March 2015 issue

Page 1

Volume 5 : Issue 3 TM

www.HRProfessionalsMagazine.com

SHRM

ARSHRM HR

Conference & Expo April 8 -10 in Hot Springs

The Case for

Hiring Emotionally Intelligent People

Employment Law and Legislative Conference March 23-25 in Washington, DC

Bob Carragher

SHRM Senior State Affairs Advisor

Highlights from the

TPMA

State Conference April 14 -16 in Gatlinburg

MSSHRM

Leadership Conference How Social Media is Changing the Landscape of Recruiting


JUST PUT IT ON THE COMPANY CARD…NOBODY WILL NOTICE.

YOU’RE REALLY SHOWING OFF YOUR BEST ASSETS TODAY.

THEY’RE WORRIED ABOUT OVERTIME. I’M JUST WORKING OFF THE CLOCK.

I NEVER WEAR THE SAFETY GOGGLES. THEY LEAVE A MARK.

What you don’t hear can still hurt you. The things employees say when you’re not around can cause legal troubles for you. Fisher & Phillips provides practical solutions to workplace legal problems. This includes helping you find and fix these kinds of employee issues before they make their way from the water cooler to the courthouse.

1715 Aaron Brenner Drive • Suite 312 • Memphis, TN 38120 • 901.526.0431 www.laborlawyers.com

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COLUMBUS DALLAS DENVER FORT LAUDERDALE GULFPORT HOUSTON IRVINE

KANSAS CITY LAS VEGAS LOS ANGELES LOUISVILLE MEMPHIS NEW ENGLAND NEW JERSEY

NEW ORLEANS ORLANDO PHILADELPHIA PHOENIX PORTLAND SAN ANTONIO SAN DIEGO

SAN FRANCISCO TAMPA WASHINGTON, D.C.


Bringing Human Resources & Management Expertise to You

Only

15% of one’s financial

success is due to technical ability. www.HRProfessionalsMagazine.com Editor

Cynthia Y. Thompson, MBA, SPHR Publisher

The Thompson HR Firm HR Consulting and Employee Development Art Direction

Park Avenue Design Contributing Writers

Theresa J. Allen Scott Conrad Harvey Deutschendorf Jennifer S. Hagerman Tom Kane Larry Poague Courtney Leyes Alissa Parr Heidi Parsont Ben Robbins Lori Severson Greg Siskind Tanja L. Thompson Board of Advisors

Austin Baker Jonathan C. Hancock Ross Harris Diane M. Heyman, SPHR John E. Megley III, PhD Terri Murphy Susan Nieman Robert Pipkin Ed Rains Michael R. Ryan, PhD 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. ©2011 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.

Features 4 note from the editor 5 Profile: Bob Carragher, SHRM State Affairs Advisor 12 The Case for Hiring Emotionally Intelligent People 16 How to Decide Between to Equally Qualified Candidates 18 How Social Media is Changing the Landscape of Recruiting 28 Dealing with the H-1B Visa Cap 30 Four Hiring Mistakes that May Hinder Long-Time Employees

WEB EXCLUSIVES HTTP://HRProfessionalsMagazine.com /Exclusives

Departments

10 E mployment Law – To Don and to Doff? What are Union and Non-Union Employers’ Liability Under the Fair Labor Standards Act? 14 Risk Management – Workplace Violence – Employers Can Reduce Their Risks 20 Employee Wellness – Personalized Strategies for Health Benefits Can Lower Costs and Improve Employee Wellness 22 Employee Benefits – Wrap Documents and Form 5500 Filings 26 NLRB – Efforts to Stop the NLRB’s Ambush Election Rules May Not Succeed 32 Lawyer of the Year Joins Fisher & Phillips in Memphis 34 EEOC – LGBT Employees Continue to Gain Legal Protection

Industry News 6 Highlights from MSSHRM Leadership Conference in Biloxi February 14 7 SHRM Employment Law and Legislative Conference in Washington, DC on March 23-25 8 Preview ARSHRM HR State Conference & Expo in Hot Springs April 8-10 24 Preview Tennessee Personnel Management Association Annual Conference in Gatlinburg April 14-16

Next Issue Highlights of 2015 TNSHRM Leadership Conference February 20 in Nashville Highlights of SHRM Employment Law & Legislative Affairs Conference March 23-25 in Washington DC www.HRProfessionalsMagazine.com

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a note from the Editor

Lincoln Memorial Washington DC

We had the pleasure of attending the MSSHRM Leadership Conference in Biloxi on February 14. What a great place to be for Valentine’s Day! I hope you enjoy the highlights from this wonderful Conference on Page 6. Congratulations to Greg Payne and the MSSHRM State Council on an excellent program! It was great seeing Sherry Johnson, SHRM Fields Services Director, there as well. We are also excited about the ARSHRM HR Conference & Expo April 8-10 in Hot Springs. Registration details and the Conference Agenda are on Page 8-9. We are looking forward to attending the Annual Tennessee Personnel Management Association Conference in Gatlinburg April 14-17. See Page 24 for registration details. Highlights from these two important conferences will be in our April issue.

M

In addition to our coverage of current hot topics in employment law and employee benefits, we bring you many exciting articles on recruiting and talent management in this issue that I know you will find helpful. You can learn how to hire emotionally intelligent candidates, how social media is changing the landscape of recruiting, how to decide between two equally qualified candidates, four hiring mistakes that may hinder hiring long-term employees, and how to deal with the H-1B visa cap.

arch is a very important month for all HR professionals as the annual SHRM Employment Law and Legislative Conference is March 23-25 in Washington, DC. We are honored to be a media sponsor and look forward to bringing

you highlights from the Conference in our April issue. This is one of my favorite SHRM Conferences because we have the opportunity to visit Capitol Hill and personally meet with our State Legislators and other government officials. We are honored to have Bob Carragher, SHRM Senior State Affairs Advisor, on the cover.

Mike Aitken, SHRM VP Government Affairs, will be the keynote speaker.

As always please join us for our monthly complimentary HRCI virtual event sponsored by Data Facts on March 19. Watch your email for details! If you are not currently receiving our monthly invitation, you can subscribe on our website at www.hrprofessionalsmagazine.com.

His topic is The Washington Outlook: The Impact of the 114th Congress on HR’s Public Policy Agenda. Sallie Krawcheck will be speaking on Leadership Lessons Learned from Working with Financial Services CEOs in the Best and Toughest of Times. ABC News Legal Analyst Dan Abrams will be the Closing General Session speaker. He will discuss On the Law and in the News. It’s not too late to register for this fantastic conference. Registration details are on Page 7. If you are unable to attend, you can follow me on Twitter @ cythomps as I will be tweeting about the exciting events and speakers. We will also be providing daily updates on Facebook and Linkedin. Please email me and let me know if you plan to attend so we can link up while there!

Cynthia Y. Thompson | Editor cynthia@HRprosMagazine.com www.HRProfessionalsMagazine.com

SHRMEMPLOYMENTLAW& LEGISLATIVE CONFERENCE P Conference Program Information

A PRIL 8-10, 2015

General Information th

th

When: April 14 – 16 , 2015 Pre-conference activities P Information Information o 3 Pillars of HRProgram Certificate Program When: April 14th General – 16th, General 2015 P Conference Information Conference Program Information Where: Park Vista Hotel: April 14th – 16th, 2015 o Webinar – Healthcare Reform Best When Pre-conference activities

MARCH 23–25, 2015 ★ WASHINGTON RENAISSANCE ★ WASHINGTON, D.C.

705:Hotel Cherokee Practices When April 14Orchard – 16 Road , 2015 Pre-conference activities Where: Vista o 3 Pillars of HR CertificatePark Program Gatlinburg, TN 37738 Sessions o 3 Conference Pillars HR Certificate Program Where: Park Vista Hotel o of Webinar –Orchard Healthcare Reform « Gatlinburg, TN 37738 705 Cherokee RoadBest o “The Heart and Soul of Leadership” : Park per Vista Hotel o Webinar –toHealthcare Reform Best The Where rate is $83.00 night. One Bedroom Suites Road 705 Cherokee Orchard o “A Call Practices Urgency: 21st Century Orchard Road are available705 for Cherokee $285 per night. Two Bedroom Practices ★ DON’T MISS OUT. ★ REGISTER ONLINE TODAY. ★ Gatlinburg, TN 37738 Leadership Competencies” Conference Sessions Suites are also available TN for $375.00 per night. Gatlinburg, 37738 Conference Sessions o “Labor & Employment Law Update” o “The Heart and Soul of Leadership” King Suites andThe Family Suites are available upon One Bedroom Suites st o “Leading Technology Trends Driving is $83.00 per night. o “The Heart of Leadership” In January 2015, a new Congress will convene in Washington, D.C. Lawmakers will consider o “Aand CallSoul to Urgency: 21 Centuryrequest for $183.00rate per night. Reservations st Human Resources”21 Century The rate isare $83.00 per night. Oneper Bedroom available for $285 night. Suites Two Bedroom policy changes to existing workplace laws and establish new regulations that will impact o “A Call to Urgency: Leadership Competencies” should be made by March 20th, 2015 to get the o "Strategies to Increase an are available for are $285 peravailable night. Two Bedroomper night. employers across the country. The 2015 SHRM Employment Law & Legislative Conference Suites also for $375.00 Leadership Competencies” conference rate. In order to best serve our o “Labor & Employment Law Update” Organization's Bottom Line" Suites you areKing alsomake available for $375.00 will give you the information you need to understand the complex legal landscape that Suites andreservations Family Suites are night. available upon attendees, can your by per o “Labor & Employment Law Update” Panel o Discussions “Leading Technology Trends Driving King Suites and Family Suites are available upon calling the hotel directly. The on-line booking affects your business. request for $183.00 per night. Reservations o “What’s at the Heart of Employee o “Leading Technology Trends Driving Human Resources” code is “PMA”. request for $183.00 per bynight. Engagement?” should be made March Reservations 20th, 2015 to get the Human o Resources” "Strategies to Increase an o “Heart Healthy Government Operated should beconference made by March 20th, 2015 to get theserve our rate. In order to best o "Strategies to Increase an (800) 421-7275 ★ KEYNOTE SPEAKERS ★ Clinics”Organization's Bottom Line" Telephone: conference rate. In order to best serve our Organization's BottomWorks” Line" www.tnipma.orgattendees, you can make your reservations by Panel o “The Art ofDiscussions Wellness th

4

H OT S PRINGS , A RKANSAS

th

www.HRProfessionalsMagazine.com

Program & Speaker Details, Hotel Info and Registration at www.HR2015.org


Bob

on the cover

CARRAGHER BOB CARRAGHER Senior State Affairs Advisor Society for Human Resource Management With over 30 years’ experience in both the public and private sectors, Bob began his career in government affairs as a personal staff member to U.S. Senator Sam Nunn (D-GA). After leaving Capitol Hill, he worked for a national labor law firm representing clients before Congress and the Executive Branch. Before joining the Society for Human Resource Management back in 2006, Bob managed the government relations and member advocacy programs of two business trade associations representing the automotive aftermarket and the metals service center industries, as well as worked for an Alexandria-based public affairs firm providing government relations assistance in Washington. As SHRM’s Senior State Affairs Advisor, Bob’s responsibilities include monitoring legislative activity impacting HR at the state level, and assists with SHRM’s member advocacy activities. He is a graduate of the University of Rochester in Upstate New York with an American History degree. 

www.HRProfessionalsMagazine.com

5


HIGHLIGHTS

(L-R) Cynthia Thompson, who spoke on the SHRM Competency Model; Sherry Johnson, SHRM Field Services Director, provided a SHRM National Update, with Greg Payne, Director of MSSHRM State Council, at the Reception at the Golden Nugget on Friday evening, February 13.

