NLRB Requires New Legal Poster by January 31, 2012 for Employers

Compiance with the National Labor Relations Board  entails keeping up to date with their posting requirements.  There is a new posting requirement for all employers regarding a notice about the National Labor Relations Act. The posting is for all employers, whether unionized or not.

Employers are required to post by January 31, 2012 a notice regarding employee rights under the NLRB's NLRA (National Labor Relations Act.)

As with other required postings, this notice should be placed in a conspicuous location with the other labor and employment law posters.  The NLRB provides a template on their website which is available for download, at no charge.

For more information and a link to the required notice, please see http://www.gordonrees.com/publications/viewPublication.cfm?contentID=2265. Although a number of organizations are challenging the rule, at this point such challenges have only postponed, but not have not eliminated, the poster requirement. We will notify HELPLINE users if there is a change; until such time all affected employers should comply no later than January 31 of next year.

The poster is available for download at http://www.nlrb.gov/poster

This article was written by Jeffrey C. Garr, CEO of HR Knowledge, Inc. at www.hrknowledge.com.  For more information please contact us!

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.

Open Enrollment, What to do?

Q:  It's that time of year again - Open Enrollment. 

How can employees better determine the benefits coverage they need to protect themselves and their families?

A:  This is a great question.  Far too often, employees make mistakes in their benefits coverage decisions which can cost them a lot more money in the long run or even influence their health care decisions when their coverage is insufficient.  Two of the most common mistakes are not meeting deductible amounts and failing to contribute enough to their flexible spending accounts.

Typically, when it comes to health insurance, employees rarely have a thorough understanding of what their policy covers.  A benefits consultant or broker, who not only has a thorough understanding of the various providers and plans, but knows the most common mistakes employees make, can help employees better navigate the insurance selection process. 

Communication is key.  Employees cannot be expected to make informed decisions about insurance when overwhelmed with information during the hiring process or at open enrollment.  A benefits consultant or broker will take the time to understand the needs and preferences of employees and advise them accordingly.  Not only will employees be able to make an educated decision about their benefits coverage, but ultimately, they will be well-protected and more satisfied overall with their benefits coverage.

FSA's can be either very complicated to understand or if explained properly can be easily understood.  We recommend an Open Enrollment Meeting for all employees to help them better understand all of their options with benefits.

For more comprehensive guidance, contact HR Knowledge, Inc.at Sales@hrknowledge.com or call at 508-339-1300

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.

Company Fraud are there signs?

Can You Spot Someone Committing Fraud at Your Company?

Believe it or not, someone committing corporate fraud, or "cooking the books" is not that difficult to spot, once you know what to look for.  According to the study "Who is a Typical Fraudster?" developed and based on analysis of corporate fraud by KPMG International’s member firms, "fraudsters"  typically meet the following critera:

• 36-45 year old male in finance related role
• 10+ years longevity with the company
• Rarely takes vacations
• May only want to work with certain vendors
• Stressed-out most of the time

Also, their behavior is suspect:

• They cut corners
• They may have poor performance or make mistakes
• They tend to hire "Yes men" who will go along with whatever they say or do
• They seem to live well beyond their means
• They may exhibit signs of alcohol or substance abuse

Although this information is designed to give you an overview of someone most likely to commit fraud, it's imperative that you refrain from profiling.   HR execs must take measures to protect not only the company, but the employee.

During the hiring process please make sure you perform a background check on the people you hire, often times there can be a history in their past that might demonstrate some or all of the following:

• Criminal activity in the past
• Financial trouble for late payments to vendors
• Bankruptcy
• Employer Lawsuits for Workers' Compensation or an Employment Practice Lawsuit for Wrongful Termination

Checks and Balances in the workplace are vital to assist in prevention of fraud.  Always have a different person reviewing and balancing the checking accounts and monitor all cash and check writing capabilities.

For more comprehensive guidance on all things HR, contact HR Knowledge, Inc. at Sales@hrknowledge.com or call at 508-339-1300.

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.

Hiring Employees with I-9 Compliance

Our most recent hire worked for almost a full week before it was discovered that she failed to meet I-9 eligibility criteria.  How are we supposed to pay her?

It is a challenge to pay someone for work performed when there is no proper documentation, but she must be paid, period.

The Department of Labor’s (DOL) states “work not requested but suffered or permitted to be performed is work time that must be paid for by the employer…The reason is immaterial. The hours are work time and are compensable.”

And, regardless of her I-9 status, the Internal Revenue Service (IRS) expects you to withhold payroll taxes.

