January, 2009


Change Is Here ... for us and also for some HR laws!

Yes there are a few changes you must know about and that is what I am talking about first this month. There are new minimum wages in some states, new immigration laws, new family and military leave laws, a new disabilities law and new forms! It is all covered in this issue.

Employee morale is also very important to maintain throughout all the changes that are happening, both good and bad! My feature article shows you some ways to do this without spending a lot of money. Some of the ideas presented can even help your employees save on their personal gas and food expense! Don't miss it!

I have skipped my quiz this month. The new laws will substitute for my usual mind exercises.

Here are the new laws:

New State Minimum Wages as of January 1, 2009 The hourly minimum wage in the eleven states below increased effective January 1, 2009. The federal minimum wage, currently $6.55 per hour, is scheduled to increase on July 24, 2009, to $7.25 per hour. In cases where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher wage rate.

Arizona – $7.25
Colorado – $7.28
Connecticut – $8.00
Florida – $7.21
Missouri – $7.05
Montana – $6.90
New Mexico – $7.50
Ohio – $7.30
Oregon – $8.40
Vermont – $8.06
Washington –$8.55


Americans with Disabilities Act (ADA)
Effective January 1, 2009, The ADA Amendments Act of 2008 (ADAAA) redefines who is considered "disabled" under the ADA and thus leads to a potentially larger number of "disabled" employees seeking accommodations and of those who may claim they were "regarded as" disabled in unfair treatment claims. (Note: The Americans with Disabilities Act (ADA) applies to businesses with 15 or more employees.) Highlights include:

  • Covered Individuals
    The number of individuals covered by the ADA will increase including those with:
    • Conditions corrected by medication (i.e. diabetes, epilepsy),
    • Conditions currently in remission, and
    • Conditions that are episodic.

  • Reasonable Accommodation and the Interactive Process.
    • Make sure job descriptions are current and relevant,
    • Maintain an on-going dialogue with employees who may have a disability that needs to be accommodated, and
    • Document any evidence and / or discussion about potentially providing reasonable accommodation.

Family Medical Leave Act (FMLA)
Effective January 16, 2009, new federal Family Medical Leave Act (FMLA) regulations make some significant changes to the interpretation of the Act.

The new rules serve two main purposes: (1) to provide clarity on several long-standing, challenging regulations and (2) to implement new FMLA leave available to military family members. (Note: FMLA applies to businesses with 50 or more employees.) Highlights include:
  • Release of FMLA Claims:
    Employers can safely include employee releases of past FMLA claims in severance and settlement agreements.

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  • Employer Notice Obligations:
    Employers are required to provide newly-hired employees with a general FMLA notice (which can be done through an Employee Handbook), an eligibility notice, a rights and responsibilities notice and a designation notice. The time period is also extended for employers to provide such notices from two business days to five business days.

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  • Employee Notice Requirements:
    An employee requesting FMLA leave must adhere to the employer's usual and customary call-in procedures for reporting an absence unless unusual circumstances exist.

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  • Medical Certification:
    There are new medical certification form requirements - one for considering an employee's own serious health condition and one for when an employee's request for leave to care for a family member with a serious health condition.

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  • Notification of Certification Deficiencies:
    If an employer determines that a medical certification is incomplete or insufficient, the employer must notify the employee in writing, state any need for additional information, and provide the employee seven days to remedy the situation.

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  • Clarification and Authentication of Medical Certification:
    In general, after giving an employee the opportunity to remedy any certification deficiencies, the employer may contact an employee's health care provider for purposes of clarification and / or authentication of the medical certification.

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  • Past Employment Eligibility:
    Employers must count an employee's non-consecutive prior service with the employer unless the break in service was generally seven years or more.

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  • Light Duty:
    Time spent performing light duty work does not count against an employee's FMLA leave entitlement. Also, if an employee is voluntarily working a light duty assignment, the employee is not considered on FMLA leave.

To prepare for the FMLA changes such as those noted above, an employer should at least:
  • Update Employee Handbook policies to reflect the new requirements. Also, be sure to review your call-in procedures and any notice requirements.

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  • Update your employer response forms, medical certification forms, and new forms to be utilized under the new service member provisions (discussed further in the following section).

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  • Train all members of Management about their responsibilities to effectively address situations regarding any employee with a medical condition.

