Official Magazine for the New Jersey Association of Plumbing-Heating-Cooling Contractors Summer 2020 • Volume 16 Number 2
Success IS NOT AN
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Contents Summer 2020 • Volume 16 Number 2
New Jersey PHCC
189 East Bergen Place Red Bank, NJ 07701 P: (800) 652-7422 F: (609) 987-0511 director@nj-phcc.org
Local Area Meetings
President’s Message.....................................4 The Post-Pandemic Workplace.......................6 An Unsettled Workforce ................................. 8
Essex CountyPHCC 1st Wednesday Monthly Located at Tierney’s Copperhouse 4 Little Falls Road, Fairfield, NJ
Document Your Business............................. 10 Transition Plan
Mercer County PHCC 1st Tuesday Monthly Located at Tessara’s 812 Route 33, Hamilton, NJ
How to Tell if Training will be........................ 12 Worth Your Time Avoiding Employee Recall Issues................. 14 Success is not an Accident.......................... 16
2020 Executive Committee PRESIDENT
SECRETARY
John Heine Heine Plumbing & Heating 270 Sparta Ave., Suite 104 Sparta, NJ 07871 (973) 383-0392
Susan Perlstein-Tavares Frank Perlstein & Son, Inc. 815 S Broad St. Trenton, NJ 08611-1903 (609) 393-4877
PRESIDENT ELECT Stephen Dzieminski Stephen Dzieminski Plumbing 702 President Ave. Lawrence Township, NJ 08648-4429
VICE PRESIDENT Kevin Tindall Tindall & Ranson 880 Alexander Rd. Princeton, NJ 08540 (609) 897-9770
Protect Your Equipment — and Your............. 18 Business — From Power Surges
DESIGNED & PUBLISHED BY:
(609) 394-5106 (fax) TREASURER Ken Alexander Alexander Plumbing, Heating & Cooling 743 Alexander Rd., Unit 10 Princeton, NJ 08540 (609) 987-2424 (609) 987-9797 (fax)
EXECUTIVE DIRECTOR Nicole Urizzo 189 East Bergen Place Red Bank, NJ 07701 (609) 987-0500 (609) 987-0511 (fax) director@nj-phcc.org
Alexis Kierce, Publications Manager 717-238-5751 x119 alexis@thinkgraphtech.com For Advertising Information: Jen Smith, Account Manager 717-238-5751 x124 jen@thinkgraphtech.com
An exclusive publication of the NJ PHCC. The NJ Contractor is published four times a year by Graphtech. Editorial Offices: 189 East Bergen Place, Red Bank, NJ 07701. With the exception of official association announcements, the statements of fact and opinion that are made herein are the responsibility of the authors alone and do not reflect the opinion or philosophy of the officers or the membership of the NJ PHCC. Materials may not be reproduced without written permission from the NJ PHCC headquarters.
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President’s Message Dear Members, Up to now, 2020 has certainly been a challenging year. I truly hope all of our members and their families have remained safe and well. While New Jersey Covid-19 numbers are low, let’s all remember not to let down our guard. I warmly welcome all new members and encourage you to become involved. Please feel free to reach out to Nicole Urizzo our Executive Director or me with any questions or concerns. • Until further notice, the Board will be meeting virtually. Any members wishing to participate may contact Nicole for information. • Our condolences to Kevin Tindall and his family on the recent loss of his twin brother, and most recently his sister. Please keep them in your thoughts and prayers. • Our E-learning has become quite popular and is moving along splendidly. • The 2021 code has been completed and is waiting for New Jersey approval • On September 9, I will be meeting with IAPMO and will discuss the Continuing Education inconsistencies. • It has come to my attention that the State Plumbing Inspectors are enforcing the fact that Cellular Core PVC cannot be used ion conjunction with a power vented water heater. Remember to change the PVC to Schedule 40 PVC when replacing power vented heater. As always, check the Manufacturer’s Installation Manual for requirements. Best regards, John Heine, President New Jersey PHCC
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Rheem.com/MoreHotWater
4
Based on comparison of the 50-gallon Hybrid Electric model against the estimated annual operating cost of a standard electric water heater of like capacity manufactured prior to 2015 under NAECA II which is likely being replaced. 2Built-in leak detection alerts of a water leak so you can take action to prevent home damage. 3Savings based on DOE Test procedures; available only on models with a -1 or -2 in the model number. 4EcoNet® is built-in for the ProTerra Hybrid and available as an add-on accessory for Condensing Tankless units. 1
The Post-Pandemic Workplace BY RICHARD D. ALANIZ
T
he reopening of America’s workplaces is creating a variety of challenges for employees and employers alike. In some cases, employers attempting to resume operations are hampered, and in some instances unable to do so due to laid off employees’ reluctance or refusal to return to work. Many are receiving more in unemployment benefits as the result of the $600 per week federal enhancement than they would make working. That additional amount is scheduled to end on July 31st. Despite the recent comments by some in Washington that it will not be extended, the staggering numbers of unemployed, many of whom worked at jobs that have been eliminated due to business closures, will require a continuation of enhanced benefits in addition to the increase from 26 weeks to 39 weeks of eligibility which was also provided. There has been some speculation that if the federal add on is continued, it could be reduced to some lesser amount. The figure of $450 per week, has been mentioned. This could exacerbate the refusals to return to those jobs that are available. For some, the short-term additional benefits outweigh returning to a job they fear may be lost in the near future anyway. Even if they are able to reopen, employers are immediately confronted with the reality of the need to implement and consistently enforce , for at least some period into the future, the safety protocols against Coronavirus
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recommended by the CDC, OSHA, and the various state and local public health agencies. These well-known protocols include, among other things the social distancing that has become commonplace, hand-washing stations, the use of face masks in some cases, regular monitoring of employees for COVID-19, and also where feasible, the reconfiguration of work stations to protect employees from possible exposure to the virus. Some employers are also requiring employee testing for COVID-19 before permitting employees to enter the workplace.
