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The Fair Labor Standards Act - Changes on the Horizon 1
Investing in Talent Management Pays Off at Crisis Prevention Institute 2
Summer Hiring: Employing Minors 3
Frustrated with FMLA Forms? So Are Your Employees 6
Supreme Court Issues Opinion on Pregnancy Discrimination Case 7
MAY 2015
Exclusively for MRA members
www.mranet.orgDownload this issue at mranet.org
page 4
Baby Boomers are Retiring in Record Numbers
May 2015
Letter From the EditorDebra [email protected]
WisconsinN19W24400 Riverwood DriveWaukesha, WI 53188262.523.9090
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OUR MISSION The mission of MRA is to maximize performance of organizations and employees so that business thrives. OUR PURPOSE We achieve our mission through knowledge transfer— the delivery of HR expertise through a wide range of membership benefits. The HR Digest is distributed monthly by MRA—The Management Association as a benefit of MRA membership. Back issues are available to members online at www.mranet.org. Reproduce content as many times as you wish for the benefit of your management team or employees. Please notify Debra Dorgan at 763.253.9730 or [email protected]. If reproduction is electronic, please include a link to www.mranet.org. www.mranet.org 800.488.4845
In this issue, you’ll read about MRA member Crisis Prevention Institute and what they did to revive their commitment to see that all employees have the competencies to succeed (see page 2.) They are now reaping the benefits: employees are proactively discussing career advancement and broadening their scope of responsibilities! And their timing is excellent given the
impending exodus of baby boomers—leading to the first time in decades that “Boomers” have not made up the majority of the workforce. Find out more about that in our cover article. Remember that I’m always interested in your ideas about what you want to see in your HR Digest.
1May 2015 I 1 www.mranet.org I 1.800.488.4845
fyi
At the time of this printing, proposed regulations to the overtime rules of the Fair Labor Standards Act
(FLSA) were pending.
Background
On March 13, 2014, the Obama Administration issued a presidential memorandum to the Department of Labor (DOL) instructing the agency to update regulations regarding overtime protections under the FLSA, which has not been changed since 2004. The Administration specifically called on the DOL to update existing protections to make overtime compensation applicable to a wider group of workers, and to simplify the overtime rules so that they are easier for employers to understand and apply.The changes have been pending for some time. The proposed regulations were originally expected to be released in 2014, but in November 2014 the DOL indicated that it expected to issue them by the end of February 2015. They are now expected in May 2015.
What Employers Need to Know
The FLSA establishes a minimum wage as well as requirements regarding overtime pay. Workers are protected by the regulations unless their job meets certain criteria, which are commonly referred to as “white collar” exemptions. The criteria have two parts: a salary test and a duties test.
The Salary Test Currently, to be exempt under the salary test, an employee must be paid at least $455 per week (or $23,660 per year), a very low threshold in 2015. The salary test amount is expected to be increased substantially under the proposed regulations.
The Duties Test Under the duties test, to be exempt, so-called managers and supervisors must be primarily engaged in the management of employees. The regulations do not currently provide guidance about percentages of time that an individual may perform either exempt or non-exempt work to meet coverage thresholds. The proposed regulations will likely address the concurrent performance of exempt and non-exempt work and may limit or eliminate the exemption for manager positions involving non-exempt work.
Next Steps The proposed regulations, when issued by the DOL, must proceed through the following steps to become final: The proposed regulations are published in the Federal Register, followed by a public comment period, typically of at least 30 days. During this time, the DOL will hear testimony, consider public comments, and have a final version of the revised regulations approved. After the DOL drafts final regulations, they will be reviewed and published in the Federal Register, most likely with a prospective effective date. Even with a 30-day comment period and a quick turnaround on a final rule, the DOL is unlikely to have any new final regulations in place before summer 2015.
MRA is closely monitoring the DOL’s actions and will
keep you informed of both the content and timeline of
the proposed FLSA regulations.
The Fair Labor Standards Act-Changes on the Horizon
2 I May 2015 www.mranet.org I 1.800.488.4845
By Julie Norland HR Director
As human resource professionals, we know that employee development is important, yet many
organizations struggle with making employee learning and development a priority. Recently, MRA member Crisis Prevention Institute (CPI) realized that employee development was essential to its success and began to invest resources and staff to help its 200 employees learn, grow, and succeed.
