February 2020 Issue of HR Professionals Magazine by Cynthia Thompson

Volume 10 : Issue 2

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Payroll and HR Technology Issue

Payroll

Protections

Daily Pay for Your Employees

DOL Final Rule on Benefits and Perks That Wonâ&#x20AC;&#x2122;t Impact the Regular Rate of Pay

Jennifer Golynsky,

SHRM-SCP, SPHR President, Charlotte Area SHRM

SHRM Advocacy@Work Conference in Washington, DC, March 15-17

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of employers plan to update or upgrade their HR technology in 2020 www.HRProfessionalsMagazine.com Editor Cynthia Y. Thompson, MBA, SHRM-SCP, SPHR Publisher

The Thompson HR Firm, LLC Art Direction

Park Avenue Design Contributing Writers Janell Ahnert Jared Alexander Daniel Berry Bruce E. Buchanan William Carmichael John Daniel Harvey Deutschendorf Aris Federman Brad Federman LeeAnn B. Foster Trish Holliday Lucinda Kenning Brian Hutchens Pete Isberg Christopher M. Lewis Rhonda P. Marcucci Bianca A. Meador Jeanniey Mullen Erin Haynes Reed Cristie Travis

Features

4 note from the editor 5 Profile of Jennifer Golynsky, SHRM-SCP, SPHR

14 Patchwork and Divide: LGBTQ in the Workplace 16 Ten Reasons HR Should Background Check Current Employees 22 Gain a Competitive Advantage By Using the L.P.L. Model 32 Book Look – Attention Management: How to Create Success and Gain Productivity Every Day 36 Love @Work! Yes, It’s Okay. 41 University of Memphis Top Educational Programs for HR Professionals 43 Congratulations to These Recently Certified HR Professionals! 46 Five Ways to Find an Emotionally Intelligent Mentor 48 WGU’s Online Bachelor’s and Master’s Degrees Fully Aligned with SHRM Curriculum

Payroll and HR Technology

8 Don’t Become a Boiled Frog – Becoming More Agile

12 In Perfect Focus – Why 2020 Will Be a Year of Rapid Growth for the Daily Pay Industry 17 State of the Art Compensation Management Contact HR Professionals Magazine: To submit a letter to the editor, suggest an idea for an article, notify us of a special event, promotion, announcement, new product or service, or obtain information on becoming a contributor, visit our website at www.hrprofessionalsmagazine.com. We do not accept unsolicited manuscripts or articles. All manuscripts and photos must be submitted by email to Cynthia@hrprosmagazine.com. Editorial content does not necessarily reflect the opinions of the publisher, nor can the publisher be held responsible for errors. HR Professionals Magazine is published every month, 12 times a year by the Thompson HR Firm, LLC. Reproduction of any photographs, articles, artwork or copy prepared by the magazine or the contributors is strictly prohibited without prior written permission of the Publisher. All information is deemed to be reliable, but not guaranteed to be accurate, and subject to change without notice. HR Professionals Magazine, its contributors or advertisers within are not responsible for misinformation, misprints, omissions or typographical errors. ©2020 The Thompson HR Firm, LLC | This publication is pledged to the spirit and letter of Equal Opportunity Law. The following is general educational information only. It is not legal advice. You need to consult with legal counsel regarding all employment law matters. This information is subject to change without notice.

18 Evaluating and Selecting Best-Fit Solutions for Complex Talent Management Needs 20 Payroll Protection: Seven Tips to Source Secure Providers

Employee Benefits

21 Living Your Best Life Means Having Life Insurance 24 Choosing the Optimal Contribution Level for Your Pension Plan 30 Employers Can Do Something About Hospital Medical Errors 34 2020 Financial Benefits Trends for Your Employees’ New Year and Beyond …

Employment Law 6 Wimberly Lawson’s Tennessee Workers’ Compensation Law and Practice

10 DOL Final Rule – Benefits and Perks That Won’t Impact the Regular Rate of Pay 26 How the 2020 National Defense Authorization Act Impacts Employers 28 Pregnancy Discrimination – Helping Ensure Your Company’s Accommodation Policies Comply with Title VII & the ADA 44 Seven Undocumented Employees Terminated at Trump Winery

Industry News 7 SHRM-Atlanta SOAHR 2020 Conference March 23-25

9 SHRM Advocacy @Work Conference in Washington, DC March 15-17 33 Best of Leadership Summit 2020 in Louisville, KY March 4 38 GMEBC January Luncheon in Memphis January 9 39 ARSHRM 2020 HR Conference & Expo in Rogers, AR April 1-3 40 SHRM-Memphis HR Connect January 21 42 TN SHRM Strategic Leadership Conference in Nashville April 17 43 Affordable Online SHRM-CP | SHRM-SCP Certification Exam Prep Class April 13 March issue features Profiles of Rising Stars from Chambers USA and Super Lawyers Labor and Employment Law – New Legislation and Changes Highlights from SHRM Advocacy @Work Conference in Washington, DC March 15-17 The March issue will be distributed at the SHRM Advocacy @Work Conference and the SHRM-Atlanta Annual Conference March 23-25 Deadline to reserve space is February 15

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W a note from the editor

WE ARE VERY EXCITED ABOUT OUR FEBRUARY ISSUE. We have some fantastic articles about the hot topics in HR technology including an article on daily pay; one of the hot new benefits, and payroll protections. There is also an excellent article on new HR trends and their impact, plus 2020 top financial wellness trends. In addition, we have a very informative article on hospital safety grades you don’t want to miss. And since it’s February, we have an excellent article on love at work. We are honored to have Jennifer Golynsky, SHRM-SCP, SPHR, President of the Charlotte Area SHRM Chapter, on our cover. She has served in many SHRM voluntary roles both in Charlotte and Atlanta. Jennifer is head of Human Resources of SERC Reliability Corporation and, along with her team, is responsible for all facets of Human Resources for the organization. Her current focus is on supporting SERC’s Commitment to Culture program, internal coaching and employee success. Please mark your calendar and plan to join me for one of SHRM's most exciting and educational annual conferences, Advocacy @Work, formerly the SHRM Employment Law & Legislative Conference, held in Washington, D.C. March 15-17. I love visiting Capitol Hill with the SHRM Advocacy Team and meeting with our legislators about

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the issues impacting our workforce! I highly recommend that you join your state's SHRM A-Team and get involved! See Page 9 for details! We will bring you Facebook Live coverage. To ensure that you receive our live broadcasts, all you have to do is LIKE our Facebook page. You will receive instant notifications. Save the Date – February 27, the date for our monthly complimentary webinar sponsored by Data Facts. You will earn 1.00 SHRM PDC and 1.00 HRCI recertificaton credit. Watch your email for your invitation. If you are not receiving an invitation, please go to our website, www.hrprofessionalsmagazine.com, and subscribe to our digital issue. You will also receive breaking news updates that impact HR as they occur.

Get certified in 2020!

cynthia@hrprosmagazine.com

Jennifer on the cover

GOLYNSKY

Jennifer Golynsky, SHRM-SCP, SPHR President of Charlotte Area SHRM Jennifer holds an MPA from the University of North Carolina at Chapel Hill, where she also earned her undergraduate degree in Public Policy Analysis.

Prior to becoming President of Charlotte Area SHRM (CASHRM), Jennifer served as President- Elect and Vice President of Member Education and Certification. She also served as chair of the strategic interest group supported by CASHRM that provides programming for HR professionals in the recruitment and staffing space. While in Atlanta, Jennifer served as an ambassador to new members of SHRM-Atlanta. Jennifer is a certified coach for DISC + Values through Institute Success, a certified coach, levels I & II for the Harrison Assessment, a certified mentor in Emotional Intelligence and holds a Six Sigma Green Belt. She has presented at the North Carolina International Personnel Management Association’s semi-annual conference and is also their Past President and former Southern Region Program Chair. Additionally, she has presented at the National Association of Development Organizations’ annual conference and has facilitated strategic planning sessions for several local nonprofit organizations. Jennifer currently serves as the Vice Chair of the Mecklenburg County Human Resource Advisory Committee in the second consecutive three-year appointment to the committee by the Mecklenburg County Board of Commissioners. Jennifer is head of Human Resources of SERC Reliability Corporation and, along with her team, is responsible for all facets of Human Resources for the organization. Her current focus is on supporting SERC’s Commitment to Culture program, internal coaching and employee success. SERC’s mission is to reduce risks to the reliability and security of the electric grid for today and for the future. Jennifer also has previous experience in the utility industry, having served as head of HR for MEAG Power (Municipal Electric Authority of Georgia), which is based in Atlanta and is a member entity of SERC. Prior to joining SERC, Jennifer served as the Director of Human Resources for W.K. Dickson & Co, Inc., a multi-disciplined consulting firm specializing in community infrastructure solutions. She was responsible for all facets of human resources for employees in eleven offices across four states. Along with her passion for coaching and development, Jennifer has tremendous enthusiasm for understanding policy and benefits. She maintains a life and health Insurance license to assist with benefits selection, management and administration while partnering with her company’s broker to provide comprehensive benefit offerings. Jennifer finds great satisfaction in applying this knowledge to provide the best in class policy, practices and benefits programs for employees 

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Tennessee Workers’ Compensation Law and Practice The Tennessee workers' compensation lawyers of Wimberly Lawson Wright Daves & Jones, PLLC, advise our business clients how to defend against their workers' compensation claims. Our attorneys always remain abreast of the latest developments in Tennessee's workers' compensation law, allowing the firm to provide our clients with sound legal advice. At Wimberly Lawson, our Tennessee workers' compensation lawyers work exclusively with employers and Human Resources managers to develop creative solutions to their workers' compensation related issues, such as: ● Cost Reduction Programs ● Work Comp Supervisory Training ● Litigation Defense

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The Tennessee workers' compensation lawyers of Wimberly Lawson understand the challenges an employer faces in a workers' compensation claim. Our attorneys provide aggressive representation, and our reputation for integrity, coupled with our concern for your bottom line, ensures your best interests will be protected. Respectfully,

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Donâ&#x20AC;&#x2122;t Become A Boiled Frog By JOHN DANIEL

Many of us have heard the parable of the boiled frog. If you drop a frog into a pot of boiling water, it will jump out. But if you put a frog in warm water and slowly bring it to a boil, the frog will not sense the danger until it is too late. Consequently, the frog is boiled alive. While modern science has challenged the premise of the 19th century experiments that created the tale, the lesson of the boiled frog lives on. It has become a metaphor to remind us to be aware of the impact of gradual change. Our brain is actually wired to sense and react to sudden and dramatic change. When it senses danger neurons fire, neurotransmitters are released and we find the focus and energy to save the day. It is the incremental, almost imperceptible changes that creep up on us and get us in trouble. How do human resources professionals avoid becoming boiled frogs? First, we must become proactive in monitoring and reflecting on the long term forces that are impacting our businesses and our profession. In this article I focus on three trends that have been impacting us for some time and may be accelerating. FROM

Periodic performance evaluation

Ongoing, real time performance coaching

Structured learning

Constant learning

Hierarchical/Vertical organizations

Agile, team oriented work

Performance Coaching Many companies have eliminated performance ratings and some are moving completely away from annual performance reviews. For decades our profession was founded on a belief that annual performance evaluations were key to company performance. However, over the last decade, research in neuroscience and cognitive psychology has shown that evaluation can have a powerful negative effect on employees. Evaluation puts our brain in a threat state and therefore reduces our ability to learn, solve problems and think creatively. On the other hand, well designed performance coaching improves confidence and skills and leads to improved productivity and performance. Look for a continuation of the trend away from annual reviews to periodic check-ins and away from ratings, with a focus on past performance, to high quality coaching conversations focused on the future. Evaluation still has an important role in managing our employees but it should be a separate process and tied to the compensation and reward systems.

Constant Learning In my early days in human resources, almost all training occurred in a classroom setting. The learning experience was trainer led, away from the office and conducted during specific time frames. With the introduction of technology, more training has been moved online. New learning delivery models like manager led facilitation, learning communities and tools like learning maps have transformed training delivery. In the last decade, research in neuroscience has led to discoveries on the role of the hippocampus and the neurotransmitter dopamine on learning and retention. A key finding of this research is that brief bursts of focused attention and spacing, or distributing learning over time, are important for high impact learning. In summary, look for acceleration of the trend in self-paced learning and the increased use of technology like mobile learning apps and virtual reality. 8

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Becoming More Agile The growth of knowledge is exponential. It is believed that until 1900 human knowledge doubled approximately every century. In the twentieth century knowledge doubled every twenty five years. Today, knowledge is doubling every year and, in some specific technology areas, every twenty four hours. This growth in knowledge is forcing specialization and sub specialization at unprecedented levels and is forcing a rethinking in the way we organize work. In the past, in large organizations, most knowledge rested at the top. Hierarchy and top down decision making worked well. Today a leader is not the one who knows the most but one who facilitates a team of experts and specialists to discover the best result. Traditional vertical organizational structures have the benefit of organizing work effectively and creating career paths and learning synergies, but they slow down decision making and stifle creativity. In a world of vast knowledge and specialization, the key to organizational success is to push decision making down in the organization and organize work around teams that cross the organization horizontally. For example, product development happens with a team made up of product, marketing, technology, legal etc. The team comes together, completes the task then disperses. This way of working is already the norm in many organizations. Look for it to continue to expand as the predominant way of working. In the past few decades, the world of IT has developed and refined a method of software development called Agile. Its success in improving the speed and quality of software has inspired the spread of agile outside of IT and across the organization. Agile is both a mindset and formal method of working. The implication for human resources are profound and beyond the scope of the article. One example is HRIS architecture which is organized around hierarchies, not teams. In organizations experimenting with Agile, HR professionals are struggling with how to place, track and monitor talent. Our current systems limit flexibility and will need to adapt. The underlying forces are powerful and I expect all of us will soon be speaking of scrums, sprints, stand ups and the rest of the languages and tools of Agile.