Dr. Frances Lucas was the opening speaker and her topic was “Leadership in Style.”

Elisabeth Doehring spoke on Mississippi Health and Wellness Initiatives.

MSSHRM Volunteer leaders enjoyed the Reception on Friday evening, February 13, at the Golden Nugget.

Mike Mulvihill spoke on Mississippi Department of Education initiatives.

6

www.HRProfessionalsMagazine.com

Tommye Dale Farve spoke on “Managing vs. Leading.”

The Candy Bar was decked out in Mardi Gras splendor.


SHRMEMPLOYMENTLAW& LEGISLATIVE CONFERENCE MARCH 23–25, 2015 ★ WASHINGTON RENAISSANCE ★ WASHINGTON, D.C.

★ DON’T MISS OUT. ★ REGISTER ONLINE TODAY. ★ In January 2015, a new Congress will convene in Washington, D.C. Lawmakers will consider policy changes to existing workplace laws and establish new regulations that will impact employers across the country. The 2015 SHRM Employment Law & Legislative Conference will give you the information you need to understand the complex legal landscape that affects your business.

★ KEYNOTE SPEAKERS ★ Monday, March 23

Tuesday, March 24

WELCOME BREAKFAST & WASHINGTON OUTLOOK FEATURING MICHAEL P. AITKEN

BREAKFAST & GENERAL SESSION FEATURING SALLIE KRAWCHECK

Vice President of Government Affairs, SHRM

The Washington Outlook: The Impact of the 114th Congress on HR’s Public Policy Agenda

One of the Most Respected Voices on Wall Street and Owner of Ellevate

Leadership Lessons Learned from Working with Financial Services CEOs in the Best and Toughest of Times

CLOSING GENERAL SESSION FEATURING DAN ABRAMS Legal Analyst for ABC News; CEO, Abrams Research; and Founder/Publisher, Mediaite.com

On the Law and In the News

conferences.shrm.org/legislative

15-0036


H OT S PRINGS , A RKANSAS

A PRIL 8-10, 2015

Program & Speaker Details, Hotel Info and Registration at www.HR2015.org


2015 ARKANSAS SHRM HR CONFERENCE & EXPO CONFERENCE AT-A-GLANCE ARSHRM15 - WEDNESDAY, April 8, 2015

7:00 a.m. ‐ 5:00 p.m.

Attendee Registration – Convention Center Registration Booth Labor Relations

8:00 a.m. ‐ 9:15 a.m.

Feeding the OFCCP Tiger Tim Orellano

Recruitment

Employee Development

Their Way or the Highway ‐ HR Assessments for Success Lori Kleiman

You Are Important, You Are Needed, and You Are Necessary Minnie Lenox

9:30 a.m. ‐ 10:45 a.m.

Mega Session: Hurdling Adversity ‐ The Power of Inspiration ‐ John Register

10:45 a.m. ‐ 11:30 a.m.

Exhibit Hall ‐ Hot Springs Convention Center, Hall A

11:30 a.m. ‐ 1:30 p.m.

Opening Keynote Session—“Culture That Rocks" ‐ Jim Knight Hot Springs Convention Center, Horner Hall Recruitment

1:45 p.m. ‐ 3:00 p.m.

Employee Engagement

Their Way or the Highway ‐ HR Assessments for Success Lori Kleiman

4:00 p.m. ‐ 5:15 p.m.

Personal Development

Labor Relations

How Toilet Paper, Cookies & Ice Cream Making Your Organization's Leaders Into a are the Kryptonite of the Hero to Drive Employee Loyalty Super Heroes in HR Kyle Killingsworth

3:00 p.m. ‐ 4:00 p.m.

Feeding the OFCCP Tiger

Troy Redstone

Tim Orellano

Exhibit Hall ‐ Hot Springs Convention Center, Hall A

Business Strategy

Business Strategy

Recruitment

Strategies for Developing a High Performance Organization

Beyond Tactical HR: Linking Talent Strategy to the Business Strategy

Effective Pre‐Employment Screening

Cynthia Thompson

Tony Hawk

Paul Hickman

5:15 p.m. ‐ 6:30 p.m.

The Daily Planet Reception in the Exhibit Hall ‐ Hot Springs Convention Center, Hall A

6:30 p.m. ‐ 8:00 p.m.

Dinner on Your Own

8:00 p.m. ‐ 11:00 p.m.

Tweet‐up Late Night Reception with DJ at the Austin Hotel

ARSHRM15 - THURSDAY, April 9, 2015 8:00 a.m. ‐ 12 Noon

7:00 a.m. ‐ 8:15a.m.

Attendee Registration – Convention Center Registration Booth Business Strategy

Business Strategy

Strategies for Developing a High Performance Organization

Beyond Tactical HR: Linking Talent Strategy to the Business Strategy

Cynthia Thompson

Tony Hawk

7:45 a.m. ‐ 8:30 a.m.

Continental Breakfast ‐ Exhibit Hall ‐ Hot Springs Convention Center, Hall A Recruitment

8:30 a.m. ‐ 9:45 a.m.

Business Strategy

Effective Pre‐Employment Screening Paul Hickman

9:45 a.m. ‐ 10:45 a.m.

10:45 a.m. ‐ 12 Noon

Personal Development

The SuperHerRo of Actionable Change Management

How to be a Workplace Safety Superhero

How Toilet Paper, Cookies & Ice Cream are the Kryptonite of the Super Heroes in HR

Andrew Dale

Robert Magri

Troy Redstone

Labor Relations

Employee Engagement

Recruitment

Employee Relations

Strategic Enforcement Plan: EEOC's Roadmap to its Enforcement and Litigation Efforts

Making Your Organization's Leaders Into a Hero to Drive Employee Loyalty

Effective Pre‐Employment Screening

Violence in the Workplace ‐ A Personal Experience

Debra Finney

Kyle Killingsworth

Paul Hickman

Kathleen McComber

Luncheon Keynote & Chapter President Recognition—"Built on Values" ‐ Ann Rhoades Hot Springs Convention Center, Horner Hall

1:45 p.m. ‐ 2:15 p.m.

4:00 p.m. ‐ 5:15 p.m.

Safety

Exhibit Hall ‐ Hot Springs Convention Center, Hall A

12:00 Noon ‐ 1:45 p.m.

2:30 p.m. ‐ 3:45 p.m.

Dessert & Closing of the Exhibit Hall ‐ Hot Springs Convention Center, Hall A Labor Relations

Business Strategy

Employee Relations

Employee and Labor Relations

Paging Aquaman: Employers are Drowning in Regulations

The SuperHerRo of Actionable Change Management

Violence in the Workplace ‐ A Personal Experience

Employee and Labor Relations

Michael Lotito Labor Relations

Andrew Dale Employee Relations

Kathleen McComber Employee and Labor Relations

Labor Panel

Strategic Enforcement Plan: EEOC's Roadmap to its Enforcement and Litigation Efforts

Conflict Management

Ask‐an‐Attorney Panel

Jason Hudnell

Labor Panel

Debra Finney 5:15 p.m. ‐ 7:00 p.m. 7:00 p.m. ‐ 9:30 p.m.

The Gotham City Reception ‐ Hot Springs Convention Center Horner Hall Dinner on Your Own or Meet and Greet Dinners (Pre‐Registration Required)

ARSHRM15 - FRIDAY, April 10, 2015 8:00 a.m. ‐ 9:15 a.m.

9:15 a.m. ‐ 12 Noon

Labor Relations

Employee Development

Employee Relations

Paging Aquaman: Employers are Drowning in Regulations

You Are Important, You Are Needed, and You Are Necessary

Conflict Management

Michael Lotito

Minnie Lenox

Jason Hudnell

Brunch Closing Keynote, Arkansas SHRM Awards & Intro to 2016—"The Wisdom Advantage" ‐ Hallerin Hilton Hill Hot Springs Convention Center, Horner Hall

Sessions highlighted in Green are Business (formerly Strategic Management) Approved by HRCI

Schedule subject to change. As of 2/10/2015.

www.HRProfessionalsMagazine.com

9


To

Don and to Doff?

What are Union and Non-Union Employers’ Liability Under the

Fair Labor

Standards Act? By COURTNEY LEYES

A

question I am often asked by clients is what is compensable time under the Fair Labor Standards Act (the “FLSA”). Sure, it is easy to pay your non-exempt employees for the time they spend performing their jobs. Where the line is blurred, however, is when an employee performs functions ancillary to his or her position. One of these ancillary functions that has given employers headaches for years is when an employee is required to put on (“don”) and take off (“doff”) clothing and/or protective equipment as part of his or her job. What makes this particularly confusing, like most questions I receive about the FLSA, is that whether to compensate an employee for donning and doffing boils down to the specific facts. Below, I will provide you with a road map to attempt to eliminate the guesswork for both union and non-union employers. First, I will discuss the current law under the FLSA, as amended by the Portal-toPortal Act. Then, I will analyze two recent Supreme Court opinions discussing donning and doffing. After providing you with a background of the applicable law, I will provide you with some HR best policies regarding donning and doffing. However, as always, if you have any questions, it would be best to consult with your counsel.

Compensable Time Under the Fair Labor Standards Act – Under what circumstances donning and doffing could be considered “an integral and indispensable part of the [workers’] principal activities” Under the FLSA, employers are required to compensate an employee for “work.” The Portal-to-Portal Act, which amended the FLSA in 1947, relieves employers of the obligation to compensate employees for activities which are “preliminary or postliminary to [the] principal activity or activities” of a job. 29 U.S.C. § 254. Incidental activities performed before or after the normal workday are noncompensable under the Portal-to-Portal Act if they are neither integral or indispensable part of the employee’s principal duties nor otherwise rendered compensable by a contract, custom or practice of the employer. 29 U.S.C. § 254(a)(2). An activity is integral and indispensable to a principal activity, and thus, the time spent performing that activity is compensable, if: the activity is made necessary by the nature of the work performed, it fulfills mutual obligations between the employer and his employees, the activity directly benefits the employer in the operation of his business, and the activity is closely related to other duties performed by the employees. Thus, in order for a particular activity to be “integral and indispensable,” it must be necessary to the principal activity performed and done for the benefit of the employer. Ladegaard v. Hard Rock Concrete Cutters, Inc., 2004 U.S. Dist. LEXIS 16288, *9-10 (N.D. Ill. 2004) (internal citations omitted). 10

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Under the Portal-to-Portal Act, employers are not required to compensate employees for time spent changing clothes at the beginning or end of the workday unless changing clothes is an integral and indispensable part of the worker’s principal activities of his employment. Stated differently, if a preliminary activity, such as changing clothes, is “integral and indispensable” to an employee’s principal activity, then the activity is itself a principal activity, both for the purpose of determining what time is compensable and when the employee’s workday begins. IBP, Inc. v. Alvarez, 546 U.S. 21, 33-37 (2005). When the donning and doffing of required protective gear is compensable as an “integral and indispensable” part of an employee’s principal activities, the time spent walking to and from the production floor following donning and before doffing and time spent waiting to doff is compensable. On the other hand, the time an employee spends waiting to don protective gear at the beginning of his workday is excluded as a preliminary activity. Section 203(o) of the FLSA, however, states that the time spent changing clothes or washing at the beginning or end of each workday is excluded from compensable time if it is treated as nonwork time by a collective bargaining agreement. 29 U.S.C. § 203(o).


