.

Via The Huntsville Times.

Theft in the Workplace?

It's happening, according to the Spherion Workplace Snapshot Survey.

About 1 in 5 employees admit to stealing - normally office supplies - from their employer.

What are they stealing?

• 66% pencils, pens , rulers.
• 57% paper, Post-it notes, file folders
• 11% calculators, staplers, tape dispensers
• 8% laptops, PDAs or cell phones.

Thanks to Spherion and the St. Petersburg Times.

Employers Who Monitor Text Messages

Well, it's a confusing ruling. But essentially, an employer currently does not have the right to review an employee's text messages.

An Ontario, CA police officer was given a pager, paid for and provided by the Ontario Police Department. The officer apparently used the pager to text personal - and sexual - messages to his wife (who also worked for the police department). The wireless provider, at the request of the police chief, provided those messages to the police department.

Oops.

The 9th Court of Appeal ruled that text messages are private, even when the employer provides and pays for those messages. (The Ontario PD even had a policy prohibiting personal use of the pagers).

For now - consult your employment attorney and don't monitor your employees text messages.

Courtesy Information Week and the Los Angeles Times.

Pre-Employment Testing: Can You Do It?

Lots of business use tests prior to hiring a new employee. These can be skills tests such as math; aptitude (which are frequently done for sales positions); or personal instincts). Done properly, these tests can greatly reduce turnover and improve chances for a successful hire.

But there is a significant downside, if these tests are done improperly, not employment-related, or have the possibility of generating a pattern of discrimination. The classic example of the latter is Federal Express, which in 2007 reached a $55 million settlement as a result of a lawsuit that alleged FedEx used a 'basic skills test' for promotions. 86% of white employees passed the test, compared to 47% of blacks and 62% for latinos.

Make sure you use the following guidelines when evaluating or considering pre-employment testing:

1. Know when to administer the test (pre-job offer or post-job offer)
2. Make sure the company you use to conduct the testing has validity - they have proof that the test is non-discriminatory
3. Make sure the test is employment related for the position (for example, you don't want to administer a math aptitude test for a dockworker).

Finally, make sure to review your program frequently with your HR Department or employment attorney.

Courtesy law.com and Baker Hostetler

Creating an Internship Program

Both businesses and students benefit from internships.

For the student, an internship allows them to learn about a potential career from a 'real-world' perspective and perhaps earn some money after classes or during the summer.

For businesses, however, the potential benefits are much greater: besides getting part-time workers at an affordable cost, businesses can benefit from the enthusiasm and new ideas of a college student. And if that student has a positive experience with your company, they are more likely to end up as a full-time employee of yours down the line.

The California Chamber of Commerce recently published an article that tends to focus on the fact that internships should be paid. (It's difficult to establish all of the criteria needed to provide an unpaid internship).

And the most important thing to remember is that if an intern is paid, they are an employee - subject to workers' compensation and all of the federal and state protections from harassment, discrimination and retaliation in the workplace.

Managing Employees Who Have Body Art

The popularity of tattoos in the "Y Generation" is certain: studies show that up to 40% of people under the age of 30 have body art.

But as this generation enters the workplace, visible tattoos can create issues in the office. According to this report via McClatchy Tribune, more and more people realize that visible body art creates a stigma - for employers and clients alike. And those employees are taking steps to cover their art during working hours.

That's good news - but employers need to take the lead if they believe that tattoos (or excessive piercings, for that matter) are not good for business. Well-written policies should be created mandating what is expected of employees.

Some employers might say, "I don't have that problem now - why deal with it?" The answer is because you don't want to create a policy after your receptionist shows up on Monday morning with twelve rings in her nose, or your sales rep comes back after a weekend in Cabo with a snake tattoo on his face.

Get in front of this issue - like all issues - before it happens.

Records Retention in the Electronic Era

The advent of text messaging and e-mail have made a substantial impact on employers - especially since business-related communication has the potential of ending up in front of a jury.

How - and how long - information must be kept is becoming critical. There are state and federal laws that also apply.

The first step is to review your employee files and other documents and determine how long they must be kept - and in what form they can be kept.

A good start is to review this article from McGuireWoods LLP.

Weight Discrimination in America

According to the journal Obesity, weight discrimination is now as common as racial discrimination in US workplaces.

About 17% of men and 9% of women have reported race discrimination; and about 12% of all adults have now reported weight discrimination.

Yet no federal or state law exists that prohibits weight discrimination (for now, at least). The cities of San Francisco and Washington D.C. prohibit weight discrimination.

Discrimination involves health care, education or workplace situations, such as cases in which people said they were fired, denied a job or a promotion because of their weight.

Even though no law currently exists to prohibit this discrimination, why test it? It's extremely expensive to litigate - even when you believe you're right.

Do not make a workplace decision that takes weight into consideration. Use unbiased decision-making that is the best decision for your business.

Thanks to USA Today.

California's Hands-Free Cell Phone Law

On July 1, California is prohibiting all cell phone use for drivers unless a hands-free device is used.

What does this mean for employers?

It means your employee handbook policy should be updated to include the following:

1) You - as an employer - are not responsible for paying violation if a ticket is received; and
2) Since you can be held liable for accidents while an employee is driving on company business, you should prohibit cell phone use unless the employee can pull off to a safe area and make or receive a call;

And remember - California is usually on the forefront of new laws that ultimately get adopted by other states. It's best if you put these policies into place now.

More tips - and an overview of the new law - from Jackson Lewis.

How To Become A Caring Boss

Maureen Moriarty, a Seattle-based executive coach, offers some excellent tips for becoming a more 'caring' boss in this article in the Seattle Post-Intelligencer.

Why would you want to become a more caring boss?

