10 Top HR Practices For 2012

SPECIAL REPORT

Top 10 Best
Practices in
HR Management
For 2012

30610860

SPECIAL REPORT

Top 10 Best
Practices in
HR Management
For 2012

30610800

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Top 10 Best Practices in HR Management for 2012

Table of Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
#1 Healthcare in 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
#2 FMLA Paid Leave Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
Feds Encouraging States to Legislate Paid Leave . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
Paid Sick Leave Benefits: What the Numbers Show . . . . . . . . . . . . . . . . . . . . . . . . . . .6
#3 Ethics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
The Dodd-Frank Wall Street Reform and Consumer Protection Act
(the Dodd-Frank Act) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
Best Practice: Employee Communities Drive Engagement at Top Company . . . . . . . . .10
#4 Social Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
Blogging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
FTC Guidelines on Testimonials and Endorsements . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
Best Practice: 5 Reasons to Focus Your Social Media Recruiting on LinkedIn . . . . . .15
Best Practice: Using Social Media to Communicate Sustainability Achievements . . . . .17
#5 Environmental Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
5 Reasons Why You Need a Green Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
Best Practice: Energy-Saving Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18
Best Practice: Do You Have a Recycling Policy? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
#6 Workplace Wellness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
What Is Wellness? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
Legal Issues Related to Workplace Wellness Programs . . . . . . . . . . . . . . . . . . . . . . . . .22
Best Practice: Suggestions for Wellness Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
Best Practice: 13 Inexpensive Tips for Encouraging
Wellness Program Participation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
#7 Classifying Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
Topic: Amendments to the Fair Labor Standards Act (FLSA)
Recordkeeping Regulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27
IRS Voluntary Worker Classification Settlement Program . . . . . . . . . . . . . . . . . . . . .27
Wage and Hour Investigations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28
Best Practice: How to Prepare for an Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
#8 Retirement of Baby Boomers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31
Teamwork, Participation Are Generally Important to Baby Boomers . . . . . . . . . . . .31

© BLR®—Business & Legal Resources 30610800

Healthcare, Technology Skills Among Baby Boomers’ Concerns . . . . . . . . . . . . . . .32
Succession Planning: A Strategy for Meeting Talent Needs . . . . . . . . . . . . . . . . . . . .32
Best Practice: Retirement Policies to Protect Your Organization and
Prepare Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35
#9 Identity Theft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
FACTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36
Red Flags Rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37
Best Practice: Protecting Employees from Identity Theft . . . . . . . . . . . . . . . . . . . . . .38
Breach of Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
Best Practice: Preventing Security Breaches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39
Employers’ Private Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40
#10 Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
Benefits of Good Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
Causes of Ineffective Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
Encouraging Employees to Communicate Better . . . . . . . . . . . . . . . . . . . . . . . . . . .42
Tools for Better Communicating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
Best Practice: Avoid Scheduling Meetings on Friday Afternoons or
Monday Mornings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45

Top 10 Best Practices in HR Management for 2012

Introduction

The role of Human Resources is changing as fast as technology and the global
marketplace. Historically, the HR Department was viewed as administrative over-
head. HR processed payroll, handled benefits administration, kept personnel files
and other records, managed the hiring process, and provided other administrative
support to the business. Those times have changed.
The positive result of these changes is that HR professionals have the opportunity
to play a more strategic role in the business. The challenge for HR managers is to
keep up to date with the latest HR innovations—technological, legal, and other-
wise.
This special report discusses the top 10 best practices in HR management for
2012—in other words, how HR managers can anticipate and address some of the
most challenging HR issues this year. This report will give you the information you
need to know about these current HR challenges and how to most effectively man-
age them in your workplace.

#1 Healthcare in 2012

The enactment of the Patient Protection and Affordable Care Act (PPACA), as
amended by the Health Care and Education Reconciliation Act of 2010 (HCERA),
collectively referred to as the Affordable Care Act (ACA), launched an extended
period during which far-reaching changes to the American healthcare system will
take effect. These reforms are built on the current employer-based system and are
impacting every employer in the country.
Reform on this scale is multifaceted and continues to take effect in uneven incre-
ments between 2012 and 2018.. We’ll cover what has to be planned for in 2012,
2013, 2014, and 2018 as the pieces of the reform package come into play. Keep in
mind that the two biggest pieces of the reform process, the individual mandate
and employer play-or-pay, don’t take effect until 2014.

2012
Benefits Summary Requirement. By March 23, 2012, a summary of benefits and
coverage explanation that meets the national standards for providing a summary
of benefits and coverage must be provided to applicants at the time of application,
to the enrollee before the time of enrollment or reenrollment, and to a policy-
holder or certificate holder at the time of issuance of the policy or delivery of the
certificate. The U.S. Department of Health and Human Services (HHS), Internal
Revenue Service (IRS), and Department of Labor (DOL) have issued proposed
national standards for providing the summary of benefits and coverage explana-
tion. The agencies are soliciting comments on factors that may affect the feasibility
of implementation by that date.

© BLR®—Business & Legal Resources 30610800 1

Quality of Care Reporting. No later than March 23, 2012, requirements for use by
group health plans and health insurance issuers offering group or individual
health insurance coverage to report benefits and healthcare provider reimburse-
ment structures that improve health outcomes through the implementation of
activities are to be issued.
Examples of activities to be reported include quality reporting, effective case man-
agement, care coordination, chronic disease management, and medication and
care-compliance initiatives; activities to prevent hospital readmissions through a
comprehensive program for hospital discharge that includes patient-centered
education and counseling, comprehensive discharge planning, and post-discharge
reinforcement by an appropriate healthcare professional; activities to improve
patient safety and reduce medical errors through the appropriate use of best
clinical practices, evidence-based medicine, and health information technology
under the plan or coverage; and wellness and health promotion activities. Plans
and insurers must annually report whether the benefits under the plan or coverage
satisfy these elements.

2013
Health Insurance Administration Simplification. Rules establishing a single
set of operating rules for eligibility verification and claims status should have been
adopted by July 1, 2011, and take effect January 1, 2013. Rules for electronic funds
transfer and healthcare payment and remittance rules must be adopted by July 1,
2012, and take effect January 1, 2014. Rules for health claims or equivalent
encounter information, enrollment and disenrollment in a health plan, health plan
premium payments, and referral certification and authorization rules are to be
adopted by July 1, 2014, and take effect January 1, 2016. Health plans must docu-
ment compliance with these standards or face a penalty of no more than $1 per
covered life. The penalty takes effect April 1, 2014.
Medicare Tax. Effective January 1, 2013, the Medicare Part A (hospital insurance)
tax rate on wages goes up by 0.9 percent (from 1.45 percent to 2.3 percent) on
annual earnings over $200,000 for individual taxpayers and $250,000 for married
couples filing jointly. There is also a 3.8 percent Medicare tax assessment on invest-
ment income from interest, dividends, royalties, rents, gross income from a trade or
business, and net gain from disposition of property for individuals earning over
$200,000 and families earning over $250,000.
FSA Contribution Limit. Effective January 1, 2013, contributions to a Flexible
Spending Account (FSA) for medical expenses are limited to $2,500 per year
increased annually by the cost-of-living adjustment.
Elimination of Tax Deduction for Part D Subsidy Payment. Effective January
1, 2013, the tax deduction for employers that receive Medicare Part D retiree drug
subsidy payments is eliminated.
Requirement on Employers to Inform Employees of Coverage Options.
Employers are to provide to each employee at the time of hiring (or with respect
to current employees, not later than March 1, 2013), written notice informing the
employee of the existence of an Exchange, including a description of the services
provided by such an Exchange, and how the employee may contact the Exchange
to request assistance; if the employer plan’s share of the total allowed costs of

2 Top 10 Best Practices in HR Management for 2012

benefits provided under the plan is less than 60 percent of such costs, the
employee may be eligible for a premium tax credit under Section 36B of the Inter-
nal Revenue Code of 1986 and a cost-sharing reduction under Section 1402 of the
PPACA if the employee purchases a qualified health plan through the Exchange;
and if the employee purchases a qualified health plan through the Exchange, the
employee will lose the employer contribution (if any) to any health benefits plan
offered by the employer and that all or a portion of such contribution may be
excludable from income for federal income tax purposes.

2014
Individual Mandate. United States citizens and legal residents will be required to
have qualifying health coverage beginning in 2014. Those who do not have cover-
age will be required to pay a yearly financial penalty of the greater of $695 per
person (up to a maximum of $2,085 per family) or 2.5 percent of household
income, phased in from 2014–2016. Exceptions will be given for financial hardship
and religious objections.
Employer Play or Pay—The Employer Mandate. Effective in 2014, employers
with more than 50 employees that do not offer coverage, and have at least one full-
time employee who receives a premium assistance tax credit, must pay a fee of
$2,000 per full-time employee. The first 30 employees are not counted for assessing
the fee. Employers with more than 50 employees that offer coverage but have at
least one full-time employee receiving a premium tax credit will pay the lesser of
$3,000 for each employee receiving a premium credit or $2,000 for each full-time
employee. Employers that offer coverage will be required to provide a voucher to
employees with incomes below 400 percent of the poverty level if their share of
the premium cost is between 8 percent and 9.8 percent of income to enable them
to enroll in a plan in an Exchange and will not be subject to the above penalty.
Large Employer Automatic Enrollment Requirement. Effective in 2014, large
employers with more than 200 full-time employees that offer coverage will be
required to automatically enroll employees in the employer’s lowest cost plan if
the employee does not sign up for employer coverage or does not opt out of cover-
age. Any automatic enrollment program must include adequate notice and the
opportunity for an employee to opt out of any coverage.
Insurance Exchanges for Individuals and Small Businesses. By 2014, state-
based American Health Benefit Exchanges and Small Business Health Options
Program (SHOP) Exchanges, administered by a governmental agency or nonprofit
organization, are to be operating so that individuals and small businesses with up
to 100 employees can purchase qualified coverage.
Guaranteed Issue, Renewability, and Rating Variation Requirements. Effec-
tive January 1, 2014, insurers will be required to guarantee issue and renewability
and allow rating variation based only on age (limited to 3-to-1 ratio), premium
rating area, family composition, and tobacco use (limited to 1.5- to-1 ratio) in the
individual and the small group market and the Exchanges.
Annual Limits. Effective for plan years beginning on or after January 1, 2014,
plans and insurers may no longer impose annual dollar limits on coverage.
Limit on Waiting Periods. Effective for plan years beginning on or after January
1, 2014, insurers and plans must limit any waiting periods for coverage to 90 days.


Wellness Incentives. Effective for plan years beginning on or after January 1,
2014, employers may offer employees rewards of up to 30 percent (increasing to
50 percent, if appropriate) of the cost of coverage for participating in a wellness
program and meeting certain health-related standards.
Preexisting Condition Exclusions. The application of preexisting condition
exclusions for plan years beginning on or after January 1, 2014, is prohibited.
Comprehensive Health Insurance Coverage. Effective for plan years beginning
on or after January 1, 2014, a health insurance issuer that offers health insurance
coverage in the individual or small group market must ensure that such coverage
includes the essential health benefits package that includes at least the following
general categories and the items and services covered within the categories:
N Ambulatory patient services
N Emergency services
N Hospitalization
N Maternity and newborn care
N Mental health and substance use disorder services, including behavioral
health treatment
N Prescription drugs
N Rehabilitative and habilitative services and devices
N Laboratory services
N Preventive and wellness services and chronic disease management
N Pediatric services, including oral and vision care
Limits on Cost Sharing and Deductibles. Effective for plan years beginning on
or after January 1, 2014, a group health plan may not provide any annual cost shar-
ing in excess of those that apply to Health Savings Accounts (HSAs).

2018
Excise Tax on Cadillac Plans. Effective January 1, 2018, an excise tax is imposed
on insurers of employer-sponsored health plans with total values that exceed
$10,200 for individual coverage and $27,500 for family coverage.

#2 FMLA Paid Leave Initiatives

Most employers struggle with managing leave of absence issues, understanding
Family and Medical Leave Act (FMLA) laws, and even knowing when a family
medical leave of absence is covered by state or federal law. As employers in Con-
necticut, California, New Jersey, and Washington state know, state and municipal
paid leave initiatives are now taking hold in many places.


