DOL Overtime Rule Will Impact Hospitality Industry
Originally Posted by SHRM.org
By: Allen Smith
The hospitality industry will be hit hard by the Department of Labor’s updates to the overtime rule implementing the Fair Labor Standards Act (FLSA), experts say. With high overhead costs and a low-profit margin, hotels and restaurants typically don’t have enough money in reserve to give employees big raises to preserve their exempt status or to pay many hours of overtime if employees are eligible.
As a result, hospitality employers will need to explore alternative compensation models, schedules and staffing options to try to mitigate costs, according to Ryan Glasgow, an attorney with Hunton & Williams in Richmond, Va.
Some choices will be simple, he noted. For employees with relatively high salaries who work long hours, the logical choice is to increase their salaries, as the minimum increase in salary likely will be less than the employer would have to pay in substantial overtime hours. As for employees with low salaries who don’t work much overtime, it makes sense to convert them to nonexempt and pay overtime for the few overtime hours they might work.
“For all other employees, the decision will be much more difficult and will require a lot of strategic planning and analysis,” Glasgow said. “For example, in certain circumstances, it may be feasible for the employer to combine two exempt positions into one position so that the cost of increasing the salary for the remaining one employee is offset by the cost-savings from the elimination of the other employee’s position.”
He added that it may be better for the employer to convert a position to nonexempt and hire more employees to perform the work so that none of the employees work overtime. “Similarly, employers should evaluate each impacted position to determine whether there are unnecessary and/or inefficient tasks that can be eliminated or given to another employee so that the position requires fewer hours of work, thus lowering the impact of paying overtime,” he noted.
Domino Effect
Be aware of the potential domino effect when an employee’s salary is increased above the new salary level. The employee and the employee’s supervisor may suddenly be making similar salaries. Supervisors may ask for an increase as well, leading to salary increases up the organizational chart, Glasgow said.
Bonus and commission plans will have to be re-evaluated since there may be overtime pay consequences if employees who have been converted to nonexempt are paid bonuses or commissions, noted Robert Boonin, an attorney with Dykema in Detroit and Ann Arbor, Mich., and immediate past chair of the Wage and Hour Defense Institute, a network of wage and hour lawyers.
Rule’s Potential Winners
Salaried workers earning less than $913 a week or $47,476 annually and who regularly work more than 40 hours per week stand to gain from the overtime rule, said Wendy Stryker, an attorney with Frankfurt Kurnit Klein & Selz in New York City. These workers will have their salaries raised above the new threshold, be paid overtime or have their hours reduced to a 40-hour workweek, she said. These employees include entry and midlevel professionals, such as chefs, sommeliers, and hotel or restaurant managers and assistant managers, she added.
The hospitality industry has a lot of employees earning in this range, according to Stryker. She noted that the average U.S. wage for chefs, head cooks and pastry chefs is $45,920. For bakers, the average U.S. wage is lower, at $26,270, Stryker noted.
While workers may benefit from the overtime rule, Michael Layman, vice president, regulatory affairs for the International Franchise Association in Washington, D.C., said the overtime rule will hit the hospitality industry particularly hard. Its employers “disproportionately face unpredictable season- or weather-dependent schedules and variable labor demands, which makes tracking hours and managing overtime costs a significant challenge,” he said.
“Given the need for onsite guest services, employers in the hospitality industry may have less flexibility than other employers to automate or offshore operations,” said Nancy Vary, director of the compliance consulting center at Xerox HR Services in New York City.
However, Carolyn Richmond, an attorney with Fox Rothschild in New York City, said, “I think we will see the live reservationist all but disappear as reliance on [online booking apps] OpenTable, Resy and the others grows.” She added, “Owners are looking at more and more automation—programs that monitor and control labor costs and even how to replace certain employees.”
Other Significantly Affected Industries
Hospitality isn’t the only industry to feel the brunt of the new overtime rule.
“The construction and retail industries will be impacted significantly because, like the hospitality industry, they have unusually high concentrations of low-salaried managers,” Glasgow said. He also expected large research and educational hospitals to be uniquely impacted because they have many low-salaried professionals.
“Any industry that has traditionally offered low pay to its skilled workers is likely to be hard-hit by the new overtime rules,” Stryker said. “In New York City, this is likely to be the creative industries such as advertising and film/television production, where hours are traditionally long, and the work product cannot necessarily be created on a 40-hour-per-week schedule.”
The point of the rule isn’t to benefit employers, though. “The new overtime rules were created to benefit employees,” Stryker said. “As the president noted when he directed the Department of Labor to update the relevant regulations, the FLSA’s overtime protections “are a linchpin of the middle class, and the failure to keep the salary level requirement for the white-collar exemption up to date has left millions of low-paid salaried workers without this basic protection.”
