Thursday, May 31, 2012

Health Care Reform – Medical Loss Ratio & Rebates

Medical Loss Ratio (MLR)
The Affordable Care Act has created a basic financial measurement to encourage health plans to provide value to enrollees.

Small Companies: Less than 100 employees
  • Required medical loss ratio = 80% of premiums. Meaning that 80 cents for every premium dollar is used to pay medical claims and activities specifically designed to improve the quality of care.
Medium – Large Companies: 100 employees or more

  • Required medical loss ratio = 85% of premiums. Meaning that 85 cents for every premium dollar is used to pay medical claims and activities specifically designed to improve the quality of care.
  • The remaining 20 or 15 cents of each premium dollar would be used to pay for operating costs (overhead, marketing, salaries, commissions).
Rebates
Starting in August 2012, any insurance company that did not meet the medical loss ratio requirement in 2011 must provide rebates to their customers. Such rebates are managed by the Health and Human Services division ensuring protections to benefit plan participants.

Thursday, May 24, 2012

The 10 Most Common Legal Mistakes HR Makes

The Human Resources department has a host of responsibilities. Juggling them is often overwhelming, to say the least. One small misstep could cost the company hundreds, thousands, and even millions of dollars. Knowing in which areas of HR's numerous responsibilities the most common pitfalls lurk goes a long way to ensuring that you don't fall into these traps.

#1: Advertisements, Interviews, and Offer Letters

Mistake: improper language in job advertisements. Too many employers still use inappropriate terms — such as "girl," "boy," or "young" — in their job advertisements. This is particularly true when managers, rather than HR, write the ads.

Mistake: unlawful interview inquiries. Too many hiring managers ask about personal and/or protected characteristics during job interviews, which sets the employer up for a discrimination lawsuit if the applicant is not hired.

Mistake: inaccurate description of the job. Some hiring managers work so hard to get top-notch recruits in the door that they fail to be realistic with their description of the job. The unhappy employee will leave, and it will have been a shameful waste of the employer's time and money.

Mistake: inadvertent creation of contractual promises. Too many employers include language in their job offer letters that inadvertently creates an employment contract. For instance, mentioning a yearly salary implies a yearly contract.

#2: Wage and Hour Issues

Mistake: misclassification of workers. Exempt vs. non-exempt status: Finding and correcting these mistakes are an Obama administration priority. While there are many factors to consider, you're basically basing your determination on the employee's level of responsibility and/or training, and a salary test.

Mistake: mandating confidentiality of wage information. Prohibiting employees from discussing their wages is a violation of the National Labor Relations Act.

#3: Privacy Assumptions and Violations

Mistake: permitting an expectation of electronic privacy. Too many employers fail to advise employees to expect no privacy on their computers. If you asked employees, "Do you think the stuff you put into that computer is private?" you might get some interesting answers.

Mistake: improper electronic monitoring. Some states have statutes that require employers to give employees notice if they are being monitored electronically.

Mistake: inadvertently revealing private employee information. HR possesses a great deal of sensitive information about individual employees. It is your duty to keep that information confidential.

#4: Training and Performance

Mistake: failure to train supervisors. When supervisors are not trained, they're the ones who get you into trouble. They may say rude, racist, or sexist things, or be unintentionally discriminatory, and because they are in a supervisory position, the entire company is on the hook.

Mistake: misleading performance evaluations. If you try to discipline an employee for a performance/behavior problem that was never noted on their evaluation, your hands may be tied.

#5: Rough Beginnings and Sharp Endings

Mistake: sloppy start. Among HR's common errors in this area are: failing to submit the state notice of a new hire; failing to tell the employee the key terms and conditions of employment; and providing the employee with a misleading description of working conditions.

Mistake: sloppy finish. Regardless of whether a termination is voluntary or involuntary, always allow the employee to leave with dignity.

#6: Investigations

Mistake: failure to oversee supervisory investigations. As an HR professional, you know that timeliness and thoroughness are important in an investigation. But what about when a supervisor is the one investigating, not HR? It's still HR's responsibility to provide oversight.