Although paid family medical leave of absence laws have failed to pass at the fed-
eral level for many years, many state Legislatures have recently taken up the fight
by proposing laws to enable employees to take various types of paid leave. Accord-
ing to the National Council of State Legislators, at least 19 states had some form of
paid leave initiative on their legislative calendars at the beginning of 2011.
In California and New Jersey, employees are already entitled to paid benefits dur-
ing certain types of family leave. On October 1, 2012, Washington state’s paid family
leave law will go into effect. The state law grants employees up to 5 weeks of family
leave insurance benefits, with a maximum weekly benefit of $250 per week.
Some states and municipalities have chosen to require paid sick leave for their
employers. In June 2011, Connecticut became the first state in the nation to man-
date paid sick leave exclusively for service workers such as waiters, cashiers, and
hairstylists. Under the state paid sick leave law, service companies with 50 or more
workers in the state must provide service workers 1 hour of sick time for every
40 hours worked, up to a maximum of 40 hours per calendar year.
The District of Columbia’s Accrued Sick and Safe Leave Act of 2008 entitles
employees covered by the District Family and Medical Leave Act to paid sick and
“safe” leave for use under certain circumstances. The amount of paid sick leave
given to the employee depends on the size of the employer and may be used by
an employee for any of the following reasons:
N Physical or mental illness, injury, or medical condition of the employee;
N Obtaining professional medical diagnosis or care, or preventive medical care,
for the employee, provided that the employee makes a reasonable effort to
schedule such leave in a manner that does not unduly disrupt the operations
of the employer;
N Caring for a child, a parent, a spouse, domestic partner, or any other family
member who has a physical or mental illness, injury, or medical condition or
needs for diagnosis or care; or
N If the employee or the employee’s family member is a victim of stalking,
domestic violence, or sexual abuse, provided that the absence is directly
related to social or legal services pertaining to the stalking, domestic violence,
or sexual abuse.
Cities have also gotten into the act, requiring paid sick leave by local ordinance.
For example, in San Francisco employers are required to provide 1 hour of paid
sick leave to an employee for every 30 hours worked. Under the ordinance,
employees are allowed to accrue up to 40 hours of paid sick leave if they work for
a small employer (fewer than 10 employees). Employees of larger employers can
accrue up to 72 hours.
Effective September 1, 2012, the city of Seattle, Washington, will require that employ-
ees in the city accrue paid sick time. The amount of time accrued will depend on
the size of the employer, and permissible reasons for leave range from an absence
resulting from an employee’s or employee’s family member’s mental or physical ill-
ness, injury, or health condition; accommodating the employee’s need for medical
diagnosis, care, or treatment of a mental or physical illness, injury, or health condition;
or an employee’s need for preventive medical care. Also covered are situations
when the employee’s place of business or a child’s school or place of care has


been closed by order of a public official to limit exposure to an infectious agent,
biological toxin, or hazardous material, and for reasons related to domestic vio-
lence, sexual assault, or stalking.

Feds Encouraging States to Legislate Paid Leave
In order to entice the states to continue the move toward legislating paid leave for
employees, DOL is pitching in. The 2012 Fiscal Budget for DOL includes
$23,000,000 to fund the fed’s State Paid Leave Initiative, which will provide grants to
assist additional states to establish paid leave programs. Typically, the programs are
state-run insurance programs financed by employer and/or employee contribu-
tions, and the programs offer up to 6 weeks of benefits to workers for reasons cov-
ered under the federal FMLA who must take time off to care for a seriously ill child,
spouse, or parent, or bond with a newborn or recently adopted child.
Under this initiative, grants would be provided to assist additional states in plan-
ning and start-up activities relating to state family paid leave programs. These
funds will be provided to states for preimplementation planning grants to support
activities designed to position a state to enact legislation and prepare for imple-
mentation and implementation grants.
Planning activities will include designing a program, establishing protocol for legis-
lation to withhold taxable wages, defining family eligibility and benefits require-
ments, and articulating start-up activities. Funds may also be used for activities
such as research and analysis, coalition building; stakeholder consultation; devel-
opment of a financing model and benefit structure; and development of an out-
reach plan; and will culminate in a blueprint for implementation.

Paid Sick Leave Benefits: What the Numbers Show
In a recent report by the U.S. Bureau of Labor Statistics (BLS) examining paid sick
leave benefits, length of service had minimal impact on paid sick leave provisions,
but several other worker and company characteristics did affect the provisions.
(The report is available at www.bls.gov.) Additionally, BLS’s report reveals that
worker characteristics contributed to the differing employer costs associated with
providing paid sick leave benefits. The data contained in the report are from the
National Compensation Surveys on Employee Benefits in the United States and
Employer Costs for Employee Compensation.
Highlights of the report include:
N Private industry workers access to paid sick leave benefits varied by occupa-
tional group and ranged from 84 percent for management, professional, and
related occupations to 42 percent for service workers.
N 81 percent of employees earning wages in the highest 25 percent of the wage
distribution had access to paid sick leave, compared to only 33 percent for
employees in the lowest 25 percent.
N In private industry, employees received an average of 8 days of paid sick leave
after 1 year of service, with large establishments providing an average of
11 days and small establishments offering an average of 6 days.


N The cost for sick leave per employee hour worked in state and local govern-
ment was 81 cents compared to 23 cents in private industry.
N Higher paying occupations typically incur higher sick leave costs. For example,
the average employer cost for sick leave benefits in management, professional,
and related occupations was 53 cents per employee hour worked in private
industry; the cost for service occupations was just 8 cents per employee hour
worked.

#3 Ethics

Workplace ethics defines a standard of acceptable behavior on the job. It is a set of
rules by which to judge decisions and conduct in the workplace. Many corporate
leaders who fail to act ethically have been prosecuted and incarcerated, and the
U.S. Congress has legislated significant changes in financial reporting and other
laws to enforce ethical behavior. The Sarbanes-Oxley Act of 2002 (SOX) and the
Federal Sentencing Guidelines have placed strict legal requirements on covered
employers. The Dodd-Frank Wall Street Reform and Consumer Protection Act (the
Dodd-Frank Act) created additional whistleblower protections.
Making ethical choices on the job, even for the ethically minded, is not always easy.
There may be many reasons that drive people to cross the line and act unethically.
Here are a few examples:
N Conflicts of interest force employees to choose between self-interest and the
interests of co-workers, the department, or the organization. Sometimes the
choice is between the interests of a customer and the interests of the organiza-
tion, or between the community and the organization.
N It is sometimes hard to draw a line between personal and business relation-
ships. Employees forge friendships with co-workers, yet may have to make pro-
fessional choices that do not seem very friendly. For example, if a co-worker
does something wrong, an employee may have to report the situation. If a cus-
tomer with whom an employee has a good relationship tries to use the rela-
tionship in some unethical way, the employee is in a difficult situation.
N Massaging the truth, telling “little white lies,” and failing to tell the whole story
can all have an effect on the outcome of a situation.
N Confidential information is exactly that—confidential and privileged. Ethically,
employees cannot use any confidential business information for self-gain or
pass along such information to benefit friends or family, whether that informa-
tion is about the organization or its customers.
N Laws and regulations are another problem area. There are many confusing
laws. Even if an employee understands the law, he or she may not agree with it.
It can be tempting to cut corners or forget about the details.
N Pressure to succeed, pressure to get ahead, pressure to meet deadlines and
expectations, and pressure from co-workers, bosses, customers, or vendors to


engage in unethical activities or at least look the other way can drive people to
do things they would not normally do.
N Some people make unethical choices because they are not sure about what
really is the right thing to do. Ethical problems are often complicated, and the
proper choice may be far from obvious.
N Self interest, personal gain, ambition, and downright greed are at the bottom of
a lot of unethical activity in business. Also, there are those who simply never
learned or do not care about ethical values. Because such individuals have no
personal ethical values, they do not have any basis for understanding or apply-
ing ethical standards in business.
N Misguided loyalty can cause employees to lie because they think that in doing
so, they are being loyal to the organization or to their bosses.

The Dodd-Frank Wall Street Reform and
Consumer Protection Act (the Dodd-Frank Act)
The Dodd-Frank Act provides significant financial incentives for employees to
disclose to government officials what they believe may be illegal conduct by their
employers. Here is a summary of the laws affected by the Dodd-Frank Act’s whistle-
blower provisions.
Sarbanes-Oxley Act. SOX prohibits retaliation against employees of publicly
traded companies who report acts of mail, wire, bank, or securities fraud; fraud
against shareholders; or violations of any rule or regulation of the Securities and
Exchange Commission (SEC) to their supervisors or other appropriate officials
within their companies or federal officials with the authority to remedy the
wrongdoing.
The law also prohibits retaliation against employees who assist in any investigation
of such violations or participate in any proceeding related to an alleged violation
of these laws (18 USC Sec. 1514A). Employees claiming retaliation under SOX must
exhaust administrative remedies before bringing an action in court. Complaints
are handled by DOL. If DOL does not issue a ruling within 180 days, the employee
may seek a trial in federal court.
The Dodd-Frank Act clarified some unsettled SOX issues. For example, courts were
split on whether SOX grants whistleblowers a right to a jury trial. The Dodd-Frank
Act makes clear that jury trials are available under the law. In addition, the Dodd-
Frank Act amends SOX by adding the following provisions:
N Non-publicly-traded subsidiaries of publicly traded companies are now
covered by SOX.
N Nationally recognized statistical ratings organizations are not covered by SOX.
N The statute of limitations is extended from 90 days to 180 days.
N Predispute arbitration agreements are prohibited under SOX.
N Individuals cannot waive their rights or remedies under SOX.
Securities and Exchange Commission Act. The Dodd-Frank Act created
additional whistleblower protections under the SEC Act. Employees who provide


information regarding securities law violations are entitled to between 10 percent
and 30 percent of monetary sanctions recovered that exceed $1 million. Employers
may not retaliate against employees who provide information regarding securities
law violations to SEC, assist in the SEC’s judicial or administrative investigations, or
make required or protected disclosures under SOX or other laws subject to SEC
jurisdiction.
Employees claiming retaliation may bring a claim in federal court, and if they
prevail, they may be awarded double back pay, attorney’s fees, and other costs.
Employees must bring their claim within 6 years of the retaliation, or within 3 years
after the employer knew or should have known of the retaliatory conduct; in no
case can a claim be made more than 10 years after the retaliation. Practically
speaking, this provision gives SOX plaintiffs the opportunity to bring a claim in fed-
eral court without first following the administrative procedures required by SOX.
Commodity Futures Trading Commission (CFTC). The Dodd-Frank Act created
a whistleblower program to protect employees who provide information related to
violations of the Commodity Exchange Act or assist in an investigation or judicial
or administrative action based on such information. As with the SEC Act, CFTC
whistleblowers are eligible to receive 10 percent to 30 percent of any fines recov-
ered by CFTC that exceed $1 million. Also, individuals may bring retaliation claims
in federal court. Predispute arbitration agreements are prohibited, as are waivers of
rights under the Act. However, unlike the SEC Act, complaints under the CFTC
whistleblower provisions must be brought within 2 years of the violation.
Consumer Financial Protection Bureau. The Dodd-Frank Act created a Bureau
of Consumer Financial Protection and provides whistleblower protections for
employees who work in the consumer financial services sector. These employers
may not retaliate against an employee “performing tasks related to the offering or
provision of a consumer financial product or service” who has:
N Provided information to his or her employer, the Bureau, or any local, state, or
federal authority relating what the employee reasonably believes to be a viola-
tion of one of the consumer financial services laws protected by the Bureau or
other Bureau rules;
N Testified in any proceeding related to enforcement or administration of the
Consumer Financial Protection Act of 2010, any of the other laws protected by
the Bureau, or Bureau rules;
N Filed or instituted any proceeding under federal consumer financial law; or
N Objected to, or refused to participate in, any activity, policy, practice, or assigned
task that the employee reasonably believed to be in violation of any law sub-
ject to the jurisdiction of or enforced by the Bureau.
Employees who believe they have been retaliated against for taking any of the
actions set forth above may file a complaint with DOL. If, after an investigation,
DOL finds in favor of the employee, it will order the employer to take affirmative
action to abate the violation. In addition, the employee will be awarded back pay,
reinstatement, compensatory damages and, upon request, attorney’s fees up to
$1,000. If DOL does not issue a final order within 210 days after the employee filed
the complaint, or within 90 days after it has issued a written determination on the
claim, the employee may file suit in federal court.


As with other whistleblower provisions under the Dodd-Frank Act, employees may
not waive their rights under this provision of the Dodd-Frank Act. Also, predispute
arbitration agreements are prohibited.
False Claims Act. Under the False Claims Act, an individual may bring a court
action, known as a qui tam action, against any person who knowingly makes a
false claim for payment from the government (31 USC Sec. 3729 et seq.). Employers
are prohibited from retaliating against employees who participate in a qui tam
action. Employees who prevail on a retaliation claim may be entitled to reinstate-
ment, as well as double back pay, special damages, costs, and attorney’s fees. The
Dodd-Frank Act expanded covered individuals to include not only the whistle-
blower but also “associated others.” It also provides that employees have 3 years
from the time of the retaliation to bring a claim.

