Paragon Business Services HR Advisor August Newsletter

August 2012

Welcome

We hope you are enjoying the summer! We have spent the last several months working to update your HR Support Center. In just a few days, an exciting new interface will launch and allow you greater ease of use – including the ability to access the HR Support Center on most tablets or mobile devices. So, here’s to site enhancements and this final month of summer. Cheers!

HR Alerts

Medical Loss Ratio (MLR) Rebates. No later than August 1, 2012, insurance companies that do not satisfy Medical Loss Ratio (MLR) standards must provide their policyholders a rebate for the difference. The Patient Protection and Affordable Care Act (PPACA) requires health insurance companies to spend 80% – 85% of premium dollars on health insurance claims and clinical activities for improved healthcare quality.

OSHA Final Rule on Whistleblower Provisions. On July 10, 2012, the Occupational Safety and Health Association (OSHA) issued a final rule implementing the whistleblower provisions of the Consumer Products Safety Improvement Act (CPSIA). The provisions provide employees with protections against retaliation by employer manufacturers, private labelers, distributors, or retailers when an employee engages in one or more protected activity.

OSHA Heat Safety App. The Occupational and Safety Health Administration (OSHA) agency launched a new heat safety tool. The heat safety tool is a smartphone app which allows supervisors and workers to calculate the heat index for their worksite, displays risk levels to outdoor workers, and provides information on protective measures to reduce employee exposure to heat-related illness.

July 2012 HR Advisor Correction: Please note that the HR alert titled “Proposed Federal Minimum Wage Increase” had an incorrect political party reference. The alert should have read: “On June 6, 2012, Representative Jesse Jackson Jr. (Democrat) introduced the Catching Up to 1968 Act of 2012, a bill to raise the federal Fair Labor Standards Act (FLSA) minimum wage from $7.25 per hour to $10.00 per hour (beginning 60 days after enactment). The bill also proposes that the federal government increase the minimum wage each year based on inflation as measured by the federal Consumer Price Index (CPI). The bill would also increase the minimum wage for tipped employees to $5.50 an hour. Stay tuned for additional updates as they are released by the governing agencies. Currently, the status of the bill remains “Referred to Committee.”
The Implications of the U.S. Supreme Court Ruling on PPACA for Employers

On Thursday, June 28, 2012, the U.S. Supreme Court issued a ruling that essentially upheld the constitutionality of the Patient Protection and Affordable Care Act (PPACA), also known as the Health Care Reform Act.

As part of the ruling, the Supreme Court stated that Congress did not have the constitutional authority to mandate that everyone buy health coverage. They did, however, have authority to impose a tax if an individual did not comply with the mandate. Therefore, the individual mandate has been deemed constitutional by the Supreme Court if instituted as a tax. The employer-centered requirements were designed to support the individual mandate by making it easier for working Americans to obtain affordable healthcare. In addition, Congress can impose conditions on the states to receive federal funding for Medicaid coverage expansion, but may not threaten to remove any existing funding.

What does the High Court ruling mean for employers? The Act’s numerous provisions that impact employers remain intact. While some of the mandates already have been in effect, many more will become effective in 2013 and 2014. Employers sitting on the sidelines in anticipation of a complete repeal or significant changes to the PPACA must catch up in order to be compliant by 2014. Thus, employers must proceed with the Act’s provisions or prepare to pay penalties.

In terms of offering health insurance, PPACA identifies three employer categories – those with:

Fewer than 50 employees: “Small-size” employers do not need to provide employees health insurance coverage. On the other hand, if a small employer chooses to provide employee health coverage, starting in 2014, states are required to establish health insurance “exchanges” for employers who choose to provide health care to employees though a group health insurance policy.

50 – 199 employees: “Mid-size” employers must offer “affordable” health insurance coverage to their employees or be subject to penalties. If an employer chooses not to offer employee health coverage or offers an overly expensive coverage plan, then the employer will be subject to penalties.

200 or more employees: “Large-size” employers must automatically enroll all new employees in their health insurance plan beginning in 2014. If an employer chooses not to offer employee health coverage or offers an overly expensive coverage plan, then such employers also will be subject to penalties.

While further guidelines and explanations are expected from government agencies, immediate employer actions for the remainder of 2012 include, but are not limited to:

• Assessment of the Act’s effect on the business
• Determination of redistribution or usage of Medical Loss Ratio (MLR) rebates
• Distribution of Summaries of Benefits and Coverage (SBC) in time for the next open enrollment
• Reporting of group health plan coverage costs on 2012 Forms W-2
• Revisions to company cafeteria plans to reflect employee contribution limits on health care Flexible Spending Accounts (FSA)
• Stay tuned for more updates from the HR Support Center.

Question & Answer

Reference Checks

Q. We are considering hiring a new employee who was laid off from a previous employer (received severance package). We plan on contacting the former employer as a reference. Are we legally allowed to ask the former employer if the employee signed a non-compete agreement?

A. It is permissible to get all the information you can when conducting a reference/background check provided the information is not discriminatory nor will be used in a discriminatory manner. This type of information would be things related to protected classifications such as ethnicity, age, sexual orientation, etc. Determining whether the applicant is covered under a non-compete agreement that may hinder their ability to do the job with your organization certainly would be helpful and is permissible under the law. However, getting former employers to release information about their employees can be somewhat problematic in that many employers do not want to release anything except for hire date, separation date and position(s) held.
Unemployment Claims: Fighting to Winning

“You’re fired!” If you have ever said that to an employee (unless you are Donald Trump and filming the reality show “The Apprentice”), you should be prepared to pay for your now former employee’s unemployment claim. If an employee walks out and therefore terminates employment voluntarily, you may still be required to pay for unemployment. Confusing? You bet.

Terminations are part of the employment life-cycle. A voluntary termination results when an employee chooses to resign. An involuntary termination results when an employer fires, discharges, or lays off (due to budget, workforce reduction, or business closure issues) an employee.

If employers do involuntarily terminate, they should determine if unemployment benefit claims may apply and prepare to defend accordingly if the benefits are granted. Eligibility criteria impacts how unemployment benefits may be awarded. Some of the criteria for eligibility for unemployment benefits includes whether the terminated employee:

• Became unemployed through no fault of his or her own (e.g. job elimination or reduction in force)
• Earned sufficient wages with the company or during the claimant’s base year
• Is available for new work
• Is actively seeking work

An individual may become disqualified for unemployment benefits if he or she:

• Was fired for misconduct or a clear violation of company policy
• Quit without good cause (e.g. walking off the job because of a disagreement with a colleague)
• Returned back to the same job to work
• Turned down a suitable job offer during the unemployment period
• Participated in a strike or work stoppage caused by a labor dispute
• Received Social Security benefits, severance pay, workers’ compensation payments, state disability benefits, or a private pension
• Made false claims or omitted information on his or her unemployment claim

In addition, the weekly benefit amount is generally determined by the total wages paid to the employee by his or her employer(s) during the “base” period. The base period typically consists of a minimum amount of work completed within the last five quarters of a calendar year prior to the initial filing for benefits and the amount of earnings during the base period.

