4 Sick-Leave Practices to Avoid During the Coronavirus Pandemic

While the spread of the coronavirus continuously increases, employees are urged to stay at home if they feel any symptoms that could be related to the virus. As employers begin to risk lost productivity due to sick leave, they may be tempted to adopt inflexible standards. Continue reading this blog post from SHRM to learn more.


Government officials are urging sick workers to stay home and employers to have flexible leave policies during the coronavirus pandemic. Don't let business pressures and reliance on past practices lead you to make bad decisions about attendance and leave policies during the public health emergency. Here are four mistakes employment law attorneys said businesses should avoid.

1. Being Inflexible

Many employers are understandably worried about the business impact of COVID-19, the respiratory disease caused by the coronavirus. They might be tempted to adopt inflexible sick time or general attendance policies to keep people coming to the workplace in an effort to maximize productivity, said Marissa Mastroianni, an attorney with Cole Schotz in Hackensack, N.J. "But it's a mistake to adopt an inflexible policy that would pressure a sick worker to come to the office," she noted.

Under Occupational Safety and Health Administration (OSHA) rules, employers have a duty to protect employees against known hazards in the workplace. "If one does not already exist, develop an infectious disease preparedness and response plan that can help guide protective actions against COVID-19," OSHA said in its Guidance on Preparing Workplaces for COVID-19.

The guidance noted that workers might be absent because they are sick or caring for sick family members, need to care for children whose schools or day care centers are closed, have at-risk people at home, or are afraid to come to work because they think they'll be exposed to the virus.

"Don't make employees feel pressured to come in when they shouldn't," Mastroianni said. If employees feel sick or think they have been exposed, they should be told to stay home. "We don't want to wait until someone is actually diagnosed."

Under OSHA rules, employees who reasonably believe they are in imminent danger can't be fired for refusing to come to the worksite. But what if an employee just doesn't feel comfortable reporting to work?

"Be more flexible with existing policies," said Susan Kline, an attorney with Faegre Drinker in Indianapolis. Employers should also consider providing additional sick time for instances of actual illness. If someone can't work from home, decide if offering paid time off is possible.

Some employees may take advantage of a flexible leave policy, Mastroianni said, but the employer's potential for liability is significant if employees are required to report to the workplace when they should stay home.

The analysis could be very fact-specific, and employers may want to contact a lawyer before denying time off.

"For a lot of companies, it's a challenge," Kline said, "because they want to be supportive but also don't know how big this is going to get."

2. Applying Policies Inconsistently

"Employers may choose to relax certain procedures set forth in sick-leave policies under extenuating circumstances, such as the current outbreak," said Jason Habinsky, an attorney with Haynes and Boone in New York City. "However, it is critical that employers apply any such modifications uniformly in order to avoid any claims of discrimination or unfair treatment."

For example, if an employer chooses to excuse absences for or to advance paid time off or vacation time to employees as a result of a COVID-19-related illness, the employer must be certain to do the same for all employees who are absent under similar circumstances.

"This requires employers to ensure that all decision-makers are aware of any temporary or permanent modifications to sick-leave policies to maintain consistency," Habinsky said.

3. Ignoring Leave Laws

All sick-leave policies must comply with applicable state and local paid-sick-leave laws, and these laws may require employers to provide leave for COVID-19-related absences. Although employers may be required to provide leave, they should note that many laws allow employees to decide when to use it.

Employers must also avoid forcing a sick employee to perform services while out on leave, Habinsky noted, as this may constitute interference or retaliation under certain leave laws, such as the Family and Medical Leave Act (FMLA). In fact, employers must avoid taking any actions against employees that could be construed as retaliation in violation of the FMLA, the Americans with Disabilities Act, and applicable state and local paid-sick-leave laws.

"This could include any form of discipline in response to an employee's use of sick time or request to use sick-leave time," Habinsky said. "Likewise, to the extent employees are performing services while working remotely from home, they must be paid for time worked in accordance with applicable federal and state wage laws consistent with their classification as exempt or nonexempt."

Laura Pasqualone, an attorney with Lewis Roca Rothgerber Christie in Phoenix, noted that many paid-sick-leave laws prohibit employers from requiring a doctor's note unless the absence is for at least three days. But requiring a medical certification at all could further burden emergency rooms and urgent care facilities and could expose employees to more germs, she said.

The U.S. Centers for Disease Control and Prevention (CDC) has urged employers not to require employees to provide a doctor's note to verify their COVID-19-related illness or to return to work.

4. Failing to Actively Encourage Sick Workers to Stay Home

According to the CDC, employers should actively encourage sick employees to stay home by:

  • Telling employees to stay home if they have symptoms of acute respiratory illness, a fever of 100.4 degrees or higher, or signs of a fever. Employees should be fever-free for 24 hours without the use of medication before returning to work.
  • Urging employees to notify their supervisor and stay home if they are sick for any reason.
  • Ensuring that the company's sick-leave policies are flexible and consistent with public health guidance and that employees are aware of the policies.
  • Making sure contractors and staffing agencies inform their employees about the importance of staying home when ill and urging business partners not to reprimand workers who need to take sick leave.
  • Not requiring employees with acute respiratory illness to provide a doctor's note to verify their illness or to return to work, since health care providers may be overwhelmed with requests.
  • Maintaining flexible policies that allow employees to stay home to care for a sick relative.

"Employers should be aware that more employees may need to stay at home to care for sick children or other sick family members than is usual," the CDC said.

[Visit SHRM's resource page on coronavirus and COVID-19.]

SOURCE: Nagele-Piazza, L. (18 March 2020) "4 Sick-Leave Practices to Avoid During the Coronavirus Pandemic" (Web Blog Post). Retrieved from https://www.shrm.org/ResourcesAndTools/legal-and-compliance/employment-law/Pages/4-Sick-Leave-Practices-to-Avoid-During-the-Coronavirus-Pandemic.aspx


Employers Grapple with Teleworking Decisions, Fairness

With businesses closing daily due to the implications that the COVID-19 pandemic has brought upon them, many employers are still questioning whether their employees have the resources to successfully work remotely. Read this blog post from SHRM to learn more.


It seems that every hour, another company announces that its employees will work from home to help stop the spread of the coronavirus—although working remotely is not an option for everyone.

For example, roughly two-thirds of the 700 employees at the Community Healthcare Network need to be onsite to provide patient care. But what about the administrative staff who may be able to work from home? Should they be given the opportunity?

Kenneth Meyer, the chief human resources officer at the New York City-based network of 12 clinics, has been grappling with the question. "Will they have the resources they need to perform their jobs?" he wondered. He's not sure that the employees have the computers and Internet connections they'll need. "We're a nonprofit. We don't have computers and scanners just lying around," he added.

And there's another element to consider: Is it fair to let some employees work from home while others labor in an environment where they are more at risk of contracting the coronavirus? "Staff morale definitely enters that equation. It isn't the governing the factor, though," Meyer explained.

Deciding whether to let employees work from home amid the pandemic isn't easy for many firms. Health care providers and manufacturers require most people to be onsite to keep operations running. Yet even for companies where it is technically possible for employees to work remotely, there are other considerations that must be addressed. While such companies are often OK with some people working from home, they lack the systems and protocols to keep the business running smoothly when there is no one at the main office.

Last week, there was significant disagreement among senior executives at software maker Betterworks about whether to close the company's offices temporarily, according to Diane Strohfus, Betterworks' chief human resources officer. Some favored shuttering the offices, while others argued it wasn't necessary because the coronavirus situation was overblown.

"Opinions were all over the map, but we decided to err on the side of safety and caution," Strohfus said. The company decided to make the work-from-home policy mandatory so that people who really wanted to stay home didn't feel pressured to go to the office by those who chose to work there. She added that many of the employees at the Redwood City, Calif.-based company have infants and school-age children, so allowing people to work from home made sense when school and day care closings are happening all over the country.