#7: Record-Keeping/I-9 Issues

Mistake: failure to document past practices. Courts love to know not only whether the treatment of an employee was against the law or company policy, but whether it was in line with past practices.

Mistake: failure to comply with Form I-9 requirements. Failure to complete the I-9 form properly and failure to keep the form in a separate file are common mistakes employers make.

#8: Breakdowns In Communication

Mistake: failure to keep employees in the loop. Forgetting to notify employees about policy/procedure changes, outcomes of investigations/discipline issues, or unsatisfactory behavior or work quality can be a costly slip-up.

#9: Accommodations

Mistake: failure to explore accommodations. "Accommodation" can be defined as "a determination in favor of the employee." Employers should explore accommodation options when an employee: has a disability, is pregnant, is called to active military duty or has a family member called to active military duty, or wants to engage in a religious observance/practice.

#10: Non-Compete Agreements

Mistake: unreasonable scope. Obviously, an agreement prohibiting an employee from working at any position in the same general industry forever and ever isn't going to hold water.

Mistake: lack of consideration. Legally, contracts are valid only if both sides give something. If the employee gives up their right to compete, the employer must also give something. Too often, the employer gives nothing, making the non-compete agreement invalid in a court of law.

Business Management Daily


Wednesday, May 23, 2012

Safety Investments Improve Performance and Productivity

Everybody knows investments in workplace safety and health prevent accidents and injuries. But a new study indicates that are other bottom-line benefits as well.


If you need some more ammunition to convince your top management and managers throughout your organization of the value of investing dollars and time in workplace safety and health, you'll be interested in a study commissioned recently by the New Zealand Department of Labour.

Labor officials challenged a team of researchers from Massey and Auckland Universities to answer this simple, but intriguing question:

If businesses invest in health and safety, how does this contribute to their performance and productivity?

According the Department of Labour's website (www.dol.govt.nz), researchers found "compelling evidence" of many potential benefits of the links between health and safety and performance and productivity, including:
  • Fewer injuries that stop people from working, interfering with production
  • Increased innovation
  • Improved quality
  • Enhanced corporate reputation
  • Lower costs to compensate workers for work-related injuries and illness
  • Improved staff recruitment and retention
Common Success Factors

 
The study also identified a number of common success factors in businesses that demonstrate the links between work quality and productivity including:

  • A high-quality working environment
  • Good levels of cooperation between management and employees
  • Work organization that gives employees challenges, responsibilities, and job autonomy
  • The development of new working methods and equipment to improve working postures and decrease the strain of physical work
  • Creative solutions for specific safety and health problems
  • A thorough analysis of the different production costs that can be directly or indirectly related to health and safety hazards (costs of incidents, loss of productivity and quality, and other production costs due, for example, to the use of inadequate materials)

Monday, May 21, 2012

Recruiting the Best Candidates

The best candidates out there are the ones that not only allow you to interview them, but they in turn interview you. They typically reached out to you first regardless of current job openings or not. They have great follow up and don't just send a resume for review. They go the extra step and call HR or travel to the office and come in to speak with someone. They have initiative.

They don't want to just choose a job with a company because they have values and understand what it takes to be successful. They want to make sure that your company will help support them in achieving the goals they have in mind both personally and professionally.

When having an interview with a candidate, don't sugar coat the challenges your organization faces. Be open and honest. Describe what the issues and problems and how it could be a challenge for the candidate. Ask him or her how they feel about those challenges.

Make sure to take note of their reaction(s) and what they say. This will indicate whether they are up for the challenge, feel they can contribute or maybe that they're about concerned.

If the candidates answers are broad and rehearsed then they didn't research the company, the industry or maybe even the position. Look for the *real answers and reactions.

Thursday, May 17, 2012

Lawsuit Case: Religious Discrimination

Taco Bell Operator Pays $27,000 to Resolve EEOC Religious Discrimination Lawsuit

Fayetteville Restaurant Fired Worker Over Religion-Mandated Long Hair, Federal Agency Charged

RALEIGH, N.C. – Family Foods, Inc., a North Carolina corporation that operates a chain of Taco Bell restaurants in eastern North Carolina, will pay $27,000 and furnish other relief to resolve a religious discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today.

