Taking on a management role can be demanding; it brings new responsibilities, additional workload and more. It can be even more challenging when an employee has been promoted into the role of manager and is now responsible for supervising former co-workers. In order to succeed, these managers will need to find a way to transition a peer relationship into a successful manager-employee relationship.

Here are some tips for making a successful transition:

• Separate the personal relationship from the professional one. You can remain friendly with former co-workers but should make it clear that personal relationships cannot and will not influence your decisions and actions at work. Creating this separation may involve limiting or eliminating after-work socializing to avoid potential conflicts. This doesn’t mean a manager and his or her employees can’t be social or have lunch together, but if they do, conversation should be limited to general topics such as hobbies and interests.
• Let former peers know that you take your new responsibilities seriously. Some new managers will use jokes or humor to ease into difficult conversations with their employees, but doing so can undermine the seriousness of a counseling session or disciplinary action. Being gentle but firm can go a long way in helping employees improve and can help the manager gain and maintain employees’ respect.
• Treat all employees equally. Playing favorites can create tension and interfere with a manager’s ability to effectively lead the team. It could also invite claims of discrimination in some circumstances. Managers should consistently provide both positive feedback and suggestions for improvement to all of their subordinates. Doing so can promote successful employee development while ensuring fair treatment.
• Ask for help. Many managers have, at some point in their careers, found themselves in the position of managing former co-workers and peers. Talking with others in leadership roles can be a great source of guidance when making this transition.

By separating the personal relationship from the professional one and managing former peers or co-workers with consistency, fairness and respect, an employee can successfully make the transition to manager.

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Most of us have heard about David Letterman’s alleged affairs with his female subordinates, and this is a useful reminder for employers: create a systematic plan for dealing with workplace harassment and romantic relationships. And then follow it.

As the Letterman case shows, the line between inappropriate behavior, romantic relationships, and harassment can blur. Consensual relationships sometimes sour. Other times, employees enter relationships because they feel compelled to, believing that doing so is a prerequisite to success or advancement. And in the worst cases, employees are explicitly told or threatened that the relationship is a job requirement.

To protect themselves and their employees, employers must walk the difficult line between preventing and correcting harassment, without stifling all consensual, non-workplace conduct.

Here are 10 ways to help manage this sensitive subject:

1) Start with a Harassment Prevention Policy.

A solid harassment prevention policy is the first line of defense. But the existence of a policy on its own is not enough. To be effective, a policy must clearly identify who is protected, explain conduct that is prohibited, and tell employees where to report problems and get help. Additionally, supervisors and managers need to know what to do with information or complaints they receive from their employees. And to make sure everyone knows the rules, employers must be sure each employee has a copy of the current policy and know who to ask when they have questions.

2) Training Requirements

Although federal law does not require harassment training, it is highly recommended and may provide an affirmative defense for the employer when challenged. Also, some states such as California do require harassment training, so insure you check your state requirements.

3) Train Everyone

Training lets employees know company standards, and it tangibly demonstrates the company’s commitment. It is also a good opportunity to share information about the company and management. Taking steps to prevent unlawful harassment and discrimination can help the company avoid or reduce potential damages in litigation. It also reinforces to employees that the company takes the issue seriously.

4) Adopt a Conflict of Interest Policy

Employers can restrict relationships that can create an actual or potential conflict of interest, such as a relationship between a superior and a subordinate. In these situations, employers legitimately worry about the potential for the personal relationship to interfere with business judgment. For this reason, many employers’ policies discourage or prohibit relationships that can cause this conflict. Such policies may also specify that employees are expected to disclose relationships that may create a conflict, so the employer can take appropriate action to address any potential conflict. Be aware of state laws that might prohibit strict non-fraternization policies.

5) Distinguish Harassment from Relationships

Not every romantic relationship is ‘harassment’. Relationships can change though. When consensual relationships end, for example, employers must take seriously later complaints of mistreatment. In one case, an employee claimed a co-worker, with whom she had an on-again, off-again romantic relationship, created a hostile work environment. When the relationship ended, the employee complained to the company about her co-worker’s behavior, and the company responded by disciplining the co-worker. When the employee later sued, the company won because it had acted quickly to resolve the employee’s complaints.

6) Do Not Create Temptation

While employers have little control over how employees spend time away from work, they can do things to control conduct that can affect the workplace. For instance, employers should make clear that harassment prevention policies apply to all work-related events. Management should avoid holding company-sponsored events at venues that may encourage behavior that violates conduct policies. One obvious example is the high incident rate between alcohol and unwanted conduct. Employers also can reinforce that its technology, such as email and telephones, are for business use and not for conducting workplace romance.

7) Consider Love Contracts

Some employers ask romantically involved employees to sign a ‘consensual relationship agreement’ or a ‘love contract’. This document generally acknowledges a relationship, confirms that it is consensual and will not interfere with job performance, and reinforces the principles of the employer’s harassment prevention policy. The agreement usually states the employee’s obligation to notify the employer of conduct that violates the policy.