"I told managers to expect more distractions," Strohfus said.

Strohfus added that even though it's technically easy for the company's employees to work from home, for a firm accustomed to personal interactions, there were still adjustments to be made. To improve communication, channels were added to Slack, a messaging platform used by Betterworks employees, and managers are organizing video meetings to keep employees connected.

"We encourage [videoconferencing]. People can feel your personality when they see your face," Strohfus explained.

Companies don't have to let people work from home, said Tracy M. Billows, a partner in the Chicago office of law firm Seyfarth Shaw who specializes in labor issues. However, she added that if someone is pregnant or has a disability or medical condition that affects his or her immune system, companies must make some accommodations.

Billows said companies need to follow existing laws and coronavirus-specific directions from institutions like the U.S. Centers for Disease Control and Prevention when creating work-from-home policies amid the pandemic. Beyond that, companies need to account for their individual circumstances. Has an employee been infected? Is the company located in a virus hot spot where schools are closed? Does the work need to be done onsite? Companies must balance the safety and security of their workers with what the business needs to continue to operate, she explained.

"There are no one-size-fits-all answers," Billows said.

As the virus spread, Elyse Dickerson thought about how to treat the 10 hourly employees who work in her health care company's manufacturing facility and do not have sick leave. Last week, she told them she would pay them for two weeks if they were feeling ill or needed to care for a family member.

"If they don't get paid, they can't feed their families or pay their rent," said Dickerson, co-founder and chief executive officer of Fort Worth, Texas-based Eosera, a maker of ear care products. She told her other 10 employees that they could work from home but might be called in to help in the manufacturing facility if someone is out sick.

Dickerson doesn't know what the company will do if area schools close, although that won't be a problem for most of her employees. She said employees could bring their children to work if necessary. "I suppose we could put on a movie," she said.

And if an employee contracts the virus, she said the company would have the facility deep-cleaned within 24 hours. She has two months' worth of product in reserve in case there are any production delays.

"We already bleach down the facility every night," she said. "You could eat off the floors."

SOURCE: Agovino, T. (18 March 2020) "Employers Grapple with Teleworking Decisions, Fairness" (Web Blog Post). Retrieved from https://www.shrm.org/ResourcesAndTools/hr-topics/employee-relations/Pages/Employers-Grapple-with-Teleworking-Decisions-Fairness.aspx


Viewpoint: What’s Your Company’s Emergency Remote-Work Plan?

While coronavirus (COVID-19) is disrupting the workplaces of many in various countries, it is imperative that the United States takes as many precautions as possible. Many workplaces have emergency plans into fruition for storms and unforeseen weather, but are there plans in place for a virus that is spreading quickly? Read this blog post to learn more.


This coronavirus (or COVID-19) has taken a more serious turn in the U.S. with warnings that it could very well impact how, when and where we work:

"Disruption to everyday life may be severe," Dr. Nancy Messonnier, director of the CDC's National Center for Immunization and Respiratory Diseases, cautioned at a news conference. "Schools could be closed, mass public gatherings suspended, and businesses forced to have employees work remotely."

The global spread of the virus may be a moment that reveals whether employers are ready to respond rapidly to unexpected workplace changes. Business travel could decrease or come to a full stop. More employees may need to work outside of local "business hours" and use video conferencing to operate across time zones. And, if it gets bad enough, many could indeed be asked, or request, to work remotely.

Are organizations ready? Chances are probably not. But even for those open to rethinking how the work would get done, are they ready for the inevitable post-crisis question: "Why don't we do this all the time?"

How do you prepare your organization to not only flexibly respond to this potential disruption, but also to use it as an opportunity to reimagine work broadly? Here are five steps to get started:

Acknowledge the possibility that all or part of your workforce may need to work remotely.

Hoping and praying it doesn't happen, or simply ignoring it, is not a strategy. Neither is handing everyone a laptop and saying "Go work someplace else" on the day they expand wide-scale quarantines. Plan as if the only way to remain operational will be for as many employees as possible to work remotely. Gather a cross-functional team together now that includes business-line leaders, IT, HR, communications and facilities to start to plan for different scenarios and optimize execution, should circumstances require a rapid response.

Map out jobs and tasks that could be affected.

Note which roles and duties: 1) Can be done, even partially, without a physical presence in the workplace, 2) Cannot be done, even somewhat, outside of the physical office, and 3) Not sure.

Challenge any potentially inaccurate default assumptions about specific jobs you may have thought couldn't be done remotely. And for those in the "not sure" column, be willing to experiment. For example, for years, I've been told, "Administrative assistants can't work flexibly." And, for years, I've worked with teams of administrative assistants to prove that is not true. Yes, certain tasks they complete require physical presence, but those can be planned for. The majority of their tasks can happen effectively outside of the traditional model of work and benefit the business.

Audit available IT hardware and software, and close any gaps in access and adoption.

Assess the comfort level with specific applications, such as video conferencing and other collaboration/communication platforms. Where you find gaps, provide training and opportunities for practice before people need to use them. Real-time mastery is not optimal and is inefficient. Identify devices owned by the organization that people could use and clarify acceptable "bring your own" phone and laptop options. Determine if there are any data-security issues to consider and how best to address them beforehand.

Set up a communications protocol in advance.

This communications plan needs to outline: how to reach everybody (e.g., all contact information in one place, primary communication channels clarified — email, IM, Slack, etc.); how employees are expected to respond to customers; and how and when teams will coordinate and meet.

Identify ways to measure performance that could inform broader change.

After the flexible response period is over, this data will allow you to reflect on what worked, what didn't and why. The data will also prepare you in advance to answer the inevitable question once the crisis has passed, "Why don't we do this all the time?" Depending upon the outcomes, you may decide to continue certain aspects of the flexible response permanently. For example, perhaps you cut business travel by 25% and substitute video conferencing. You determine afterward that about 80% of those meetings were equally as effective virtually. Therefore, a 20% decrease in business travel will continue, but this time as part of the organization's sustainability strategy to cut carbon emissions.

Global health emergencies, like COVID-19, are scary, disruptive and confusing for everyone. And if you plan and nothing happens? Then, at minimum, you have an organized, flexible work disaster response ready the next time there's a challenge to operational continuity, which chances are, there will be.

SOURCE: Williams Yost, C. (10 March 2020) "Viewpoint: What’s Your Company’s Emergency Remote-Work Plan?" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/employee-relations/pages/viewpoint-whats-your-companys-emergency-remote-work-plan.aspx


Coronavirus: How Employers Around the Globe Are Responding

Employers are continuously looking out for the safety of their employees and customers. With the spread of COVID-19 becoming faster and more relevant, employers are putting in effect their emergency plans to continue providing safety measures for both employees and customers. Continue Reading this blog post to learn more.


Companies are scrambling to respond as the coronavirus, which causes the respiratory illness COVID-19, spreads around the world. During a Society for Human Resource Management (SHRM) webcast March 10, an official with the U.S. Centers for Disease Control and Prevention asked employers to do all they can to slow the coronavirus.

SHRM Online has collected the following news reports that reflect the different ways in which organizations are reacting to protect their employees and their businesses.