1) Reduced turnover. Studies consistently show that the number one complaint of employees is not pay, but rather that they don't receive enough feedback from their boss. 40% of all employees say a poor boss will likely lead them to leave their employer, and the cost of turnover is prohibitive for any business.

2) Improved business performance. Employees who are happy are better performers, leading to better productivity.

Moriarty's best tip, of course, is for managers to listen more.

But I'll offer my own tip, one that I learned from a colleague who's now the Senior Vice President of Sales for a major insurance company:

You're always on stage.

Whether you realize it or not - you need to understand that as a leader, people are always watching you and feeding off your body language. What you say to employees is magnified in their eyes - even though you may be making what you consider an 'off-the-cuff' remark. People are watching - you are always on stage - so make sure what you do and say always reflects what you expect.

Pre-Employment Drug Testing

There's a fine line between what is desirable and what is legal in the workplace. Many employers would like to institute random drug testing of current employees, or pre-employment drug testing.

If you have such a policy or are considering one, make sure to consult an employment attorney. The laws in this area change so frequently, it's difficult to know what is acceptable and what isn't.

For example, a candidate for a part-time page at a city library in Oregon was required to take a drug test. She refused and sued. The Ninth Circuit Court of Appeal upheld, deciding this was a violation of the 4th Amendment. (Lanier v. City of Woodside)

In California, pre-employment testing is - in many cases - acceptable. But ask yourself what would require the need for drug testing? If it's a receptionist, what is the rationale? It's more understandable if the position requires an employee to drive, or handle cash, or operate machinery. Make sure your decision to drug test is correct for the position and your company, and always consult counsel before implementing such a plan.

From Barker Olmstead & Barnier.

Pets in the Workplace? Don't Count on It

So, the American Pet Products Manufacturers Association polled working Americans 18 years of age and older. According to this survey, about one in five companies allow pets in the workplace.

I find that hard to believe. Although there's little doubt that having a pet reduces stress and increases longevity in humans,

However, allowing pets in the workplace is akin to allowing children in the workplace. It is a distraction that hampers productivity.

A better idea is to have a "Bring Your Pet To Work Day" once or twice a year, just like many employers have a "Bring Your Child To Work Day".

Pets at work might be good for the pet, it might be good for the employee, but it's not good for the workplace.

From the Daily O'Collegian at Oklahoma State University

Personality Tests Prior to Hiring

The phalanx of assessment tests available to employers as they interview job candidates continues to grow.

The challenge is to decide between purely objective criteria (who is the most qualified person for the job) and subjective (who will be the best fit for my company).

Not all assessments are suitable for use as pre-employment assessments. Psychological assessments that were designed for clinical or diagnostic use, for example, should not be used. The courts have consistently ruled that psychological testing generally has no place in the business environment.

An assessment - properly administered - is invaluable to the hiring process and can increase your productivity while reducing your turnover. I personally favor and administer the Kolbe Assessment program. But find out what works best for you - make sure to involve an expert in the process.

Some excellent advice - some of which I've included here - is from Penny Morey in this article at Entrepreneur.com.

Why Have An Employee Handbook? Part II

I've written before about the need for a business of any size to have legally reviewed, written policies in force.

My favorite example is when an employee chronically comes to work late. If you try to discipline that employee, he or she can simply say, 'no one told me that'. And they could continue to get away with it.

Some employers fear that written policies bind them too much, but a well-written handbook avoids those pitfalls.

Do not use the internet or buy a software program - it takes more time than you think; you don't know how recent those policies were legally reviewed; you won't know if your company needs to have certain policies; and you don't know if those policies are specific to your state.

Get a professional - collaborate - and get the policies legally reviewed to ensure you can consistently - and properly - manage your employees.



Courtesy Kyle R. Still, Ward and Smith, P.A.

Avoiding the Pitfalls of Job References

A highly valued, long-time employee of yours decides to move out of state and asks you to write a reference letter. A no-brainer, right?

Then another employee, whom you've been trying to fire for the past few months, also asks you for a reference letter. Now what do you do?

Yes, you can be held liable for references - and whether you provide them or not. It's possible you could open yourself up for discrimination or defamation charges if you write a letter for one employee but not another.

Often in seminars, I advise clients not to provide references at all. You're under no obligation to do so, and the negative clearly outweighs the positive.

But a written policy must be established, and you must be consistent in following that policy. Many businesses simply provide dates of employment, which is a good practice.

Some employment attorneys recommend a signed waiver, where you only provide information under certain circumstances.

Consistency and communication are the key. Establish that policy, make sure all your employees understand it - and make sure you consistency follow that policy.

From Elarbee Thompson.

When Its Time To Leave Your Job

I'm often asked by unhappy managers if they should leave their job. It's a somewhat complicated question which boils down to a simple question: "Are you happy?"

Happiness in a job is critical - more critical than the money you earn or the uncertainty of trying to find a new job. We spend at least a third of our lives working; why would you want to spend all that time being unhappy?

Unhappy employees are far less productive and - whether you realize it or not - your unhappiness manifests itself on other employees, even if you don't say anything. People know.

Is the grass greener on 'the other side'? You'll never know until you find out.

People hate losses, say Richard H. Thaler and Cass R. Sunstein, authors of "Nudge: Improving Decisions About Health, Wealth, and Happiness," And "losing something makes you twice as miserable (than) gaining the same thing makes you happy." They call this being "loss averse."

We often are so focused on holding on to something we forget there are better things out there. The old saw, "the best time to look for a job is when you have a job," maybe true; but it's also a device for procrastination.

Don't spend your life 'stuck' in a job. Ask yourself every morning if your truly excited about going to work. If the answer is no, you have your answer.

Life is too short.

From Andrea Kay via Courier Post Online.