That said, Richmond noted that “While the Department of Labor hopes and expects these changes will lead to increased wages through overtime, I don’t expect that to be the case in [the hospitality] industry. Payroll has already risen dramatically with minimum wage increases and resulting wage compression, and owners will spend more time looking at controlling overtime.”
Allen Smith, J.D., is the manager of workplace law content for SHRM. Follow him @SHRMlegaleditor.
- See more at: https://shrm.org/legalissues/federalresources/pages/hospitality-industry-weighs-options-in-wake-of-overtime-rule.aspx#sthash.D3BGAwvR.dpuf
In Case of: Effective Responses to Workplace Emergencies
Within sixty seconds of its launch on November 14, 1969, the Apollo 12 spacecraft was struck twice by lightning, which caused critical navigation systems and fuel cells to shut down.
A N.A.S.A. engineer who remembered his training for a similar scenario immediately recommended a fix, which saved the entire mission and quite possibly the lives of the Apollo 12 astronauts.
Four months later, those same engineers faced and successfully responded to challenges that they never anticipated with the ill-fated Apollo 13 mission.
Emergencies can and do happen in every workplace, but it does not take a rocket scientist to plan for them or to fashion an intelligent response when they do happen.
Emergencies and Violence: The Stats
Workplace emergencies are not limited to high-tech or high-risk operations light rocket launches. Statistics compiled by the Occupational Safety and Health Administration (OSHA) and the Bureau of Labor Statistics (BLS) reveal more than 23,000 employee were injured in 2013 solely from workplace assaults.
The latest data available from the BLS show that the annual rate of workplace violence has held steady for more than twenty years, and violence continues to be the second leading cause of employee fatalities after transportation accidents.
This does not even account for injuries or fatalities that result from other workplace emergencies, including fires, natural disasters, chemical spills and contamination, or civil disturbances or terrorism. In 2010, more than three million workers suffered injuries following workplace emergencies. How a business responds to emergencies is typically a function of the nature of the emergency itself.
What Is Categorized as an Emergency?
OSHA defines a workplace emergency as an “unforeseen situation that threatens your employees, customers, or the public; disrupts or shuts down your operations; or causes physical or environmental damage”.
Most individuals might limit their concept of a workplace emergency to newsworthy, large-scale evacuations caused by natural or man-made causes, but lesser-scale emergencies are far more common. One employee might suffer an injury or a sudden medical event.
A small fire might be easily contained by sprinkler systems, but that fire will be no less disruptive of business operations than a larger conflagration. A single disgruntled individual can start an emergency situation that shuts a business down for days. If that individual is armed, the emergency becomes a national tragedy.
OSHA has issued Emergency Action Plan standards for workplace emergencies that are codified in the Federal Regulations. Those standards define, for example, when and where businesses need to have fire extinguishers, building evacuation plans, and medical emergency response protocols.
The New Focus: Armed Shooter Scenarios
Because of high-profile publicity and responses, businesses are also becoming more attuned to armed shooter scenarios. Although not without objection or controversy, some workplaces are training employees in a run/hide/fight protocol that was popularized by a video produced by the City of Houston.
The gist of that protocol is to train employees first to run from an armed assailant. If running is not possible, the employees should hide, and if hiding is impossible, only then should employees attempt to fight the assailant.
Technology can be a boon during a workplace emergency if it is used as a tool and not a solution. The Federal Emergency Management Agency (FEMA) places a high priority in communication technology in emergencies. Excessive reliance on technology can be a downfall, however, if an emergency removes the option to use technology. Businesses should consider deeper contingency plans in the event that the emergency takes down their communication networks.
A Wireless Emergency Alert (WEA) is a notification that is sent to mobile devices in cases of tornadoes, hurricanes, tsunamis and other serious emergencies. These emergency alerts are complimentary public safety service provided by participating wireless service providers. But, if employees have trouble with cellphone reception inside their workplace, they may or may not receive these alerts.
If workplaces were able to plan for all possible workplace emergencies, then to the extent that they were anticipated those events would not be emergencies. The responses by the NASA engineers in the Apollo program are more instructive in developing an effective workplace emergency response plan.
The Apollo 12 lightning strike shows the efficacy of contingency planning for potential emergencies and trusting an employee to implement his or her training when the emergency happens.
The engineer who recommended the solution after the lightning strike was in his early twenties, but his co-workers and the ship’s crew had developed enough of a cohesive relationship and a sense of trust among themselves that they did not hesitate to implement his solution.
During the Apollo 13 mission, the entire workforce again worked cohesively toward a common purpose to develop an effective response that, almost fifty years later, remains one of NASA’s finest efforts.
A workplace will not always have the luxury of implementing thorough contingency training to prepare for an emergency. A business’s ability to survive a workplace emergency is on a par with the conduct of its regular business operations. As with other aspects of those operations, the most effective emergency response requires mutual employee trust and cohesiveness.
