Presented by
Tony Fiore
NAVIGATING
Global HR Culture
The Laws, Trends + Politics
Affecting Culture in the Workplace
Global business
issues affect your
company’s HR culture
Employment Laws
Elections
Trends
Compliance vs. Attractive
Workplace
HR culture is a set of
shared attitudes, values,
goals + practices that
characterize an institution
or organization
What is your
HR culture?
Do current +
prospective
employees
believe your
company HR
culture?
Employment
Laws of the
Country
APPLICATION
of U.S. Laws
General employment framework
as a U.S. company doing
business in a foreign country
Expansions of extraterritorial reach of U.S.
employment laws in foreign countries
U.S. companies required to comply with
U.S. employment laws in foreign
countries in the employment of U.S.
nationals
EMPOYMENT Laws
Minimum Wage Payroll Costs
Social Costs Vacation
Workforce Education Employment
Contracts
Employment
Population Unemployment Rate
Doing Business
Abroad
Political + Legislative
Activity
Convention on the
Elimination of All Forms
of Discrimination
Against Women
Discrimination is any unfair
treatment or arbitrary
distinction based on a
person’s race, sex, religion,
nationality, ethnic origin,
sexual orientation,
disability, age, language,
social origin or other status
Sexual harassment is any
unwelcome sexual advance,
request for sexual favor, verbal
or physical conduct or gesture
of a sexual nature, or any other
behavior of a sexual nature that
might reasonably be expected
or be perceived to cause
offense or humiliation to
another, when such conduct
interferes with work, is made a
condition of employment or
creates an intimidating, hostile
or offensive work environment
What’s
capturing the
headlines?
Who merits protection has not
changed
The laws have not changed
The reasonable person
standard has not changed
Degrees or types of
harassment have not changed
The Severe or Pervasive
Standard has not changed
Number of IncidentsFew More
Severe: of a great degree, hardship or
discomfort
Pervasive: existing in or
spreading through every
part of something
Quid Pro Quo
Submission to sexual
advances or favors, or
when other conduct is
made a term or condition
of employment
Hostile Work
Environment
Severe or pervasive
conduct of a sexual
nature that creates an
intimidating, hostile or
offensive environment
Gender
Stereotyping
Behavior that treats
individuals based upon
stereotypical notions of
how persons of that
gender should act
Unwelcome means
the employee did
not solicit, incite or
desire the conduct
or regards it as
offensive
It is the perception
+ reaction of the
victim that matters
What size policy fits?
No Gossip Policy
Non-Fraternization
Supervisor-
Subordinate
Anti-Harassment
Civility Codes
Zero Tolerance
Written +
understandable
Easily accessible
Regularly
communicated
Define what it is
Outline avenues to
complain
Cover all protected
classes
Consider social
media
Applied uniformly
How do we change
the culture?
The culture change
+ support has to be top-down1
There have to be safe, multiple
outlets for filing complaints2
Tap into the women’s based
groups at the company3
Using an employee app, kendr connects
employees with their employers,
promoting secure, discreet and
anonymous workplace communication
Business Case
Doing good doesn’t
take laws mandating
such action
CBS’s overhauled
board features
women who are
experts in M&A
Your Take-Aways
Be practical about people
Practice real diversity
Handle every complaint
expeditiously, investigate +
review with an independent
panel
Be consistent
You are the HR professional!
Cultural respect, sensitivity
in advertising
Who hired the employee
that was disrespectful
Did HR adequately
prepare/train employees?
