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October,
2011 |
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Happy Fall and Happy Halloween –
Fall is a time for fresh ideas, new thinking and scary images of Halloween. A couple of our
articles this month should bring chills up and down business owners’
spines ~ increases in the minimum wage, FICA wage base increases
AND the costs of not knowing
and applying the Fair Employment and Housing Act (FEHA)!
Don't get tricked by any of these happenings &
laws!
For your
"treat" .. enjoy our feature article, written
by my good friend and colleague Jackie Nagel. I hope you will find
her thoughts and suggestions as valuable as I did.
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Here is a listing of this month's articles with direct links
to each.
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Increases
In Minimum Wage
Arizona, California, Florida
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| Arizona’s Minimum Wage
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On November 7, 2006, the Arizona voters approved Proposition 202, referred to as the “Raise the Arizona Minimum Wage for Working Arizonans Act.” Under
A.R.S. 23-364(A), which became effective January 1, 2007, the Industrial Commission of Arizona was given the authority to enforce and implement the Act.
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Effective January 12, 2008, final Administrative Rules under Title 20, Chapter 5, Article 12 were approved and are currently in effect.
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Effective January 1, 2012, Arizona’s minimum wage will be $7.65 per hour. As of this date, every employer covered under the Act will be required to pay each employee wages not less than this amount.
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Copy of the new poster for Arizona can be found
bdy clicking here
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Source: Industrial Commission of Arizona |
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California Minimum Wage |
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Well, as if employers did not have enough to worry about now the California Legislatures want to add to
their financial woes by increasing minimum wage automatically every year! The current California minimum wage is $8.00 per hour. The Industrial Welfare Commission is not currently scheduling any hearings to consider modifying the wage orders to increase the minimum wage. The Legislature is moving forward on legislation on this issue however. In December, 2010, California Assemblyman Luis Alejo introduced a bill to increase California’s minimum wage to $8.50 effective January 1, 2012. |
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The bill, AB 10, further provides that the
minimum wage would rise each year starting in 2013, effective January 1, in proportion to any rise in the California Consumer Price Index. Many in the business community do not oppose a modest minimum wage increase. However, most people are adamantly against mandatory annual increases tied to the CPI. |
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Currently the bill has yet to be voted on by the Assembly but has been referred to the Assembly Committee on Labor and Employment. Employers interested in minimum wage issues should keep a close eye on AB10 as it moves forward. |
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Source: Listen Up! By Jim Potts |
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Florida’s Minimum Wage to Increase on January 1, 2012 |
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On November 2, 2004, Florida voters approved a constitutional amendment that created Florida’s minimum wage. The minimum wage applies to all employees in the state who are covered by the federal minimum wage. Florida law requires a new minimum wage calculation each year on September 30, based on the Consumer Price Index. If that calculation is higher than the federal rate, the state’s rate then would take effect the following January. |
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Florida’s minimum wage is currently $7.31 per hour, effective June 1, 2011. According to discussions with the state, beginning January 1, 2012, Florida’s minimum wage will be $7.67 per hour, which is a 4.9% (or $0.36) increase from last year due to the change in the Consumer Price Index. |
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Employers of “tipped employees” who meet eligibility requirements for the tip credit under the Fair Labor Standards Act (FLSA) may count tips actually received as wages under the FLSA. However, the employer must pay “tipped employees” a direct wage. Effective January 1, 2012, the new minimum wage for tipped employees should become $4.65 per hour plus tips. |
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The Florida minimum wage will prevail over the federal rate until (and unless) the federal minimum wage becomes higher than the state rate. |
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Source: Ogletree Deakins |
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FICA Wage
Base Increases
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FICA wage base increases to $110,100 for 2012
The Social Security Administration has announced that the taxable wage base for the Social Security portion of FICA will increase to $110,100 in 2012. That’s a 3.1% hike over the 2011 wage base of $106,800.
Of the estimated 161 million workers who will pay Social Security taxes in 2012, about 10 million will pay higher taxes as a result of the increase in the taxable maximum.
Except for pretax medical and tax-free fringe benefits, all wages are subject to the 1.45% Medicare portion of FICA, since no wage base applies to Medicare.
Find more information on the wage base hike and links to official Social Security Administration resources
by clicking here
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Fired
Cancer Patient Gets $846,300 Award |
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California's Department of Fair Employment and Housing recently
announced an administrative award of $846,300 to a man fired because he had cancer. This is the agency’s largest ever award.
The sales manager was fired because his employer claimed that he wasn’t spending enough time on sales travel during the same time frame that he was still recovering from cancer.