CPI provides training on nonviolent crisis intervention, workplace violence prevention, and dementia care to human services professionals in schools, health care, and social services organizations. The organization has experienced sustained growth over its 35-year history, but during its strategic planning process last year, CPI leadership set a goal to grow revenue at a rate double that of previous years.
Employee development is not a new concept at CPI, and this is exemplified by its human resources department. Elaine McCarty, HR Director, started 11 years ago as an HR Coordinator and the organization’s only human resource professional. Today, she leads a department of three. Another staff member, Raina Fryer, began as a Global Professional Instructor, grew into a Professional Manager role, and was recently promoted to Talent Development Manager.
In the second half of 2014, CPI committed to ensuring that all employees have the necessary competencies to succeed. As a result, Fryer and McCarty have been tasked with implementing competency-based management and career planning. Fryer has also worked collaboratively with people from various job groups at CPI to identify core competencies required for success in each role. The four processes described below are based upon
these core competencies:
1. Job descriptions are revamped to focus on the competencies critical to job success.
2. As positions open, interview guides are developed with a focus on ensuring the candidate has the needed competencies and traits.
3. Employees complete a career map to use in discussions with their managers throughout the year. Career maps focus on strengths, growth opportunities, career aspirations, training needs, and plans for professional development.
4. Managers work with each employee to create a learning plan to ensure that all employees continuously improve their skills. CPI believes learning plans will eventually replace traditional performance evaluations.
The investment in competency-based management is beginning to reap rewards. Fryer reports that employees are proactively discussing career advancement, broadening their scope of responsibilities, and initiating crucial feedback conversations. Additionally, the career map discussions allow CPI managers to better prepare for future job openings. Moreover, in a two-month period, three staff members moved into new roles. These positive outcomes place CPI in a better position to serve its customers and meet its increased growth plan into the future.
Investing in Talent Management Pays Off at Crisis Prevention Institute
To do this, two primary strategies
were identified:
• Increase sales and professional staff, and ensure growth.
• Develop current staff.
3May 2015 I 3 www.mranet.org I 1.800.488.4845
Classes are dismissed, and suddenly high school students are looking for good summer jobs. It is time
to review practices that will ensure a successful experience for both student and employer.
While summer jobs allow students to earn money, the process can also provide teenagers with an important learning experience and a taste of what it is like to participate in the workforce. When done well, the employment relationship can provide a great benefit to employers and the minors hired for the summer. Consider the following tips for creating a successful experience for the employer and the employee:
Comply With Applicable Child Labor Laws
Make sure the job for which you are hiring a minor to do is permitted employment for minors. What hours of the day, and how many hours per day or week, may a minor work in your state? Determine whether the minor needs to obtain a work permit prior to starting work.
Conduct Employee Orientation
This is especially recommended for minors because the employment period is relatively brief. They may need extra attention during orientation as well as a follow up to make sure they understand expectations. Many minors have no prior work experience, and may be unfamiliar with general employer expectations. Take the extra time to make sure the minor employee understands attendance requirements, disciplinary processes, and your code of conduct or other behavior-related policies. Make sure they know whom to contact if questions arise. Teenagers may be reluctant to speak up, so periodically check in to see how things are going.
Train Thoroughly
Make sure the minor employee is well trained on the duties of the job. Safety training is particularly important: include common-sense safety information as well as any required
training. If the child labor laws in your state prohibit access to certain areas of the facility or the performance of certain jobs, make sure the supervisor is clearly informed of these restrictions. In addition, make sure the employee is aware that he or she may not enter prohibited areas or perform certain tasks.
Provide Mentoring
Minors may feel like strangers in a strange land on their first job. They may not know the unspoken rules of the workplace or the position. Be patient, be respectful, provide thorough instructions, and offer a resource for getting questions answered. Most teens want to do a good job.
Experiences with summer employment can fundamentally influence an individual’s perceptions of work in general. Help teenagers get off to a good start. Your involvement may help create a motivated, productive worker for years to come.
For information about child labors laws, contact
MRA’s hotline at [email protected] or
866-HR-HOTLINE.