Emergency Leave

Walmart to Allow Any Worker Concerned about Coronavirus to Stay Home 'Without Penalty'
Walmart is enacting an emergency leave policy for its 1.4 million hourly US workers that allows them to take time off without penalty if they fear the spread of a new virus. The nation's largest private employer said Tuesday that a worker at its store in Cynthiana, Ken., tested positive for the COVID-19, the disease caused by the new coronavirus.
(New York Post)

Colorado Will Require Paid Sick Leave for Certain Workers in Response to Coronavirus
The state of Colorado will soon require employers to offer paid sick days to hundreds of thousands of service and hospitality workers in response to the spread of COVID-19, the disease caused by the new coronavirus. Gov. Jared Polis announced the new policy on Tuesday morning as he declared a state of emergency.
(Colorado Public Radio)

Employee Relief Fund

Amazon Launches $25 Million Relief Fund for Delivery Drivers, Seasonal Employees Amid Coronavirus Outbreak
Amazon is launching a $25 million relief fund for delivery drivers and seasonal workers amid the coronavirus outbreak, it announced March 11.  The aim is to help employees "that are under financial distress during this challenging time," the company said. This includes Amazon Flex drivers and its network of delivery service partners, who handle last-mile package deliveries, as well as seasonal employees, who help the company manage variation in customer demand during peak periods and holidays. Amazon will allow these employees to apply for grants that are equal to up to two weeks of pay if they're diagnosed with the novel coronavirus, or COVID-19.

(CNBC)

Coronavirus Testing

NYC's Hotel Workers Union to Offer Members Coronavirus Testing
The health insurance plan run by the city's powerful hotel workers union will soon offer more than 90,000 people tests for the coronavirus. About 40,000 workers and 50,000 of their relatives and union retirees are covered by the plan run by the New York Hotel Trades Council.
(New York Daily News)

Closures and Quarantines

Starbucks Closed a Seattle Store after 1st Case of Employee Diagnosed with Coronavirus
Starbucks temporarily closed a Reserve store location in downtown Seattle after an employee was diagnosed with COVID-19 and was quarantined March 6. This is the first case of coronavirus contracted by a Starbucks in-store employee. The company immediately closed the affected store, initiated a deep-clean procedure and sent home employees that had direct contact with the infected partner.
(Nation's Restaurant News)

'No-Contact' Food Delivery Offered

Gig Economy Companies from Uber to Lyft Take Action as Coronavirus Cases Grow
Uber and Lyft are planning to compensate drivers affected by the coronavirus for up to 14 days. Postmates and Instacart have unveiled "no-contact" food delivery. DoorDash is letting customers leave in-app instructions if they prefer orders left at the door. Amazon Flex, which taps independent contractors to make deliveries, doesn't have a policy to compensate drivers and is instead supporting on an "individual, case-by-case basis."
(CNBC)

Teleworking Promoted, Office Visits Restricted

Twitter Tells Employees to Work from Home as Tech Firms React to Coronavirus
Twitter on March 2 became the first major U.S. corporation to strongly encourage its employees to work from home to avoid spreading coronavirus.
(Los Angeles Times)

How IBM, Goldman Sachs, PwC and Others Are Responding to the Coronavirus Threat
IBM, which nearly three years ago ended remote work for some U.S. employees, said Feb. 27 it had asked workers in coronavirus-affected areas to work from home "wherever possible." The guidance was issued for IBM workers in China, Japan, South Korea and Italy. The company also restricted travel to some locations and canceled its in-person participation in the RSA Conference on cybersecurity in San Francisco.
(Washington Post)

Google Tells More than 100,000 North American Employees to Stay Home
Google is telling all of its North American employees to stay home until at least April 10, as the COVID-19 coronavirus spreads, CNBC reported March 10. On March 9, CNBC reported that the company blocked all external visitors from coming into some of its offices, including New York and the San Francisco Bay Area where its Silicon Valley headquarters are located.
(CNBC)

UBS Divvying Up Teams in Switzerland, Having Them Switch Off Teleworking
UBS, the Swiss bank headquartered in Zurich, has begun implementing a split-operations policy in Switzerland this week as part of its coronavirus response. The firm has already implemented a similar policy for its employees across the Asia Pacific region.
(News of the Day)

Cuomo Asks NY Businesses to Split Employee Shifts to Prevent Coronavirus Spread
The State of New York will ask businesses to consider having employees work two shifts and allowing telework, Gov. Andrew Cuomo said in a CNN interview.
(New York Post)

Domestic and Global Travel Restricted

Ford Bans Employee Travel on Coronavirus Fears
Ford Motor Company told employees March 3 that it is banning all non-essential air travel until at least March 27 because of concerns about the novel coronavirus. Ford had been restricting travel to and from China but has now extended the ban to all flights, both international and within the United States, out of concern for employees' health and safety. There may be exceptions, a Ford spokesperson said, but they will probably be rare.
(The Motley Fool)

Coronavirus Cancellations, Travel Bans
Google on March 3 called off its flagship developers conference, called I/O, which was scheduled for May in Mountain View, Calif. Last year, the three-day event drew 7,000 attendees. The company said it would look for ways to "evolve" the event, raising the possibility of livestreamed or remote sessions. Several other companies and organizations, including the World Bank and the IMF, said they would replace in-person gatherings and meetings with virtual ones.
(NPR)

Coronavirus Conference Gets Canceled Because of Coronavirus
The Council on Foreign Relations canceled a roundtable called "Doing Business Under Coronavirus" scheduled for Friday in New York due to the spread of the infection itself. CFR has also canceled other in-person conferences that were scheduled from March 11 to April 3.
(Bloomberg)

Airlines Cut More Flights, Execs Take Pay Cuts as Coronavirus Takes Toll on Flying
United CEO Oscar Munoz and president Scott Kirby will forgo their base salaries through at least June 30. United also said it was postponing "non-critical" projects requiring capital expenditures, got a $2 billion loan from a group of banks and expects to incur a first-quarter loss. Southwest Airlines CEO Gary Kelly said Monday in a message to employees that he would take a 10 percent pay cut and Delta said it is instituting a hiring freeze, taking some planes out of service and retiring older aircraft.
(Herald & Review)

Work Areas Disinfected

How Dallas-Area Restaurants Are Prepping Their Kitchens and Dining Rooms for Coronavirus
Extra hand sanitizer is only part of the effort. Some say food delivery is the next big answer. At one eatery, crews have started sanitizing credit-card pin pads, surface areas and both sides of all door handles more regularly. Like many restaurants, it has put out more hand-sanitizing dispensers and ordered touchless hand sanitizer dispensers to replace manual ones.
(The Dallas Morning News)

Nike Closed Its Worldwide HQ in Oregon for Deep-Cleaning after 1st U.S. Coronavirus Death
Nike announced March 1 it temporarily closed its corporate headquarters in Beaverton, Ore., in order to deep clean the campus following the first US death from COVID-19 the day prior. "While we have no information indicating any exposure to Nike employees, out of an abundance of caution, we are conducting a deep cleaning of campus," a Nike spokesperson told KGW, the Portland, Ore., NBC-affiliated station. "All WHQ buildings and facilities, including fitness centers, will be closed over the weekend."
(Business Insider)

Facebook Shuts London, Singapore Offices for 'Deep Cleaning' After Employee Diagnosed with Coronavirus
Facebook said March 6 it was shutting its London office and part of its Singapore base for "deep cleaning" after an employee in the Asian city state was diagnosed with coronavirus.
(The Economic Times)

SOURCE: Gurchiek, K. (12 March 2020) "Coronavirus: How Employers Around the Globe Are Responding" (Web Blog Post). Retrieved from https://www.shrm.org/hr-today/news/hr-news/Pages/Coronavirus-How-Employers-Around-the-Globe-Are-Responding.aspx


As Coronavirus Spreads, Managers Ask How to Handle Telecommuting

With the Coronavirus spreading throughout larger cities in the United States, employers are looking at various ways to keep the workplace and employees safe and healthy. Many employers are turning to remote work to support these efforts. Read this blog post from SHRM to learn more about supporting remote work.


As the coronavirus continues to spread through the U.S.—so far infecting at least 162 people and causing 11 deaths—many employers are considering telling or have already told their employees to work from home. In China, where the virus was first identified, millions of people are working remotely.

But there are technological, process, security, workers' compensation and even tax considerations employers must keep in mind to support remote work.