Sometimes, employers futilely try to avoid addressing unemployment insurance claims. Now, if you know the employee was discharged through no fault of his or her own, save some time and do not appeal the claim. In other situations, it may be worthwhile to appeal a claim when the employee was terminated for issues such as misconduct, policy violations, or a general unwillingness to perform work. The benefit to employers in defending the claim may result in the employer tax rate being lowered or not increased. Your employer unemployment tax rate is directly impacted by the number of successful claims charged to your account. If you do opt to dispute an unemployment claim, ensure you have gathered all records that may influence the denial or awarding of an unemployment claim, such as performance management evaluations, disciplinary notices/letters, individual complaints, investigation information (if theft, harassment, or workplace violence was an issue), witness statements if applicable, etc. Ensure all paperwork is also ready for the state unemployment agency in a timely manner. If paperwork is delayed, there is a chance the former employee may end up winning the battle by default or forfeiture.

Tool of the Month:

Benefits Compliance Guide

The Benefits Compliance Guide addresses regulatory requirements relating to current benefit items and issues employers should review for compliance with state and federal regulations. Some areas covered include:

• Summary Plan Description (SPD)
• Summary of Benefits and Coverage (SBC)
• Consolidated Omnibus Budget Reconciliation Act (COBRA)
• Family Medical Leave Act (FMLA)
• Employee Retirement Income Security Act (ERISA)
• And much more!

HRCast of the Month

Top 3 Action Items All Employers Must Do Now for PPACA

Out of all the health care reform provisions and requirements of the Patient Protection and Affordable Care Act (PPACA), what are the top three action items your company should focus on? This month’s HRCast explores this question and provides listeners with insightful answers and helpful tips.

On August 15th, be sure to visit the HR Support Center, and listen to this month’s HRCast to learn more.

HR Tip of the Month

Are you Prepared for an Emergency?

Emergencies and disasters can take various forms including violence at the workplace as demonstrated on July 20, 2012. In one of the deadliest mass shootings in recent U.S. history, a gunman entered a Denver-area theater during a crowded midnight movie screening and killed or injured numerous people. Our condolences go to all the victims as well as the families, friends and employers of the victims. Without warning, a disaster can strike and it is your responsibility to have a plan in place to protect your employees. Use the Workplace Evacuation Preparedness Checklist (available in the HR Support Center) to be proactive versus reactive in the case of an emergency.

Did you know?

92%

According to a Social Recruiting Survey conducted in June 2012, 92% of U.S. companies are using social networks and media to find talent in 2012, up from 78% five years ago. (Source: Jobvite)

Quote of the Month

“Management is efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall.”

-Stephen R. Covey

A Look Ahead

August 5:
Friendship Day

August 26:
Women’s Equality Day

Contact Us

Paragon Business Services, Inc.
7610 N Stemmons Frwy
Suite 600
Dallas, TX 75247

Additional Contacts
Phone: 866-444-4615
Fax: 214-951-1920

Legal Disclaimer: This message does not and is not intended to contain legal advice, and its contents do not constitute the practice of law or provision of legal counsel. The sender cannot be held legally accountable for actions related to its receipt.

Paragon Business Services HR Advisor July Newsletter

July 2012

Welcome

With half of 2012 in the books, we hope that your business has exceeded its first and second quarter goals. Midyear is a great time to review your company’s HR compliance strategy. Hopefully this edition of the HR Advisor will assist your management team in remaining abreast of important HR topics relevant to your business.

HR Alerts

U.S. Supreme Court Decides on Health Care Reform Act. On Thursday, June 28, 2012, the U.S. Supreme Court issued a ruling that upheld (except for sanctions related to Medicaid expansion) the constitutionality of the Patient Protection and Affordable Care Act (PPACA), also known as the Health Care Reform Act. The Act’s multiple provisions impacting employers remain intact, and many of the mandates become effective in 2013 and 2014. Thus, employers must proceed with implementation of the Act or prepare to pay penalties. Immediate employer actions for the remainder of 2012 include but are not limited to: assessment of the Act’s effect on the business; determination of redistribution or usage of Medical Loss Ratio (MLR) rebates; distribution of Summaries of Benefits and Coverage (SBC) in time for the next open enrollment; reporting of group health plan coverage costs on 2012 Forms W-2; and revisions to company cafeteria plans to reflect employee contribution limits on health care Flexible Spending Accounts (FSA). Stay tuned for more updates from the HR Support Center.

Federal Circuit Courts’ Stance on Hostile Work Environment. On June 4, 2012, the 11th U.S. Circuit Court of Appeals recognized a retaliatory hostile environment claim brought by two physicians who had filed Equal Employment Opportunity Commission (EEOC) claims against their employer, a VA hospital and a medical center (Gowski, et al v. Peake, et al). The 11th Circuit for the first time recognized a cause of action for retaliatory hostile work environment under the language contained in Title VII, and the EEOC’s own interpretation of the statute. Further, it found that prohibition of a retaliatory hostile environment is consistent with Title VII’s remedial goal of preventing supervisors from deterring protected conduct.

H-1B Cap Reached. As of June 11, 2012, the U.S. Citizenship and Immigration Services (USCIS) has announced it received enough H-1B cap-subject petitions to reach the annual 65,000 “regular cap” limit. USCIS will reject H-1B cap-subject petitions filed and received after June 11, 2012.

Employment Nondiscrimination Act. On June 12, 2012 the Senate Committee on Health, Education, Labor and Pensions (HELP) held a hearing to discuss the merits of the bipartisan Employment Non-Discrimination Act (ENDA). ENDA would create comprehensive employment based anti-discrimination protections for individuals based on their sexual orientation or gender identity.

New Deportation Rule. On June 15, 2012, President Obama announced an Executive Order that allows some undocumented youths to avoid deportation and receive work permits to remain in the United States (U.S.). Students in the U.S. who are in deportation proceedings or those who would have qualified for the Development, Relief, and Education for Alien Minors Act (DREAM Act) and have yet to come forward to Department of Homeland Security officials will not be deported and will be allowed to work in the United States. In addition, Secretary of Homeland Security Janet Napolitano announced young people who were brought to the United States as children through no fault of their own will be considered for relief from deportation, known as “deferred action.”

Employee Retirement Income Security Act (ERISA) Service Provider Fee Disclosures. Effective July 1, 2012, the final service provider fee disclosure regulations under ERISA Section 408(b)(2) must be met. These ERISA regulations are for both existing and new service arrangements. Under these regulations, Registered Investment Advisers (RIAs) and Broker Dealers (BDs) must disclose certain information to the responsible plan fiduciary, including services provided to the covered plan, fiduciary status, and direct and indirect compensation.

