READ AS A WEBPAGE
 
 
 

July, 2011     

Here it is, the end of July and the beginning of the DOG DAYS OF SUMMER. We hope some of you are squeezing in one last week of vacation or on the other side of the coin ... maybe some of you are getting ready to celebrate "back to school" time!

Summer has not been slow at MJMS – we have been busy investigating charges of hostile work environments, harassment and inappropriate language in the workplace. Thus, this month's feature article “Harassment is Alive and Well in the Workplace” seems to be appropriate for this newsletter. 

Also this month we discuss "money" issues!  How to pay our employees fairly and legally when they are in different geographical locations. Also, are any of you getting overtime requests?  How are you handling overtime? We've got some pointers for you.  Even this month's quiz gets into "how do you pay" issues. See how you do with your answer!   


Here is a listing of this month's articles with direct links to each. 

Pay Equity - Does Location Matter?
Stop Off-The-Clock Time with Strong Overtime Rules

Our Monthly Quiz
Discrimination Is Alive & Well In The Workplace

Pay Equity - Does Location Matter?

Can you vary pay based on location, duties?

The federal Equal Pay Act (EPA) says it’s illegal to pay unequal wages to men and women “who perform jobs that require substantially equal skill, effort and responsibility, and that are performed under similar working conditions within the same establishment.”

That means, under the EPA, em­­ployers can set different salaries based on geographically distinct job locations.

In other words, you aren’t required to pay a manager in New York City the same as one in a lower-cost locale, even if the New York manager is male and the manager in the other location is female. Plus, any differences in responsibilities can help justify the difference.

Of course, you can expect a legal complaint if you reverse the sexes and decide to pay a woman assigned to New York less than a man working in Small Town USA.

Recent case: Jeanette Renstrom worked for Nash Finch as a grocery buyer from 1979 until 2009, when she retired. That’s when she sued, alleging pay discrimination.

She claimed two male grocery buyers in other locations were paid more than her. Nash Finch argued that the positions weren’t equal and the locations required different compensation plans.

As an example, it explained that the men had much larger territories to manage and had to do far more work than Renstrom did. That was enough for the court to toss out the case. (Renstrom v. Nash Finch, No. 09-CV-1823, DC MN, 2011)

Final note: Remember, employees can challenge pay decisions years after the fact, based on the impact on their current paychecks.

Source: theHRSpecialist.com


Stop Off-the-Clock Work 
With Strong Overtime Rules

Hourly employees know that if they work overtime, their employer must pay them for the extra hours. That's true, but it doesn’t mean they can work OT whenever they feel like it.

Here's how to end unauthorized overtime: Make clear—in writing and face-to-face discussions—that employees can only work overtime authorized in ad­­vance by a supervisor. Set a policy on overtime approval and make sure supervisors understand it and follow it. Explain the consequences. Document those communications.

Then hand out discipline equally to those who don't follow directions. You can't refuse to pay them for the nonapproved hours. If a reprimand doesn't get the message across, try a suspension … or even termination. 

Case in point: Newspaper employee Lisa Ritchie was an hourly employee who regularly put overtime hours on her timecard even after being told she could not. The newspaper paid for the extra hours, but fired her for breaking the rules. Ritchie sued, alleging that entering the hours on her timecard was protected activity and firing her was retaliation.


The court didn’t buy her argument. It reasoned that if employers weren’t able to discipline employees for working unapproved hours, it would remove any leverage the employer had to order no overtime. (Ritchie v. St. Louis Jewish Light, 8th Cir.)

4 Ways To Stop Abuse Of Unauthorized Overtime: 

1. Make sure all employees know they must obtain supervisor approval to work overtime—don’t just stick that requirement in a policy handbook. 

2. Develop checks  to ensure employees aren't working off the clock. Example: Insist all hourly employees clock in and out. 

3. Consider additional tracking measures, such as electronic entry cards, to back up reports of hours worked. 

4. Institute progressive discipline for overtime violators. While you must pay for all hours worked (authorized or not), a couple of days off without pay should stop a repeat offender.

Source: Capitol Information Group (CIG).


Our Monthly Quiz! 

Question
A full-time nonexempt employee needs to leave 4 hours early on Friday for an appointment. The employee asks if she can make up the time the following week, which would equal a 44 hour workweek. If the company agrees to the arrangement, would the “make-up” hours count towards overtime the under the federal FLSA?
A. Yes, the company would have to pay 4 hours worth of overtime.
B. No, the company would not have to pay overtime because they could average the two weeks.
C. Maybe, the company would not have to pay overtime, as long as the employee signed the agreement.
      Answer found at end of feature article.

