DOL reverses course on ‘80/20’ limitations for tipped employees
On November 8, the Department of Labor (DOL) released four new opinion letters, providing insight into their views on compliance with federal labor laws. Read this blog post to learn more.
Last week, the DOL issued four new opinion letters providing both employers and employees further insight into the agency’s views regarding compliance with federal labor laws.
While the letters touch on a variety of issues, perhaps the most notable change involves the DOL’s about-face regarding the amount of “non-tipped” work an employee can perform while still receiving a lower “tip-credit” wage.
Essentially, this new guidance does away with the previous “80/20” rule regarding tipped employees. Under the 80/20 rule, businesses were barred from paying employees traditionally engaged in tip-based work, like servers and bartenders, a lower minimum wage and taking a tip credit for the other portion of the employee’s wage up to applicable state and federal minimum wage requirements when those employees’ side work, like napkin folding or making coffee, accounted for more than 20% of the employee’s time.
In recent years, there has been an explosion of litigation across the country over the 80/20 rule, questioning whether the tipped employee’s “side work” amounted to more than 20% of the employee’s duties and time. Likewise, in many of those same suits, plaintiffs would challenge individual tasks associated with their side work, attempting to claim that those tasks were not so closely related to their tipped duties, but rather rose to the level of a completely different or “dual job,” meaning that the employer should not be permitted to take the tip credit for hours worked performing those tasks.
What followed was case after case of lawyers, courts and employers quibbling over minutes spent folding napkins, wiping counters, slicing lemons, and painstakingly calculating and arguing as to whether those tasks added up to 20% and whether those tasks were not closely related enough to be included in the 20% calculation.
In these kinds of cases, we’d see arguments over circumstances like the server that moonlights as a “maintenance man” versus the server that changed the lightbulb or helped sweep underneath the tables.
The ultimate result: confusion, chaos and, frankly, a treasure trove for plaintiff’s attorneys who had another arrow in their quiver in which to seek additional purported wages for clients from employers that would find it difficult, if not impossible, to account for all minutes and tasks employees were performing in busy restaurants.
Following the DOL’s opinion letter, the landscape will change. Recognizing that the existing guidance and case law had created “some confusion,” the DOL expressly stated that they “do not intend to place a limitation on the amount of duties related to a tip-producing occupation that may be performed, so long as they are performed contemporaneously with direct customer-service duties...”
However, in attempting to provide additional clarity, the DOL may have instead opened up the proverbial Pandora ’s Box of uncertainty. In identifying the list of duties that the DOL would consider “core or supplemental,” the DOL refers to the Tasks section of the Details report in the Occupational Information Network (O*NET). It goes without saying that no document can provide an exhaustive list of tasks in today’s changing marketplace. While the DOL attempted to recognize the changing nature of today’s environment in a savings-type footnote, one does not have to look too far ahead to foreshadow the response from the plaintiff’s bar arguing over the related duties listed on O*NET.
While the DOL’s new position on the 80/20 rule will certainly come as a relief to many employers with tipped employees, employers should still be mindful in evaluating tipped employees’ job duties on a regular basis. Employees that are engaged in “dual jobs” are entitled to the full minimum wage, without the tip credit.
SOURCE: Kennedy, C. (15 November 2018) "DOL reverses course on ‘80/20’ limitations for tipped employees" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/dol-reverses-course-on-80-20-limitations-for-tipped-employees?brief=00000152-14a5-d1cc-a5fa-7cff48fe0001
This article originally appeared on the Foley & Lardner website. The information in this legal alert is for educational purposes only and should not be taken as specific legal advice.
Facebook Unveils New Career-Development Portal
Recently Facebook unveiled a new career-development portal that will provide accessible, relevant content to entry-level job seekers. Read this blog post to learn more.
Facebook is jumping into the learning market in a big way, announcing the launch of Learn with Facebook at its New York offices yesterday, a big step toward the social-networking giant’s recently stated goal of equipping 1 million business owners in the U.S. with digital skills by 2020.
Learn with Facebook is a career-development portal that offers introductory, free-of-charge courses in both hard and soft skills. It’s aimed at people hoping to re-enter the workforce after a period of absence as well as those wishing to acquire skills that will help them compete for entry-level jobs in the digital economy, says Fatima Saliu, Facebook’s head of policy marketing.
“We’re facing a major skills gap in this country, and Learn with Facebook is our attempt to address that,” she says. Learn with Facebook has already been launched in France and Germany, says Saliu, and will expand to other markets as well.
Learn with Facebook is a direct move into LinkedIn’s territory, although Facebook representatives denied yesterday that it was seeking to compete directly with the business-focused social network. LinkedIn has steadily built up its own learning offerings since it acquired Lynda.com in 2015 and rebranded it as LinkedIn Learning. Last week, Harvard Business Publishing announced a new partnership with LinkedIn that will allow customers of HBP to access its content directly via LinkedIn Learning’s platform.
The courses currently available on Learn with Facebook include tutorials on digital marketing as well as resume writing and job interviewing. Facebook is working with the Goodwill Community Foundation to develop course material and adapt it to the needs of local communities, says Saliu. “Our goal is to provide accessible, relevant content to entry-level job seekers,” she says.
Facebook is also enhancing its Jobs on Facebook services by allowing businesses to share their job postings on Facebook groups as well as on their own pages and newsfeeds. The company says more than 1 million people have found jobs via Facebook since it launched the service last year.