According to the lawsuit, Christopher Abbey is a practicing Nazirite who, in accordance with his religious beliefs, has not cut his hair since he was 15 years old. Abbey worked at a Taco Bell restaurant owned by Family Foods in Fayetteville, N.C., since 2004. Sometime in April 2010, the company informed Abbey that he had to cut his hair in order to comply with its grooming policy. When Abbey explained that he could not cut his hair because of his religion, the company told Abbey that unless he cut his hair, he could no longer continue to work at its Taco Bell restaurant.

Such alleged conduct violates Title VII of the Civil Rights Act of 1964, which requires employers to attempt to make reasonable accommodations to the sincerely held religious beliefs of employees as long as this poses no undue hardship. The EEOC filed suit in July 2011 in U.S. District Court, Eastern District of North Carolina (Civil Action No. 5:11cv00394) after first attempting to reach a pre-litigation settlement through its conciliation process.

In addition to monetary damages, the two-year consent decree resolving the suit requires Family Foods, Inc. to adopt a formal religious accommodation policy and conduct annual training on Title VII and its prohibition against religious discrimination and retaliation in the workplace. Family Foods, Inc. will also post a copy of its anti-discrimination policy at all of its facilities.

“No person should be forced to choose between his religion and his job when the company can provide an accommodation without suffering an undue hardship,” said Lynette A. Barnes, regional attorney for the EEOC’s Charlotte District, which includes the Raleigh Area Office, where the original charge of discrimination was filed. “We are pleased that, in resolving this case, Family Foods is taking action to ensure that it fulfills its obligations toward its employees under federal law.”

Tina Burnside, supervisory trial attorney for the EEOC’s Charlotte District, added, “The EEOC will continue to litigate cases where employers fail to meet their obligations not to discriminate.”

The EEOC is responsible for enforcing federal laws prohibiting discrimination in employment. More information about the EEOC is available on its website at http://www.eeoc.gov/.

Wednesday, May 16, 2012

Post-Accident Procedures for CMV Incidents

The first steps taken following an accident involving a commercial motor vehicle are extremely important. Here's a quick review of post-accident procedures that can protect employers and drivers.


 
Employers who have trucks on the road should make sure their drivers know the proper procedures for handling accidents. Basic rules include the following:
  • Drivers should immediately stop their vehicle after an accident of any kind. They should never leave the scene of an accident.
  • Drivers should immediately activate flashers. If it’s possible to move the truck, it should be pulled off the road or as far to the side as possible to prevent further collisions.
  • If the driver is injured, he or she should remain in cab (unless necessary for safety) and wait for emergency medical assistance to arrive. Moving could cause further injury.
  • If the driver is uninjured, he or she should check the accident scene for others who might be injured.
  • Drivers should notify authorities, calling 911 or the highway patrol.
  • It's also important to take steps to prevent further collisions and injuries. Uninjured drivers should set out reflective triangles or flares to warn other traffic.
  • In some cases it may be necessary to deal with an emergency situation such as a fire or hazardous material spill. Drivers should check their vehicle to make sure no emergency situation exists.
  • Drivers should also try to assess any damage to the vehicle and/or the cargo.
Drivers should report the accident to their employer at the earliest opportunity, answer questions, and provide the following information:
  • Location of the accident
  • Description of the driver's condition—for example, OK or injured, able to continue driving, and so on.
  • Extent of damage to vehicle and/or cargo
  • Any assistance needed—for example, a tow truck or another truck to transfer cargo
Warning Devices

 
Warning devices such as flares or reflective triangles should be positioned properly to warn other drivers of an accident.

  • The first device should be positioned in the direction of approaching traffic, within 10 feet of the last vehicle involved in the accident, and on the traffic side. No flame-producing signal should ever be attached to any part of a truck or another vehicle!
  • A second device should be placed about 100 feet behind the accident scene, facing approaching traffic, and in the center of the lane or shoulder where the truck and other vehicles involved in the accident are stopped.
  • The third device should be placed about 100 feet in front of the accident scene and facing traffic approaching from the other direction.