How to Create an Effective Teleworking Program

One of the first tasks for those who plan to manage teleworkers is deciding who on staff may be eligible for telework. Once that's decided, managers should keep in mind the following best practices.

SHRM's Remote Work Resource Center

These resources can help employers set up flexible work arrangements. They include a sample telecommuting application form and telecommuting policy and information about whether telecommuters are covered under workers' compensation.

Considering a Remote Work Policy? Consider This

Have you checked whether your workers' compensation policy covers remote employees? Do you have technology that lets you see your remote workers during meetings? Do you micromanage a remote worker more than the people who sit beside you, simply because you can't see what the remote worker is doing? Those are questions that HR departments should address to create a telecommuting program.

Technology to Support Remote Workers Evolves

In addition to videoconferencing programs, file-sharing platforms, and project management and time-tracking tools, new adaptive analytics and secure data-access technologies are helping employees who work from home or other locations outside the office.

Building and Leading High-Performing Remote Teams

Overseeing a team of remote employees doesn't come naturally to many managers. Some even question how they can know if people working away from the office are really working. But the guiding principles of leadership are the same regardless of whether the team is located under one roof or geographically dispersed.

Helping Remote Workers Avoid Loneliness and Burnout

Remote work forces structural and systemic change to accommodate different ways of working and different ways of being "available" and productive. Remote and flex work also present new challenges for managers.  In particular, burnout and loneliness.

SOURCE: Wilkie, D. (06 March 2020) "As Coronavirus Spreads, Managers Ask How to Handle Telecommuting" (Web Blog Post). Retrieved from https://www.shrm.org/ResourcesAndTools/hr-topics/people-managers/Pages/coronavirus-remote-work-.aspx


supreme court

Supreme Court to Rule Next Year on the ACA's Validity

With the Affordable Care Act (ACA) being questioned on whether it is in-whole or in-part constitutional, the U.S. Supreme Court has decided to rule on this matter again. The ruling regarding the validity of the ACA is expected by June of 2021. Continue reading this blog post to learn more.


The U.S. Supreme Court will again rule on whether the Affordable Care Act (ACA) is constitutional, in whole or in part, during its term beginning this October, the court announced on March 2. A ruling is expected before the term ends in June next year.

In 2019, Congress eliminated the ACA's penalty on individuals who lack health coverage—the so-called individual mandate. In the aftermath, several Republican state attorneys general filed a lawsuit claiming the ACA itself was no longer constitutional, while Democratic states and the House of Representatives, controlled by Democrats, stepped in to defend the statute.

Back in 2012, the U.S. Supreme Court upheld the constitutionality of the ACA's individual mandate as a justifiable exercise of Congress's power to tax. But without an existing tax penalty, ACA critics charge that the health care statute itself, or at least the parts of the act closely linked to the individual mandate, are no longer constitutionally valid.

In December 2018, a Texas district court struck down the ACA but stayed its ruling pending appeal, concluding that the individual mandate is so connected to the law that Congress would not have passed the ACA without it. On appeal, in Texas v. United States, a split panel of the 5th Circuit instructed the district court to rehear the matter and "to employ a finer-toothed comb on remand and conduct a more searching inquiry into which provisions of the ACA Congress intended to be inseverable from the individual mandate."

Now that the Supreme Court has agreed to hear the case, it will not go back to the district court judge for that analysis, leaving the high court free to uphold the entire ACA, uphold the statute but void provisions linked to the individual mandate, or strike down the law in full, although that draconian option is viewed as exceedingly unlikely by legal analysts. The same five justices that upheld the ACA in 2012 remain on the court.

The health law remains fully in effect during the litigation, including all employer coverage obligations and reporting requirements.

The Supreme Court's Packed Schedule

The Supreme Court has placed five cases—including Texas v. United States—on the 2020 docket. This suggests that the hearing could be held in early or mid-October 2020, right before the 2020 election, although we may not know the oral argument schedule until later this spring or summer. In any event, a decision in Texas v. United States would not be expected until 2021 (and presumably not until June 2021).

It is worth noting that the Court will hear a separate ACA-related challenge on the final day of oral argument during its current term. On April 29, 2020, the Court will hear one hour of oral argument in the consolidated cases of Little Sisters of the Poor v. Pennsylvania and Trump v. Pennsylvania. These cases focus on the validity of two Trump-era rules that created broad exemptions to the ACA's contraceptive mandate for religious or moral reasons. And we are still waiting on a decision from the Court over whether insurers are owed more than $12 billion in unpaid risk corridor payments; oral argument was held in that challenge in December 2019 and a decision could be issued at any time.
(Health Affairs)

Lawsuit Stoked Confusion

America's Health Insurance Plans (AHIP), the insurance industry's leading lobbying group, applauded the justices' decision to hear the lawsuit. "We are confident that the Supreme Court will agree that the district court's original decision to invalidate the entire ACA was misguided and wrong," said AHIP President Matt Eyles in a statement.

Association for Community Affiliated Plans (ACAP), a group that represents more than 70 safety-net plans, noted that the lawsuit "has cast a pall of uncertainty over the future of the individual insurance market," according to ACAP CEO Margaret A. Murray.
(Fierce Healthcare)

5th Circuit Highlighted Suspect ACA Provisions

When the 5th Circuit instructed the district court to rehear the matter and to focus on those ACA provisions that Congress intended to be "inseverable from the individual mandate," this suggested, legal analysts said, that the appellate court was unlikely to overturn the ACA in full. However, the appellate court might have struck down those parts of the law directly related to the individual mandate, such as the 5:1 ratio age band, under which insurers can't charge seniors premiums more than five times what younger patients pay, and community rating, which prevents insurers from varying premiums within a geographic area based on age, gender, health status or other factors.

The increase in revenue to insurers from the individual mandate was meant to offset the decrease from these restrictions. It's unclear whether the U.S. Supreme Court will take a similar approach when it hears the case.
(SHRM Online)

SOURCE: Miller, S. (03 March 2020) "Supreme Court to Rule Next Year on the ACA's Validity" (Web Blog Post). Retrieved from https://www.shrm.org/ResourcesAndTools/hr-topics/benefits/Pages/supreme-court-to-rule-next-year-on-CAs-validity.aspx


Viewpoint: Your First 90 Days as a New Manager

Did you know: the average turnover rate, from the Vice President Level, has decreased from 3.3 to 2.2 years. With this being said, it's important that when coming in as a new manager that the first few words said will impact the image given to colleagues. Read this blog post from SHRM to learn helpful tips on how to make being the new manager a little less difficult.


"The president of the United States gets 100 days to prove himself. You get 90."

That's how author Michael D. Watkins opens his seminal book on leadership transitions, The First 90 Days. The three-month period, as he explains, is a quarter, the time frame used by companies to track performance, and it is long enough to offer meaningful indicators of how a new manager is doing. Research shows that success or failure within the first few months of a new management role is often an accurate predictor of ultimate success, he adds.

"When leaders derail, their failures can almost always be traced to vicious cycles that developed in the first few months on the job," Watkins writes.

These vicious cycles frequently begin in a few similar ways, says leadership expert George Bradt, co-author (with Jayme Check and John Lawler) of The New Leader's 100-Day Action Plan. Some new managers do not realize the impact of their early words and actions, and are inadvertently sending colleagues the wrong message. Others focus on a new strategy before earning trust and support from the team. Others expend too much energy on the wrong projects and neglect the priorities of stakeholders, Bradt writes.

Moreover, recent widespread trends in the business world have made the task of mastering the first three months on the job even more important for new managers, Watkins says. Chief among these trends is that management is turning over at a faster and faster rate.

"The pace of transition has gone up pretty dramatically," says Watkins. As evidence, Watkins cites a recent study of Fortune 100 global healthcare companies. Since 2013, average turnover time at the vice president level decreased from 3.2 years to 2.2 years. "There's a premium on getting up to speed faster," he explains.