Language
+ Cultural
Barriers
Lost in
TRANSLATION
WORLDWIDE
Telecommunications Trends
84%
16%
SALES
Total worldwide phone
subscribers: 84% of population
Workers in many countries are
using social media and web
portals to apply for jobs
Creating a workplace culture
of respect, civility + diversity
is a journey not a destination
Hofstede Cultural
Dimensions Model
Reading
Suggestion
Adapting socially
Demonstrating creativity
TRAITS
of Successful Cross-
Cultural Leaders
Possessing an even disposition
Respecting beliefs
Instilling trust, navigating
ambiguity
Brad Gosche
GFT Lead Instructor
614-229-4599
bgosche@columbusworldaffairs.org
Patrick Terrien
President + CEO
614-229-4599
pterrien@columbusworldaffairs.org
Unpaid Leave
Paid Time Off
State Paid Sick Leave Laws
Healthy Families Act
Pres. Obama’s EO
(Federal Contractors)
Family + Medical
Insurance Leave Act
Tax Credit Approach
SHRM’s
APPROACH
Workplace
Flexibility
Paid Leave under HR 4219
Flexible Work
Arrangements
under HR 4219
Compressed work schedule
Biweekly work program
Telecommuting
Job sharing
Flexible scheduling
Predictable scheduling
26 consecutive weeks
paid – 16 additional
unpaid maternity
leave
24/7 access to
trained labor and
delivery nurse
hotline, onsite
lactation rooms, etc.
Extraterritorial
Reach of U.S.
Laws
U.S. Department of
Justice prosecution
of FCPA cases
increased 400%
from 2000 to 2008
Recent FCPA
Allegations
Success or failure of a
business deal
Stock price + value of
ESOPs
Law in the foreign country
to discipline or terminate?
What effect did the
mistake have on:
Reparable or irreparable
harm to the company?
$1.6 billion in fines,
penalties and
disgorgement of
profits
Multiple violations for
payments to gain
contracts, record
keeping violations in 5
countries
More than a dozen
instances transactions
kept off Oracle India’s
books
Remedial measures
taken including
terminating
relationship with
distributor
Several allegations of
payments to help
rapid growth in
Mexico
Stock price dropped
5% upon allegations,
Walmart de Mexico
fell more than 12%
Best Practices to Minimize
Compliance Issues
An ounce of prevention could be worth a
pound of cure
Work with domestic counsel in U.S. to
quarterback projects with local counsel
HR = First Line
of Defense
Conducting criminal
and credit background
checks to determine
ethical business history
Training programs to
prevent unlawful
bribery from happening
in foreign countries
Incentive programs
penalizing employees/
contractors that do not
violate the FCPA
Reporting mechanism
for alleged violations
and investigation when
allegation reported
Preserving a Drug-
Free Workplace
Opioid Overdose
DEATH RATE
In 2014, the Supreme Court of
Canada held that the
implementation of random alcohol
testing for employees in safety-
sensitive positions was an invasion
of privacy and an invalid exercise
of management rights
Drug
Testing
Generally prohibited Strictly Limited Permitted
Poland Chile UK (pre-employ)
Czech Republic Columbia
France (pre-employ) South Africa
Drug +
Alcohol
Testing in
Foreign
Countries
Adopt policies that emphasize it is
illegal to work under the influence or
consume drugs at the workplace +
consequences for not obeying policies1
Work with a reputable drug testing
company that administers random
testing and complies with all state +
federal regulations2
Watch for law changes at the federal
and state level on medical marijuana
3
Political,
Legislative +
Demographic
Considerations
This is not the answer
All 16 U.S.
House Seats
99 Ohio
House Seats
17 Ohio
Senate Seats
2 Supreme
Court Seats
Ballot
Issues
All
Statewide
Offices
1 U.S.
Senate Seat
Get out your
smart phone –
I know you
have one
For Better or Worse
Changes in leadership at local,
state and national levels affect HR
policies, foreign country
experience is no different
HR Preparedness
Be ready to amend workplace policies
+ practices to adjust to the ever-
changing legal landscape
Courts in foreign countries have
unique interpretations
New method for calculating
holiday pay
Changes timeframe when
employer must pay unpaid
vacation
Limits time an employee may
make a wage complaint
Amendments to
Canada’s Labour
Code - Jobs +
Growth Act 2012
Market Penetration
Mexico City is the second-largest
urban agglomeration in the
Western Hemisphere, after Sao
Paulo (Brazil), but before New
York-Newark (U.S.)