In Conclusion The three trends mentioned above are only a few of many. HR professionals need to be proactive and intentional about monitoring the forces impacting us or else be overwhelmed by them. In other words, be careful not to become a boiled frog.

John Daniel, Chief HR Officer First Horizon jdaniel@firsthorizon.com www.firsthorizon.com

MARCH 15-17, 2020 | WASHINGTON, DC

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EVENT HIGHLIGHTS OPENING ADDRESS

OFF-THE-RECORD FIRESIDE CHAT Monday, March 16, 5:00 - 6:15 PM

No media, no press. Just seasoned interviewer Steve Clemons, editor-at-large for The Hill, and three executives from top companies candidly sharing their firsthand experience managing the complexities of employees who want to express themselves on controversial issues.

EUGENE SCALIA Secretary, U.S. Department of Labor

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STEVE CLEMONS

JOCELYN MOORE

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Executive VP Communications and Public Affairs NFL

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HOLLY TYSON

Corporate VP U.S. Government Affairs Microsoft Corporation

Former CHRO Dickâ&#x20AC;&#x2122;s Sporting Goods

DOL Final Rule:

Benefits and Perks You Can Offer to Your Employees that Won’t Impact the Regular Rate of Pay

By BIANCA A. MEADOR

December 12, 2019, the U.S. Department of Labor (DOL) announced a “Final Rule” that will allow employers to more easily offer perks and benefits to their employees. The DOL’s announcement codifies many of the changes that it proposed to the “regular rate” regulations earlier this year. The announcement marks the first significant update to the regulations governing the regular rate requirements under the Fair Labor Standards Act (Act) in over 50 years.

The Regular Rate of Pay The “regular rate”, which may not always be the same amount as the employee’s hourly pay rate, determines how much nonexempt employees covered by the Act will receive in overtime pay (the Act generally requires that overtime pay be at least one and one-half times the regular rate for time worked in excess of 40 hours per workweek). The regular rate includes all remuneration for employment with certain exceptions. Regular rate requirements define what forms of payment employers must include and may exclude in the regular rate calculation for purposes of determining an employee’s overtime rate of pay. The regular rate generally includes all hourly wages and salaries for nonexempt workers, most nondiscretionary bonuses, shift differentials, on-call pay, and commissions. It excludes health insurance, paid leave, holiday, discretionary bonuses, and certain gifts. Even though the Act does not require employers to pay its employees on a weekly basis, calculating an employee’s regular rate and overtime pay generally must be done on an individual workweek basis.

Clarifications Made by the Final Rule The Final Rule focuses on clarifying whether certain kinds of benefits and perks must be included in the regular rate. These changes come after, according to the DOL, many employers were reluctant to offer more modern perks like gym memberships, employee discounts on retail goods and services, and tuition reimbursement out of apprehension that the cost of administering these programs would be considered part of the regular rate calculation. Instead of risking costly lawsuits, many employers chose not to offer these competitive benefits. The DOL hopes the Final Rule will allow employers to more easily offer perks and benefits to all of their employees without the uncertainty surrounding the calculation of the regular rate for those nonexempt employees. Additionally, the Rule is intended to reduce the risk of litigation and enable employers to offer these additional perks to their employees. These changes were necessary as compensation practices have drastically changed over the past 50 years. First, employee compensation packages now often include non-wage benefits or perks. For example, many employers offer various wellness benefits, but often are unsure as to whether these benefits should be included in calculating the regular rate. Additionally, the 10

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laws and practice concerning those more traditional work-place benefits have evolved over the decades. For example, instead of providing separate paid time off to its employees for vacation and illness, many employers now combine these and other types of leave into paid-time off plans. The Final Rule settles the dispute that these payments to employees for their unused leave time is excluded from the regular rate. In addition, numerous state and local governments have recently passed laws requiring employers to provide paid sick leave to their employees and have implemented scheduling laws which require penalty payments to employees when employers utilize certain scheduling practices. It was unclear whether these benefits affected regular rate calculations under the Act. The Final Rule updates the regulations to confirm paid sick leave and scheduling penalties need not be included in regular rate calculations.

Excluded Benefits under the Final Rule In sum, the Final Rule confirms the following benefits can be excluded from the regular rate: • The cost of providing certain parking benefits, wellness programs, onsite specialist treatment, gym access and fitness classes, employee discounts on retail goods and services, certain tuition benefits (whether paid to an employee, an education provider, or a student-loan program), and adoption assistance (so long as these benefits are not tied to an employee’s hours worked); • Payments for unused paid leave, including paid sick leave or paid time-off; • Payments of certain penalties required under state and local scheduling laws; • Reimbursed expenses including cellphone plans, credentialing exam fees, organization membership dues, and travel, even if not incurred solely for the employers benefit; and clarifies that reimbursement that do not exceed the maximum travel reimbursement under the Federal Travel Regulation System or the optional IRS substantiation amounts for travel expenses are per se “reasonable payment”; • Certain sign-on bonuses without claw-back provisions; • The cost of office coffee and snacks to employees as gifts; • Discretionary bonuses (such as “employee-of-the-month bonuses or bonuses for overcoming stressful or difficult challenges), as long as both the fact that the bonus is to be paid and the amount are determined at the sole discretion of the employer, if the bonus occurs at or near the end of the period to which the bonus corresponds, and the bonus is not paid pursuant to any prior agreement. (Neither the label nor the reason the bonus is paid conclusively determines whether a bonus is in fact discre-

tionary. The Final Rule provides specific examples of the types of bonuses that can be excluded as discretionary, but the DOL continues to remind employers that the determination remains very fact-specific and that the standard for excluding a bonus from the regular rate remains high.); and • Contributions to benefit plans for accident, unemployment, legal services, or other events that could cause future financial hardship or expense. Employers may now safely provide these benefits to non-exempt employees without the concern that the regular rate should include these benefits.

Additional Changes Made to Regulations Surrounding Rate of Pay In addition to the above, the DOL’s Final Rule makes several changes to the existing regulations. First, the Rule eliminates the restriction that “call back” pay and other payments similar to call-back pay (such as “clopening” pay, “right to rest” pay, and “predictability” pay), as mandated by several state and local laws, do not need to be “infrequent or sporadic” to be excluded from the regular rate, but reiterated that these payments must not be so regular that they are essentially prearranged. However, by contract, the DOL confirmed that “on call” pay for employees who are not called in to work, but are scheduled for an on-call shift, is part of the regular rate if the payment are “compensation for performing a duty involved in the employee’s job.” Second, the Rule updates the regulation on “basic rate” (an alternative to the regular rate under specific circumstances). Under the current regulations, employers who make use of an authorized basic rate may exclude from the overtime compensation any additional payments that would not

increase total overtime compensation by more than $0.50 a week on average for overtime workweeks in the period for which the employer makes the payment. The Final Rule updates this regulation to change the $0.50 limit to 40% of the higher of the applicable local, state or federal minimum wage. The previous regulatory landscape left employers uncertain about the role that perks and benefits play when calculating the regular rate of pay. The Final Rule clarifies which of these perks and benefits must be included in the regular rate of pay as well as which perks and benefits an employer may provide to its employees without being required to include them in the regular rate of pay.

Final Rule Encourages Additional Benefits and Perks The DOL expects that the implementation of the Final Rule will finally encourage employers to start providing certain benefits to their employees that they may presently refrain from providing due to apprehension about potential overtime consequences, which in turn might have a positive impact on workplace morale, employee health and wellness, employee compensation, and employee retention. The Final Rule was published on December 16, 2019. It is contained in the Code of Federal Regulations (29 CFR § 778) and took effect January 15, 2020.

Bianca A. Meador, Attorney Martenson Hasbrouck & Simon LLP bmeador@martensonlaw.com www.martensonlaw.com

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In Perfect Focus: Why 2020 Will Be A Year of Rapid Growth for the Daily Pay Industry By JEANNIEY MULLEN

here was a time when the daily pay benefit was a foreign concept, even among HR professionals. The DailyPay team would attend conferences and be met with blank stares when sharing about the services we provide. Weâ&#x20AC;&#x2122;d hear all kinds of dissenting arguments about how this benefit would solve nothing, or even that it would further enable the supposed financial irresponsibility of our users. However, as time has gone on and the positive effects of this benefit have been proven across many income levels and industries, the power of daily pay is becoming much more widely recognized. With the right provider, this mutually beneficial offering comes at no cost to the employer, but it has countless positive results for companies and their employees.

Payroll professionals are calling the daily pay benefit the biggest disruptor to the payroll industry since direct deposit 50 years ago, and we absolutely agree.

Here are my predictions for how the daily pay industry will continue to evolve in 2020 and beyond.

Partnering with even more best-in-class employers In 2020, we foresee that companies will continue to adopt the daily pay benefit as a solution to decrease turnover rates, increase employee 12

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engagement and circumvent wage stagnation. Fortune 500 companies and other household names will continue to make DailyPay a part of their benefits package, with companies such as Mall of America and Six Flags coming on board in 2019. As the early adoption phase is coming to a natural close, providing a daily pay benefit will become a must-have in order to stay competitive, especially in the quick-service restaurant, home healthcare and retail industries. Best-in-class companies operate best in class, and the executive leaders of these organizations know they need to innovate in order to stay competitive in todayâ&#x20AC;&#x2122;s labor market. By leveraging a cutting-edge benefit like daily pay, they can support financial wellness for their employees without spending a penny. Not only do we foresee many more employers implementing a daily pay benefit, but we also see more employees enrolling in this benefit. In 2020, DailyPay is aiming to achieve 40% employee adoption within each of our partner companies. We believe that positive word of mouth from coworkers, increased consumer trust in this benefit the longer it is on the market, and a commitment to innovation to stay ahead of our industry competitors will help us achieve this goal. The daily pay benefit was created to better the financial wellness of hard-working Americans, and we aim to help as many employees as possible.

Continuing to receive support and protection from regulators The role of regulators is and always has been to protect consumers from predatory practices. These regulators are smart, savvy and innovationfriendly. We predict that in 2020, they will continue to uphold existing regulations to separate the predatory payday lending industry from the daily pay industry. They will not allow consumers to fall prey to neo-payday lenders attempting to position themselves as daily pay benefit providers. While daily pay benefit providers enable employees

to access their earned wages before payday, these neo-payday lenders require monthly subscription fees, inactivity fees, â&#x20AC;&#x153;tippingâ&#x20AC;? for the service, and other predatory practices that take advantage of the financially disadvantaged. Regulators will also continue to ensure that daily pay benefit providers structure their technology in a way that protects child support payments and other wage garnishments, as DailyPay does.

Providing premier service to employers and employees As additional daily pay benefit solutions become available, employers will place more emphasis on the quality of service rendered when choosing a provider. This will motivate daily pay benefit providers to increase the quality of their services, both to the employers and to their employees, as new precedents are set for implementation speed and efficiency, post-implementation support, customer service and co-branding opportunities.

Moving forward with a clear vision It is inevitable that the daily pay benefit will continue to grow in 2020. Rapid adoption of this new technology will be fueled by employer competition and employee demand. Payroll professionals are calling the daily pay benefit the biggest disruptor to the payroll industry since direct deposit 50 years ago, and we absolutely agree. While DailyPayâ&#x20AC;&#x2122;s original mission was to help employees living paycheck to paycheck have more financial security, that mission is evolving to change the quality of the pay experience for every single working American. As technology continues to make everything instantly available to consumers, it should come as no surprise that something as integral as pay should continue to evolve with the times.

Payroll companies will continue to announce their plans to participate in on-demand wage access, which illustrates how broad the market interest is for this benefit. As the market becomes increasingly saturated with providers, payroll teams will be able to push back on the implementation of any systems that require extra labor on their part, heightening the competition for premier service and raising product standards.

Jeanniey Mullen Chief Innovation and Marketing Officer DailyPay, Inc.

The Most Compliant Daily Pay Benefit DailyPay is the pioneer in providing employees instant access to earned wages proven to reduce turnover, support recruitment and increase engagement.