COVID-19 Lawsuits In addition to the need to take reasonable measures to ensure their employees’ safety and health, employers are also seeking to avoid possible federal or state agency enforcement actions as well as the potential liability, from lawsuits to which others have been subjected. OSHA has received over 5000 complaints related to worker safety involving possible Coronavirus exposure. More than 2000 lawsuits raising claims regarding Coronavirus have also been filed in courts across the country. Some of these lawsuits accuse employers of not providing adequate personal protective equipment (PPE) to their employees. Others involve claims that the employer has endangered employees by permitting persons into the workplace without testing for COVID-19. Some allege that the employer
has neglected to inform them of possible exposure from an employee who has tested positive. Many involve claims of employer failure to adequately enforce social distancing or related safety protocols. In those workplaces where jobs have been permanently eliminated, the potential for claims of discrimination based upon a legally protected status such as gender, race, age, or disability could also be filed. Employees who have lost their jobs after months unemployed may see little downside in filing such claims. As more workplaces reopen, most experts are predicting an increase in all of these types of lawsuits against employers.
do so. Absent evidence that such remote work created operational difficulties, it may be difficult for an employer to end the practice without significant employee push back. Similarly, the ability to successfully operate leaner during the pandemic will cause employers to want to make any job consolidations and eliminations the new normal. The temporary layoffs of several months ago will become permanent. This could in some cases precipitate the types of discrimination claims previously mentioned. It might also cause employees who were recalled to view the treatment of their terminated co-workers as unfair or arbitrary.
Worker’s Compensation Lawsuits
Union Organizing and the Coronavirus
Another issue that is already confronting many employers is the increase of Worker’s Compensation claims related to Coronavirus. As all employers are aware, it generally covers any injury or illness “arising out of and occurring in the course of their employment”. The complicating factor in COVID-19-related claims is that Workers Compensation does not apply to the “ordinary diseases of life”. Proving that the disease was contracted in the workplace may be difficult. The well-known community spread of COVID-19 may cause state Workers Compensation commissions to find that the illness is not work-related. Employers and their insurers have a viable argument for arguing against such claims. In order to avoid the automatic denials of these types of claims at least nine (9) states, including Arkansas, California, Florida, Kentucky, Minnesota, New Hampshire, North Dakota, Utah and Washington, have issued executive orders that for the duration of the pandemic, create a rebuttable presumption that workers became infected on the job if they have worked during that period. It is likely that more states will take similar action.
The perception of mistreatment of former employees whose jobs were eliminated, along with any potential concerns over the uncertainty of their own continued employment, could lead to a disgruntled workforce. If there are miscues in maintaining the COVID-19 protocols that are perceived as causing an increase in positive cases, employees may view the employer as not sufficiently protecting their health and safety. Such employer frustrations could create a fertile field for union organizing. It is quite apparent that unions see the disorder in many workplaces caused by the pandemic as a unique opportunity to ramp up organizing efforts. The June 15, 2020 edition of Politico’s “Morning Shift”, its regular update on labor and related issues, had as its headline “Coronavirus fever incites union drives”. Other recent pro-union organizing articles urging employees and unions to take action have such titles as “Workers Just-In-Time Movement”, “Organize or Die”, “Turn Up The Heat”, “A Simple Shop Floor Organizing Plan Any Essential Worker Can Use”, and “Solidarity is Our Only Chance”. Employers struggling to restore their businesses certainly do not need the additional distraction of a union attempting to organize their employees.