Supreme Court Precedent and the DOL Flip-Flopping

HR Best Practices

In 2005, the United States Supreme Court heard a donning and doffing case – IBP v. Alvarez, which involved poultry plant workers who argued that the time it required them to put on and take off their protective gear should be included in their wages under the FLSA, as amended by the Portal-to-Portal Act. The Supreme Court agreed with the workers, holding that the donning and doffing of protective gear was “an integral and indispensable part of the principal activities” of the poultry workers’ job (in addition to walking to and from their changing rooms) since they could not perform their job without putting on and taking off their protective equipment. In Alvarez, the Supreme Court made explicit that employers must generally pay for: (1) time spent donning and doffing unique protective gear or clothing; (2) time spent walking from a company locker room after putting on such equipment; (3) time spent walking to the company locker room before taking off such equipment; and (4) time spent waiting to take off any such gear or clothing. In other words, if an employee is required to wear certain protective gear to perform his job, then the employer must pay that employee from the time the worker begins to don his protective gear/clothing through the time it takes for him to doff this protective gear/clothing.

So what does all of this mean? If you are a non-union employer who requires your employees to wear protective equipment, gear, and/or clothing to perform their respective jobs, you, along with your labor and employment legal counsel, may want to evaluate the following:

Just last year, the United States Supreme Court addressed another donning and doffing case – Sandifer v. U.S. Steel Corp., albeit in a union employer setting. 134 S. Ct. 870 (2013). In this case, union workers spent a significant time getting dressed for work. Specifically, they were required to wear flame-resistant jackets, pants, hoods, hard hats, gloves, wristlets, leggings, steel-toed boots, safety glasses, and ear plugs. In Sandifer, the Supreme Court found that “changing clothes” includes both putting on substitute clothing but also “altering dress.” Additionally, the Supreme Court adopted a very broad interpretation of the word “clothes,” holding that the word “clothes” in Section 203(o) denotes items that were both designed and used to cover the body and were commonly regarded as an article of dress. Therefore, per this broad definition, donning and doffing certain protective gear like flame-retardant jackets and pants, a hood, a hard hat, snood, wristlets, work gloves, leggings, and metatarsal boots could be excluded under Section 203(o) via a collective bargaining agreement. Sandifer, 134 S. Ct. at 879-80. On the other hand, according to the Sandifer court, safety glasses, earplugs, and a respirator do not constitute “clothes” within the meaning of Section 203(o) because they are not commonly regarded as articles of dress. Sandifer, 134 S. Ct. at 880. Therefore, because these items are not commonly regarded as articles of dress, the Court held that time spent donning and doffing respirators, that “are kept on as needed at job locations,” is compensable as a part of the employee’s normal workday, and therefore, is beyond the scope of Section 203(o). Sandifer, 134 S. Ct. at 881. In addition to the Supreme Court’s recent cryptic and clear as mud holding in Sandifer, the Department of Labor has flip-flopped on its definition of “clothes changing” compounding the confusion for employers. Specifically, what is included in the definition of “changing clothes” and whether an employer can exclude this time pursuant to a collective bargaining agreement has changed under each administration since 1997. Under the Clinton administration, the agency took a very narrow view of the meaning of clothes under Section 203(o). During the Bush administration, however, the Department of Labor adopted a broad view of the definition and added that clothes-changing time excluded under Section 203(0) could not be a principal activity under the Portal-to-Portal Act altogether. Nonetheless, under the Obama administration, the agency reverted back to its narrow interpretation that it had adopted under the Clinton administration. Additionally, the agency specifically rejected its prior position from the Bush era on principal activity.

• What type of protective equipment, gear, and/or clothing the employees are wearing; • Whether your employees have to change into this protective equipment, gear, and/or clothing onsite before going to their respective work stations; • Whether changing into these items is “integral or indispensable” to your employees’ principal activities; and • Evaluating your policies and procedures regarding same to clarify what is compensable. If you are a union employer who requires your employees to wear protective equipment, gear, and/or clothing, and changing into these items is excluded by your collective bargaining agreement, you still may want to look at your policies and procedures in light of the Sandifer decision. As emphasized above, complying with the Fair Labor Standards Act/Portalto-Portal Act is no easy task for employers, especially with respect to the donning and doffing issue. If you have any questions, please consult your employment attorney for advice.

Courtney Leyes, Attorney Fisher & Phillips, LLP CLL@laborlawyers.com www.laborlawyers.com

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11


The Case for Hiring

Emotionally Intelligent People

By HARVEY DEUTSCHENDORF

R

esearch by the respected Center for Creative Leadership (CCL) in the United States found that the primary causes of executive derailment, involve deficiencies in emotional competence. Each year CCL serves more than 20,000 individuals and 2000 organizations, including more than 80 of the Fortune 100 companies. It says the three main reasons for failure are difficulty in handling change, inability to work well in a team, and poor interpersonal relations. International search firm Egon Zehnder International analyzed 515 senior executives and discovered that those who were strongest in emotional intelligence were more likely to succeed than those strongest in either IQ or relevant previous experience. Research that has been done on the relationship between emotional intelligence (EQ) and IQ has shown only a weak correlation between the two. The Carnegie Institute of Technology carried out research that showed that 85 percent of our financial success was due to skills in “human engineering�, personality, ability to communicate, negotiate and lead. They found that only 15% due to technical ability. In other words people skills or skills highly related to emotional intelligence were crucial skills. Nobel Prize winning Israeli-American psychologist Daniel Kahneman found that people would rather do business with a person they like and trust rather than someone they don’t even if that that person is offering a better product at a lower price. To test out his findings think of the last time you purchased a major item, a home, automobile or large appliance where you had to dealings with a salesperson. Was the person someone who you liked and trusted? In my talks I have found that whenever I asked that question, inevitably the entire audience answered that yes the person 12

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they bought a large item from was someone they liked and trusted. This theory about why salespeople with the right people skills do better than whose who lack them is borne out by a study carried out by the Hay/ McBer Research and Innovation Group in 1997. In a study carried out in a large national insurance company in 1997 they found that sales agents weak in emotional areas such as self-confidence, initiative and empathy sold policies with an average premium of $54,000, while those strong in 5 of 8 emotional competencies sold policies on the average worth $114,000. Much of the research that has been done on emotional intelligence has been at the executive leadership level. The higher up the organization the more crucial emotional intelligence abilities are as the impacts are greater and felt throughout the entire organization. There have been some studies, however, that show impacts at all levels. For example, a study by McClelland in 1999 showed that after supervisors in a manufacturing plant received training in emotional competencies such as how to listen better, lost-time accidents decreased by 50% and grievances went down from 15 per year to 3. The plant itself exceeded productivity goals by $250,000. The same principles apply in all areas of life, whether at work or in relationships. Everyone wants to work with people who are easy to get along with, supportive, likeable and can be trusted. We want to be with people that do not get upset easily and can keep their composure when things do not work out according to plan. What do we look for and how do we hire emotionally intelligent people? The first thing that is essential for any degree of emotional intelligence is self-awareness. People with a high degree of self-awareness have a solid understanding of their own emotions, their strengths, weaknesses and what drives them. Neither overly critical nor unrealistically hopeful, these people are honest with themselves and others. These people recognize how their


feelings impact them, other people around them and their performance at work. They have a good understanding of their values and goals and where they are going in life. They are confident as well as aware of their limitations and less likely to set themselves up for failure. We can recognize self-aware people by their willingness to talk about themselves in a frank, non-defensive manner. A good interview question is to ask about a time that the interviewee got carries away by their emotions and did something they later regretted. The self-aware person will be open and frank with their answers. Self-deprecating humor is a good indicator of someone who has good self-awareness. Red flags are people who stall or try to avoid the question, seem irritated or frustrated by the question. After self-awareness is the ability to self-regulate emotions. We all have emotions which drive us and there is nothing we can do to avoid them. People who are good at self-regulation, however, are able to manage their emotions so that they do not control their words and actions. While they feel bad moods and impulses as much as anyone else, they do not act upon them. People who act upon their negative feelings create havoc, disruptions and lasting bad feelings all around them. We feel before we think and people who constantly react from an emotional state never wait long enough to allow their thoughts to override their emotions. People who selfregulate have the ability to wait until their emotions pass, allowing them to respond from a place of reason, rather than simply reacting to feelings. The signs of someone who is good at self-regulation are reflection, thoughtfulness, comfort with ambiguity, change and not having all the answers. In an interview look for people who take a little time to reflect and think before they answer. Empathy is another important aspect to look for when hiring. Someone who has empathy will have an awareness of the feelings of others and

consider those feelings in their words and actions. This does not mean that they will tiptoe around or be unwilling to make tough decisions for fear of hurting someone’s feelings. It simply means that they are aware of, and take into consideration the impact on others. They are willing to share their own worries and concerns and openly acknowledge other’s emotions. A good way to look for empathy in an interview is to ask a candidate about a situation where a co-worker was angry with them and how they dealt with it. Look for a willingness to understand the source of the co-workers anger, even though they may not agree with the reasons for it. Social skill is another area of emotional intelligence that is highly important in the workplace. To have good social skills requires a high level of the other skills aforementioned as well as the ability to relate and find common ground with a wide range of people. It goes beyond just friendliness and the ability to get along with others. People with social skills are excellent team players as they have the ability to move an agenda along and keep focus while at the same time remaining aware of the emotional climate of the group and possess the ability to respond to it. These people are excellent at making connections, networking and bringing people together to work on projects. They are able to bring their emotional intelligence skills into play in a larger arena. To look for social skills in an interview ask questions related to projects and difficulties encountered around varying agendas, temperaments and getting people to buy in.

Harvey Deutschendorf Emotional Intelligence Expert, Speaker, and Author of The Other Kind of Smart Harvey.eiguy@shaw.ca www.theotherkindofsmart.com Twitter@theeiguy

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Workplace Violence Employers Can Reduce Their Risks By LORI SEVERSON and LARRY POAGUE

Workplace violence is a national concern. No industry is free of the possibility of a severe workplace violence event. Frequently we hear of workplace violence (WPV) events in the news and read about them via social media. We empathize with those employers involved in shootings in movie theatres, schools, malls, and hospitals. As an employer, and a business, everyone is asking ‘what can I do?’

The Scope of the Problem Each year in the United States, an average of 700 workers are killed while at work.1 The Bureau of Justice Statistics’ National Crime Victimization Survey (NCVS) estimated the number of nonfatal violent crimes occurring against persons 16 or older while they were at work in 2009 at 572,000.2 The National Institute of Mental Health (NIMH) estimates that 26.2 percent of Americans 18 and over suffer from some form of diagnosable mental disorder in a given year.3 While public opinion is often that the mentally ill are the perpetrators of

Examples

much of the violence we experience, more recent studies suggest that substance abuse, whether within the mentally ill population or outside, is still the strongest contributor to violence.4

Four Levels of Violence The U.S. federal government, through the Centers for Disease Control, Occupational Safety and Health Administration, and the National Institute for Occupational Safety and Health, has categorized violence into four levels to define threat types and prevention strategies.

1. Criminal intent

3. Worker-on-worker

2. Customer/client

4. Personal relationship

All of these types of workplace violence involve behavior that takes place at a workplace that rises to the level of a crime recognized under state and/or federal law.