1.9X

Almost double the applicants for job ads that offered daily pay

Employee Satisfaction 87% increase in employee satisfaction

Reduce Turnover 41% reduction in turnover

We Work with Best-In-Class Employers

www.dailypay.com

HR@dailypay.com www.HRProfessionalsMagazine.com

Patchwork

and Divide:

LGBTQ in the Workplace

By BRAD and ARIS FEDERMAN

Do your company’s policies adequately protect and support your LGBTQ employees? If they didn’t, would you know? Why should you care? A company’s efforts in protecting and supporting their LGBTQ employees may inadvertently parallel the national conversation about federal LGBTQ protections; which means misconceptions about the degree of coverage probably exists. At a quick glance, things seem to be on the up and up for the LGBTQ community in recent years. With the legalization of same sex marriage and a growing cultural acceptance of the LGBTQ community, many assume that the community is safe and legally protected. If you’re under that impression, you’re one of many. According to a Reuters/Ipsos poll, nearly half of Americans believe that the federal law protects LGBTQ citizens from discrimination on a basis of their sexual orientation. This just isn’t the case. Only 21 US States have anti-bias laws in place to protect LGBTQ employees. More so, the federal laws surrounding workplace LGBTQ protections are ambiguous and the current administration has stated that LGBTQ individuals aren’t covered at all. The false but widespread assumption that the LGBTQ community has adequate protection is a dangerous and prevalent one. It leads to a lack of awareness about LGBTQ workplace issues, blindsides many LGBTQ employees who encounter discrimination, and gives a false sense of security and progress to the nation as a whole. Currently the rules don’t exist. Everything is ambiguous and up in the air. Even parts of the federal government, such as the DOJ and the EEOC, don’t agree on what is covered and what is not when it comes to the law and LGBTQ discrimination/harassment. What does that mean for employers? It means it will most likely be determined in the courts. Do you want to be a legal test case? Your company may not be much better than the national conversation. In fact, it may mirror it directly. According to a PerformancePoint, LLC poll titled ‘State of LGBTQ in The Workplace 2018’, members of a company 14

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were asked if their company recognizes the contributions of every employee regardless of their sexual orientation. The responses were heartening:

• 97.14% saying they agree or strongly agree This would lead you to believe that the companies are doing a solid job of protecting and supporting their LGBTQ employees. Similar statements like ‘The company does a good job of inclusion in regard to LGBTQ employees’ bolster this outlook, as they also received overwhelmingly positive remarks. While these polls seem positive, and to a degree they are, responses to other questions undercut their weight. When PerformancePoint asked if the company had educational programs to familiarize employees with LGBTQ issues, we see a different story:

• 68.54% disagree or strongly disagree. When asked if the company does a good job of communicating company policies surrounding LGBTQ employees, the numbers showed that:

• Only 40% agreed or strongly agreed. According to Catalyst, LGBT employees feel that only 8% of their colleagues are very informed about the issues they deal with every day. In this way, we see companies mirroring the national conversation. There is an assumption that LGBTQ employees are doing fine but fine isn’t that clear and simple. The positive remarks may inadvertently hide the fact that a company’s policies in regards to LGBTQ employees are inadequate. This has repercussions for

any business. The failure to foster and protect diversity can lead to the loss of a unique company culture and even worse, the loss of some of your best employees and a deteriorating public brand. In the end, this is not about protecting a group of people. This is about protecting all of your people. It is about reaffirming that you hire and retain the best because you have the systems and culture to support doing so. So what can we do to bolster the stances of our companies and improve the workplace protections of LGBTQ employees on a company-wide level?

8. Learn to be more thoughtful and intentional in choosing team building activities. Don’t rely on the same types of team bonding, leaving certain people out.

9. Define what respect and civility mean in the workplace.

10. Help employees evaluate their comfort level with various differences including LGBTQ.

1. Create a safe place to work for all. Make sure part of your culture reflects respecting others in some way and helps to remind people not to stereotype others.

2. Review your policies. Most policies mirror the law. The law is the minimum requirement; the floor. Adjust your policies to expect more from your employees. Make sure the policies reflect current nomenclature.

3. Train your people on diversity, inclusion and equity. Make sure you support your policies and culture with a real investment.

Brad Federman, CEO

4. Create space for people to have affinity groups and feel supported to discuss their concerns and issues.

PerformancePoint LLC bfederman@performancepointllc.com www.performancepointllc.com

5. Provide an opportunity for all employees to learn about one another in a productive manner.

6. Help managers and employees understand how to talk about situations such as a colleague transitioning so they do not create a problem unintentionally.

Remember at work we are a team and teams must value, trust and respect one another. We may not always agree with one another, but we can appreciate one another and create a culture that allows each of us to feel valued at work.

Aris Federman, Workplace/Training Analyst

7. Lead conversations about bias and unconscious bias.

PerformancePoint LLC bfederman@performancepointllc.com www.performancepointllc.com

Engaged Employees. Resilient Relationships. Collaborative Cultures. • C ustomer and Employee Experience • Compensation Strategies • Strategic HR (Analytics) • Leadership & Talent • Diversity & Inclusion • Change & Transformation

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10 Reasons HR Should Background Check Current Employees By JARED ALEXANDER Smart HR Professionals know that mediocre employees can, with time and coaching, sometimes become high performers. Unfortunately, the opposite is also true. Over time, once stellar, honest, dependable employees can fall into dangerous, unacceptable habits that cause them to negatively affect the organization. One way of proactively identifying and addressing this problem is with post-hire background screening.

#6: Your organization employs long-term staff. The longer a person is employed, the more crucial it becomes to run a post-hire background check. Applicants who were squeaky clean when you hired them may have acquired a criminal history, drug habit, or financial problem that your company needs to know about. #7-#9: There’s been a noticeable…

Here are 10 reasons HR should background check current employees. #1: Your company is in a regulated industry. One of the best reasons to conduct post-hire screening is, well, because the law makes you do it. Certain industries like healthcare, financial, and transportation require companies to conduct periodic searches on their employees. #2: Your company serves vulnerable populations. Children, disabled people, and the elderly are especially vulnerable to those who would choose to do harm. If your organization serves these populations, screening your current employees and/or volunteers consistently is a smart best practice. #3-#5: You have employees who could do great harm to your company, like those who… • have access to company funds. Certain positions, such as an accountant, payroll supervisor, buyer, or cashier, put employees close to company money and assets. These staff members can damage the company’s bottom line if they decide to steal. • possess the ability to tarnish the company’s reputation. High profile employees like the C-Suite, salespeople, and team members who work with the public can bring embarrassment to an organization if they act erratically or participate in illegal behavior. For example, would you want Felicity Huffman or Lorie Loughlin on your staff right now? Better to find out about problem behaviors sooner rather than later to minimize the damage their actions can cause.

• are privy to confidential company and/or client information. Companies that work with sensitive, confidential information should make certain their employees are trustworthy. Trade secrets, the company’s competitive plans, and customers’ personal identifying information are data a shady employee could pilfer for personal gain. www.HRProfessionalsMagazine.com

• change in lifestyle. Has a team member started spending large sums of money, bought a fancy car, or started taking luxurious trips that are out of their pay range? Maybe their rich aunt died, but don’t automatically assume that. Question where the funds are coming from.

• change in performance. A typically productive employee going downhill is a cause for concern. Being habitually late, unfocused, rude, and not showing up are behaviors that, if they become a pattern, should be investigated.

• participation in dangerous/unhealthy behavior. Have you heard office gossip of a team member using drugs? Are they displaying an explosive temper or signs of violence? Employees who are acting this way, especially if it’s new behavior, need to be reviewed.

#10: It’s part of your company’s plan. A cohesive background screening policy is imperative to help choose the best people to fill your open positions. It’s also essential to keep the right people in the company and address concerns as early as possible. Screening current employees can be a helpful, smart addition to your employment screening process. Screening current employees in a compliant manner. If you decide to add post-hire screening to your processes, be sure to include these two components:

• An evergreen authorization. When your job applicants agree (in writing) for their backgrounds to be checked, make certain the document’s language reads that the authorization doesn’t expire. (Note: check your state laws before putting an evergreen authorization into place).

• Decide “when” and “what” will be used. Create a plan in writing for when you will screen current employees. Will it be every year? Will it be upon reasonable suspicion? A set plan protects your organization from discrimination claims. Also decide the type of background

checks you are going to use. Relevancy and consistency are crucial. Some of this may depend on the position. For example, a deliver person may need to be screened with a Motor Vehicle Records Search, while your accountant may not need that, but might need a Credit Report pulled on them. Although there is flexibility in the types of screening products companies use to background check current employees, the following tools are the most popular at reducing risk and improving the bottom line:

• Criminal records checks. Reviewing a county criminal search in the county the employee lives, and a nationwide data base search is a smart best practice.

• Drug screening. Drug addicted employees can disrupt the entire workplace and cause a variety of damaging and expensive issues if left unchecked. There are a wide range of drug screening products, from urine to saliva to hair testing, that employers can put in action to identify drug abusing employees. Utilize drug testing and put a program in place for offenders.

• Credit report checks. Checking an employee’s credit report is one way to measure the person’s trustworthiness and decrease the risk of becoming a victim of fraud. This process can uncover bad judgment and financial issues that could tempt the employee to steal or engage in other unsavory behavior detrimental for the company.

• Motor vehicle records search This report generates from the DMV and reveals violations, such as a DUI or an expired license, that could be problematic to your company.

The main idea HR should take from this article is that background checks shouldn’t be stamped “Complete” once a job candidate is hired. Over time, there may be instances of criminal activity, drug use, or other lifestyle problems that end up causing serious problems for the employer. Proactively identify these and work on them by implementing posthire screening into your employee management initiatives.

Jared Alexander

Background Screening Thought Leader jalexander@datafacts.com www.datafacts.com

State of the Art Compensation Management Blair and Bruce Johanson have careers in the human resources field and management administration for over 35 years each with specialization in employee compensation programs. Blair and Bruce have implemented several personalized Job Evaluation and Salary Administration Programs for organizations within the public and private sectors. Founded in 2005, DB Squared, LLC, is dedicated to providing a software tool that will increase the productivity of Human Resource staff, improve employee morale and the return for compensation dollars of the organization. JESAP (Job Evaluation and Salary Administration Program) is a program custom-developed by the Johanson Group in 2001. The program is modeled after the firm's proprietary JESAP methodology and job valuing algorithm, which originated in 1985.

Blair R. Johanson Blair R. Johanson, the firm’s president, has over 35 years of business operations experience with a focus on strategic planning, budgeting, hospital and physician management, and marketing and human resource management. Prior to joining Johanson Group, Blair was employed by Pendulum Practice Management Company, Physicians Resource Group, Inc., and Charter Medical Corporation. As a senior vice president, regional operations vice president and hospital administrator, he provided development and operations leadership for numerous physician practices and hospitals. He graduated with a master’s degree in business administration and B.S.B.A. degree in personnel administration from the University of Arkansas at Fayetteville.

Bruce E. Johanson Bruce E. Johanson, a principal officer/partner of the firm, has served in a management capacity in various corporate and non-corporate positions since 1979. Those positions included five years of experience with two major multinational corporations, several years of instructing in various disciplines at the university level, and over 30 years as a management consultant to a diverse client group throughout the United States. He has experience in areas of international business with small, medium and large corporations. Bruce joined Johanson Group in 1986 and served as President of the firm from 1988 until 2000. He received his B.S.B.A. in personnel management in 1978 and his M.B.A. in 1979, both from the University of Arkansas at Fayetteville.

DBSquared combines proven technology and seasoned expertise to help bring your total compensation management into perspective. We provide: DBCompensation® (built on the proven Job Evaluation and Salary Administration Program JESAP™ methodology) is a stateoftheart HR compensation management software application that efficiently combines internal knowledge and expertise with pertinent market information to streamline your compensation strategy and policies. Ultimately simple and elegant, DBCompensation is easily integrated into your business strategy and HRIS environment. Our proven methodology and process combined with thorough and intuitive software development ensure you'll never look back.

Helping clients envision new possibilities is a talented consultant's greatest asset. At Johanson Group, our combined 65 years of experience in all facets of business management enable us to offer the insight and direction that produce meaningful results.

DBDescriptions™ job descriptions software is the cornerstone of an efficient and aligned organizational design. Whether you need one job description or two hundred our database of descriptions has exactly what you need to adapt or create tailored descriptions for your business; all easily accessed through an intuitive webbased application. Utterly simple and efficient.

www.dbsquared.com info@dbsquared.com

We've helped organizations face the management challenges that come with a rapidly expanding staff and customer base. We also assist new business ventures map out their company's future, both strategically and operationally. Our signature approach is to listen and fully understand your company so that we can then partner with you to realize your own unique vision.