Why
Mexico?
Clarifies season worker
employment, paternity leave,
prevents discrimination
Requires access to employees
with disabilities (50+ employees)
Limits payment of back wages
for unlawful termination
Major Reforms
to Federal
Labor Law
October 2018
Brazil General
Elections
Total labor changes represent
between 35-37.4% of payrollEmployment
in Brazil Paid annual leave; 13th salary -
30 days/12 month period
Employer paid social security
Income tax: 0-27.5% progressive
tax levied on monthly incomeSocial Costs
Possible accident insurance
contributions
Social
COSTS
Federal Taxes v. Expenditures
47%
34%
9%
9%
1%
Individual Income Tax
Payroll Taxes
Corporate Income Tax
Customs Duties and Excise Taxes
Other
Federal Expenditures
Social Security
24%
Supplimental
Security
Income
2%
Civilian Federal
Retirement
3%
Medicare
15%
Medicaid
10%
ACC Subsidies
1%
National Security
15%
Veterans
5%
Interest
6%
Refundable credits
2%
Transporation
2%
Education
2%
Food Stamps
2%
Justice
1%
Housing Assistance
1%
Foreign Aid & Int'l Affairs
1%
Other
8%
What about
other country
retirement
systems?
How will you
manage your
global
workforce?
ow to Get Started
xtraterritorial Reach of U.S. Laws
mployment Law of the Country
anguages + Cultural Barriers
egal Team At Home + Abroad
olitical + Legislative Considerations
H
E
E
L
L
P
Save the
DATE
May 15, 2019
2019 Ohio SHRM
Employment Law +
Legislative Conference
2018 Keynote Speaker:
Susan Harthill
Deputy Solicitor for National Operations
U.S. Department of Labor
Tony Fiore
Of Counsel
Kegler Brown Hill + Ritter
afiore@keglerbrown.com
keglerbrown.com/fiore
614.462.5428
@TonyFioreEsq
Director, Government Affairs
Ohio State Council of SHRM

Navigating Global HR Culture

  • 1.
    Presented by Tony Fiore NAVIGATING GlobalHR Culture The Laws, Trends + Politics Affecting Culture in the Workplace
  • 2.
    Global business issues affectyour company’s HR culture Employment Laws Elections Trends Compliance vs. Attractive Workplace
  • 3.
    HR culture isa set of shared attitudes, values, goals + practices that characterize an institution or organization
  • 4.
  • 5.
  • 6.
  • 8.
    APPLICATION of U.S. Laws Generalemployment framework as a U.S. company doing business in a foreign country Expansions of extraterritorial reach of U.S. employment laws in foreign countries U.S. companies required to comply with U.S. employment laws in foreign countries in the employment of U.S. nationals
  • 9.
    EMPOYMENT Laws Minimum WagePayroll Costs Social Costs Vacation Workforce Education Employment Contracts Employment Population Unemployment Rate Doing Business Abroad Political + Legislative Activity
  • 11.
    Convention on the Eliminationof All Forms of Discrimination Against Women
  • 12.
    Discrimination is anyunfair treatment or arbitrary distinction based on a person’s race, sex, religion, nationality, ethnic origin, sexual orientation, disability, age, language, social origin or other status
  • 13.
    Sexual harassment isany unwelcome sexual advance, request for sexual favor, verbal or physical conduct or gesture of a sexual nature, or any other behavior of a sexual nature that might reasonably be expected or be perceived to cause offense or humiliation to another, when such conduct interferes with work, is made a condition of employment or creates an intimidating, hostile or offensive work environment
  • 14.
  • 17.
    Who merits protectionhas not changed The laws have not changed The reasonable person standard has not changed Degrees or types of harassment have not changed
  • 18.