Workplace Impact Due to COVID-19 The ability to convince a sufficient number of employees to return to work, maintaining strict Coronavirus safety protocols, and avoiding legal actions, while significant, are not the only troublesome issues confronting employers as they try to resume operations. In an effort to maintain some level of business continuity many workplaces instituted operational changes which impacted employees. In some workplaces, where feasible, employees were permitted to work remotely, and many continue to do so. Some employers made job consolidations to work with reduced staff, many made work schedule changes and similar restructuring of normal operations. Where such changes were viewed as positive by employees, there will be pressure to continue the changed procedures after the resumption of operations. For example, recent estimates indicate that approximately 30% of people who have been working from home, want to continue to
Conclusion The post-pandemic workplace in many cases will be rife with obstacles that could overwhelm some employers. Knowing what may be around the corner and taking steps to avoid it may help employers successfully acclimate to the new environment. Richard D. Alaniz is a partner at Alaniz Law & Associates, a labor and employment firm based in Houston. He has been at the forefront of labor and employment law for over forty years, including stints with the U.S. Department of Labor and the National Labor Relations Board. Rick is a prolific writer on labor and employment law and conducts frequent seminars to client companies and trade associations across the country. Questions about this article, or requests to subscribe to receive Rick’s monthly articles, can be addressed to Rick at (281) 833-2200 or ralaniz@alaniz-law.com.
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An Unsettled Workforce BY RICHARD D. ALANIZ
T
he Coronavirus pandemic has turned our world upside down. Businesses have been shuttered and many jobs lost permanently. A resurgence of COVID-19 infections in several parts of the country largely halted some reopening efforts. In addition, with a new school year beginning, parents of school-age children are dealing with the dilemma of in-person versus online classes. With infection numbers beginning to trend downward, we may soon be seeing light at the end of the tunnel, but there will surely be lingering effects when this pandemic ends. The effects of Coronavirus have been felt particularly acutely in the workplace. Employees in “essential” industries who kept working, as well as those gradually returning to the workplace, have been confronted with a radically altered environment with pre-work temperature checks and other screenings, social distancing protocols, hand washing and sanitation protocols, and even COVID-19 testing. Many employers continue to have their entire focus on trying to ensure that their businesses and workplaces are safe from potential exposure to Coronavirus. Little time has remained to attend to the routine employee concerns that consistently arise in the workplace. Perhaps more significant has been the lack of attention to the unique employee pressures created by the pandemic. Employees experience an understandable anxiety created by being in unavoidable proximity to others for hours each workday. The concern is not only for themselves, but also for their loved ones at home.
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Reports of employee walkouts and workplace demonstra tions over actual or perceived employer failure to implement adequate safeguards have been common. In some cases, employees have filed lawsuits alleging such claims as failure to provide adequate PPE, failure to enforce social distancing and other CDC-recommended protocols, and failure to inform employees of a coworker’s positive test result. Some employees have refused to return to work from layoff due to fear of possible infection. Workplace safety concerns have spread notwithstanding employer efforts to implement and follow all CDC/OSHA guidance and prevention measures. Personal safety in the workplace had rarely been the primary concern for most employees. That is no longer be the case as a result of COVID-19. The pandemic-created anxiety is almost certain to impact productivity, quality of work, and employees’ well-being. Another effect of the pandemic on almost everyone, but especially on employees is a genuine uncertainty about their economic security. Mere months ago anyone who wanted a job could find one. Unemployment was at record lows. Wages were rising. This changed almost overnight. The federal enhancement to unemployment benefits has eased some financial pressures temporarily, but a return to a booming economy remains the only true solution. However, speculation of even more, permanent business closures and layoffs result in even greater uncertainty. COVID-19 related fears and anxieties will very likely confront both employers and employees for the foreseeable future.