Employee Relations: Electing to Talk Politics at Work has Serious Implications
Original post workforce.com
As the political races unfold in 2016, just about everyone seems willing to share their opinions on candidates, parties and issues — whether they’re asked to or not.
For many of the nation’s workers, this can lead to uncomfortable situations or outright arguments while on the job. Responding with a personal opinion might seem like second nature, but it might also be a risky move careerwise.
Employers generally have the right to limit employees’ political commentary during work time, and many of them choose to do so given the often-heated nature of the subject. Workers should always use common sense when deciding whether to discuss political issues at work, but there are some situations in which employees should definitely steer clear of such talk, such as:
When the business owner or boss is vocal about their own beliefs. It’s a concept that might be shocking to many Americans, but, in many states, private employers may fire workers for their political beliefs.
Under the at-will employment doctrine, in the absence of a contract, employers can terminate employment at any time and for any reason not prohibited by law.
Every state except Montana subscribes to the at-will doctrine.
Under this principle, organizations don’t need “just cause” to fire someone. If local or state law doesn’t prohibit it, private employers generally may terminate an individual because of his or her political beliefs.
Many misinterpret the First Amendment and believe that it applies in all cases related to freedom of speech. The First Amendment only applies to government censorship of speech. As such, it restricts public employers from engaging in this practice.
Most private employers won’t typically terminate employees for their political beliefs. The bad publicity from such actions will typically outweigh any perceived benefits.
Even in states and locations without laws protecting employees’ political beliefs, employers will have to tread a fine line. Some states, like Wisconsin, prohibit employers from taking action on employees’ legal activities, such as running for office or voting. If the discussions are union-related, they might also be protected.
Yet, employees should still be cautious. A business owner or manager who is strongly invested in their political beliefs could discipline or terminate others with opposing viewpoints.
When it wastes time. Many employers recognize that restricting all nonwork-related conversations can have a detrimental effect on morale. But if employees are spending large amounts of time debating the pros and cons of a particular political candidate or issue when they should be working, an employer is going to take notice and possibly take action. Employers generally have control over what employees may and may not do on company property and on work time.
When discriminatory language is involved. Employers have a duty to prevent and address discrimination in the workplace.
If employees are holding inappropriate discussions about a candidate’s sex, age, race, religion, ethnicity or other protected traits, the employer will likely want to take action. A business may be held liable for fostering a hostile work environment if it does not halt such conduct.
Because of the legal ramifications, most employers take discrimination in the workplace very seriously and will respond accordingly. This could include discipline and even termination.
When representing the company. If an employee is passing themself off as a company representative, or even sporting company logos (on a shirt, hat, etc.) while giving a personal interview on the subject of politics, an employer likely has the right to act. Such actions could give customers and others the impression that the employee’s beliefs are those of the company.
Think before speaking. When faced with a workplace situation involving heavy political posturing, it can be hard to consider the effects of statements prior to making them in front of co-workers.
But taking a moment to think about the consequences of certain political discussions before engaging in them might be the best way for employees to safeguard their job.
Employees should consider the career risks of bringing politics to work. The best course of action might be to leave political discussion at the door.
7 Tips to Get Your Team to Actually Listen to You
Original post entrepreneur.com
Right from the outset, entrepreneurs must pay attention to every communication and opportunity for sharing their passion and vision. They must communicate effectively, so they can inspire others to come aboard. They must speak honestly and in ways that reveal their personal character and genuine connection. Yet, this sort of communication style can be difficult and time consuming – especially when demands are huge and time is scarce.
There is far more to being an effective and authentic communicator than most entrepreneurs believe -- at least when they are starting out. Even if you think you’re good at speaking to your team and motivating them, there’s always more to learn.
Leadership communication is a discipline and a practice: The more time, effort and heart you put in, the more effective you become. There really are no shortcuts.
That said, here are seven ideas that can help you focus your attention and improve your leadership communication.
1. Be authentic.
When you speak with your employees you must come across to them as real. This means sharing your beliefs and your struggles. Talking about moments of doubt but also explaining how you overcame them with more conviction and confidence than ever. Or perhaps share a story or two about a failure and disappointment in life.
The most convincing talks are when stories are shared about personal weaknesses and what one was doing to overcome them or disappointments and failures and how they were turned around.
2. Know yourself.
Dig deep. Know your values and what motivates you. If you don’t know yourself you cannot share or connect with others. People want to know what makes you tick as a human being not just as a leader. Share this and make yourself real.
3. Rely on a good coach or a trusted advisor.
Developing good communication skills takes time -- and in the rush of business, that’s scarce. Having someone who can push you to examine and reveal your interests and passions is enormously helpful and the value is immeasurable.