Monday, May 14, 2012

Employees are protected from unfavorable treatment related to his or her race, skin color, national origin, gender, disability, religion, or age.
Workplace discrimination can occur during any phase of employment. The most common claims are related to either hiring or firing. However, discrimination extends beyond hiring and firing as it can and does occur in any facet of employment.
Examples of discrimination:Denying certain individuals employment
  • Denying certain employees compensation and/or benefits
  • Overlooking certain employees when issuing promotions
  • Restricting use of certain company facilities
It's important for employers not to treat individuals / employees differently based on legally protected personal traits. Take the time to train your staff to ensure compliance and fair treatment of all employees.
 
Trend highly recommends visiting the EEOC website to learn and understand the various types of discrimination prohibited by the laws. Click the link for details: http://www.eeoc.gov/laws/types/index.cfm

Thursday, May 10, 2012

Can You Access Employees’ Personal Devices at Work?

Legality of Accessing Personal Devices


Your company can manage the risks associated with BYOD (Bring your Own Device) by adopting policies and agreements that fit your risk tolerance, trust assessment, and regulatory context. However, the only way to guarantee your right to access all information on a device is to own the device. In 2010, the U.S. Supreme Court held that employers have the right to access all communications on corporate-issued devices.

However, the Court didn’t address a company’s right to access information on personal devices. Therefore, there’s inherent risk in a BYOD policy for employers who want to have access to all communications and data on personal devices used by their employees.

Mitigating Security Risks

The content of your BYOD policy (or your choice to forgo a policy) should be decided by thoroughly analyzing the following:
  • The sensitivity of the information your employees handle
  • The inherent security concerns in your industry
  • The legal regulations you face
  • Your ability to oversee and manage the use of such devices
If you decide to implement a BYOD policy, here are some important things to consider:

  • Initiate a “wipe” policy. Require your employees to download software that allows you to remotely access and wipe devices. That provides protection if devices are lost or stolen. Additionally, there are software programs that can sequester work-related information into a software “sandbox,” creating a virtual folder in the personal device.
  • Require written agreements. Once you locate software that fits your needs, have your employees sign a written agreement that discloses all risks associated with the software (such as information loss) and requires them to download it onto any device that will be used to access work-related information.
  • Make the privilege exclusive. Allow only certain employees to have the privilege of using personal devices (exclude personnel who frequently handle sensitive data or personally identifiable information). Further, limit the type of information that’s accessible from a personal device (e.g., e-mail).
  • Make device inspection a part of the exit interview. Have employees consent in writing to have their devices inspected at exit interviews. Also, obtain permission to remotely wipe the device of any terminated employee.
  • Don’t allow employees to store corporate information on personal devices. Have them sign a written agreement that they will not store any corporate information on their personal devices.
  • Require employees to produce their devices for inspection. Have them sign a written agreement that they will turn over their personal devices for inspection upon a legitimate request.
BYOD Bottom Line

 
Although dual-use devices have resulted in difficult legal and security issues for employers, you can mitigate the risks by implementing a properly crafted policy and using privacy software. However, because the law on this issue is not settled, before creating a BYOD policy you should contact an attorney to be sure that you fully understand all risks involved in such a policy.


From personal device rules to terminations to intermittent leave and accommodations, there’s a lot for your supervisors and managers to stay up on.

Wednesday, May 9, 2012

Exercise Excuses

May is National Physical Fitness & Sports Month, so it’s a good time to discuss the reasons why your employees don’t "get off the couch, and get active!" Offer them practical tips to overcome those excuses.
 
Undoubtedly, your employees know they should be exercising more. They've been hearing this since they were children competing for the President’s Physical Fitness Award that physical activity is good for them. But do they claim easier said than done? Do they promise to have the best of intentions but then not follow up? Unfortunately, intentions don’t burn calories! So what exactly are your employees' excuses for not exercising?

Here are five common barriers to exercising—along with possible solutions from the Weight-control Information Network (WIN), an information service of the National Institutes of Health:

1. I don't have time.
  • Give exercise the same priority you give brushing your teeth or taking a shower. You do those things to stay healthy, and exercise is just as important!
  • Schedule active chores every day, such as vacuuming, raking, or washing the car.
  • Make family time active with walks, ball games, bike rides, etc.
2. I'm too tired at the end of the day.