Day-to-day workplace issues or irritants can easily become exaggerated for otherwise unsettled employees. A minor gripe can become a major problem. This means that now, more than ever, employers must truly live by the refrain “our employees are our most valuable asset.” The unsettling nature of all that they have been living through makes it imperative that employers demonstrate that they truly value those “assets.” When there is little more that can be done to provide a Coronavirus-free work environment or to assure our employees that we will promptly return to a growing economy, employers must make an extra effort to emphasize the small things that truly matter to employees. While wages, benefits, and promotions may be important, numerous studies have confirmed that working for employers that genuinely care about them matters most to employees. Fostering a caring workplace culture can overcome almost any employee problem, even concern for personal safety and economic security. Taking the time each day to demonstrate that employees are appreciated goes a long way in generating employee good will. It takes little effort and costs nothing to thank someone for staying late, completing a critical project on time, or simply for being there and making a sincere effort. Spending time on the work floor on a daily basis interacting with employees
T&S IS HERE
EDUCATION
in a positive manner is the type of managing-by-walkingaround that helps to demonstrate that we are all in this together. Keeping employees informed of any issues related to Coronavirus prevention, as well as to business prospects will help satisfy the critical need of employees to be informed of what could affect them. Finally, making sure that your supervisors are providing the same type of care and attention to employees on a daily basis will complete your efforts. No one knows when the pandemic will end or how promptly the economy will rebound, but by making every effort to show employees your appreciation for all they do will help ensure that we all successfully navigate the Coronavirus fallout. Richard D. Alaniz is a partner at Alaniz Law & Associates, a labor and employment firm based in Houston. He has been at the forefront of labor and employment law for over forty years, including stints with the U.S. Department of Labor and the National Labor Relations Board. Rick is a prolific writer on labor and employment law and conducts frequent seminars to client companies and trade associations across the country. Questions about this article, or requests to subscribe to receive Rick’s monthly articles, can be addressed to Rick at (281) 833-2200 or ralaniz@alaniz-law.com.
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FEDERATED LIFE: IT’S YOUR LIFE
Document Your
Business Transition Plan Have you taken steps to ensure a smooth transition of your business after you are no longer involved? Many business owners think about what they would like to happen to their business, but fail to actually put a succession plan in place. According to a 2019 PricewaterhouseCoopers Survey, only 18 percent of family businesses have a documented transition plan in place1.
So how do you create a succession plan? One of the first questions that needs to be considered is who is going to take over your business. For some business owners, it might be a son, a daughter, or more than one child who has been working in the business and is ready and willing to step in at any time. Others may have a key employee with years of service who has expressed an interest in taking over someday. In any case, finding the right person is a very important decision. It can mean the difference between financial security and financial hardship for you, your family, and even your employees if your successor is not able to keep the business operating successfully. Once you have identified who you would like to take over your business, the next step is to figure out the details — the when and the how of your transition plan. There are basically two ways ownership of a business can be transferred — by sale or by gift/inheritance:
Sale
Gift/Inheritance
A sale of the business provides the departing owner (or his/her family) with financial resources to meet ongoing income needs during retirement or after the death or disability of the owner. The future sale of a business is documented using a written buy-sell agreement that outlines when the sale will take place (at the owner’s death, disability or retirement), the purchase price, and the terms of the sale. The sale is often funded with insurance on the life of the owner.
Transferring the business through a lifetime gift or by inheritance will most likely be reserved for close family members and generally only where the business owner (or family) does not need proceeds from the transfer to meet retirement or income needs. These transfers may be subject to federal and/or state gift or estate taxes to the extent the value exceeds the owner’s available exclusions or lifetime exemption. If you are contemplating a gift (or a series of gifts) of your business interests, consult with your legal advisors to review the tax consequences of doing so and draft the appropriate estate planning documents.
The best option for your business — whether it’s a sale, a gift, or a combination of the two — will depend on a variety of considerations and your individual circumstances. When you’re ready to put your plan in place, or review an existing plan, your Federated marketing representative can refer you to an independent attorney who specializes in estate and business succession planning to help. 1 2019 U.S. Family Business Survey, PricewaterhouseCoopers. This article is for general information and risk prevention recommendations only and should not be considered legal, coverage, financial, tax, or medical advice. The information may be subject to regulations and restrictions in your state. There is no guarantee following these recommendations will help reduce or eliminate losses. The information is accurate as of its publication date and is subject to change. Qualified counsel should be sought regarding questions specific to your circumstances. All rights reserved.
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How to Tell if Training will be Worth Your Time BY TROY LOCKE
I
f you’ve been in the trades for any period of time, you’ve probably attended (or at least been invited to attend) a training class or seminar offered by a manufacturer.
While these in-person classes, including the ones we offer at Viega, have largely been put on hold or moved online due to COVID-19, they’ll resume eventually so this is a good time to think about what goes into a worthwhile class and how you can tell whether to accept that invitation. There are few things more frustrating than investing time, money and travel in an on-site training and not getting the results you want. With that in mind, I’ve put together a checklist of ways to determine if the trip would be worth it.