    The Severe orPervasive Standard has not changed Number of IncidentsFew More Severe: of a great degree, hardship or discomfort Pervasive: existing in or spreading through every part of something
  • 19.
    Quid Pro Quo Submissionto sexual advances or favors, or when other conduct is made a term or condition of employment Hostile Work Environment Severe or pervasive conduct of a sexual nature that creates an intimidating, hostile or offensive environment Gender Stereotyping Behavior that treats individuals based upon stereotypical notions of how persons of that gender should act
  • 20.
    Unwelcome means the employeedid not solicit, incite or desire the conduct or regards it as offensive It is the perception + reaction of the victim that matters
  • 21.
    What size policyfits? No Gossip Policy Non-Fraternization Supervisor- Subordinate Anti-Harassment Civility Codes Zero Tolerance Written + understandable Easily accessible Regularly communicated Define what it is Outline avenues to complain Cover all protected classes Consider social media Applied uniformly
  • 23.
    How do wechange the culture?
  • 24.
    The culture change +support has to be top-down1 There have to be safe, multiple outlets for filing complaints2 Tap into the women’s based groups at the company3
  • 25.
    Using an employeeapp, kendr connects employees with their employers, promoting secure, discreet and anonymous workplace communication
  • 26.
  • 28.
    Doing good doesn’t takelaws mandating such action CBS’s overhauled board features women who are experts in M&A
  • 29.
    Your Take-Aways Be practicalabout people Practice real diversity Handle every complaint expeditiously, investigate + review with an independent panel Be consistent You are the HR professional!
  • 30.
    Cultural respect, sensitivity inadvertising Who hired the employee that was disrespectful Did HR adequately prepare/train employees? Language + Cultural Barriers
  • 31.
  • 32.
    WORLDWIDE Telecommunications Trends 84% 16% SALES Total worldwidephone subscribers: 84% of population Workers in many countries are using social media and web portals to apply for jobs
  • 35.
    Creating a workplaceculture of respect, civility + diversity is a journey not a destination
  • 36.
  • 37.
    Adapting socially Demonstrating creativity TRAITS ofSuccessful Cross- Cultural Leaders Possessing an even disposition Respecting beliefs Instilling trust, navigating ambiguity
  • 38.
    Brad Gosche GFT LeadInstructor 614-229-4599 bgosche@columbusworldaffairs.org Patrick Terrien President + CEO 614-229-4599 pterrien@columbusworldaffairs.org
  • 46.
    Unpaid Leave Paid TimeOff State Paid Sick Leave Laws Healthy Families Act Pres. Obama’s EO (Federal Contractors) Family + Medical Insurance Leave Act Tax Credit Approach
  • 47.
  • 48.
  • 49.
    Flexible Work Arrangements under HR4219 Compressed work schedule Biweekly work program Telecommuting Job sharing Flexible scheduling Predictable scheduling
  • 53.
    26 consecutive weeks paid– 16 additional unpaid maternity leave 24/7 access to trained labor and delivery nurse hotline, onsite lactation rooms, etc.
  • 54.
  • 55.
    U.S. Department of Justiceprosecution of FCPA cases increased 400% from 2000 to 2008
  • 56.
  • 57.
    Success or failureof a business deal Stock price + value of ESOPs Law in the foreign country to discipline or terminate? What effect did the mistake have on: Reparable or irreparable harm to the company?
  • 58.
    $1.6 billion infines, penalties and disgorgement of profits Multiple violations for payments to gain contracts, record keeping violations in 5 countries
  • 59.
    More than adozen instances transactions kept off Oracle India’s books Remedial measures taken including terminating relationship with distributor
  • 60.
    Several allegations of paymentsto help rapid growth in Mexico Stock price dropped 5% upon allegations, Walmart de Mexico fell more than 12%
  • 61.
    Best Practices toMinimize Compliance Issues An ounce of prevention could be worth a pound of cure Work with domestic counsel in U.S. to quarterback projects with local counsel
  • 62.