Form 5500 Record Keeping Requirements. As a reminder, under the Department of Labor’s (DOL) electronic filing regulations, plan administrators are required to keep a paper copy of the filed Form 5500 report, including schedules and attachments, in the plan’s records. The DOL stated a paper copy of the electronic filing receipt is not adequate in satisfying this requirement. The paper copy in the records must be a complete copy that is manually signed and dated.

The NLRB’s Social Media Policy Memorandum

On May 30, 2012, the National Labor Relations Board (NLRB) Acting General Counsel Lafe Solomon issued a memorandum regarding social media policies in the workplace. The General Counsel’s memorandum is applicable to both unionized and non-unionized work environments.

Section 7 of the National Labor Relations Act (NLRA) allows employees the right to form, join, or assist labor organizations and the right to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. In addition, even in union-free businesses, employee complaints about hours, pay, treatment, working conditions, etc. may not result in disciplinary action or termination under the NLRA. This section of the Act has important implications for employer social media policies, as delineated in the NLRB’s recent memo.

The NLRB’s memo covered seven social media policies published by various employers to demonstrate specific provisions that may be unlawful. Some of those social media policies are discussed here.
Policies concerning an employer’s attempt to protect confidential information may be unlawful.

• For example, a policy prohibiting employees from online discussions regarding “confidential guests, team members or company information” is unlawful because the policy could be shown as the employer prohibiting employees from disclosing information regarding their own terms and conditions of employment (which is a protected activity).

Policies that aim to show peaceful relations amongst staff may be unlawful.

• For example, a policy intended to reduce conflicts amongst employees (that may include controversial issues) can be unlawful depending on the topic. If the topic is about working conditions, it can be interpreted as inhibiting Section 7 rights, if employees are prohibited from discussing such matters (either verbally or in an online format).

Policies about employer image protections may be unlawful.

• For example, if the employer enforces a policy suggesting that employees are prohibited from commenting on legal matters, including pending litigation or disputes, the company may be unlawfully restricting employee communications. In addition, if an employer restricts which employees are permitted to discuss company information with the media, it may be unlawful. The NLRB stated that: “[e]mployees have a protected right to seek help from third parties regarding their working conditions,” so employers may not restrict social media comments to non-public forums only.

The social media policy that was approved by the NLRB allows for employees to band together to discuss or improve working conditions. Businesses are encouraged to adopt and/or modify the NLRB’s social media guidelines. According to the NLRB, it is still lawful to have a policy that bans harassment, bullying, discrimination, and retaliation using social media platforms. Another lawful provision in the memo stated that, “information regarding the development of systems, processes, products, know-how, technology, internal reports, procedures, or other internal business-related communications” is permissible.

Although the NLRB’s new social media policy guidelines are somewhat restrictive, it is still important to publish a policy. It is critically important that businesses in certain regulated industries (medical, financial, etc.) adopt social media policies that comply with industry regulations, such as HIPAA. One final suggestion is to include a “saving clause” in the company’s social media policy. A “saving clause” is a statement such as, “nothing in this policy is intended to infringe upon Section 7 rights.” Such a clause may partially shield employers from liability.

Based on the number of violations outlined in the memorandum, many employers are not in compliance with the NLRB guidelines for social media policies. It is extremely important to comply in this area, as the NLRB’s interpretations seem to be supported by the US court system. It is important to have your social media policy reviewed by your HR Professional or your legal counsel to ensure it does not violate an employee’s Section 7 rights. It is also highly recommended for employers to contact a HR Professional or legal counsel before disciplining or terminating an employee due to his or her social media activities.

Question & Answer

Date of Birth Questions

Q. Is it legal to ask for the date of birth before making an offer of employment?

A. It is permissible to ask a job applicant for his or her date of birth prior to hire. However, an employer who asks this question would have to be able to defend themselves if charged with a discrimination claim and explain how the birth date is relevant to the job. If an employer has a job requirement to know if a job applicant is 18 or 21 for job related purposes (such as serving alcohol), the question on the application or during the interview would be, “Are you at least 18 or 21 years of age?” Age discrimination comes into play when an applicant/employee is over the age of 40. The birth date becomes irrelevant during the hiring process, but a minimum age can be a job requirement.

Summer Dress Codes: Too Hot for Compliance?

According to the May 2012 HR Support Center poll inquiring about spring and summer dress code policies, most businesses do not alter their dress code policies during these months. Out of all the respondents, 63% indicated no change during the spring and summer months from the company’s standard dress code, while 9% indicated that employees are not required to wear professional clothing during these months. There are several implications to be aware of in regards to workplace dress code policies in the summer.

• Health concerns (physical and mental stress). During the hot summer months, it is important to consider the health of employees who will be performing work outside or in a facility without air conditioning. The company may need to alter its dress code in order to reduce the physical stress of employees working outdoors, as physical stress can lead to reduced cognitive ability and heat-related injuries and illnesses. In addition, some employees may be protected under the American with Disabilities Act (ADA) which may require reasonable accommodations.
• Productivity levels (includes motivation). The productivity levels within the business may be reduced if employees are dressed in a manner that is distracting to themselves or others. Therefore, it is important to ensure that dress codes allow for maximum productivity. For example, if an employee is wearing a baseball cap during an office meeting, others may find that to be a distraction.
• Safety concerns (injury and accident prevention). There are several safety concerns to consider if dress codes are not properly enforced. Even in extreme temperatures, it is critical that employees wear all recommended and required safety equipment. For example, those in a construction field should not wear sandals; those in the medical field should avoid exposing unprotected skin and wearing loose accessories (such as jewelry) around hazardous chemicals, equipment/machinery (such as wheelchairs), and other things (i.e. syringes).
• Image/Professionalism. Even in the summer months, it is important that the company portray a professional business image. For example, allowing pilots to wear swim trunks could certainty result in decreases in customer confidence levels.

It is encouraged to write comprehensive policies that cover the business dress code. The management team must consider productivity, safety, and regulatory compliance when writing the dress code policy. It is vital to consider whether the dress code could create a charge of discrimination. A workplace dress code for summer months should not discriminate against members of a protected class under civil rights laws such as gender discrimination, religious discrimination and race discrimination. It is important to stay consistent for all exceptions to the policy and to apply consequences for all violators of the policy. Considering these factors will ensure the company’s dress code maximizes summer productivity and minimizes the potential for legal exposure.

Tool of the Month:

Employment Lifecycle Checklist

The employment lifecycle is a critical component for business success. Use the Employment Lifecycle Checklist to become organized and stay on top of your HR business needs related to employee relations. The employment lifecycle typically involves recruiting, hiring, orientation, training, advancement, coaching, disciplining, and terminating employees.

This checklist covers aspects such as:

• Employee communications
• Access protection
• Employment lifecycle stages
• And much more!