Ask people who’ve ONE done it. Has anyone else from your company been to this manufacturer’s programs? They would be a great source for information on whether it was valuable. Even if they went to a class other than the one you’re interested in, they can speak to the overall quality of the manufacturer’s program. If no one from your company has attended, ask around your local contractor community. Odds are someone has been to one and would be happy to fill you in.
Make sure what’s being
TWO taught is what you want to learn.
This seems obvious, but nothing ruins a trip like discovering mid-class that you already know the subject matter being covered or it’s knowledge that you’re not going to be able to use on the job. Read the description closely and don’t be afraid to ask specifically what topics will be taught. And make sure it’s up to date. Technology, resources and materials change constantly. Also, ask yourself how you plan to use the skills and knowledge you acquire from the class. You should have a plan to put your new capabilities to
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work and know how they would fit into your company’s offerings. Knowledge for knowledge’s sake is fine in some circumstances, but it doesn’t always add value.
THREE | Check the facilities. Contractors are often asked to work under sketchy conditions, but that doesn’t mean you have to learn under them, too. Ask where the class will be taught and how the classrooms are equipped. If a manufacturer has a dedicated facility for instruction, odds are they’re serious about doing it right. Class size is important, too. Customizable class sizes allow for attendee engagement and more oneon-one time.
FOUR | Check the instructors. Will the instructors know what they’re talking about? You can expect them to know all about their products and equipment, but do they have the broad background and field experience to answer questions about real-life situations? Don’t be afraid to ask about their credentials. Odds are, you’ll be in a class with people with varying levels of knowledge and experience. Can the instructors teach to industry veterans as well as those new to the trades?
Will you get your hands FIVE dirty? Classroom instruction and theory are important, but contractors are hands-on types of people. And there is no better way to learn a technique or master a piece of equipment than doing it yourself under the eye of a qualified instructor. Make sure any course you attend, whether it’s designing software or pressing pipe, gives you plenty of opportunity to try it for yourself. That’s the best way to make sure you’ll be able to put it into action back home.
Make sure it’s more than SIX a sales opportunity. Of course, every manufacturer who hosts a training program is hoping to win converts to its tools and products (Viega included). That’s no secret. But making sales shouldn’t be the primary focus of the session; that’s taking advantage of a captive audience. The emphasis should be on practical learning, not selling you something. Keep this checklist in mind and you can be confident that your next training trip will be a good one. Troy Locke is Manager, Technical Training & Technical Support, Viega LLC
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AVOIDING
Employee Recall Issues The desire to get back to normal is growing by the day across the country. It is a feeling that is shared by virtually every person in the country. As the effects of the Coronavirus pandemic begin to dissipate, shelter-in-place orders expire, and the preventative steps taken have their intended impact, employers will begin the process of recalling furloughed employees. Careful planning will be critical if potential issues, both legal and practical, are to be avoided. As long as anti-discrimination laws are not violated, neither the state nor federal government dictates how a recall of laid off employees must be conducted. To the extent that there are any rules or guidelines to be followed, they are primarily the result of obligations under a collective bargaining agreement or an employer’s policies such as those contained in an employee handbook. Even if there are no written guidelines, there may be an established past practice, course of conduct or other written or verbal commitments that employees might reasonably expect would be followed when recalls begin. Whatever recall procedure an employer follows, it is imperative that employees be thoroughly informed about the process. This is a time for complete transparency. With employees understandably desperate to once again be earning a paycheck, those not promptly recalled when operations resume are sure to raise questions. Early and clear communications to all employees regarding the recall process and schedule will help to ease the anxiety while waiting for a call back. Since it is very probable that the prolonged business stoppage has resulted in the permanent loss of some jobs, the issues of which jobs and whether those whose jobs were eliminated have an opportunity to fill other available positions will be equally critical to address.
Recall Obligations If an employer is subject to a collective bargaining agreement, it is virtually certain that it contains layoff and recall provisions. Seniority generally dictates the order of recall and employers are obligated to follow it or else be subject to grievances and/or unfair labor practice charges. In most non-union situations the employer must look to its written policies, usually contained in the employee
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handbook. Many include language relating to layoffs and recalls. If so, those procedures should be followed absent unusual circumstances. Since an employee handbook is generally not considered a binding contract, failure to follow its provisions may not result in a lawsuit, but employee morale and the employer’s reputation will suffer, perhaps permanently. In circumstances where there is neither a contract nor written policies, employers must next look to any representations made to employees, either verbal or written. Were any promises or commitments made in the layoff notice, memos, letters or e-mails about the employees’ jobs when economic circumstances change? Did supervisors or managers make promises of recall to employees? Such representations may have created rights or obligations where none may have existed previously.