Industries at Higher Risk

Prevention Strategies

TYPE 1: VIOLENCE BY STRANGERS Verbal threats, threatening behavior, and/ or physical assaults by an assailant who has no legitimate business relationship to the workplace. The stranger enters the affected workplace to commit a robbery or criminal act. Violence by strangers is responsible for the majority of fatal injuries related to workplace violence nationally.

s Retail (late-night) s Cabs/taxis

s Have high levels of security s Silent alarms s Cameras s Lighting s Teach problem anticipation skills s Limit cash on hand

TYPE 2: VIOLENCE BY CUSTOMERS OR CLIENTS Verbal threats, threatening behavior, and/ or physical assaults by an assailant who either receives services from or is under the custodial supervision of the affected workplace or the victim. Assailants can be current or former customers or clients such as passengers, patients, students, inmates, criminal suspects, or prisoners. Clients or customers may be “situationally” violent and are provoked when they become frustrated by delays or by the denial of benefits or social services.

s Services to the public, municipal bus, or railway drivers s Healthcare s Social service providers, teachers s Sales personnel s Public or private sector service team members s Law enforcement personnel

s Prevention focuses on appropriate staffing and specialized training s Limit cash on hand s Teach problem anticipation skills s Have higher levels of security staff/ technology s Barriers s Silent alarms s Call-in procedures s Vehicle tracking/GPS s Lighting s Buddy systems

s All industries

s Policy of zero tolerance for threats s HR employee assistance programs s Security for HR and leadership s Cameras on property s Crisis management plans, practice drills s Management training in identification and action

TYPE 3: VIOLENCE BY COWORKERS Verbal threats, threatening behavior, or physical assaults by an assailant who has some employment-related involvement with the workplace. A current or former employee, supervisor, or manager. Any workplace can be at risk of violence by a co-worker. In committing a threat or assault, the individual may be seeking revenge for what is perceived as unfair treatment.

TYPE 4: VIOLENCE BY PERSONAL RELATIONS Verbal threats, threatening behavior, and/ or physical assaults by an assailant who, in the workplace, confronts an individual with whom he or she has or had a personal relationship outside of work. Personal relations include a current or former spouse, lover, relative, friend, or acquaintance. The assailant’s actions are motivated by perceived difficulties in the relationship or by psycho-social factors that are specific to the assailant.

s All industries

s Having a written policy statement no threats and violence and complementary policies regulating harassment and drug and alcohol use s Have current physical security survey and assessment of premises s Procedures for addressing threats and threatening behavior s Designation and training of an incident

response team(s) s Access mental health professionals through employee assistance programs s Training of management and employee groups s Crisis response measures and drills s Consistent enforcement of behavioral standards, including effective disciplinary procedures

Currently, violence in the workplace is an unregulated safety hazard but not one without OSHA’s oversight. Under the Federal OSHA General Duty Clause, employers can be sited for the lack of a WPV program if violent incidents are occurring. Lockton Risk Control Services offers these strategies and case examples to help you manage WPV exposures. 14

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Strategies

Internal Layer

Liquor Liability Insurance

When implementing a security strategy, one of the important aspects to consider is sustainability. While any organization can create a temporary lockdown mode, it would be impossible to conduct business or maintain this level of security indefinitely. Security has cost, both direct and indirect. The art is to balance the level of security with the cost both fiscally and publicly.

Review current policies and procedures for effectiveness, such as:

Protects your business against loss or damages claimed as a result of a patron of your business becoming intoxicated and injuring themselves or others. It is typically excluded under a standard general liability policy.

Layers of Security To start your assessment, you should work with a multidiscipline team in and outside your organization to identify and counter possible threats. One method is to look at security as layers from the outside in.

Outer Layer Look at the outer layer as your first line of defense. This can consist of neighbors, lighting, cameras, and fencing. In relation to the other businesses in the area, how do you appear? Does your business appear to be well-organized and secure? Are your preventive measures sufficient when compared to other businesses in your neighborhood? Are your cameras in a noticeable location? Unless your cameras are actively monitored, they won’t assist in prevention, but they may discourage as a warning of possible prosecution.

Middle Layer Assess the response times of local law enforcement. Review what type of public access programs you need for business success but are able to control when possible. Are there additional measures you can add that allow access but increase security such as guards, controlled access points, cameras, barriers or, population control?

Organization-Title

Access Controls: Especially with employees who have been terminated. Are access codes and cards immediately turned off ? Are keys and other means of access turned in? How do you recognize visitors, clients, and employees that are no longer allowed access? Workplace Climate: What types of harassment are present and perhaps encouraged? Are threats of violence tolerated? How well is your employee assistance program (EAP) utilized? Can your security perform arrests? Are employees willing to ask for help? Response: Conduct table-top exercises to review possible responses to different “what if ” scenarios. Provide training to employees specific to your environment on how to deal with these incidents. Postincident: Develop a list of resources that you can call on to assist employees with recovery and reestablish business operations. Solutions/Resources: Many prevention resources exist to assist employers in understanding the scope of the problem and developing comprehensive programs.

Risk Financing Because all WPV incidents can’t be predicted nor prevented with certainty, risk transfer must be considered. A combination of these lines of coverage are reviewed and customized with clients when designing the risk financing piece of the WPV program. However, not all incidents can be predicted or prevented; therefore, risk transfer should be considered. From a liability standpoint, there is a combination of coverages to consider when evaluating coverage for a workplace violence incident.

Special Event Liability Insurance Also referred to as CGL, commercial general liability, or spectator liability, is an insurance policy designed to provide broad protection for situations in which an event holder or concessionaire must defend itself against lawsuits or pay damages for bodily injury or property damage to third parties.

Workplace Violence Expense Coverage Provides coverage for expenses arising from postincident crisis management, such as crisis management and employees’ counseling. Additionally, the loss of business income could be covered following a workplace violence incident if there is a financial loss.

Fidelity/Crime Insurance Protects organizations from loss of money, securities, or inventory resulting from crime. Common Fidelity/Crime insurance claims allege employee dishonesty, embezzlement, forgery, robbery, safe burglary, computer fraud, wire transfer fraud, counterfeiting, and other criminal acts.

Kidnap, Ransom, and Extortion Insurance Provides coverage for a kidnapping and/or other events through a combination of financial indemnification and expert crisis management. A basic policy can cover items such as ransom payment, loss of income, interest on bank loans, and medical/psychiatric care.

Website

Violence Prevention Resources

FBI: The monograph “Workplace Violence: Issues in Response”

http://www.fbi.gov/stats-services/publications/ workplace-violence

s Overview in U.S.

CDC: Center for Disease Control Violence Prevention

http://www.cdc.gov/ViolencePrevention/

CDC: View the Workplace Violence Prevention for Nurses On-Line Training OSHA: Occupational Safety & Health Administration

http://wwwn.cdc.gov/wpvhc/Course.aspx/ Slide/Unit1_1

s s s s s s

Department of Homeland Security: Active Shooter Response

https://www.dhs.gov/video/ options-consideration-active-shooter-training-video

https://www.osha.gov/pls/publications/ publication.athruz?pType=Industry&pID=231

Child Maltreatment Elder Abuse Global Violence Intimate Partner Violence School Violence Nurses in healthcare

s Sexual Violence s Suicide s Youth Violence s Violence Prevention Overview

s Healthcare and Social Service Workers s Taxi and For-Hire Drivers Fact Sheet s Late-Night Retail Establishments s Locations with Multiple Employees

Conclusion With population expansion, introduction of new, even more addictive drugs, and uncertain economics, it appears that the percent of those willing to resort to deadly violence has increased. Employers must address the reality that random acts of violence may occur but as a team they can reduce the potential through review and insurance coverage planning. Take time to complete an internal review of your organization’s outside-in protection strategies using the resources listed in this paper. Contact your Lockton Associates to help answer any questions that arise from your review. Time spent in WPV risk reduction may have multiple benefits. References 1. CDC, http://www.cdc.gov/niosh/topics/violence/ 2. R ugala, Eugene A. Preventing Workplace Violence in Healthcare Settings, October 10, 2004, retrieved January 3, 2011 from http://www.nuesoft.com/news- events/podcast/prevent-workplace-violence-healthcare.html. 3. K essler RC, Chiu WT, Demler O, Walters EE. Prevalence, severity, and comorbidity of twelve-month DSM-IV disorders in the National Comorbidity Survey Replication (NCS-R). Archives of General Psychiatry, 2005 Jun; 62(6):617-27. 4. S tuart, Heather NCBI, World Psychiatric Association, June 2003 http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1525086/

Ashley Pace

Lockton’s Memphis Office 901 757 6902 apace@lockton.com

Brad Owens

Lockton’s Memphis Office 901 757 6901 Bowens@lockton.com www.HRProfessionalsMagazine.com

15


How to Decide Between

Two

O

Candidates

Equally Qualified

By ALISSA PARR

ne of the common problems we encounter throughout the hiring process is being able to find candidates who have all the skills necessary to perform successfully on the job. For example, candidates may have the technical skills, but lack some of the leadership skills required for the position. Or, candidates may have the interpersonal skills and work ethic, but may fall short on safety orientation. When candidates have significant weaknesses in critical competencies, they are removed from the process and we have to continue on with the search. However, there are some occasions when we experience a different type of problem. This occurs when we find ourselves with two candidates who are both well-qualified for the job. Both of the candidates have all the skills and ability to do the job well and therefore each could be an asset to your workforce. While this isn’t the worst problem to be in by any means, it’s still a hard decision to make. We know that the cost of a poor hire can be great. Based on some research conducted by the US Department of Labor and Statistics, we know that the average cost of a poor hiring decision is 30% of the employee’s first year potential earnings. This is a fairly conservative estimate after considering other subtle effects poor hires can have on the organization. For example, the poor hire’s impact on coworkers, customers, and overall morale can elicit negative effects, even though the costs may not be as apparent initially. Putting all of this into perspective, merely flipping a coin may not be the best way to decide between these two candidates. So, how do you decide between these two equally qualified candidates? One of the information points that is valuable to collect throughout the hiring process is motivational fit. Motivational fit occurs when there is an alignment between a candidate’s interests for a job and beliefs about work and a job’s expectations or organization’s values. In particular, there is greater motivational fit when the candidate demonstrates an interest in performing the job tasks and expresses satisfaction with the working conditions and organizational expectations and values. For example, if the job requires someone to engage in a variety of tasks in a fast-paced environment, it would be best to find a candidate who expresses interest in these elements because there would be higher levels of motivational fit. We know that when there is a good match or alignment between employees and the job/organization, the employee is much more likely to be satisfied with

16

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the job, to show up to work on time, and to stay on the job. The chances that the employee would leave when there are high levels of motivational fit are very low. After knowing that the candidates have the skills necessary to perform on the job, motivational fit is a good way to determine if that candidate will stay and be happy on the job. This is also a good way to differentiate between two qualified candidates. If one candidate is seeking a role that has a lot of structure and little variety, but the job requires someone to be autonomous and to complete different tasks often, there would be poor alignment. If the other candidate is seeking a role that allows for independence and has variety, then there would be greater alignment to the job. The first candidate would not be as satisfied with the job as the second candidate and may ultimately leave the job if he or she came onboard. Therefore, hiring the well-qualified candidate, who also has a good fit for the job, would be a better decision in the end. Motivational fit can be effectively measured during a structured interview. Posing questions such as what aspects of their current job they find satisfying or what types of tasks they find dissatisfying in a job, can give you a good idea of the candidate’s interests. You can get a sense for their level of motivational fit by comparing what they say to what the job offers. For example, if you know the job will involve a lot of teamwork, you may want to see if the candidate prefers working independently or with others. If the candidate prefers to work by themselves on projects, then his level of motivational fit is lower. That candidate would not enjoy the tasks as much as someone who prefers collaboration on work projects. As such, this candidate may not be good for the role in the end because he is less likely to stick with the job. Additionally, you should go beyond elements of the job itself and talk about compensation, benefits, advancement opportunities, and organizational culture. How they react or respond to your questions and comments can be very insightful. For example, if there are very limited opportunities for promotion from the target job, you should make this apparent. If the candidate’s goals are to rise to more leadership roles, then this would not be a good match. All of these pieces of information about the candidate’s interest about the job and organization can provide you a good indication of the candidate’s motivational fit. When there is more alignment, you can be more confident that the candidate will be happier and more likely to stay on the job. Even though you can incorporate targeted questions throughout a structured interview, it’s also important to recognize that you can get a sense of a candidate’s motivational fit throughout the whole interview and through the entire hiring process. Always be attuned to what they talk positively and negatively about to get a sense for whether this fits with the target job and your organization. All of this being said; it’s critical that you make sure that candidates have the skills required for the job first. Motivational fit can help to differentiate between two good candidates, but cannot make up for significant limitations that a candidate may have in an area that is critical for job performance.