Best Practice: Employee Communities Drive
Engagement at Top Company
HP Advanced Solutions, located in Victoria, British Columbia, has been recognized
as a Psychologically Healthy Workplace by the American Psychological Associa-
tion (APA) and was recognized as one of “Canada’s Top 100 Employers” by Media-
corp Canada in 2010.
The APA award is very difficult to achieve, explains Greg Conner, vice president
of Human Resources and Communications, with APA members surveying
employees of nominated organizations, conducting on-site, one-to-one interviews
with employees, and conducting a rigorous review of each organization’s policies
and procedures.
HP Advanced Solutions (www.edsadvancedsolutions.com), with a total of
400 employees, was founded in 2004 and is expert in information technology
processes and hosting infrastructures services, says Cynthia Funnell, director of
Marketing and Communications.
With two distinct business lines, HP Advanced Solutions provides revenue manage-
ment for the province of British Columbia, mainly through a call center with
50 agents collecting monies owed to the province, and a high technology division
that provides applications and mainframe services for the province as well as
some government-owned corporations.
Conner explains that the company’s mission is to be the number one provider of
labor-friendly business process and technology services. Of the 400 employees at
HP Advanced Solutions, 370 are unionized. The voluntary employee turnover rate
was only 6 percent in 2010 and 7 percent in 2009.
Conner bases his employee-focused initiatives on the following foundation or prin-
ciple that he mentions often:“When employees are engaged, they’re productive.
Productive employees earn more money for their company. There are many exten-
sive and cost-effective ways to create employee engagement and they ultimately
impact the bottom line [in a positive manner].”
Communities of Employees. One of his initiatives is creating and maintaining
communities of employees that work together as cross-functional teams outside of
their regular roles and work environments for the good of other employees, the
organization, and the outside communities surrounding HP Advanced Solutions.


The communities at HP Advanced Solutions currently include the Social and
Charitable Community, the Development Community, the Health and Wellness
Community, and the Sustainability Community. All of these consist of employees
volunteering to participate with no designated end to their terms, says Conner.
The Social and Charitable Community plans events, such as Jeans Day, Halloween
parties, and Global Volunteer Days, says Conner. The Global Volunteer Days are
Saturday events and generally attract 40 to 50 employees and family members,
who work together at a community organization of their choice, explains Conner.
The company provides a little seed money for supplies, he adds. The employees
are surveyed regarding the organizations that they’d like to help.
One Global Volunteer Day, for example, resulted in the dressing up of the barn
and offices for the Victoria Disabled Riding Association, which provides horseback
riding opportunities for adults and children with physical and psychological
disabilities.
Employee Recognition. The Development Community focuses on rewards and
recognitions for employees, says Conner. For example, there’s the Above and
Beyond Award, given on a monthly basis to an employee doing something well
beyond what is expected. Employees make the nominations for the award.
Conner says that at the company anniversary party held in December each
year, the Development Community coordinates the presentation of employee
recognition awards. One award, named “Starting Strong,” is given to a person in his
or her first or second year of employment who demonstrates the attitude and
ethics that everyone at the company would like to see.
“An award, Employee Excellence, is given out to the employee who embodies the
spirit of productivity and also has great relationships with fellow co-workers and
the community,” explains Conner. “The Volunteer award is given to someone who
volunteers internally, in local communities, or even internationally. The Leadership
award goes to the employee who demonstrates [excellent] leadership.”
The final community is Sustainability. “At the first meeting, we had 55 people. This
Community is designed to look at ways we can be more environmentally sensitive.”
One significant change that came from Sustainability was to change all the
printers to handle double-sided printing. It cut down on waste paper and saved
30 percent in the amount of paper used by the company, he explained.
These Communities provide only one aspect of what is done to strengthen the HP
Advanced Solutions work culture.
‘The Golden Rule.’ Conner comments,“It’s all about creating a workplace that
you are proud to be part of. It helps to keep people engaged. It’s the secular version
of The Golden Rule—treating each other the way you would like to be treated. If
you operationalize that, you will have the kind of environment that you want and
you can demonstrate [the results of] that.”


#4 Social Media

Employers are recognizing that social networking sites such as Facebook, LinkedIn,
and MySpace can be useful marketing and recruiting tools. Likewise, employees
have increasingly been utilizing social networking sites for a variety of uses, both
personal and professional. Although these sites can be beneficial, their use can
also have risks.
Discrimination. Some employers review social networking sites as a method of
screening applicants. Generally, once an applicant or employee posts something
on a public domain, such as a social networking site, an employer is free to view it.
However, by viewing candidate profiles, employers may learn more information
(e.g., race, disability, age, religion, family/marital status, sexual orientation) than the
employer could legally ask about directly. Therefore, it is critical that employers
base all interviewing and hiring decisions on job-related criteria. Employers must
also be aware that everything they find on a social networking site may not be cur-
rent, accurate, or even placed there by the prospective applicant, as users of these
sites sometimes “pretext” or pretend to be someone else.
Background Check Laws. The federal Fair Credit Reporting Act (FCRA) requires
employers to obtain applicants’ consent when a third party conducts a back-
ground investigation. Some states also have their own background check laws. It is
unclear whether these laws would require consent from an applicant before an
employer or third party conducted an Internet search as part of a background
check. However, even if not legally required to do so, employers should consider
getting consent so that applicants are on notice that the information they post on
social networking sites may be reviewed by the employer.
Monitoring Employee Use of Social Networking Sites. There is little case law
addressing the monitoring by employers of employees’ social networking posts.
However, the few cases in this area suggest that courts will be reluctant to uphold
an invasion of privacy claim (whether based on the federal constitution or state
common law) when an employee voluntarily posts information on a public site.
But the outcome may be different if employees set up an invitation-only site and
have an expectation that only invited users will be able to read their posts.
For example, a federal district court in New Jersey held that employees could pro-
ceed with their invasion of privacy claim when they were fired after uninvited
company managers accessed their invitation-only Web discussions of workplace
grievances (Pietrylo v. Hillstone Restaurant Group, No. 06-5754 (D. N.J. 2008)). The
court also permitted the employees to proceed with their claim that the managers
violated the federal Stored Communication Act (SCA) and similar state law. The
employees argued that one of the managers pressured an employee to provide
him with her password to the site. The court reasoned that if proven, this would
show a violation of the SCA and state law, because authorization to view the site
was not “freely given.”
In contrast, a California state court rejected an invasion of privacy claim by a
college student who posted an essay highly critical of her home town on a social
networking site (Moreno v. Hanford Sentinel, 172 Cal. App. 4th 1125 (2009)). The
student’s former school principal forwarded the post to a local newspaper that


published it. The student and her family were then subject to hostile treatment
from community members, including some death threats. The student claimed
that the school principal invaded her privacy by sending the post to the newspa-
per. The court rejected her claim, noting that she posted the essay on a social
networking site available to anyone with Internet access. The court did, however,
permit the student to pursue a claim of intentional infliction of emotional distress
against the principal.
On the basis of these cases, employers should be aware that while it may not be an
invasion of privacy to access an employee’s public social networking site, actions
taken based on the information on the site may lead to liability under other legal
theories. Moreover, coercing an employee to provide access to a private site may
be an invasion of privacy, as well as a violation of federal and state law. Employers
should also keep in mind that some states have laws prohibiting employers from
taking adverse action against an employee for engaging in legal activities while
off-duty. An employer in a state with such a law may face liability if it takes adverse
action against an employee because of the employee’s legal activities shown on a
social networking site.
Practice tip: Because this area of the law is in its infancy, employers should con-
sult with legal counsel before taking adverse action against an employee because
of his or her posts on a social networking site.
National Labor Relations Board (NLRB). Employers need to exercise caution
when disciplining employees for their use of social media. While an employer may
justifiably believe discipline, or even termination, is appropriate when an employee
uses social media to criticize the company, the NLRB may interpret the same criti-
cism as protected concerted activity.
The NLRB has issued several complaints against companies that provide insight
into how the NLRB views social media in the context of concerted action by
employees. In addition, the NLRB’s Acting General Counsel has issued a report on
cases arising in the context of social media to assist practitioners and HR profes-
sionals in this area.
Generally, if an employee uses social media for concerted activity, such as acting
with or on behalf of other employees regarding the terms and conditions of
employment, the NLRB is likely to find the activity protected, even if the employee
disparages the employer. In contrast, employees are not protected by the National
Labor Relations Act (NLRA) if they use social media to post their individual com-
plaints about management or workplace policies.
For example, the NLRB filed a complaint against an ambulance company when
it fired an employee who had posted negative comments about her supervisor
on her Facebook page. In another case, an administrative law judge held that a
nonunion employer committed an unfair labor practice when it fired five employ-
ees because of Facebook postings. One of the employees posted to her Facebook
page a co-worker’s comment that employees did not do enough to help the
organization’s clients. This post generated angry responses from other employees,
who defended their job performance and complained about working conditions.
The judge noted that the employees were “taking the first step” toward group
action to defend themselves against accusations that they could have reasonably
believed would have been brought to management (Hispanics United of Buffalo,
Case No. 3-CA-27872 (Sept. 2, 2011)).


However, employers may discipline or terminate employees because of their inap-
propriate social media postings as long as the postings do not involve protected
concerted activity. In one case, the General Counsel recommended dismissing an
unfair labor practice charge against a newspaper that fired a reporter for sending
“inappropriate and unprofessional” tweets from a work-related Twitter account. The
reporter criticized the paper’s copy editors, the city where the paper was located,
and a TV station that made a spelling error on its Twitter feed. The employee had
been warned that his tweets were unprofessional and damaging to the newspa-
per’s goodwill. The General Counsel found that the reporter’s actions did not
involve concerted activity.
Likewise, when an employee used social media to air his “individual gripes” against
a manager, his activity was not protected. Here, the employee posted a Facebook
comment expressing frustration about a dispute with a manager over mispriced
and misplaced items. Some employees responded to the posting expressing emo-
tional support and asking why the employee was so wound up. The employee’s
comments contained no suggestion that other employees engaged in group action,
and the employees’ responses gave no indication that they interpreted his com-
ments in such a way.
The Acting General Counsel’s report also addresses standards for social media
policies. Social media policies must be drafted so that they would not reasonably
be interpreted to deter employees’ exercise of their rights under the NLRA. For
example, a policy that stated employees should be cautious about posts involving
the employer that could be construed as inappropriate was considered too broad
by the NLRB. This was because the policy contained no direction as to what would
be considered “inappropriate.”Thus, employers should include definitions, exam-
ples, or other guidance in social media policies to clarify broad terms.
This area of the law is evolving. Employers should draft Internet and social media
policies carefully so that they do not prohibit employees from engaging in activi-
ties protected by the NLRA, and these policies should be reviewed by legal coun-
sel. Additionally, until the law is settled in this area, employers considering adverse
action against an employee who posted comments on social media about working
conditions may first want to consult with local employment counsel.
Employees’ Use of Social Networking Sites. Employers may find that employ-
ees use social networking sites to post positive information about their organiza-
tion’s products or work culture. Unfortunately, employee posts can also be
detrimental to employers. Therefore, employers should have policies in place set-
ting forth their expectations regarding employee’s social networking as it relates to
the employer. Such policies should prohibit:
N Illegal harassment of co-workers or customers;
N Interference or disruption of work because of social networking; and
N Exposing trade secrets or other proprietary company information.
It is also a good idea to train employees on the proper and improper use of social
networking at or relating to work.


Blogging
Blogging has grown quickly in recent years both with regard to the number of indi-
viduals reading and posting to blogs and the number of blogs available on the
Internet. There have been a number of highly publicized cases in which employees
were disciplined or fired for disclosing confidential or proprietary information
about their companies and/or describing their employers in an unflattering light.
Legal Considerations. When addressing blogging by employees, employers
should be aware of legal issues such as the employee’s right to free speech and
free association and the right to be free from restriction on off-duty activities. Many
states prohibit employers from taking action against employees who engage in
lawful off-duty activities. However, blogs can also be used to harass or defame
co-workers or others. If the company allows the employee to use company facili-
ties to create or maintain the blog, the company may be liable for the illegal
actions of the employee.
In order to prevent inappropriate blogging, employers should consider adding a
blogging provision to any existing Internet or electronic communication policy or
creating a separate policy on blogging.