Facebook is also making updates to its Mentorship tool, which is designed to make it easier for members of Facebook groups to connect with others who have specific experience or expertise. Users will now be able to sign up to share information on what they’re offering or looking for, making it easier for other Group members to find and connect with them on their own rather than going through a Group administrator first, says Michelle Mederos, Facebook Mentorship product designer.
Facebook Groups have enabled people working in high-stress, low-prestige occupations such as certified nursing assistant obtain mentoring and support, says Seth Movsovitz, founder of a Facebook Group called CNAs Only.
Although LinkedIn currently remains the dominant social-media player in the jobs space, it’s clear that Facebook is determined to be a big player as well. For employers that are desperate to fill jobs in a tight labor market, more competition between the two can only be a good thing.
SOURCE: McIlvaine, A. (15 November 2018) "Facebook Unveils New Career-Development Portal" (Web Blog Post). Retrieved from https://hrexecutive.com/facebook-unveils-new-career-development-portal/
What Benefits and Perks Do Employees Actually Want?
What employee benefits does your organization offer? Today's benefit offerings have grown to include much more than just healthcare benefits. Read this blog post to learn what benefits and perks your employees want.
With open enrollment just around the corner for most companies, employee benefits are top of mind. Today’s offerings have grown to include more than just medical, dental, and vision coverage. Companies are now including perks like scheduling flexibility, tuition reimbursement, and even parental assistance as part of their overall package.
Let’s cut through the hype: what benefits and perks do employees actually care about? As someone who has administered his fair share of open enrollments, I’ve wondered the same thing. But over the years, I’ve learned that you sometimes just need to ask. By running benefits “pulse” surveys, HR teams can get the data and perspective they need to tailor their company’s offerings.
It’s also important to research what’s happening in the marketplace and what your competitors are doing. When was the last time you spoke to your benefits broker? They’ll have the greatest visibility into what types of claims employees are filing and where you might have coverage gaps. Working closely with your broker is one of the easiest ways to ensure you’re meeting employees’ expectations and the job market’s standards.
While studies have shown that traditional medical, dental, and vision coverage are still employees’ top priority, here are some non-traditional offerings that your employees may be clamoring for:
- Parental assistance and leave: Companies are now enriching their policies with tools that assist new parents, including everything from post-birth specialist care to reimbursements for newborn necessities.
- Virtual medical care: One of the hottest trends is virtual medical care. Employees can have access to a doctor 24/7 via a laptop or smartphone, all in the comfort of their own home.
- Tuition reimbursement and assistance: Today, Americans owe over $1.3 trillion in student loans. That’s more than twice what they owed a decade ago. Needless to say, young employees are looking for companies that offer some type of student loan assistance.
- Mental health: Over 18 percent of adults in the United States experience some form of anxiety disorder. Given the growing national focus on mental health issues, it’s no surprise that workplaces are joining the conversation. Increasingly, businesses are offering workers better access to mental health therapists and coaches.
- Physical wellness: Two words: gym reimbursements. Sometimes the motivation to work out can be hard to muster, but when your gym membership is paid for by your employer, why not take full advantage? Healthier, more active employees could lead to lower medical insurance costs, too!
Those are just some of the unique benefits that you should consider offering employees. At the end of the day, I’ve learned that each workplace has different needs and wants. Be sure to regularly survey employees on their preferences and keep tabs on what peer companies are offering.
SOURCE: Cosme, J. (14 November 2018) "What Benefits and Perks Do Employees Actually Want?" (Web Blog Post). Retrieved from https://blog.shrm.org/blog/what-benefits-and-perks-do-employees-actually-want
Predictive Analytics Will Be The Silent Game-Changer In Employee Benefits
Employers can now use their own data to help fine-tune their employer-sponsored benefits packages. Continue reading to learn how this technology could be used to help fine-tune employee benefits offerings.
Last year’s World Series between the Houston Astros and the Los Angeles Dodgers came down to a seven-game battle based not only on talent, athleticism and coaching but also on data. Just as Sports Illustrated suggested back in 2014 via predictive data, the Astros were the victors.
The publication of Moneyball: The Art of Winning an Unfair Game spurred not only Major League Baseball teams to deploy predictive analytics, but also businesses to take a harder look at what their data means. It's no longer part of the hype cycle: Statista forecasts (paywall) that the predictive analytics market worldwide will reach $6.2 billion in 2018 and $10.95 billion in 2022.
I believe we are also at a transformational point in improving corporate employee benefits and our employees’ lives by embracing predictive analytics. HR is swimming in rich data. Instead of guesstimating needs across multiple generations of employees, employers can turn to their own data to fine-tune what they are offering as benefits solutions. Companies spend 25-40% of an employee’s salary on benefits. It simply makes strategic and financial sense to get it right.
Bring Employee Benefits Out Of The Dark Ages
Hiring and retaining great talent is at the very soul of almost every company’s strategy. Not surprisingly, more companies have turned to predictive analytics to give them a leg up in recruitment. However, HR benefits have lagged behind. As John Greenwood reported to Corporate Adviser, “More than half of reward and employee benefits professionals see predictive analytics as a game-changer, but 90 percent are still using spreadsheets to manage data, research from the Reward & Employee Benefits Association shows.”