Alissa Parr, Ph.D., Consultant Select International aparr@selectintl.com www.selectinternational.com


W

Solving Problems for Businesses and Employers

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How Social Media Is Changing

The Landscape of Recruiting

By THERESA J. ALLEN

F

or many, many years employers relied largely on word-of-mouth and referrals for recruiting job applicants. Job boards were common place for internal postings. While each of these snail’s pace methods have been effective in the past, and certainly still are today, they are confining to employers. If you are not expanding beyond these processes, there is a pretty good chance you will miss hiring or, at the very least, interviewing a “perfect” applicant simply because you are limiting your recruiting options. It’s time to step up your game so you can optimize your visibility. With the onset of the financial crisis and high unemployment in 2008, job seekers were forced to look beyond newspaper ads and job fairs. Frantically, they began using every angle available to get their profile and career experience in the face of hiring companies. They took to social media fast and furious. Savvy employers recognized this pattern and began poking around sites such as Facebook, LinkedIn and Twitter to seek out potential new hires. These virtual marketplaces are legitimate avenues which can help you discover new talent. Beyond that, the sites can help shape a job seeker’s impression of your company. On the flip side, they can assist you in shedding some light on candidates and determining whether they would be a good fit for your company. They are low cost (free in some instances) and hasten the hiring process exponentially. But to recruit and vet applicants through this technological tool, employers need to prepare and proceed carefully and wisely.

If you have the capability, manpower and, for some, the luxury, consider creating a social media team to help manage the posting traffic you will have from responses, replies, tweets and retweets. Having others on board as an extra set of eyes naturally lessens the margin for error if you have the team proof the job posting verbiage for inconsistencies. If possible, personally select your team members. The content being posted will be on behalf of your company so you will want to maintain control. Your comfort level for confidentiality is probably greatest with your human resources employees. Consider starting there when you handpick your team members. The idea of creating a company social media policy for hiring could evolve from this collaboration as well. “Unity is strength” the young poet Mattie Stepanek once wrote. Consider borrowing the inspiring teenager’s positive message when forming your team. You just might discover unusual talent among your employees. Possibly in your midst, there is a wordsmith or two who effortlessly create attention-grabbing job postings simply because they have the flare for knowing where to interject essential key words or trendy terms. You might uncover an employee with a knack for visual effects using their talents to design pictures or videos in 18

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your postings to capture and emphasize your company’s culture. Try covering all bases by recruiting a member of your team who has “tech blood” running through their veins. Their IT skills will help your recruiting project in a variety of ways, some of which include designing programs to track your job posting results, as well as monitoring inappropriate material. Their knowledge in the fast-paced world of technology easily allows them to keep you abreast of the latest breakthrough social media outlets. With your team in place, you then need to decide which site, or sites, you should consider as your avenue for posting the position. Although each site has a different platform, and maybe a slightly different approach to social networking, they essentially accomplish the same thing. Start with the more obvious sites like Facebook and LinkedIn. Micro-blogging sites such as Twitter may not be as big and broad, but they will generate enough interest from the digitally-connected users. For some employers, the most active sites, like Facebook and LinkedIn, may be a little too massive. They fear being swallowed up in the vastness which could potentially lessen their job posting’s impact. If you find yourself in this situation, consider industry-specific sites. There’s a plethora of niche networks out there that cater to nearly every industry known to the human race (e.g., moving and storage, event planning, real estate, and accounting). They are popping up on the internet on a regular basis. The industry-specific social networking sites give you the capability to exclusively connect and converse with professionals from your industry. There’s a frenzy of activity on the sites between users with their opinion sharing, venting and information gathering. That whirlwind of activity can only work to your advantage when seeking possible job candidates. Fast-forward a few weeks. You, or you and your social media team, have successfully done your job and one or maybe a few possible applicants have surfaced. Should you continue to use social media for researching the very applicants you just recruited? Care must be taken when researching applicants as the potential for uncovering legally protected information is quite high. You and your executive team should discuss and determine beforehand how far into the virtual world you want to go when researching a potential employee. Legal counsel should definitely have input into the path you decide to take in this venture. Ultimately, focusing on the actual job qualifications and not the individual characteristics will be your best bet to stay out of legal trouble. There is no doubt everyone agrees that social media will help attract applicants and increase a company’s visibility as an employer seeking viable candidates. The secret is working around and through the maze of ways to do it successfully.

Theresa J. Allen Wellness & Compliance Coordinator Certified PPACA Professional Regions Insurance, Inc. Theresa.Allen@regions.com www.regions.com


Can we charge employees more if they are tobacco users?

I think so, but I’m not sure.

How would we verify if they quit?

Good question. Who can we call to find out?

Finding More Questions than Answers? When it comes to managing your employee benefits program and the Affordable Care Act, it can seem like every answer only leads you to more questions. Let Regions Insurance’s ACA-trained professionals guide you down the right path – because it’s our business to run defense for your business. Tom Hayes

Katrina McKinney

Employee Benefits Practice Leader tom.hayes@regions.com 479-684-5259

Sales & Marketing Coordinator katrina.mckinney@regions.com 205-264-7177

www.regionsinsurance.com

The Coverage You Need. The Guidance You Trust.

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Find Regions Insurance offices in these states: Alabama, Arkansas, Florida, Georgia, Indiana, Louisiana, Mississippi, South Carolina, Tennessee and Texas ©2015 Regions. Regions Insurance is an affiliate of Regions Bank. Products and services are offered by Regions Insurance, Inc., and underwritten by unaffiliated insurance companies.


Describe the evolution of Stephens’ approach to workforce wellness since the implementation of the Affordable Care Act. CONARD: We believe that the future of effective health benefit intervention is individualized and personalized. The trend in health benefits is getting away from big blanket programs and moving toward figuring out for each individual what is it they would benefit from. KANE: I think a lot of employers are frustrated that they spend all this money on their health insurance plan, and yet their employee population gets sicker every year. There was a lot of energy before the Affordable Care Act, and the ACA increased the amount of allowable incentives that an employer could provide within their wellness program, from 20 percent to 30 percent of the health insurance cost.

How is Stephens’ approach to wellness different from other brokerage firms’?

Personalized Strategies for Health Benefits Can Lower Costs and Improve Employee Wellness Interview by CHIP TAULBEE

O

ne-size-fits-all strategies for employee health benefits have not only proved costly – those premiums continue to rise – but also ineffective at maintaining or improving employee health. At Little Rock, Arkansas’ Stephens Insurance (an affiliate company of Stephens Inc.), a more targeted methodology has taken hold.

Tom Kane, a Senior Vice President at Stephens Insurance, has worked with employer clients on developing and executing their benefit plans for more than three decades and understands the advantages of tailored, effective solutions. “We want our clients that offer coverage under the ‘pay or play’ mandate to have strategies where they can play smart,” Kane said. “If they can do that at a cost that is lower than their competition, they have a distinct advantage in attracting and retaining employee talent.” For Stephens, playing smart means finding tailored, targeted solutions for clients’ workforce wellness, a practice otherwise known as corporate population health management. Kane and Dr. Scott Conard, Chief Medical Officer, share how their approach saves clients’ money while improving the health of their workforces. 20

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KANE: With the wellness movement, much of what’s going on today is a shotgun approach, driven by a lot of communication and participation. What we typically find in those types of plans is the guy who is running marathons is going to be your number one participant, but those that have the disease that we need to address are typically harder to engage. By having a more targeted approach, we think that we’ll be more effective.

In practice, how do you go about this more personalized approach to population health management? KANE: The first step that we want to take with our employers is to get data that is specific to their group – and that data, for the most part, comes from their medical and prescription drug claims – so we can see what’s going on inside that population. We want to know what are the chronic illnesses and what are individuals within that population doing to manage those chronic illnesses. Then we look at how to structure the health plan, with incentives (or removing disincentives) for people to be in compliance with their chronic disease management. CONARD: The data aggregation really lets us be an agent of change and help figure out who needs what, when and how and then start to bring those resources to the individual person to win with their health.


What are you looking for in a population’s health data? CONARD: We look at the data then show the company what’s wrong: here’s what’s going to cost you a lot of money and here’s what we see the problems are. Then we make recommendations to put things in place to give you the levers that you can pull to effectively alter the outcome, rather than just giving people health insurance and saying good luck. So we come with a specific set of recommendations that we would do this in the first year, this in the second year, this in the third year, and we’re going to watch the data the entire time so you can see if it’s working, how it’s working and what we need to do to make micro adjustments as we go along to right the ship.

What kind of steps could Stephens recommend to affect the health of a particular workforce? CONARD: At Stephens there are about 10 things we have in our toolbox that we know work, and we are probably only going to recommend three, at most four, of the 10 things in the first year. You figure out the problem. You put a plan in place. You watch the data to see if it’s being effective. If it is, wonderful. If it’s not, you fine tune or figure out how to communicate differently or encourage and support. And you walk through the next three years adding more tools as needed in order to have people do three things. At Stephens we decrease the burden of disease in the population so less people are charging into illness and disease. We take a disease that people already have and give them effective tools to manage that disease much more effectively. And third, we give people tools to use the system much more effectively. We empower them with transparency, and we do all of that in the setting of accountability. So we, the brokerage firm, are accountable. We are asking the company to step up and be accountable and provide all these tools. And we ask the individual to be accountable and get rewarded if they take control of their health.

And employee participation is voluntary? KANE: There’s a targeted outreach to the individual, and they have to agree to participate in the program, so it’s not something we’re going to do without their buy-in and permission.

What health issues have you found to be easiest to affect or affect with the greatest results? KANE: Every organization is going to be different and have different needs, and that’s why it is important to have a strategy that is specific to their population. But for the most part, across most industries and most groups what we found to have the most impact is addressing metabolic syndrome, because that has multiple disease states, from diabetes, high blood pressure, even cancer is affected by metabolic syndrome. CONARD: That is definitely the biggest leverage point for decreasing costs and improving the quality of life for employees. As far as what is the easiest to do, there are some outstanding vendors in the pharmacy arena, in the advocacy arena and so forth that actually make it easier for the HR staff at the company to do their jobs. It is not only effective, it also improves the lives of people on the HR team, which we like to do at Stephens.

Can this personalized approach to workforce health work for any kind of organization? KANE: It can work for any organization, but what we have found is that it is probably going to be more effective for larger organizations that are able to partially self-insure their health plan because they can see the direct impact of the program on their cost. They have total access to their data, whereas a smaller company with a fully insured health plan may have a harder time tracking the effectiveness of their program. CONARD: We have really been working to build their confidence because at Stephens we want to be partners with the other important teammates that are necessary to take care of the employees. And the payers, of course, are vital and we really want to partner with them. We’re very excited that over the last six months, some key payers, even in the fully insured marketplace, are actually opening their minds to being more of a teammate in this process, which allows our process to move ahead very quickly.