    HR = FirstLine of Defense Conducting criminal and credit background checks to determine ethical business history Training programs to prevent unlawful bribery from happening in foreign countries Incentive programs penalizing employees/ contractors that do not violate the FCPA Reporting mechanism for alleged violations and investigation when allegation reported
  • 63.
  • 64.
  • 65.
    In 2014, theSupreme Court of Canada held that the implementation of random alcohol testing for employees in safety- sensitive positions was an invasion of privacy and an invalid exercise of management rights Drug Testing
  • 66.
    Generally prohibited StrictlyLimited Permitted Poland Chile UK (pre-employ) Czech Republic Columbia France (pre-employ) South Africa Drug + Alcohol Testing in Foreign Countries
  • 67.
    Adopt policies thatemphasize it is illegal to work under the influence or consume drugs at the workplace + consequences for not obeying policies1 Work with a reputable drug testing company that administers random testing and complies with all state + federal regulations2 Watch for law changes at the federal and state level on medical marijuana 3
  • 69.
  • 70.
    This is notthe answer
  • 71.
    All 16 U.S. HouseSeats 99 Ohio House Seats 17 Ohio Senate Seats 2 Supreme Court Seats Ballot Issues All Statewide Offices 1 U.S. Senate Seat
  • 74.
    Get out your smartphone – I know you have one
  • 75.
    For Better orWorse Changes in leadership at local, state and national levels affect HR policies, foreign country experience is no different
  • 76.
    HR Preparedness Be readyto amend workplace policies + practices to adjust to the ever- changing legal landscape Courts in foreign countries have unique interpretations
  • 77.
    New method forcalculating holiday pay Changes timeframe when employer must pay unpaid vacation Limits time an employee may make a wage complaint Amendments to Canada’s Labour Code - Jobs + Growth Act 2012
  • 79.
    Market Penetration Mexico Cityis the second-largest urban agglomeration in the Western Hemisphere, after Sao Paulo (Brazil), but before New York-Newark (U.S.) Why Mexico?
  • 80.
    Clarifies season worker employment,paternity leave, prevents discrimination Requires access to employees with disabilities (50+ employees) Limits payment of back wages for unlawful termination Major Reforms to Federal Labor Law
  • 81.
  • 82.
    Total labor changesrepresent between 35-37.4% of payrollEmployment in Brazil Paid annual leave; 13th salary - 30 days/12 month period
  • 83.
    Employer paid socialsecurity Income tax: 0-27.5% progressive tax levied on monthly incomeSocial Costs Possible accident insurance contributions
  • 84.
  • 85.
    Federal Taxes v.Expenditures 47% 34% 9% 9% 1% Individual Income Tax Payroll Taxes Corporate Income Tax Customs Duties and Excise Taxes Other
  • 86.
    Federal Expenditures Social Security 24% Supplimental Security Income 2% CivilianFederal Retirement 3% Medicare 15% Medicaid 10% ACC Subsidies 1% National Security 15% Veterans 5% Interest 6% Refundable credits 2% Transporation 2% Education 2% Food Stamps 2% Justice 1% Housing Assistance 1% Foreign Aid & Int'l Affairs 1% Other 8%
  • 88.
  • 91.
    How will you manageyour global workforce?
  • 92.
    ow to GetStarted xtraterritorial Reach of U.S. Laws mployment Law of the Country anguages + Cultural Barriers egal Team At Home + Abroad olitical + Legislative Considerations H E E L L P
  • 93.
    Save the DATE May 15,2019 2019 Ohio SHRM Employment Law + Legislative Conference 2018 Keynote Speaker: Susan Harthill Deputy Solicitor for National Operations U.S. Department of Labor
  • 94.
    Tony Fiore Of Counsel KeglerBrown Hill + Ritter afiore@keglerbrown.com keglerbrown.com/fiore 614.462.5428 @TonyFioreEsq Director, Government Affairs Ohio State Council of SHRM