One reason for benefits lagging behind recruitment in adopting predictive analytics is that the way companies choose new benefits varies greatly from business to business. Given that the majority of HR departments keep data in disparate spreadsheets, even if some HR departments conduct employee surveys or historical cost analyses, they often do not integrate the data about their workforce. If a new benefit offering is chosen based on a needs analysis, only some know the “why” behind a request from the workforce. Knowing how many employees are logging into a benefits platform is helpful; market standard benefit utilization reports provide this level of information. Yet they do not give insight into the underlying reason for an employee to utilize a benefit. The user of deeper analytics is required to look deeper into employees' behavior.
We have found firsthand that many HR departments do not have a full understanding of how their employees are utilizing their benefits across the entire offering suite. A one-size-fits-all or a one-off strategy no longer is effective. Companies must understand not only their employees’ needs but also the underlying data related to these needs to provide a valuable benefits offering.
Put Your Existing Data To Use
For the past five years, I have watched our clients glean valuable insights into what the real underlying issues are for their employees and what must be done to address these pressing needs. I also have been watching companies realize that what they thought were the core problems at hand sometimes were not.
For example, one of our national high-tech clients, with over 50,000 benefit-eligible employees, believed that a high number of their employees had children struggling with autism. This belief was initially based on input from some of their employees. After approximately 16 months, the client reviewed the masked utilization data from their benefit platform. The data illustrated that the overwhelming majority of employee families (tenfold) in fact faced challenges associated with youth anxiety, a concern that had never been expressed to HR previously. Once they reviewed what employees were doing within our platform, their results mirrored the National Institute of Mental Health’s report that approximately 31.9% of U.S. children ages 13-18 struggle with anxiety disorders.
Their own data helped them understand much more specifically where their employees’ stress lay, and their HR department was able to focus communications around it.
Getting Started
Mining and viewing use data across all benefits is ideal. This enables an employer to determine if the benefit suite is serving employees effectively. We have found that as quickly as year over year, users' behaviors shift. If a company solely chooses a benefit based on what they saw as most heavily utilized the previous year, they are not being strategic.
For that reason, HR should utilize past and current data to better predict future patterns of need for a truly strategic approach to benefit choice. With this insight, they can make better choices and serve their workforce more effectively.
Given the limitations across many employee benefit vendors today, to start initially:
1. Embrace KPIs. Agree upon them internally, and measure benefit vendors on them.
2. Work with your current vendors to determine what data they provide to support your internal analysis. Ensure you have access to all the data you need, and if not, consider a vendor change.
3. Hold possible new vendors to similar data standards, and create a transparent relationship from the start.
4. Collect current and historical data. Existing vendors can provide this history, so make sure to collect at least 2-3 years of information.
These analytics need to go deeper than basic demographics to show patterns of activity. In order to understand the benefit needs of your workforce, you'll want to analyze trends across multiple data sets: medical, pharmacy, worker's compensation, biometric screenings, utilization patterns, FMLA requests and demographic trends. From there, you can start to pinpoint what your employees need -- and the “whys” behind the needs -- in order to make a measurable impact.
While predictive analytics is still in the nascent phase in the benefits and vendor worlds, the easiest and most proactive thing any employer can do is to focus on other insights vendors can provide related to the workforce and benefit use beyond simple utilization. In doing so, you will be able to support your employees both in their work lives and their personal lives by providing them with the benefits they need to be at their best.
SOURCE: Goldberg, A. (2 October 2018) "Predictive Analytics Will Be The Silent Game-Changer In Employee Benefits" (Web Blog Post). Retrieved from: https://www.forbes.com/sites/forbestechcouncil/2018/10/02/predictive-analytics-will-be-the-silent-game-changer-in-employee-benefits/#26648166e182
30 employee handbook do’s and don’ts from the NLRB
Recently, the National Labor Relations Board (NLRB) released a list of rules to help employers comply with the National Labor Relations Act. Read this blog post to learn more.
To help employers craft handbooks that don’t violate the National Labor Relations Act, the National Labor Relations Board has issued a compilation of rules it has found to be illegal — and rewritten them to illustrate how they can comply with the law.
It was issued as a memorandum by NLRB General Counsel Richard F. Griffin, Jr. to “help employers to review their handbooks and other rules, and conform them, if necessary, to ensure they are lawful.”
Specifically, the memorandum points out employer policies found to violate and conform to Section 7 of the NLRA.
The main area of concern
Section 7 mandates that employees be allowed to participate in “concerted activity” to help improve the terms and conditions of their work.
The NLRB has made it abundantly clear recently that it’s on the lookout for rules that:
- explicitly restrict protected concerted activity, and/or
- could be construed to restrict protected Section 7 activity.
One thing the memorandum makes very clear: extremely subtle variations in language could be the difference between having a legal policy in the NLRB’s eyes and having one that’s viewed as violating the NLRA.
What to say, what not to say
Here are many of the dos and don’ts highlighted by the memorandum, separated by topic:
Rules regarding confidentiality
- Illegal: “Do not discuss ‘customer or employee information’ outside of work, including ‘phone numbers [and] addresses.'” The NLRB said, in addition to the overbroad reference to “employee information,” the blanket ban on discussing employee contact info, without regard for how employees obtain that info, is facially illegal.
- Illegal: “Never publish or disclose [the Employer’s] or another’s confidential or other proprietary information. Never publish or report on conversations that are meant to be private or internal to [the Employer].” The NLRB said a broad reference to “another’s” information, without clarification, would reasonably be interpreted to include other employees’ wages and other terms and conditions of employment.