HRCast of the Month

Leveraging Mobile Technology to Your Company’s Advantage

How could you position mobile technology towards positive results for your company’s HR business needs? This month’s HRCast explores this question and provides listeners with insightful answers and helpful tips.

On July 15th, be sure to visit the HR Support Center, and listen to this month’s HRCast to learn more.

HR Tip of the Month

Tracking Hours Worked

It is the employer’s responsibility to track all non-exempt employees’ hours and pay accordingly. Employees may be required to use a time clock system or submit timesheets, but pay may not be withheld as penalty for missed punches or failure to submit a timesheet in a timely manner. However, the company may use its regular progressive disciplinary system when an employee fails to follow the company’s timekeeping procedures.

Did you know?

41%

According to the NACE 2012 Student Survey, approximately 41% of 2012 college graduates are using social media to help them land a job.

Quote of the Month

“Work joyfully and peacefully, knowing that right thoughts and right efforts will inevitably bring about right results.” ”

– James Allen

A Look Ahead

UV Safety Month

July 4:

Independence Day

July 22:
Parent’s Day

July 27:
Summer Olympics begin

First Day of Summer

Contact Us

Paragon Business Services, Inc.
7610 N Stemmons Frwy
Suite 600
Dallas, TX 75247

Additional Contacts
Phone: 866-444-4615
Fax: 214-951-1920

Legal Disclaimer: This message does not and is not intended to contain legal advice, and its contents do not constitute the practice of law or provision of legal counsel. The sender cannot be held legally accountable for actions related to its receipt.

June HR Advisor Newsletter

Welcome

We hope your summer is off to a bright and productive start.  As part of the recent upgrades to the HR Support Center, we hope you will take advantage of the following enhancements: the Wage and Hour Quick Guides section and the additional articles within the Knowledge section. Lastly, since June is National Safety Month, make sure you view the safety-related documents (i.e. checklists, guides, and forms) in the HR Support Center.

HR Alerts

New Pension Benefit Statements Rule Proposal. Expected to make an announcement in June 2012, the Employee Benefits Security Administration (EBSA) is working on a proposed Employee Retirement Income Security Act (ERISA) rule that would require the presentation of a participant’s accrued benefits as a lifetime income stream of benefit payments.

New Proposals on Employer Health Insurance Coverage. By June 11, 2012, the Internal Revenue Service (IRS) will accept comments about a new proposed ruling. The Centers for Medicare & Medicaid Services (CMS), Center for Consumer Information and Insurance Oversight (CCIIO), and the IRS released four documents related the Affordable Care Act (ACA) that address employer-provided group health insurance plan reporting requirements and the availability of premium tax credits to individuals and families.  The ACA makes tax credits available to help individuals pay insurance premiums, but these credits do not apply if the individual is eligible for employer-provided coverage that is both affordable (in terms of required employee contribution to premium payments) and provides “minimum value” (in terms of overall cost-sharing).

HHS New Medical Loss Ratio Reporting Requirement. The Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services (CMS) issued a final rule that imposes new reporting requirements on health insurance issuers that meet or exceed the applicable Medical Loss Ratio (MLR) standard for the 2011 reporting year. CMS requires issuers that meet or exceed the MLR standard to send a notice to policyholders that the issuer has met the minimum MLR standard for the 2011 reporting year. An issuer must provide the notice with the first plan document to enrollees on or after July 1, 2012.

Unemployed Applicants: The New Protected Class

In today’s economic times, a competitive job force embraces workers with various knowledge, skills, abilities, education, and experience levels. Hiring managers attempt to compare and contrast these items when determining the best job candidate for a specific position.  With respect to experience, many hiring managers consider long gaps in employment history on the resume or employment application to be a strike against a potential job candidate. However, due to the high levels of unemployment the country has experienced in the past few years, lawmakers are taking measures to ensure the job candidates who have experienced recent periods of unemployment are still considered viable candidates.

The Equal Employment Opportunity Commission (EEOC) is the agency that oversees discrimination in hiring practices. Some of the traditional protected classes include race, color, religion, national origin, age (40 and over), disability, military or veteran status, etc. Protected classes were developed from previous anti-discrimination laws such as the Civil Rights Act of 1964, Age Discrimination in Employment Act (ADEA), Equal Pay Act, Americans with Disabilities Act (ADA), and the Genetic Information Nondiscrimination Act (GINA).

On April 5, 2012, President Obama signed into law the JOBS Act (Jumpstart Our Business Startups) that is intended to prohibit employers from discriminating against job applicants because they are unemployed. Under the Act, it is “an unlawful employment practice” if a business with 15 or more employees refuses to hire a person “because of the individual’s status as unemployed.”  Unselected job applicants will have the right to file a complaint with the EEOC if they are disqualified from consideration due to a recent period of unemployment. The JOBS Act contains the “Fair Employment Opportunity Act of 2011” (FEOA) that treats unemployed job applicants as a protected class under Title VII. The FEOA would make it an unlawful employment practice for an employer or employment agency that:

Fails or refuses to consider or hire an individual based upon his or her status as unemployed.

Instructs an employment agency to disqualify an unemployed individual from consideration, screening, or referral for employment.

Refuses to consider or refer an unemployed individual for a job opportunity.

Publishes advertisements which indicate that unemployed individuals are disqualified or will not be considered for employment opportunities.

Employers are encouraged to look carefully at their hiring methods (especially when viewing recent gaps in employment history) and to assess the role an applicant’s unemployed status has on hiring decisions. There are several remedies that apply within the JOBS Act that include injunctive relief, reinstatement, lost wages, punitive damages, emotional distress damages, and reasonable attorney’s fees and costs. Employers need to use caution when inquiring into the reasons underlying an applicant’s current unemployment status. Remember, anything more than a minimal investigation into an applicant’s current status (i.e. unemployed) may be considered as an influencing factor in the hiring decision. This can expose the employer to liability if the individual is not ultimately considered or hired for a position.

Question & Answer

Direct Deposit

Q. How can we encourage more of our employees to use direct deposit?

A. Although some state laws indicate employers cannot “require” direct deposit, employers should still inform employees about the benefits of using direct deposit options. Some benefits include:

• Convenience and time savings. Reduces travel time to go to the bank to cash the check.
• Safety and security. It reduces issues around lost, stolen or misplaced checks.
• Reliability. The money will be available the morning of the payment or sooner.
• Money management. Helps with managing money into different accounts (i.e. savings plan).
• Eco-friendly. It helps the environment by electing a “paperless” option, which saves trees.

Job Reference Immunity Laws – Who’s in Favor?

Many businesses have initiated “Job Reference” policies restricting the nature of information that may be provided about current and former employees to third parties.  While it is at times tempting to feel obligated to provide detailed information regarding a former employee’s performance in an effort to help the prospective employer, doing so may expose the company to some liability. Former employees have successfully sued their past employers for libel, slander, defamation, or negligent misrepresentation arising out of job references. Therefore, it is recommend proceeding with caution with job references and verifications in order to reduce the company’s exposure.