Summer Hiring: Employing Minors
By Barbara Weinstock HR Director
4 I May 2015 www.mranet.org I 1.800.488.4845
COVERSTORY
Start planning today for a successful workforce transition
If you answered yes to the questions above – congratulations! Your organization is ahead of the curve, and you will likely be better prepared for one of the greatest workforce transitions our nation has seen. However, if you found
yourself puzzling over these questions, don’t worry – you’re not alone. And we’re here to help.
The exodus of Baby Boomers has already begun and will continue at full force for the next 15 years as the remaining Boomers reach age 65. In fact, members of this group are retiring in numbers close to 10,000 per day. Baby Boomers have constituted the dominant generation in the workforce for decades, but 2015 marks the first year when Millennials will overtake Baby Boomers as the majority generation represented in the workplace.
Baby Boomers are Retiring in Record Numbers
Do you have a plan to fill the knowledge and skill gap resulting from Baby Boomer retirements?
Are you tracking your employees’ estimated retirement dates?
of your workforce retire over the next
30%15years?
Are you preparedto see
5May 2015 I 5 www.mranet.org I 1.800.488.4845
By Maureen Siwula
HR Director
Proactive employers are finding creative ways to address the knowledge gap, prepare for the impending loss of skills and talent, and position themselves for success. The following are some best practices we recommend that will benefit your entire organization.
Track retirement ages of employees and open up
conversations about retirement. According to the 2014 SHRM Aging Workforce Report, only 50% of employers do this today. Never assume that employees will provide this information ahead of time; many just give the standard two-week notice. Encourage open dialogue and provide resources for planning. While a mandatory retirement age is a legal violation, except in very specific circumstances, it is perfectly fine to have open conversations with your employees about their plans to stay in the workforce or move on to other opportunities–such as retirement.
Demonstrate that you value older workers. Give retirees opportunities for flexible scheduling and the ability to work from home. Provide them time and added incentives to document their work instructions and procedures before they retire. Offer step down retirement or causal consulting assignments. Move retirees to part time or casual status and use them as mentors, trainers, career fair ambassadors, strategic planning representatives, or members of interview panels. Invite retirees to holiday parties and annual meetings. Keeping them engaged after full-time work ends serves both the employee and the organization.
Conduct succession planning.
Take a serious look at your leadership and those who are showing advancement potential. Who is in line to replace those approaching retirement? Align new emerging leaders with those approaching retirement; provide training and cross-functional opportunities that lead to a promotion from within rather than hire new employees. Build career ladders for middle managers to advance.
Implement mentoring, job sharing, and shadowing programs. As Millennial employees are promoted to management positions, partner them with experienced Baby Boomer managers for mentoring and training. Individuals
retiring from your workforce constitute a deep well of knowledge, and having them share their knowledge and experience will help your newer managers be more effective faster.
Phase retirements. Abrupt departures can be difficult. Ensure a smooth transition by offering opportunities for retiring Baby Boomers to move to part-time work prior to full-time retirement.
There are sure to be challenges associated with the exodus of Baby Boomers from the workplace. However, employers can ensure a more successful transition by following these recommendations and keeping the lines of communication open, contact us at 866-HR-HOTLINE or email [email protected]. Also, for more information on Retirement Research, visit crr.bc.edu.
While many Baby Boomers are choosing to work beyond the age of 65, the average age of retirement is 62. This number, reported by the Gallop Poll, is the highest average age since Gallop started tracking this average in 1991.
6 I May 2015 www.mranet.org I 1.800.488.4845
By Joshua Pollack HR Manager
The Family and Medical Leave Act (FMLA) has more than enough forms: notice of eligibility, employee
rights and responsibilities, certification of health care provider, and FMLA designation. Toss in some short-term disability forms, perhaps a copy of the company FMLA policy, and you have information overload. Given this reality, how could one more form actually help?
Many employees do not understand how the FMLA works, nor have they read the company FMLA policy. Most of the time, an employee needing a potentially FMLA-related leave is focused on his or her personal crisis and not on completing the proper job-related forms. Furthermore, not every FMLA request is made in person or submitted directly to HR. Bam! You have a perfect storm for confusion and frustration for employers and employees alike.
