READ AS A WEBPAGE
 
 
 

September, 2010     

 

Hello  . . 

Here we are in the last quarter of the business year and, while the temperatures in CA and AZ don’t reflect it, we are in the first days of autumn. Recovery is around the corner, but it will not be "the rising tide that lifts all boats." Are you ready to breathe in the crisp autumn air and succeed in the New Business Reality?

At MJMS we have seen and been a part of many creative ways to work with the economic changes we are all enduring. This month's newsletter addresses two primary areas of discussion for these times.  

Also, this is the time of the year when  changes occur in many lives and you will experience employee resignations.  The "exit interview" when done effectively can be quite productive and educational.  To keep yours on track, we've got some mistakes to avoid when conducting exit interviews.  

Before we get to all of the above though, there is a new "Workers Comp Poster" requirement in California for October 8th!  Details are found below.   And of course we also have our monthly quiz ~  always a challenge to your HR knowledge ~ see how you do!

Here is a listing of our articles with direct links to each. 

NEW Workers Comp Poster Requirement in CA

Monthly Quiz - When Do You Reimburse For Employee Clothing?

Exit Interviews - Common Mistakes

Two Discussions For Dealing With Economic Downturn
 1.
Exempt Deductions During Slowdown 
 2. Inflated Job Titles

 

 NEW POSTER REQUIRED IN CALIFORNIA

The California Division of Workers’ Compensation (DWC) has just finalized regulations that change your posting requirements.

All employers in the state are required to post a new "Notice to Employees-Injuries Caused by Work" poster (Form DWC 7) no later than October 8, 2010, and the "Workers Compensation Claim Form" (Form DWC 1) has been revised as well.

Additionally, the regulations also amend the rules for employers who are part of a Medical Provider Network (MPN). The new regulations:

Allow MPN notices to be distributed electronically to all covered workers 
Eliminate the 14-day MPN implementation and change of MPN notice period 
Further define and streamline the MPN implementation notice 
Reduce distribution of both the Change of MPN notices and the Termination/Cessation of Use of MPN notices only to covered injured workers 
Eliminate only the filing of the Change of MPN notices with DWC 
Clarify material modifications that require filing with DWC 
Clarify provider listing requirements 
Require MPN notices to be in Spanish only where there are Spanish-speaking employees 
Require an MPN contact e-mail address to be included in notices 
Require access to the MPN contact through the toll-free number 

You only have until October 8 to get the new poster up, and failure to comply can subject you to fines of up to $7,000 per violation.

New Poster can be found: http://www.dir.ca.gov/dwc/forms/DWCForm7_2010.pdf

New Claim Form can be found:
http://www.dir.ca.gov/dwc/forms/ClaimForm2010.pdf

Contact your Workers Compensation Insurance carrier for new pamphlets that must be distributed to all employees upon hire and at time of accident/injury.


Our quiz 

A retail employer requires its employees to wear navy blue golf shirts and khaki-colored pants to work. Neither the pants nor the shirt have the employer’s logo, but employees must adhere to the dress code anytime they are working. 

Does the employer have to reimburse employees for the cost of purchasing these clothes?

YES or NO

ANSWER IS FOUND AT THE END OF OUR FEATURE ARTICLES


On to our feature articles ....

Exit Interviews – Common Mistakes

When an employee resigns or leave the organization, most companies do give them an opportunity to appear for an exit interview. And believe me many a time conducting exit interview becomes a much complex task then recruitment interviews.

Conducting an exit interview is tricky as there are chances to meet a sulking employee, not so happy ones and yes not to forget some happy ones as well. These interviews are by and large optional as there may be some employees who might feel discomfort appearing for one and sharing the thoughts while leaving the organization. The human resources professionals and managers play an imperative role in ensuring that the interview remains as productive and as educational as possible.

But even then we make a few mistakes and then the purpose of conducting such interviews dissipates. What are these mistakes?

 Let us discuss here:

Preparing an Agenda: 
A good number of HR professionals do not prepare the specific agenda while conducting exit interviews, which takes the discussion to a totally different level and make it haywire. One needs to be specific in terms of the agenda and try and stick to it to get the best out of the interview. Even the employee who is leaving will appreciate your professionalism if things are put in a formatted and structured manner. 

Maintain Confidentiality: 
Win the faith of the employee that the organization cares and values employee opinions and experiences. Interact with the employee as honestly as possible. Clarify that all the details discussed and shared will remain confidential. Also when discussing the issues with senior management it is always better to discuss the specific concerns in general rather than discussing employee specific issues and concerns. Besides potential bridge burning, risks for departing employees include the information falling into the wrong hands and ruining references.

Being Defensive: 
When conducting exit interviews there are chances that an employee reveals and shares certain information about a colleague, a superior or subordinate that as an HR professional or Line Manager we may not appreciate. But getting defensive will not solve the purpose as the employee then may not disclose the details which can be rectified. Best policy here is to be all ears to the resigning employee as there are still chances that you may retain the person so it is best to hear him/her out.

Person Specific Question:
 It is always better to avoid asking direct questions about a specific person as the employee may like to continue having a professional relationship with that person and providing answers for any such specific questions may not let him open up during the exit interview.

Analyzing the Exit Interview: 
Here most organizations do not actually take an action on the data and information collected through exit interviews as well as they don’t analyze the information provided by one employee with others to seek out certain valuable inputs, thereby distorting the entire purpose of conducting an exit interview. Analyzing may give a better opportunity to look for issues which are repeatedly mentioned over a period of time by different employees.