A fairly common company policy is to only release information that is completely objective in nature, such as the former employee’s dates of employment and job title. If the prospective employer would like additional information (such as salary information), generally employers require the prospective employer to send a written request for such information that includes the former employee’s written authorization to release the information. Company policies should prohibit the release of information that is subjective in nature.

While the “less is more” approach has been taken by most employers, some HR Professionals recommend taking a more “need to know” approach. The premise behind this approach is that the company’s failure to provide critical information may in fact expose the company to liability.  For example, if a current employer gives a reference check with limited information about an employee, and is aware that the employee committed a work-related crime (such as employee theft), a court could argue that the former employer had an obligation to disclose that information. This would apply if the employer was asked specific questions such as, ”Is this employee rehireable?” Or, “Has this employee committed a crime at your work site?” There may be some ethical obligation for a former employer to disclose certain information. For example, if an employer states a former preschool teacher was an excellent employee and never had performance issues, yet chose not to mention this same teacher was convicted of molesting a student, the company may have mislead the inquiring prospective employer. Therefore, the goal is to ensure reference checks are generally neutral; unless extenuating circumstances are present.

Many states have adopted some type of Reference Immunity Laws that ensure employers are protected who opt to provide reference checks. The state laws vary considerably in how they “limit” information to be disclosed by former employers. For example,Californialimits immunity to the disclosure of “job performance” information to be stated in an objective or subject manner.Marylandsuggests employers acting in good faith may not be held liable for disclosing to a prospective employer any job information about job performance or the reason for the termination of employment. Since there are several states with reference immunity laws, it is recommended to check your state laws or consult with a HR Professional.  Remember, if a reference check is conducted on behalf of a federal, state or regulatory authority, employers may not be held liable for any information that is requested/required or provided to the agency. Employers who knowingly disclose information that is false or misleading are not protected under these laws.

It is always a best practice to document employee actions, act in good faith, exercise restraint and always obtain written consent from the applicant. Another tip is to insert a waiver in a departing employee’s severance package releasing the business from all claims based on the voluntary disclosure of information about the employee to a third party. Reference immunity laws essentially protect employers from civil liability if they provide good-faith references or negative truthful information regarding former employees. Therefore, both employers and employees may or may not be in favor of this law.

Tool of the Month:

Risk Management Guide

Risk management consists of (1) identifying and analyzing the events that may cause loss to a business and (2) choosing the best ways to address potentials for such loss.

The Risk Management Guide will help provide you information regarding:

Proprietary Information Protection

• General Crime Prevention
• Insurance Considerations

Download the Risk Management Guide today from the HR Support Center under the Essentials section.

HRCast of the Month

Smartphone Apps Employees Might Use against Employers

Which smartphone tools are your employees downloading about their workplace rights that can be used against their companies? This month’s HRCast explores this question and provides listeners with insightful answers and helpful tips.

On June 15th, be sure to visit the HR Support Center, and listen to this month’s HRCast to learn more.

HR Tip of the Month

Verbal Warnings

As a best practice, managers should document verbal warnings. While a copy does not necessarily need to be provided to the employee, it should include details of how the employee was made aware of the action. It is also recommended for managers to keep a detailed copy of the verbal warning describing when, where and why a warning was issued in the Manager’s files. Such documentation may prove helpful if the company is ever required to defend an unemployment or discrimination claim

Did you know?

40%

According to a January 2012 Document Security Survey, 40% of adults believe it is never acceptable to take confidential company information out of the office, but others think it is acceptable to do so under certain circumstances, including when the boss says it is okay, to finish a late-night project from home instead of at the office, to work over the weekend or while on vacation, when the information is about themselves, when the manager will not find out, and when family or friends promise to keep it confidential. (Source: FileTrek).

Quote of the Month

“If you pick the right people and give them the opportunity to spread their wings—and put compensation as a carrier behind it—you almost don’t have to manage them.”

– Jack Welch

A Look Ahead

June:

National Safety Month

June 14:

Flag Day

June 17:

Father’s Day

June 19:

Juneteenth

June 20:

First Day of Summer

Contact Us

Paragon Business Services, Inc.
7610 N Stemmons Frwy
Suite 600
Dallas, TX 75247

Additional Contacts
Phone: 866-444-4615
Fax: 214-951-1920

May HR Advisor Newsletter

May 2012

Welcome

We have introduced new updates within your HR Support Center. Please take a moment to browse around the various content areas to make use of the handy tools we have available.

HR Alerts

DOL Extends Comment Period for Proposed FMLA Regulations. On February 15, 2012, the Department of Labor (DOL) published proposed regulations to the Family and Medical Leave Act (FMLA) in three specific areas: Military Family Leave, Flight Crew FMLA Eligibility, and the manner in which employers calculate increments of FMLA leave. Public comments originally were due by April 16, 2012. However, the DOL announced that it is extending the due date for comments to April 30, 2012.

OSHA GHS Final Rule. Effective May 25, 2012, the Occupational Safety and Health Administration (OSHA) announced that the final rule for Globally Harmonized System (GHS) of Classification and Labeling of Chemicals will become law. The new GHS rule will be added to OSHA’s existing hazard communication standard, or worker right-to-know law. The GHS is a logical and comprehensive approach to defining health, physical and environmental hazards of chemicals, creating classification processes that use available data on chemicals for comparison with the defined hazard criteria, and communicating hazard information.

Blocked NLRA Poster Requirement Update. A District of Columbia (D.C.) federal court has blocked the actions of the National Labor Relations Board (NLRB), which last year imposed a new requirement that employers post a notice to employees informing them of their rights under the National Labor Relations Act (NLRA). This new NLRB poster requirement was supposed to take effect November 14, 2011, but that deadline was later delayed until January 31, 2012, and then again delayed until April 30, 2012. The most recent delay resulted from the D.C. court’s request to postpone the effective date pending a legal challenge to the new requirement. The court concluded that the NLRB could not make an employer’s failure to post an unfair labor practice, but rather the NLRB would have to show that the failure to post actually interfered with employee NLRA rights. However, the NLRB encourages employers to have the poster displayed as a best practice regardless of what the finalized decision will be (expected on or before September 2012). To obtain further information, contact a HR Professional.

Workplace Political Expressions

According to the HR Support Center March 2012 poll, 78% of respondents indicated “No” to the question posed of: “Does your company currently have a policy or practice that permits or prohibits political related activities in the workplace?” Due to recent “occupy” movements, legislative banter and election promotions, political activities can be effectively addressed with the implementation of well-prepared policies.

First of all, employers can limit political activity in the workplace. The First Amendment does not entitle individuals (employees included) to express their political views whenever and wherever they wish. Those in private-sector companies have no constitutional right to free speech, and can be terminated for expressing political beliefs as long as their dismissal does not violate some other federal or state law.