Consider an online leave request form. At its most basic level, a leave request form provides an employer with information regarding the need for leave—the arrival of a child, the care of a family member, military-related leave, or the employee’s own condition. The leave request form may also be used to determine how the employee will be paid during the leave and provide guidance to the employee about what to expect next. Finally, and most importantly, the form can function as an educational tool regarding the overall process and timeline expectations.
Due to the variety of additional information that may be reported on a leave request form, there is no single format that will be ideal for every situation. Thus, employers should tailor the form to meet their needs. Some employers use specialized request forms for each leave type, such as a form for birth or adoption, a form for an employee’s own condition, and so forth. Other employers may use a single leave request form for all leaves, including vacation or PTO.
Online forms offer the best of both worlds—the robustness and specificity of a specialized form with the simplicity of a single form. An online form can customize itself in the moment based on employee information as it is entered. Moreover, the form’s 24/7 availability and simplicity make it easy to incorporate into the leave process. Further, due to the low cost of purchasing online forms, the business case is easy to make in terms of time saved and frustration avoided.
FMLA administration will continue to be a form-intensive process, but using an online leave request form can simplify matters and reduce FMLA friction.
Frustrated With FMLA Forms? So Are Your Employees
7May 2015 I 7 www.mranet.org I 1.800.488.4845
By Kathryn HelmkeHR Government Affairs [email protected]
On March 25, 2015, the United States Supreme Court issued its opinion in Young v. United Parcel Service, Inc.,
giving a former UPS driver another chance to prove her claim of discrimination after the company did not offer her lighter duty when she was pregnant.
The Supreme Court voted 6-3 in Young’s favor, throwing out lower court rulings that rejected her lawsuit, and ordering the lower courts to look again at Young’s claim, with one consideration being, “Why, when the employer accommodated so many, could it not accommodate the pregnant woman as well?”
Background
Peggy Young was a part-time driver for UPS. When she became pregnant, her doctor advised that she should not lift more than 20 pounds. UPS told Ms. Young that she was required to lift up to 70 pounds in order to do her job, and that she could not work while under a lifting restriction. She subsequently brought a federal lawsuit, claiming that UPS discriminated against her pregnancy-related condition under the Pregnancy Discrimination Act. Two lower courts ruled against Ms. Young, holding that UPS had not discriminated against Ms. Young on the basis on pregnancy, but had instead treated her just as it treated all “other” relevant “persons.”
Supreme Court Decision
The Court held that a pregnant employee who seeks to show disparate treatment discrimination must show that (1) she belongs to the protected class, (2) that she sought a reasonable accommodation, (3) that the employer did not provide an accommodation, and (4) that the employer did accommodate others who are similar in their ability or inability to work. The employee may present evidence in support of her claim that the employer’s policies impose a significant burden on pregnant workers, particularly when the employer accommodates a large percentage of nonpregnant employees while failing to accommodate a large percentage of pregnant employees.
Pregnant workers in situations similar to Young’s also may have additional protections under the 2008 amendments to the Americans with Disabilities Act. Young’s pregnancy occurred before Congress changed the disabilities law.
What Employers Need to Know
In July 2014, the U.S. Equal Employment Opportunity Commission (EEOC) issued new guidance on pregnancy discrimination and related issues. Follow the guidance, which states that an employer must treat a pregnant worker the same as other employees who are similar in their ability or inability to work, and may not rely on a policy that “makes distinctions based on the source of an employee’s limitations (e.g., a policy of providing light duty only to workers injured on the job).” Update your policies to remove language that makes such distinctions.
United States Supreme Court Issues Opinion in Pregnancy Discrimination Case
8 I May 2015 www.mranet.org I 1.800.488.4845
We have seasonal employees returning for the summer. Do I need to complete a new Form I-9 for them?
Seasonal employment is considered “continuing employment.” Thus, according to the USCIS (US Citizenship and Immigration Services), you should
continue to maintain and store the previously completed Form I-9 as if there was no interruption in employment. It is advisable to inspect the previously completed Form I-9 and, if necessary, update the form or conduct re-verification. If you determine that your employee was terminated and is now rehired, and the rehire occurred within three years from the date the original Form I-9 was completed, you may either complete a new Form I-9 or rely on the original Form I-9.
