Current Events in HR

HR News®

Proposed Overtime Rule: White-Collar Exemptions Will Fall

President Barack Obama, center, surrounded by supporters, signs a presidential memorandum directing Labor Secretary Thomas Perez to modernize overtime protections, March 13, 2014.

If the final rule on mandatory overtime resembles the initial proposal, the result would be a dramatically increased salary level for determining which employees would be exempt from overtime pay.

The U.S. Department of Labor (DOL) intends to set the new salary level at $970 a week, or $50,440 annually, for 2016. That’s more than twice the current threshold. The figure, which represents the 40th percentile of earnings for full-time salaried workers, would automatically rise each year. By contrast, the current salary level is static.

HR’s Challenges

Nearly everyone agrees that it’s time for an increase in salary level, said Tammy McCutchen, an attorney at Littler in Washington, D.C. But raising it to an annual level of $35,000 to $45,000 would be a lot more reasonable, she said.

The use of white-collar exemptions will become increasingly difficult if the final rule adopts the 40th percentile cutoff. “Each annual salary adjustment based on a percentage simply has the net result of rendering more exempt employees nonexempt,” said Paul DeCamp, an attorney at Jackson Lewis in Reston, Va.

The DOL is proposing two methods to automatically raise the salary threshold. The first would keep the level pegged to the 40th percentile—or some other percentile—of earnings for full-time salaried workers. The second would use the Consumer Price Index for All Urban Consumers to change the level based on inflation.

While the inflation-based approach has its drawbacks, they are not as severe as the percentile concept, DeCamp said.

Any automatic increase in salary level, however, would require employers to evaluate annually whether to raise the salaries of those who fall below the new minimum. For example, the new 2016 level would add an estimated 5 million currently white-collar employees. Regardless of the method ultimately chosen, employers should begin budget planning for annual increases.

Hard Choices

The proposed rule will require some hard choices, according to Michael Arnold, an attorney at Mintz Levin in New York City. Employers facing rising labor costs will be forced to ask:

• Do we pay our employees more to keep them exempt?

• Do we pay them less and/or reduce their hours to minimize overtime costs?

• Do we eliminate or reduce benefits provided to these previously exempt employees?

• Do we hire more workers to account for any shortfalls?

Employers may want to consider some cost-saving policies, such as permitting overtime work only with the permission of a supervisor (while paying overtime even when such a policy is violated, as required by law), imposing e-mail curfews to limit employees’ work time and redesignating the workweek. Changing the workweek to Wednesday through Tuesday, for example, may capture hours in a way that is less likely to incur weekly overtime wage costs than sticking with Sunday to Saturday.

While the DOL’s proposed rule would not modify the standard duties test used to determine whether an employee is exempt, the department has posed a series of questions to business leaders regarding how the test might be revised. As employers await the final rule, they are learning to live with uncertainty.

—Allen Smith, J.D.

DOL Questions About the Duties Test

Although the Department of Labor (DOL) did not modify the standard duties test for exempt status in its proposed overtime rule, the department has posed numerous questions and remains “very interested” in making it harder to meet, said John Thompson, an attorney with Fisher & Phillips in Atlanta. Inquiries include:

• What, if any, changes should be made?

• Should employees be required to spend a minimum amount of time performing work that is their primary duty to qualify for the exemption? And if so, what should that minimum be?

• Should the DOL look to California law as a model? That state requires that more than 50 percent of an employee’s time be spent exclusively on work that is the employee’s primary duty. Is some other threshold that is less than 50 percent of an employee’s time worked a better indicator of the realities of today’s workplace?

• Does the single-standard duties test for each exemption category appropriately distinguish between exempt and nonexempt employees? Should the DOL reconsider its previous decision to eliminate the long duties test and short duties test structure?

• Is the concurrent duties regulation for executive employees—allowing the performance of exempt and nonexempt duties concurrently—working well, or does it need to be modified? Alternatively, should there be a limitation on the amount of nonexempt work that an exempt worker can perform? To what extent are exempt lower-level executive employees performing nonexempt work?