- Illegal: Prohibiting employees from “[d]isclosing … details about the [Employer].” The NLRB said this is a broad restriction that failed to clarify that it doesn’t restrict Section 7 activity.
- Legal: “No unauthorized disclosure of ‘business “secrets” or other confidential information.'”
- Legal: “Misuse or unauthorized disclosure of confidential information not otherwise available to persons or firms outside [Employer] is cause for disciplinary action, including termination.”
- Legal: “Do not disclose confidential financial data, or other non-public proprietary company information. Do not share confidential information regarding business partners, vendors or customers.”
The NLRB said the last three rules above were legal because: “1) they do not reference information regarding employees or employee terms and conditions of employment, 2) although they use the general term “confidential,” they do not define it in an overbroad manner, and 3) they do not otherwise contain language that would reasonably be construed to prohibit Section 7 communications.”
Rules regarding conduct toward the company and supervisors
- Illegal: “[B]e respectful to the company, other employees, customers, partners, and competitors.”
- Illegal: “Do ‘not make fun of, denigrate, or defame your co-workers, customers, franchisees, suppliers, the Company, or our competitors.'”
- Illegal: “Be respectful of others and the Company.”
- Illegal: “No ‘[d]efamatory, libelous, slanderous or discriminatory comments about [the Company], its customers and/or competitors, its employees or management.'”
The NLRB said the rules above were unlawfully overbroad because: “employees reasonably would construe them to ban protected criticism or protests regarding their supervisors, management, or the employer in general.”
- Illegal: “Disrespectful conduct or insubordination, including, but not limited to, refusing to follow orders from a supervisor or a designated representative.”
- Illegal: “‘Chronic resistance to proper work-related orders or discipline, even though not overt insubordination’ will result in discipline.”
The NLRB said the rules above, while banning “insubordination,” also ban “conduct that does not rise to the level of insubordination, which reasonably would be understood as including protected concerted activity.”
- Illegal: “Refrain from any action that would harm persons or property or cause damage to the Company’s business or reputation.”
- Illegal: “[I]t is important that employees practice caution and discretion when posting content [on social media] that could affect [the Employer’s] business operation or reputation.”
- Illegal: “Do not make ‘[s]tatements “that damage the company or the company’s reputation or that disrupt or damage the company’s business relationships.”‘”
- Illegal: “Never engage in behavior that would undermine the reputation of [the Employer], your peers or yourself.”
The NLRB said the rules above “were unlawfully overbroad because they reasonably would be read to require employees to refrain from criticizing the employer in public.
- Legal: “No ‘rudeness or unprofessional behavior toward a customer, or anyone in contact with’ the company.”
- Legal: “Employees will not be discourteous or disrespectful to a customer or any member of the public while in the course and scope of [company] business.”
The NLRB said the rules above are legal because they wouldn’t lead an employee to believe they restrict criticism of the company.
- Legal: “Each employee is expected to work in a cooperative manner with management/supervision, coworkers, customers and vendors.” The NLRB says employees would reasonably understand that this states the employer’s legitimate expectation that employees work together in an atmosphere of civility.
- Legal: “Each employee is expected to abide by Company policies and to cooperate fully in any investigation that the Company may undertake.” The NLRB said this rule is legal because “employees would reasonably interpret it to apply to employer investigations of workplace misconduct rather than investigations of unfair labor practices or preparations for arbitration.”
- Legal: “‘Being insubordinate, threatening, intimidating, disrespectful or assaulting a manager/supervisor, coworker, customer or vendor will result in’ discipline.” The NLRB said: “Although a ban on being disrespectful’ to management, by itself, would ordinarily be found to unlawfully chill Section 7 criticism of the employer, the term here is contained in a larger provision that is clearly focused on serious misconduct, like insubordination, threats, and assault. Viewed in that context, we concluded that employees would not reasonably believe this rule to ban protected criticism.”
Rules regarding conduct between employees
- Illegal: “‘[D]on’t pick fights’ online.”
- Illegal: “Do not make ‘insulting, embarrassing, hurtful or abusive comments about other company employees online,’ and ‘avoid the use of offensive, derogatory, or prejudicial comments.'”
- Illegal: “[S]how proper consideration for others’ privacy and for topics that may be considered objectionable or inflammatory, such as politics and religion.”
- Illegal: “Do not send ‘unwanted, offensive, or inappropriate’ e-mails.”
The NLRB said the rules above were unlawfully overbroad because employees would reasonably construe them to restrict protected discussions with their co-workers.
- Legal: “[No] ‘Making inappropriate gestures, including visual staring.'”
- Legal: “Any logos or graphics worn by employees ‘must not reflect any form of violent, discriminatory, abusive, offensive, demeaning, or otherwise unprofessional message.'”
- Legal: “[No] ‘[T]hreatening, intimidating, coercing, or otherwise interfering with the job performance of fellow employees or visitors.'”
- Legal: “No ‘harassment of employees, patients or facility visitors.'”
- Legal: “No ‘use of racial slurs, derogatory comments, or insults.'”
The NLRB said the rules above were legal because: “when an employer’s professionalism rule simply requires employees to be respectful to customers or competitors, or directs employees not to engage in unprofessional conduct, and does not mention the company or its management, employees would not reasonably believe that such a rule prohibits Section 7-protected criticism of the company.