Watkins's approach is to break down a new manager's first 90 days into 10 separate directives: Prepare Yourself; Accelerate Your Learning; Match Strategy to Situation; Negotiate Success; Secure Early Wins; Achieve Alignment; Build Your Team; Create Alliances; Manage Yourself; and Accelerate Everyone.

Given this, we asked Watkins and Bradt to contextualize their guidance and highlight key best practices for managers. We also asked a few seasoned managers with successful track records in new leadership roles to provide their insight and perspective on what drove their success.

Preparing and Assessing

Preparation for a new managing role is crucial, and the preparation process should begin before the first day on the job. In most cases, it should start before the first job interview, explains Michael Sarni, CPP, recruiting and training officer for the Emergency Management Agency of the City of Lockport (Illinois), and president of Security Consulting Specialists.

In Sarni's view, a manager candidate conducts due diligence research on the company before being interviewed. The information-gathering process continues during the interviews, with the manager candidate asking informed questions about role expectations and the workplace environment. "A good manager…should always be preparing for future outcomes," Sarni says. "This must start before the first day they walk in the door and continue to the last day they leave the office."

Of course, the manager should also take time before the interview to prepare answers to common interview questions. In Bradt's view, all interview questions boil down to one of three basic questions: What are your strengths? Will you be motivated? Are you a fit for the organization? Given this, managers should prepare answers before the interview that convey three fundamental points: My strengths are a match for this job. My motivations are a match for this job. I am a good fit for this organization.

Another key aspect of preparation is learning about and assessing the company's culture. "I think understanding the culture—and adjusting one's approach accordingly to new challenges and opportunities—is ultimately the key to success in the first 90 days," Sarni says.

Sometimes, a manager can do this by using scouts and spies: customers, former or current employees, or anyone who has been involved with the firm and can speak to its culture, Bradt says. Sometimes, these associates can be a good source of information on an organization's unwritten norms, such as the actual hours most work, as opposed to the hours prescribed in the employee handbook; how employees socialize outside the office; how connected and active staff is through email and texting; and more.

Managers can also learn about the firm's culture simply by being hyper-observant every time they visit the office–taking note of people's interactions and demeanor, their dress, the office's physical set-up and structure, noise level, and other signs. "You can learn an awful lot by simply walking into a place," Bradt says.

In general, new managers who fail to understand a company's culture stand a much higher chance of ultimately being rejected by it. But now, Watkins says, with millennials representing the largest generation in the U.S. workforce, a new dynamic has come into play. A millennial employee joining a new company may in fact make the effort to assess the company's culture—but find it lacking. "They're not terribly tolerant, necessarily," Watkins says with a laugh.

This has created a crossroads, he says: "Is it incumbent on them to adapt to the culture? Or will they ultimately be the agents of change of the culture?" At some firms, the current situation is bi-directional adaptation: millennial employees try to fit in with the culture (at least in some ways), but the company also tries to evolve its own culture so that younger employees stay engaged and not leave. "A lot of companies are grappling with that. It's a real generational shift," Watkins says.

Overall, it behooves new managers to be aware of this generational shift and consider how they might contribute to the company's overall goal of ensuring its culture does not drive away promising employees. "Onboarding is the leading edge of engagement, and engagement is a core part of retention," Watkins says.

Owning Day One

Although preparing, learning and assessing are all key steps before the job begins, they alone will not guarantee a successful transition, experts say. The first several days of the new role will bring their own challenges.

Rex Lam, a Hong Kong-based senior consultant with Guardian Forest Security, has successfully transitioned into a few different management positions since he joined the security industry 15 years ago. While he also supports the importance of preparation, he says that well-prepared managers who are excited about their new ideas must avoid coming off as a know-it-all.

"Avoid the impulse to immediately want to make an impact for the good by changing everything. The attitude should be to learn and listen first, and do not let perfection be the enemy of good," Lam says.

Sarni advises extending the learning process that most new managers undergo in the early days, so that it covers more than just the security department. "Taking a methodical approach to learning as much as you can, not only about your own department and how it fits into the organization, but also about all the other departments with which security impacts operations and culture, should be an early objective," he explains.

He also recommends that new managers try to make the effort to learn what's below the surface. "Always dig a little deeper to learn and understand an operation further. The more one is prepared for the unexpected, the easier it is to adapt when the unforeseen challenge presents itself," he adds.

Bradt agrees with the importance of listening and soaking in information as soon as the job begins, but he also said that too many managers show up with a passive, just-do-no-harm attitude. This is inadvisable; all eyes are on a new manager during the first few days and people start forming opinions based on limited contact. "If you show up looking clueless, people are going to assume you're clueless," Bradt says.

Instead, new managers should come in on the first day with ideas of how they want to position themselves strategically, and what message they want to convey. Then they can listen and learn, and also ask directed questions that support this strategy and message.

Bradt offered the following example to illustrate: A new manager, taking over a leadership position, does due diligence and finds that while the firm is in decent financial shape, competitors are nipping at its heels and gaining ground. So on day one, the new manager listens and learns, but also asks many other department heads, "I've looked at what you've done so far, and it's amazing. What do you think you're going to do next to stay ahead of the curve?" That type of directed question reflects an active focus-on-the-future strategy and message, rather than a passive approach, Bradt explains.

Similarly, a new manager for a firm that needs to be more customer-focused can decide to spend some of day one meeting with customers, outside of headquarters. Here, Bradt recommends following the leadership maxim "Be, Do, Say." New leaders will be judged on all three, in that order of influence. What a leader says comes third; what a leader does comes second; who a leader is comes first. So, if a new leader continues to meet with customers through the first 90 days, at some point the leader will "be" a customer-focused leader in the eyes of staff. That will be part of his or her identity.

Early Wins

Early accomplishments, even small ones, are usually a big boost toward ultimate success for new leaders. If someone asks an employee, "How's the new manager?," while it's nice if the employee says he or she is likable, it's even more indicative of future success if the employee can say he or she already accomplished X.

Lam offers the example of taking over a management position for a company that wanted to alter operations so that it could plan more than three years ahead of time, rather than focusing completely on the current workload. For Lam, targeting the underlying systemic issue led to an early win. "The key is to identify the bottleneck and focus on eliminating the root cause," Lam says.

In this case, Lam identified the bottleneck—inefficient processes—that prevented the team from having enough resources and time for advance planning. So, he decided to target inefficiencies. He improved the resource allocation process for the service team; the team's quality of work increased, and costs immediately went down because outside service contractors were no longer needed. The team was also spending too much time filling out detailed reports for small expenses such as subway and bus fares; Lam distributed pre-paid cards, and this tradeoff won back time for staff.

The cost and time savings became quickly apparent, resulting in an early win for the new manager and eventually developed into a significant accomplishment. "I was fortunate to make the correct decisions," Lam says.

And the chances for notching early accomplishments increase if they are based on a broader strategy that is appropriate for the type of mission that is needed. Watkins recommends that new managers use his STARS model to match strategy and situation. Using this model, the new manager must assess the business mission at hand (Start-Up, Turnaround, Accelerated Growth, Realignment, Sustaining Success) before designing an appropriate approach and strategy.

Alignments and Allies

Often, Watkins's directives of Achieve Alignment and Create Alliances are related for new managers in the security field, Sarni says. Since security touches on every facet of a company, alliances between the security manager and managers in other departments are critical. These alliances can be made with the goal of interdepartmental collaboration, for the benefit of all.

"Often, the security function is viewed as a hindrance to operations in other areas of the organization," Sarni says. "But, if the security manager takes the time to learn as much as possible about those operations and proceed from the philosophy of being a partner with those other functions, security can find ways to not only better secure the environment, but also improve upon methodologies others are using."

Toward this aim, the new security manager can begin to educate selected managers from other departments about how security can align with and support that department's goals and objectives. "Building those partnerships and empowering other departments to feel that they have a stake in security's outcomes—and showing how it can benefit them—dramatically improves the chances of success," Sarni explains.