What’s a good starting point for an organization that wants to improve the health of its workforce? KANE: They really need to look at who their advisors are and make sure they are partnering with an advisor who is able and willing to change the conversation. A lot of advisors out there are very uncomfortable having this conversation because they are afraid that they may have to provide more service, and they may not have the expertise. So once that conversation begins, you have to have those resources, and at Stephens we do. CONARD: If you don’t ask the right questions, it’s very hard to get the right answers. We encourage the decision makers to ask the right questions: How am I preventing new diseases from hurting my employees? How do I better manage the diseases my employees currently have? And, how do I help empower people to use the health care system effectively? If they are asking those three questions and putting systems around them, they are going to see their health care spend go down because their employees are healthier. If they are asking the question, “How do I spend less money on health benefits?” and they’re coming up with answers like changing the plan design or moving more of the burden onto employees or cutting back on benefits, they are asking the wrong question, and they are going to always end up with the wrong answer. So you have to have a broker that can help you answer the right questions.

Tom Kane, CLU, CEBS Senior Vice President Stephens Insurance, Inc. StephensBenefitsGroup@stephens.com

Scott Conrad, MD Chief Medical Officer Stephens Insurance, Inc. StephensBenefitsGroup@stephens.com

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Wrap Documents and Form 5500 Filings By BEN ROBBINS

Do wrap documents and Form 5500 filings get you all tied up in knots? You’re not alone. Failing to understand and comply with these ERISA requirements around your welfare benefit plans not only can cost HR professionals a lot of unnecessary time and concern, but also cause your company to have to ‘wrap up’ an expensive gift to government coffers in the form of stiff penalties. Group-sponsored welfare benefit plans, whether self funded or fully insured, are required by ERISA to distribute a Summary Plan Document (SPD) to all plan participants. I think that most employers are aware that the sponsoring employer has to decide how best to communicate Plan information to employees in a manner that is both compliant and effective. The problems start when the employer is not as aware that most insurance contracts, certificates of insurance, and benefits summaries do not by themselves contain all of the language required to meet ERISA requirements for an SPD. Insurance documents often fail to protect the Plan sponsor – and that’s not surprising, when you think about it, since when drafting the insurance documents, the carrier is focusing on complying with insurance laws, not with ERISA requirements. Employers can also run into this problem with Plan benefits provided by third-party service providers other than carriers. That’s where wrap documents come in. The wrap document formally accompanies – “wraps” around – existing documentation to supply missing information that is required by ERISA. (Common examples of ERISA-required information not included in an insurance booklet are Plan number, Plan year, employer tax ID number, and fiduciary contact.) Wrap documents supplement the documentation provided by the carrier or other service provider and can be used to bundle multiple benefits together into one Plan. Notice I said that wrap documents can be used to bundle multiple benefits into one Plan. Both fully insured and self funded plans can be united in any combination under what is referred to as a “mega wrap” or “umbrella” wrap document. For example, insurance policies and self-insured Plan descriptions can be grouped under a single mega wrap document to create a combined SPD that is fully compliant with ERISA requirements. 22

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Beyond the more obvious administrative convenience, mega wraps can serve to greatly reduce the number of Form 5500 filings a company has to make each year. All plans covered by a single mega wrap document can be combined in a single Form 5500 filing. Form 5500 filings are required for health and welfare benefit Plans that have at least 100 participants on the anniversary date each year, except for those sponsored by government and church groups. Unless you have wrapped up multiple qualified plans in a single mega wrap or umbrella document, you must file one Form 5500 for each Plan. In meeting with companies throughout Arkansas, it’s rare for me to encounter company officials who aren’t seeking ways to cut down on the quantity of their Form 5500 filings. On the other hand, I also encounter those who don’t realize they are at risk of major Department of Labor (DOL) penalties because they haven’t been filing enough of them.

QUICK OVERVIEW: Plan Documents for ERISA Welfare Benefit Plans For ERISA welfare benefit plans, the term “Plan Documents” refers to four separate documents: the Plan Document itself, the Summary Plan Description (SPD), the Adoption Agreement, and the Summary of Material Modification (SMM). The Plan Document is needed to create the Plan. The SPD communicates the Plan’s contents to participants. The Adoption Agreement is how the Plan is formally amended. Finally, the SMM communicates to participants the amendments made by the Adoption Agreement. If an ERISA welfare benefit Plan exists, a written Plan is required so that employees may examine it and determine their rights and obligations under the Plan. This document also provides the Plan administrator guidelines by which to make decisions. Plan Documents must include these provisions:

Generally, unless an extension has been granted, Form 5500 must be filed by the last day of the seventh month following the end of the plan year. For calendar year plans, the deadline is July 31st.

• Named fiduciary

An automatic 2½ month filing extension (e.g. for a calendar-year Plan, to October 15) is available only if applied for on or before the Plan’s original Form 5500 due date. Once the original Plan due date has passed, Form 5500 must be filed through the Delinquent Filer Voluntary Compliance (DFVC) program. The only exceptions are when the IRS, DOL, and PBGC grant special extensions of time under unusual circumstances, such as for companies located in officially declared disaster areas or when the delay is a necessary result of combat service in the U.S. Armed Forces.

• Claims procedures

Penalties for failure to timely file Form 5500 can be costly. In addition to possible criminal penalties for willful failures to file, the Plan administrator is subject to penalties of up to $1,100 for each day a Form 5500 is missing or incomplete. Don’t let ERISA compliance burden your HR personnel and company with unnecessary worry, time, and risk of financial consequences. For more information and assistance with Plan Documents, Wrap Documents, Form 5500, and DFVC filings, consult your ERISA attorney or third-party administrator.

Ben Robbins DataPath Administrative Services Benefits • Payroll • Retirement www.datapathadmin.com Mr. Robbins is not an attorney or tax professional. The information in this article is intended for informational purposes only and should not be relied on as legal or tax advice, as this document cannot and does not address the unique facts and circumstances of your specific situation.

• Procedure for allocation of responsibilities • Funding policy • How payments are made • Amendment procedure • Distribution of assets upon plan termination Additional required provisions for a group health Plan Document include: • COBRA and USERRA rules • HIPAA portability provisions • HIPAA’s privacy and security provisions • Minimum hospital stays after childbirth • QMCSO rules There are obviously many other important provisions that should be included in the Plan Document or incorporated by reference to another document; however, the above provisions are the only ones actually required by ERISA. The Summary Plan Description, or SPD, is the primary vehicle for informing participants and beneficiaries about their rights and benefits under the employee benefit plans in which they participate. Some things must be in the SPD that don’t have to be in the Plan Document. A plan could use the same document for its Plan Document and its SPD, but the document would have to have all the required provisions for both. When a new benefit plan is created, an SPD must be given to participants with 120 days. An updated SPD must be furnished every five years if “material changes” have been made to the Plan Document during that time. Because the SPD is the main mode for communicating Plan contents to participants, the SPD must be understandable to the average participant, must not be misleading, and must make apparent any Plan limits, exceptions and restrictions.

What information must SPDs include? • Plan-identifying information (e.g. name of Plan, Plan sponsor’s EIN, type of Plan, etc.) • Description of Plan eligibility provisions • Description of Plan benefits • Description of circumstances causing loss or denial of Plan benefits • Description of Plan amendment and termination provisions • Plan subrogation or reimbursement provisions • Information regarding Plan contributions and funding • Information regarding claims procedures • Statement of ERISA rights • Offers of assistance in a non-English language (if a certain % of your employees are only literate in the same non-English language) • Explanation of the Plan’s policy regarding recovery of overpaid benefits (if the Plan has this practice) • Explanation of the Plan’s allocation policy for insurer refunds and similar payments These requirements are for all welfare benefit plans. Additional requirements apply to group health plan SPDs. In the event the Plan Document and the SPD conflict, the SPD will generally control. The Adoption Agreement. There are few guidelines for amending the Plan Document. The amendment must simply be in writing and abide by the procedure to amend as laid out in the Plan Document. The procedure that is often contemplated is formal adoption by a board of directors. When the employer goes through the amendment process, the participants must be notified of the same. The Summary of Material Modification. What the SPD is to the Plan Document, the SMM is to the Adoption Agreement. It communicates to participants what amendments have been made to the Plan Document. Furthermore, an SMM must be sent any time there is a modification to a required provision in the SPD. SMMs must be sent within 210 days of a material change, or within 60 days if the change involves a material reduction in health plan services or benefits. In conclusion, all four of these documents together comprise the “Plan Document” in that they each provide ERISA-required information as to the contents of the Plan. Although each piece does not have to mirror the other, they should not be inconsistent or discrepant. www.HRProfessionalsMagazine.com

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P Conference Program Information

Pre-conference activities o 3 Pillars of HR Certificate Program o Webinar – Healthcare Reform Best Practices Conference Sessions o “The Heart and Soul of Leadership” o “A Call to Urgency: 21st Century Leadership Competencies” o “Labor & Employment Law Update” o “Leading Technology Trends Driving Human Resources” o "Strategies to Increase an Organization's Bottom Line" Panel Discussions o “What’s at the Heart of Employee Engagement?” o “Heart Healthy Government Operated Clinics” o “The Art of Wellness Works”

General Information

When: April 14th – 16th, 2015 Where: Park Vista Hotel 705 Cherokee Orchard Road Gatlinburg, TN 37738 The rate is $83.00 per night. One Bedroom Suites are available for $285 per night. Two Bedroom Suites are also available for $375.00 per night. King Suites and Family Suites are available upon request for $183.00 per night. Reservations should be made by March 20th, 2015 to get the conference rate. In order to best serve our attendees, you can make your reservations by calling the hotel directly. The on-line booking code is “PMA”. Telephone: (800) 421-7275 www.tnipma.org Registration: OPENING 03/01/2015

For More Information Contact Alan Jones, Conference Chair at (865)342-3062; or Richard Stokes, Executive Director at (615)532-4956.

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Financial Planning has never been more important than it is today! Changes in the economy, taxes and interest rates have made every financial picture more complex than ever before. We focus on: Financial Needs Analysis Retirement Income Planning Disability Income Protection Life & Health Insurance Long Term Care Insurance Guaranteed College Scholarships College Funding Solutions Executive & Employee Group Benefits Charitable Contribution Strategies

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Efforts to Stop the NLRB’s Ambush Election Rules May Not Succeed

Is Your Company Ready? By TANJA L. THOMPSON

In case you haven’t heard, the National Labor Relations Board (NLRB) has issued new rules for union representation elections. And, if management groups, such as the Chamber of Commerce, are not successful in putting a stop to the new rules, they will go into effect on April 14, 2015. You may be asking yourself, “Is my company ready for the new rules?” Does your company have one or more locations it would prefer to keep union-free? If so, you should act now. The new election rules affect several aspects of the NLRB representation case-handling process. Most notably, the rules accelerate the time from a union’s filing of a petition for an election to the time an election actually occurs. Currently, most elections are held within six weeks from the time a petition is filed. Under the new rules, elections could occur in as little as two to three weeks. The NLRB majority, supported by organized labor, claims the current election process is fraught with delay and new rules are necessary to protect the interests of all stakeholders. Those representing employers disagree. With a significant decrease in time to respond to union organizing at a worksite, you’ll have no time to waste. Companies will have little opportunity to do things like select counsel, train management, assess and prepare legal arguments, or communicate the company’s position to voters. Given this likely new reality, companies should take steps now to prepare for the new rules. Below is a list of ten things companies can do today.

1. Have Your Employee Information Ready Under the new rules, if there is an election, employers will be required to turn over more employee information and they must do so sooner. It first is necessary to determine what information the company has in its possession. The rule requires companies to turn over the following information in the company’s possession: employee names, employee addresses, employee home and cellular telephone numbers, and personal e-mail addresses. Do you have this information in an easily accessible database ready to produce or do various supervisors have lists of employee cell phone numbers or e-mail addresses? Assembling this information within a matter of days may be difficult if you are a large organization or this information is not accessible through established databases. Note that if you don’t have personal email addresses and phone numbers, you are not required to obtain them, but supervisors often have that data for legitimate business reasons.