SOURCE: Schappel, C. (18 July 2018) "30 employee handbook do’s and don’ts from the NLRB" (Web Blog Post). Retrieved from https://www.hrmorning.com/employee-handbook-dos-and-donts-from-the-nlrb/
Checklist: Updating your employee handbook
Employee handbooks can be confusing to prepare and revise. Ensure you don't miss any information when preparing or revising your company's employee handbook with this simple checklist:
When you are preparing or revising an employee handbook, this checklist may be helpful.
Acknowledgment
- Do employees sign a signature page, confirming they received the handbook?
- On the signature page, do employees agree to follow the policies in the handbook?
- Does the signature page state that this handbook replaces any previous versions?
- On the signature page, do employees agree that they will be “at-will” employees?
- Do employees agree that the employer may change its policies in the future?
Wage and hour issues
- Does the employer confirm that it will pay employees for all hours worked?
- Before employees work overtime, are they required to obtain a supervisor’s approval?
- During unpaid breaks, are employees completely relieved of all duties? (For example, while a receptionist takes an unpaid lunch break, this person shouldn’t be required to greet visitors or answer phone calls.)
- Are employees paid when they attend a business meeting during lunch?
- Are employees paid for attending in-service trainings?
- Are employees paid while they take short breaks?
Paid Time Off
- Has the employer considered combining vacation time, sick time, and personal time into one “bucket” of paid time off?
- Does the paid time off policy line up with the employer’s business objectives? (For example, does it provide incentives for employees to use paid time off during seasons when business is slower?)
- Does the handbook say what will happen to paid time off when employment ends? (In Pennsylvania, employers are not required to pay terminated employees for the value of their paid time off. Some employers choose to do this, as an incentive for employees to give at least two weeks’ notice.)
- If the Family and Medical Leave Act (FMLA) applies to the employer, does the handbook inform employees of their rights?
- Does the handbook list all types of leave that are available? (For example, does the employer offer bereavement leave? How about leave while an employee serves as a juror or witness? What about municipal laws that provide certain types of leave, such as paid sick leave?)
Reasonable accommodations
- How should employees request a reasonable accommodation?
- Does the employer permit employees with disabilities to bring service animals to work (Employers should avoid blanket policies that ban all animals.)
- May employees deviate from grooming and uniform requirements for a religious reason, or a medical reason? (For example, an employee may have a religious reason to wear a headscarf, even if the employer has a blanket policy that would otherwise prohibit this.)
Discrimination and retaliation
- Does the employer inform employees that they are protected against discrimination and retaliation?
- Is there an accurate list of protected categories? (Confirm all locations where the employer does business. Some states or municipalities may provide employees with greater protection than federal law. Are there any categories, such as sexual orientation, that the employer should add?)
- Do employees have a clear way to report discrimination and retaliation?
- Is there more than one way to report discrimination and retaliation? (In other words, employees shouldn’t be required to make a report to the same person who they believe is committing acts of discrimination.)
Restrictive covenants/trade secrets
- Are employees required to keep the employer’s information confidential?
- Do employees confirm they are not subject to any restrictive covenants (such as non-compete agreements) that would limit their ability to work for the employer?
- Are employees prohibited from giving the employer confidential information that belongs to a previous employer?
Labor law issues
- If employees belong to a union, does the employer state that it doesn’t intend for the handbook to conflict with any collective bargaining agreement?
- Does the employer have a content-neutral policy on soliciting and distributing materials in the workplace? (In general, if an employer wants to limit union-related communications, the employer must apply the same rules to solicitations which don’t involve a union.)
- Does the handbook accurately reflect whether employees may wear union-related apparel, such as hats, buttons, T-shirts and lanyards?
- Are employees permitted to discuss their wages with each other? (Some employers try to prohibit this, but the National Labor Relations Act entitles employees to discuss their wages with each other. This rule applies to all employers—whether or not they have a union.)
Other
- If the employer has a progressive discipline policy, does the employer reserve the right to deviate from this policy?
- Does the employer reserve the right to inspect company computers and email accounts?
- Does the employer have a social media policy, or a medical marijuana policy?
- If the employer has other policies, how do they fit together with the handbook? (Does it make sense to incorporate the policies into the handbook? Or, should the handbook clarify which other policies will remain in effect?)
- Does the handbook contain any provisions that the employer is unlikely to enforce? (For example, does the handbook prohibit employees from using all social media? Does it prohibit employees from talking on the phone while driving?)
SOURCE: Lipkin, B (20 August 2018) "Checklist: Updating your employee handbook" (Web Blog Post). Retrieved from https://www.benefitspro.com/2018/08/20/is-your-employee-handbook-up-to-date-compare-it-wi/
4 actions HR departments should take to prepare for GDPR
In this article from Benefits Pro, we are going to take a look at the top four actions HR departments should take to prepare for GDPR. Continue reading:
A few years ago, Mark Cuban famously advised that data is the new gold. However, things have changed since the Cambridge Analytica and Facebook scandal as the public has become increasingly concerned with how companies are using their personal information.
As businesses prepare for the arrival of the General Data Protection Regulation (GDPR), leaders could be forgiven for thinking that data can become more of a liability than an asset – depending on its handling.
GDPR is a much-needed update to data protection that aims to strengthen and unify security for everyone in Europe. The legislation goes live on May 25, 2018 and will enforce all businesses to secure and manage the personal data of all individuals living within the European Union.