Political expressions encompass various (verbal or non-verbal) activities or inferences exchanged to support an idea, person, or thing. Often, there are pros and cons that come with political expressions presented in the workplace that can be treated as permitted or prohibited activities, which may or may not disrupt the workflow as well. Also, federal and state regulations further provide guidance for employers to consider when developing a policy.

The National Labor Relations Act (NLRA) describes federal regulations when an activity may be considered “protected” under law. Three rules apply to determine whether an activity (e.g. political) is protected under the NLRA:

Political activity occurs during non-working time and off the employer’s premises.

On-duty political support related to a specifically identified employment concern (e.g. Health Care Reform) is subject to restrictions imposed by lawful work rules.

Leaving or stopping work to engage in political support may be subject to restrictions imposed by lawful work rules. An employer cannot discipline or discharge employees who leave work without permission if their walkout is for the purpose of obtaining some improvement in their own working conditions from their employer who has control.

The above-noted activities can be viewed to be political in nature and permitted for employees to engage in since the NLRA states employees have the right to engage in concerted activity. However, union-related logos represented on campaign materials sometimes may or may not be prohibited in regards to business practices (such as safety and personal protective equipment).

In addition, state laws also make it illegal to discriminate on the basis of an employee’s political activity or affiliation. Employers have the right and responsibility to ensure that work environments are safe, and free of hostility aimed at employees because of protected classification such as race or gender. For example, in 2012 several political issues covered in the current media such as gay marriage and immigration reform, impact protected worker classes of race, religion and sex. Thus, it is vital to develop political expression policies to help manage the workplace.

Employer policies and best practices should:

Prohibit political statements while working and interacting with customers, visitors, etc.

Enforce dress codes on employees regarding pro-candidate items attire (e.g. buttons, pins, ribbons, clothing), that affect business.

Restrict access to social media and internet programs (email).

Prohibit political fundraising or informational meetings within the workplace, as part of “no solicitation/no distribution” rules.

Discipline employees for leaving work to attend a rally or other political event (as opposed to allowing for voting time leave).

Train supervisors and managers on the company’s policy and what steps to take if they hear or observe inappropriate workplace political debates that become intense.

Although there are some companies that by the very nature of their businesses are politically involved in campaigns and voter registration drives, many employers prefer to keep politics away from business relations and practices. Many courts uphold restrictions but only on conduct that is unlawful or demonstrably harmful to the employer’s legitimate business interests. Especially during an election year, it is in every employer’s interest to develop and enforce a political expression policy to ensure workplace productivity to be its finest and anti-discrimination to be at its highest.

Question & Answer

Electronic Signature

Q. What constitutes a legal electronic signature on our federal and state employment forms

A. An electronic signature is valid when the identity of the person has been confirmed on the document. In most cases, an electronic signature is facilitated through a third party-software that uses encryption in collecting signatures. Both federal and state laws permit the use of electronic/digital signatures, and they are considered exactly the same as a hand signed document. In fact the federal government moved to electronic signatures for contracts several years ago to improve efficiency. For this reason, there is no employment law prohibiting electronic files or signatures in terms of paperwork. The only word of caution is to ensure the technology meets the requirements described above. Just as you would verify an employee’s identity for I-9 signatures in person, the same process is required when accepting digital signatures. The only difference is how you collect the employee’s signature. Since some e-mail addresses are used to facilitate signatures, it is important to confirm the address is valid to avoid identity misunderstandings. There are no federal programs that prohibit electronic signatures for employment documents.

EEOC andADAStances on High School Diplomas for Hiring

In today’s competitive job market, employers look to hire well-qualified, diverse, talented, skilled, experienced, and educated candidates for job positions. Often, job postings and requirements specify minimum qualifications for prospective candidates to satisfy in order to be considered. Many employers are aware of the risk of discrimination claims affecting those from protected classes, and education background is one hiring criterion that is easily taken for granted.

Specifically, the Equal Employment Opportunity Commission (EEOC) addressed the issue of whether or not requiring a high school diploma is viewed as discriminatory. In a November 2011 discussion letter, the EEOC stated that requiring a high school diploma may violate the Americans with Disabilities Act (ADA) regulations if it is determined an individual cannot obtain a diploma due to a learning disability. However, if the individual applied for a reasonable accommodation, then the employer would need to consider that prospective job candidate, as long as he or she met the other minimum qualifications specified by the employer. A reasonable accommodation would allow the individual to perform the essential functions of the job.

The employer could also consider relevant work history and/or allow the applicant to demonstrate an ability to do the job’s essential functions during the application process. On the other hand, if there was a job-related need and business-need to have high school diploma (e.g. as pre-requisite), then the employer may require this from applicants.

In addition, if the employer is choosing from amongst multiple applicants, it may still choose the most qualified applicant and not be required to select the applicant with a disability. The employer should consider if a different applicant had applied without a learning disability (who did not have a high school diploma) versus someone who applied with a learning disability (who did not have a high school diploma). To provide further clarification, while theADAprotects job applicants whose disability made it impossible to obtain a diploma, it would not protect a job applicant who consciously chose not to finish this level of schooling.

Therefore, the next time your company is looking to fill in a vacancy, double check the verbiage on the job description and posting, as well as revisit your hiring practices. Be sure to understand the implications of the EEOC andADAregulations, especially if you require a certain educational background from job applicants.

Tool of the Month:

Wage & Hour Quick Guide

The Wage and Hour Quick Guide puts key points regarding federal wage and hour laws at easily accessible reference. Every employer, regardless of company size, must comply with basic employment laws that regulate wage and hour factors. At a time when litigation and agency investigations are ramping up, be sure to get a good grasp of fundamental wage and hour information and tools, such as:

• Convenient Checklists
• Top Employer Tips
• Business, State, and Federal Forms
• Checklists
• Related Articles

Take a moment today to check out the new Wage and Hour Quick Guide section in your HR Support Center.

HR Cast of the Month

Increased FMLA Enforcement Compliance is Coming

The U.S. Department of Labor’s proposed FY 2013 budget would allocate $6.4 million to hire additional investigators to enforce employment law provisions such as those under the Family and Medical Leave Act. This month’s HRCast explores the implications and provides listeners with insightful answers and helpful tips.

On May 15th, be sure to visit the HR Support Center, and listen to this month’s HRCast to learn more.

HR Tip of the Month

Safety Training Program

Various state and federal laws will specify which training programs are required to be conducted in your workplace. Employers should consider providing necessary and adequate training ensuring concepts are understood and transferred from the training to the workplace, and retaining safety training records as required by law or best practices.

Did you know?

15%

 According to the Society of Human Resources Management (SHRM) Human Capital Benchmarking database, the annual employee turnover rate averages 15% across all industries (SHRM HR Magazine).

Quote of the Month

“In the business world, everyone is paid in two coins: cash and experience. Take the experience first; the cash will come later.”