There's really only one way to avoid this type of situation and that is by planning carefully.  Here are some tips to follow in order to ensure there is no violation of the Fair Labor Standards Act or IRS rules:

• Pay the employee to ensure you fulfill the requirements of DOL and IRS.  You may pay the wages owed the employee in cash or by check (via the company's payroll system) minus the amount deducted for taxes.
• When hiring, be sure to require work authorization PRIOR to the commencement of work
• Obtain and complete ALL paperwork on new employees BEFORE any work is performed, which of course includes the I-9.  And, be sure Payroll has a copy of the employee's Social Security card on file

For more comprehensive guidance, contact HR Knowledge, Inc. at Sales@hrknowledge.com or call at 508-339-1300.

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.

How do you incentivize sales people and compensate them correctly?

Compensating your Sales people correctly can be a great challenge to the average business manager/owner.  If you don’t compensate them correctly or adequately, your sales people's production may suffer, which will directly affect business growth and profit.  If you do incentivize them correctly but pay them too much, it could create future problems related to growth and or profitability of your business.

Below are 7 key points to building a strong sales team:

1. Consider a Compensation Model prior to targeting and hiring sales people.  It helps to have a good understanding of what makes some people "tick", yet not others.  Maslow’s Hierarchy of Needs states that there are a number of aspects that generate needs for any person, some of which may be of more interest to one person and less interest to another.  Once you understand which aspect(s) motivate people, you can create a better environment to help create greater success.  According to Malsow, people are motivated by need, from the most basic biological/ physical needs (food, shelter, sleep, etc.) and safety needs (security, protection, stability) to the more emotional needs of belongingness (relationships, work group) and esteem needs (achievement and reputation) to self-actualization needs (personal growth and fulfillment).  For example, someone who is unemployed would be motivated through the fulfillment of the more basic physical and safety needs, whereas a person who already has job security, would be more motivated through promised fulfillment of esteem or self-actualization needs.

2. Hire the right team of sales people.  Before hiring, understand the type of sales person you need and then target them.  Are you looking for an “order taker”? This is a person who can call on existing accounts and build great relationship with the client.  Are you looking for a sales person who can “make it rain”?  This person has the ability to create and generate business.  If they are able to "find" business then they are the “hunter”. Understand what type of sales person you need and then target them in recruiting.

3. Adhere to the "Three A's" when hiring.  Once you understand the type of sales person you are looking for, remember the "Three A’s" when hiring for a sales position in your company.  The first and most important "A" is Attitude. The right attitude is everything when hiring people.  If they have the right attitude they will go through the wall for you to close business and follow the direction of the company.  Attitude is vital and without it, you have the wrong person on your team. The second "A" is Aptitude.  Ask yourself if s/he has the aptitude for the position of the company. Webster Dictionary defines aptitude as “capability; ability; innate or acquired capacity for something; talent".  If they don’t have the aptitude or capability or ability to take the sales position, then s/he is the wrong person for the company as well.  The final "A" is Altitude, meaning, how high can they go? How high do you need them to go? Will they plateau at a certain point and coast?

4. Beware of complacency.  The next concern when hiring sales people and thus managing them is complacency.  Most sales people will reach a point of complacency and then coast in the job.  Less work and more play becomes their mantra. The key challenge for management is to do all you can do to prevent complacency by your sales people.  Most people become satisfied (and have obtained fulfillment of Maslow's higher level of emotional needs) once they attain job satisfaction or reach a particular level of income or status.  With sales people, the challenge is to prevent this from happening.

5. Utilize your Compensation Model.  It is vital to keep sales people motivated and “in the game”.  From a managerial standpoint, it is far easier to compensate sales people and steer them in the direction the company wants them to go than it is to create compensation models to drive operations people, where you have to rely on coaching and management techniques.  Sales people are experts in understanding compensation models and how they can maximize their income in the quickest time frame.  They are usually very highly motivated and understand how the game works. This being the case, it is imperative that you find a compensation model to drive the sales team to do what you want them to do.

6. Understand what your company’s objectives are and then create the compensation model to attain those objectives.  For example, if your interest is to expand and grow your client base, then the compensation model needs to reward your sales team for new business and retention. You can create additional incentives to ensure that a large portion of their pay will be derived from new business acquisition.  If it is imperative that your sales team be involved in the retention of clients, then you need to find a compensation model which will reward them for retaining and maintaining great relationships with clients. If they lose clientele, you must ensure that this will affect their compensation. This is a delicate area because if your operations team is not equally committed to retaining clients and the service or product you are delivering is not up to standard, then the sales team has no chance to retain the business no matter how great their relationship is with that client.