FTC Guidelines on Testimonials and Endorsements
The Federal Trade Commission (FTC) has issued guidelines requiring individuals
who are paid to provide testimonials and endorsements on social networking sites
to reveal that they are being compensated (16 CFR 255.5). These guidelines could
affect employers if their employees tout a product or service on a social network-
ing site or blog without mentioning the employer/employee relationship. The FTC
has stated that when determining whether to initiate an enforcement action, it will
consider whether the employer had policies and practices relating to employee
participation in social media. In the past, the FTC has brought law enforcement
actions against companies whose failure to establish or maintain appropriate inter-
nal procedures resulted in consumer injury. However, it is unlikely to bring an
enforcement action against a company for the actions of a single “rogue” employee
who violated an established company policy.
Practice tip: In addition to the tips above, employers should make sure that their
blogging and/or social networking policies contain provisions requiring employ-
ees to reveal their employment status whenever they discuss company products or
services using these media. Companies should also enforce these policies as a
matter of good business practice and to ensure their credibility in case the FTC
reviews a situation.

Best Practice: 5 Reasons to Focus Your Social
Media Recruiting on LinkedIn
Do you focus your social media recruiting on LinkedIn? Or, do you prefer to use all
social media avenues? Perhaps you’re avoiding social media for hiring or recruit-
ing purposes altogether?
According to a recent study, social media can save a lot of money when it comes
to recruiting. The cost per-hire using social media is $377, while traditional methods


can run as high as $3,295 per hire. Plus, social media resources such as LinkedIn—
which is specifically designed for business use—can quickly help you find the per-
fect hire. Effectively incorporating this interactive technology into your recruitment
efforts can be a win-win situation for both your new hires and your organization.
In a BLR webinar titled “Online Recruiting: How LinkedIn Can Help You Find Talent,
Network, and Build a Digital Referral Base,” Linda Duffy, president of Leadership
Habitude, outlined ways to meet recruiting challenges using LinkedIn.
The SHRM April 2011 Research Spotlight: Social Networking Sites and Staffing
found that more than one-half (56 percent) of the organizations currently use
social networking websites when recruiting potential job candidates. This is a
significant increase since 2008, when a little over one-third (34 percent) of organi-
zations were using these sites as a recruiting tool. Duffy confirmed:“I believe if you
fast-forward another 3 years, it will be virtually 100 percent because I think this is
the trend and the direction we’re going.”
Out of the 56 percent of the companies using social networking websites for
recruiting, virtually all of them (95 percent) are using LinkedIn.
LinkedIn may be your very best resource for making the connections that lead to
qualified candidates and, ultimately, job offers. Social media in general has many
recruiting benefits. Here are five reasons social media—and LinkedIn in particu-
lar—are great for staffing and recruiting:
1. It’s in real time. Candidates can set up alerts to be notified of new job postings
and also can receive e-mails, texts, posts, and access websites on their phones.
No more waiting on the news cycle to post a new classified advertisement. Nor-
mal business hours don’t have to apply.
2. You can build a pipeline: Have candidates come to you! This is one of the
unique things about using social media for recruitment. It’s a two-way commu-
nication. LinkedIn also has groups users can join that allow them to see job
postings immediately.
3. It’s viral (and that’s a good thing). LinkedIn demonstrates this as well as any
site—we are no longer communicating one on one; it’s one to many.This is the
power of the networking aspect of the site in which something you post can
reach not only those who you are connected with but also potentially those they
are connected with as well. Additionally, a person can forward or share content
and connections and even post a comment on multiple sites at the same time.
4. It’s virtually free.Yes, you’ll have sunk costs if you want something fancy or
highly integrated … and you’ll also have labor to monitor and post your ad, but
the use of the site itself is free. If you post within a group on LinkedIn, there is
no cost, but even if you post on their job section directly, it is only $195. Com-
pare that to using offline agencies.
5. LinkedIn demographics tend to skew more professional than other social
media sites. While they have fewer users (120 million) than some other social
media sites, 70 percent are in the “workforce age population” of between
25 and 54 years of age. LinkedIn users tend to be more affluent and educated
compared to those on Twitter and Facebook.
This makes LinkedIn critical for recruiting professional candidates; it’s a great
choice for meeting your staffing and recruiting needs.


Best Practice: Using Social Media to
Communicate Sustainability Achievements
You have established a corporate sustainability program, and you are seeing posi-
tive results.You have engaged employees, and they are working toward meeting
companywide sustainability goals.You have faced challenges and have been cre-
ative in creating a program that fits your organization. Now you want to share your
achievements with the outside world using social media. But the problem is that
there are a lot of companies that are attempting to share their products and stories
as well. How do you get your company to rise to the top?
Jeannette Bitz and Marianna Grossman have shared five tips on Greenbiz.com for
expanding social presence in this increasingly crowded corporate sustainability
realm:
1. Be clear and passionate. Convey your goals and strategies clearly, and dis-
cuss your company’s viewpoints on issues and the media. Avoid discussing
your company and its products, unless they bring an original idea to the
conversation.
2. Identify the people with whom you want to communicate. Determine
your audience and learn who is leading the conversation.You will need to
spend some time doing some research; look for groups on LinkedIn, Twitter,
and keywords that will lead you to where the pulse of the sustainability
discussion is located that pertains to you.
3. Determine your role in the social media world. Do you want to blog?
Join groups? Take the time to determine the best social media tools for your
organizations, and create accounts on the networks and forums that you feel
are the best fit.
4. Become a part of the group. Once you have determined industry leaders,
figure out what makes them influential. Find conversations in which you can
contribute, and add your opinions and ask questions.
5. Keep track. As you do with your sustainability program, keep track of your
social media progress. Have you identified a new business lead in an online
conversation? Have you noticed an increase in the number of followers on
your blog?

#5 Environmental Responsibility

You know that green programs are good for business, so why is it so hard to get
upper management buy-in? Maybe it’s because they don’t fully understand all of
the benefits of a green program.

5 Reasons Why You Need a Green Program
Here are some convincing reasons to help you pitch starting a green program at
your company.


1. It’s easy! Whether it’s a factory, plant, or general office space, opportunities to
be green are in every workplace.You can easily train workers to save energy,
recycle, and reduce waste at little cost to your company.
2. Your competitors probably have one. If you want to stay competitive or
gain an advantage, a green program will help you do that.
3. Your workers want it. Most employees are interested in how their company
is practicing corporate social responsibility. This is a great opportunity for you
to shine in the eyes of your workers and be an employer of choice because
most employees link positive environmental and social activities to brand
reputation.
4. It’ll save money. It’s simple, cutting energy costs and waste will save your
company money. Simple tasks like printing on both sides of paper, turning off
computers and lights during nonworking hours, and conducting water audits
can add up to huge savings for your company.
5. It’ll keep you ahead of the regs. If you play in the global market you’ll have
to follow several European directives like Waste Electrical and Electronic
Equipment, Restriction of Hazardous Substances, and Registration, Evaluation,
and Authorization of Chemicals.

Best Practice: Energy-Saving Opportunities
You’ll be amazed at how easily you can cut your energy bill and protect the envi-
ronment for little or even no cost. Evaluate the best opportunities that will be most
effective for your company:
1. Track your energy bills:You need to know how much you pay for electricity,
natural gas, and fuel oil at your facility. Tip: Understand seasonal charges
in your utility bill that can affect your energy-saving actions for heating and
cooling.
2. Pinpoint equipment using the most energy: A small portion of the equipment
usually accounts for the greatest amount of energy consumption. Tip: Look for
large pieces of equipment and equipment that runs most of the time or that
has periodic, but substantial, start-up energy requirements.
3. Identify no- or low-cost projects.
4. Get management support:Your goal is to show the value of energy-saving
measures and the potential cost and productivity advantages of a more-aggres-
sive energy-efficiency program.
5. Create an energy team at your plant: The team will track and report energy
uses, identify energy-saving opportunities, develop an energy plan, and imple-
ment cost-saving measures.
6. Develop an ongoing strategy to sustain plantwide efforts and to improve and
maintain energy-efficient systems.
7. Shut off any lights you are not using.
8. Use compact fluorescent lightbulbs. They use less than 25 percent of the elec-
tricity of standard bulbs and last 10 times longer.


9. Seal drafty doors, windows, and holes around plumbing fixtures to keep out
winter cold and summer heat.
10. Use the energy-savings setting on all appliances, particularly air conditioners
and refrigerators, as well as on office machines such as copiers.
11. Unplug computers, monitors, modems, cable boxes, and televisions when not
in use. Better yet, plug them into power strips so it’s one easy switch to turn
them all off and on.
12. Unplug cell phone and PDA chargers when not in use. They use electricity
even when they aren’t charging!
13. Use green power.“Green power” is defined as electricity that is generated from
environmentally preferable, renewable sources such as solar, wind, geothermal,
biogas, biomass, and low-impact hydro.
14. Switch to paperless bank statements and bill paying to save millions of trees
and billions of gallons of water—plus the cost of stamps.
15. Drive less! Walk, bike, or take public transportation.

Best Practice: Do You Have a Recycling Policy?
Businesses can save money by reducing the amount of materials and energy they
consume and by recycling materials. A policy that establishes your organization’s
strategies for reducing consumption and recycling materials should include clear
guidance on work procedures for conservation of energy and recycling. These
strategies can save money, improve employee morale, and enhance your organiza-
tion’s image in the community.
Here are some tips and considerations for developing your company’s recycling
policy. Then join the conversation and tells us steps you’ve taken in your going
green journey!
Review of Policy. Your policy should state that it will be reviewed at least once a
year to make adjustments to any changes in law or changes in items that are
acceptable for recycling.
Program Administrator. Your policy should identify the person to be contacted
when there are any questions regarding recycling. This individual should be readily
available to answer questions regarding what items are to be recycled and to
respond to suggestions for altering your recycling program.
Reduction in Paper Used. Your policy could encourage employees not to print
or copy documents unnecessarily. Instead, you could encourage employees to
maintain electronic copies of a document rather than paper copies.
Packaging. If your business packages items for others, your policy should state
that you seek to minimize the amount of packaging used to reduce trash. Further,
your policy should state that you encourage employees to make suggestions for
reducing the amount of packaging while still protecting the product. Similarly, your
policy should encourage employees to make suggestions on when to use recycled
materials in your packaging.


Circulating Materials. To reduce the number of copies of an item, you may be
able to circulate one copy among several people. Additionally, you may want to
implement an e-mail, voicemail, or networking system to permit the routing of
information without producing a hard copy.
Confidentiality. If you have confidential documents, care should be taken to
remind employees to discard those items properly. For example, you may require
the items to be shredded before recycling.
Recyclable Items. Your policy should identify what items are to be recycled. Will
you recycle paper only? Newspapers? Aluminum cans? Plastics?
Use of Recycled Material. Your policy can encourage use of items made from
recycled materials.Your policy can also encourage the reuse of items before they
are discarded. For example, copy paper printed on one side only can be recycled
internally to make use of the blank back side (or even be made into scratch pads).
Items Not to Be Recycled. Your policy should expressly describe any items that
should not be placed in a container for recyclables. Otherwise, a few items that are
not to be recycled can ruin the contents of an entire container.
Cleaning. If plastic containers or aluminum cans are to be rinsed out before
placement in a recycling bin, you should advise employees of this in your policy.
Toxic Materials. Expressly identify any toxic materials that are not to be placed
in the recycling bins. For example, if you recycle a variety of cans, but not paint
cans or oil cans, your policy should expressly inform employees of these restric-
tions. Similarly, if you recycle plastics, but not plastic containers for motor oil, your
policy should so state.
OSHA. There may be Occupational Safety and Health Administration (OSHA) reg-
ulations regarding the disposal of certain workplace items, for example, needles in
healthcare facilities. OSHA may also regulate storage of items in the workplace.
Often, material safety data sheets will provide the needed information.
Environmental Laws. Various federal and environmental laws regulate the dis-
posal and recycling of materials, e.g., paint products, oil cans, tires, car batteries, or
glass bottles.
Recycling Laws. State or local laws may require certain businesses to recycle spe-
cific items. Office buildings may be required to recycle soda cans. Further, several
states and the District of Columbia have passed legislation requiring that newspa-
pers sold in these areas contain prescribed amounts of newsprint produced from
postconsumer newspapers.
Color-Coding Containers. To make it easier for employees to readily identify
which container to use for which items, you should consider color-coding the bins.
Location of Bins. Location sites should be convenient for employees to recycle.
At the same time, you should not have so many sites that it creates a burden to
gather all the items.
Signage. Not only should your signs identify what a particular recycling bin is to
contain but it should also identify items not to be placed in the container. For
example, your recycling bin for plastics ought to identify any item, such as plastic
containers for motor oil, which are not to be placed in that recycling bin.


