By MBAHRO on 3/8/2010 2:26 PM

Documentation of employee discipline is critical when building a list of potential candidates for a lay off. Employee discipline documentation is one of the most important aspect to adding credibility to recommending an “inflexible” or “weak link” employee for a layoff list.

However, it is too often the case that management cannot support its rationale with documented employee discipline. In those instances, the employer's decision about who to include in the lay off can be used by former employees to bolster discrimination allegations. Document your poor performers before considering a layoff.

Fighting costly legal battles can quickly offset savings achieved during a layoff. A June 2008 Supreme Court decision has made lay offs even riskier for employers. In Meacham et al. v. Knolls Atomic Power Laboratory, the court determined that an employer must bear the burden of proving the "reasonableness" of factors other than age when a RIF has an adverse impact on workers age 40 and older. Employers... Read More »

By MBAHRO on 3/5/2010 11:16 AM

A performance appraisal system, when properly managed, provides you with a means of measuring, maintaining, and improving your employee’s job performances. Through the job performance appraisal program, your company can:

Validate hiring decisions Recognize employees' job performance strengths and weaknesses Identify employees who are ready for promotion or greater responsibilities Assess training needs From a compliance perspective, you should be able to rely on performance appraisals to justify the full range of personnel decisions, including discipline and termination actions.

For example, if a performance appraisal reflects poor job performance by the employee and this employee is later terminated, the you can point to the performance appraisal to show the employee was not performing to standards. If, however, an employee with overall weak performance is given a good or even average appraisal, and the employee is later terminated without interim discipline, the performance... Read More »

By MBAHRO on 2/27/2010 5:11 AM

The manager at one of your locations notices an individual enter the establishment. The manager, assuming the individual is a customer, approaches to ask whether he can be of assistance. The individual is not a customer at all; instead, flashing her badge, she reveals she is a wage-and-hour investigator with the U.S. Department of Labor. Is your company prepared? Do your managers know how to respond to the investigator?

Here are some top tips in what to do now, so you are prepared for a Dept. of Labor audit.

Have an attorney or human resources professional audit your wage-and-hour practices, and review them at least annually. Make sure managers know what to do in the event the DOL comes knocking at the door. Make sure front-line staff know not to volunteer records or information on the spot to Dept. of Labor agents. They should ensure the investigator that the organization will be cooperative and politely refer the investigator to a district manager or corporate headquarters, who... Read More »

By MBAHRO on 2/17/2010 9:23 AM

Did you know salaried employees may not have an exempt status according to the Fair Labor and Standards Act (FLSA)? An employer, deciding about the exempt/non exempt status of an employee, who takes prohibited deductions, puts employees' exempt status at risk--meaning those employees potentially could be entitled to minimum wage and overtime for all hours they worked, going back at least two years

Who can get an exempt status anyway? Three criteria must be met before an employee can be classified as exempt according to the labor standards act.

1.       The employee must make at least a certain minimum-salary level.

·         The employee must earn a salary of at least $455 per week ($23,600 annually). If an employee does not earn at least this amount, the employee is not exempt and is entitled to minimum wage and overtime. Certain highly-compensated employees who earn at least $100,000 annually may also qualify as non-exempt.

 

2.       The exempt status employee must be... Read More »

By MBAHRO on 2/10/2010 2:01 PM

Get help assessing your worker’s compensation claim history so you don’t ruin your bottom-line this year. Here’s how.

As a large business executive, you may be considering the use of a PEO to help mitigate your workers’ compensation risk exposure. In today’s market, large companies are requesting assistance from their PEOs to determine their worker’s compensation loss potential and whether self-funded types of insurance programs are right for them. Savvy Professional Employer Organizations have developed specialized services that cater to this topic, specifically to large businesses.

Your company may be utilizing a self-funded, or partially self-funded, workers’ compensation insurance program in an attempt to secure cost savings. These programs provide large clients with a cost saving alternative to traditional insurance.

This means you are retaining a portion of the risk of loss from claims expenses rather than transferring the risk to the insurance company.

With the wrong... Read More »

By MBAHRO on 1/13/2010 6:13 AM

A performance appraisal system, when properly managed, provides you with a means of measuring, maintaining, and improving your employee’s job performances. Through the job performance appraisal program, your company can:

Validate hiring decisions Recognize employees' job performance strengths and weaknesses Identify employees who are ready for promotion or greater responsibilities Assess training needs From a compliance perspective, you should be able to rely on performance appraisals to justify the full range of personnel decisions, including discipline and termination actions.

For example, if a performance appraisal reflects poor job performance by the employee and this employee is later terminated, the you can point to the performance appraisal to show the employee was not performing to standards. If, however, an employee with overall weak performance is given a good or even average appraisal, and the employee is later terminated without interim discipline, the performance... Read More »

By MBAHRO on 1/9/2010 3:23 AM

As a business owner, you have to face the tough decisions. Sometimes the way to survive is through layoffs. But, more times than not, you can avoid this gut-wrenching situation with creativity and challenging your senior staff for alternatives. Here’s a common list of alternatives to layoffs that might work in your situation.

 

Wage freeze Hiring freeze Reductions in benefits Salary cuts Job reassignment Job-sharing Early retirement options. Such solutions may prove more cost effective for you in the long run. Put these ideas on the table with your senior staff to help vet all possible alternatives before pursuing a layoff strategy.

Modern Business Associates frequently deals with these difficult HR issues. As a HR outsourcing organization, our clients rely on us to help them effectively deal with these kinds of topics including designing plans for layoffs and appropriate HR communication plans.  

... Read More »

By MBAHRO on 1/5/2010 5:45 AM

Avoid penalties as a result of a U.S. Department of Labor Audit by understanding what deductions you can make from an exempt employee’s pay according to current exempt employee law.

Don't deduct from an exempt (or "salaried") employee's pay unless it is:

For absences from work for one or more full days for personal reasons other than sickness or disability Sick Leave Plan - For absences from work for one or more full days due to sickness or disability if the employer has a bona fide sick leave policy, plan or practice, To offset any amount received as payment for jury fees, witness fees or military pay, For a disciplinary suspension of one or more full days imposed in good faith if the employee violated a workplace conduct rule (but not if the employee breached a performance or attendance standard) For penalties imposed in good faith for violating safety rules of "major significance," To pay an employee for time actually worked during the first and last weeks of employment... Read More »

By MBAHRO on 1/3/2010 11:16 PM

As a large business executive, do you know why a PEO’s ability to link to your general ledger accounting files may be critical to your success?

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By MBAHRO on 12/16/2009 6:21 PM

This white paper, published by Ernst & Young, a global leader in assurance, tax, transaction and advisory services, reviews the impending increases in unemployment tax and how employers may be affected.

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