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  • In addition, the regulations create new poster and notice requirements. According to the DOL, there was a new FMLA poster available in December. Check here for a free pdf format poster: http://www.dol.gov/esa/whd/fmla/finalrule/fmlaposter.pdf

California employers: note that in addition to the FMLA responsibilities, you have the California Family Rights Act (CFRA), the Pregnancy Disability Leave Act (PDL) and Paid Family Leave (PFL) which will impact the way you address and monitor requests for leaves from your employees. California also has state-specific regulations around spousal military leave which impacts employers of 25 or more. The California Family Military Leave Act took effect in October of 2007.


Military Leave
In line with the 2009 FMLA changes, keep in mind the National Defense Authorization Act for 2008 (NDAA), which was signed into law on January 28, 2008. Highlights include:
  • Leave Duration.
    An eligible employee may take up to 26 workweeks of leave during "a single 12-month period" to care for a seriously injured or ill service member. An employee may be eligible for Military Caregiver Leave if he or she is a spouse, child or parent of a service member or a service member's "next of kin."

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  • Multiple Leaves.
    An eligible employee may take more than one Military Caregiver Leave if the leave is to care for a different covered service member or to care for the same covered service member with a subsequent serious injury.

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  • Qualifying Exigency.
    Employers also must provide eligible family members 12 workweeks of leave for "any qualifying exigency" for events such as military events and related activities, childcare and school activities, and short-notice deployment.

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  • Qualified Employees
    Qualified exigency leave is limited to family members of reservists and retired members of the regular armed services or reserves on active duty or called to active duty status to support a contingency operation. (Note: Qualifying exigency leave is not available to family members of active service members of the regular armed forces.)

Exceptions. An eligible employee is generally entitled to a maximum of 26 weeks of Military Caregiver Leave and traditional FMLA leave in a "single 12-month period." For example, an eligible employee may, during "a single 12-month period" take 16 weeks of military caregiver leave to care for a covered service member and 10 weeks of FMLA leave to care for a newborn.

Source: NetPay Services © 2009


State Immigration Updates
Here is a quick update on some recent information on certain state activities:
  • South Carolina
    State contractors with 500 or more employees must complete special verification of newly-hired employees by using DHS' E-Verify system or by reviewing a qualifying drivers' license starting January 1, 2009. South Carolina employers with 100 or more employees must perform the special verification starting July 1, 2009. The South Carolina Department of Labor, Licensing and Regulation conducted training on the South Carolina Illegal Immigration and Reform Act in December 2008 and January 2009 across the state. /li>
     
  • Arizona
    Perhaps the broadest of all state laws, the Legal Arizona Workers Act (LAWA) became effective on January 1, 2008, and requires all employers within the state to use E-Verify. LAWA provides for the suspension and revocation of the business licenses of Arizona employers that knowingly employ illegal immigrants and, although there is no specific penalty for the mere failure to use E-Verify, the use of E-Verify does serve to insulate the employer from sanctions. The Arizona law has withstood a court challenge and an effort to weaken the law (Proposition 202) was voted down by Arizona voters on Election Day. Thus, the broadest state E-Verify law is still valid.

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  • Mississippi
    Passed in March 2008, the Mississippi Employment Protection Act (S.B. 2988) requires employers to participate in E-Verify. On July 1, 2008, all Mississippi agencies and political subdivisions, all public contractors and private employers with 250 or more employees became subject to the E-Verify requirement. On July 1, 2009, private employers with 100 or more employees will also become subject to the requirement.
As we proceed through 2009, all employers, particularly multi-state employers, will need to be mindful of state and federal changes that impact immigration compliance requirements.

Source: Ogletree Deakins Immigration E-Authority (c) 2009

You may notice a theme here - the Department of Homeland Security's E-Verify system is becoming a star player in the employment verification process. Effective January 15, 2009, all contractors and subcontractors who work under federal contract must perform the E-Verify procedure on every new AND existing employee. If this affects your business or a business owner you know, let MJ Management Solutions, Inc. help that business comply with this new regulation. We are an authorized Designated Agent and can handle this sometimes complex and always time-consuming process for you. Call or e-mail us for more information.

That's it for laws ... now to my main article on morale!




Boost Morale While Cutting Costs

We've likely all been affected by the economy. Many of our businesses are cutting costs and employees too. But is it consequently bringing down the morale of your company? While it's hard enough to make ends meet on a personal level, businesses are feeling the crunch and the trickle-down effect is outrageous. Not all hope is lost though. Believe it or not, with the right attitude, companies can cut costs without sacrificing morale. Here are a few ideas for you to try:

  1. Telecommuting
    For many, the first impression of telecommuting is that it will give your employees the opportunity to sit around at home while pretending to do work. This couldn't be farther from the truth. In all actuality it improves productivity 10-20% when employees telecommute 1-3 times a week. For more information on telecommuting, read our article on the topic.