Safety. When identifying items that you will recycle, you should consider potential
safety problems. For example, you may decide not to recycle glass because of the
risk of breakage that may lead to a serious cut.
Pickup Times. You should determine the optimal time for the pickup of the recy-
cled materials. For example, is one pickup a week sufficient? One pickup a month?
Is morning, mid-afternoon, or some other time best?
Inefficiencies in Recycling. Some manufacturers of copiers and printers warn
against the use of recycled toner cartridges. Such manufacturers suggest that there
can be some leakage of the material that may require the machine to be cleaned
sooner than normal. Similarly, the use of the back side of a prior draft may cause
your printer or copier to jam, resulting in inefficiencies or repairs.
Charitable Donations. If you have items that have outlived their usefulness to
your company but are still in working order, you may want to consider giving such
items to a charitable organization that could use them.

#6 Workplace Wellness

In this age of skyrocketing healthcare costs, it isn’t surprising that wellness is a
topic of discussion at home, in our schools, at all levels of government, and in the
workplace. There is evidence that an effective workplace wellness program will
result in a healthy return—both in terms of employee productivity and reduced
healthcare costs.
However, in order to realize this return, employers must make sure wellness pro-
grams are well-focused and well-executed. In other words, wellness programs must
target the health concerns of employees and their families. In addition, the com-
pany must communicate with employees about the program and its benefits to
make sure it is being used effectively.
Workplace wellness program offerings may vary from simple things, such as dis-
counts in membership fees at health clubs and in weight loss programs, to specific
help with managing chronic diseases, such as high blood pressure and diabetes.
As with any workplace program, employers must consider federal and state laws
when setting up a workplace wellness program.

What Is Wellness?
The concept of wellness encompasses every aspect of our lives. In 1979,
Dr. Bill Hettler, cofounder of the National Wellness Institute (http://www
.nationalwellness.org), developed a model called The Six Dimensions of Wellness,
which is generally accepted by the wellness community. The six dimensions are:
N Physical—Bodily health through exercise, nutrition, and abstaining from
harmful activities, such as smoking
N Emotional—Emotional health through learning to recognize, express, and
control feelings and moods


N Intellectual—Mental health through developing creativity, learning ability, and
problem-solving skills
N Occupational—Job satisfaction through learning individual aptitudes and
skills and finding meaning in work
N Social—Community connections through learning the part we play in our
interconnected world
N Spiritual—Larger life questions through learning to choose and live by a set
of values that give meaning to our lives

Legal Issues Related to Workplace
Wellness Programs
Employers have a great deal of flexibility in designing wellness programs. However,
it is a good idea to review any program with an attorney, and employers should
work closely with insurance providers if the wellness program will offer financial
incentives or benefits through group health plans. There are a number of laws to
be aware of when developing and implementing these programs.

Americans with Disabilities Act (ADA)
The ADA requires employers to offer a reasonable accommodation to an
employee with a known disability, and it prohibits employers from making medical
inquiries or requiring medical examinations (unless job-related and consistent
with business necessity). It is also unlawful under the ADA to take any adverse
employment action based on an individual’s actual or perceived disability.
The Equal Employment Opportunity Commission (EEOC) has offered employers
some guidance on the ADA’s restrictions on medical inquiries and examinations.
Under the guidelines, an employer may conduct medical examinations and activi-
ties that are part of a voluntary wellness and health screening program. Therefore,
offering employees the opportunity to voluntarily participate in health screening
programs for high blood pressure and cholesterol monitoring is not likely to vio-
late the ADA as long as there is no penalty (economic or otherwise) for not partici-
pating. Employers must treat any information acquired as a confidential medical
record.

Health Insurance Portability and Accountability Act (HIPAA)
DOL’s Employee Benefits Security Administration (EBSA), HHS, and the IRS pub-
lished rules in 2006 that provide guidance in complying with the nondiscrimina-
tion provisions of HIPAA. The rules also provide guidance on the implementation
of wellness programs.
HIPAA nondiscrimination provisions generally prohibit group health plans from
charging similarly situated individuals different premiums or contributions or
imposing different deductible, copayment, or other cost-sharing requirements
based on a health factor. Health factors include health status, medical condition
(including both physical and mental illnesses), claims experience, receipt
of health care, medical history, genetic information, evidence of insurability
(including conditions arising out of acts of domestic violence), and disability.


However, there is an exception that allows plans to offer wellness programs if they
meet certain criteria.
Under the regulations, examples of wellness programs that comply with HIPAA’s
nondiscrimination requirements without having to satisfy any additional standards
(assuming participation in the program is made available to all similarly situated
individuals) include:
N A program that reimburses all or part of the cost for memberships in a
fitness center;
N A diagnostic testing program that provides a reward for participation and
does not base any part of the reward on outcomes;
N A program that encourages preventive care through the waiver of the
copayment or deductible requirement under a group health plan for the
costs of, for example, prenatal care or well-baby visits;
N A program that reimburses employees for the costs of smoking cessation
programs without regard to whether the employee quits smoking; and
N A program that provides a reward to employees for attending a monthly
health education seminar.
A wellness program that conditions a reward on an individual satisfying a standard
related to a health factor must meet these five requirements:
1. The total reward must be limited. Generally, it must not exceed 20 percent of
the cost of employee-only coverage under the plan.
2. The program must be reasonably designed to promote health and prevent
disease.
3. The program must give individuals eligible to participate the opportunity to
qualify for the reward at least once per year.
4. The reward must be available to all similarly situated individuals. The program
must allow a reasonable alternative standard (or waiver of the initial standard)
for obtaining the reward to any individual for whom satisfying the initial
standard is medically inadvisable or unreasonably difficult due to a medical
condition.
5. The plan must disclose in all materials describing the terms of the program the
availability of a reasonable alternative standard (or the possibility of a waiver
of the initial standard).

National Labor Relations Act
Employers who have negotiated a collective bargaining agreement with a union
are required by the NLRA to bargain over “wages, hours, and other terms and con-
ditions of employment.”Therefore, a union may claim that a wellness program is a
term or condition of employment that mandates bargaining. Employers should
also check the governing collective bargaining agreement to see if a wellness pro-
gram falls under a subject they have agreed to negotiate. For example, a bargaining
agreement may mandate negotiation over the amount of employee-paid insurance
premiums, but not health insurance or other employee insurance benefits.


Internal Revenue Code
Depending on the incentives and benefits included in an employer’s wellness pro-
gram, there may be tax consequences for the employer and the employee. For
example, some employee incentives may constitute taxable income for employees.
Generally, the value of an incentive is includible in the employee’s gross income
(e.g., gift cards, memberships to off-site exercise facilities). However, there are some
exceptions, including:
N Free or subsidized access to a gym or athletic center that is operated by the
employer and located on the employer’s premises,
N Discount on employee contribution required to participate in employer-
sponsored health plan, and
N Contributions to an employee’s flexible spending account.
In addition, a discount to an employee’s healthcare insurance offered as an incen-
tive to employees who participate in a wellness program would probably not be
considered taxable income for employees. Employers are well advised to obtain
guidance from a tax professional as tax laws are complex and regulations can
change frequently.

State Laws that Protect Off-Duty Conduct
Several states have laws protecting the off-duty conduct of employees. Some states,
including Connecticut, Indiana, Kentucky, Louisiana, Maine, New Mexico, Nevada,
New York, North Dakota, Oklahoma, Rhode Island, and the District of Columbia,
have “Smokers’ Rights” laws that protect individuals from discrimination on the
basis of the lawful use of tobacco products outside of the workplace. Other states,
such as California, have broader coverage that includes any lawful activity occur-
ring away from the employer’s premises during nonworking hours.
When designing a wellness program, employers should review state laws prohibiting
employment discrimination to be sure the program complies with state requirements.
Once a program is in place, employers should take steps to ensure that employment
decisions are not based on conduct that is protected by law. It is necessary to keep in
mind that Employee Retirement Income Security Act (ERISA) may preempt state law
when a wellness program is part of an employee benefit plan.
However, ERISA will neither preempt state laws that have only a “tenuous, remote
or peripheral connection” to employee benefit plans, nor will it preempt state
insurance laws. If a wellness program is challenged based on a state law that pro-
tects off-duty conduct, ERISA’s preemption clause may come into play—but it
would depend on whether the program is part of an employee benefit plan within
the meaning of ERISA’s preemption clause.
A federal court decision demonstrates the difficulties that arise when a mandatory
wellness program conflicts with an employee’s off-duty conduct (Rodrigues v.
The Scotts Company LLC, No. 07-10104 (D. Mass. 2008)). In this case, the employer
instituted a mandatory wellness program that included a tobacco-free policy
prohibiting “smoking of tobacco products by its employees at any time and at any
place, whether or not in the workplace or during work hours.”
The applicable state law does not have a provision prohibiting discrimination
against employees who use tobacco products. The employer used random testing


of employees to enforce its policy. When it subsequently discharged an employee
who tested positive for nicotine, the employee filed a lawsuit based on various
claims. Ultimately, the court ruled the former employee could pursue his lawsuit
based on his claims of invasion of privacy and a violation of ERISA, but not on his
claim of wrongful termination or a violation of the state civil rights law.
Note: Because state laws and regulations vary widely, employers should have their
wellness programs reviewed by an attorney familiar with applicable state laws,
particularly if employee participation in a wellness program is mandatory.

Best Practice: Suggestions for Wellness Programs
Ideas that employers can use in their wellness programs are as varied as the
employees in an employer’s workforce. It may take some trial and error to find the
ones that create an enthusiastic response and achieve high levels of participation.
Some successful programs have included one or more of the following:
N Voluntary screening to check blood pressure, cholesterol levels, and other
risk factors
N Personal finance education and counseling
N Smoking cessation program
N Financial incentives for voluntary participation in healthcare assessment
N Reduced copayments for drugs that treat asthma, diabetes, hypertension, and
other chronic conditions
N Health insurance discounts for nonsmokers
N Health insurance surcharges for smokers
N Discounted gym memberships
N Partnering with local restaurants to provide healthy lunch options
N Reimbursement for membership in Weight Watchers® or other weight
management programs
N Healthy food options in company cafeteria or vending machines
N On-site medical facility, fitness center, and pharmacy for employees’ use
N No out-of-pocket cost to employee for preventive care, e.g., annual physical
exam, well-child exams, mammograms
N Flu vaccinations
N Newsletters, e-mail notices, bulletin board postings, and other awareness strate-
gies to increase participation in wellness initiatives
Both large and small employers can implement wellness programs that help
reduce the cost of health care and improve the health of employees. Careful
assessment of workforce needs, tailoring of programs to meet those needs, and a
comprehensive health management strategy are all components that will help an
employer’s wellness program succeed.


Best Practice: 13 Inexpensive Tips for
Encouraging Wellness Program Participation
Beyond the actual physical activities, most wellness programs need a little incen-
tive to encourage participation and especially to keep people participating after
the initial excitement has worn off. Here are some tips from the New York State
Physical Activity Coalition:
1. Provide incentives like T-shirts, caps, aprons, or paid time off.
2. Hold contests or other fun worksite competitions:
N “Wellness Project of the Month”
N “Set Your Goal” competition
N Employee/management and interdepartmental challenges
N Health trivia game on computer with prizes to the winners
3. Announce and publicize a monthly health theme.
4. Conduct recognition activities for employees making efforts at healthier
lifestyles:
N Bulletin board announcements.
N Personally signed letters from the CEO congratulating employees on their
healthy behaviors.
N Publicity for success stories or the healthy employee of the month.
N Recognition for the coordinators of wellness activities.
5. Provide bulletin boards for health information exchange and for people to
write milestones they have achieved in health (e.g., New Year’s resolution, miles
walked, pounds lost).
6. Provide child care so that parents can participate in wellness activities.
7. Have the company health practitioner set a time (weekly, monthly) to check
blood pressure, body fat, and weight.
8. Provide one-on-one counseling for high-risk employees and people with dis-
abilities by establishing wellness mentoring programs. (Note: Take care with
this one so you don’t run afoul of discrimination laws.)
9. Develop a team for brainstorming ideas and to help with wellness activities.
10. Conduct a survey to assess what topics employees want to pursue.
11. At all meetings:
N Start with a stretch, and take a relaxation break in the middle.
N Conduct a wellness activity.
N Recognize an employee birthday or other special event.
12. Rotate departmental responsibility for wellness activities.
13. Utilize college interns to assist with developing and running wellness projects
and events.