—Allen Smith, J.D.

Reference:
http://www.shrm.org/magazine

Retrieved: 2015, September

International Business in a Nutshell

As Easy Explanation to International Business

International Business is a term used to describe all commercial transactions (investments, sales, private and governmental transactions, transportation and logistics) that take place between two or more nations or two or more business that operate in different countries.

Typically in International Business, corporations or private companies will undertake deals or conduct transactions for profit, while governments undertake such business objectives for political purposes.

International Business is a broad term, which refers to all business activities that involve cross border transactions of services, goods, and resources between two or more nations.

The transaction of economic resources in International Business include the transfer of capital, skills, assets, people etc. for the international production of tangible goods and services. Typically these transactions are conducted for construction, finance, banking, or insurance purposes.

Companies that engage in International business are referred to international corporations or multinational enterprises. These companies engage in a worldwide approach to market and produce goods in multiple nations. Examples of such companies include McDonalds, Yum Foods, Toyota, the Ford Motor Company, and Samsung.

International Business Law Explained

International Business law is the scope and practice of law in the global business market. International Business law includes a direct focus on economics and the law in relation to international commercial transactions, licensing procedures, tariffs and taxes, and other intricacies which are used to regulate international transactions between government entities or multinational enterprises.

International law varies between jurisdictions; the premise elaborates basic business law concepts by expanding them to an international field.

International law is typically related to trade or commerce that takes place between two nations or two companies that operate in separate countries. The laws of different jurisdictions will come into play in each transaction; an analysis of such laws for each jurisdiction must be observed and understood by the engaging parties prior to the affirmation of the business deal.

The foundation of international business law is rooted in trade agreements and the laws which regulate such transactions. Two or more countries, who join together for a specific trade agreement, must meet the specific regulations instituted by each practicing nation’s interpretation of international business law.

In addition to trade agreements, international business law will administer, regulate and subsequently deliver licenses. These licenses are needed to either conduct business in a foreign nation or are required to partake in a transaction for a specific good or service. Additionally, licensing requirements will also encompass various intellectual property or tangible property that is being exchanged between two parties.

For instance, a company operating in one country may develop a specific form of intellectual property; this company may then produce their product in another country, or may license other companies the right to produce the product. As each transaction or agreement is negotiated, the licensing rights and the exchange of property are the fundamental aspects of international business law and the primary focus of the commercial transaction.

Tariffs, taxes, and other mechanisms which surround a business transaction will vary by jurisdiction. Typically, there are basic provisions for a country that may be modified by trade agreements among different nations; these issues must be considered when a party negotiates each transaction.

 

Reference: http://business.laws.com/international-business 

   Retrieved: 2015, August

New Employee Retention Concept "Stay Interviews"

The Stay Interview – A Perfect Way To Increase Employee Retention

 

Sharing Is Caring!

Employee retention is one of the most critical tasks which an HR is charged with. This because losing employees can be extremely costly for an organization. Some estimates put the cost of replacing an employee at between 50% and 90% of their annual salary. For top talent, the cost can reach up to 200% of their annual salary. This is incredibly expensive.

As such, HRs usually try their best to retain their star employees. In most cases, HRs try to improve retention by first of all determining why employees leave. They do this through exit interviews. They also try to find out other turnover-related aspects like job satisfaction, employee engagement and motivation. They typically do this through employee surveys.

Although these approaches are great, they are not the best for improving employee retention. Exit interviews come too late. Even if they unearth some insights, they won’t apply to the interviewee. Surveys on the other hand are distant and impersonal. They can reveal some useful general information; however, they do not unearth info which applies to specific individuals.

The most effective way for improving employee retention is through stay interviews. A stay interview is a structured retention interview which is carried out on high valued employees who are at risk of leaving. The goal is to identify the reasons why the employee has so far remained with the organization. It is also identify any specific triggers which may cause the employee to leave.