– Harold Geneen

A Look Ahead

May 1:

May Day

May 5:

Cinco De Mayo

May 9:

National Receptionist Day

May 13:

Mother’s Day

May 19:

Armed Forces Day

May 28:

Memorial Day (observed)

Contact Us

Paragon Business Services, Inc.

7610N StemmonsFrwy

Suite600

Dallas,TX75247

Additional Contacts

Phone: 866-444-4615

Fax: 214-951-1920

April HR Advisor Newsletter

April 2012

Welcome

Spring is in the air! We encourage you to continue exploring your HR Support Center to stay on top of your HR responsibilities and management needs.

HR Alerts

OSHA Summary Posting. The Occupational Safety and Health Administration (OSHA) requires certain employers to post the OSHA Form 300A in a conspicuous workplace location from February 1, 2012 through April 30, 2012. This form is a summary of the total number of job-related injuries and illnesses that occurred in 2011. Employers with ten or fewer employees during all of the last calendar year (2011) or businesses that are classified in a specific low-hazard industry are generally not required to post OSHA Form 300A. However, an employer subjected to this requirement must post OSHA Form 300A even if the employer had no reportable injuries/illnesses in the prior year. In addition to the posting requirement, the employer must provide a copy of the report to any employee with no fixed work site or no access to the posting location.

Record-Keeping Requirement Extensions to GINA. In a final rule published by the Equal Employment Opportunity Commission (EEOC) on February 3, 2012, the agency extended the record-keeping requirements imposed under Title VII and the Americans with Disabilities Act (ADA) to entities covered by Title II of the Genetic Information Nondiscrimination Act of 2008 (GINA). This rule takes effect April 3, 2012 and while it does not mandate that employers create employment records, it simply requires employers to retain the records they do create. First, any personnel or employment record made or kept by an employer must be preserved by the employer for a period of one year from the date created or the personnel action involved, whichever occurs later. Second, any records pertaining to a filed charge of discrimination or an action brought by the EEOC or the US Attorney General under GINA must be retained by the employer until the final disposition of the charge or action.

FMLA Leave Calculation and Employee Reinstatement. The U.S. Department of Labor (DOL) has proposed a rule change that affects how employers calculate leave time under the Family and Medical Leave Act (FMLA) and how employees are to be reinstated after FMLA leave. If the proposed rule is finalized, employers will be required to calculate FMLA leave using the shortest increments they use to track work time. The public comment period for the rule change is set to close on or before April 16, 2012.

FMLA Proposed Rule for Military Leave. The Department of Labor (DOL), Wage and Hour Division has proposed to revise certain regulations of the Family and Medical Leave Act (FMLA), primarily to implement recent statutory amendments to the Act. The Notice of Proposed Rulemaking (NPRM) set forth regulations to implement amendments to the military leave provisions of the FMLA made by the National Defense Authorization Act for Fiscal Year 2010. This extends the availability of FMLA leave to family of service members of the Regular Armed Forces for qualifying exigencies. Public comments must be received on or before April 16, 2012.

IRS Tax Filing Deadline. The Internal Revenue Service (IRS) tax return filing deadline is April 17, 2012 for 2011 tax forms.

NLRA Posting Requirement. As a reminder, the National Labor Relations Board (NLRB) has issued a Final Rule that requires employers to notify employees of their rights under the National Labor Relations Act (NLRA). Private-sector employers, including labor organizations, are required to post the NLRA employee rights notice where other workplace notices are typically posted on or before April 30, 2012.

Proactive Prevention Against Workplace Harassment

For years, the U.S. Equal Employment Opportunity Commission (EEOC) and the US Supreme Court have strongly encouraged employers to establish harassment prevention training and have punished certain employers who fail to educate their employees. Several states (e.g. California, Connecticut, and Maine) require harassment education and make it unlawful for failure to train. All companies – big and small – must understand the definition of harassment, recognize the applicable mandatory training provisions, and ensure effective delivery of programs to protect their businesses.

A few employers generally understand the basics of what is considered workplace harassment, but many often neglect or tend to forget that discrimination plays a significant role. According to the EEOC, unlawful harassment is a form of discrimination that can violate one or more federal statutes, such as Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967 (ADEA) and the Americans with Disabilities Act of 1990 (ADA). Workplace harassment and discrimination can relate to each other because both may involve unwelcome verbal or physical conduct and behaviors often associated with protected classes including race, color, religion, sex, sexual orientation, national origin, ethnicity, age, and disability. Harassment may result from internal sources (e.g. employees and managers) or external sources (e.g. customers, vendors, and visitors to the workplace).

Examples of workplace harassment include:

Use of derogatory or mockery words encompassing skin color, religion, gender, age, and stereotypes.
Body language (e.g. profane gestures) and materials (e.g. explicit photos) considered offensive.
Insulting inferences or sexual references about an individual’s appearance (e.g. body parts or clothing attire).
An employer can be held liable for harassment by a supervisor that results in negative employment actions such as termination, failure to promote or hire, and loss of wages. In 2011, the EEOC stated 16.3% of charges were filed by males regarding sexual harassment. Employers having any knowledge about harassment (even alleged) and failing to take prompt and appropriate corrective action, can be held liable for harassment by non-supervisory employees or non-employees of whom it has oversight responsibilities (e.g. independent contractors or customers on the premises). If a complaint is filed with the EEOC, a determination as to whether the harassment is severe or pervasive enough to be deemed illegal is made on a case-by-case basis.

Prevention is the best tool to decrease or eliminate harassment in the workplace. Take proactive (and documented) steps to prevent and correct prohibited harassment prior to it becoming pervasive or unlawful. Clearly communicate to employees that unwelcome harassing conduct will not be tolerated. In particular, provide anti-harassment training to all managers and employees on a regular basis. Determine if the state you do business in, requires sexual harassment training. Three states (California, Connecticut, and Maine) currently require sexual harassment training to be provided for supervisory employees according to company size and other factors.

Employers should strive to create an environment in which employees feel free to raise concerns and are confident that those concerns will be addressed. Therefore, minimize your company’s liabilities by protecting your business against law suits and preventing harassment in the workplace by consistently communicating and educating all of your employees and supervisors.

Question & Answer

Employee files

Q. If our business has the opportunity to maintain employee files through an electronic management system, are we required to keep the original copies or can we shred them?

A. In a nutshell, employers are not required to maintain the hard copies of the employee files. However, it is recommended holding on to the hardcopy of these files during some overlapping period of time (i.e. 6 months or so) when (a) you are transitioning to a new electronic management system and you want to be confident that everything saved correctly and (b) you are not actively tied into any employment lawsuits or other litigation that would involve these items. If you do choose to dispose of the hard copies, be confident that they are being appropriately shredded since the documents may contain confidential information about employees.