InfoNowHeard It On The Hotline
Q
A
New Reports Published in May:
· Wage Survey of Industrial Jobs
· Production Trades Survey
Recently Published Reports:
· Turnover Survey
Questionnaires Open in May:
· National IT & Engineering Compensation Survey
surveys
Pick the Recruiting Services You Need. Get the Talent You Want.
JOB ANALYSIS Create job descriptions and benchmark positions to the current market compensation to ensure you are attracting the right talent. SOURCING Source candidates actively looking for new employment and passive candidates who may not know they are looking yet!
Create and manage a strategic approach to social media recruiting and targeted job postings. SCREENING Conduct preliminary screenings to ensure only quality candidates make it through the door for phone screens, web-based interactions and in-person interviews. SELECTION MRA champions the process to the point of hire or all the way to the final stages of the interview process.
FINAL CANDIDATE MRA recruitment professionals take candidates to the finish line by drafting offer letters and negotiating the final offer. SUPPORTING SERVICES We offer our members background investigations, licensure verification, and reference checking. We even assist in onboarding paperwork.
Simplify your hiring. Let MRA help you recruit top talent. www.mranet.org/recruiting 800.488.4845
MRA’s unique member service model and collaborative approach ensure we deliver qualified candidates at a fraction of the cost of traditional retained and contingent arrangements. We’ll conduct full life-cycle recruitment assignments or provide services à la carte.
9May 2015 I 9 www.mranet.org I 1.800.488.4845
New Members MRA extends a warm welcome to our newest members!
Alliance Disaster Kleenup Wheeling, IL Josh Tubero Vice President
Anderson Pump & Process Brookfield, WI Chelsey Thomas HR Generalist
Bensenville Fire Protection District Bensenville, IL Brendaliz Delvalle Director of Administration
Berry Plastics Milwaukee, WI Sherry Spangler HR Manager
CallSmart, Inc. Grayslake, IL Rebekka Herrington COO Chandler Exhibits, Inc. Afton, MN Lee Bartelt CFO
Coolibar, Inc. Minneapolis, MN Brenda Horst Senior Accountant & Benefits Administrator
Diamond Foods, Inc. Kettle Division Beloit, WI Diane Eickman Human Resources Manager
Douglas Scientific, LLC Alexandria, MN Jessica Hjelle HR Manager
Drewco Corporation Franksville, WI Ann Pettibone CEO
Fontaine Consulting, LLC Rock Island, IL Yves Fontaine President
Health Payment Systems, Inc. Milwaukee, WI Cyd Carr Human Resources Coordinator Home Instead Senior Care-Sheboygan Sheboygan, WI Kelli Campbell Office Manager
Landmark Services Cooperative Cottage Grove, WI Jeremy Henkels Executive Vice President Human Resources
Lerner Publishing Group Minneapolis, MN Cyndi Radant Director of Human Resources
NEW Manufacturing Alliance Green Bay, WI Ann Franz Director
Nordic Components, Inc. Waconia, MN Brandon Yerks Accountant/HR
Old Dutch Foods, Inc. Roseville, MN Sandra Erkkila Human Resources
Opitz & Associates St Louis Park, MN Kyra Swenson HR Manager
Prevent Child Abuse America Chicago, IL Jim Hmurovich President CEO
Saris Cycling Group Madison, WI Danielle Petta HR Manager
Scott Construction Lake Delton, WI Mary Bjorklund Director of Employee Services
Sequoia Automatic, Inc. Crystal Lake, IL Jeff Mostardo HR Manager
Sil-Pro, LLC Delano, MN Cathy Fabisch Director of Human Resources
Sky Zone St. Louis Park, MN Jack Miller Area Manager
Southern Lakes Area Love, Inc. Burlington, WI Bill Schoessling Director
Southwest Wisconsin Workforce Development Association Platteville, WI Rhonda Suda CEO
St. Catherine’s High School Racine, WI Nancy Kost VP of Finance and Technology
TwinWest Chamber of Commerce Plymouth, MN Brad Meier President
Wisconsin International Academy Wauwatosa, WI Sara Smith Business Manager
MRA membership is a great value with a lifeline of time- and cost-saving benefits that help you create powerful teams and a safe, successful workplace. Email: [email protected]: 866-HR-HOTLINE
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