  2.  
  3. Company Parties and Events
    Parties are always a great way to bring the office together. It gives people a chance to mingle with their co-workers and superiors and appreciate each other outside of work. Unfortunately, company sponsored parties can be a major expense with catering and securing a venue, but they are really too important to cut out completely. Try throwing a pot luck lunch or dinner in the office. Everyone loves to share recipes and be told that they're a great cook, so this really works out for everyone.

    Start A Lunch Club!
    Another way to save money and motivate your team at the same time is to start a lunch club. Here's how it works:

    Depending on the size of your office, you choose a certain number of people to bring dishes to feed the rest. I suggest one person per 10 in the office. So if you have a 30 person office, 3 people should bring in dishes to feed everyone else. You can do this as often as you'd like: 1 day a month or a week, 3 days or every day. Rotate between the folks in the office that are responsible for bringing in a dish. It's a great way for the employees to save money and get to know one another as well.
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  5. Conferencing
    If you haven't discovered conferencing services yet, you're wasting tons of money on business travel. Teleconferencing and webconferencing save time, money and a lot of undue stress that comes with travel. It's almost always cheaper than purchasing plane tickets, hotel and car accommodations and when you add in tips, tolls and food, it's a steal.

    Imagine never leaving your office and still maintaining a relationship with clients and co-workers located outside of the office. Even presentations are a snap with webconferencing; the easy web interface allows your participants to view exactly what you're viewing. You can also record your conversations for easy retrieval. While you aren't face to face with your client or co-worker, installing a web cam allows you to see each other wherever you are in the world.

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  7. Shorter Work Week
    I know that this seems silly to some of you as the company would lose an entire day of work. But, that's not entirely true. A shorter work week can be done a few ways:
    • Rotate employees to take every other Friday (or Monday or whatever day) off
    • Every employee takes every Friday (or Monday or whatever day) off
    • Give each employee their choice of one day off each week

    It's totally up to the company as to how they want to do it, but the employees can work extra hours each of the 4 days they are in the office if that helps keep things productive. This will save the workers gas money going to and from the office. And the company will save as well - on parking, utilities, etc. Employees usually jump at this type of opportunity so it's a great way to boost morale.

    NOTE to California employers: remember that overtime is applicable for time worked over 8 hours in a single work day. So, any non-exempt employee on a short week who works any extra hours on one of those days, may incur overtime.


Cutting costs and boosting employee morale aren't necessarily two things that work well together. But both are extremely necessary to maintain a healthy and profitable work environment. Maintaining the fun in the office is essential simply because it promotes motivation. It's a tough time for everyone but if you build a stronger team, you'll all push through together.

Source: Libby Huffman - © Copyright 2009 OfficeArrow, LLC.


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ABOUT MJMS, INC.

President and Principal Consultant: Margaret Jacoby, SPHR

Margaret Jacoby has more than 25 years of Human Resources and professional management experience in a variety of industries. She has designed human resources infrastructure and implemented systems to ensure compliance with state and federal employment laws. She has directed high quality human resources functions for small and emerging businesses, and served as an external consultant to a wide range of diverse organizations, including non-profits.
 
Her work has included: 

  • Conducting H.R. Needs Assessments
  • Drafting employee handbooks and policy manuals
  • Conducting job analysis and developing position descriptions
  • Conducting on-site compliance audits
  • Counseling management on progressive discipline
  • Drafting and review of employee disciplinary actions
  • Providing mediation in employee/employee conflict
  • Training employees/supervisors/managers in the implementation of human resources systems and policies such as Sexual Harassment
  • Conducting workshops for business owners on H.R. compliance issues.
 
Ms. Jacoby has earned the nationally-recognized certification of Senior Professional in Human Resources (SPHR) from the HR Certification Institute, Society for Human Resource Management (SHRM).
 
Ms. Jacoby's professional affiliations include:
  • Professionals in Human Resources Association (PIHRA)
  • Society for Human Resource Management (SHRM)
  • National Association of Women Business Owners (NAWBO), Los Angeles and Phoenix
  • California Chamber of Commerce

  • Arizona Small Business Association (ASBA)
  • Long Beach Community Business Network (LBCBN)
  • Institute for Management Consultants (IMC)

The information contained in this newsletter is provided as general information and is not a substitute for legal or professional advice. The information is provided by MJ Management Solutions, Inc. and while we endeavor to keep the information up-to-date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the newsletter or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.




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margaret@mjms.net •  MJ Management Solutions, Inc.