Charles Wideman worked for Acme Electric Corporation as a western regional sales manager from 2004 to 2008. He developed kidney cancer in 2006 and prostate cancer in 2007. Wideman’s cancers required two surgeries and numerous outpatient appointments. He was granted time off for the surgeries and recuperation time off.
Wideman returned after each operation, but requested an accommodation to limit his travel while undergoing additional cancer treatment. Acme Electric refused to grant or even acknowledge the requests to limit travel.
Instead, in December 2007, Wideman’s supervisor gave him an unfavorable performance evaluation, criticizing him for insufficient sales travel. In February of 2008, Acme Electric fired Wideman on the basis of the December performance evaluation. Acme Electric ignored the fact that Wideman’s performance since the December evaluation dramatically improved.
After a three-day hearing, the Fair Employment and Housing Commission found that Acme Electric violated the Fair Employment and Housing Act (FEHA) by:
Employers cannot discriminate against employees on the basis of disability. Further, under the FEHA, employers must reasonably accommodate employees with known disabilities. The duty to accommodate is an on-going obligation and requires a genuine effort to work with the employee to arrive at a workable reasonable accommodation.
Source: Gail Cecchettini Whaley, CalChamber Employment Law Editor/Staff Counsel
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Growing your business in any economy has its challenges but during times of economic uncertainty, it requires the best from everyone on the team. Although you feel like a team of “one”, you may discover that you have more brain power and skill at your disposal by learning to enlist, engage, and involve vendors or suppliers to help grow your business.
When my dad launched his diesel repair business in 1972, business was simple. It was easy to be skilled in his craft and knowledgeable (not skilled) in a variety of areas needed to run the business, such as planning, finances, and marketing. That is certainly not today’s business environment. Information is coming at us at an accelerated rate.
Keeping up with new developments in one’s own field of expertise is a challenge. Staying relevant in industries not core to your business, yet vital to your success, is near impossible.
Reaching out for assistance is the first step to growing your business.
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| Seek experts (vendors/suppliers) for your business. |
| Steve Jobs made growing a business look simple. How did he do it? He surrounded himself with expertise so he could focus on his true talents. |
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You’re the master at your craft...your core business, therefore you want to look for specialists in the areas of human resources, legal, bookkeeping & accounting, sales & marketing, graphic/web design, IT support, and business coaching. (I saved the best for
last) |
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Ask your trusted colleagues and valued friends for referrals, explore online, or draw on the search capabilities of Linkedin. |
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| Interview several vendors/suppliers. |
| One size doesn’t fit everyone when it comes to finding the right support so you’ll want to interview three to four specialists for each vendor position to ensure the right fit. |
| Take your time with the interview process. Educate them on the way you do business. Ask about their standards of excellence, rate of dependability, and commitment to ongoing learning. |
| You want a team of experts that works proactively on your behalf to pull your business forward. |
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| 3. |
| Engage your team of experts
quarterly |
| Once you’ve identified your team of experts, actively engage them in growing your business by meeting with them quarterly. |
| Ideally, it’s best to meet with your entire team simultaneously in person or by phone. This ensures everyone is playing from the same game plan and is a major time saver for you, the busy entrepreneur. |
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| 4. |
| Replace as needed. |
| A business is only as strong as its weakest link. Even the most thorough interview process doesn’t always reveal chinks in the armor. |
| ‘Replace early and replace often’ is our motto. Although that sounds harsh, your business can’t afford to be held back by vendors/suppliers that are slow to respond or reactive to your business needs. |
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As a small business entrepreneur, you need talented
vendors and/or suppliers on your team. And, you need them before a problem arises! Building your team of experts now saves you a tremendous amount of time, money, and brain cells. |
© Jackie Nagel, Inc. DBA Synnovatia®
Used by MJ Management Solutions with permission. |
Author: Jackie Nagel is the founder and president of Synnovatia™, a strategic business coaching firm that collaborates with entrepreneurs and business owners to realize accelerated business growth. Learn more about growing your business by visiting
www.Synnovatia.com
or calling 310.519.1947. |
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Don't Forget To Access Our
WebForms.
Answer All Your Human Resource Needs!
Manage Your Day-to-Day Non-Profit or Small Business Organize All Necessary Human Resource Information Promote Legal Compliance Within Your Organization.
Click Here To Know More!
http://www.mjms.net/webforms.html
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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. |
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Phone: 480-924-6101 and 310-798-4569
Fax: 408-452-1429
margaret@mjms.net •
MJ Management Solutions, Inc.
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