  • Incorporate exercise into your day. Take the stairs. Park at the far end of lots when running errands.
  • Find another time to exercise, such as before work or at lunch time.
3. It's boring.

  • Find activities you like. You're not obligated to use a treadmill—or to stay inside. Try a new sport. Get out in the fresh air.
  • Make it social. Plan activities with friends or an exercise buddy.
4. It's expensive.

  • Choose free exercise. Gardening, walking, dancing, shooting hoops, tossing a Frisbee in the park—these are all free and burn calories.
  • Look for discounts. Perhaps your community gym is cheaper than the national chains. Maybe your workplace offers discounted memberships.
5. No one I know exercises.

  • Lead by example. Get out there faithfully, and inspire your loved ones to get active, too!
Why It Matters

  • According to WIN, if you’re a male over the age of 40, a female over the age of 50, or have health conditions, such as heart disease, high blood pressure, diabetes, osteoporosis, or obesity, consult with your health professional before beginning an ambitious exercise program.
  • Meanwhile, you can start walking today.
  • Even 10 minutes of physical activity a day can improve overall health.

Tuesday, May 8, 2012

Better Management = Better Employees

If you fail to practice being a *manager to your employees then don't point the fingers just at them when they're not performing well. You have manager at the end of your title, or as you title, and with that comes the responsibility to train, motivate, develop, counsel and communicate with your staff. When you fail to do these things then you will lose respect, employee morale, positive performance and your just as much to blame if not the sole problem with why your staff is underperforming.
Step up and be a better manager and you'll find that the reward will be well worth it and definitely not a waste of your time! It is true, better managers create and maintain better employees.
So here are a few simple tips you should follow to become a better manager:
  1. Treat Employees the way you want to be treated.
  2. Say "Thank You" and recognize a good job.
  3. Get to know your employees. This makes them feel valued.
  4. Keep an Open Door Policy. If they're afraid to talk to you then you've failed.
  5. Ask for help! Just because your the "manager" doesn't mean staff can't help you.
  6. Follow the rules by setting an example. You can't tell them not to do something if you're doing it!
  7. Enforce the rules. If they know you won't follow up or discipline them then it'll only get worse.
  8. Set expectations up front and ensure follow up.
  9. Be consistent. Employees appreciate consistency and it allows them to be more accountable.
  10. DOCUMENT your actions! This is your best friend as a manager with reviews, counsels and terminations.
  11. No retaliation! Be professional at all times and don't allow emotional involvement to cause bad decisions.
Being a better manager is super easy and these tips can and should be followed by all managers. If you find that you could work on one or more of these areas then start today! You'll be surprised of the success.
Remember, better managers = better employees.

Wednesday, May 2, 2012

Charge Up Your Workers About Battery Safety!

Forklift batteries are the most common type of lead-acid rechargeable battery used in the workplace. However, injuries and death can occur in any workplace where batteries are charged and changed out to power a piece of machinery or equipment.
 
If your workers are involved with or around the process of changing out and charging these batteries, they should know that they are exposed to potential chemical and electrical burns and explosions, as well as the possibility of injuries from dropping heavy batteries.
 
Explain to your workers that batteries pose a hazard because:
  • They are very heavy, weighing as much as 2,000 pounds.
  • They contain corrosive sulfuric acid, which can spill when servicing or changing batteries.
  • Contact with battery cells can cause electrical short circuits that can burn unprotected skin.
  • When being charged, batteries can give off highly explosive hydrogen fumes.
Emphasize to your employees that if their job tasks include doing battery maintenance and inspection, they are exposed to the most severe hazards. For example, fires and explosions have occurred in battery-charging areas when undetected ventilation failures permitted the buildup of hydrogen gas. Explain to your workers what ventilation system is in place along with the inspection protocol. Also, describe the hydrogen detection alarm if your organization has one installed.