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Evaluating and selecting best-fit solutions for complex talent management needs The total addressable market for HR technology is $160 billion¹ — and it continues to surge with thousands of vendors introducing a steady flow of products and services. Inside this segment, the functionality of HR technology has scaled right along with an accelerating demand. Useful tools with advanced capabilities for streamlining and enhancing processes that engage, support and manage the workforce have never been more plentiful. By BRIAN HUTCHENS and RHONDA P. MARCUCCI

The potential of HR technology to help HR teams more efficiently, effectively and intelligently manage talent is driving market growth. By 2020, 46% of employers plan to update or upgrade their capabilities by either expanding (32%) or replacing (6%) their current technologies, or making both improvements (8%). Their top three drivers include automating processes (79%), increasing employee productivity (54%) and supporting their people strategy (47%).² Rely on key strategies to direct decisions While employers may find themselves inundated with HR technology options, staying current on new capabilities and their value for operations is difficult. Deciphering that value requires HR leaders to determine what the organization wants to accomplish, and how those aims fit overall business objectives and the budget. The ultimate goal is to align HR technology with their approach to managing their people. And this requires factoring the voice of the employee — their internal customer — into purchasing and maintenance considerations, along with security needs. Both established and start-up HR technology vendors are expanding rapidly in the current environment. This trend is propelled by cloud computing and the competitive landscape, as well as significant support and interest in this space from private equity firms. And functionality that was once the exclusive domain of purchasers with a large user base is now within reach of small and mid-market employers. There’s still a need for technology to perform basic transactions like processing payroll, but the promise of strategic intelligence capabilities is starting to draw the spotlight. For instance, newer platforms can analyze employee behavioral patterns to help determine workforce engagement levels — including microdata that predicts the likelihood of an employee leaving the organization. More powerful functionality like this is enticing employers to trade up from their older systems. When evaluating HR systems, teams should guard against the natural urge to chase the flashiest and newest options. The most novel or advanced features often have dependencies on other business processes or practices. Product demonstrations can be seamless, but implementation may require significant investments or change management outside of the system. Evaluating dependencies for functionality is essential. Allowing key organizational and talent strategies to guide changes and inform investments keeps the process grounded from initial explorations through final decisions. Business growth goals, change management needs, the talent management philosophy, and industry and other peer benchmarking requirements are some common areas for alignment. 18

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And opportunities for new systems or enhancements that drive business outcomes — while formalizing the business case — can be identified by conducting a gap analysis. Integrate the voice of the employee When evaluating HR technology options, a core consideration is the overall employee experience (EX). Many employers connect their workforce to HR services primarily through a computer or mobile device, especially for routine tasks. And most employees are conditioned and literally socialized to expect a well-designed interface, based on their familiarity with online shopping, news delivery and social media. They may instinctively compare encounters with HR technology to these personal experiences. For instance, they could hold subconscious beliefs about the time it takes to complete an HR task, or the ease of accurately entering data to avoid downstream rework. Employers can measure EX through different methods, including focus groups and employee surveys as well as evaluating their own experience as a user of the tool. Additionally, the candidate experience created by online recruiting systems should be explored. This technology is often the first point of engagement for potential new hires — and may influence their first impression of the company. Onboarding platforms can promote day-one readiness by providing an experience that goes beyond a collection of required documents. Engaging new hires with informational and educational tools will begin to establish a connection to their team, environment and workplace culture. This often lowers the likelihood of no-shows on the first day or a signed offer that’s rescinded. Applications are also available that give employees’ career wellbeing a head start — allowing them to pick a mentor, set an opening week schedule and develop an initial 90-day plan before their first day. Make security everyone’s business With the expanding scope of cybersecurity attacks, employers are well served to focus additional resources on evaluating protections for employee data. Emerging data privacy regulations such as GDPR and California law create a significant case for data analytics using a security framework. This sensitive information is sometimes overlooked when enterprisewide cybersecurity protections are developed, and the risk of fallout from insufficient scrutiny has never been higher. In an era of heightened public awareness, a lack of preparedness can damage employee trust and confidence as well as the organization’s brand if a breach occurs. And regulatory and legal consequences include fines or restitution requirements. There’s a lot at stake for employee and organizational wellbeing.

Risks can originate in peripheral functions and work their way into employee data, mission-critical functions or both. Consequently, non-core technologies and functions such as employee benefits administration should be an integral part of a holistic cybersecurity strategy and program. When selecting an HR technology vendor, it’s important to focus on the company’s stability and reliability. Many solutions will need to store a large body of private and sensitive employee information — such as Social Security numbers, birth dates and home addresses, as well as banking, health and family member information. These personal identifiers are vulnerable to external exposure. Outside threats such as ransomware and social engineering could, for instance, direct payments or W-2 information to the wrong person. Rogue or former employees as well as contractors and third-party vendors have also emerged as perpetrators in cybersecurity events.

to find the right fit. Yet it’s possible to avoid analysis paralysis through a methodical evaluation that distinctly identifies and carefully compares requirements against prospective vendor offerings. Critical to the success of this process is evaluating and regularly revisiting the risk management strategy to make sure options are a match. Optimizing employees’ experience with HR technology is essential to engagement, and mechanisms should be in place to monitor and collect their feedback. While security poses the greatest concern for both vendors and employers, outside expertise helps mitigate this risk. Assistance with defining requirements, vendor evaluation and selection, implementation and change management — to meet organizational objectives by using the most reliable solutions — can add an extra layer of confidence.

Brian Hutchens

But by and large, breaches happen when people accidentally allow access to technology, mobile devices are lost or stolen, a phishing email escapes detection, or similar mishaps occur. It’s important for the HR team to recognize and follow all steps that mitigate risk, and to be fully ready to manage an event whenever it occurs. Protection is only as effective as preparation — and should include developing and conducting organization-wide training, and partnering with the risk management department to put an incident response plan firmly in place. Consulting with risk management professionals about insurance coverage is another important safety measure. The sophistication of technology appears to be on an infinite upward swing. So it’s likely that the greatest HR technology challenge facing employers will continue to be sorting through bigger and better options

Division Vice President, Small Group Practice

Rhonda P. Marcucci Vice President, HR & Benefits Technology Consulting Practice

LAROCQUE, LLC, #HRWINS, “2018 Global HR Tech VC Look-Back,” accessed May 2019 ²Arthur J. Gallagher & Co., “2018 Benefits Strategy & Benchmarking Survey,” November 2018 1

Consulting and insurance brokerage services to be provided by Gallagher Benefit Services, Inc. and/or its affiliate Gallagher Benefit Services (Canada) Group Inc. Gallagher Benefit Services, Inc. is a licensed insurance agency that does business in California as “Gallagher Benefit Services of California Insurance Services” and in Massachusetts as “Gallagher Benefit Insurance Services.” Neither Arthur J. Gallagher & Co., nor its affiliates provide accounting, legal or tax advice. This is just one of 19 articles from Gallagher’s 2019 Organizational Wellbeing & Talent Insights. To download the full report, visit ajg.com/2019_owti. © 2019 Arthur J. Gallagher & Co. | 27335I

Local Roots. Global Reach. Hill, Chesson & Woody is now part of Gallagher. At Hill, Chesson & Woody, we’re proud to be part of Gallagher, a global brokerage with whom we share a thriving company culture and a common set of values. Our clients have always benefited from our local expertise, and now they can benefit from our expanded reach, too. Together, we can tackle any business challenge you may face with a broader range of benefits and total rewards. To learn more about this new partnership, visit: hcwbenefits.com

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PAYROLL PROTECTION: Seven Tips to Source Secure Providers By PETE ISBERG

A robust vetting of payroll providers can help maintain compliance and employee satisfaction. It can be easy to overlook the need to properly assess and compare payroll providers, given everything HR leaders have to consider and strategize for. But not all providers are built the same; longevity and know-how are significant factors in the marketplace. Organizations need payment processing providers who can offer confidence, clarity and compliance. Let's break down exactly what's at stake and what steps businesses can take to safeguard key processes when evaluating prospective providers.

Where are the Real Risks in Outsourcing? Not surprisingly, late payments or errors in wage payments are rarely a problem. Employees act as real-time auditors of every calculation in every wage payment, and employers treat any questions or complaints with the highest priority. However, on rare occasions, there have been incidents in which a service provider collected but failed to pay the employment taxes of its clients. Although rare, these incidents have been very damaging to the affected businesses. Employers can benefit from relying on experts to pay and file their payroll taxes, but the IRS warns that employers remain ultimately responsible for such taxes, even if a third party is making the deposits. Employees are unharmed by such incidents. They are still credited with all taxes withheld as shown on their annual Form W-2. CONFIDENCE: EXPERIENCE MATTERS

Organizations depend on payroll services to ensure their workforce is paid, taxes are remitted and adequate records are created to catalog these activities in detail. If a business is unable to pay employees reliably or ensure that tax bills are paid on time, confidence will diminish. Employee engagement will likely suffer, and consumer confidence could also falter if the organization can't lock down these processes and limit the potential for error. Provider confidence, on the other hand, comes from two sources: reputation and specialization. Payroll partners with industry experience — ADP® has 70 years' worth — and expertise earn their reputation online and in-person, and those who specialize in payroll management invest the necessary time and resources into working with key regulators, assessing current offerings and implementing critical data security solutions. CLARITY: THE TAX MAN COMETH

While due diligence in provider selection can help streamline and secure payment processing, clarity is critical when it comes to tax payments. You don't want to be left wondering whether taxes have been paid on time and in full. 20

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Here, providers should encourage businesses to follow up on IRS obligations with four simple steps: Step 1: Enroll your business in the Electronic Federal Tax Payment System (EFTPS), which allows you to verify any deposits made. Step 2: Know your tax due dates and use the Small Business Tax Calendar to track upcoming payments. Step 3: After due dates pass, log into EFTPS to make sure payments were received. Step 4: Always use your business name and address. This prevents money from being transferred to service provider accounts and ensures that all bills or notices are sent to you directly. The IRS will assess penalties and interest on late or missed payroll tax deposits, even if an employer can show that a third party was at fault. While it's certainly worth using a trusted provider to handle tax payments, they should be providing a quarterly reminder, required by the IRS, to encourage you to double-check their work. COMPLIANCE: EVALUATING PROVIDER POTENTIAL

Payroll services are complex. Providers must work with financial service firms — who in turn liaise with employee banks — to ensure deposits are made on time and debits are quickly resolved. For many businesses, it's not worth the time and resources required to build in-house payment processing solutions from scratch. Reliance on experts also enables business to offer advanced technologies that employees appreciate, such as direct deposit, electronic pay statements & W-2s; payroll cards (with bill pay, savings and other features), and critical business systems such as time-keeping and workforce management to include work scheduling and assistance with both hiring and onboarding. Payroll firms also facilitate retirement savings plans, pretax cafeteria benefit plans and other employee benefits. They often have extensive research organizations to automatically detect and apply frequent regulatory changes. Here are seven ways you can check whether your potential provider will meet critical compliance benchmarks:

1 Ask for References and Referrals Great providers have longstanding clients who are happy to speak about their services and security, especially around handling critical employee and tax information. Consider taking a dual-track approach: Ask your potential partner for direct referrals and ask trusted peers or accountants for their professional opinions.

2 Verify Provider Status Service providers should be registered with state and federal agencies and should hold a current business license. Compliance here can bode well for compliance in payroll operations.

3 Check Their Credit Rating Strong credit is a form of compliance. Check the credit rating of any potential partner to make sure they're meeting their own financial obligations before you trust them to manage your key business operations. Ratings from Standard & Poor's, for example, range from AAA all the way down to D. Ratings in the 'A' range, such as ADP's current AA rating, are the standard you should set for your organization.

4 Conduct Simple Searches Google them. Search for corporate history, relevant news articles and industry awards received. With data security and compliance now generating regular media attention, a quick search can reveal possible red flags or set your mind at ease.

5 Get It in Writing

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Compliance in payroll relies on auditable, traceable processes that align with state and federal expectations. Providers should have no problem supplying a written disclosure statement that outlines employer tax responsibilities and explains how to verify that payments are being made.

6 Read Everything Read all agreements. Ideally, have a lawyer do this as well to check that coverage is included for any penalties if your provider fails to pay taxes on-time or in full.

7 Confirm Their IRS Status Ask the provider for their electronic filing ID number (EFIN), which allows them to directly file taxes with the IRS. While outsourcing this task to a third-party still meets compliance requirements, EFIN numbers indicate that firms have been vetted and approved by the IRS to handle payroll data.

The Trust Factor Trust matters. It may seem appealing to prioritize simplicity and speed over security, but a lack of diligence can leave payments and tax obligations sitting in limbo as federal and state agencies investigate what went wrong. Business owners, meanwhile, may be left with substantial IRS debts and fines. Trust isn't given â&#x20AC;&#x201D; it's earned. Providers who offer confidence in their security standards, clarity in their operations and compliance across their key practices are your best bet to build trust and empower business outcomes.

Pete Isberg, VP ADP Roseland, NJ

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Gain A Competitive Advantage By Using the L.P.L. Model LEARN IT. PRACTICE IT. LAUNCH IT. One of the foremost authorities on the informal organization, Jon Katzenbach, suggested that organizations can begin to shape their culture with 5 key behaviors. 1. Find a Theme 2. Don’t claim victory too soon. 3. Enlist the help of informal leaders. 4. Remember that cultural forces don’t go away. 5. Start now. For one reason or another, it’s that fifth behavior that proves to be the most elusive for most organizations. Alfred North Whitehead was an early 20th century English mathematician and philosopher. Best known as the father of Process Philosophy, Whitehead once said, “Ideas won’t keep. Something must be done about them.” Understanding organizational success and culture is important when leading for impact. Culture is comprised of tangible and intangible aspects and includes patterns of behavior and expectations for behavior that are often deeply ingrained in the organizational fabric. People at all levels of an organization influence and are influenced by culture. Therefore, a need exists for intentional cultural transformation. What if there was a way of driving performance while also growing leaders? The Holliday | Kenning Playbook is a framework for organizational success that drives cultural transformation using the unique LPL (Learn It, Practice It, Launch It) model. It is a three-step process to: · E xplore ways to create a learning culture · Develop habits for success · Turn plans into action with an executable strategy Each step in the process addresses one of the major challenges of bringing ideas to fruition and provides the knowledge and tools to avoid failure. These principles ring true whether an individual is trying to make a small personal change, or an organization is attempting a mission shift. Learn It, Practice It, and Launch It are the keys to making it happen.

