Eugene Boot Camp


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Issues employers are facing in a down economy.

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  • Eugene Boot Camp

    1. 1. I Employ Therefore I Am Issues employers are facing in today’s economy.
    2. 2. “ When I grow up I want to become an employer”
    3. 3. Intro to Cardinal <ul><li>Professional Employer Organization </li></ul><ul><ul><li>HR Compliance/Workers Comp/Payroll Administration/Risk Management/Benefits </li></ul></ul><ul><li>Payroll Administration </li></ul><ul><li>HR Consulting/Training/Advising </li></ul><ul><li>Hiring </li></ul><ul><ul><li>Temporary/Contract/FT Recruitment </li></ul></ul>
    4. 4. Why the need for HR?
    5. 5. Exhibit A
    6. 6. Exhibit B
    7. 7. Exhibit C
    8. 8. The Real Reason Behind HR . . .
    9. 9. As a Result. . . <ul><li>Human Resource Management Is going through a fundamental change. </li></ul><ul><ul><li>Increase in regulations </li></ul></ul><ul><ul><li>Increase in exposure </li></ul></ul><ul><ul><li>Expertise required to manage </li></ul></ul><ul><ul><li>Demand for quality benefits </li></ul></ul>
    10. 10. Laws and Regulations <ul><li>According to the U.S. Small Business Administration (SBA): </li></ul><ul><ul><li>Between 1980 and 2000, the number of U.S. laws and regulations regarding employment policies and practices grew by about 60 percent. </li></ul></ul>
    11. 12. FREEBIE! HR Self Audit
    12. 13. Top 5 to Survive <ul><li>If hiring, now is the time to be thorough. </li></ul><ul><li>Classify your team correctly. </li></ul><ul><li>Protect yourself from claims. </li></ul><ul><li>COBRAs and ARRAs and House Bills oh my! </li></ul><ul><li>If terminating, now is the time to be careful. </li></ul>
    13. 14. 1. If hiring, now is the time to be thorough.
    14. 15. What does a bad hire cost? <ul><li>Cost of filling, firing, and refilling a position? </li></ul><ul><li>From 25% to 400% of the person’s salary! </li></ul>
    15. 16. Do your diligence! <ul><li>Interview Thoroughly </li></ul><ul><li>Do your checks: </li></ul><ul><ul><li>Criminal Background </li></ul></ul><ul><ul><li>References </li></ul></ul><ul><ul><li>License </li></ul></ul><ul><ul><li>Education </li></ul></ul><ul><ul><li>DMV Record </li></ul></ul><ul><ul><li>Drug Testing </li></ul></ul>
    16. 17. Why bother? <ul><li>In 2.6 million background checks: </li></ul><ul><ul><li>44% of applicants lied about work history </li></ul></ul><ul><ul><li>41% lied about their education </li></ul></ul><ul><ul><li>23% falsified credentials or licenses </li></ul></ul>
    17. 18. 2. Classify your team correctly Employee Misclassification Prevention Act
    18. 19. Misclassification <ul><li>In 2008 Congress considered bills that would have imposed substantial penalties ON EMPLOYERS that misclassify workers as independent contractors. </li></ul><ul><li>This proposal may see the light of day again. </li></ul><ul><li>According to the latest study by the IRS, 15 percent of employers have misclassified employees as independent contractors, (3.4 million) </li></ul>
    19. 20. Misclassification - Why Now? <ul><li>Costs the U.S. Treasury billions in lost revenue. </li></ul><ul><li>Misclassification violates the FLSA </li></ul><ul><li>But the real focus of the legislation's proponents has been the potential harm to employees who don't have access to the benefits and protections they're entitled to under the law. </li></ul>
    20. 21. Misclassification - Employers <ul><li>It lowers costs for businesses that engage in the practice. In turn, the businesses that follow the rules are put at a competitive disadvantage. </li></ul><ul><li>Enables employers to avoid meeting mandatory minimum wage and overtime requirements. </li></ul><ul><li>Employers that erroneously classify workers as independent contractors face substantial tax risks. </li></ul><ul><li>They're also exposed to significant liability if the misclassified workers should have been receiving overtime wages. </li></ul>
    21. 22. Misclassification Employees <ul><li>Independent contractors are not protected by workers' compensation and workplace discrimination laws and aren't entitled to unemployment insurance. </li></ul>
    22. 23. FREEBIE! Independent Contractor List
    23. 25. 3. Protect your business from claims.