#7 Classifying Employees

Topic: Amendments to the Fair Labor
Standards Act (FLSA) Recordkeeping Regulations
DOL’s Wage and Hour Division (WHD) intends to update the FLSA recordkeeping
requirements to foster openness and transparency, to increase awareness among
workers, and to encourage greater compliance by employers. DOL is considering a
proposed rule requiring covered employers to notify workers of their rights under
the FLSA, and to provide information regarding hours worked and wage computa-
tion. Any employers that seek to exclude workers from the FLSA’s coverage will be
required to perform a classification analysis, disclose that analysis to the worker,
and retain that analysis to give to WHD enforcement personnel who might request
it. The proposal will also address burdens of proof when employers fail to comply
with records and notice requirements.
The current recordkeeping regulations require covered employers to keep speci-
fied payroll records and other information but do not require that such informa-
tion or other information regarding a worker’s employment or exemption status be
disclosed to the worker. This is an issue of transparency and is critical to workers’
understanding of their legal rights and responsibilities.
Employers covered by the FLSA are currently required to provide notice regarding
the Act and to keep records on wages, hours, and other items, as specified in
recordkeeping regulations established to ensure compliance with the various pro-
visions of the Act. Most of the information required to be kept is of the kind
employers generally would maintain in ordinary business practices. Required
records generally include the employee’s name, address, date of birth (if under
19 years of age), hours worked per day and per week, regular rate of pay (non-
overtime rate) when overtime is worked, amount of straight time earnings and
overtime pay for each workweek, and deductions from or additions to pay.
The regulations also specify the records an employer must keep in order to con-
firm that particular exemptions from some of the FLSA’s requirements may apply.
Employers must keep additional information on certain employees who are home-
based or work under uncommon pay arrangements or to whom lodging or other
facilities are furnished or other special requirements apply.
Updating the recordkeeping requirements to promote transparency is expected to
encourage greater levels of compliance by employers, to enhance awareness
among workers of their status as employees or independent contractors and
employee rights and entitlements to minimum wage and overtime pay, and to facil-
itate DOL enforcement.

IRS Voluntary Worker Classification Settlement
Program
The IRS Voluntary Classification Settlement Program (VCSP) will enable many
employers to resolve past worker classification issues by voluntarily reclassifying


their workers. The program is designed to increase tax compliance and reduce the
burden for employers by providing greater certainty for employers, workers, and
the government. Under the program, eligible employers can obtain relief from
federal payroll taxes they may have owed in the past if they prospectively treat
workers as employees. The VCSP is available to eligible businesses, tax-exempt
organizations, and government entities that have erroneously treated their workers
or a class or group of workers as nonemployees or independent contractors, and
now want to correctly treat these workers as employees.
To be eligible, an applicant must:
N Consistently have treated the workers as nonemployees in the past,
N Have filed all required Forms 1099 for the workers for the previous 3 years; and
N Not currently be under audit by the IRS, DOL, or a state agency concerning the
classification of these workers.
Interested employers can apply for the program by filing an application for the
VCSP Form 8952, at least 60 days before they want to begin treating the workers as
,
employees.
Employers accepted into the program pay an amount effectively equaling just over
1 percent of the wages paid to the reclassified workers for the past year. No interest
or penalties will be due, and the employers will not be audited on payroll taxes
related to these workers for prior years. Participating employers will, for the first
3 years under the program, be subject to a special 6-year statute of limitations,
rather than the usual 3 years that generally apply to payroll taxes.

Wage and Hour Investigations
WHD is responsible for administering and enforcing a number of federal laws that
set basic labor standards. If the employer is subject to these laws, the investigator
will verify that workers are paid and employed properly according to the laws
administered and that youths under the age of 18 are employed as provided by the
child labor provisions.
WHD does not require an investigator to previously announce the scheduling of
an investigation, although in many instances, the investigator will advise an
employer before opening the investigation. The investigator has sufficient latitude
to initiate unannounced investigations in many cases in order to directly observe
normal business operations and quickly develop factual information. An investiga-
tor may also visit an employer to provide information about the application of, and
compliance with, the labor laws administered by WHD.
WHD does not typically disclose the reason for an investigation. Many are initiated
by complaints. All complaints are confidential, so the name of the worker, the
nature of the complaint, and whether a complaint exists may not be disclosed. In
addition to complaints, WHD selects certain types of businesses or industries for
investigation.
WHD often targets low-wage industries because of high rates of violations or egre-
gious violations, the employment of vulnerable workers, or rapid changes, such as
growth or decline, in an industry. Occasionally, a number of businesses in a specific
geographic area are examined. The objective of targeted investigations is to


improve compliance with the laws in those businesses, industries, or localities.
Regardless of the particular reason that prompted the investigation, all investiga-
tions are conducted in accordance with established policies and procedures.
During an investigation, DOL representatives visit a business and gather data on
wages, hours, and other employment conditions or practices in order to determine
compliance with the law. WHD does not require an investigator to previously
announce the scheduling of an investigation, although investigators will often
advise an employer before opening the investigation. The investigator has sufficient
latitude to initiate unannounced investigations in many cases in order to directly
observe normal business operations and develop factual information quickly.
If violations are found, the employer may owe back pay, face penalties, and be
advised by DOL to make changes in employment practices in order to avoid
future violations.
The WHD investigator will identify himself or herself and present official creden-
tials. The investigator will explain the investigation process and the types of
records required during the review. An investigation consists of the following steps:
N Visitation and inspection of the business under investigation.
N Examination of up to 3 years of records to determine which laws or exemp-
tions apply. These records include those showing the employer’s annual dollar
volume of business transactions, involvement in interstate commerce, and
work on government contracts. Information from an employer’s records will
not be revealed to unauthorized persons.
N Examination of payroll and time records, and taking notes or making transcrip-
tions or photocopies essential to the investigation.
N Interviews with certain employees in private to verify the employer’s payroll
and time records; to identify workers’ particular duties in sufficient detail to
decide which exemptions apply, if any; and to confirm that minors are legally
employed. Interviews are normally conducted on the employer’s premises. In
some instances, present and former employees may be interviewed at their
homes or by mail or telephone.
N When all the fact-finding steps have been completed, the investigator will ask to
meet with the employer or a representative who has authority to reach decisions
and commit the employer to corrective actions if violations have occurred.The
employer will be told whether violations have occurred, what they are, and how
to correct them. If back wages are owed to employees because of minimum
wage or overtime violations, the investigator will request payment of back wages
and may ask the employer to compute the amount due.
DOL looks for complete, accurate, and unambiguous pay records for every
employee for each pay period from the past 3 years. As a result, it is imperative that
employers strive to keep accurate, well-organized wage and hour records that can
be produced quickly.
In general, employers in the following categories must comply with the wage and
hour requirements of FLSA:
N Employers engaged in interstate commerce or the production of goods for
interstate commerce
N All hospitals, schools, and public agencies


Employees in firms not covered by the FLSA might still be protected under the Act
if their individual work involves interstate commerce or the production of goods
for interstate commerce.
Tip: If an employer believes that it may have wage and hour issues, it should con-
tact an attorney experienced in wage and hour investigations as soon as possible.
An experienced attorney can provide details about the employer’s rights and
responsibilities from the outset.
The FLSA prohibits employers from discharging or discriminating against any
employee who files a wage and hour complaint or who provides information dur-
ing a DOL investigation. As a result, employers should be cautious not to discour-
age employee cooperation with wage and hour investigations or to respond
negatively to any employee who files a wage and hour complaint.

Best Practice: How to Prepare for an Investigation
In order to prepare for a wage and hour investigation, consider taking the follow-
ing steps:
N Appoint a company representative or legal counsel to interact with the DOL
investigator.
N Before providing information or documents to DOL, the representative or
attorney should determine the scope of the investigation and review all
documents before handing them over to DOL.
N Prepare a legal and factual “position statement” for the investigator, outlining
any compliance steps taken by the organization.
N Provide managers with relevant information and interview employees in
advance so that everyone is better prepared to respond to the investigator’s
questions.
N Do not discourage employee cooperation with wage and hour investigations
or respond negatively to any employee who files a wage and hour complaint.

Cooperation Is Essential
Employers should demonstrate their willingness to cooperate with DOL investiga-
tors and to adjust their procedures and policies as necessary to avoid violations in
the future.

How to Prevent an Investigation
Here are some strategies to prevent a wage and hour investigation:
Avoid unfair compensation practices. Make sure employees are compensated
in a consistent manner. If an employer’s pay practices are consistent, complaints
are less likely to arise, and the employer will be in a better situation if DOL does
launch an investigation.
Understand the regulations. It is important that employers take the time and
make a concerted effort to understand and familiarize themselves with the FLSA.
It is the law, and if employers fail to follow the law they may face litigation or a
DOL audit.


Train. Train managers so they are fluent in the language of the FLSA.
Analyze state versus federal law. Determine whether the state’s wage and hour
laws conflict with federal law, then follow the law that is most beneficial to the
employee.
Pay past overtime due. If it is determined that an employee is wrongly classified
as exempt, the employer should determine how many overtime hours the
employee has worked in the past 2 years, then pay the employee the overtime due.
The employer should also have the employee sign a release to free the employer
from further liability. Paying past overtime due to employees now will be far less
expensive than paying them in a DOL settlement.
Respond to internal complaints expeditiously. If an employee files a wage
and hour complaint internally, the employer should take it seriously. Since many
investigations are prompted by an employee’s complaint, employers might be able
to prevent an investigation by addressing an employee’s initial internal complaint.
Seek compliance assistance from DOL. Various compliance tools and informa-
tion are available on DOL’s website at http://www.dol.gov.
Conduct a self-audit. Employers can hire attorneys to audit their companies—or
they can do it themselves before DOL initiates an investigation. Conducting a self-
audit helps ensure compliance with federal and state laws. As part of an audit,
employers should:
N Review job descriptions to determine whether they are still accurate, reflect
the jobs being performed, and reflect the skills necessary to perform the job.
N Review employees’ actual job duties to ensure that they still fall within the
administrative, executive, professional, computer, or outside sales exemptions.
N Make sure overtime for nonexempt employees has been properly calculated.
For instance, bonuses and shift premiums should be included in the calcula-
tion of the regular rate of pay.
N Make sure the required posters have been hung in the appropriate places in
the workplace.

#8 Retirement of Baby Boomers

Teamwork, Participation Are Generally
Important to Baby Boomers
Each generation of employees has a set of common values and attitudes that grew
out of influences during their formative years. For example, Baby Boomers grew up
in a time when rights were a big issue—in schools, voting booths, housing, and
workplaces. They came to work with the notion that they had rights as employees
and employers had to respect their rights.


Here are some other common values and attitudes of Boomers (i.e., those born
after World War II and on into the early 1960s):
N Boomers brought with them the optimism of the 1960s and the belief that
change could and should occur, and that at work as everywhere else in their
lives, there were lots of possibilities within their grasp.
N This generation has been more interested in career and personal growth than
the previous generation.
N They have also tended to value self-gratification and self-interest more than loy-
alty and dedication to the organization.
N However, Boomers, for the most part, have been big on teamwork and partici-
pation. And when they moved into positions of power in the workplace, they
put an emphasis on these strategies, which have been widely adopted and
have proved very successful in American enterprises of all kinds.

Healthcare, Technology Skills Among
Baby Boomers’ Concerns
Do your supervisors understand the concerns Baby Boomers have? Here is a list of
common concerns that you can pass along to supervisors:
N Baby Boomers are interested in healthcare benefits. Statistics show that people
in their fifties and sixties begin to experience more health problems and dis-
ease.
N Boomers are generally concerned about retirement. Some of the older ones
are already retiring. The younger ones are busy saving for retirement. Many of
them are empty nesters. They’ve finally gotten their kids through college and
now it’s time to pump up the 401(k).
N Baby Boomers may be concerned about keeping up with workplace changes
and new technologies. Some may find this more difficult than it is for the
younger generations.
N Boomers are often concerned about maintaining their status and position as
they face more and more competition from the up-and-coming Generation
Xers.
N And finally, many Boomers are concerned about having more leisure time.
They’ve been working for a long time and many have put in long hours on the
job over the years. Now they want a little more free time to enjoy themselves.