The Recall Process If there is no contractual or established policy or commitments that mandate a process, an employer is free to implement a policy on recalling employees. A policy is imperative if the recall is to proceed in an orderly and legal fashion. In order to help avoid any legal claims, the policy must be reasonable and non-discriminatory. It must be applied in such a manner as well. The policy must be specific about the terms and conditions of recall. It should address at a minimum, the following issues: (1) How the recall decisions will be made. It should specify that the company retains discretion to consider employee’s skills and the needs of the business; (2) Notice requirements, including responsibility on the employee to maintain contact to affirm availability and time frame for responding to recall notice; (3) Impact of the furlough on vacation accrual and other benefits; (4) The time limit on how long an employee will be considered to have recall rights; (5) Pay out of any accrued vacation or similar benefits for employees not recalled and/or whose jobs have been eliminated. There are no legal requirements for how long the period of recall rights may be. While other matters may be addressed in a recall policy, these listed are among the most fundamental decisions that will be made in any employee recall.
Potential Discrimination Claims In most if not all operations, quickly resuming production will be the priority. The potential for discrimination arises in the selection of who to recall. All of the protective provisions of Title VII and similar state human rights laws continue to apply. Since the majority of today’s workforce falls within a protected category, there will be some situations where an employee within one or more of the various protected categories will be passed over for recall or not recalled due to job elimination. While potential claims of discrimination based upon race, gender, national origin, or disability are always possible in such circumstances, perhaps the most potential lies in claims of age discrimination under the Age Discrimination in Employment Act (ADEA). The large number of employees well past the protected age of 40 in today’s workforce should be a cause for concern for both the recall process, as well as in the case of job eliminations. Whether accurate or not, older workers are often viewed as less productive and more expensive than younger employees. They are sometimes the first casualties in a workforce reduction. The impact of the extended job and income loss, as well as the devastation of 401k accounts as a result of the pandemic, will force many near-retirement employees to want to keep working. Many were already considering this as a result of the significant losses to retirement plans incurred in the 2008-2009 recession. Knowing the difficulty of finding suitable employment when a person is 50 or 60, or perhaps even older, they will desperately want to hang on to their pre-pandemic jobs. Therefore, if theirs are the jobs eliminated, or it even appears to be the case, the potential for claims of ageism could be significant. In a recent study on “Ageism in the Workforce” by global specialist insurer Hiscox, it was noted that of the 400 full-time U.S. workers, equally divided between men and women over the age of 40 that they surveyed, 67% responded that they planned to continue working after they turn 66. The study also noted that workers age 55 and older will soon comprise at least 25% of the nation’s workforce, with the fastest growth among persons aged 65 and older. Given the very real concerns of this segment of the workforce with continuing to work that were already present prior to the impact of the Coronavirus pandemic, they can be expected to challenge even the appearance of discriminatory treatment.
State Orders Protecting Vulnerable Workers Some states may enact additional protections that prohibit companies from laying off certain workers that meet certain requirements. For example, on April 13, Governor Inslee of Washington State issued Proclamation 20-46, “HighRisk Employees- Workers’ Rights,” which prohibits any
employer from failing to accommodate high risk workers from COVID-19. The proclamation requires companies to accommodate workers that are over 65 and those that have severe obesity, heart disease and several other conditions. Employers are required to allow these employees to telework if possible, reassign them, or allow the employee to take leave or file for unemployment. Employers must also fully maintain all provided health insurance benefits for these high-risk workers. Employers are also prohibited from permanently replacing any high-risk employee who takes leave or exercises their right to an alternative work assignment. Companies should expect other states to take similar action.
Practical Considerations Actual or Perceived Unfairness Whether potential legal obligations to follow a certain recall procedure might or might not apply in any given workplace, it could be less important than the long-term impact on employee morale created by a recall process that is actually or perceived as unfair. In these most stressful and unique circumstances created by the workplace effects of the Coronavirus, employees will understandably be particularly focused on how they are treated by their employers. While most employers took every reasonable step to avoid furloughing their employees, the decision ultimately had to be made. Most employees accepted it as an unavoidable circumstance of the current crisis. As the economy begins its return to normalcy, there will be major employee concerns about being recalled. A well-planned and well-publicized recall process as discussed above will not only facilitate an orderly resumption of operations, it will also go a long way in minimizing potential claims of biased treatment as well as the damage to employee morale that may result. Any resentment built up by seeing others, perhaps younger, with lesser seniority and/or less skilled, will be difficult to overcome in the future. If there is a basis for some legal claim, it may well be filed. Equally damaging could be the employee perception that their employer does not care that they are not valued. A negative attitude on the part of some who feel unfairly treated can easily spread to others. No employer should knowingly risk the goodwill that is so critical to maintaining a satisfied and productive workforce.
