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

March HR Advisor Newsletter

Paragon March HR Advisor Newsletter

March 2012

Welcome

As most of us spring forward into daylight savings time, take a moment to look ahead and see what is in the forecast for upcoming labor law developments and tips to ensure your business is in compliance.
HR Alerts

USCIS Announces Expansion of E-Verify Self Check System. On February 9, 2012, the U.S. Citizenship and Immigration Services (USCIS) announced Self Check, a free online service of E-Verify that allows workers to check their own employment eligibility status and ensure that government records on their identities are accurate. Self Check is now available in all 50 states.

Summary of Benefits and Coverage Requirement Clarified. Employers with open enrollment periods in 2013 starting in or after that year will have to provide a Summary of Benefits and Coverage (SBC) to each existing participant (or others enrolling at open enrollment) as part of the open enrollment period. This is according to regulations published in the February 14, 2012 Federal Register.
The Necessities of a Safety Manual

Employers are responsible for providing a safe workplace environment for their employees free from harm, health hazards, harassment, etc. Enforcement of workplace safety compliance is an issue that has gained increased attention from federal and state governing agencies.

According to the federal Occupational Safety Health Administration (OSHA), an effective safety and health program can save as much as six dollars for every dollar invested. On January 6, 2012, OSHA initiated a Small Business Regulatory Enforcement Fairness Act (SBREFA) panel process to draft an Injury and Illness Prevention Program (IIPP) rule. Where ever your business is in terms of a safety program, a safety manual is an important starting point for any company size. As a best practice, a company’s safety manual typically includes the following:

  • Supervisor responsibilities
  • Employee responsibilities
  • Reporting
  • Safety policies
  • Equipment usage/handling
  • Chemical/hazard handling
  • First aid • CPR
  • Safety rules
  • Documents
  • Disciplinary action
  • Accident reporting
  • Injury reporting
  • OSHA logs
  • Protective uniforms
  • Cleaning workspaces
  • Opening/closing items

Note: Twenty-four states operate their own OSHA-approved safety and health programs. Some state plan requirements may differ in certain aspects from federal OSHA. Regardless, state-imposed standards must be at least as stringent as the federal standards.

While OSHA is currently in the process of developing new standards of an IIPP, employers still need to adhere to their workplace health and safety obligations. So at a minimum, be sure to regularly review your company’s safety manual or consider establishing an IIPP. With the right information, the manual should help your business meet OSHA requirements and achieve an in-compliance status well before an OSHA inspection occurs.

Question & Answer

Break time tracking

Q. Can an employer make its employees clock out for breaks of 5 minutes?

A. No, an employer may not require employees to clock out for breaks of five (5) minutes and be unpaid for that time because this practice violates the federal Fair Labor Standards Act (FLSA).

According to the US Department of Labor, “the FLSA does not require employees be given meal or rest breaks. However, if employers do offer short breaks (lasting about 5 to 20 minutes), federal law considers these short breaks time for which employees must be compensated. Bona fide meal periods (typically lasting at least 30 minutes), serve a different purpose than short rest or snack breaks and, thus, are generally not time for which employees must be compensated.” At the same time, for documentation purposes, an employer may require employees to track (using a device or timesheet) the times employees started and ended their rest breaks. Note: Some state laws differ than the federal laws in regards to required meal/rest breaks.

Workplace Water Cooler Rumors

Many employers using technology understand the dynamic implications of workplace rumors. Rumors can create an environment of mistrust, hostility, low motivation, and low productivity. Managers who are trained to recognize the root causes of rumors and how to prevent them, or at least be able to manage rumors, can more effectively set the stage for teamwork success.

Rumors arise due to various reasons. Some reasons arise from relationships at the workplace, work stressors, and dealing with personal job satisfaction. In general, there is a natural tendency to engage in rumors or listen in to what is happening around us due to human needs of wanting to communicate, stay informed, and fit in with peers. Some employees engage in this fashion to gain more control and to see how much power they may have in comparison to others. Often, when employees do not know why certain management decisions are being made, gossip and rumors begin. A manager’s clear and effective communication style, with his or her employees, is crucial.

Managers can do a lot to address workplace rumors. Here are some top picks:

  • Values. Ensure values are in line with the rest of staff. Managers should make an effort to state what will not be tolerated.
  • Open door policy. Managers should welcome feedback from all employees to speak about the company and their own job positions. When managers avoid direct communication with employees, employees often feel compelled to engage in conversation about “what ifs” to what may be happening. Employees assume future developments involving staff and business practices about products or services may be changed.
  • Confidential suggestion box. Managers can put up a suggestion box that allows for employees to anonymously submit in their concerns or comments in regards to what is bothering them or how things are going for them.
  • Discipline. Manage employees who continue to engage in rumors and or are not mindful about workplace productivity.
  • Third-party mediation. Gain more neutral input by having a third person take notes at the mediation and keep everyone on track. More specifically, if the tone / content of the conversation becomes inappropriate, they can help bring it back to an appropriate level.
  • Employee independence. Employees should learn how to handle gossip on their own. Whenever a gossiper is confronted, he or she will think twice about doing it again. Avoid using the word “you” but having the person who is the target of the gossip state something in an “I” statement.

In today’s workplace, it can be difficult to escape workplace gossip issues. Those who engage as the senders of workplace gossip and those who are the recipients tend to hear different things and build different interpretations which can lead to infectious discontent. It is encouraged for employees and managers to speak to one another on-going about decisions, upcoming plans, etc. to fill in communication gaps. By doing so, it will greatly help prevent rumors from starting and speculation from occurring.

Tool of the Month:

EEOC Independent Contractor Checklist

Some employers are aware about the IRS multi-factor tool to help determine Independent Contractor classifications. However, other governing agencies such as the Equal Employment Opportunity Commission (EEOC) also have their own criteria to classify Independent Contractors. The EEOC, which administers Title VII and other federal anti-discrimination laws, lists 16 factors for distinguishing between an Employee and an Independent contractor:

The EEOC Independent Contractor Checklist sheds light on many areas such as:

Control of when, where, and how the worker performs a job
Establishment of pay
Benefits provisions
And much more
To download the EEOC Independent Contractor Checklist, go to the HR Support Center, click on the Essentials Tab, and go to the Checklist link.

HRCast of the Month

How Paid Breaks Can Become Unpaid Breaks

What circumstances would lead to a paid break to be considered an unpaid break? This month’s HRCast explores this question and provides listeners with insightful answers and helpful tips.

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

HR Tip of the Month

Avoid Negligent Hiring with Basic Checks

Fast hiring decisions can be great, until the employer is suddenly faced with liability for an employee’s wrongdoing by not adequately conducting background, qualification, or reference checks. At a minimum, confirm a job applicant’s dates of employment and job position(s). If possible, obtain information about a job candidate’s past performance and any disciplinary issues.

Did you know?

23%

According to a 2011 study by Bullhorn Inc., workers who have completed a higher level of education are 23% more likely than workers who have completed a lower level of education to gravitate toward an organization with an inspiring mission.

Quote of the Month:

“Action is the foundational key to all success.”
– Pablo Picasso

A Look Ahead

March:
Women’s History Month

March 2:
Employee Appreciation Day

March 2:
National Salesperson Day

March 8:
International Women’s Day

March 11:
Daylight Saving Time Begins (clocks move forward one hour at 2:00am)

March 14:
No Smoking Day

March 17:
St. Patrick’s Day

March 20:
International Earth Day

March 20:
Spring Begins

March 31:
Cesar Chavez 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

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

Austin, Dallas, Fort Worth Payroll Services

Paragon Business Services, Inc