 
On to our feature article ....


Discrimination Is Alive & Well
In The Workplace!

A new report from CareerBuilder shows that discrimination at workplaces is alive and well in Arizona and across the nation.

Although women now account for half of the U.S. workforce and over the past several decades U.S. companies have become increasingly racially and ethnically diverse, disparities in pay, career advancement and feelings of discrimination continue to run rampant at U.S. firms, the report shows.

It found that women and Hispanic workers were twice as likely to hold an administrative or clerical entry-level job, as "non-diverse workers." And more than half of women, Hispanics and workers with disabilities reported earning less than $50,000 compared to three-in-ten non-diverse workers, according to the survey.

CareerBuilder’s report surveyed more than 1,300 diverse workers from six segments — African Americans, Hispanics, Asians, women, workers with disabilities and lesbian, gay, bisexual and transgender (LGBT) workers — to get a read on how their workplace experiences are changing.

“The U.S. workplace has experienced fundamental shifts over the last two decades that have had a major impact on business, including economic downturns, the introduction of new technology and the strengthening of laws designed to promote equality,” said Dr. Sanja Licina, Senior Director, Talent Intelligence & Consulting at CareerBuilder, in a statement. “While companies have made strides in creating an inclusive workplace for all workers, there is still work to be done, especially in the areas of hiring, compensation, and career advancement.”

Still, certain diverse segments ranked higher than non- erse workers in compensation, for instance, LGBT workers were more likely of all segments to earn six figures, per the report.

All diverse segments of the population reported feeling discriminated against at work, with African Americans feeling the most discriminated against, at 25 percent. They were followed by disabled workers, at 22 percent; Hispanic workers, at 21 percent, women at 19 percent and LGBT workers at 18 percent, according to the report.
 

Source: CareerBuilder: Discrimination at work alive and well | Phoenix Business Journal


Answers To Quiz

ANSWER: A 
Yes, the company would have to pay 4 hours worth of overtime.
 
Explanation:
Under the FLSA, nonexempt employees must be paid overtime for hours worked exceeding 40 in a workweek. A workweek is a period of 168 hours during 7 consecutive 24-hour periods. A workweek may begin on any day of the week and at any hour of the day established by the employer. Generally, for purposes of computing minimum wage and overtime, each workweek stands alone, regardless of whether employees are paid on a weekly, biweekly, monthly, or semimonthly basis. Two or more workweeks cannot be averaged.

If an employee worked over 40 hours in a workweek, he or she would be entitled to overtime for the hours over 40, regardless of the fact that the employee worked fewer than 40 hours the previous week.

HOWEVER, in California there is a provision in the law for “Make-up Time” which would preclude the necessity of paying overtime for time made up ONLY within the SAME workweek. 

For more information about Make-Up Time or FLSA overtime, contact MJMS. 


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ABOUT MJMS, INC.

President and Principal Consultant: Margaret Jacoby, SPHR

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

Her work has included:

  • Conducting H.R. Needs Assessments

  • Drafting employee handbooks and policy manuals

  • Conducting job analysis and developing position descriptions

  • Conducting on-site compliance audits

  • Counseling management on progressive discipline

  • Drafting and review of employee disciplinary actions

  • Providing mediation in employee/employee conflict

  • Training employees/supervisors/managers in the implementation of human resources systems and policies such as Sexual Harassment

  • Conducting workshops for business owners on H.R. compliance issues.

Ms. Jacoby has earned the nationally-recognized certification of Senior Professional in Human Resources (SPHR) from the HR Certification Institute, Society for Human Resource Management (SHRM).

Ms. Jacoby’s professional affiliations include:

  • Professionals in Human Resources Association (PIHRA)

  • Society for Human Resource Management (SHRM)

  • National Association of Women Business Owners (NAWBO), Los Angeles and Phoenix

  • California Chamber of Commerce

  • Arizona Small Business Association (ASBA)

  • Long Beach Community Business Network (LBCBN)

  • Institute for Management Consultants (IMC)

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

  

Phone: 480-924-6101 and 310-798-4569     Fax: 408-452-1429 
margaret@mjms.net • MJ Management Solutions, Inc.