7. Do all that you can to ensure that the product or service you deliver is “remarkable!"  Make sure that your company is setting the tone and the barometer in the marketplace for what you do. This will allow your sales people to confidently and comfortably sell your product or service. Without this, no sales person of any quality can survive and thrive in today’s business environment.  Make sure that your operations team are as committed and passionate about clients as your sales team.

For more information about compensation, HR and or benefits please feel free to contact Jeff Garr, CEO at HR Knowledge or 508-339-1300 www.hrknowledge.com

 

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.

Health, Disability, Life, Dental, Vision Insurance: paying too much?

Do you know if you are overpaying for your company sponsored Health, Dental, Life & Disability plans?

One question we frequently hear from potential clients is - "Is there is any way to tell if our sponsored group benefit plan rates are set correctly by the insurance companies?"  The answer is "yes".  And, there's also a way to find out how much profit your insurance company yields from your company premiums.

At HR Knowledge, we consistently reduce premiums of group benefit plans through our proprietary algorithm which can accurately determine the profitability of your group plans with the carriers.

Here are a couple of examples of companies we have helped:

A major health insurance company assessed that for the $3 million that Company A received in premiums, the insurance company had paid out $3.3 million in claims and associated expenses. The health insurer was requiring an annual

premium increase of $385,000. After running the plan financial data through our proprietary algorithm, we were able to leverage the results to secure a reduction off Company A’s renewal of $400,000, which actually resulted in a rate reduction for the client.

A major health insurance company received $1.9 million in premium and paid $2.275 million in claims, a loss of $375,000. They were requiring an increase from Company B of $271,000.  After running the group’s plan data through our proprietary algorithm, we discovered that the losses were not as high as the insurance company had represented.  The renewal increase was subsequently reduced to $100,000.

How we can help your company?

• We can review your benefit costs, provide a detailed analysis utilizing the proprietary algorithm to accurately determine the profitability of your group plans with the carriers.  Then we'll determine more equitable pricing of these benefits. 

• This analysis helps HR Knowledge negotiate your benefit group plan rates with compelling indisputable data, that the carrier underwriters clearly understand and adopt to ensure more AFFORDABLE pricing on your benefits

We impact 80% of the companies we analyze, yielding substantial savings on benefit plans.  To receive a no obligation quote or “second opinion” on your group benefit plans, contact HR Knowledge at 508-339-1300

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.

Employee/Employer Benefits Costs are too High!

Trends in Employee Benefits -

More and more business are moving to medical plans with deductibles. Medical plans with deductibles generally provide lower premiums for the employer and employee.  The challenge faced with a deductible plan is that employees have to burden a greater portion of the insurance costs.  There are ways to help manage this by utilizing an outsourced HR Service provider like HR Knowledge, Inc.

A recent trend to help curtail the rising costs of health insurance is to increase the deductible, but to also implement a Health Reimbursement Arrangement (HRA). By doing so, the premiums are further reduced due to the higher deductibles, but the company “self insures” a portion of the deductible through a HRA. The HRA protects the employee as the company shares in the deductible expense. We are seeing premiums decrease by 10-20% when this strategy is implemented. After paying its portion of the HRA, a company will likely see savings of 5-10% while maintaining strong benefits.

As a licensed broker providing "Best in Class" benefits, HR Knowledge, Inc. can help your company contain costs, minimize risk, and relieve the HR administrative burden. For more comprehensive guidance on a HRA, contact HR Knowledge, Inc.at Sales@hrknowledge.com or call at 508-339-1300.

 

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.

Background checks: How far can you go?

Background checks: How far can you go? - Jun. 13, 2011

Issue: Your company is opening a new branch office and getting ready to hire workers. You would like to conduct background checks to get more information on the candidates in order to make informed decisions. What is permitted when checking applicants’ background and work history?

Answer: Employers do not have unlimited rights to investigate applicants’ backgrounds and personal lives. If individuals’ privacy rights are violated, they can take legal action against you. The following list summarizes the types of information that employers often consult as part of a pre-employment check and the laws governing access and use for making hiring decisions.