After years of gathering data, we are now entering a new era where trust and transparency are the new global currency. GDPR will affect all businesses that store any aspect of personally identifiable information of all individuals, both customer and employee, living in the EU, whether or not that business has an office there.
The scope of GDPR includes employee data, so it directly affects HR departments. As a result, companies need to update processes around the lifecycle of basic employee personal data such as health information and family details.There are many resources surrounding the topic; some on which include free, user-friendly materials published by the EU governments in addition to those that act as “scaremongers” seeking to try to trick companies into paying for compliance help. What makes it most difficult for HR professionals is interpreting the rule, which was written broadly to address any type of personal data and applying it to employee data and HR practices, specifically. Compliance cannot be achieved overnight or ready for the big “go live” in May either. An entirely new way of working to understand where every aspect of data is obtained, how it is used, and where it is stored needs to be put in place. In short, this is not a job for the IT department alone, but rather requires a highly collaborative effort across the company. Silos will need to be broken down to efficiently unify all departments such as sales, marketing, finance, IT, and legal to understand the scale of how much data businesses are actively storing. But what do HR professionals need to know?
1. Create new or updated privacy policies
New privacy policies likely need to be created and implemented to reflect the new rights of employees. Equally, all existing policies should to be reviewed to determine which ones require updating to fall in line with GDPR’s transparency and accountability requirements.
In addition, a key difference between the current EU data rules and the GDPR is the emphasis on individual rights. Employees can now request that their data be completely erased at any time or request a copy of their data thats on file. HR teams need to be prepared to uphold these demands.
2. Revisit outdated processes
Reviewing HR processes, like onboarding a new employee, will help reveal what data you’re collecting that you don’t necessarily have a need for. Minimization is key to successful GDPR compliance; less is more. Implementing minimization will likely require you to update protocols and rethink processes that include the requesting of personal data from employees. For example, the onboarding and transfer of employees will need to be revisited to ensure that data collection practices meet GDPR requirements. You may also need to revisit your record retention policies and processes for ex-employees.
Ask your partners and vendors for their GDPR and compliance plan as risk is shared when they handle employee data on your behalf…
3. Allow data access only to those who really need it
The rise of shadow IT and sensitive data being increasingly stored in the public cloud combined with malware in cloud SaaS applications are the more significant concerns. CIOs and IT leaders now have the power to implement stronger cybersecurity and secure data-management policies that will protect personal data now and in the future. Security elements of the legislation demand that appropriate technical and organizational measures are taken to ensure all employee data is kept safe. HR’s responsibility is to ensure that only those who need access to personal data to do their job have access to it. Making sure that the right people have the appropriate access levels within a digital HR platform – or keys to the file cabinet – is the secret to successful compliance.
4. Centralize your employee file management
Learning about and documenting every element of employee data, where it is stored, and who has access is a process made much easier with centralized digital files. Going forward, a digital system makes it possible for HR to implement and internally audit procedures that will ultimately provide them with the visibility into compliance as well as potential vulnerabilities. GDPR and employee expectations means companies need to shift from a reactive to a proactive approach. A digital system is necessary to enable HR with visibility across their data, securely manage access to the data and implement at scale and policy changes.. With GDPR, the stakes are increasing yet again for companies; HR now must think about collecting the least amount of data they need to get the job done and being completely transparent around its usage, rather than burying this information in complicated terms and conditions. Sure, this will dramatically change the way companies globally deal with EU citizens’ data, but it’s something to be embraced rather than feared. By showcasing implementation of these new data protection practices, a brand can actually build its reputation. While board members might fear the ramifications of the GDPR, we all know that the breach of company data is something far worse. For these reasons alone, GDPR should be seen as an opportunity for every employee to focus on protecting their personal data or at least understanding their responsibilities. And for employers, take this opportunity to become more open to a review of outdated practices and investing in and building technology that can complement this forward thinking approach. Data protection compliance is now an on-going priority and its beneficial for all to take seriously.
Source:
Gouchan A. (4 May 2018). "4 actions HR departments should take to prepare for GDPR" [web blog post]. Retrieved from address https://bit.ly/2wl6ZwU
CenterStage: Traditional IRA, Roth IRA, 401(k), 403(b): What’s the Difference?
In this month’s CenterStage article, we are going to take a look at the difference between traditional IRA, Roth IRA, 401(k), 403(b), curtesy of Kevin Hagerty, a Financial Advisor at Saxon.
The earlier you begin planning for retirement, the better off you will be. However, the problem is that most people don’t know how to get started or which product is the best vehicle to get you there.
A good retirement plan usually involves more than one type of savings account for your retirement funds. This may include both an IRA and a 401(k) allowing you to maximize your planning efforts.
If you haven’t begun saving for retirement yet, don’t be discouraged. Whether you begin through an employer sponsored plan like a 401(k) or 403(b) or you begin a Traditional or Roth IRA that will allow you to grow earnings from investments through tax deferral, it is never too late or too early to begin planning.
This article discusses the four main retirement savings accounts, the differences between them and how Saxon can help you grow your nest egg.
“A major trend we see is that if people don’t have an advisor to meet with, they tend to invest too conservatively because they are afraid of making a mistake,” said Kevin. “Then the problem is that they don’t revisit it and if you’re not taking on enough risk you’re not giving yourself enough opportunity for growth. Then you run the risk that your nest egg might not grow to what it should be.”