Stay interviews are an effective strategy for employee retention for a number of reasons. First of all, they are proactive. Unlike exit interviews which attempt to find out an employee’s reasons for leaving after they’ve made a decision to quit, stay interviews preempt the decision. As such, any information gathered from the interview can be used to design interventions aimed at convincing the employee to stay.

Secondly, they are personal. Employee surveys are great, but they are largely impersonal. Stay interviews are extremely personal. They are carried one-on-one with the employee. As such, they can reveal detailed insights which apply specifically to the employee. For the employee, this one-on-one approach makes them feel special, appreciated and valued highly. Just this gesture alone can increase the employee’s chances of remaining with the organization.

The personal approach is useful for revealing information which can be used for carrying out a targeted intervention in the specific employee. Their primary goal is to find out why an employee has remained with the company. As such, it reveals what the employee likes about the organization. This information can then be used to create conditions which can increase the likelihood of the employee staying at an organization.

The best part about stay interviews is carrying them out is quite cheap. Unlike surveys, they require almost no investment. A typical interview can be carried out by a manager in just an hour. As such, the only investment which is required is the time. A manager doesn’t need to have any specialized skills to carry out the interview. As such, any organization can use stay interviews.

However, for a stay interview to be successful, it has to be carried out right. A successful interview is one which reveals actionable information i.e. information which can be used to inform HR decisions. The decisions are of course those aimed at improving employee retention.

Such an interview can be carried out under the following guidelines:

Make The Employee At Ease – some employees may become nervous especially if they have never participated in a stay interview before. Some aren’t comfortable speaking about their frustrations – especially to superiors. You have to handle such nerves. Make sure the employee is at ease enough to speak openly.Use A Conversational Tone – It is normal to have a list of questions prepared in advance. However, the entire interview should be carried out in a semi-informal manner. It should feel more like a chat than an interview.Listen Actively And Probe – The aim of a stay interview is to get to grips with an employee’s thoughts and feelings. As such, the interviewer should do more of the listening. A good standard is the 80/20 where the employer speaks 80% of the time and the interviewer 20%. Even then, the interviewer should listen actively, and use probes to reveal more information.Be Open Minded – A stay interview can sometimes unearth unexpected information. For instance, an employee can express some rather critical views of management. In such cases, the interviewer needs to remain calm and impartial. They shouldn’t become defensive. Basically, the interview needs to be approached with an open mind.Take Action – An interview should be followed up by visible action. Some decisions have to be made on the basis of the information unearthed. Otherwise, if no action is taken, then the interview will have been carried out in vain.

Basically, those are a few helpful tips for carrying out effective stay interviews. These of course have to be accompanied by other standard interview practices like privacy, confidentiality and friendliness. For an HR, the best thing is to develop an interview toolkit for managers. Such a toolkit can include interview questions, probing techniques and some possible retention actions which they can commit to during the interviews.

In terms of scheduling, stay interviews need to be carried out at regular intervals. The regularity depends on an organization. However, a good timing can be carrying out the interviews at least once a year. Of course such intervals are mere guidelines. A stay interview should be carried out whenever the HR deems it fit.

However, the interviews shouldn’t be carried out on every employee. Stay interviews are especially reserved for employees who are highly valued by the company. The focus is on those who the company suspects may be tempted to leave. Basically, the stay interview is the HRs secret weapon for handling retention of high value employees.

In a nutshell, stay interviews can play an important role in reducing the turnover of highly valued employees. They do this by enabling the HR to unearth useful info which they can use to preempt the departure of such employees from an organization. Therefore, if you are an HR who is looking for an effective way of increasing employee retention, the stay interview is gold. It is simple, effective and costs almost nothing to stage.

https://www.crimcheck.com/news/the-stay-interview-a-perfect-way-to-increase-employee-retention?utm_campaign=Blog&utm_content=18633572&utm_medium=social&utm_source=facebook

The Latest Regarding Ubers Independent Contractor Status

Judge Questions Uber’s “Happy Camper” Tactic In Opposing Class Action Status

Point. Counterpoint.

posted on Aug. 7, 2015, at 3:59 p.m.