Conducting Interview On Last Working Day: 
If we do that it looks more of a formality than the requirement. Last day an employee would have to take clearance, deposit certain things at various departments, meeting peers and final handing over so an organizing exit interview may be too clumsy. The employee will also not take the exit interview as an opportunity to contribute something to the organization and would not discuss important things.

Do Not Judge: 
Do not put words in the mouth of the employee just for the sake of it, do not perceive the information made available from your point of view, leave the space open for a convenient and comfortable talk. Criticizing the issues or employee who has already resigned will also not suffice the objective of an exit interview.

Personally, having a discussion along with a structured format where all the information can be written down is the best way of conducting an exit interview, but companies should provide an availability of questionnaire if some employees are not comfortable sharing the information in person. Today many organizations have tools where the questionnaire is available on computers through ERP or other software to make the process convenient.
 

MJMS has a template for an exit interview that provides a standardized process and helps to eliminate some of the common mistakes discussed in this article. Go to: www.mjms.net/webforms.html#termination.

Source: Copyright © 2008–2010 CiteMan.com. All rights reserved.               

Exempt Deductions During Slowdown 

When Business Slows, Can Exempt Employees’ Salaries Be Trimmed?

The persistent economic slowdown has forced a mid-size printing company to consider a plan to cut back on the hours of salaried exempt employees. The company wants to require its executive and administrative employees to stay home or leave early during periods of insufficient work and deduct the time from their annual leave. As long as they have enough accrued leave, they will receive their regular salaries; once their annual leave is exhausted, their salaries will be reduced in full-day increments, but never below the $455 required to qualify as exempt employees under Section 13(a)(1) of the Fair Labor Standards Act (FLSA). 

The company’s HR manager did some research and found an opinion letter by the Department of Labor’s Wage and Hour Division that provides useful guidance.

FLSA 2009-18 concerns a health care provider that did not want to keep a full administrative staff on duty during periods when there were few patients. The health care provider wanted to require these exempt employees to deduct non-work time caused by slowdowns from their paid-time-off (PTO) accounts. Once they had withdrawn all their time from the PTO bank, the health care provider wanted to begin making deductions from their salaries.

FLSA 2009-18 discusses the requirements for Section 13(a)(1)’s exemption from the minimum wage and overtime pay requirements for workers employed as bona fide executive, administrative, professional, and outside sales personnel, and explains two conclusions: 

1.

Employers can make deductions for absences from an exempt employee’s accrued leave in hourly increments, so long as the employee’s salary is not reduced. 

Note by MJMS
This means the employer must have some type of bona fide sick leave, vacation, PTO or personal leave bank from which to draw time to cover the absence. When the leave bank is exhausted and the exempt employee is absent, the employer must still pay the full salary with no deduction. Disciplinary action may be administered in such cases.

2.

If any deductions are taken from an exempt employee’s salary for full or partial day absences necessitated by the employer or by the operating requirements of the business, that employee will not be considered paid “on a salary basis,” even if his or her salary never drops below $455 per week. 

Full or partial-day reductions in compensation for exempt employees would jeopardize their status because the employees are not being paid on a fixed and guaranteed weekly salary basis without regard to the quantity of work performed, as required by Section 13(a)(1). 

To read FLSA 2009-18, click here:

Source: Copyright ©2010 HRWebAdvisor.com
 

 Inflated Job Titles

Job Title Inflation Is a Big Temptation in Tough Economic Times
 

When money for generous raises is in short supply, many companies turn to other means of rewarding their valued staff members. A paid “afternoon off,” a plaque or other award for outstanding work, or concert tickets for an employee with the most sales in a month are all inexpensive ways for an employer to show appreciation for work well done. If you are tempted to bestow a higher job title on an employee, though, be careful, says John K. Skousen, Partner in the Irvine, California, office of Fisher and Phillips LLP.

Giving an employee duties that he or she is not capable of performing or conferring a title that suggests the employee is doing something more than his or her actual duties is risky, Skousen warns. To avoid the pitfalls of job title inflation, Skousen suggests the following: 
 
Avoid Negligently Promoting. 
If employees are not trained to perform the function indicated by their title or they are promoted to a position in which they are making decisions beyond their expertise, the company could be liable for their actions and mistakes. 
Don’t Overwork Promoted Employees. 
Some companies combine jobs, create new titles for the combined positions, and load responsibilities onto the shoulders of fewer employees. This can cause stress, injuries, and staff turnover. 
Refuse to Play the Name Game. 
The job titles “associate” and “consultant” have become overused, diminishing their value as a true indicator of responsibilities. When naming positions, be sure that the qualifications associated with a title are maintained and that management titles are respected. 
Maintain Clarity for Exempt and Non-exempt Job Classifications.
Companies that give supervisory titles to employees often assume they can shift the employee into exempt status under the Fair Labor Standards Act. But if the actual job duties do not reflect the standards for job classification, you risk enforcement actions and potential lawsuits seeking unpaid overtime. 
Remember Lessons Learned. 
In the 1980s recession, many employers attempted to compensate overworked and loyal employees with unpaid promotions. Job title inflation, they learned, only increased their exposure to legal, compliance, and reputation risks.

Fisher and Phillips is a labor and employment law firm that represents a wide variety of employers around the country. This link takes you to the firm’s website: http://www.laborlawyers.com

Source: Copyright ©2010
HRWebAdvisor.com


Answers to the  quiz:    
NO is correct 

 
Explanation: 
Employers are not required to reimburse employees for required clothing that does not have a company logo and could be worn outside of work for non-work activities


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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.