“Saxon is here to help people make the best decision on how to invest based upon their risk tolerance. We have questionnaires to determine an individual’s risk factors, whether it be conservative, moderate or aggressive and we make sure to revisit these things on an ongoing basis.”
Traditional IRA vs. Roth IRA
Who offers the plans?
Both Traditional and Roth IRAs are offered through credit unions, banks, brokerage and mutual fund companies. These plans offer endless options to invest, including individual stocks, mutual funds, etc.
Eligibility
Anyone with earned, W-2 income from an employer can contribute to Traditional or Roth IRAs as long as you do not exceed the maximum contribution limits.
With Traditional and Roth IRAs, you can contribute while you have earned, W-2 income from an employer. However, any retirement or pension income doesn’t count.
Tax Treatment
With a Traditional IRA, typically contributions are fully tax-deductible and grow tax deferred so when you take the money out at retirement it is taxable. With a Roth IRA, the money is not tax deductible but grows tax deferred so when the money is taken out at retirement it will be tax free.
“The trouble is that nobody knows where tax brackets are going to be down the road in retirement. Nobody can predict with any kind of certainty because they change,” explained Kevin. “That’s why I’m a big fan of a Roth.”
“A Roth IRA can be a win-win situation from a tax standpoint. Whether the tax brackets are high or low when you retire, who cares? Because your money is going to be tax free when you withdraw it. Another advantage is that at 70 ½ you are not required to start taking money out. So, we’ve seen Roth IRA’s used as an estate planning tool, as you can pass it down to your children as a part of your estate plan and they’ll be able to take that money out tax free. It’s an immense gift,” Kevin finished.
Maximum Contribution Limits
Contribution limits between the Traditional and Roth IRAs are the same; the maximum contribution is $5,500, or $6,500 for participants 50 and older.
However, if your earned income is less than $5,500 in a year, say $4,000, that is all you would be eligible to contribute.
“People always tell me ‘Wow, $5,500, I wish I could do that. I can only do $2,000.’ Great, do $2,000,” explained Kevin. “I always tell people to do what they can and then keep revisiting it and contributing more when you can. If you increase a little each year, you will be contributing $5,500 eventually and not even notice.”
Withdrawal Rules
With a Traditional IRA, withdrawals can begin at age 59 ½ without a 10% early withdrawal penalty but still with Federal and State taxes. The Federal and State government will mandate that you begin withdrawing at age 70 ½.
Even though most withdrawals are scheduled for after the age of 59 ½, a Roth IRA has no required minimum distribution age and will allow you to withdraw contributions at any time. So, if you have contributed $15,000 to a Roth IRA but the actual value of it is $20,000 due to interest growth, then the contributed $15,000 could be withdrawn with no penalty.
Employer Related Plans – 401(k) & 403(b)
A 401(k) and a 403(b) are theoretically the same thing; they share a lot of similar characteristics with a Traditional IRA as well.
Typically, with these plans, employers match employee contributions .50 on the dollar up to 6%. The key to this is to make sure you are contributing anything you can to receive a full employer match.
Who offers the plans?
The key difference with these two plans lies in if the employer is a for-profit or non-profit entity. These plans will have set options of where to invest, often a collection of investment options selected by the employer.
Eligibility
401(k)’s and 403(b)’s are open to all employees of the company for as long as they are employed there. If an employee leaves the company they are no longer eligible for these plans since 401(k) or 403(b) contributions can only be made through pay roll deductions. However, you can roll it over into an IRA and then continue to contribute on your own.
Only if you take possession of these funds would you pay taxes on them. If you have a check sent to you and deposit it into your checking account – you don’t want to do that. Then they take out federal and state taxes and tack on a 10% early withdrawal penalty if you are not age 59 ½. It may be beneficial to roll a 401(k) or 403(b) left behind at a previous employer over to an IRA so it is in your control.
Tax Treatment
Similar to a Traditional IRA, contributions are made into your account on a pretax basis through payroll deduction.
Maximum Contribution Limits
The maximum contribution is $18,000, or $24,000 for participants 50 and older.
Depending on the employer, some 401(k) and 403(b) plans provide loan privileges, providing the employee the ability to borrow money from the employer without being penalized.
Withdrawal Rules
In most instances, comparable to a Traditional IRA, withdrawals can begin at age 59 ½ without a 10% early withdrawal penalty. Federal and State government will mandate that you begin withdrawing at age 70 ½. Contributions and earnings from these accounts will be taxable as ordinary income. There are certain circumstances when one can have penalty free withdrawals at age 55, check with your financial or tax advisor.
In Conclusion…
“It is important to make sure you are contributing to any employer sponsored plan available to you so that you are receiving the full employer match. If you have extra money in your budget and are looking to save additional money towards retirement, that’s where I would look at beginning a Roth IRA. Then you can say that you are deriving the benefits of both plans – contributing some money on a pretax basis, lowering federal and state taxes right now, getting the full employer contribution match and then saving some money additionally in a Roth that can provide tax free funds/distributions down the road,” finished Kevin.
Editor’s Note: This article was originally published in June 2017 and was updated in January 2018 for accuracy.
FREE ACA RESOURCES FOR SMALL BUSINESSES
From The ACA Times, we've pulled this article that lists out some helpful resources for small businesses.
The federal government provides free online resources to help small businesses better understand the requirements of the Affordable Care Act (ACA) and how they might be able to offer health insurance to their employees. Here are some we thought might be helpful.
