We have two important issues in this month’s e-newsletter: 1) a link to the new American Recovery and Reinvestment Act of 2009 (ARRA) required postings and 2) the new I-9 form effective April 3rd.
Equally important is to keep abreast on the Employee Free choice Act (EFCA), which will have a negative impact on employers. Please read the article below, which explains why each employer should care and make their voices known.
Have a fun and prosperous month!
Terri Olson Spreen
Click here to access the new poster for the American Recovery and Reinvestment Act of 2009 (ARRA). If you missed the article on ARRA, you can read about it on our website, http://www.hrprescriptions.net. Still have questions? Give us a call at (714) 441-2422! We can help you understand what changes you need to make to comply with the new laws.
As mentioned in our earlier e-newsletter, the U.S. Citizen and Immigration Services (USCIS) has published a new I-9 form. The form goes into effect April 3rd. Use this form for future employees; there is no need for existing employees to complete the new document. Although the new document is available in Spanish, the Spanish version may only be filled out by employers and employees in Puerto Rico. All other U.S. territories may provide the document to Spanish-speaking employees for reference, but must complete the English version for their records.
Feel free to submit YOUR comments or concerns regarding the pending Employee Free Choice Act. Here is an article (published on March 17, 2009) by Tom Donohue, President and CEO of the U.S. Chamber of Commerce voicing his concerns over this pending legislation.
President Obama’s hard-charging chief of staff, Rahm Emanuel, says that you should “never allow a crisis to go to waste.” Big labor appears to be heeding that advice. It’s trying to sell the badly misnamed Employee Free Choice Act (EFCA)--better known as card check--as a cure to rising unemployment and the ticket to a better life for the middle class.
If you’re going to fib, you may as well make it a whopper!
The unions are also insisting that the legislation be rammed through Congress as quickly as possible before the economic crisis passes or Americans discover the real facts about what it would do. Namely, it would effectively eliminate secret ballot elections in unionization votes and, through binding arbitration, give government authorities the power to dictate wages, benefits, and other fundamental business operations.
Why should every business care? Because card check would make union organizing cheaper and faster, thereby putting even the smallest companies in the unions’ crosshairs. Why should every worker care? Because it would strip away America’s tradition of secret ballot elections and expose workers to intimidation and coercion. The bill would ultimately destroy jobs by making it more difficult for businesses to adapt and innovate. This is exactly the wrong prescription for our ailing economy.
A new study, which was conducted by the nonpartisan consulting firm LECG, determined that card check legislation would negatively impact the landscape of the U.S. economy, increasing unemployment and stifling job growth for all Americans. In fact, the predicted increase of 1.5 million new union members in one year would lead to the loss of 600,000 jobs by the following year.
Additionally, a recent analysis conducted by labor experts at the U.S. Chamber found that increased unionization is anything but a ticket to the middle class. The states with the highest rates of union membership also have the lowest rates of job growth.
Why would Congress even consider passing such legislation? I can give you 450 million reasons--that’s how many dollars big labor shoveled into the 2008 elections. Now, it’s payback time.
The U.S. Chamber in partnership with the [your local chamber] is leading the fight against this power grab by the unions. In these troubling and uncertain times, we know one thing for sure--when you find yourself in a hole, stop digging. Card check would delay and undermine economic recovery, and that’s why it must be defeated. Every worker should have the right to join or leave a union under fair rules. Card check is not fair--and it’s not right for America.
While many reports are still speaking to the economic slump, many are starting to predict that a turnaround is on the horizon!
As we continue to ride out the challenges our economy brings, I am reminded of the importance of working together to meet each other’s needs. It is during times of difficulty that we discover the true meaning of community and see relationships strengthened. I encourage you to look to your affiliates and friends for support as we head toward improving financial situations.
Please let me know if you have any HR needs that I can meet. My business door is always open for questions, concerns and discussions. I look forward to working alongside you through the good times as well as the times of struggle.
Have a wonderful month!
Terri Olson Spreen
You may have already heard that there are new health coverage laws in place as part of the American Recovery and Reinvestment Act of 2009 (the “Act"). Employers with 20 or more employees who offer group health insurance are already familiar with COBRA, which allows qualifying terminated employees to continue their group coverage for a specified period of time.
As part of the new Act, the federal government will now subsidize, on a limited basis, up to 65% of the COBRA health insurance premiums for employees who have been (or will be) involuntarily terminated between September 1, 2008 and December 31, 2009. Employees must otherwise qualify for COBRA benefit continuation to be “assistance eligible individuals.” Participants will be required to pay 35% of the COBRA premium; the employer paying the remaining 65%, which will be credited against payroll taxes. Individuals will be eligible for a maximum period of nine months.
Our employment attorney, Eric Sohlgren of Payne & Fears LLP, offers additional information and advice through the firm’s newsletter. Please click here for more information.
Dear Clients and Friends:
As each of us tackles the challenges of this economy, we know one thing for sure...change can be good. It makes us look closely at our efficiencies - reviewing our policies, practices and processes, evaluating the effectiveness of our staff, etc. We tend to take the time to see if we’re doing everything we can to build a strong and prosperous business, not just survive.
I’m grateful for each of you and pray for your businesses frequently. May we all “weather the storm” well, coming out of it more proficient and productive, and may the challenges make us better leaders.
Have a great month!