4. Read up on leadership communication.
If you can’t hire a coach, read all that you can. This is an inexhaustible resource, and you should never quit learning anyway. Books, articles, the internet; the possibilities are endless.
5. Make values visible.
Effective, empathetic communication and a commitment to culture can provide a solid foundation for your ideas and contribute to making it a reality. Many of today’s most successful companies have gone through dramatic crises. Their improvements often hinged upon genuine communication from the leaders.
For instance, think of Starbucks and Howard Schultz’s clear and genuine communications about the importance of managers and baristas being personally accountable for future success. Your employees want to know what you and the company stands for. What is the litmus test for everything you do? These are your values. Talk about them but you must always be sure to “walk the talk” and live by them.
6. Engage with stories.
You can't rely on facts and figures alone. It’s stories that people remember. The personal experiences and stories you share with others create emotional engagement, decrease resistance and give meaning. It is meaning that gets employees' hearts and fuels discretionary effort, thinking and desire to actively support the business.
Once someone was implementing a massive pricing cut. He could have presented reams of data about this change and why it needed to be made. Instead he invited in four clients of the firm who had written letters about why after more than 10 years they had decided to leave due to our pricing being noncompetitive. Everyone was engaged and quite horrified to hear this feedback. Getting the team’s support for the change was much easier after that.
7. Be fully present.
There is no autopilot for leadership communication. You must be fully present to move people to listen and pay attention, rather than simply be in attendance. Any time you are communicating, you need to be prepared -- and to speak from your heart. Leadership communication is, after all, about how you make others feel. What do you want people to feel, believe and do as a result of your communication? This absolutely can't happen if you read a speech. No matter how beautifully it is written, it doesn’t come across as authentic or from your heart if you are reading it. Embrace what you want to say and use notes if you must, but never read a speech if you want to be believable and move people to action. (And yes this requires a ton of preparation).
Your speeches are visible and important components of your role as a leader. Successful entrepreneurs are conscious of that role in every communication, interaction and venue within the organization and beyond. They also know that while today’s world provides a wide range of ways to communicate to your organization -- mass email, text, Twitter, instant message and more --connecting is not that simple. Electronic communication is a tool for communicating information -- not for inspiring passion.
Here are the top 10 most costly U.S. workplace injuries
Original post lifehealthpro.com
Workplace injuries and accidents are the near the top of every employer’s list of concerns.Here is the countdown of the top 10 causes and direct costs of the most disabling U.S. workplace injuries. The definitions and examples can be found at the BLS website.
- Repetitive motions involving micro-tasks
Some of these tasks may include a word processor who looks from the computer monitor to a document and back several times a day or the cashier at the local grocery store who is scanning and bagging groceries for several hours at a time.
- Struck against object or equipment
This category of workplace injury applies to workers who are hurt by forcible contact or impact, for example, an office worker who bumps into a filing cabinet or an assembly line worker who stubs a toe on stacked parts.
- Caught in or compressed by equipment or objects
These workplace injuries result from workers being caught in equipment or machinery that’s still running as well as in rolling, shifting or sliding objects.
Picture the scene in a movie in which wine barrels topple over, catching the bad guy beneath them, only in this case, it’s the employee whose job it may be to stack the barrels. Perhaps it’s the experienced worker who removes a machine guard to dislodge material that’s stuck and gets a finger caught when the machine starts moving again.
- Slip or trip without fall
Occasionally, workers do slip or trip without hitting the ground. Think of the employee entering the workplace who slips on icy stairs but is able to grab the handrail to prevent hitting the ground. But the action of grabbing the handrail may cause the employee to injure his shoulder or wrench her knee.
- Roadway incidents involving motorized land vehicle
The worker may be the driver, a passenger or a pedestrian, but the cause of the injury is an automobile, truck or motorcycle.
- Other exertions or bodily reactions
These motions include bending, crawling, reaching, twisting, climbing or stepping, according to the BLS. Consider, for example, a roofing contractor’s employees who are continually climbing up and down ladders.
- Struck by object or equipment
This category covers a range of possible injuries, from being struck by an object dropped by a fellow worker to being caught in a swinging door or gate. Picture the construction worker on a scaffold dropping a hammer on the worker below.
- Falls to lower level
The roofer could fall to the ground from the roof or ladder, or an office worker standing on a stepstool, reaching for a heavy file box, could fall to the floor.
- Falls on same level
The second most costly workplace injury, surprisingly, is a fall on the same level. Picture the employee who is walking through the office and falls over an uneven floor surface or someone leaning too far back in an office chair and toppling over.
- Overexertion involving an outside source
The BLS explains that overexertion occurs when the physical effort of a worker who lifts, pulls, pushes, holds, carries, wields or throws an object results in an injury.
The object being handled is often heavier than the weight that a worker should be handling or the object is handled improperly. For example, lifting from a shelf that’s too high, or in a space that’s cramped. Within the broad category of sprains, strains, and tears caused by overexertion, most incidents resulted specifically from overexertion in lifting.