LEARN IT The ancient wisdom that learning never ends is of great modern importance. Company leaders have embraced the importance of adaptability to thriving in today’s quick-changing business environment. Furthermore, employees from the next generation expect a workplace that will continually feed their minds and build their skills. Studies agree that training and development opportunities are some of the most popular benefits an employer can offer to Millennials. When we think about organizations that have transformed into high performing organizations, we recognize there is one thing in common in all of them – learning was integrated into the fabric of the culture of the organization. This is a say easy do hard concept and one reason why the LPL model can help to transform how an organization does business. 22

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By “DOC” HOLLIDAY

Carol Dweck’s work on Growth mindsets and Fixed mindsets highlights the importance of learning as a core component to the culture of an organization. According to Dweck, “a ‘growth mindset’ thrives on challenge and sees failure not as evidence of unintelligence but as a heartening springboard for growth and for stretching our existing abilities.” With this attitude, learning is not an event or an activity, it is entrenched in the environment. The Learn It part of the LPL model emphasizes the importance of integrating learning into the culture of the business. Highperforming learning organizations provide tailored learning that factor in backgrounds, life experiences, and career goals ensuring each member of the workforce’s learning pathway helps them accomplish their career goals. Learn It positions learning as a significant value to the success of a high performing organization. The LPL Model begins with Learn It because that is how transformation begins. We must first learn what we need to know in order to drive change and improve efficiencies and effectiveness which necessitates creating work cultures that are geared toward constant learning. Creating and maintaining a true learning culture requires continuous measurement, the disciplined use of processes, the ability to overcome objections while integrating the concept of learning into how the organization operates.

PRACTICE IT This gap between intellectual understanding and skill development can be bridged by only one thing - practice. Sometimes a lot of it. In the book, Outliers, Malcom Gladwell suggests that it takes 10,000 hours of practice to become an expert at something. Wow! That’s 1,250 workdays or 250 weeks. Over 5 years. In his book The Personal MBA, Josh Kaufman, asserts that it takes about 20 hours of practice to go from “knowing nothing to being pretty good.” Splitting the difference, to be somewhere between “pretty good” and “expert” at something, somewhere between 20 and 10,000 hours of practice is needed. Yet, many are resistant to the idea of practice. Often, we have the intellectual capacity to understand what needs to be done and we naively believe this understanding give us the ability to do it. The reality is competence comes from practicing, getting feedback, adapting, and then practicing again. So why do we not practice it? It takes time and it requires us to be vulnerable. When we try something new and it’s awkward or we feel clumsy, it can be easier to revert to the familiar. It may not be the optimal solution, but it’s the one that makes us feel comfortable. Practice not only gives us the opportunity to develop and refine a skill, practice serves another essential purpose – it transforms that behavior into a habit and habits are incredibly potent forces. As you practice a skill, you rewire a part of your brain called the basil ganglia. Our brains are continually looking for ways to conserve mental energy and automate our decision-making processes.

Habits are the way in which they accomplish this. The practiced skill becomes automatic. That’s why bad habits are so hard to break, and good habits are so powerful.

Once the landscape has been surveyed though, it’s time. Alfred Whitehead was right. An idea is great, but the idea has no value unless it is put into action.

Former NFL quarterback Peyton Manning said it best when he stated, “I never left the field saying I could have done more to get ready and that gives me piece of mind.” Practice transfers the skill into an action that can be done competently and automatically – a habit.

If your organization (any size) desires a culture of achievement, a culture of agility, a culture of alignment, a culture of talent sustainability, or a culture of talent preparedness then implementing the LPL model will help you reach optimal performance. The LPL model provides the approaches needed to take strategy to action, the identification of emerging leaders to the next level, succession planning to a full bench of future leaders, metrics to impact, and change to transformation.

LAUNCH IT The Launch It part of the LPL model is the final component to creating cultural transformation. It is important to know the core reasons that transformation fails in order to avoid the pitfalls that keep success from happening. Common pitfalls are: · Lack of leadership buy-in and ownership

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· The level of resistance to change within the organization · The change is not anchored in the organizational structure · There is poor technical planning · There is complacency among the workforce · Failure to create short term goals along with the long-term goals

Dr. Trish Holliday, SPHR, SHRM-SCP, IPMA-SCP, CPC Founding Partner, Holliday | Kenning trish@hollidaykenning.com www.hollidaykenning.com

· Lack of communication throughout the organization · Lack of trust in leadership Think about what it takes to launch something, whether it is a new business, a new idea, a new program, a new product, or a new service. We must understand the environment and the landscape in which we are about to launch.

Lucinda Kenning, MBA Founding Partner, Holliday | Kenning lucinda@hollidaykenning.com www.hollidaykenning.com

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Choosing the Optimal Contribution Level for Your Pension Plan By DANIEL BERRY

Every year, a pension plan sponsor has a range of possible amounts that can be contributed to their plan. The IRS has rules specifying the minimum required amount that must be contributed each year, as well as the maximum deductible amount allowed. As long as the plan sponsor makes a contribution falling within that range each year, the IRS is satisfied. But, is funding the amount that is always at the bottom of that range a prudent funding policy? Or is there something better? When a plan sponsor makes only the minimum required contribution (MRC) every year, they are in essence hoping that interest rates rise (in the last 30 years, it hasn’t happened – see chart below) and/or assets do well (as they have for approximately the last 10 years). However, hope is not a strategy. Many plans that have only contributed the minimum in recent years are no better funded today than they were years ago. In fact, most are worse off. This is due in large part to the declining interest rate environment over the last 25 years, as lower interest rates mean higher liabilities and thus a lower funded status. Interest rates for funding purposes are based on a 2-year average of long-term bond rates. However, legislation passed earlier this decade allows these rates to be based on the 25-year average of long-term bond rates (“rate relief ”) and given the current low interest rate environment,

Source: Society of Actuaries

higher rates at the beginning of the period are being replaced with today’s lower rates in the average, so funding rates in the near future will be even lower than they are now. Additionally, this rate relief is scheduled to “wear off” by 2024, leading to further downward pressure on funding rates. This means that funding liabilities will be higher and funded statuses of plans will be lower. The result is the MRC will be rising in the near term. So rather than having a relatively stable contribution over a period of years (as might result when consistently contributing more than the MRC), the plan sponsor will be looking at increasingly larger contributions each year, possibly when they are less affordable. Thus, funding only the MRC is really just “kicking the can down the road” and provides no cushion for declining rates and possible future asset declines. In contrast, contributing an amount greater than the MRC might allow for the creation of a prefunding balance (sort of a “rainy day” fund) which could potentially be used in the future to offset some contribution requirements. 24

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Additionally, at least until the rate relief previously mentioned wears off in a few years, plan sponsors will be faced with rising Pension Benefit Guaranty Corporation (PBGC) variable rate premiums. This is because the liability for PBGC premium purposes is currently larger than the funding liability used for the MRC. In addition, the variable rate premium percentage is indexed to increases in national average wages, meaning that even if the funded status were to be maintained year-toyear, the premium would increase. Therefore, unless assets perform very well, funding only the MRC will likely lead to higher PBGC premiums. If the plan is large enough, a lower funded status could also lead to the plan sponsor having to complete a 4010 filing with the PBGC. Under Section 4010 of the Employee Retirement Income Security Act (ERISA), certain underfunded plans must report extensive information to the PBGC. This is not a simple undertaking, as gathering the information needed for submission can be quite onerous. This applies not only to the plan sponsor, but also to each member of the plan sponsors’ controlled group. The entire controlled group must supply the required information. In addition, if the funded status of the plan were to decline in the future, the plan may be more likely to be faced with an Adjusted Target Funding Attainment Percentage (AFTAP) falling below certain thresholds. This could lead to various benefit restrictions, including cessation of benefit accruals (if the AFTAP is less than 60%) and not being able to pay the full lump sum or Social Security level income option to a participant making such an election (if the AFTAP is less than 80%). This could be a very bad employee relations issue. Many pension plans are now either closed to new entrants or have frozen future benefit accruals. When the decision to close or freeze a plan was made, the usual goal would have been to eventually terminate the plan. However, the MRC is designed to achieve a funded status of 100% (and nothing higher) over a period of seven years, using the mandated funding rates. The problem is that in order to terminate a pension plan, a higher funded status is required because the liability for a terminating plan is higher than the liability for an ongoing plan due to the differential between interest rates used for those two purposes. Following a contribution policy of only making the MRC means that reaching the goal of a funded status sufficient to terminate the plan by a specified date is left to chance. In summary, contributing only the IRS minimum ultimately leaves a pension plan sponsor with less control over the plan cost and the related funding volatility, with the added potential of the undesirable outcomes discussed above. The sponsor will likely be faced with higher ultimate costs and will simply be reacting to the forces of the market, as opposed to making a plan and managing those costs and volatility proactively.

Daniel Berry Senior Vice President and Consulting Actuary McGriff Insurance Services Dan.Berry@McGriffInsurance.com 336-291-1143

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How the 2020 National Defense Authorization Act Impacts Employers While the space force transcends to other worldly heights, paid parental leave and ban-the-box legislation are the innovations that have tangible effects on employers and employees back on earth. By CHRISTOPHER M. LEWIS

On Friday December 20, 2019, President Donald J. Trump signed into law a comprehensive spending bill, which passed through Congress with overwhelming bipartisan support. The $738 billion bill—known as the 2020 National Defense Authorization Act (“NDAA”)—creates the muchtouted United States Space Force, which will complement the United States Air Force in protecting the country’s national interest in the celestial realm. The NDAA does not stop there in its groundbreaking legislation, however. It also places 2.1 million federal employees in a comparable position to their international counterparts by allowing twelve administrative workweeks of paid parental leave to qualifying workers. Additionally, the NDAA doubles down on a national trend by preventing federal employers from requiring job applicants to disclose their criminal histories on job applications. These developments—while less flashy than the highly anticipated Space Force—are sure to have a more mundane, yet still impactful, effect on the lives of millions of Americans in the near future and beyond.

The Federal Employee Paid Leave Act The Federal Employee Paid Leave Act, as enacted by the NDAA, allows qualified federal employees to take up to twelve administrative workweeks of paid parental leave in connection with the birth, adoption, or fostering of a child. Prior to the Act’s enactment, only eight states and the District of Columbia had established governmental paid leave programs, while merely sixteen percent of private sector employees had access to similar paid leave policies. These programs varied greatly in the absence of a comprehensive federal blueprint. For these reasons, supporters of the Act anticipate that the federal government will become a pioneer for local jurisdictions and private companies across the country. Senator Chuck Schumer (D-NY) told the Associated Press that the legislation is “a real breakthrough for families,” which he hoped would encourage private employees to follow the federal government’s lead: Not only does it mean that federal employees will get what they’re entitled to, the federal government is a pacesetter . . . If you work for a private company, this means the pressure on your employer will be much greater to give you parental leave as well when the blessed event of a child comes around, or god forbid your child is really sick and needs serious care.

Similarly, Ivanka Trump, one of the President’s top aides, also praised the Act as revolutionary in an interview with NPR: 26

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“It’s very hard for people to say, ‘Well, employers should provide [paid parental leave],’ if we are unwilling to provide it ourselves. So you have to lead by example.”

The federal government is, indeed, leading by example with the enactment of this legislation. However, federal employees do not have carte blanche to take paid parental leave on a whim. The Act provides leave for those employees covered by the well-established Family and Medical Leave Act (“FMLA”), and provides the federal government certain levels of protection by requiring employees to agree, in writing, to “work for the applicable employing agency for not less than a period of 12 weeks beginning on the date such leave concludes.” The Act goes even further by mandating that “[i]f an employee fails to return from paid leave provided under this paragraph after the date such leave concludes, the employing agency may recover, from such employee, an amount equal to the total amount of Government contributions paid by the agency . . . on behalf of the employee for maintaining such employee’s health coverage under chapter 89 during the period of such leave.” These provisions are a function of Congressional debates as to the scope of the newly enacted legislation. While Congressional Democrats sought to expand the provisions of the Act to make leave available for federal employees caring for chronically ill spouses, children, or other close relatives, such provisions were abandoned as too progressive for purposes of the trailblazing legislation. Regardless, paid parental leave, as promulgated by the Act, allows employees to avoid the decision of having to choose between caring for their families and keeping their jobs. It also supports economic growth, boosts business productivity by increasing employee morale, and makes it easier for employers to retain skilled workers. If private companies and states follow the federal government’s lead, both employers and employees should see long-term benefits.

The Fair Chance to Compete for Jobs Act of 2019 Prospective federal employees are also provided for under the NDAA, pursuant to the Fair Chance to Compete for Jobs Act of 2019 (“FCA”). Prior to the FCA’s enactment by President Trump, applicants for federal employment and contracts were required to disclose their criminal histories in their applications for employment. The FCA eliminates that requirement. The new legislation—co-sponsored by the late United States Representative Elijah Cummings (D-Md.) and colloquially known as a “ban the box” law—prevents federal agencies from requiring prospective employees to

disclose their criminal history upon applying for federal employment and/ or contracts. The legislation thereby opens up tens of thousands of federal government jobs to approximately 70 million Americans with a criminal background—almost one in three Americans of working age. The trend of banning the box has been gaining momentum for several years. In 2015, in an address to Rutgers University, President Barack Obama endorsed the legislation eventually enacted by President Trump: Now, a lot of time, [a] record disqualifies you from being a full participant in our society—even if you’ve already paid your debt to society. It means millions of Americans have difficulty even getting their foot in the door to try to get a job much less actually hang on to that job. That’s bad for not only those individuals, it’s bad for our economy. It’s bad for the communities that desperately need more role models who are gainfully employed. So we’ve got to make sure Americans who’ve paid their debt to society can earn their second chance.