Johana Bhuiyan

BuzzFeed News Reporter

← SLIDE →

Getty/Bloomberg

Uber CEO Travis Kalanick Getty/Bloomberg

Uber's legal battle to keep its drivers classified as independent contractors rather than employees got off to an inauspicious start this week when a San Francisco federal judge challenged some key evidence Uber submitted as part of its opposition to the case.

During a Thursday hearing, Judge Edward Chen heard arguments about whether to allow a lawsuit challenging Uber's designation of its drivers as independent contractors to proceed as a statewide class action. And he had some particularly tough questions for Uber, which has been opposing the case with declarations from 400 drivers who say they're happy with their independent contractor status and don't want to be employees. Specifically, Chen questioned how Uber can insist that the varying work arrangements of the 160,000 drivers on its platform make it impossible to classify them as a single class, while simultaneously claiming that 400 drivers that provided it with pro-independent-contractor declarations definitively represent all Uber drivers.

"You have 400 declarants -- that sounds impressive," Chen said. "Except when you measure that against 160,000 class members. That measures out to 0.25 percent -- not even that. [...] You cannot allow a group of 'happy campers' to control the class. You're always going to get some people who don't agree with it."

Uber, for its part, maintains that 400 declarants should be more than enough to knock the wind out of a complaint brought by a handful of drivers. "Plaintiffs' attempt to certify a sweeping class action in this case must be rejected," Ted Boutrous, the company's attorney, said in a statement. "... These three plaintiffs do not and cannot represent the interests of the thousands of other drivers who value the complete flexibility and autonomy they enjoy as independent contractors."

Chen also took Uber to task for the methods it used to gather these "happy camper" declarations. According to the San Francisco Chronicle, he questioned why Uber told drivers they would lose their flexibility if they were to become employees, when the terms of their employment and the case have yet to be decided.

Shannon Liss-Riordan, attorney for the plaintiffs, said she also questions the validity of the statements made by the drivers. "I question how many of those drivers really knew what they were saying," she told BuzzFeed News, noting that six of the 400 drivers from which Uber obtained declarations subsequently retracted them, claiming the company misled them about the differences between employees and contractors. Liss-Riordan said another 50 drivers have contacted her to say they either did not understand what was at stake or were too afraid of the consequences of declining to submit declarations.

She also took issue with Uber's argument that her clients' case is a challenge to flexible work schedules. "That doesn't really make sense," she told BuzzFeed News. "If Uber drivers are declared employees, they will be employees within the existing system. So if we win the case they can just continue in that system. ... Plenty of employers [are] flexible. I find it misleading for Uber to tell the world drivers shouldn't be declared employees because they like the flexibility. The lawsuit is not challenging that."

Uber disagrees. "Eighty seven percent of drivers say the main reason to use Uber is because they love being their own boss," an Uber spokesperson said in a statement. "As employees, drivers would drive set shifts, earn a fixed hourly wage, and lose the ability to drive using other ridesharing apps as well as the personal flexibility they most value. The reality is that drivers use Uber on their own terms: they control their use of the app. It's why there's no typical driver--the key question in this case. And why no three people can ever represent the interests of so many different drivers."

Whatever decision Judge Chen comes to, the actual hearing of the facts of the case, which will be heard in front of a jury, is still far out, as both sides are likely to appeal any ruling not in their favor. The next hearing is currently scheduled for Nov. 19, though Chen could issue a ruling before then.

This case is just one in a series questioning Uber's labor model. The company is in the midst of appealing two rulings that deemed two individual Uber drivers employees, not independent contractors — one in San Francisco and one in Florida.