Other Recall Issues There are a couple of other important issues for all companies to consider in implementing a recall. First, employers must consider whether they will need to progressively ramp up their operations before they bring back all of their staff. Continued on page 17 Summer 2020
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Success IS NOT AN Accident “Are Your Habits Today On Par With Your Dreams For Tomorrow?” BY CURT FOWLER
T
hink about your life and business five, ten, and fifteen years from now. I like to look at my life from the perspective of the five “F’s” that are my requirements for a successful life: Faith, Family, Finances, Fitness and Fun. Most of the time I am failing in multiple categories, but I’m always adjusting my plan so I can succeed at all five. What are the critical success categories for your life? The question you and I must always be asking ourselves is “Are our habits today taking us to the outcomes we desire in the critical areas of our lives?” I’m always looking for role models who are excelling in the areas that matter most to me. I never watch basketball, but when my oldest daughter started playing in a local league, we started searching for basketball drills online. We ran across a guy named Steph Curry. Not only is he an amazing basketball player, but also a dedicated Christian and family man. The question I wanted to find the answer to was “How has Curry created so much success at his job (basketball) while succeeding at home?” First, who is Steph Curry? In case you are not an NBA fan, let me give you a little background. Steph is the son of Dell and Sony Curry. His father Dell retired in 2002 as the Charlotte Hornets’ all-time leader in scoring. Steph plays for the Golden State Warriors. He is a six-time NBA All-Star, has been named the NBA Most Valuable Player twice and has won three NBA championships with the Warriors. Steph is also husband to his wife Ayesha and a father of three. Despite his Dad’s pedigree, most did not expect Steph to succeed in the NBA — if he was able to go pro. Steph has always been small by NBA standards. He graduated high school weighing 140 pounds. All the schools in the Atlantic Coast Conference passed on giving him a scholarship. His dad’s alma mater, Virginia Tech, only offered him a walk-on spot. He played at Davidson instead. He worked his way into being a first-round draft pick in 2009 though many still doubted that a player of his size could survive in the NBA. The Minnesota Timberwolves didn’t draft him even though they needed a point guard. Nike refused to give him a decent offer and he moved to Under Armour. Steph has been an underdog all his career — which makes watching him succeed at the highest levels so entertaining. Not that watching Steph could ever be boring. He can’t win with his size, so he must win with shot-making and ball
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handling. He is amazing to watch. I never watch the NBA but could spend hours watching Steph Curry highlights. I force my kids to watch videos of Steph practicing before we play basketball in the backyard. He is fun to watch. Trust me. If you haven’t watched Steph play or practice, search for Steph Curry highlights or practices and be amazed. Hopefully, you’ve watched some highlights or are already familiar with Steph and you are ready to learn about what makes him so successful on and off the court. Success leaves clues and the clues I’ve found in Steph’s life all revolve around three areas — Faith, Work Ethic, and Core Values. Faith — Steph’s faith is more subdued than many, but his faith is clearly a central tenet in his life and success. It is through his faith that he knows that he can “do all things through Christ.” That faith encourages him to trust the process and keep doing the work. “I do a little sign on the court every time I make a shot or a good pass. I pound my chest and point to the sky. It symbolizes that I have a heart for God. I do it every time I step on the floor as a reminder of who I’m playing for.”
Work Ethic — Alan Stein is an internationally esteemed basketball strength and conditioning coach who had the privilege of working with Steph before anyone knew his name. Steph was the least known player at a camp Stein attended. But Stein felt he was the most impressive player there and the most likely to be a future NBA star. Why? Stein said Steph’s work habits were far beyond any of the other players at the camp. “It doesn’t matter where you come from, what you have or don’t have… All you need to have is faith in God, and undying passion for what you do — what you choose to do in this life, a relentless drive, and the will to do whatever it takes to be successful at whatever you put your mind to.”
Core Values – Steph knows what is most important in his life: his faith and his family. He knows that his work is a platform he has been given to provide for his family and to point others towards God. Knowing what is most important allows Steph to make the hard decisions required to keep his priorities in order. “There’s more to life than basketball. The most important thing is your family, and taking care of each other, and loving each other no matter what.”