• Credit reports. Under the Fair Credit Reporting Act(FCRA), employers must obtain an employee's written consent before seeking an employee's credit report. If you decide not to hire or promote someone based on information in the credit report, you must provide a copy of the report and let the applicant know of his or her right to challenge the report under the FCRA. Be aware that some states have more stringent rules limiting the use of credit reports.
• Criminal records.To what extent a private employer may consider an applicant's criminal history in making hiring decisions varies from state to state. Because of this variation, you should consult with a lawyer or do further legal research on the laws of your state before probing into whether or not an applicant has a criminal past.
• Lie detector tests. The Employee Polygraph Protection Actprohibits most private employers from using lie detector tests. The law includes a list of exceptions that apply to certain sensitive businesses that provide armored car services, alarm or guard services, or manufacture, distribute, or dispense pharmaceuticals.
• Medical records. Under the Americans with Disabilities Act,employers may inquire only about an applicant's ability to perform specific job duties and cannot request an employee's medical records.
• Bankruptcies. Bankruptcies are a matter of public record and may appear on an individual's credit report. The Federal Bankruptcy Actprohibits employers from discriminating against applicants because they have filed for bankruptcy.
• Military service.Military service records may be released only under limited circumstances, and consent is generally required. The military may, however, disclose name, rank, salary, duty assignments, awards, and duty status without the member's consent.
• School records. Under the Family Educational Rights and Privacy Actand similar state laws, educational records (such as transcripts, recommendations and financial information) are confidential and will not be released by the school without a student's consent.
• Workers' compensation records. Workers' compensation appeals are a matter of public record. Information from a workers' compensation appeal may be used in a hiring decision if the employer can show that the applicant's injury might interfere with his ability perform required duties.

Source: U.S. Small Business Administration; http://www.SBA.gov.

www.hrknowledge.com

508-339-1300 Call Today for More Information!

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.

IRS Mileage Rate Increased for July 1, 2011

IRS Increases Standard Mileage Rate for Last Six Months of 2011

The IRS has increased the standard mileage rate to 55.5 cents per mile for business miles driven from July 1, 2011 through December 31, 2011. The standard mileage rate is an optional rate that taxpayers can use to calculate their deduction for the cost of using an automobile for business purposes. The IRS usually sets the standard mileage rate annually but decided to make this special adjustment for the second half of 2011 because of the recent increases in gasoline prices. The rate is 4.5 cents higher than the 51 cent rate that was in effect for the first six months of 2011.

Self-employed people can deduct their business miles using the standard mileage rate or by calculating actual costs. To use the standard mileage rate, you must use that method the first year you use the vehicle in your business, and you can't have claimed accelerated depreciation deductions or have taken any Section 179 deductions for the vehicle.

Injured workers who are receiving workers' compensation benefits from the State of California also use the IRS mileage rate when they request reimbursement for miles driven to and from medical appointments, pharmacies, and the like.

Effective Date: July 01, 2011

For More Information contact HR Knowledge, Inc. at www.hrknowledge.com

or CALL

508-339-1300

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.

What Employer Should do if an Employee Advises of a Medical Condition

Question:

What must HR do if an employee advises of a medical condition?

Answer:

Full Question: If an employee advises her supervisor/manager that she has been diagnosed with a medical condition (MS), but has not provided any documentation or advised that she is unable to perform her job, is there anything that HR must do? The supervisor did advise her that she may want to see HR if she has any questions, however, she has not done so. Also, she does not have any personal/vacation time remaining for the year and this condition. Answer: If the employee in question has merely disclosed her medical condition, but has not requested a reasonable accommodation, and if it is not obvious that she needs one, the employer should simply continue to treat her as it would any other employee, and as it would have treated her had she never made known her condition. Unless and until the employee requests a reasonable accommodation, or it becomes clear to the employer that she needs one to perform essential functions of her job, the best thing to do is to just ignore the fact that she has any disability at all. Treating the employee differently (better or worse) can create exposure to a disability discrimination claim and is ill advised. To the extent she subsequently seeks reasonable accommodation or the employer, based on objective evidence (and not rumor or speculation), reasonably believes that she may require one in order to perform essential functions or to prevent a direct threat, at that point the employer can and should explore with the employee what kind of accommodation she needs in order to be able to perform essential job functions, and whether such accommodation can be provided without undue hardship to the employer. The following guidance published by the EEOC may assist you in addressing reasonable accommodation and undue hardship, should it subsequently become an issue (it does not appear that it is now, based on the inquiry): http://www.eeoc.gov/policy/docs/accommodation.html. Also keep in mind that if the employee's performance slips or she engages in misconduct or a policy violation, the employer should not assume that her medical issue caused it, nor must the employer tolerate unsatisfactory performance or conduct merely because the employee has previously disclosed a medical condition. Indeed, while the fact of an employee's disability protects the employee against unfair treatment or discrimination in the workplace, it does not entitle the employee to any treatment that is better or more preferential. For specific guidance in managing performance and conduct of a disabled employee within the confines of the Americans with Disabilities Act, should this become an issue, please see: http://www.eeoc.gov/facts/performance-conduct.html. www.hrknowledge.com Call today for more questions 508-339-1300

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.