Professional Image & Appearance

Every employer wants its company portrayed with a positive image. How a business wants to portray itself through its workers also plays a key role in rapport, business relationships, values, and customer service. If explored too nonchalantly and communicated poorly to its employees, an employer could easily find itself up against unexpected discrimination claims.

Several labor laws contain employee protections that relate to professional image. For example, Title VII of the Civil Rights Act covers protected classes (e.g. age, gender, sex, religion, ethnicity, race, religion) in the workplace. While an employer can enforce specific dress code policies, some policies may inadvertently infringe on an employee’s protected rights (e.g. attire, jewelry, or body markings having a religious relevance). In general, professional image or dress code policies should not be discriminatory in nature or intent.

Does it mean that a company may not impose different standards for different categories of employees? Not necessarily. A company may impose a different dress code standard for men and women based on generally acceptable social standards. In fact, this practice has been tested and supported in federal court. In the case of Knott v. Missouri Pac. Ry. Co., a male employee was suing for the right to wear an earring at work, as female employees were permitted to do so. The decision basically stated that as long as male and female employees are held to similar professional appearance standards, the company may impose differing gender-based guidelines in accordance with generally acceptable social appearance standards without engaging in gender-based discrimination. The court decision went on to state that “minor differences in personal appearance regulations that reflect customary modes of grooming do not constitute sex discrimination within the meaning of [federal law],” and dismissed the male employee’s lawsuit. With respect to tattoos, as long as both male and female employees are required to cover up tattoos while working, the company is in compliance with the applicable regulations.

The following are some guidelines employers may consider:

• Get familiar with relevant labor laws that also pertain to workplace safety requirements (e.g. hard-hat and steel-toe shoe requirements at a building construction site).
• Give employees an opportunity to change their appearance to be more in-line with the company’s workplace culture policies (e.g. allowing the employee to go home and return to work in a company’s prescribed uniform attire).
• Provide options to cover up or remove visible appearance factors as a temporary solution during working hours (e.g. requirement not to wear any visible body piercings during working hours).
• Survey customers about their perceptions of the company’s image represented by the workers.
• Adopt policies that specify which department of employees may or may not be impacted.

An employer’s objective is to ensure their business is portrayed appropriately by their staff to specific customers and audiences. However, the employer is responsible for making sure that the right professional image and dress code policies are in place and that the policies respect the employees’ protected rights in the workplace.

Tool of the Month:

Form I-9 Compliance Checklist

The Department of Homeland Security (DHS) and Immigration and Customs Enforcement (ICE) have set forth efforts to increase immigration compliance audits in the workplace. One of the top priorities is the Form I-9.

Use the Form I-9 Compliance Checklist to ensure regular compliance to:

• Determine if Form I-9s are truly complete
• Understand retention recordkeeping requirements
• And much more!

To download the Form I-9 Compliance Checklist, go to the HR Support Center, Essentials tab, Checklist link.

HRCast of the Month

What the New NLRA Posting Requirements Really Means for Employers

What implications exist beyond the new National Labor Relations Act posting requirements? This month’s HRCast explores this question and provides listeners with insightful answers and helpful tips.

On April 15th, be sure to visit the HR Support Center and listen to this month’s HRCast to learn more.

HR Tip of the Month

Create a Job (not an Applicant) Posting

Describe the job, not the applicant. Focus on the essential functions, duties, and responsibilities needed for an individual to perform the work…and not individual personality characteristics.

Did you Know?

84%

A new survey released by Right Management found 84% of employees intend to look for a new position in 2012.

Quote of the Month

“Always bear in mind that your own resolution to succeed is more important than any other.”

– Abraham Lincoln

A Look Ahead

April 1:

April Fools’ Day

April 6:

Good Friday

April 7:

World Health Day

April 8:

Easter

April 17:

Income Tax Day

April 22:

Earth Day

April 25:

Administrative Professionals Day

April 27:

National Arbor Day

April:

Sexual Assault Awareness and Prevention Month (observed)

Contact Us

Paragon Business Services, Inc.
7610 N Stemmons Frwy Suite 600
Dallas, TX 75247

Additional Contacts

Phone: 866-444-4615 Fax: 214-951-1920

FACTORING vs. TRADITIONAL BANKING

Financial Services

Paragon Business Services now provides financial assistance through its association with Sunray Financial LLC, an independent provider of financial services. As an independent consultant, Sunray can offer the best solutions to your financial needs from a variety of sources. The primary service offered is the factoring of accounts receivable, but other financial services are available as well.

FACTORING: Factoring allows you to turn your invoices immediately into cash as opposed to waiting 30-90 days for payment. You determine which invoices you want to sell, place them on a schedule and receive 75-90% of the total amount on the same day. Once the invoice is collected, a small fee is deducted and the balance is paid to you.

FACTORING vs. TRADITIONAL BANKING:

• Factoring focuses on the credit worthiness of your customers, not your company’s credit.
• Factoring does not place restrictive covenants on net worth, profitability, leverage or other restrictions
• Factoring changes your receivables asset for a cash asset and does not create a liability on your balance sheet
• Getting set up with factoring is fast, with no long approval process

WHY FACTOR:

• Predictable and timely cash flow
  1. Peace of mind
  2. Take advantage of supplier discounts
  3. Pay taxes and bills on time
• Replaces your credit department
  1. Have potential customers’ credit worthiness determined at no additional cost
• Financing availability automatically increases with the growth of you business
• Assistance in collecting invoices
• Access to daily online reporting

INDUSTRIES SERVED:

• Transportation companies
• Staffing companies
• Manufacturers
• Distributors
• Wholesalers
• Service providers
• Construction companies
  1. Subcontractors only
  2. In business 2-3 years
  3. Contracts that do not require subcontractor bonding
  4. Must have current financial statements

COMPANIES THAT QUALIFY:

• Companies experiencing high growth
• Start-up companies
• Under capitalized companies
• Closely held and public companies
• Debtors in possession (Chapter 11)
• Typical traits
  1. Quality client base
  2. Quality products and services

COSTS: Fees charged are the lowest in the industry and are based on several variables such as:

• Customers’ credit strength
• Size of invoices
• Monthly invoice volume
• Payment trends

NOTE: If you are already factoring, let Sunray obtain a competitive quote.

HOW TO GET STARTED:

• Contact Brenda Kindrick
      Phone: 817-466-0909 x 111
      Email: bkindrick@paragon-pbs.com
      FAX: 817-549-0470
• Complete a short application and provide supporting documentation
• Receive approval or disapproval in just a few days
• Execute factoring agreements
• Receive funding

Factoring E-Brochure

Paragon Business Services, INC

You are one step closer to maximizing your company’s productivity.

Paragon Business Services is a leading national provider of payroll, tax filing, and workers compensation solutions for businesses of all sizes. We offer comprehensive payroll services, including payroll processing, tax administration, and pay as you go workers compensation programs. We also offer extensive human resource support and employee benefit outsourcing, such as unemployment claims administration, medical and

Paragon Business Services, Inc