However, Sarni concedes that this is no easy mission. It takes people skills, emotional intelligence and some deft explaining. "These concepts may sound simple enough in theory, but the reality is far more challenging and delicate," Sarni says. "The brute force approach, even with a mandate, rarely yields the best results. Finesse, patience and understanding the nuances of the environment generally yield the most desirable outcomes."

Forming alliances and creating alignments with other departments is especially crucial for new managers charged with overhauling operations. "Through most of my career I have acted as a 'change agent' for the organizations to which I have been hired," Sarni explains. "But even in that environment, where I have had a mandate from senior management, generating buy-in from peers in different areas of the organization has taken creativity, sensitivity, and perseverance."

On a one-on-one level, it's always best for the new manager to create alliances that function as a two-way street. When discussing issues with other managers, two questions are often very helpful, experts say: What is a best practice that will help me in this firm? How can I help you be successful?

Building Your Ever-Changing Team

Team building for new managers takes a certain mind-set, says Lam, and for new managers who previously worked on their own, it requires a mind shift toward the collective.

"When you are one person, you are the star. When you are the manager, you are a star maker," Lam says.

In many cases, one of two situations apply. A new manager will take over an existing team, with the hope that it will stay intact. Or, the new manager is tasked with building his or her own team. In either instance, one principle is equally valid, Bradt says: every team member should be playing to their strengths.

This should be kept in mind by new managers busy with building their own teams and actively hiring. And it should also be remembered by new managers inheriting an intact team. They should still do a "role sort" in the first 90 days, and make sure everyone is in the right job. A good skill set/role match could mean a star in the making, whereas a mismatch can make for all sorts of problems down the road. Bradt says that one of the top regrets cited by leaders is "not moving fast enough on people" (i.e., reassigning staffers to best-fit positions) earlier in their tenure.

Finally, Watkins cites two recent trends that may have a big impact on team leading. One trend is that more teams are becoming virtual, with some members in different time zones and less face-to-face communication. This type of team can still be managed effectively, but it can take additional skills that not all managers have.

The second trend is turnover. The rate of turnover for team members is even outpacing the rate increase for management turnover. This is true in part because younger workers are more likely to leave a job if they are dissatisfied with the company. As a result, many teams are in a state of constant flux.

"What I find now, pretty much consistently, is that virtually all teams are at some point of transition at any given point in time," Watkins says. This can mean an added challenge for the new manager: learning to lead a team consisting of parts that never completely stop moving.

The Future

What will the new managers of the future have to contend with?

In the last decade, culture has become more important to the ultimate success of the company, Bradt says. Fast forward 10 years, and that continues to the point where "culture is the only thing that matters." With the continuing advancement of technology, companies will be able to duplicate almost any type of competitive advantage in product and services and operations that their competitors may have.

So the only real meaningful component that will separate companies from each other is culture. "Their culture is the only thing they can own," he says.

As for Watkins, he believes that recent innovations like artificial intelligence and the growth of ever-more-sophisticated analytical machines may have a vast impact on how work is done, giving him some pause when he considers the future. He knows that the exact extent and ramifications of this transformation (including the impact on management), and the time frame, cannot be predicted with certainty. "But I tend to believe it's going to happen sooner rather than later," he says.

"I'm wondering if there will be managers in 10 years," he says. "Your manager could be an algorithm."

Mark Tarallo is senior content manager of  Security Management magazine.

This article is adapted from Security Management magazine with permission from ASIS © 2019. All rights reserved.

SOURCE: Tarallo, M. (19 February 2020) "Viewpoint: Your First 90 Days as a New Manager" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/organizational-and-employee-development/pages/viewpoint-your-first-90-days-as-a-new-manager.aspx


Sharpen Your Recruiting Workflow with Service-Level Agreements

Recruiting can be a long and drawn-out process, but using service-level agreements (SLAs) can speed up the dreary process along with generating accountable talent. Firms are beginning to use SLAs to improve recruiting results and consistency. Continue reading this blog post from SHRM to learn more.


Using service-level agreements (SLAs) in recruitment can speed up a laggard hiring process, generate accountability from hiring managers and create the expectation that talent acquisition (TA) is a top company priority.

Common in sales, marketing and procurement, SLAs are written standards that the TA function and hiring managers agree upon in order to understand the responsibilities of each party.

"Service-level agreements have proven to be one of the most effective ways to improve recruiting results, increase recruiting consistency, and, at the same time, strengthen the relationship between recruiters and hiring managers," said John Sullivan, an HR thought leader and professor of management at San Francisco State University. "If you want to improve your quality of hire, reduce position vacancy days and improve process compliance, it only makes sense to try to get hiring managers to put a greater focus on recruiting. You can reduce the blame game [between recruiters and hiring managers] by spelling out responsibilities, timelines, deliverables and success measures in advance."

SLAs are essentially informal contracts, said Jessica Miller-Merrell, SHRM-SCP, an HR consultant and the founder of Workology, an Austin, Texas-based workplace resource site.

They can be time-bound or focused on quality control, with both parties agreeing to specific deadlines or commitments related to resume review, interview scheduling, candidate interview feedback and final selection.

There is one important prerequisite to using the agreements: getting buy-in from hiring managers and leadership. "SLAs won't work if the relationship and the respect are not there first," Miller-Merrell said. "SLAs have value even in just getting the conversation started with your hiring managers. Frame it as a process improvement that will serve both of your goals."

Without that crucial buy-in, "HR and TA are seen as more of an obstacle rather than as a partner," said Caitlin Wilterdink, director of HR and talent acquisition at Paxos, a financial technology company in New York City, and the owner of Wilterdink Consulting. A longtime believer in the SLA model's effectiveness, she's introduced the concept to several companies, receiving both positive and negative reactions. At Paxos, where both time-bound and quality-control SLAs are in use, reaction was initially mixed. When implementing SLAs there, Wilterdink asked hiring managers to take on extra recruiting tasks due to a lack of TA staff.

"There was a bit of questioning from some hiring managers about why they were being asked to do things that HR usually did for them [in past roles]," she said. "That's fair, and it's important for HR leadership to empathize with that sentiment and be able to help them understand why they are being asked to do this. It's about balance, and the TA leader has to have a good pulse on the organization and know when to strictly enforce an SLA and when to bend the rules."

Benefits of Using SLAs in Recruiting

Experts say organizations that use SLAs in recruiting could see several improvements in the process:

Hiring. "Simply setting minimum and maximum times for recruiting steps will speed up your overall recruiting process," Sullivan said. He added that recruiter and manager satisfaction with the process will improve, hiring costs will decrease, and confusion and duplication will be dramatically reduced.

"Being confused about who does what and when can certainly slow down the hiring process and result in the unintended duplication of work," he said. "SLAs lead to clarity and agreement on what must be done and who must do it."

Coordination. "The process of jointly working together in order to create the SLA agreement by itself helps to improve the relationship between recruiters and hiring managers," Sullivan said. "The initial negotiation process also helps both parties understand the needs, expectations and problems of the other party."

Accountability. When Wilterdink joined Paxos, "there wasn't a lot of accountability for how feedback was used to inform the rest of the recruiting team about a candidate, leading to a lot of false positives coming in for onsite interviews." She explained that some managers were marking "yes" on interview score cards to advance a candidate, but their written feedback would indicate they actually felt more like "meh." In order to control for that, Wilterdink initiated an advocacy-modeled SLA, stipulating that an interviewer must advocate for the person he or she advances before the person is moved forward in the process. "Doing this has reduced the number of false positives," she said.

What to Include in Your SLA

Service-level agreements can range from basic one-pagers with general statements to detailed documents covering many aspects of the recruiting process. Sullivan said that upfront basics of an SLA can include setting the goals and business impact of the process and defining the role of each party.