~ Terri Olson Spreen
The U.S. Citizen and Immigration Services (USCIS) has a revised I-9 form for use starting April 3, 2009. You will need to use your current form until that date. Watch for an update from us on or after April 3rd, informing you that the new form has taken effect.
There is a Spanish version available as well. It may be filled out by employers and employees in Puerto Rico ONLY. Spanish-speaking employers and employees in the 50 states and other U.S. territories may print the form for their reference, but may only complete the form in English to meet employment eligibility verification requirements.
You will use this revised form for future employees; there is no need for existing employees to complete the new document.
On January 29, 2009, President Obama signed a bill into law (the Lilly Ledbetter Fair Pay Act) that overturned a U.S. Supreme Court decision that a person could not sue for pay discrimination that is not reported within the required 180 days. The plaintiff had argued that discrimination occurred - and the clock restarted - every time she received a paycheck for compensation that was less than her male peers. The justices disagreed.
However, in response to the widespread criticism of the ruling, the House passed the new Act, which states that discrimination would be deemed to occur every time a new paycheck is delivered, even if it is years after the decision that gave rise to it.
The Ledbetter Act is complex and retroactive to May 28, 2007, (the day before the U.S. Supreme Court ruled against Ledbetter in her lawsuit). That means that it applies to all such pay discrimination charges that were pending on or after that date.
If you think you may have issues with male employees being paid more for the same job than their female counterparts, we recommend that you give us a call as soon as possible!
Have you updated your Employee Handbook and employment postings to communicate the new provisions for military family leave? Here are the two new qualifying events which entitle an eligible employee to FMLA:
- Eligible employees with a spouse, son, daughter or parent on active duty or call-to-active duty status in the National Guard or Reserves in support of a contingency operation may use their 12-week leave entitlement to address certain qualifying exigencies. Qualifying exigencies may include attending certain military events, arranging for alternative childcare, addressing certain financial and legal arrangements, attending certain counseling sessions and attending post-deployment reintegration briefings.
- FMLA also includes a special leave entitlement that permits eligible employees to take up to 26 weeks of leave to care for a covered servicemember during a single 12-month period. A covered servicemember is a current member of the Armed Forces, including a member of the National Guard or Reserves, who has a serious injury or illness incurred in the line of duty on active duty that may render the servicemember medically unfit to perform his or her duties for which the servicemember is undergoing medical treatment, recuperation, or therapy; or is in outpatient status; or is on the temporary disability retired list.
Do you need you handbook or posters updated? Give us a call…
Dear Clients and Friends:
As our country continues to struggle in this economy, we can be grateful for the many businesses that are still “hanging in there” and retaining their workforce. I’ve provided some ideas below to help you during this time. If you have other thoughts that we can share with readers, please send them to me and we’ll get through this supporting each other. In addition, if there are other topics that you would like addressed in future newsletters, please let me know.
Have a prosperous January and don’t forget to have fun!
Terri Olson Spreen
In order to reduce company expenses and remain fiscally healthy during a declining economy, there are numerous things that can be done before considering cutbacks or a layoff. The best decisions will protect your most valuable asset…human capital! Consider the following:
- Employees can be engaged in developing strategies. Communicate your concerns to employees and ask for suggestions on cost-cutting and/or generating new revenue.
- Look at less profitable lines of business or activities in the company. Are there product lines that can be dropped or can you, at least, cut back on the marketing efforts? Are there redundant processes or other kinds of activities that could be eliminated to save money?
- If cutbacks are needed, are there top performers that you can move to other departments to protect their jobs, continue to benefit from their talents and give them a new challenge?
- If you’re paying 100% of the employees’ health insurance premiums, what is the impact on your bottom line to set up a 125 Plan and have employees pay 20% of their premiums with tax-free dollars? This helps stabilize the company and everyone gives up a little to protect their jobs and those of their co-workers.
- Check out the EDD; they have a part-time unemployment benefit for employees that job-share when the employer has cutbacks.
Need more ideas? Call or e-mail us.
Employers must track work related accidents (except first aid) during the year on Cal/OSHA Form 301 and complete the Cal/OSHA 300A report for posting February 1 through April 30th. The posting should be in an area accessible to all employees. Need the documents? Go to http://www.californiaosha.info
As you know, California now prohibits text messaging while driving (that just seemed like a “no brainer,” but nevertheless…). Make sure that your Employee Handbook addresses this issue for employees that drive on company time and for company business. In addition, you may also be experiencing problems with employees text messaging during working hours. This disciplinary issue should be addressed as soon as possible or employees will assume it is acceptable. Most employers don’t allow employee use of personal mobile phones during working hours or, at least, require employees limit their conversations to critical calls. Critical calls can include a latch-key child calling the parent to announce his/her safe arrival to home. Of course, a call interrupting your employee’s work to ask, “Mom, where is the peanut butter?” is not considered critical (well, maybe it is to the child!). Whatever your policy, make sure you include it in your handbook so all employees know of your expectations and boundaries for professional behavior and work ethics.
Merry Christmas!
This year has been a huge blessing with the pleasure of serving wonderful clients that made this dream possible and this business so fun! I want to take this opportunity to thank each of you for your business and confidence in our services this past year. I hope and pray that 2009 will be one of recovery for our economy as well as stability and growth for your business. May you and your family have a wonderful, safe and blessed holiday season. We’ll see you next year!
Terri Olson Spreen