Across the country, thirty-five states and over 150 cities and counties have already adopted some form of “ban the box” legislation with the intent of counteracting the stigma of a criminal background on an application for government employment. These jurisdictions include: Tennessee, Georgia, Kentucky, Louisiana, and others.

employees with criminal records that are, in fact, hired and/or contracted by the federal government—a requirement that is lacking in most jurisdictions. Supporters of the legislation argue that ban the box laws benefit the economy and local communities by expanding the availability of skilled labor across the country. They also argue that this legislation is one of the most effective methods of reducing recidivism among individuals with prior criminal histories. After enacting the legislation, President Trump stated that the FCA “bring[s] Americans who have been on the sidelines back into the workforce.” And that this legislation is “rebuilding lives, rebuilding families, and rebuilding communities.” “Second chance hiring is about safer communities, a stronger workforce, and a thriving economy. We believe in the dignity of work and the pride of a paycheck.” While the Space Force captures headlines following the President’s enactment of the NDAA, paid parental leave and ban the box legislation have the most notable effect on employers and employees entering a new decade. While imperfect, the trends set by the federal government will shape employment law and policy for several years across administrations. For now, however, employers and employees each have reason to cautiously celebrate these new developments in federal law.

Private sector employers have also fallen in line with this trend. Multinational companies such as Target, Coca-Cola, Google, American Airlines, and Walmart have all implemented ban the box policies. The FCA places the federal government in lockstep with these jurisdictions and companies, and provides another template to states that have yet to enact similar legislation. Moreover, the FCA takes on the pacesetter paradigm by mandating that the federal government collect data on prospective federal

Christopher M. Lewis, Associate Ogletree Deakins christopher.lewis@ogletree.com www.ogletreedeakins.com

We use our best tools to make your job run smoothly and efficiently. FordHarrison is a labor & employment defense law firm with 29 offices, including three affiliate firms, and is the sole member of the global employment law firm alliance, Ius Laboris. Guided by the FH Promise, FordHarrison delivers the highest quality legal service and communication to our clients. www.fordharrison.com

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Pregnancy Discrimination

Do Your Company’s Accommodation Policies Comply with Title VII & the ADA?

By JANELL AHNERT

Employers are experiencing a steady rise in discrimination claims asserting that the company failed to accommodate pregnancy-related medical restrictions. In light of this litigation trend, cognizant employers should review their accommodation policies and procedures; training programs for supervisors, human resources staff and safety employees; and personnel forms and documentation to ensure compliance with both the American with Disabilities Act Amendments Act (“ADAAA”) and Title VII of the Civil Rights Act (“Title VII”) as amended by the Pregnancy Discrimination Act (“PDA”). EEOC Strategic Enforcement Plan The increase in pregnancy discrimination litigation is being fueled by several factors, one being the focus of the Equal Employment Opportunity Commission (“EEOC”) on these claims. In the EEOC’s Strategic Enforcement Plan for years 2017-2021, which establishes priority categories regarding enforcement and litigation by the EEOC, the EEOC has targeted employer accommodation of pregnancy-related limitations. As the EEOC continues to focus its resources on investigating and pursuing pregnancy accommodation claims, employers will predictably see an increase in the number of these claims. Expanded Coverage of the ADA Another factor leading to an increase in pregnancy accommodation claims is the fact that the ADAAA greatly expanded the definition of disability, requiring reasonable accommodation of even temporary health conditions. Although pregnancy is still not considered a disability, many pregnancyrelated health issues are covered by the ADAAA. Examples of pregnancy conditions that could require reasonable accommodation include, but are not limited to, gestational diabetes, preeclampsia, anemia, and morning sickness. Reasonable accommodations could include flexible schedule, modified policies, lift assists, frequent breaks, sitting, snacks at workstation, working remotely, ergonomic equipment, and other potential solutions. Even under the expanded ADAAA, the employer is not required to create a new position to accommodate a disability. However, as discussed below, under the PDA, an employer may be required to create temporary light duty work assignments for pregnant employees, if the employer creates them for non-pregnant employees. Young v. United Parcel Services In 2015, the United States Supreme Court decided Young v. United Parcel Services, Inc., providing a new framework for pregnant employees to challenge accommodation practices under the PDA. 135 S. Ct. 1338 (2015). The Young Court modified the McDonnell Douglas framework, holding that a pregnant employee pursuing a PDA claim may establish her initial burden by showing she belongs to the protected class; that she sought accommodation; that the employer did not accommodate her; and that the employer did accommodate others “similar in their ability or inability to work.” 135 S.Ct. at 54 (quoting 42 U.S.C. § 20000e(k) (2012)). This initial burden can be met by showing that other employees received accommodations for physical limitations like those needed by the pregnant employee. Non-pregnant employees accommodated under the ADAAA, for both personal medical issues and, potentially, on-the-job work injuries, may be proper comparators under the PDA. Once this initial burden is established, it is then up to the employer to provide its rationale as to why it treated the pregnant employee’s accommodation request differently from other employees it did accommodate. In its decision, 28

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the Young Court held that an employer’s legitimate non-discriminatory reason, “normally cannot consist simply of a claim that it is more expensive or less convenient to add pregnant women to the category of those . . . whom the employer accommodates.” Id. at 1354. As such, an argument that accommodating pregnant employees is too costly or complicated (in light of the fact that the employer accommodates non-pregnant employees for similar medical issues) will be rejected as a legitimate rationale. If the employer can provide an acceptable rationale for the difference in accommodating non-pregnant employees but not pregnant employees, the Young Court established that a pregnant employee can still reach a jury by providing evidence that “the employer’s policies impose a significant burden on pregnant workers, and that the employers ‘legitimate non-discriminatory’ reasons are not sufficiently strong to justify that burden, but rather – when considered along with the burden imposed – give rise to an inference of intentional discrimination.” Id. at 1354. Pregnancy Accommodation Litigation Following ADAAA & Young Because Young’s claim arose prior to the amendments to the ADA, the Supreme Court did not analyze the case under the ADAAA, only under the PDA. As such, it is unclear how the Supreme Court would have decided the case as a post-ADAAA pregnancy accommodation claim. However, lower courts are consistently finding that pregnancy-related temporary medical conditions, like the ones listed above, are covered by the ADAAA and, as such, employers must reasonably accommodate them. It addition, the Supreme Court in Young chose not to directly answer a crucial question that continues to plague employers: Whether an employer must provide light duty to pregnant employees in the same manner that it provides light duty to employees injured on the job. The failure to address this issue has resulted in lower courts struggling with determining if employees with work-related injuries who are assigned temporary light duty work are proper comparators for pregnant employees who also require light duty. See e.g., Legg v. Ulster County, 820 F.3d 67, 74 (2d Cir. 2016) (finding proper comparators those employees who were unable to perform non-light-duty tasks as a result of injuries incurred on-duty); Durham v. Rural/Metro Corp., 2018 WL 4896346 *2 (N.D. Ala. Oct. 9, 2018) (appeal filed 11th Cir., Nov. 7, 2018; oral argument held on Jan. 15, 2020) (rejecting employee’s claim that the employer’s policy providing transitional light duty assignments only to employees suffering from work-related injuries, and not pregnancy, violated the PDA). In response to the ambiguities resulting from Young, the Pregnant Workers Fairness Act (H.R. 2694), was reintroduced in the House of Representatives in May 2019. The bill would require employers to provide reasonable accommodations, including job modifications, to pregnant employees and prohibit employers from denying employment opportunities to woman who may need pregnancy accommodations. On January 14, 2020, the House Education and Labor Committee approved an amended version of the bill incorporating bi-partisan revisions. However, it is unclear when or if the bill will receive a House vote. Further, it is anticipated that the bill will not pass the Senate. Until the Supreme Court, or Congress, addresses the uncertainty left after Young regarding this specific comparator issue, a cautious employer should revise any light duty policies that apply only to employees injured on-thejob and fail to accommodate pregnant employees requiring light duty work assignments.

Additional Compliance Tips • Training – Front-line supervisors and safety managers must be trained to recognize pregnancy-related medical issues as potentially triggering accommodation requirements. These supervisors must recognize that requests by pregnant employees for work changes such as leave, additional bathroom breaks, or having access to food in their work area may be requests for accommodations, which should be forwarded promptly to HR. At the same time, managers must fully understand that pregnancy in and of itself is not a disability and is rarely reason to deny the employee work assignments or overtime assignments. A manager must never assume that an employee needs special treatment or accommodation simply because of a pregnancy.

Legal Challenges are Coming at HR Professionals from Every Direction

• Job Descriptions – Accurate job descriptions describing the physical requirements of each position and identifying essential job duties should be drafted and reviewed periodically for needed revisions. Job descriptions containing specific requirements for physical duties such as standing, lifting, pulling, pushing, etc., are helpful to treating physicians in determining if a pregnant employee requires accommodation. In addition, if an employer must defend an ADAAA claim, such job descriptions are critical in establishing the essential functions of each job. • No Fault Attendance Policies – Employers utilizing “no fault” attendance policies, under which employees receive points for absences regardless of the reason, must be mindful that a potential reasonable accommodation may be to excuse absences. Absences covered by the Family Medical Leave Act (“FMLA”), which may include pregnancyrelated medical absences, may not result in the accrual of points under any such attendance policies. • Review Workers’ Compensation Light Duty Policies – Creating light duty temporary assignments for on-the-job injuries may result in evidence of discrimination under the PDA if such light duty temporary assignments are not also created for pregnant employees. Be mindful of this issue and proceed with caution. • Leave as an Accommodation – If a pregnant employee cannot be accommodated otherwise, consider leave as an accommodation. Check to see if the employee is eligible for FMLA leave or short-term disability benefits. Even if not eligible for these types of leave, allowing the employee to take an unpaid leave of absence as an accommodation may be required. However, an employer may not force an employee to take leave because of pregnancy, as long as she can perform the essential functions of her job, with or without reasonable accommodation. Requiring an employee to take leave against her wishes violates the PDA even if the employer believes it is acting in the employee's best interest. • Be Mindful of Individual State Laws – Currently, at least 27 states and the District of Columbia have passed laws protecting pregnant employees. Be mindful that there could be a specific state requirements with which your company must comply. • Breast Feeding & Lactation – Lactation is a medical condition related to pregnancy under the PDA and employers cannot discriminate against women who need to express breast milk during work hours. In addition, nursing mothers are protected under the Fair Labor Standards Act (“FLSA”), which requires employers to provide reasonable break times during work shifts to pump breast milk. Although employers are not required to pay employees for time spent pumping, the employer must provide a private space, other than a bathroom, to the employee to express milk.

That’s Why Rainey Kizer Makes Your Business Our Concern As the issues facing HR executives become more frequent, challenging, and complex each year, you need a law firm that provides advice invidualized for you specific needs. This is why you should know the employment law attorneys at Rainey, Kizer, Reviere & Bell, PLC. For over 40 years, our AV-rated firm has advised businesses, non-profit organizations and government agencies on all aspects of employment law. To learn more, please call.

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Tennessee does not certify specialists in the area of employment law.

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Employers Can Do Something About Hospital Medical Errors By CRISTIE TRAVIS

Did you now that hospital errors and infections are the third leading cause of death in America? Millions more suffer harm or disability. As an employer you pay for this problem, both in terms of the impact on the lives and health of your employees and their families, and in added costs to your health benefit plan. The Leapfrog Group (www.leapfroggroup.org) estimates that employers pay an average of $8,000 per hospital admission for preventable errors and infections. You don’t have to just accept this situation. There are specific actions you can take, supported by resources and others engaged in this work, to protect your employees and their families and lower these unnecessary costs in your health benefits.

Connect yourself to the safety issue Use the Leapfrog Lives and Dollars Lost Calculator to estimate how many of your employees and their family members are personally impacted by medical errors and how much this is costing your company. Get the calculator at https://www.leapfroggroup. org/employers-purchasers/lives-dollars-lostcalculator. Understanding your own data shows how personal this issue really is to your organization. To lose a colleague or a colleague’s family member to a preventable medical mistake has a ripple effect throughout your whole team and impacts them emotionally as well as their ability to focus on their work and productivity. Watch Bleed Out, the HBO Documentary, that follows the 10-year journey after what was supposed to be a “routine operation” leaves the filmmaker’s mother in a coma with brain damage. The journey includes several preventable medical mistakes; the challenges faced by the family and impact on work; the emotional toll; and a view of the system that was clearly broken on many levels. The film reminds all of us of the personal toll preventable medical mistakes take even when death is not the outcome. Consider sharing this documentary with your employees. Learn more at https://www.hbo.com/ documentaries/bleed-out 30

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Familiarize yourself with network hospital performance You are incentivizing your employees to use your network hospitals. Be sure these hospitals are providing safe care. Track and monitor performance over time for those hospitals your employees use most so you can stay on top of improvements or any problems that are beginning to emerge. Let’s use the Memphis, Tennessee market as an example so you can see the power of the information. Here are the results of the fall 2019 Leapfrog Hospital Safety Grade release for Memphis. Hospital Safety Grade

Memphis-area Hospital

Methodist LeBonheur Germantown Methodist University Hospital Saint Francis Hospital – Bartlett Saint Francis Hospital – Memphis

Methodist North Hospital Methodist South Hospital

Baptist Memorial Hospital Collierville Baptist Memorial Hospital De Soto Baptist Memorial Memphis Regional One Health

None

The good news in Memphis is that the percentage of hospitals with an “A” (40%) continued to surpass the national average (33%)! And, the percentage of Memphis hospitals with an "A" and "B" (60%) also surpassed the national average (58%). Just two years ago, only 10% of Memphis area hospitals received an "A" and only 20% received an "A" and "B". Three hospitals -- Methodist University, Methodist South, and Regional One -increased their grades from the spring 2019 release. Note: Methodist Olive Branch did not have sufficient information to receive a grade.