2. Analyze Potential Bargaining Unit Issues One of the critical limitations for employers under the new election rules is the ability to litigate certain issues, as well as the shortened timeframe in which to do so. As such, employers should seek to determine potential unit issues in advance. For example, under current NLRB caselaw, unions may attempt to organize micro or fractured units. Employers should assess their various job functions and department structures, how those functions interrelate, and how the functions and departments are managed. It is possible that changes could be made to job classifications, job descriptions or organizational structure in advance to defeat piecemeal organizing attempts. Companies also should analyze first-line supervisory positions and attempt to determine whether those individuals are or are not statutory supervisors under the National Labor Relations Act (NLRA). Under the new rules, employers likely will not be able to litigate this issue, so performing this analysis ahead of time and making any necessary changes to help clarify status is crucial. Knowing whether first-line supervisors are in or out of a potential voting unit allows the employer to understand whether these individuals are voters or potential company campaigners during an election, and the corresponding legal requirements that apply. Making a mistake on this issue during an election could mean a voiding a positive election outcome. 26

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3. Develop and Train Rapid Response Teams and Supervisors Companies may choose to develop a rapid response team to respond to union organizing. Rapid response teams for some companies may simply consist of identifying key individuals who receive training on how to respond if activity occurs. Other companies may create highly organized teams consisting of many individuals from operations to human resources, to public relations and security that receive intensive legal and campaign simulation training. Depending on the size and vulnerability of your organization, some type of rapid response team may be warranted. Under the new election rules, the time frame during which a company can train and assemble key personnel to respond to a campaign is significantly reduced. Doing so ahead of time will be critical. Additionally, all individuals who have been identified as statutory supervisors should receive legal training on NLRA issues.

4. Conduct Vulnerability Assessments There are a number of different types of assessments companies can conduct to determine potential vulnerability to union organizing. Companies should learn and understand their options and conduct assessments where appropriate. Worksites can be vulnerable for many reasons including low employee engagement, significant operational changes, poor supervision, or external factors. Knowing when and where to allocate resources, particularly if you have multiple locations, becomes critical under an accelerated timeline.

5. Do Your Homework on the Unions Likely to Target Your Company Just like unions do their homework on companies and their employees, you should do your homework on the unions most likely to target your company. Research those unions. Get to know both their local and international organizations, their representatives and union officials, how they function, their track record in negotiations, how much they charge for union dues, fees, fines or assessments, what their Constitution and Local Bylaws say, how they spend their money, whether they have unfair labor practice charges filed against them by their members or other employers, and their strike history.

6. Forge Relationships Within the Community and Within Your Industry Keep abreast of what is going on in your local community and within your industry. Local groups such as the local SHRM chapter and local Chamber of Commerce can be great information sources to learn of other organizing activity in your area and companies that may be targeted by particular unions. This data may be useful to you in providing early information of possible organizing activity or targeting of your worksite(s). Additionally, industry associations may provide information regarding union organizing activity within your particular industry.


7. Review Your Company’s Policies and Practices One area the current NLRB has continued to target that will affect organizing campaigns is company rules and policies. Time and time again we see the NLRB declare a company’s policies unlawful based on alleged interference with employees’ rights under the NLRA. Having bad policies on the books – even if you are not enforcing them to restrict employees’ legal rights – can form the basis of an unfair labor practice charge and potentially void an employer’s positive election outcome. It takes time to review and revise company policies. Under the new quickie election rules, time will be limited, so policies should be reviewed in advance to cure potential problems.

8. Ensure Your Employees Have a Voice A frequent union campaign message to employees is that the union will get employees “a voice in the workplace.” To effectively counter this campaign message, management must be able to credibly point to an alternative, established process that allows employees a voice in the workplace. This may come in the form of an informal open door policy, employee focus groups, a formal dispute resolution procedure, or even a peer review process. The method by which a company establishes a voice for employees is not important. It’s not necessary to have a formal grievance procedure that is similar to a union contract. What is necessary is that employees are aware of the process, understand and have confidence in the process, and use it effectively to get results with management.

9. Evaluate Your Wage and Benefits Package Most companies regularly evaluate their wage and benefits package to ensure they are competitive within the industry and region, as well as consistent with the economic condition of the business. And, while most union campaigns are not won based on economic issues, wages and benefits that are perceived to be poor by either employees or unions can sometimes cause employees to seek union representation and/or cause a union to focus on the company as a possible target for organizing. Once a group of employees is targeted for organizing, unions will use other issues such as unfair treatment or ineffective communication with employees to win an election. If you think your wages and benefits are a concern and want to address this issue, it should be done before organizing activity ever begins, because after it starts it will likely be too late.

10. E nsure Your Employees Know Your Position on Union Representation Most management representatives understand their company’s position on union representation, but often employees do not. The company should have a clear position that is easily articulated by management and is grounded in the company’s culture of open communication and fair and positive treatment of employees. Once the company’s position is established, employers should not wait until the first signs of organizing to talk to employees about unions. Depending upon your vulnerability, these types of communications likely should begin from day one to deter interest in union organizing, as well as accelerate the learning curve in the event of a quickie election. In summary, the NLRB’s change is a big one – a slow starting employer with 42 days to campaign may prevail in a close election, but may lose an election that occurs 15 days after a petition is filed. While many employers hope challengers to the new rules will prevail, there is a reasonable chance the rules will be upheld. Given that possibility, April isn’t far away, so start evaluating your situation now.

Tanja L. Thompson, Office Managing Shareholder Littler Mendelson, P.C. tthompson@littler.com www.littler.com www.HRProfessionalsMagazine.com

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Dealing with the

H-1B Visa Cap

T

By GREG SISKIND

The H-1B visa is probably the visa employers know best. It’s typically the “go to” visa for employees with at least a bachelor’s degree working in a professional field. On April 1st, USCIS will begin accepting H-1B petitions for the next government fiscal year starting October 1, 2015. It is almost certain that USCIS will issue all 85,000 of the annually allotted H-1B visas within the first week of April and H-1B visas subject to the quota will not be available again for another year. By the time you read this article, it will probably be too late to get H-1B visas in this year’s quota. For some employers, this is the end of the story and getting a visa for a professional worker will not be an option. But there are often alternatives available that may save the day. This article briefly outlines some of the most common strategies to avoid the H-1B cap.

Cap exemption strategies

Non-Immigrant Alternatives to the H-1B Visa

First, it might still be possible to obtain an H-1B by pursuing a strategy claiming exemption from the H-1B cap. Normally, employers that are universities, non-profit research centers and non-profit organizations affiliated with a university are exempt from the H-1B quotas. Assuming the employer is none of these three, it still might be possible to qualify for an H-1B cap exemption if the H-1B employee spends some of his or her time working at a qualified location even if they are employed by a non-qualifying employer. For example, if a business executive is sent by an employer to teach a finance course at a local college that might qualify. Or if an employer sends an employee doctor to spend part of each week working at a student health center at a local university, this might satisfy USCIS.

While the H-1B visa might seem the obvious visa choice for professional workers, it is not always the only one. All of the categories below have no quotas and are available any time of year.

Another strategy for for-profit employers is to find a concurrent employer so the H-1B employee has two H-1B employers. USCIS only requires one of the employers be cap exempt. So, for example, if a person gets a cap exempt H-1B to work part time at a university, they could acquire a full-time position with an employer that is subject to the H-1B cap. 28

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F-1 Visas First, many professionals being recruited are on F-1 student visas using post-training optional practical training. For certain science, technology, engineering and math (STEM) professionals, it’s possible to extend the OPT time for as long as 29 months. And the White House has said it is looking at extending this time even further. So some employers may be able to buy some time if their recruit is eligible for an extension. The chief caveat is that the petitioner must be an E-Verify employer to qualify to employ the F-1 student.

E-3/H-1B1 The E-3 visa for Australians and the H-1B1 visa for Chileans and Singaporeans closely resemble the H-1B, but they have their own quotas which generally do not get filled. If you are recruiting a national from one of these countries and the H-1B would have been a reasonable option, then these visas could be the answer.

TN Visa The TN visa is a creation of the North American Free Trade Agreement and offers work status to Canadians and Mexicans as long as they are coming for employment in an


occupation on a specific list of professions negotiated decades ago when the treaty was signed. The list is fairly limited, but worth a look if you are recruiting a Mexican or Canadian national.

E-2 Treaty Investor Occasionally, someone being recruited as an H-1B may instead decide to start a company and contract his or her services out through a company the foreign national creates. For example, a physician might choose to establish a private practice and have the practice provide services at a local hospital. If the doctor is a national of one of the 60+ countries with E-2 commercial investment treaties, then it might be possible to secure an E-2 visa. E-2 visas can be obtained by executives, managers and essential skills employees as long as the company is 50%+ owned by nationals of the employee’s home country and those owners are not citizens or permanent residents of the US.

O-1 Alien of Extraordinary Ability O-1 visas are for aliens with extraordinary ability in their fields. If you are recruiting someone who has strong academic or professional accomplishments and who has risen to the top of their profession, the O-1 may be the way to go.

J-1 Exchange Visitors The J-1 is an exchange visitor visa open to people in a range of occupations ranging from au pairs and camp counselors to academic researchers and professors and people in a broad range of occupations coming to the US for training opportunities. The J-1 trainee category offers college graduates the ability to work for up to 18 months in their fields in the US. There are dozens of organizations serving as J-1 trainee exchange visitor programs and their contact information can be found at http:// travel.state.gov/content/visas/english/study-exchange/exchange.html.

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Green Cards While green cards are typically discussed after an employee is already working on an H-1B visa for an employer, for higher level professions – generally those requiring a master’s degree or higher – filing a green card and beginning work on an interim employment authorization document may be faster than waiting on an H-1B visa. The timing typically still requires an early start. The labor certification process that must be completed first in many cases can take six to twelve months. But after that, you might be looking at only a two to three month process to get an employment authorization document.

Looking ahead Last month my colleague Lynn Susser gave you a preview of the Obama Administration’s plans for reforming the immigration system. Some of the ideas they’re considering could help employers deal with the H-1B cap. For example, we are fairly certain a rule allowing H-4 spouses of H-1B visa holders to work will be out soon (probably by the time you read this). There are also proposals to allow green card applicants to work from the earliest stage of green card processing as well as rules that will make qualifying for H-1B cap exemption to become easier. Expect to see these changes roll out slowly, but hopefully steadily, in the remaining two years of the President’s term.

Greg Siskind Founding Shareholder Siskind Susser – Immigration Lawyers gsiskind@visalaw.com www.visalaw.com

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Four Hiring Mistakes That May Hinder Hiring Long-Time Employees It’s a brave new (hiring) world. If you’re looking to hire long-term employees—and save yourself valuable recruiting time—these four hiring mistakes may be hindering your efforts By HEIDI PARSONT

Hiring isn’t what it used to be. Some blame the residual effects of the economic downturn. Others point to Millennials—a wild card in the workforce with a new set of values and wants. Regardless of the reason, there’s no denying we’ve entered a brave new world of hiring. What we’ve relied on in the past now has to be realigned for hiring in the future. In a poll of 20,000 workers by Leadership IQ, 46% of new hires were let go from their jobs within 18 months of being hired, only 11% of these for lack of skill. To avoid this costly outcome, be aware of these four mistakes that may be setting you up for hiring failure:

1. You are too willing settle. Journalist Maureen Dowd wrote, “The minute you settle for less than you deserve, you get even less than you settled for.” She was talking about relationships, but her words ring true for today’s hiring managers, too. In fairness, internal HR departments have never been stretched so thin. Not only are they responsible for hiring, but their time and attention are diverted to an ongoing litany of new rules and regulations. So it’s no surprise that today’s hiring managers evaluate candidates based on skills and experience and take no time to consider another very powerful indicator of success: cultural fit. In a 2013 Gallup poll of more than 150,000 U.S. workers, 70% of respondents unhappy in their jobs cited poor cultural fit among the top reasons. How can you ensure you’re finding the right candidates for your company’s unique culture? 30

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• Understand—and fully articulate—your company culture to job candidates. Often, this discussion is an afterthought, but it should be among the first topics covered. Be upfront about your company’s culture. Is it fast-paced? Bureaucratic? Are teams valued or do employees work independently? • Use a behavioral assessment as part of your screening process. Assessment tools, such as PI Worldwide’s Predictive Index® Suite, are designed to uncover the behavioral traits that help employers understand more about candidates beyond skills and experience.