How the Affordable Care Act affects small businesses: This web page hosted by HealthCare.gov explains how the ACA can impact a small business with 1 to 50 full-time equivalent employees.
SHOP Guide: This web page on Healthcare.gov provides information for small businesses on how they can offer a Small Business Health Options Program (SHOP) insurance to their employees. The web page has links to help businesses learn more about SHOP and whether they qualify to offer such coverage to employees.
The Small Business Health Care Tax Credit: Healthcare.gov, the Taxpayer Advocate Service and the IRS both provide web pages that provide information that helps small businesses determine if they are eligible to take advantage of tax credits if they offer SHOP to their employees.
The Future of SHOP: The Centers for Medicare and Medicaid Services (CMS) is providing information on how CMS will be exploring a more efficient implementation of the Federally-facilitated SHOP Marketplaces in order to promote insurance company and agent/broker participation and make it easier for small employers to offer SHOP plans to their employees, while maintaining access to the Small Business Health Care Tax Credit.
Read the original article here.
Source:
Sheen R. (21 November 2017). "FREE ACA RESOURCES FOR SMALL BUSINESSES" [Web blog post]. Retrieved from address https://acatimes.com/free-aca-resources-for-small-businesses/
5 ways digital tools can help build a better benefits package
"...digital tools can be excellent motivators and are a popular option for keeping employees to their wellness objectives..." In this article from Employee Benefit Advisor, we get a fantastic look at some statistics and digital tools to create better employee engagement.
The American workforce has an employee engagement problem: Half of U.S. workers are disengaged, according to a recent Gallup poll. That not only has a detrimental effect on individual wellness, but on company culture and the bottom line. According to The Engagement Institute, disengaged employees cost organizations between $450 and $550 billion every year. In addition to being less productive, they’re also more likely to quit.
One of the most effective ways to improve employee engagement is to offer better benefits. In fact, research conducted by Willis Towers Watson found 75% of employees said they were more likely to stay with their employer because of their benefit program. This demonstrates the value of designing an employee benefits package that really works for your staff. And to even better engage workers with benefits, employers should utilize HR apps and employee wellness software.
They vary in functionality, device compatibility, and of course price, but they all share five considerable advantages:
They’re highly adaptable. Unlike programs that rely on in-person use or resources that are primarily stored in binders, digital content can be updated on the fly. This flexibility makes it very easy to keep the information current and relevant, and it even opens the door to personalized benefits. For instance, if each employee has their own login, they can bookmark the resources they find most useful and receive suggestions based on those picks. Seventy-two percent of employees in a MetLife survey say being able to customize their benefits would increase their loyalty to their current employer, which makes this perk doubly advantageous.
They’re fully integrative. One major complaint employees have is that their health information is so disjointed. Dental, physical, psychological and nutritional data is siloed, creating a cumbersome situation for employees when it comes to accessing and updating their records. Digital tools neatly solve this problem by collecting all these resources in one place. All employees have to do is sign into one account to view all their health-related resources, benefits, emergency phone numbers, enrolment information, health savings account balance and so on.
They’re constantly accessible. Have you noticed your staff using fewer and fewer benefits over time? It’s easy to assume they’ve lost interest, but chances are they’ve simply forgotten what’s available to them. Digital tools are a fantastic way of combating that attrition for a couple of reasons. First, they’re super easy to access because they can be used essentially anytime, anywhere. The second reason your staff is more likely to continue using their benefits with a digital platform is because it can serve them with notifications and reminders. They no longer have the excuse of being unaware when fresh content is added, or missing medical appointments.
They encourage employee goals. To add to the previous point, digital tools can be excellent motivators and are a popular option for keeping employees to their wellness objectives. Two of the most common goals are weight loss and smoking cessation, but your employees can use calendar, reminders, notes, fitness trackers and other features to push them toward any goal they like.
They’re easily scalable. Finally, digital tools are the most efficient way of reaching a large employee base, especially if they’re spread over a large geographical distance. It’s impossible to expect a thousand employees located in different states to attend a stress management seminar, for example, but it’s not unreasonable to ask them to watch a five minute video or listen to a podcast. Digital resources are changing the game when it comes to reaching all employees equally so that no one gets left behind.
Some things to keep in mind
Now that you’ve been convinced to digitize your employee wellness program, there are a couple of assurances you should make. The first is confidentiality. Your employees need to feel safe accessing your health resources, so guaranteeing the security and privacy of their information is a must. You should also make accommodations for various accessibility concerns. In other words, having all your resources in video format isn’t helpful for employees who are visually impaired. Also be aware of the different situations in which your staff might need access (at home, on the go, with or without an internet connection, etc) to ensure maximum ease of use.
Why is this all so important? As cool and cutting-edge as many of these digital tools are, at the end of the day your goal is to promote employee well-being and engagement. Anything that encourages your staff to come into work with a smile on their faces is worthwhile. Gallup studies have shown highly engaged organizations are 21% more profitable, 17% more productive, and achieve a 41% reduction in absenteeism. No matter how effective your current benefits package is, you can — and should — take it to the next level with a digital program.
Read the original article.
Source:
Mittag A. (17 November 2017). "5 ways digital tools can help build a better benefits package" [Web blog post]. Retrieved from address https://www.employeebenefitadviser.com/opinion/5-ways-digital-tools-can-help-build-a-better-benefits-package?feed=00000152-1387-d1cc-a5fa-7fffaf8f0000
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