"Defining roles and making it clear who has ownership can reduce hesitation, as well as duplicate work. Roles that frequently need clarification include interview scheduling, interview participation, reference checking and documentation."

The recruiting process should be listed in clear steps in an SLA. "The required and optional recruiting steps are listed in order to make it clear to everyone what steps must be executed, which ones can be expedited and which ones are optional," he said. "It's probably also a good idea to include a visual process map or flowchart so that everyone can clearly see the steps and the flow of the process."

Be sure to specify deadlines and deliverables, as well. "Getting quick feedback from the manager about the quality of the submitted candidate slate is critical," Miller-Merrell said.

At Paxos, SLAs include a commitment to reviewing resumes within 24 hours and attaining a performance benchmark of application-to-offer in about 27 days.

Sullivan said that SLAs should specify how the success of reaching each goal and activity will be monitored and measured. Miller-Merrell said that measuring the time it takes to receive feedback may help the TA team uncover critical bottlenecks in the recruitment process and avoid both delays and the loss of good candidates who remain in limbo.

SLAs can also identify potential risk factors, conflicts, rewards and penalties for nonperformance. "If your recruiting process lacks structure, it might be a good idea to outline any unacceptable actions or behaviors," Sullivan said. "When you specify the don'ts, everyone knows upfront what they cannot do under any circumstances."

Tips for Making SLAs Work

Wilterdink said that a partnership approach will go a long way to smooth over any negative reactions from hiring managers who are presented with an SLA. She suggested some ways TA can achieve cooperation:

  • Train hiring managers on how to fill out interview score cards.
  • Provide recruiting software, which makes completing score cards and tracking manager participation easier. If you don't have technology that does this, you can use Google Docs, she said.
  • Be flexible with enforcement.
  • Pair managers with recruiters, if possible. "When I have a fully staffed team, I'll have the hiring manager work side by side with a recruiter," Wilterdink said. "The reason for that is that the manager needs to understand the market we're looking for before posting a role, so we spend our time fitting the actual business need.

SOURCE: Maurer, R. (21 February 2020) "Sharpen Your Recruiting Workflow with Service-Level Agreements" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/sharpen-recruiting-workflow-service-level-agreements.aspx


How Next-Gen Technology Can Keep HR Data Safe

In 2018, the FBI reported having 350,000 complaints of internet crimes, which is a rise of 23 percent over five years. With an increase in internet crimes, HR departments are turning to security approaches that are powered by artificial intelligence (AI). Read this blog post to learn more about how artificial intelligence is helping companies with cybersecurity.


As hackers grow ever-more inventive and data privacy laws are enacted around the globe, HR leaders are faced with the challenge of protecting and storing sensitive HR data but not curtailing employees' ability to use that data to make timely workforce decisions.

But there may not be enough cybersecurity colleagues to call upon for advice and technical assistance, which compounds those challenges. Approximately 65 percent of companies reported a cybersecurity staff shortage last year, according to the 2019 Cybersecurity Workforce Study conducted by (ISC)2, an international nonprofit association for IT professionals. As a result, more companies are turning to security strategies that don't require human intervention, such as cybersecurity powered by artificial intelligence (AI) that can proactively monitor and neutralize new kinds of cyberthreats.

New Strategies for More-Sophisticated Attacks

Research suggests that concerns over data security are occupying more of HR leaders' time and resources. The 2019-2020 Sierra-Cedar HR Systems Survey found a 17 percent increase from the prior year's survey in the number of respondents deploying cybersecurity strategies, with 70 percent of HR organizations reporting they have and regularly update such a strategy. That's good news, because the FBI reported receiving 350,000 complaints of Internet crimes in 2018, a rise of 23 percent over five years. Those crimes caused an estimated $2.7 billion in financial losses.

Security experts say the loss of sensitive data like payroll information, Social Security numbers and notes from internal investigations or employee assessments has implications far beyond the HR department.

"When HR systems are breached, it goes beyond the personal data stolen, because HR is central to so many processes across the organization," said Corey Williams, vice president of marketing and strategy at Idaptive, a cybersecurity firm in Santa Clara, Calif. "HR systems are the starting point for much of the access employees have throughout the organization. HR data doesn't sit on an island like other data, and when you have vulnerabilities at the HR level, you're exposing the entire enterprise to wider attacks."

AI-powered security tools represent a new approach to combating threats to HR data. While not a cure-all, these technologies can protect against malicious attacks driven by automated malware and have capabilities, such as pattern recognition, that can identify suspicious behavior and block potential problems or threatening online traffic in real time.

To protect against insider threats, whether malicious or from workers not following sound security practices, some AI-based cybersecurity tools can be trained to learn employees' behaviors when using corporate networks. Research shows that such threats are a growing problem. Insiders caused 48 percent of reported data breaches in organizations in 2019, according to a recent benchmark study from Cambridge, Mass.-based Forrester Research, up from 26 percent of total data breaches in 2015.

More companies are adopting "zero trust" policies that feature a "never trust, always verify" approach to network access or identity authentication and employ tools like multifactor authentication (MFA). MFA is a way to confirm user identities through at least two different factors. In the last year, according to the Sierra-Cedar survey, large organizations increased their use of MFA by 20 percent, and approximately 55 percent of small organizations reported using MFA for HR applications.

Williams said stolen or weak user credentials is still the top cause of data breaches in organizations. "We've seen growing sophistication in the way passwords and credentials get stolen," Williams said. "That includes malware, hackers writing more convincing phishing e-mails that get employees to click on harmful links and other approaches. Companies have found that depending on passwords alone for access is becoming untenable."

Balancing Security with the User Experience

HR leaders have to strike a balance between taking the right data-security measures and ensuring employees can still use HR networks and software in efficient and user-friendly ways—a balance that ideally won't make the workforce feel excessively monitored or handcuffed when using technology.

"Security is often viewed as a teeter-totter, where you are either increasing data security or you are improving the user experience with technology," Williams said. "But it doesn't have to be an either-or scenario."

For example, employees who typically access the same corporate networks or applications in the same fashion likely don't need additional security oversight, but someone accessing that same system from a country he's never been to before and with a different device would need more controls.

"We're seeing more innovation in applying security tools to separate high-risk from low-risk system access," Williams said.

HR leaders also can help enhance security by encouraging their companies to re-evaluate user access policies, experts say. "As people work for a long time in companies, they tend to accumulate access to systems, and that access doesn't necessarily get taken away as they move up or around a company," Williams said. "Employees are often 'over-provisioned' in terms of their access to sensitive data in systems, which can create increased vulnerability for companies." Automated processes tied to the life cycle management of employees can ensure system access is changed or removed as people change roles in a company, he said.

James Graham-Cumming, chief technology officer for Cloudflare, a cybersecurity company in San Francisco, said being more judicious in granting data access is a wise but sometimes overlooked security strategy. "It's not uncommon for CEOs or other senior leaders in a company to have access to all or most corporate systems because they simply feel a need for that access," Graham-Cumming said. "Yet these are more-visible or even public figures who are often targets for hacking. The reality is your C-suite or vice presidents may not need access to all of your systems."

Managing Vendor Risk

Data security and privacy threats can grow as HR functions add more technology platforms to their ecosystems and create more integrations with third-party providers. A recent study by research and advisory firm Gartner found that because human capital management systems are built to integrate with many third-party services—such as LinkedIn, for example—those integrations can expose organizations to risk through "misconfigurations" that result in unintentional data leakage. Depending on the level of integration, problems with security in vendor systems can open the door for attackers, the Gartner study found, as was the case with the retailer Target in 2014.

Security experts say HR leaders should ensure vendors have best-practice data security and privacy protocols in place, such as MFA, in addition to passing an external Service Organization Control, or SOC, 2 audit, which confirms they're in compliance with recommended practices for data security, processing integrity, ensuring privacy and more.