Risk managers should work with their carriers and workplace safety specialists to minimize injuries, lost work days and workers’ compensation costs.With a little effort, employers can understand more about the causes of accidents and injuries in their organizations, identify the appropriate actions to reduce the number of injuries and minimize employee disabilities from workplace accidents.
DOL Narrows Independent Contractor Classification
Originally posted by Allen Smith on July 16, 2015 on shrm.org.
More workers may be entitled to overtime due to July 15, 2015, Department of Labor (DOL) guidance that defines “independent contractor” narrowly enough for many previously classified as independent contractors to now be properly classified as employees.
This narrowing of the definition of independent contractor is due partly to the DOL deemphasizing the degree to which a business controls an individual’s work, and focusing instead on the economic realities test, which looks at whether the worker is economically dependent on the employer or in business for him or herself.
“This is part and parcel of the Obama administration’s push to give America a raise,” said Allan Bloom, an attorney with Proskauer in New York City, who added, “There certainly have been companies that have misclassified workers.”
He remarked that the latest guidance is important because “the DOL significantly downplays the ‘control test,’ which has long been the guide many businesses consider when determining whether or not a worker is truly an ‘employee’.” Bloom recommended that, “Businesses worried about staying under the DOL radar on this issue should make sure that they are doing business with established independent service providers if they intend to pay on a 1099 basis.”
Matthew Disbrow, an attorney with Honigman in Detroit, said, “The subjective nature of the DOL’s interpretation, and its narrow focus on ‘economic dependence,’ creates substantial challenges for companies who wish to maintain their independent-contractor relationships. Furthermore, although the elements of the ‘economic realities’ test may appear understandable at first blush, a careful reading of the DOL’s guidance reveals that there are no bright-line rules upon which to rely. The same person could be considered an independent contractor or an employee simply based on the business at issue.”
He added that the administrator’s interpretation [AI] “arguably restricts the use of independent contractors to very few specific situations.” Disbrow explained, “Because no factor is determinative, and the AI rejects any ‘mechanical’ application of the test, inside counsel or other executives will not always know what factor the DOL or a reviewing court might find most important. Such ‘fuzzy’ multifactored tests usually create more problems than they solve."
Six Factors
In conducting an economic realities test, an employer should look to six factors, the DOL noted:
- The extent to which the work performed is an integral part of the employer’s business.
- The worker’s opportunity for profit or loss depending on his or managerial skill.
- The extent of the relative investments of the employer and the worker.
- Whether the work performed requires special skills and initiative.
- The permanency of the relationship.
- The degree of control exercised or retained by the employer.
“In undertaking this analysis, each factor is examined and analyzed in relation to one another, and no single factor is determinative,” the DOL noted. “The ‘control’ factor, for example, should not be given undue weight.”
“The factors should not be applied as a checklist, but rather the outcome must be determined by a qualitative rather than a quantitative analysis,” the DOL stated.
“The subjective nature of such a test is a slippery slope and provides no practical, objective criteria on which businesses can rely,” Disbrow said.
Under the department’s analysis of the six factors, positions frequently considered as independent contractors—such as carpenters, construction workers, cable installers and electricians—aren’t necessarily independent contractors if they don’t satisfy the factors.
Suppose, the department hypothesized, a highly skilled carpenter provides carpentry services for a construction firm. But the carpenter does not exercise his skills in an independent manner. He does not determine the sequence of work, order additional materials or think about bidding for the next job, but instead is told what work to perform where. “In this scenario, the carpenter, although highly skilled technically, is not demonstrating the skill and initiative of an independent contractor (such as managerial and business skills),” the DOL emphasized. “He is simply providing his skilled labor.”
By contrast, “a highly skilled carpenter who provides a specialized service for a variety of area construction companies (for example, custom, handcrafted cabinets that are made to order) may be demonstrating the skill and initiative of an independent contractor if the carpenter markets his services, determines when to order materials and the quantity of materials to order, and determines which orders to fill,” the DOL stated.
Monitor Classifications
“While the human resources function clearly ‘owns’ employee issues in corporate America, many companies do not monitor their independent contractor relationships,” said Michael Droke, an attorney with Dorsey and Whitney in Palo Alto, Calif., and Seattle.
“Companies should make clear which department within the organization is responsible to understand the law, know which contractors have been engaged and monitor compliance. Often, the human resources or finance department is put in charge,” he noted.
“Employers should maintain basic records on the independent contractor determination process, and the facts used to make that determination. For example, they should keep records of business licenses, business cards, contractor tax records, project work plans showing limited engagements and correspondence from the contractor,” according to Droke.
For Disbrow, some main takeaways from the guidance are:
- The DOL believes most work should be performed by employees. So, independent contractors should be used sparingly.