    24. 26. Biggest number of Claims <ul><li>Wages </li></ul><ul><ul><li>Easy to prove and that is where the money is for the lawyers </li></ul></ul><ul><ul><li>Late Pay </li></ul></ul><ul><ul><li>OT </li></ul></ul><ul><ul><li>Class Actions </li></ul></ul><ul><li>Workers Comp/Injury </li></ul><ul><li>Retaliation </li></ul>
    25. 27. Wage and Hour Claims <ul><li>Jury’s love wage claims! </li></ul><ul><ul><li>Usually not much grey area </li></ul></ul><ul><ul><li>Easy to understand compared to other claims </li></ul></ul><ul><ul><li>No bias comes in to play </li></ul></ul><ul><ul><li>Strong belief in fair pay for time worked </li></ul></ul><ul><li>Jury’s are mostly made up of employees not employers! </li></ul><ul><li>Employers mess these up all the time! </li></ul><ul><ul><li>Mistakes are easy to make </li></ul></ul><ul><ul><li>Principles. . . </li></ul></ul>
    26. 28. An old favorite of ours. . . <ul><li>It’s not about the money! It’s the principle!! </li></ul>
    27. 29. Now more than ever <ul><li>IT IS ABOUT THE MONEY </li></ul><ul><li>$$$$ </li></ul>
    28. 30. Client Case Study <ul><li>Non exempt employee paid salary </li></ul><ul><li>Fight over one paid holiday </li></ul><ul><li>Employee is fired </li></ul><ul><li>Employee had documented all her time </li></ul><ul><li>Never received her breaks </li></ul><ul><li>Employer – no detailed records </li></ul>
    29. 31. Case Study Continued <ul><li>Employer paid out </li></ul><ul><ul><li>$6,000 in owed wages to employee </li></ul></ul><ul><ul><li>$4,000 in lawyer fees </li></ul></ul><ul><li>Initial paid holiday would have cost $150 </li></ul>
    30. 32. What can you do? <ul><li>Enforce break policy in employee handbooks </li></ul><ul><li>Put policy on timecard </li></ul><ul><li>Initial box on timecard </li></ul>
    31. 33. Workers Comp Claims <ul><li>May file a claim to keep a job </li></ul><ul><ul><li>Document now! </li></ul></ul><ul><ul><li>Aggressive Claims Mgmt </li></ul></ul><ul><ul><li>Cant always leave up to your carrier </li></ul></ul><ul><ul><li>Start with a solid safety program </li></ul></ul>
    32. 34. Safety Recommendations <ul><li>Determine whether a committee or meeting format is better for your workplace </li></ul><ul><li>Establish safety committee or meetings by the appropriate effective date </li></ul><ul><li>Determine best method to make minutes available to all employees </li></ul>
    33. 35. FREEBIE! Safety Meeting/Committee Books
    34. 37. Retaliation Claims <ul><li>Very important rule to remember - Once an employee files any kind of complaint it gives them a kind of protection. </li></ul>
    35. 38. Retaliation Example <ul><li>Burlington Northern Railroad </li></ul><ul><ul><li>Claim of sexual harassment </li></ul></ul><ul><ul><li>Investigation proves her wrong </li></ul></ul><ul><ul><li>The two employees can’t work together </li></ul></ul><ul><ul><li>Put her out laying track in N Dakota </li></ul></ul><ul><ul><ul><li>Same wage as office job </li></ul></ul></ul><ul><ul><li>She won big on retaliation </li></ul></ul>
    36. 39. What to do? <ul><li>What to do – </li></ul><ul><ul><li>Follow a progressive discipline </li></ul></ul><ul><ul><li>Document, Document, Document </li></ul></ul><ul><ul><li>Be very, very careful if employee has filed a complaint. </li></ul></ul>
    37. 40. FREEBIE! Compliance Postings
    38. 42. 4. COBRAs and ARRAs and House Bills oh my! Know where your business fits in