Although there has been continued momentum in improvements in Hospital Safety Grades in Memphis, the market still has a cluster of four hospitals in the “C” category. It is our goal to have all Memphis hospitals with an “A” or a “B”. A study conducted by Johns Hopkins Medicine’s Armstrong Institute for Patient Safety and Quality found that compared to an “A” hospital your risk of dying in a “B” hospital is almost 35% higher and almost 88% higher in a “C” hospital. Moving all hospitals to at least a “B” will result in significant reductions in unwarranted deaths. Leapfrog Hospital Safety Grade information is available free and is quickly analyzed to give a snapshot of overall safety in your community and hospital network. If you have employees in several markets, work with your consultants to perform a similar analysis for areas where you have the highest concentration of employees. You can get Hospital Safety Grades for 2,500 hospitals at www.hospitalsafetygrade.org.

Communicate with your network hospitals The more hospitals hear from employers, especially in your role as purchasers of health benefits, the more they will prioritize safety. We have found that the media tends to focus on the low performers in a market, failing to recognize the hard work it takes to get an “A”. Be sure to thank those hospitals that performed well to reinforce your support for their commitment to safety. For low performers in your network, and especially for those your employees use most often, schedule a meeting to better understand what their plans are for improvement and to reinforce your concern for your employees, their families, and for the additional cost you are paying for poor care. If there is a Leapfrog Regional Leader in your market, contact them and coordinate your communications with the hospitals. Consider asking them to join you in a meeting. They have a deep knowledge and understanding of the Hospital Safety Grade and can help facilitate the meeting. You can get a list of Regional Leaders at https://www.leapfroggroup.org/ regional-leaders/regional-leader-markets.

Expect your health plan to prioritize safety Signal your priority on hospital safety by asking key questions about hospital networks when you go out for bid. For example, in your RFP, include questions about the number of hospitals in each grade category and get geo-access to “A” and “B” hospitals based on where your employees live and work. Score plans that are heavily weighted in “A” and “B” hospitals higher than plans with poorer performers. In addition, when contracting with a health plan, require that they incentivize their network hospitals to voluntarily report on the Leapfrog Hospital Survey which provides critical information used in the Hospital Safety Grade.

analysis from The Johns Hopkins Armstrong Institute for Patient Safety and Quality found that 45,000 fewer deaths occurred in 2018 compared to 2015, based on the prevalence of safety problems in hospitals receiving a Leapfrog Hospital Safety Grade.

points, newsletter articles, social media posts, posters and short videos all in language and presentation that your employees will understand.

Yes, there has been significant improvement, but it has taken 20 years to get to this point, and we still have significant improvements to make. As purchasers of health benefits for over 100 million, employer purchasing policies. processes, and employee communications are essential to build the faster momentum we need to see progress sooner.

Once this foundation is laid, share the actual results with your employees so they can use the Hospital Safety Grade as one component of their hospital selection process.

Inform your employees

Why now?

Help your employees better understand that there is variation in the quality and safety of care in hospitals. The Leapfrog Group has a number of employee education tools at https:// www.leapfroggroup.org/employers-purchasers/ value-tools. These tools range from talking

The fall 2019 Hospital Safety Grade release coincides with the 20th anniversary of the Institute of Medicine's To Err is Human report which focused the nation's attention on the nearly 100,000 deaths a year due to preventable medical mistakes. A recent

Cristie Travis, CEO Memphis Business Group on Health ctravis@memphisbusinessgroup.org www.memphisbusinessgroup.org

How Safe is Your Hospital? Leapfrog Hospital Safety Grades are assigned to over 2,600 general acute-care hospitals across the nation twice annually. “D” and “F” Hospitals carry a 92% greater risk of avoidable death, so choosing the safest hospital in your community is critical. Unsafe care is no value at any price. See how the hospitals in your community are graded on safety at www.hospitalsafetygrade.org

HR MAG DRAFT to specs.indd 1

1/15/2020 11:57:22 AM 31 www.HRProfessionalsMagazine.com

Key Takeaways

ATTENTION MANAGEMENT: How to Create Success and Gain Productivity Every Day

By WILLIAM CARMICHAEL Books on time management have become a literary staple to most yet with what appear to be an endless number of time management books available, finding one that is short, simple and effective seems an arduous, if not impossible task . . . until now! Attention Management: How to Create Success and Gain Productivity- Every Day by Maura Nevel Thomas will absolutely change your perspective about how you manage time and I can promise you will never look at it the same way again. This is a good one, folks!

Time Management vs. Attention Management The dictionary defines time management as the process of planning and exercising

conscious control of time spent on specific activities, especially to increase effectiveness, efficiency, and productivity. We all know what it is, what it looks like, how it affects us and the reality that we have absolutely no control over it. In other words, time manages us. On the other hand, attention management is more direct and refers to models and tools for supporting the management of attention at the individual or at the collective level. For our readers, these differences are important for where we do not have a reasonable control over managing our time, we do with managing our attention. It is this distinction that clarifies why Thomas has become such a recognized authority on how to master attention management.

One Area of Practice. One Focus. The Kullman Firm has engaged in the practice of labor and employment law on behalf of management since 1946.

Regardless of how successful we feel we are, this book has much to teach us. For example, to quote our author in the book’s opening, “Our problem now is one of distraction from our ever-present technology and its ability to deliver communication and information to us in unlimited ways all the time. This, in turn, has created expectations of immediate and constant availability, further fueling our need to stay connected, and therefore, our constant distraction.” Readers will discover, just as I did, that although we will never be able to eliminate all these incessant distractions, we can learn to manage them differently. Thomas brings us to the realization that attention management is not a singular behavior but rather behaviors grouped into a quadrant;

Reactive + Distracted

Daydreaming

Flow

Focused + Mindful

Here, our author shows us how to “unleash your genius, control your distractions, be present in your moments, maximize your focus, engage your flow, and achieve your significant results.” Thomas also shares the top ten signs that indicate you need to master attention management which are:

1. Distractions run your day. 2. Regularly handle email or other work after work hours. 3. Work while on vacation. 4. Multitask as a coping strategy. 5. Available for work 24/7/365.

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6. Think “I can sleep when I’m dead.” 7. “Busyness” is a badge of honor. 8. Loved ones are frequently annoyed by your relationship to your smartphone.

personal and professional lives, such as computers, tablets and smartphones but notes, “those devices and the content we view on them are intentionally designed to steal your attention. Afterall, the job of the Internet is to keep you on the Internet!” She looks at the ways the Internet and our connected devices use a scientific understanding of the way the brain works to keep us virtually addicted to them, and looks at the negative impacts. She talks about the harm caused by always being on, never really leaving work behind. She encourages us to take specific actions to improve our attention management, among them taking “opportunities to rest your mind and inject moments of calm into your day.” As a result of that specific change, she says, “you feel more creative and inspired, and you generate more insights and solutions.” Maura closes the book with the idea that attention management is one of the key choices in our lives.

Structure and Layout At only 90 pages, Attention Management: How to Create Success and Gain ProductivityEvery Day is a quick read with lots of actionable steps after each of the five chapters. It also has an effectively simple content design so that information flows from one page to the next. I encourage you to read it and see if the approach she describes will help you get better at focusing your time, energy, and attention on what matters most to you, so you can get the results you want.

Who Will Benefit Most from This Book? Management at all levels, Human Resource and training professionals

About the author: Maura Nevel Thomas is an award-winning international speaker, trainer, and author on individual and corporate productivity and work-life balance, and she is the most widely cited authority on attention management.

9. Work in an open office environment. 10. Frequently exhausted and/or overwhelmed. And whether we are guilty of one, more, or all of these (I am!), Thomas talks about the technology that helps us in our

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Professor | Strayer University William.carmichael@strayer.edu www.strayer.edu

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DAN HEATH Dan is the best-selling co-author of Made to Stick, Why Some Ideas Survive and Others Die, business thought leader, and Senior Fellow at Duke University's Case Center.

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2020 Financial Benefits Trends for Your Employees’ New Year and Beyond…

hen it comes to retaining top talent, most HR professionals recognize how crucial it is to provide a competitive comprehensive benefits package for their employees. Many industry professionals are becoming even more strategic about developing an offering that is holistic in nature and meets the needs of an everchanging workforce. But, do your employees truly understand the value of their integrated benefits package and how it impacts their future?

2. Leverage of innovation & fintech It’s not enough that companies are providing financial wellness programs for their employees. The need to access personalized financial information in a convenient way is becoming a necessity. Financial Technology, also known as fintech, is on the rise as employers are searching for easily accessible platforms to support their employee financial wellness programs. Functionalities such as mobile applications, Artificial Intelligence (AI), self-directed e-learning tools, and even personal financial coaches help employees manage their personal financial education and wellness.

Most Americans spend about one-third of their life at work. Many companies are focusing on creating an integrated offering encompassing all aspects of an employee’s life. Based on my personal interactions, benefits for work, health, lifestyle, and financial security are now top of mind when developing cohesive and enticing packages. However, with endless options available, it can be a challenge for employers to know which benefits offerings are both valuable and desirable for their specific workforce and to ensure their employees are making the most of them.1

Not only are these platforms elevating employee financial health, many are becoming fully integrated offerings for the end user. By incorporating 401(k), HSA, and other employer-sponsored benefits these solutions have become a convenient option to help employees have a holistic look at their current and future financial picture. As new innovations become available, we only see this shift towards consolidation and convenience a more prevalent offering for employer-sponsored financial wellness programs.3

Even with the myriad of trends, topics and buzzwords, one focal point has seemingly overcome all the industry noise: financial wellness. With financial stresses from personal matters to economic circumstances, it’s not surprising that financial health has become a huge topic of discussion for employers concerned about their employees’ wellness. And while this topic continues to be a leader in the employer benefits arena, we anticipate several key financial benefits concepts to emerge in 2020.

3. Generational personalization of benefits As we enter 2020, we have four profoundly different generations dominating the workforce: Baby Boomers (b. 1946-1964), Gen X (b. 1965-1979), Millennials (b. 1980-1994), and Gen Z (b. 1995-2012). With each of these groups comes a unique set of wants and needs in their benefits packages.

1. Integrating financial wellness with physical and emotional health It’s not uncommon for employers to offer wellness programs that focus on physical and emotional health. Now, many companies are noticing the overarching impact that financial wellness can have on their employees’ health.

Currently, Boomers are the main generation entering (or thinking about entering) retirement. Their financial needs tend to be more focused on financial security, health insurance, and cash flow management when they no longer receive a salaried income. On the other side of the spectrum, Gen Z is just entering the workforce. Their concerns are generally based in career advancement and debt repayment.

Financial struggles are consistently listed among the highest causes of stress. This burden can lead to anxiety, frustration and unease in every aspect of life. For someone who is dealing with financial stress, employers may notice negative changes in their mood or productivity during the workday – directly impacting companies’ bottom line.2

With this wide array of financial needs, the option for a “one size fits all” financial solution is obsolete. Companies are beginning to understand this need for personalization, and many are considering implementing a variety of financial benefits options that are tailored to fit the needs of each generation in their workforce.

However, by providing employees with meaningful tools to address their finances, many companies are seeing an increase in productivity, employee engagement, and employee morale. When employees are less focused on their finances, they have more time to be focused on their work.

4. Student loan debt assistance It’s no new news that debt is a serious issue for many Americans. As younger generations make up a larger population of the current workforce, companies are helping these employees tackle one of

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their most common sources of debt: student loans. This type of benefit not only helps employees accelerate their student loan payments, but allows them to better manage their current and future finances. Companies have taken several different approaches to this issue. Some employers are flat out matching amounts employees pay towards student loans, while some are utilizing 401(k) contribution matching programs to help pay for student loan debt. Others are partnering with third party firms to provide debt consolidation, refinancing options, or student loan debt payment counseling for their employees. Either way, with the Employer Participation in Repayment Act as a bill on the docket for this year, and the 2020 election underway, student debt repayment is going to continue to be at the forefront of many working Americans. 5. Funding for the greater good Financial benefits that are making lots of lead way in recent years are those that not only help individual employees, but also benefit their colleagues and their communities. Employer sponsored Corporate Social Responsibility (CSR) programs and employee relief funds have stepped into the spotlight as means of financial assistance and support. Both types of funds are created with the intention helping those in need. While CSRs typically are intended for philanthropic endeavors, employee relief (or rainy day) funds are intended to be utilized for direct employee needs. These funds help employees who find themselves in a sudden financial hardship or disaster. The fund can be supported by company donations, individual employee contributions, or a combination of the two. Depending on how the fund is initially set up there are also potential tax benefits for both the employer and the employee.