 
Train workers to follow these safe work practices when charging batteries:

  • Batteries should be stored in specially designed and designated areas. Charge batteries only in the designated battery-charging area.
  • Be especially cautious when maneuvering lift trucks in the battery-charging area. Puncturing a battery or charger with lift-truck forks could result in electrical shock or a spill of acidic electrolyte.
  • Do not smoke in the charging area.
  • Do not create or allow open flames, sparks, or electric arcs in battery-charging areas.
  • Know where the eyewash station and safety shower are located and how to use them.
Instruct your workers that when they're handling batteries, they must:

  • Make sure equipment for flushing and neutralizing spilled electrolytic solution is in place.
  • Check that protection equipment, such as fire extinguishers, is nearby and functional in case hydrogen gas becomes ignited.
  • Before moving any battery, check to make sure that all the vent caps are in place to prevent electrolyte from sloshing and spilling out when the battery is moved.
  • Properly position the truck and apply the brakes before attempting to change or charge batteries.
  • Use a lifting beam, battery cart, or equivalent material-handling equipment when lifting and transporting the battery.
When workers are charging batteries, they must:

  • Wear safety goggles designed for working with acidic liquids in case the electrolyte bubbles or sprays up.
  • Wear a face shield to protect the face from the electrolyte.
  • Wear neoprene or rubber gloves that resist the acid of the electrolyte and protect hands.
  • Wear a neoprene or rubber apron to protect clothing and skin from the acid.
  • Remove all metallic jewelry before beginning recharging.
  • Keep tools and other metallic objects away from the top of batteries. Do not lay metallic objects on top of batteries.
  • Always follow the recharger manufacturer's recommendations for attaching and removing cables and properly operating the equipment.
  • Unplug and turn off the charger before connecting or disconnecting the clamp connections.
  • Attach the positive clamp (+, usually colored red) to the positive terminal first, and then the negative clamp (–, usually colored black) to the negative terminal, keeping the proper polarity.
  • Make sure the vent caps are functioning.
  • Leave the battery (or compartment) cover(s) open to dissipate heat.
  • Turn off the charger if the battery becomes hot or the electrolyte fluid comes out of the vents. Restart charging at a lower charging rate.
  • Check the electrolyte level before recharging. Record the specific gravity with the hydrometer in the service log. Check the pilot cell.
  • Always pour concentrated acid slowly into water. Never pour water into acid.
  • Do not add water before recharging. Check the water level after charging. Add distilled water or deionized water (NOT tap water), if necessary, according to the water level indicator. Record data in service log.
  • Check the voltage. If the battery has sealed vents, do not recharge with a current greater than 25 amperes.
  • Check the indicator on the hour meter to see that the battery is fully charged.
This training is best conducted in the battery-charging area itself, if possible, so that you or a volunteer can demonstrate how to do all these tasks, including donning and fitting the required personal protective equipment (PPE).

 
Why It Matters

  • Battery changing and charging is dangerous work.
  • It is vital for workers to follow safe work procedures to prevent fires and explosions and wear PPE to prevent burns, serious injuries, and even deaths.
  • You must train them in the hazards and preventive measures.

Tuesday, May 1, 2012

Using Independent Contractors

Sometimes companies need to hire independent contractors to get certain jobs completed. However, you may be misclassifying one or more workers if you're intentionally hiring people and classifying them as independent contractors to avoid one or more of the following:
  • Employment taxes
  • Employee benefits
  • Overtime obligations
  • EEO Discrimination claims
  • Unemployment Insurance
There are three different tests employers can use to determine if their workers are properly classified:
  1. Common Law
  2. Darden Factors
  3. IRS Factors
Different audit agencies use the one they prefer but the fact is that they all essentially state the same things for determining proper classification.

 
The likely hood of being audited is relative to the number of contractors you use and for how long you use them. The bigger the number or longer the period in which they stay around to work on a job... the bigger the target.

 
Key Pointers for Employers:

  • Treat contractors as entrepreneurs, business people, not employees
  • Always use 1099's on independent contractors
  • Create, sign and keep a contract outlining the project details
  • Care only about the end product and avoid trying to control how and when they carry out their tasks
  • Do not train or discipline contractors
IF YOU TREAT THEM LIKE AN EMPLOYEE... they're an employee.