An article in the Society For Human Resource Management (www.shrm.org) magazine brings attention to a bill introduced in both houses of Congress that affects companies using contract workers.  Known as the Employee Misclassification Prevention Act, the new proposed bill adds paperwork and other costs that may reduce the savings benefit to companies using contract workers. The employer in the past wasn’t required to keep documentation on non-employees and in many cases wasn’t responsible for payroll taxes for that worker.  Under the propsed bill that will change.

There are speculations as to why this bill is necessary.  One reaon may be that a misclassified contract worker is prevented from accessing wage and hour protections and benefits they may be entitled to. 

Among the bill’s many provisions targeting misclassification:

* Requiring that employers keep records reflecting the correct status of each worker as an employee or nonemployee and stating expressly that employers violate the FLSA when they misclassify workers.
* Increasing penalties on employers who misclassify their employees and are found to have violated employees’ overtime or minimum wage rights. Civil penalties would be imposed, up to $1,100 per employee for first-time violators, and up to $5,000 per employee for repeat or willful violators.
* Allowing double liquidated damages for employers that fail to accurately classify an individual as an employee and violate the minimum wage or maximum hour provisions of FLSA.
* Requiring employers to notify workers in writing of their classification as an employee or nonemployee.
* Creating an official Department of Labor (DOL) “employee rights web site,” explaining that employees may have additional or greater rights under state or local laws and how employees may obtain additional information about their rights under state or local laws (the web site may provide a link to permit individuals to file complaints online with the Wage and Hour Division).
* Providing protections to workers who are discriminated against because they have sought to be accurately classified.
* Mandating that states report quarterly to the DOL the results of state auditing and investigative procedures with respect to identifying employers that may have excluded employees from unemployment compensation coverage.
* Directing states to strengthen their own penalties for worker misclassification.
* Permitting the Wage and Hour Division, other administrations of DOL, and the Internal Revenue Service to refer incidents of misclassification to one another.
* Directing the DOL to perform targeted audits focusing on employers in industries that frequently misclassify employees.

Tags: employee benefits, For Employers, Hiring Trends, industry news

Employers may be missing out on a group of potential employees that can be loyal and productive workers because of caregiver stereotypes. Caregivers are perceived as not able to be fully engaged in their jobs, and therefore have been discriminated against in the workplace. What are the effects and how can job seekers overcome this perception?

An article in SHRM HR Magazine describes the case in Maryland where a state trooper was denied family and medical leave based on his department’s policy that only mothers can be considered primary caregivers. Another: a Maine insurance employee was passed over for promotion because she “had too much on her plate”. In both cases, and many others, legal complaints may be the result. The U.S. Equal Employment Opportunity Commission has added caregivers to the initiative aimed at investigating systemic discrimination.

The fact is that there are a huge number of workers who have some sort of family obligation, and most manage them successfully. The caregiver may have young children, older parents or possibly disabled partners to support, but want to maintain financial independence. They deserve the chance.

Job seekers can address this issue in an interview by talking about their work habits and dedication but this can be a delicate balance. They are under no obligation to reveal family situations as part of their interview and too much personal information is also a negative. Ultimately it is important to assure that they can do the job.

Employers need to realize that in today’s world, employee work habits are becoming an issue for the entire workforce, and that caregivers are just as likely to do a great job. Dealing with the realities of family life and the balancing act between career and family exists for everyone. The more progressive companies are flexible in managing the workplace, including work-from-home options when appropriate. The ultimate goal is – show up and do the work! That makes everyone happy.

Tags: applications, candidates, employee benefits, hiring talent, job application, job seeker

Use your dirt to start a company garden. The reward is twofold-improving employee health and improving morale. The concept isn’t new, but there is a new interest in community-sponsored agriculture because of the economic situation in the country and the new emphasis on health in the U.S. It can’t hurt to cut down on prepackaged food in the lunchroom!

The orthopedic office where I once worked had a small garden plot outside the back door, where we grew chard and lettuce. Everyone used the fresh vegetables as a side dish for their sack lunches and appreciated the novelty-this was in 1988! Now big corporations are getting on the bandwagon. According to an article in HR News (Nov. 18, 2009) Pepsico opened an organic garden at headquarters in May of this year. The Haberman PR firm in Minneapolis started a “Dude Ranch” at about the same time. CEO Fred Haberman believed that the company garden lead to a healthier, more productive workforce – and by extension lower health care costs.

If you don’t have space around your workplace, you can rent a plot nearby, or try window boxes. In a time when small perks can have great impact, you are encouraging healthy living and healthy attitudes. If any of you have gardens you are aware of the satisfaction they bring. Share your thoughts and experiences!

Tags: employee benefits, employee morale, team building

According to a survey conducted by Intuit, 44% of the almost 1000 small-business owners who use their payroll packages report that they plan to hire within the next 12 months. Their concern is that even though benefits are essential to attracting new hires, they may not be able to afford them. Almost 90 % of the participants acknowledged that health insurance benefits are important to attracting talent, but over half now don’t offer that benefit due to costs. With legislation pending that could force their hand, companies may have to delay adding more employees because they can’t provide health care coverage. This in spite of the expectations that their businesses will grow in the next year.

Another benefit that in the past has been a part of most employees’ compensation package is some sort of retirement program. More and more companies are reducing the size of the retirement programs or eliminating them all together, and many feel it is not the company’s responsibility to provide that option.

All this is bad news for the employees themselves as well as our small-business owners – each needing the other to succeed, but neither getting the support to succeed and survive economically. Intuit’s survey found another interesting fact; only 1% of respondents reported receiving federal stimulus money. While these business owners are busy people, they may be missing an opportunity by not looking into the options available here.

An article at Entrepreneur.com (October 2, 2009) presents another view of benefits. The author, Bonnie Lee, points out that yes it’s true employees recognize that benefits are an important part of their job, AND there is tax benefit to the employer. The benefits are paid for with pre-tax dollars. Also, you don’t have to cough up matching FICA and Medicare contributions for this part of the employee’s compensation. Sound like a win-win! Again it takes some time to find and manage these benefits, but the company ends up with satisfied and loyal employees. Time to check it out.

Tags: benefits, employee benefits, Hiring Trends