Jared Lucas, chief people officer with the cybersecurity firm MobileIron in San Francisco, said security-related employee training also is more important than ever as malware grows more sophisticated, phishing attacks increase and bad actors use AI-powered methods to hack corporate systems.

"Effective, regularly updated training in what to look for and what to be wary of can close a lot of holes in a company's data security strategy," Lucas said.

SOURCE: Zielinski, D. (10 February 2020) "How Next-Gen Technology Can Keep HR Data Safe" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/technology/pages/next-gen-technology-can-keep-hr-data-safe.aspx


Saver's Credit Can Spur Retirement Plan Contributions

Many employees are not aware of employer-sponsored retirement accounts, or individual retirement accounts (IRA), which could be costing those more money. Tax season is the best time for employers to educate their employees on how they can earn extra tax credits through their 401(k) plans. Read this blog post to learn more about how to educate employees on what retirement account opportunities that are available to them.


Many workers don't know that they're eligible for a tax credit by saving in an employer-sponsored retirement plan or individual retirement account (IRA)—and that could be costing them money. Tax time, however, is prime time for employers to inform eligible workers about the saver's credit.

The Retirement Savings Contributions Credit, or saver's credit, is available to low- and moderate-income workers who are putting money aside for retirement. But only 29 percent of workers with annual household income below $50,000 know about the saver's credit, according to the nonprofit Transamerica Center for Retirement Studies in Los Angeles, which surveyed nearly 6,000 employees last fall.

"Tax season is an ideal time to tell eligible workers how they can earn extra tax credits by saving through their employer's 401(k) or a similar retirement plan," said Catherine Collinson, president of the Transamerica Center. "The saver's credit might just be the motivator for those not yet saving for retirement to get started."

Scott Spann, a senior financial planner with Financial Finesse, a provider of workplace financial wellness programs in Charleston, S.C., said, "Saving for retirement is a challenge for many households in America. Special tax incentives help make the process of saving easier."

What Is the Saver's Credit?

Like other tax credits, the saver's credit can increase a taxpayer's refund or reduce the tax owed. Here's how it works:

The amount of the credit is a maximum of 50 percent of an employee's retirement plan contributions up to $2,000 (or $4,000 for married couples filing jointly), depending on the filer's adjusted gross income as reported on Form 1040. Consequently, the maximum saver's credit is $1,000 (or $2,000 for married couples filing jointly).

The saver's credit "is different than a tax deduction due to the fact that a tax credit is a dollar-for-dollar reduction of your gross tax liability, which is the total amount of taxes you're responsible for paying before any credits are applied," Spann explained.

The saver's credit also differs from the separate tax benefit of contributing pretax dollars to a qualified retirement plan, such as an employer-sponsored 401(k) or an IRA. "Many eligible retirement savers may be confusing these two incentives because the notion of a double tax benefit"—pretax contributions and an additional tax credit—"seems too good to be true," Collinson said.

Who Can Claim the Saver's Credit?

The credit is available to workers age 18 or older who have contributed to a company-sponsored retirement plan or an IRA in the past year and meet the income requirements shown in the table below. The filer cannot be a full-time student nor claimed as a dependent on another person's tax return.

Income Caps for Tax Years 2019 and 2020

For eligible workers, the amount of the available tax credit diminishes as adjusted gross income (AGI) rises. To help preserve the credit's value, income thresholds are adjusted annually to keep pace with inflation. Below are the AGI caps for tax year 2019 (for tax returns filed this year) and 2020 (for returns filed next year).

2019 Saver's Credit
Tax Credit Rate Single Filers and Married, Filing Separately* Married, Filing Jointly Heads of Household
50% of contribution AGI not more than - $19,250 AGI not more than $38,500 AGI not more than $28,875
20% of contribution AGI of $19,251 - $20,750 AGI of $38,501 - $41,500 AGI of $28,876 - $31,125
10% of contribution AGI of $20,751- $32,000 AGI of $41,501 - $64,000 AGI of $31,126 - $48,000
No credit AGI more than $32,000 AGI more than $64,000 AGI more than $48,000

 

2020 Saver's Credit
Tax Credit Rate Single Filers and Married, Filing Separately* Married, Filing Jointly Heads of Household
50% of contribution AGI not more than $19,500 AGI not more than $39,000 AGI not more than $29,250
20% of contribution AGI of $19,501 - $21,250 AGI of $39,001 - $42,500 AGI of $29,251 - $31,875
10% of contribution AGI of $21,251 - $32,500 AGI of $42,501 - $65,000 AGI of $31,876 - $48,750
No credit AGI more than $32,500 AGI more than $65,000 AGI more than $48,750

Deadlines for Retirement Contributions

"You must make eligible contributions to your employer-sponsored retirement plan or IRA for the tax year for which you are claiming the income tax credit," Spann said.

While 401(k) contributions for a tax year can be made only up to Dec. 31, those who are eligible but did not save last year can still make a tax year 2019 IRA contribution until April 15, 2020.

Filing for the Saver's Credit

Employers can advise eligible workers to take the following steps to claim the saver's credit, according to the Transamerica Center:

  • If using tax-preparation software, including those programs offered through the IRS Free File program, use Form 1040 or Form 1040NR for nonresident aliens. Answer questions about the saver's credit, which may be referred to as the Retirement Savings Contributions Credit or the Credit for Qualified Retirement Savings Contributions.
  • If preparing tax returns manually, complete Form 8880, Credit for Qualified Retirement Savings Contributions, to determine your exact credit rate and amount. Then transfer the amount to the designated line on Form 1040 (Schedule 3) or Form 1040NR.
  • If using a professional tax preparer, ask about the saver's credit.

Financial planners advise having tax refunds directly deposited into an IRA to further boost your retirement savings.

The Transamerica Center has additional information, in English and Spanish, on its Saver's Credit webpage, along with a downloadable fact sheet.


IRS Free File Program Is Available

Another potentially overlooked opportunity for workers is the IRS Free File program, which offers federal income tax preparation software at no charge to tax filers with an AGI of $69,000 or less.

Free File opened on Jan. 10, 2020, for the preparation of 2019 tax returns. Eligible taxpayers can do their taxes now, and the Free File provider will submit the return once the IRS officially opens the tax filing season on Jan. 27.

For 2020, the Free File partners are: 1040Now, Inc., ezTaxReturn.com (English and Spanish), FileYourTaxes.com, Free tax Returns.com, H&R Block, Intuit, On-Line Taxes, Inc., Tax ACT, TaxHawk, Inc. and TaxSlayer (English and Spanish).

Here's how Free File works:

  1. Taxpayers go to IRS.gov/FreeFile to see all Free File options.
  2. They browse each of the offers or use a "look up" tool to help find the right product. Each Free File partner sets its own eligibility standards generally based on income, age and state residency. But if the taxpayer's adjusted gross income was $69,000 or less, they will find at least one free product to use.
  3. They select a provider and follow the links to their web page to begin a tax return.
  4. They complete and e-File a tax return if they have all the income and deduction records they need. The fastest way to get a refund is by filing electronically and selecting direct deposit. For taxes owed, they can use direct pay or electronic options.

Many Free File online products also offer free state tax preparation, although some charge a state fee. Taxpayers should read each provider's information carefully.

"The IRS has worked to improve the program for this year, and we encourage taxpayers to visit IRS.gov, and consider using the Free File option to get a head start on tax season," said IRS Commissioner Chuck Rettig.

Nearly 57 million returns have been filed through the Free File program since it began in 2003, and 70 percent of U.S. taxpayers (about 100 million people) are eligible for Free File, according to the IRS.


SOURCE: Miller, S. (10 January 2020) "Saver's Credit Can Spur Retirement Plan Contributions" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/remind-low-wage-earners-about-savers-credit.aspx