- Entering into independent contractor agreements or hiring a business entity (rather than a person) does not necessarily protect you from liability under the Fair Labor Standards Act.
- A careful review of the type and scope of work being performed should be completed before engaging the services of any nonemployee.
- When entering into agreements with other service providers, ensure that you obtain appropriate indemnification provisions to protect the company from the wage and hour claims of the service provider’s workers.
“Companies should avoid giving contractors rights or access that cut against contractor determination. For example, contractors should not have internal e-mail accounts, should not be given server access and should not be invited to employee functions,” Droke observed. “The DOL guidance reminds employers to periodically audit existing contractors to make sure they have not inadvertently slipped from contractors to employees. If an otherwise-valid contractor arrangement becomes economically dependent on the work, then the relationship may convert to an employee entitled to overtime.”
This guidance is Administrator’s Interpretation No. 2015-1.
Study Shows Impact of Generational Differences in the Workforce
Originally posted by Jennifer Busick on April 3, 2015 on safetydailyadvisor.com.
“This is the most comprehensive quantitative study performed on generations in the workforce,” says Warren Wright, vice president of LifeCourse Associates. Wright adds, “We now know what engages different generations.”
The study included Millennials (age 30 and under), Generation X (ages 31 to 51), and Boomers (ages 52 to 69) who are employed full-time. The survey was conducted through a nationally representative online panel of 1,250 respondents, and was tested again on 4,986 insurance industry employees 2 months later.
Key Findings
- Generations matter. Nearly three-quarters of respondents agreed, not only that there are important generational differences but also that they “sometimes” or “often” pose challenges in the workplace.
- Millennials crave mentorship. Nearly a third of Millennials “strongly” agreed that they want to work for an organization that provides an excellent mentoring program, far more than any other generation. Millennials also experience the largest gap between what they have and what they want when it comes to mentoring.
- Millennials want a social workplace. An overwhelming 68 percent of Millennials agreed that they like to socialize informally and make new friends while at work, about 10 points higher than any other generation.
- Millennials want to contribute. Nearly two-thirds of Millennials agreed that they like their employer “to contribute to social and ethical causes” that they think are important, vs. barely half of Boomers and older Gen Xers.
- Millennials and Xers want cutting-edge technology. High shares of both Millennials and Gen Xers “strongly agree” that they “like to work with state-of-the-art technology,” while Boomers rate this as significantly less important. Millennials rate their employers’ performance in this area the lowest.
- Boomers are mission-focused. Fully 56 percent of older Boomers and 50 percent of younger Boomers “strongly agree” that they want to be “100 percent dedicated to my organization’s mission.” That number declines sharply for older Gen Xers and continues to decline through Millennials, in a remarkable 19-point generational spread.
The report is part of LifeCourse’s new Generational Workforce Audit, a customized research tool to diagnose how generational engagement affects an organization’s bottom line. For more information, visit www.lifecourse.com.
Why It Matters
- Every generation in your workforce needs to be trained to work safely.
- Since the generations grew up in different eras, you must use a variety of different training methods to reach every generation effectively.
- Make full use of a blended learning approach to ensure that employees of all ages can learn to work safely.
Know the Minimum Wage in Your State? You Might Want to Check Again
Originally posted on January 5, 2015 by Rick Montgomery, JD on ThinkHR.com.
2014 was an odd year in regards to minimum wage. Although Congress failed to pass any legislation regarding the federal minimum wage, nearly half the states had minimum wage increases that went into effect on January 1, 2015. In addition, at least 20 states will have minimum wage increases in 2016 (due to scheduled minimum increases or annual minimum wage calculations). Employers, especially those with multi-state operations, should review the minimum wage of the state(s) in which they operate and make preparations for the changes.
Breakdown of Minimum Wage Increases
There are currently 10 states that adjust their minimum wage annually: Arizona, Colorado, Florida, Missouri, Montana, Nevada, New Jersey, Ohio, Oregon, and Washington. Of all of these states, with the exception of Nevada, the new minimum wage rate goes into effect on January 1stof each year. In Nevada, the new minimum wage rate goes into effect on July 1st of each year.
In November 2014, there were four states that passed ballot initiatives increasing the state minimum wage: Alaska, Arkansas, Nebraska, and South Dakota. With the exception of Alaska, the new minimum wage rates in these states went into effect on January 1, 2015. While South Dakota limits their minimum wage increase to 2015, Alaska, Arkansas, and Nebraska have increases in subsequent years.
The minimum wage increases in the remaining jurisdictions were the result of legislation passed in either 2014 or previous legislative sessions. These jurisdictions include: Connecticut, Delaware, the District of Columbia, Hawaii, Maryland, Massachusetts, Michigan, Minnesota, New York, Rhode Island, Vermont, and West Virginia. Many of these states also have scheduled minimum wage increases in years following 2015.