Succession Planning: A Strategy for Meeting
Talent Needs
Traditionally, succession planning focused on an orderly transition at the top of the
company. Companies would plan for the time when a chief executive officer, presi-
dent, chief financial officer, or other key manager would retire or move on to new
opportunities. The focus would be on a smooth transition to new leadership, mak-
ing sure the company stayed on track during the transition.


Succession planning has taken on a whole new level of importance today as com-
panies anticipate changes in the workforce. One of the most notable is the aging of
the workforce and the significant “brain drain” many companies will experience as
Baby Boomers begin to retire.
The BLS reports that over one-third of the civilian employees working for the fed-
eral government are eligible for retirement, and 34 percent are over 50 years of age.
The same situation exists, but to a somewhat lesser degree, in the workforce as a
whole. Therefore, employers can expect that federal and state governments will be
hiring large numbers of replacements from available employees to fill positions in
both the private and public sectors.
In this new environment, succession planning has a broader focus. Companies
must plan not only for staffing needs at the top of the company but must also iden-
tify and plan for future human capital needs at all levels–planning for the future
growth and success of the company. If the company is not prepared and has not
invested in its key employees, when the need to fill a position arises, the company
will likely find itself looking outside the organization in competition with other
public and private employers.

Developing a Succession Plan
In many organizations, a succession plan is a document developed by the Human
Resources department, distributed to managers, and then put on a shelf. This type
of plan is of little value to a company.
To be of real value, the plan must include input from senior management, an analy-
sis of the company’s current and future needs for talent, a plan for identifying
employees who will be trained and mentored to fill key roles in the future, and a
plan for recruiting outside talent to make sure the company has the skills and
experience it needs. Once this is done, the plan must be implemented, and man-
agers and supervisors at all levels of the company must be evaluated on their work
in developing employees.
Study the demographics of the company. Early in the process, it is important to
analyze the current workforce. Is “brain drain” going to present a significant prob-
lem for the company, and if so, when and in what areas or jobs? Knowing when
and where there will be key vacancies or a need to replace accumulated skills and
knowledge will help focus on future needs as well as current vacancies when new
employees are recruited and hired.
Link strategic goals with human capital needs. Identify the talent, skills, and
experience the company will need over the next 5 to 10 years in order to achieve
goals and continue to be successful. This will include the knowledge, skills, abili-
ties, experience, education, core competencies, and even personality traits that will
be needed to fill top management positions and other positions that will be key to
the company’s long-term success.
Let senior management play a role. As noted above, a succession plan docu-
ment that sits on a shelf is not helpful. Armed with demographic information and
information on the talent, skills, and experience the company will need over the
next 5 to 10 years, Human Resources managers need to involve senior managers
in the planning process so that succession planning and the development of
employees are adopted as strategic goals. Senior management will be more likely


to participate in the process if it is linked to their own strategic goals and the long-
term strategic goals of the company.
Senior management must play a central role both in developing the plan and mak-
ing sure it is properly implemented, including:
N Reviewing and adjusting the 5- to 10-year analysis of talent, skills, and experi-
ence to make sure it is aligned with the long-term goals of the company
N Identifying key positions and the skills and experience necessary to fill them
N Using data that are readily available and can be gathered at regular intervals
N Identifying high achievers or high potential employees already working for the
company who will be targeted for mentoring and cross-training so that they
can fill key positions in the future
N Providing project work to targeted employees in order to expand their knowl-
edge and experience and prepare them for future leadership roles
N Supporting recruiting efforts aimed at hiring individuals with the skills and
experience needed now and in the future
N Evaluating managers and supervisors at all levels of the company on how well
they develop and mentor employees

Notifying Employees
Critical to the effectiveness of any succession plan is employee awareness of such
a plan. Employees who are aware of the employer’s succession plan and program
will be more likely to self-identify through performance. Employees who fit within
the employer’s succession plan will derive comfort and security from a tangible,
well-laid-out plan for their future.
In order to establish a written succession plan and policy, the employer should
consider the purpose of the plan (e.g., to identify employees with skills and poten-
tial to succeed within the organization and to ensure that outgoing employees
are replaced with high-quality candidates from within) and any procedures for
succession planning (e.g., schedule for review of plans, identification of critical
positions, past plan performance, and future modifications of the plan).

Identifying Key Positions and Skills
A critical step in the process is to specifically identify the key positions that will be
targeted in the succession plan. This usually includes management-level positions.
It may also include highly specialized jobs that are essential to the company’s abil-
ity to meet current or future goals.
Once the positions are identified with the help of senior management, it is impor-
tant to understand what the knowledge, experience, training and education, skills,
personality traits, and other necessary requirements are for these positions. Once
the company understands what it needs, it can look at current employees and
identify individuals with the potential to fill these key positions. In addition, the
company can identify gaps in the skills and experience of current employees and
then make a concerted effort to fill those gaps when hiring employees from out-
side the company.


Identifying High-Potential Employees
Also critical to the succession plan is the process of identifying employees that will
be targeted for training and mentoring so that they will be ready to step into key
positions when openings occur. It is helpful to consider these criteria:
N Work history, including progression into more responsible positions, and past
experience that might be helpful in a future position
N Job performance over time
N Education and training
N Demonstrated willingness to take initiative on new projects and to suggest
new ideas
N Employee’s own interests and career goals
N Personality profile if the company uses this type of assessment
N Ability to get work done and to meet deadlines
N Ability to work as part of a team and to motivate others
N Understanding of the company’s products and customers
N Training needs of the employee in order to be ready for more responsible
management positions
Once an employee is identified through this process, the next step is to develop an
individualized plan for the employee. The best development plans include a men-
tor relationship with a successful senior manager, cross-training, and project work
that provides leadership opportunities for the employee. Even though some class-
room training may be appropriate, managers generally learn more relevant skills
through observation and practice. The development plan should focus on making
sure the employee has the skills, training, traits, and experiences necessary to fill
one of the key positions if and when there is an opening.

Setting Development Goals
Once individual high-performing and high-potential employees have been identi-
fied, development goals should be set, including establishing projects or work
activities for development, setting the time frames for development goals, determin-
ing the resources needed, setting measurements, and agreeing on the action neces-
sary to set and carry out development goals. Once goals have been set, the
individual’s career coach (usually the manager) should be assigned and their role
should be clearly established.

Best Practice: Retirement Policies to Protect
Your Organization and Prepare Employees
A policy on retirement can take many forms. Some companies confine themselves
to specifying the minimum retirement age and briefly outlining the way in which
the company will observe an employee’s retirement, for example, by holding a spe-
cial dinner for the retiree and his or her spouse and fellow workers. Others have


well-organized preretirement counseling programs. And still others have retirement
policies that are primarily pension plan summaries.
Preretirement planning and preretirement counseling programs have multiplied in
recent years. Enlightened employers today realize that it is to their advantage, as
well as their employees’, to provide some form of preparation for retirement living.
Such programs give the company a good name in the community, thus aiding
recruitment and public relations efforts.
The passage of the 1986 amendment to the Age Discrimination in Employment Act
(ADEA), which eliminated mandatory retirement for most employees, forced many
employers to reconsider their retirement policies. Faced with the possibility that an
increasing number of older workers will stay on the job, these employers have tried
to promote a policy that will ensure that their older workers are treated fairly. It’s
not an easy situation to handle in many cases, as thousands of age discrimination
suits can readily attest.

#9 Identity Theft

FACTA
The Fair and Accurate Credit Transactions Act (FACTA) requires employers, regard-
less of size, that collect personal information or consumer reports about customers
or employees for a business purpose to safeguard such information and to use rea-
sonable measures to destroy the information before it is discarded. FACTA is
enforced by the FTC. Reasonable measures to destroy personal information
include:
N Burning, shredding, or pulverizing documents so that they are impossible to
reconstruct.
N Destroying or erasing media or electronic files that contain consumer reports
so that they cannot be recovered.
N Conducting due diligence before hiring a document destruction contractor to
dispose of personal information. Due diligence could include reviewing an
independent audit of a disposal company’s operations and/or its compliance
with the law, obtaining references for the disposal company, requiring that the
disposal company be certified by a recognized trade association, or reviewing
and evaluating the disposal company’s security policies or procedures.
Employers may face penalties if they do not comply with the Act. Any employer
whose action or inaction results in the loss of personal information can be fined
by federal and state government and sued in civil court. Employees are entitled to
recover actual damages sustained if their identity is stolen because of the
employer’s inaction or damages up to $1,000. Employees may also bring class
action suits against employers for actual and punitive damages.
Create a plan. To comply with FACTA, employers should develop a written secu-
rity plan describing how personal information will be protected. Having a written


plan will help demonstrate that the employer has taken affirmative steps to protect
personal information in the event that the FTC conducts an investigation or a
breach actually occurs. According to the FTC, a security plan should:
N Designate an employee who will be responsible for implementing the plan.
N Identify what and how personal information is collected and retained and the
risks to the security of the information.
N Design and implement measures to safeguard both physical and electronic
personal information.
N Retain only the personal information that is needed for the business.
N Train employees on the security policy.
N Develop a plan for handling a security breach that does occur to mitigate any
damage and repair the breach.
Employers should also reevaluate and modify the plan as needed.

Red Flags Rule
The FTC red flags rule required by FACTA outlines specific requirements to help
eliminate identity theft. As originally enacted, the rule applied very broadly to
financial institutions and creditors, defined to include businesses or organizations
that regularly provide goods or services first and allow customers to pay later
(12 CFR 41.90). The Red Flags Program Clarification Act of 2010 (the Act) clarifies
the definition of “creditor” to exclude those that advance funds on behalf of a per-
son for expenses incidental to a service provided by the creditor to that person
(15 USCA 1681m(e)). The practical effect of the Act is to narrow application of the
red flags rule by excluding businesses that bill consumers for goods or services
that have already been provided.
Red flags are patterns, practices, or specific activities that indicate possible identity
theft. A red flag can be any of a number of things, including an application that
appears to have been forged or altered, use of an account that has been inactive
for a reasonably long time, or notification from a customer that he or she is not
receiving account statements.
Covered entities must develop an identity theft program that incorporates relevant
red flags. In addition to identifying red flags, the identity theft program should con-
tain procedures for detecting red flags and appropriate responses. An appropriate
response will depend on the degree of risk posed by the red flag and may involve
contacting the customer, changing passwords, or notifying law enforcement. Iden-
tity theft programs must be updated periodically to reflect changes in risks from
identity theft.
To assist covered entities in complying with the red flags rule, the FTC has pub-
lished Fighting Fraud with the Red Flags Rule: A How-To Guide for Business that can
be accessed at http://www.ftc.gov. (Note that the FTC will be amending this publi-
cation in light of the Clarification Act.) The FTC has also published a template with
an online form to assist organizations and businesses at low risk for identity theft; it
can be found at http://www.ftc.gov.


The FTC has stated that it would be unlikely to recommend bringing a law enforce-
ment action if the risk of identity theft is slight. Specifically, it would probably not
bring an action against entities that know their customers or clients individually,
perform services in or around their customers’ homes, or operate in sectors where
identity theft is rare and they have not themselves been the target of identity theft.
The FTC has addressed frequently asked questions about the red flags rule that can
be accessed at http://www.ftc.gov/bcp/edu.

Best Practice: Protecting Employees
From Identity Theft
While identity theft is becoming an increasingly common problem, there are steps
employers can take to help protect their business and employees from such an
invasion. When choosing the best alternative for protecting your employees and
your company from identity theft, consider the four types of protection available:
N Computer protection such as antivirus, antispyware, and wireless security
N Guidance on protecting against a variety of exposures of personal data from
shredding documents, to opting out of marketing databases, to tracking data in
Social Security, motor vehicle, medical, and financial databases
N Credit monitoring at varying levels of frequency, sometimes with alert services
in the event of credit inquiries or changes
N Insurance coverage, sometimes including assistance with identity recovery
activities
Specifically for computer security, there are a number of things employers and
employees can do to prevent identity theft:
N Be aware of “phishing scams” or fraudulent e-mails and websites that imper-
sonate legitimate businesses and trick employees into providing personal
information.
N Avoid clicking on links to websites provided in e-mails.
N Install computer security software.
N Use discretion when opening e-mail attachments.
N Share e-mail addresses selectively.
N Permanently erase hard drives before discarding computers.
N Use passwords.
N Provide personal information only if the website is secure.
N Use caution when instant messaging.

Protection as an Employee Benefit
One solution that provides an affirmative defense against potential fines, fees, and
lawsuits is to offer some sort of identity theft protection as an employee benefit. An
employer can choose whether to pay for this benefit. The key is to make the protec-
tion available and have a mandatory employee meeting on identity theft and the
protection you are making available, similar to what most employers do for health
insurance.