Related:

California Labor Commission Rules San Francisco-Based Uber Driver Is An Employee

buzzfeed.com

What California's Uber Employment Ruling Actually Means

buzzfeed.com

Survey: 63% Of On-Demand Workers Consider Themselves Independent Contractors

buzzfeed.com

Uber Fights Back Against Class Action Lawsuit

buzzfeed.com

Motivated Employees Begin with Motivated Leaders

https://youtu.be/xDVoIVX1pAc

Reason to Grant Opportunity

Every saint has a past. Every sinner has a future.-Warren Buffett-

Inland Empire SHRM Conference

This message contains graphics. If you do not see the graphics, click here to view.

SHRM
CHAPTERS
  July 2, 2015    
   
Inland Empire SHRM
Inland Empire SHRM will offer a full-day HR professionals conference. Our 2015 conference, “Navigating the HR Puzzle” will be held on November 19, 2015, from 7:30 am to 4:00 pm at the Victoria Gardens Cultural Center in Rancho Cucamonga. Our topics will include:

The Map to Recent Developments in Labor & Employment—What impact will new developments have on employers? Our legal update will review important and sometimes unexpected implications of recent employment case law and legislation to include survival tips for 2016.

Piecing Together Defensible Discipline & Documentation—Understand the rights and responsibilities of an employer in the process of managing employees during discipline and proper documentation. Learn useful tips for managing and documenting your employees.

Navigating the New Paid Sick Leave Rules—California new paid sick leave law administration takes effect July 1, 2015 requiring employers to provide employees with at least three days of paid sick leave each year. Ensure that your organization is meeting the minimum compliance standard of the new law. We will provide a detailed analysis of the paid sick leave law and provide answers to some of the more difficult questions regarding implementation and compliance.

Bullying and Violence: How those Pieces Don't Fit in the Workplace—As awareness has steadily increased, workplace bullying or violence is now perceived as a greater risk and hazard for many workers. Employers can be held liable for the willful misconduct of their employees. Even if the employees' actions occur outside the scope or place of employment. What responsibilities do employers have to create a safe working environment and what actions are necessary to reduce risk and liability.

Piecing the Borders of the HR Framework—Looking to piece together the borders of your company's HR department? Our top 10 list will offer those troublesome areas that you should audit within your organization. We will address various compliance areas, such as job descriptions and company policies & procedures, all with an eye toward limiting liability.

Navigating Recent NLRB Actions—Employers can expect the NLRB to continue moving aggressively in their efforts to protect and expand what the Board terms "employee and union rights." Our session will offer employers guidance and preparation techniques to what continues to be the new era in employee rights at both union and non-union employers.

Register by October 16 to reserve your seat at the early-bird rate of $175 for member and $250 for non-members. Register online at www.ieshrm.org.

Don’t forget!  As a SHRM member* you can easily access popular benefits and resources such as:

Hurricane preparedness resources with Express Requests service
New sample HR policies for those with employees in California
Federal and State compliance resource
Ask an Advisor service for your specific HR challenges and questions
Sample job descriptions
Discounts on SHRM conferences & seminars, SHRM Learning System for SHRM-SCP and SHRM-CP preparation, SHRMStore products, and much more!
Learn more at shrm.org/memberkit

*SHRM national membership is separate from local chapter membership

Founded in 1948, the Society for Human Resource Management (SHRM) is the world's largest HR membership organization devoted to human resource management. Representing more than 275,000 members in over 160 countries, the Society is the leading provider of resources to serve the needs of HR professionals and advance the professional practice of human resource management. SHRM has more than 575 affiliated chapters within the United States and subsidiary offices in China, India and United Arab Emirates. Visit us at shrm.org.

SHRM provides content as a service to its readers and members, but cannot guarantee its accuracy or suitability for a particular purpose. Disclaimer

This email may contain advertisements.
Society for Human Resource Management | 1800 Duke Street, Alexandria, Virginia 22314-3499 USA
Email Us | 800.283.7476 (US Only) | +1.703.548.3440 (International) | shrm.org
Unsubscribe or Change Email Preferences | Privacy Policy
© 2015 SHRM. All rights reserved.