    39. 43. American Recovery and Reinvestment Act (ARRA) <ul><li>Pays up to 65 percent of premiums for workers who lost their jobs and choose to stay on their employer’s health plan. </li></ul><ul><li>For employers with 20 or more employees, the right to continue group coverage after you lose your job is provided by COBRA. </li></ul><ul><li>19 and under: Oregon’s “state continuation” law provides similar rights. </li></ul><ul><li>Individuals whose jobs ended between Sept. 1, 2008 and Dec. 31, 2009 may qualify for the subsidy. Consumers have 31 days from the date they are notified to decide to continue group coverage. </li></ul>
    40. 44. ARRA Changes - COBRA <ul><li>Employers must pay 65% of eligible employee premium. </li></ul><ul><li>Refunded as a credit on payroll tax filings. </li></ul><ul><li>Available to former employees for nine months after they lose their job. </li></ul><ul><li>After 9 months, employees can continue at own cost. </li></ul>
    41. 45. State Continuation HB 2433 <ul><li>Extends the amount of time former employees can continue coverage through the state continuation program from the original six months to nine months, the maximum amount of time allowed under ARRA. </li></ul><ul><li>Gives Oregonians who lost their job before the federal stimulus package was announced, and who chose not to continue their employer plans at that time, a second opportunity to decide to continue coverage. </li></ul><ul><li>Requires insurers to notify all employer groups and individuals whose jobs ended between Sept. 1, 2008 and Dec. 31, 2009 of the possibility that they qualify for the subsidy. Consumers have 31 days from the date they are notified to decide to continue group coverage. </li></ul>
    42. 46. HB 2433 Continued <ul><li>We recommend that employers contact their group health insurer immediately. </li></ul><ul><li>Employers and insurers should collaborate as necessary to be sure all affected employees receive a notice in the mail about their potential eligibility for the subsidy and instructions on how to sign up by June 1, 2009. </li></ul>
    43. 47. 5. If terminating, now is the time to be careful.
    44. 48. Terminations <ul><li>Eliminate unnecessary positions </li></ul><ul><li>Eliminate your “C” players </li></ul><ul><ul><li>Move them if possible </li></ul></ul><ul><ul><li>Replace them if needed </li></ul></ul><ul><ul><ul><li>Deep applicant pool to replace them </li></ul></ul></ul><ul><li>Examine staff costs </li></ul><ul><ul><li>Reduce hours </li></ul></ul><ul><ul><li>Reduce unused benefits </li></ul></ul><ul><ul><li>Reduce pay </li></ul></ul>
    45. 49. Do it Carefully <ul><li>Follow your policies </li></ul><ul><li>Be Consistent </li></ul><ul><li>Know the Facts </li></ul><ul><li>Analyze any Risk </li></ul><ul><li>Document </li></ul><ul><li>Maintain Confidentiality </li></ul><ul><li>Put some planning into it (where, when, who) </li></ul><ul><li>Tell the truth (don’t call it a layoff if it isn’t) </li></ul>
    46. 50. General Pay Deadlines Tip <ul><li>Employee Terminated – By end of next business day. </li></ul><ul><li>Employee Quits with at least 48 hours notice – Due on final day worked, unless on the weekend or holiday, then next business day. </li></ul><ul><li>Quit with less then 48 hours notice – Due within 5 business days or next regular pay day, whichever comes first. </li></ul>
    47. 51. FREEBIE! Employee Terminations List
    48. 52. Thank you for listening. I hope this was informative Derek Jensen Director of Business Development Cardinal Services, Inc 726.8060 x. 2210 [email_address]