Breach of Security
In order to stem the tide of identity theft in the workplace and elsewhere, many
state Legislatures have passed so-called “breach of security” laws covering employ-
ers and other organizations that maintain unencrypted individual personal infor-
mation such as Social Security numbers, driver’s license numbers, state
identification card numbers, account numbers, credit card numbers, or debit card
numbers.
Breach of security laws dictate that organizations that gather and store such infor-
mation on computer systems must give notice of any unauthorized access of the
computer security system protecting unencrypted personal information. Generally,
notice must be given in the most expedient time possible in writing or by elec-
tronic notice or conspicuous posting.

Best Practice: Preventing Security Breaches
Employers of all sizes should take steps to protect their computer networks from
unauthorized access, and there are a number of measures they can take in order
to prevent security breaches. For example, employers can:
N Create an incident response team, often called a Computer Emergency
Response Team (CERT), which is available around the clock and includes
information technology personnel, legal counsel, public relations specialists,
and employees that can address customer relations issues.
N Determine what and where personal information is collected and maintained
and the security risks to the information.
N Require service providers and business partners that handle personal informa-
tion to follow your organization’s security policies.
N Collect the least amount of personal information possible.
N Use technology that can detect unauthorized access to personal information.
N Develop a record retention policy to maintain necessary documents and
destroy those that are no longer needed in a secure manner.
N Encrypt personal information that is stored electronically.
N Develop a policy to protect the security of unencrypted electronic information
and physical records.
N Have a preemptive emergency response plan that identifies whom to contact
in the event of a breach, what steps will be taken to investigate and contain a
breach, steps to ensure that any vulnerabilities in the system have been elimi-
nated, and procedures for communicating with third parties.
N Conduct training for employees on security issues.
Security breaches can be extremely harmful to employers not only because of
the legal implications but also because of the potential for loss of reputation, cus-
tomer trust and loyalty, and a drop in stock prices. While no policy can completely
insulate an employer from security breaches, measures can be taken after a breach
to limit the damage. A swift and effective response to a security breach is a vital


component of restoring an employer’s reputation and complying with the legal
obligations imposed by state law.
Employers should take into account these tips whether or not their state has
enacted a breach of security law:
N Instead of trying to cover up a breach, report it in a timely manner and offer
help to affected individuals.
N Investigate the breach and determine its scope.
N Contact law enforcement officials.
N Determine the organization’s notice obligations under applicable state law and
prepare the required notice.
N Contact CERT immediately.
N Have the employee(s) that detected the possible breach take notes on what
they observed.
N Notify upper management via telephone or in person rather than e-mail.
N Notify employees of a possible breach on need-to-know basis.
N Contact legal counsel or the legal department.
N Contact public relations specialists, if necessary.
N Follow up after the breach by conducting meetings and briefings, taking appro-
priate remedial action, and improving your security policy, if necessary, to pre-
vent future breaches.
As mentioned, many states have laws that mandate what employers must do when
a security breach occurs.

Employers’ Private Information
Employers also have an interest in maintaining the privacy of certain information,
such as trade secrets, customer lists, and other proprietary information. Carefully
drafted noncompete and nonsolicitation agreements can help protect the privacy
of such information and provide employers with a legal cause of action in case an
employee or former employee violates such an agreement.
Additionally, the federal Computer Fraud and Abuse Act (CFAA), a criminal statute
that was originally enacted to prevent unauthorized access to government com-
puters and to deter hackers, has been used by employers in suits against employ-
ees for, among other things, breach of noncompete agreements and
misappropriation of trade secrets (18 USC Sec. 1130). The CFAA allows a private
right of action when anyone furthers a fraud or obtains anything of value by
accessing a computer without authorization or by exceeding authorized access.
Note that these cases have met with mixed success, as courts are split on whether
the CFAA applies when an employee misappropriates information from a com-
pany-owned computer.


#10 Communications

In most instances, when employees are asked what they like least about their jobs,
they will cite a problem with communication. In fact, in BLR’s National Employee
Attitudes Survey (NEAS), participating organizations across the board were rated
lowest on questions related to communication, while at the same time, employees
who took the survey said communication was very important to them. Because
communication is a very important factor in employee satisfaction and engage-
ment, making sure the right information is communicated effectively is very impor-
tant to Human Resources professionals and managers.
First, it is important to understand what types of information employees feel they
aren’t getting. It might be that employees don’t have a good understanding of what
is expected of them or how they fit in the organization. In other cases, it might be
that management does not provide employees with information about how the
organization is doing or the direction in which it is heading.
Employees might feel they aren’t well compensated because they don’t have any
information on the value of benefits and their total compensation package. They
might feel they are not being acknowledged for their hard work. Another problem
area related to communication is how conflict is handled in the workplace, which
requires a unique set of communication skills.

Benefits of Good Communication
Communication is the process by which people create and share information
and ideas with one another to reach mutual understanding and get things done.
Effective communication is the foundation of positive and cooperative working
relationships. Good communication benefits the workplace in many ways, including:
N Improving the flow of vital information
N Improving employee morale by making sure employees know what is
expected and what the rewards are for a job well done
N Serving as the basis of effective teamwork
N Ensuring accountability in a department because all employees know who’s
responsible for what
N Providing greater consistency, because all employees have gotten the same
messages about procedures and work rules
N Leading to better quality because mistakes are avoided
N Improving productivity

Causes of Ineffective Communication
Unfortunately, workplace communication isn’t always effective. In fact, employee
satisfaction surveys consistently rank communication as one of the weakest areas
in most organizations. There are numerous obstacles that can cause communica-
tion to break down, including:


N Too many links in the communication chain causing messages to quickly
become distorted
N Too many messages communicated at once
N Confusing or ambiguous messages resulting in the receiver of a message
understanding the communication differently from what was intended
N Unclear expectations causing the communicator to be unpleasantly surprised
by the results
N Incomplete communication by managers who do not take the time to listen
carefully to the response
N Failure to consider the audience

Encouraging Employees to Communicate Better
Even with the availability of technology, communication begins with interaction
among people. Employees, from the top down, need to focus on communicating
workplace issues, concerns, changes, advances, and other information to one
another. Employees feel empowered when they are “in the know,” and this helps
enhance overall employee morale. There are a few ways to focus your employees’
energy on improving communications:
N Spread the word about the company’s efforts to improve communications, and
obtain regular feedback and ideas from employees.
N Audit current communication successes and shortfalls.
N Put together a team to work on improving employee communications.
N Create a plan to improve communications in your company and periodically
measure whether you have succeeded.
N Train managers and executives to be better communicators.

Tools for Better Communicating
It is important to consider your audience when you determine what communica-
tion tools you will use to communicate a certain piece of information. Do all
of your employees have access to e-mail? Are all of your employees on-site? Do
some of your employees work only on specific days? Do some of your employees
have jobs on the line that prevent them from attending meetings? Keeping these
things in mind, there are a variety of methods for enhancing communication in
the workplace.

Intranet
A company intranet is a great place for posting information on a variety of topics
for employees, particularly if most employees have a computer. For those employ-
ees without a computer, consider having one or a few computers, depending on
the number of employees without computers, centrally located and available for
employees to check the intranet.


Company Newsletter
Company newsletters are a great way to communicate changes, successes, and
important information to your employees. Traditionally, print newsletters are still
used, but more and more companies are leaning toward electronic newsletters
to either replace or supplement their print newsletters. Electronic newsletters are
less expensive and information can be dispensed in almost real time if needed.
Newsletters can be published daily, weekly, monthly, etc. Once again, it is important
to make sure all employees have access to newsletters distributed electronically.

Meetings
Meetings are an effective way to bring employees face-to-face, which is particularly
appreciated when the news is good and the purpose of the meeting is to show
employees are valued. Meetings are also a good forum for allowing employee
questions or discussion on a topic and for obtaining employee thoughts, concerns,
and ideas. Meetings can be companywide, or held at the department, team, or
individual level, depending on the nature of the information to be communicated.
Meetings can be a difficult method of communication when certain employees
are unable to leave their post—for example, employees working on an assembly
line or on a customer service hotline.

Telephone and Conference Calls
Telephones and conference calls are effective tools for communicating with indi-
viduals or groups of employees who are not present at the worksite. If materials or
printed information will be distributed at a meeting, arrangements will have to be
made to ensure access to the material for those participating by phone.

Web Conferencing and Webinars
Web conferencing and webinars allow employees to hold live meetings or presen-
tations over the Internet. Employees can sit at their computers at different office
locations and attend a Web conference. This type of conference can be very
effective when members of a team are working at different locations or for those
employees who telecommute.

E-Mail
E-mail is an easy way to disperse information to a large group of people at once.
Unfortunately, the overuse of e-mail can make employees feel isolated, lacking
face-to-face contact. In addition, many people consider e-mail to be a casual form
of communication and don’t take the time to make sure the information they
intend to convey is actually conveyed. Often, a short, succinct e-mail is interpreted
by the reader as a sign that the sender is unhappy. Because neither the sender nor
the recipient of the e-mail can see or hear the other, there are no cues that would
help them interpret the message. For this reason, the sender of an e-mail must take
care to consider how the message might be received and whether it is better deliv-
ered in person or by telephone.
E-mail is a form of written communication and should be written with the same
care as a memo. E-mails are stored on company computer systems, and once sent,
the sender has no control over where they are forwarded. As a result, an e-mail
should be considered a permanent written record. This is much different from the
casual conversations people have face-to-face or over the phone.


Bulletin Boards
Well-organized and up-to-date bulletin boards are an effective, convenient, and
inexpensive way to communicate with employees, especially workers who do not
have access to a computer at their workstations. Whether or not an organization
provides separate bulletin boards for employees’ use, there should be a written
policy on the type of information that may be posted and who must approve any
information before it is posted.

Social Media
Social media, including blogs, podcasts, social networks, and wikis, can be used
to build community, gather feedback, and make updates more engaging. For
example, daily, weekly, or as-needed podcasts can provide a venue for managers
and executives to talk to their employees via the intranet. Employees can listen
to the podcasts from their computers. While social media can be a great way to
communicate with all employees at once, it shouldn’t be a complete substitute
for face-to-face communication.

Letters or Memos to Staff
Letters and memos to staff are a good way to document that a communication has
been made. It is important that the communication be very clear. An unclear mes-
sage provided in a letter or memo might leave employees feeling they have no way
to ask questions or clear up any concerns.

Employee Surveys
Employee surveys can be an effective and efficient way to obtain information from
a large group of employees. A well-written survey provides feedback on how
employees feel about the organization, their role in the organization, their compen-
sation and benefits, and communication at each level of the organization. For
larger organizations, it may be possible to look at and compare results for different
parts of the organization. In addition, conducting the survey year after year pro-
vides information on how management is doing in areas in which the survey
results showed improvement was needed.
One benefit of an employee survey is building a sense among employees that their
feedback is important. In order to make the survey successful, the management of
the organization must be prepared to share the results with employees and take
action as appropriate in response to employee concerns. Conducting a survey and
then leaving employees feeling as if they weren’t heard or that nothing is actually
going to be done in response to feedback obtained in the survey may actually
cause more harm to employee relations than good.

Best Practice: Avoid Scheduling Meetings on
Friday Afternoons or Monday Mornings
For offices that operate a Monday through Friday workweek, probably the worst
times to schedule meetings are Friday afternoon or Monday morning. On Friday
afternoon, everyone is thinking about the weekend. Action items or assignments
that come from the meeting may be forgotten or lose their meaning over the week-
end. Monday mornings are a time to adjust to being back to work after the


2 days off. Meetings scheduled first thing Monday morning give employees little or
no time other than the weekend for preparation.
Unless there is an absolute necessity, you will find your meeting to be more pro-
ductive if scheduled at times other than Friday afternoon or Monday morning.
Resist the temptation to squeeze that extra meeting into the week during less than
desirable times. Beyond scheduling, you should also know how to plan and lead a
focused, structured meeting.
Your employees will be able to do more productive things during weekend transi-
tion times.You may also find that you didn’t need to have a meeting after all. But
do keep the donuts and share them with everybody anyway!

Conclusion

We hope that you found the information contained in this report useful. BLR
strives to provide Human Resources professionals with practical and easy-to-
use information on a wide variety of topics. If you would like to see the complete
library of publications available through BLR, please visit our website at
www.blr.com or call our Customer Service Department at 800-727-5257.


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