The New Rates
The following is a summary of the minimum wage increases.
Alaska. Alaska’s minimum wage is scheduled to increase as follows:
- On February 24, 2015, the minimum wage will increase to $8.75 per hour.
- On January 1, 2016, the minimum wage will increase to $9.75 per hour.
Arizona. Effective January 1, 2015, Arizona’s minimum wage is $8.05 per hour.
Arkansas. Effective January 1, 2015, Arkansas’s minimum wage is $7.50 per hour. Arkansas’s minimum wage is scheduled to increase as follows:
- On January 1, 2016, the minimum wage will increase to $8 per hour.
- On January 1, 2017, the minimum wage will increase to $8.50 per hour.
California. Effective January 1, 2016, California’s minimum wage will increase to $10 per hour.
Colorado. Effective January 1, 2015, Colorado’s minimum wage is $8.23 per hour.
Connecticut. Effective January 1, 2015, Connecticut’s minimum wage is $9.15 per hour. Connecticut’s minimum wage is scheduled to increase as follows:
- On January 1, 2016, the state minimum rate will increase to $9.60 per hour.
- On January 1, 2017, the state minimum rate will increase to $10.10 per hour.
Delaware. Effective June 1, 2015, Delaware’s minimum wage will increase from $7.75 to $8.25 per hour.
District of Columbia. The District of Columbia’s minimum wage is scheduled to increase as follows:
- On July 1, 2015, the minimum wage will increase to $10.50 per hour.
- On July 1, 2016, the minimum wage will increase to $11.50 per hour.
Florida. Effective January 1, 2015, Florida’s minimum wage is $8.05 per hour.
Hawaii. Effective January 1, 2015, Hawaii’s minimum wage is $7.75 per hour. Hawaii’s minimum wage is scheduled to increase as follows:
- On January 1, 2016, the minimum wage will increase to $8.50 per hour.
- On January 1, 2017, the minimum wage will increase to $9.25 per hour.
- On January 1, 2018, the minimum wage will increase to $10.10 per hour.
Maryland. Effective January 1, 2015, Maryland’s minimum wage is $8 per hour. Maryland’s minimum wage is scheduled to increase as follows:
- On July 1, 2015, the minimum wage will increase to $8.25 per hour.
- On July 1, 2016, the minimum wage will increase to $8.75 per hour.
- On July 1, 2017, the minimum wage will increase to $9.25 per hour.
- On July 1, 2018, the minimum wage will increase to $10.10 per hour.
Massachusetts. Effective January 1, 2015, Massachusetts’ minimum wage is $9 per hour. Massachusetts’ minimum wage is scheduled to increase as follows:
- On January 1, 2016, the minimum wage will increase to $10 per hour.
- On January 1, 2017, the minimum wage will increase to $11 per hour.
Michigan. Michigan’s minimum wage is scheduled to increase as follows:
- On January 1, 2016, the minimum wage will increase to $8.50 per hour.
- On January 1, 2017, the minimum wage will increase to $8.90 per hour.
- On January 1, 2018, the minimum wage will increase to $9.25 per hour.
Minnesota. Minnesota’s minimum wage is scheduled to increase as follows:
For large employers (employers that have at least $500,000 in annual gross sales or business done) the minimum wage will increase as follows:
- On August 1, 2015, the minimum wage will increase to $9 per hour.
- On August 1, 2016, the minimum wage will increase to $9.50 per hour.
For small employers (employers that have annual gross sales or business done of less than $500,000) the minimum wage will increase as follows:
- On August 1, 2015, the minimum wage will increase to $7.25 per hour.
- On August 1, 2016, the minimum wage will increase to $7.75 per hour.
Missouri. Effective January 1, 2015, Missouri’s minimum wage is $7.65 per hour.
Montana. Effective January 1, 2015, Montana’s minimum wage is $8.05 per hour.
Nebraska. Effective January 1, 2015, Nebraska’s minimum wage is $8 per hour. Nebraska’s minimum wage is scheduled to increase to $9 per hour on January 1, 2016.
Nevada. Effective July 1, 2015, Nevada’s minimum wage will increase; however, the state does not announce the new effective minimum wage rate until April 1st of each year.
New Jersey. Effective January 1, 2015, New Jersey’s minimum wage is $8.38 per hour.
New York. Effective January 1, 2015, New York’s minimum wage is $8.75 per hour. New York’s minimum wage is scheduled to increase to $9 per hour on January 1, 2016.
Ohio. Effective January 1, 2015, Ohio’s minimum wage is $8.10 per hour.
Oregon. Effective January 1, 2015, Oregon’s minimum wage is $9.25 per hour.
Rhode Island. Effective January 1, 2015, Rhode Island’s minimum wage is $9 per hour.