To still aid employees in need, but avoid the hassle of setting up a separate fund, many companies choose to offer employersponsored interest-free loans for employees. These types of programs typically do not have the potential tax advantages as employee relief funds, but still provide employees with financial assistance in times of need. Companies that wish to sharpen their edge in a competitive market will embrace new and innovative employee benefits offerings. Whether employers begin to utilize one or all of these trends, one thing is for certain – financial health is going to continue to be a key component of successful employee wellness programs. Over the next several months, we will take a deeper look at each of these topics and provide insights on how to help your employees see their financial futures more clearly through comprehensive benefits offerings. *SOURCE: 1. https://www.reference.com/world-view/percentage-lives-spent-working-599e3f7fb2c88fca 2. https://www.adp.com/spark/articles/2018/10/whats-on-your-employees-minds-financial-stress-and-workplaceperformance.aspx 3. https://www.pwc.com/us/en/industries/private-company-services/library/financial-well-beingretirement-survey.html 4. https://woodruffsawyer.com/employee-benefits/employee-benefit-strategies-multi-generational-workforce/

Erin Haynes Reed Corporate Solutions ErinReed@argi.net

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Respective services provided by ARGI Investment Services, LLC, a Registered Investment Adviser, ARGI CPAs and Advisors PLLC, SCA CPAs and Advisors, PLLC, ARGI Business Services, LLC, and Advisor Insurance Solutions. All are affiliates of ARGI Financial Group. www.HRProfessionalsMagazine.com

Love @ Work! Yes, It’s OK. By LEEANN BAILES FOSTER

What’s LOVE got to do with it? Everything, Tina Turner, everything!

o Be open and honest with the management.

It’s February, the LOVE month. Let’s show more LOVE in the workplace. Yes, I am a 30+ year HR professional. No, I have not lost my mind. We need LOVE at work. Being and feeling loved has the potential to increase productivity and decrease turnover. As a fellow HR professional, inserting LOVE into your work atmosphere will make you look like a genius. Your monthly KPIs will be met and surpassed.

o Offer to sign a “Love Contract.” Inserted at left!

Let’s cover our compliance matters first. Dating at work is very risky. Even when the relationship is new and both parties are happy, onlookers may not be so happy. The dating couple runs the risk of accusations regarding their time together at work (is it work or play?) and favoritism. As far as a supervisor dating a subordinate, do not go there. Since we spend at least one-third of our lives at work, there is a good chance a relationship will start to blossom. If this happens, please be professional and proactive in how the situation is dealt with. Here are some tips:

o Ask to be transferred to another area or begin your search for employment elsewhere. So, if dating co-workers is risky and supervisors should never date subordinates, how could I even suggest more LOVE at work? I am not referring to passionate love. I am talking about companionate love. What’s the difference you ask? Love is love and it is unprofessional in the workplace. Please read further. You may just change your mind about that.

PASSIONATE LOVE is defined as when two people first fall in love. They often have an intense passion for each other. They want to touch all the time, kiss all the time, and have very absorbing feelings. In the article Differences Between Compassionate and Passionate Love Kendra Cherry writes the following, “Some of the key cognitive, emotional, and behavioral characteristics of passionate love include: ♥ Intrusive thoughts about the partner. People often experience almost constant thoughts about the person they are in love with. ♥ The idealization of the other person or the relationship. People in passionate love tend to believe that the object of their affections can do no wrong. ♥ A strong desire to know and be known. People in passionate love want to know everything about their partner. ♥ Strong emotions about the other person. People in this type of love feel good when things are going well but may be devastated when things go awry. ♥ A need to maintain physical closeness. In addition to being strongly attracted to the other person, people in passionate love try to maintain close physical proximity.” As stated earlier, when it begins to blossom, deal with the situation proactively and professionally.

COMPANIONATE LOVE is defined as a deep, mature, affectionate attachment between people who love each other, like each other, and respect each other. This type of love involves caring deeply for the other person, truly knowing the other individual, and is committed to the other person through both good times and bad. Even when disagreements take place, people who share compassionate love remain in love and dedicated to one another. 36

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Cherry’s article also states that some of the key cognitive, emotional, and behavioral characteristics of companionate love include:

“ To picture a strong culture of companionate love, first imagine a pair of co-workers collaborating side by side, each day expressing caring and affection towards one another, safeguarding each other’s feelings, showing tenderness and compassion when things don’t go well and supporting each other in work and non-work matters. Then expand this image to an entire network of dyadic and group interactions so that this type of caring, affection, tenderness and compassion occurs frequently within most of the dyads and groups throughout the entire social unit: a clear picture emerges of a culture of companionate love.”

♥ “Long-Term Commitment: Companionate love is marked by a longlasting and enduring commitment to each other. ♥ Deep Intimacy: People who share compassionate love can share every aspect of themselves with each other. Mutual sharing of feelings and concerns is a hallmark of this form of love. ♥ Trust: Compassionate love is marked by a deep trust in the other person.” We know that being kind to others feels good, helps us heal, and even makes us appear more attractive. Now there's evidence that acting with companionate love in the workplace can also have a profound effect on both the internal and external success of a business. While the idea has previous been labeled "touchy-feely" and quickly discarded, creating an emotionally positive work culture can boast big benefits for both customers and employees, according to a new study from researchers at the Wharton School at the University of Pennsylvania and the George Mason University School of Business. They found a clear, positive correlation between companionate behavior, work satisfaction and company success. Their results were recently published in the journal Administrative Science Quarterly.

Ten years ago, The Gallup Q12 Employee Engagement Questionnaire was (and still is) a widely used tool to measure the engagement of employees. Question #10 asked, “Do you have a best friend at work?” The thought behind the answer ‘yes’ to this question was that if an employee felt companionate love at work, he would be less lately to voluntarily leave the organization. So, what do you think now? An organization’s culture is their Operating System. During February, allow and encourage companionate love in your workplace. The workplace will be more successful, productive, and the bottom line will improve. And lastly, Happy Valentine’s Day!

In the study, researchers Sigal Barsade and Olivia O’Neill focused on exploring the idea of a companionate love culture, which they describe as the following in their report:

LeeAnn B. Foster | Head Coach Leadership & HR Consultant www.teamfosterhrstrategy.com

Compliance with Compassion… … using your head, your heart, and your hands to nurture your employees. TEAM FOSTER HR STRATEGY provides comprehensive human resources consulting services for small to mid-size businesses. Offering turnkey solutions for clients, Team Foster is committed to compliance with compassion. With 30 years of industry experience, LeeAnn excels at relationship management, conflict resolution, and employee engagement. Team Foster works with you to motivate and manage HR issues from the inside out – supporting your existing human resources team and coaching your staff to solve problems with an integrated approach. Team Foster HR helps you build a collaborative corporate culture to further your business goals and strengthen your performance.

LeeAnn B. Foster | Head Coach Leadership & HR Consultant +1 865-719-1177 mobile

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GMEBC Meeting | January Luncheon Crescent Club Memphis January 9, 2020

2020 GMEBC Board of Directors Donna Winfrey, Russell Henderson, Lu Harvey, Linda Tripp, Ted Archdeacon, Alexis Giannini, Linda Yoakum, Preston Cox & Esha Iupe. Not pictured: Antoinette Wiseman.

HRIS Panel (L-R) Brent Bevil with Workday, Cynthia Thompson, Alanna Brooksbank and Jeff Phelps with ADP

Frank Cardenas, President and CEO of FEDlogic; and Anita Blackmer, Chief Operating Officer with FEDlogic. FEDlogic was the sponsor for the January 9 meeting. 38

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Rob McKenna Composed: The Heart & Science of Leading Under Pressure

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HR Connect Crescent Club Memphis January 21, 2020

SHRM-Memphis members started the new year off with great networking and career connections at the SHRM-Memphis HR Connect event.

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TOP

Educational Programs for

Professionals

University of Memphis The Department of Management in the Fogelman College of Business and Economics at the University of Memphis offers AACSB-accredited training in human resource (HR) management and organizational behavior. The following faculty have an expertise in these areas: Drs. Kurt Kraiger, Kristen Jones, Alex Lindsey, Caitlin Porter, Enrica Ruggs, Jessica Kirk, Chuck Pierce, Carol Danehower, Laura Alderson, Kelly Mollica, and Kathy Tuberville. They offer undergraduate courses on HR topics such as introduction to human resource management, compensation & performance appraisal, managing diversity, staffing organizations, and employee training & development. The University of Memphis offers MBA and executive MBA courses on topics such as managing human resources, and strategic human capital management. They also offer a doctoral research seminar on human resource management. In addition, the department has a student chapter of the Society for Human Resource Management (SHRM) and offers an undergraduate concentration in HR management. Finally, the department is well-represented in the new Center for Workplace Diversity and Inclusion. For more information, please contact Dr. Kurt Kraiger, Chair of the Department of Management (kurt.kraiger@memphis.edu; http://www. memphis.edu/management).

Fogelman College Department of Management

Kurt Kraiger, Ph.D. Professor of Human Resource Management and Chair of the Fogelman College Department of Management

Kristen P. Jones, Ph.D., Assistant Professor

Enrica Ruggs, Ph.D., Assistant Professor

Alex P. Lindsey, Ph.D., Assistant Professor

Jessica Kirk, Ph.D., Assistant Professor

Laura Alderson, Ed.D., Instructor of Management

Caitlin Porter, Ph.D., Assistant Professor

Chuck Pierce, Ph.D., Professor

Kelly Mollica, Ph.D., Instructor of Management

Dr. Kurt Kraiger, Management Department Chair, at kurt.kraiger@memphis.edu.

Carol Danehower, DBA, Associate Professor

Kathy Tuberville, Ed.D., Instructor of Management www.HRProfessionalsMagazine.com

FRIDAY, APRIL 17, 2020 8:00 A.M. - 4:30 P.M.

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Seven Undocumented Employees Terminated at Trump Winery By BRUCE E. BUCHANAN

LATE DECEMBER 2019, Trump Winery in Charlottesville, Virginia terminated seven workers because of their undocumented status, according to The Washington Post. These discharges occurred almost

a year after the media reported the Trump Organization employed numerous undocumented employees at many of its properties, including several golf courses. In response, the Trump Organization discharged many undocumented workers at its golf courses and pledged to do so at all of its properties.

Timing of Trump Winery firings The timing of the Trump Winery firings is suspicious because it comes immediately after workers had finished the arduous annual grape harvest and as the vineyard’s winter downtime started. Omar Miranda, one of the discharged long-term employees stated “They (Trump Organization) didn’t make this decision in the summer because they needed us a lot then.” The Trump Organization responded to this allegation as follows: “Consistent with our efforts, we will immediately terminate any individual who has provided fake identification in order to unlawfully gain employment.”

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Additionally, undocumented workers at the winery were broadcast by Univision in May 2019. However, no employment actions were taken at that time, presumably because the harvest season had begun. Miranda’s bosses praised his work, never mentioning immigration papers. Miranda was officially employed by Trump Vineyard Estates LLC. Miranda first joined the winery under its previous owner and then was hired by the Trump Organization in 2013, using fake documents he had purchased for $120. “The papers one uses, they know it’s something illegal,” Miranda said. “The owner knows.” Miranda said a longtime vineyard field supervisor who is no longer with the company was also undocumented and knew many employees working for him were in the same situation. Other managers helped fill out applications for employees without legal status, Miranda said.

2018 Discharges of Undocumented Workers at Trump Organization Golf Clubs In late 2018, different media groups published articles stating Trump Organization golf courses employed undocumented workers. In response, Trump National Golf Clubs in Westchester, New York, Bedminster, New Jersey, and Pine Hill, New Jersey, terminated numerous undocumented workers. The terminations at the Trump golf clubs appear to be as a result of internal I-9 audits that the Trump Organization conducted at its properties across the country after the media exposed the employment

of undocumented workers. At that time, the Trump Organization, through Eric Trump, a son of President Trump and the executive vice president of the Trump Organization, stated "We have tens of thousands of employees across our properties and have very strict hiring practices. If any employee submitted false documentation in an attempt to circumvent the law, they will be terminated immediately. We take this issue very seriously.” The Trump Winery appears to have improved the process of questioning alleged undocumented workers about their status in comparison from prior questioning by other Trump properties. According to Miranda, Kerry Woolard, the winery’s general manager, met with him and said, “So, when we looked at your forms and documents, some of the documentation did not seem genuine, or was insufficient. Do you currently have legal permission to work in the United States?” “No,” Miranda replied. “So unfortunately, this means we have to end our employment relationship today,” Woolard said. Previously, the Trump Organization questioned former employee, Victor Reyes, a cook at the Pine Hill golf club: “The manager called me and asked, ‘Victor, are you legal?’ I said, ‘No, I am not legal.’ It surprised me because I knew he knew that I was illegal. I have worked for him 16 years and then he asks me.” After Reyes’ admission, he and other workers were told their documents did not pass inspection after an internal I-9 audit and that they should leave the premises immediately. Another employee at the Westminster golf club, Margarita Cruz, stated being similarly discharged.

Correct Method to Question Employees about Alleged Undocumented Status It should be noted the Trump golf club’s method, as described by Reyes and Cruz, is not the proper way to conduct an internal I-9 audit. The best method is to first examine the documentation on file with the I-9 form, if the employer retained the documentation. If it appears to be fraudulent, an employee should be so notified and given the opportunity to present document(s) from the I-9 Lists of Acceptable Documents. If the employee cannot provide documentation to prove work authorization, the employee should then be discharged.