2. You aren’t conducting reference checks. Increasingly, employers no longer check references before extending a job offer. The reasons are twofold: First, many companies are bound by internal legal policies that prevent them from offering specific feedback about former employees, turning references into mere confirmations of past dates of employment. Second, to save time, many HR teams are taking shortcuts wherever they can. However, by not researching a candidate’s background, you could be setting yourself up to make a costly hiring mistake. Some tips: • Always do your due diligence. Make every attempt to check references. A 2012 CareerBuilder survey of internal hiring managers found that 30% of employers caught fake references on a job application. And, a staggering 69% of employers say they’ve changed their minds about a candidate after speaking with a reference. • Use digital tools to research a candidate’s connections and profile. LinkedIn is a fast way to find shared contacts who can provide more detailed feedback than you can obtain from formal references. And giving a candidate’s online presence a once over can tell you a lot—and help spot potential red flags.

3. You’re setting the salary too low. When the economy declined in the mid-2000s, employers held the upper hand. With many professionals vying for limited positions, employers capitalized on a


flooded candidate pool. Many companies believed they could lowball an offer because the candidate should be glad to have a job when many did not. Today, the economy is improving and candidates, once again, have choices. Unfortunately, many employers still hope to hire top talent for less than market rate. This leads to stellar candidates dropping out of the hiring process to pursue competitive opportunities or, worse yet, hiring the wrong candidates.

Legal Challenges are Coming at HR Professionals from Every Direction

To overcome this problem: • Benchmark salaries against peer companies in your region to see how you compare. Integrate them into your annual plan and not just when making an offer. If you’re strapped for time, seek out the local chapter of a professional association that conducts its own salary studies. • Consider other perks you can offer. If your company simply cannot budge on salary, add other benefits to sweeten the deal. More than anything, today’s professionals want flexibility. You can offer innovative work-from-home or flexible schedule options to make your offer more attractive, which especially resonates with Millennials who crave flexibility in when, where and how they work.

4. You’re unwilling—or unable—to think outside the box. Some roles require very specific credentials, but most professions don’t require an ironclad list of skills and experiences that are absolutely necessary for success. In fact, being bound to “must haves” before considering a candidate may mean missing out on an incredible professional who can lead your company to success. To start thinking outside the box: • Determine your “must have” versus “nice-to-have” qualifications. Perhaps you can budge on the “must have” skills and move some to the “nice-to-have” category. • Challenge yourself to interview at least one candidate outside your “ideal” profile. You may be surprised how much you can gain from hiring someone who you might otherwise have missed, including outside perspectives, contacts and new strategies to take your program to a new level.

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 individualized for your specific needs. This is why you should know the employment-law attorneys at Rainey, Kizer, Reviere & Bell PLC. For over 30 years, our AV-rated firm has advised businesses, nonprofit organizations, and government agencies on all aspects of employment law. To learn more, please call.

• Consider candidates who may have dabbled in the skills you’re looking for but aren’t “the” expert. A candidate with a baseline of skills and the desire to continually learn and grow can be one of your best hires. By taking these hiring mistakes into consideration—and addressing them head on—you’ll position your team for faster, smarter hiring; attract stellar employees for the long term; and save your team time and effort in the process. You’ll take today’s brave new hiring into bold new hiring in no time!

Heidi Parsont, President TorchLight Hire, LLC Heidi@torchlighthire.com www.torchlighthire.com

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Lawyer of the Year Joins Fisher & Phillips in Memphis Jay Kiesewetter brings extensive experience to labor & employment practice MEMPHIS (February 2, 2015) – Fisher & Phillips LLP

exists in a union workplace. He was one of the

announced today that attorney Jay W. Kiesewetter has

founders of the Memphis law firm Kiesewetter

joined the firm’s Memphis office. Kiesewetter was recently

Wise Kaplan Prather, PLC before merging it into

named “Lawyer of the Year” for 2015 by The Best Lawyers in

Littler Mendelson three years ago.

America for his management-side employment law practice. This is the latest in a long list of accolades for the labor and employment attorney.

Kiesewetter has been recognized by The Best Lawyers in America and Chambers USA,

Memphis Managing Partner Jeff Weintraub said: “Our clients are fortunate to now have access to one of the top labor and employment attorneys in the Mid-South. Jay’s commitment to delivering stellar client service coupled with astute legal advice is a perfect fit for the way Fisher & Phillips delivers legal services to our employer clients.”

America’s Leading Lawyers for Business since 2005, and by Super Lawyers since 2007. He also has been named in Business Tennessee’s 150 Best Lawyers in Tennessee and holds an AV Peer Review Rating with Martindale-Hubbell.

Kiesewetter added: “Fisher & Phillips has a great reputation for being a business partner to the firm’s clients. That’s the way I practice, so this is a firm that aligns with my desire and commitment to provide

Kiesewetter earned his law degree from St.

high-quality business-focused legal advice at the time clients need it.”

Louis University School of Law (cum laude), a

For years, Kiesewetter has provided legal services to employers across the Mid-South and around the

California and his bachelor’s degree from

United States. As senior counsel, he advises clients on issues related to union organizing and elections,

the University of Missouri. He is admitted to

arbitrations, negotiations, strikes, lockouts, and Labor Board charges. He counsels clients in the devel-

practice in both Tennessee and Missouri and

opment of positive, sustainable employment strategies that add value to the employer’s business while

before several U.S. Courts of Appeal and the

enhancing a non-union client’s ability to remain union-free, or, reducing the adversarial tension that often

Western District of Tennessee.

master’s degree from the University of Southern

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32

www.HRProfessionalsMagazine.com

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LGBT Employees Continue to Gain Legal Protection

T

By JENNIFER SHORB HAGERMAN

he trend of extending legal protections to lesbian, gay, bisexual, and transgender (“LGBT”) individuals continues to develop rapidly, especially in the area of employment. Seventeen states and the District of Columbia now ban gender identity bias in the workplace. In addition, the Employment Nondiscrimination Act (“ENDA”), which would cover private employers nationwide and prohibit employment discrimination based on gender identity or sexual orientation, has been pending before Congress for many years. Although passage of the ENDA appears unlikely, at least in the near future, recent action by President Obama and his administration as well as several federal agencies represent major advancements for the LGBT community.

Executive Order 13672 and the Department of Justice While some state and local governments had expanded employment related protections to the LGBT community prior to 2014, President Obama made it national in July 2014, when he issued Executive Order 13672, which prohibits federal contractors from discriminating against LGBT employees and applicants. The Department of Labor Office of Federal Contract Compliance Programs (“OFCCP”) then released a directive in August 2014, stating that sex-based employment discrimination includes gender identity and transgender status. In addition, in December 2014, the OFCCP issued a final rule implementing President Obama’s Executive Order 13672. On December 18, 2014, Attorney General Eric Holder announced that the Department of Justice was shifting its position and, going forward, will maintain that Title VII’s prohibition against discrimination based on sex includes claims of discrimination based on gender identity, including transgender status. The new position will apply to the Department of Justice’s work in defending federal interests, as well as in asserting claims against state and local public employers. The Department of Justice does not, however, have the authority to file suit against private employers for such claims.

EEOC Works to Extend Title VII to LGBT Employees In 2014, the EEOC reaffirmed its 2012 position that sex-based discrimination includes gender identity and transgender status with the filing of two lawsuits directly addressing the issue. In EEOC v. R.G. & G.R. Harris Funeral Homes, Inc., E.D. Mich., No. 2:14-cv-13710, the EEOC contends that a funeral director/ embalmer was discriminated against on the basis of her sex in violation of Title VII “because she is transgender, because she was transitioning from male to female, and/or because she did not conform to the employer’s gender-based expectations, preferences or stereotypes.” (EEOC Press Release 9/25/14.) The employee had adequately performed her job duties since she was first employed in 2007, but in 2013 she was terminated just two weeks after presenting her employer with a letter explaining that she was undergoing a gender transition and would soon begin to present as a woman. The EEOC has made similar allegations in EEOC v. Lakeland Eye Clinic, P.A., M.D. Fla., No. 8:14-cv-02421, claiming that the employee’s performance had been satisfactory throughout her employment, but that she was terminated once she began to present as a woman and informed the clinic that she was transgender. In October 2014, the EEOC announced that two new categories would be added to the Charge of Discrimination form, specifically for gender orientation bias (GO) and gender identity bias (GI). The additions are likely the result of the 34

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EEOC’s efforts to track information on charges alleging discrimination based on sexual orientation and/or gender identity, which the EEOC began in January 2013. According to the EEOC, it received 834 charges alleging gender orientation discrimination and 199 charges alleging gender identity bias in 2013. As of June 2014, the EEOC had received 459 charges alleging gender orientation discrimination and 81 charges alleging gender identity bias. The EEOC also continues to advocate for its view that discrimination based on sexual orientation may constitute discrimination based on gender stereotypes. In Muhammad v. Caterpillar Inc. (7th Cir. No. 12-173) (amicus brief filed October 9, 2014), the EEOC filed an amicus brief with the Seventh Circuit Court of Appeals supporting a petition for panel rehearing after the panel affirmed a lower court decision based, in part, on the conclusion that Title VII does not prohibit sexual-orientation harassment or retaliation against employees who oppose such harassment at work. Of particular concern to the EEOC was the panel’s broad statement that Title VII’s prohibition on discrimination “because of sex” does not prohibit discrimination based on sexual orientation. While the panel denied the petition for rehearing, it did issue an amended opinion removing its original statement regarding the scope of Title VII.

Going Forward In light of these developments and the continued expansion of LGBT protections at the state and local level, many companies are implementing changes to internal policies and practices to address LGBT protections. Even companies such as ExxonMobil, which had historically been resistant to extending corporate policy to protect LGBT employees from discrimination and was awarded the Human Rights Campaign’s lowest ranking for LGBT inclusion, have shifted course and added protections for LGBT workers. The recent actions by the EEOC strongly suggest that private employers should begin to consider whether any policy or practice changes are in order to avoid claims of discrimination on the basis of gender identity or transgender status. Some possible options for employers to consider include: •  Updating nondiscrimination policies to expressly prohibit LGBT bias; •  Providing training on recognizing and combating LGBT bias to all employees and managers; •  Forming diversity and inclusiveness committees and implementing diversity and inclusiveness initiatives; •  Permitting and/or encouraging LGBT workers to form workplace affinity groups; •  Preparing to address operational issues related to employees who are transitioning from male to female or vice versa, including name changes, restroom use, and dress codes; and/or •  Making efforts to recruit LGBT workers. Although the Mid-South is currently not experiencing the same level of legal activity in this realm as other areas of the country, being proactive and evaluating whether any of these options should be implemented could be vital to a Mid-South employer’s defense when it receives a charge of gender identity or gender orientation bias in the future.

Jennifer S. Hagerman, Attorney Burch Porter & Johnson PLLC jhagerman@bpjlaw.com www.bpjlaw.com


It’s Time for a Checkup.

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