Continued on page 18
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Avoiding Employee Recall Issues continued from page 15 Certain employees may need to be brought back first to ensure that the rest of the employees are able to work. For example, a maintenance staff may need to be brought back first to ensure that all equipment is operational. Some employers may wish to bring employees back in waves to ensure that they have sufficient work. Companies may also need to confirm the supply chains of critical materials before they can resume operations or wait for clients to resume operations first before they reopen. Second, any employee that is recalled will be immediately eligible for the sick leave under the Families First Coronavirus Response Act. They will not be eligible for the expanded family leave until they have been employees on the company payroll for at least 30 days. The potential for leave requests could even increase once employees are back in the workplace. Third, as a reminder, salaried employees can be paid a prorated salary if they start in the middle of the week or if their employment ends in the middle of the week. If salaried employees are recalled in the middle of the week, this pay issue should be taken this into consideration.
Conclusion Long before any employee recalls begin, employers need to carefully access what skills and experiences are most needed to resume production. A detailed schedule of who will be recalled, and to the extent known, when, should be a priority. Open and frequent communication with the furloughed employee will help to ease the understandable concern about how soon they may start to resume their normal lives. Richard D. Alaniz is a partner at Alaniz Law & Associates, a labor and employment firm based in Houston. He has been at the forefront of labor and employment law for over forty years, including stints with the U.S. Department of Labor and the National Labor Relations Board. Rick is a prolific writer on labor and employment law and conducts frequent seminars to client companies and trade associations across the country. Questions about this article, or requests to subscribe to receive Rick’s monthly articles, can be addressed to Rick at (281) 833-2200 or ralaniz@alaniz-law.com.
Summer 2020
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FEDERATED LIFE: RISK MANAGEMENT CORNER
Protect Your Equipment — and Your Business — from Power Surges You don’t often think about electricity until there’s a problem, but you need it for even the most basic functions of your business. The reason most of us are able to take electricity for granted is because it often does its job without causing damage. But what happens when it doesn’t? Your business halts, your productivity crashes, and your profits start to sink. While the continuity of power at your facility is dependent on a number of factors outside your control — weather and infrastructure strength among them — you can help avoid costly damage to your equipment by installing the proper safeguards in your electrical system.
What Could Go Wrong? Power surges are among the
most common causes of interruption and damage in a building’s electrical system. These incredibly short bursts — also called spikes or transients — come from external sources like high-power switching at substations or lightning strikes and internal sources like equipment activation. The extra current or voltage damages the complex and fragile circuitry in modern electronic equipment, having effects that can be immediately apparent, or that can cause less visible harm to the longevity of a piece of equipment.
What Are Zones of protection? Power surges are largely preventable. Surge protection devices (SPDs) are designed to decrease the electrical load from power surges. Most electrical professionals employ a zoned approach to divert extra energy before it reaches outlets. Zone 1 — SPDs at the service entrance panel discharge extra energy as it enters the system. The main function of this zone is to reduce energy from external sources.
Zone 2 — SPDs at the distribution panel continue to reduce energy as it travels through the system and branch circuits. These handle surges from internal and external sources. Zone 3 — PDs at the points of use, such as power strips or
Who needs SPDs? The total U.S. cost of sustained power interruptions is estimated at about $44 billion per year with a majority of these costs in the commercial sector.* While the majority of power surges are generated internally, most businesses could benefit from all three zones of protection — especially ones that use computer-controlled equipment. Consider hiring an electrical professional to assess your business’s surge protection. While installation costs can vary widely depending on equipment requirements, the price could prove small in comparison to ignoring power surges until it’s too late. * “Improving the estimated cost of sustained power interruptions to electricity customers.” Kristina Hamachi LaCommare, Joseph H. Eto, Laurel N.Dunn, Michael D.Sohn. Energy Analysis Department, Ernest Orlando Lawrence Berkeley National Laboratory, June 2018. https://doi. org/10.1016/j.energy.2018.04.082.
This article is for general information and risk prevention recommendations only and should not be considered legal, coverage, financial, tax, or medical advice. The information may be subject to regulations and restrictions in your state. There is no guarantee following these recommendations will help reduce or eliminate losses. The information is accurate as of its publication date and is subject to change. Qualified counsel should be sought regarding questions specific to your circumstances. All rights reserved.
devices built into equipment, reduce energy from internal sources.
Success is Not an Accident continued from page 16 What are the critical success areas in your life and business? Can learning from an example like Steph Curry help you reach your goals?
Curt Fowler is President of Fowler & Company and Director at Fowler, Holley, Rambo & Stalvey. He is dedicated to helping leaders build great organizations and better lives for themselves and the people they lead.
If you’d like some great resources to help you on your journey you can find them on our resources page at www.valuesdrivenresults.com or call me at 229.244.1559.
Curt is a syndicated business writer, keynote speaker and business advisor. He has an MBA in Strategy and Entrepreneurship from the Kellogg School, is a CPA, and a pretty good guy as defined by his wife and four children.
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