South Dakota. Effective January 1, 2015, South Dakota’s minimum wage is $8.50 per hour.
Vermont. Effective January 1, 2015, Vermont’s minimum wage is $9.15 per hour. Vermont’s minimum wage is scheduled to increase as follows:
- On January 1, 2016, the minimum wage will increase to $9.60 per hour.
- On January 1, 2017, the minimum wage will increase to $10 per hour.
- On January 1, 2018, the minimum wage will increase to $10.50 per hour.
Washington. Effective January 1, 2015, Washington’s minimum wage is $9.47 per hour.
West Virginia. Effective January 1, 2015, West Virginia’s minimum wage is $8 per hour. West Virginia’s minimum wage is scheduled to increase to $8.75 per hour on January 1, 2016.
IRS Offers Relief for Small Employer Premium Reimbursement Arrangements
Originally posted February 25, 2015 by Laura Kerekes on ThinkHR.com.
On February 18, 2015, the IRS announced transition relief for certain small employers that subsidize the cost of individual health insurance policies for employees. Notice 2015-17 provides short-term relief from the $100 per employee per day excise tax that otherwise would apply to the employer.
Starting in 2014, employers of all sizes have been prohibited from making or offering any form of payment to employees for individual health insurance premiums, whether through reimbursement to employees or direct payments to insurance carriers. Employers also are prohibited from providing cash or compensation to employees if the money is conditioned on the purchase of individual health coverage. Employers that violate the prohibitions against these so-called “employer payment plans” are subject to an excise tax of $100 per day per affected employee. Exceptions are allowed for limited-scope dental or vision policies, supplemental plans, or retiree-only plans.
Small businesses in particular have been affected by the prohibition since many of them had subsidized individual policies for workers instead of offering a group health plan. Notice 2015-17 now offers short-term relief from tax penalties to give small employers additional time to comply with the prohibition. This relief applies only to small employers. Employers who are defined under the Affordable Care Act as applicable large employers (ALEs) — generally those with 50 or more full-time and full-time-equivalent employees — are not eligible for relief.
Specifically, the IRS will not impose excise taxes on employers that provide pretax reimbursement or payment of individual health insurance premiums as follows:
- For 2014, employers that are not ALEs (based on employer size in 2013).
- For January 1 through June 30, 2015, employers that are not ALEs (based on employer size in 2014).
Starting July 1, 2015, excise taxes may apply regardless of the employer’s size.
Note: This transition relief applies only to pretax reimbursement or payment of insurance premiums. It does not apply to after-tax reimbursements. It also does not apply to stand-alone health reimbursement arrangements (HRAs) or other arrangements to reimburse employees for expenses other than insurance premiums.
Additional Relief Provisions
Notice 2015-17 also provides relief for certain arrangements that reimburse premiums for 2-percent-or-more shareholders in Subchapter S corporations, and for certain employers that reimburse Medicare premiums or TRICARE expenses. These provisions are complex and affected employers should refer to their legal and tax advisors for guidance.
Here are 5 things every employer needs to know about the millennials in their workforce
Source: Property Casualty 360
At the 2015 Property/Casualty Insurance Joint Industry Forum on January 15 a panel of six chief executive officers agreed that the “millennial question” is a big one for 2015 and beyond.
According to The New York Times, the total number of millennials—those born between 1981 and 1997—will reach 75.3 million this year, surpassing baby boomers (those born between 1946 and 1964) as the largest living generation in the U.S.
There are many myths and stereotypes about millennials, but here are the five factors the the panel CEOs said are the most accurate about this generation as employees.
Paula Downey, president and CEO of CSAA Insurance Group, said that millennials make up about 25% of her company’s work force. “We need a cultural change to retain them,” she added. “They’re looking for a diverse, collaborative culture."
Steven D. Linkous, president and CEO of The Harford Mutual Insurance Companies observed that millennials are attracted to the mutual insurance structure of companies like his, where they can engage the community to “make a difference.”
This generation is composed of overachievers and has a constant need for reinforcement, said Thomas A. Lawson, president and CEO of FM Global. They’ve lived with hovering “helicopter parents” who praised their every step, which makes it important to them to know when a boss approves of their work. That approval brings out their best.
“The millennial approach to work-life balance often differs from that of other generations,” noted Christopher J. Swift, chairman and CEO of The Hartford. “They’re also interested in more time off and in working in urban areas with mass transit and reasonable commutes,” he said.
This generation has been raised with a strong sense of volunteerism and “giving back” to the community, according to the panel. “Millennials are also more likely to embrace corporate efforts in social responsibility,” Swift said. That’s one reason you’ll see many groups from insurance companies helping out organizations such as Habitat for Humanity or participating in cancer walks.
The efforts to understand millennials are worthwhile, said Lawson, because properly motivated millennials can be valuable employees.