8) Stay out of Employee Private Time

As hard as it may be to accept, employers must recognize there is little they can do about consensual relationships between employees that do not affect their workplace performance or conduct.

9) See it From the Eyes of Others

Employees engaged in relationships are not the only ones who may be subject to a hostile work environment. In one case, the court established that a manager’s favoritism for multiple paramours can create a hostile work environment for other employees. In this case, a supervisor engaged in romantic relationships with several women who reported to him, and they were promoted and treated favorably. While a single act of preferential treatment is not unlawful harassment, the court held “severe or pervasive” sexual favoritism can be actionable conduct. And, the person suing need not be the victim of the conduct.

10) Act on Violations or Complaints

An employer’s most important duty is to act on complaints or anytime it becomes aware of potential violations of its harassment prevention policy. An investigation need not be error-free or conducted with sophisticated methods. But it must be prompt, conducted in good faith, and sufficiently thorough under the circumstances. Employers should take all complaints seriously because employees find it very difficult to bring forth these complaints. A complaint may involve a relatively trivial incident; however, an investigation may reveal a larger problem.

This information should not be construed as legal advice.

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Being an effective manager takes work. Also, if you are new to the role with little or no training, you will discover there is a difference between being a great employee and managing great employees.

Being a manager takes courage, drive and a little insanity. Many managers know what to do; they are just overwhelmed with the volume of what they need to do.

Here are 5 tips managers most likely know but tend to forget, so lets review what you already know so you can put that knowledge into practice immediately.

1. Determine Who’s Who. Know the personalities on your team, and who you are. The 4 different ‘playground personalities’ will help you do this. Ask, “What type of kid was I on the playground?”

• The one who made sure everyone got a turn at bat? This is the Peacemaker.
• The one who made everyone line up and count off? The Organizer.
• The one who changed the rules midway through the game? The Revolutionary.
• The one who wanted to play it my way? The Steamroller.

Once you figure out your playground personality, determine whos on your playground. Don’t miss the signs. People are very clear with their body language, word usage and intentions.

Peacemakers appreciate communication and collaboration. If a staff member’s eyes bulge when others argue, that’s a clue.

Organizers are structured and decisive. If an employee comes to a meeting with charts or color-coded paper, he’s an organizer.

Revolutionaries hate routine and prefer to adapt to the moment. You’ll know a revolutionary when you ask, “Where did that come from?”

Steamrollers are smart and opinionated and can solve complex problems. They take opposing views and keep ideas floating at 30,000 feet.

2. Show Respect. Respect starts with the manager. Saying “hello” or “thank you” goes a long way. To show respect:

• Brainstorm ideas with Peacemakers
• Provide meaningful work with deadlines to Organizers
• Assign emergency tasks to Revolutionaries
• Ask Steamrollers for their opinions

3. Face Facts. Not everyone collects facts the way you do, so ask questions, be open to learning and don’t shut down discussions too early. When you think you have the facts, ask again to make sure.

4. Find the Humor. Humor should never be personal, but try to find the absurdity that invades everyone’s workspace and lighten the mood. Humor helps employees relate to you and builds camaraderie for difficult tasks.

5. Put it all Together. Managers get paid to get work done. Just when you have a plan, something goes wrong. Don’t immediately go to Plan B. Leverage personalities and the way each approaches a problem.

Understanding employees and empowering them to tackle their work in a manner that suits them will help you blossom into a confident, seasoned professional.

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The recent passage of the Patient Protection & Affordable Care Act (H.R. 3590) and the Health Care & Education Affordability Reconciliation Act of 2010 (H.R. 4872) will impact every business. How will it affect you? For your convenience, we have created a chronological summary for employers in general and also a bonus edition for small business owners.

Summary of the Legislation by Number of Employees:
50 employees or more | 100 employees or less | 25 or less

Effective January 1, 2014
**Applies to firms with greater than 50 employees

• Promoting Employer Responsibility. The Act requires employers with 50 or more employees who do not offer health coverage to their employees to pay $2,000 annually for a “full-time employee” (i.e., an employee working 30 or more hours per week).

• The 50-employee threshold is based on the employer’s average number of employees on business days during the preceding calendar year.
• Both full-time and part-time employees are considered in determining whether the employer has 50 or more employees; however, the number of part-time employees to be counted is determined by dividing the aggregate number of hours of service for those part-time employees for each month by 120.
• The $2,000 penalty then applies only to full-time employees who work 30 or more hours per week.
• In order to encourage employers to expand beyond 50 employees, the first 30 employees are not included in calculating the applicable penalty amount.
• The penalty can also increase to $3,000 for a full-time employee receiving a federal tax credit in the exchange where the employer offers health coverage, but that coverage would be deemed “unaffordable” because the employee has to pay more than 9.8 percent of his or her income, or the employer contributes less than 60 percent of the actuarial value of the plan.
• Therefore, while employers are not required to offer health coverage under the Act, significant penalties may be imposed on those employers that do not offer it or that only offer health coverage deemed “unaffordable.”
• In addition, employers may still impose a waiting period for coverage without being subject to a penalty, but this waiting period may not exceed 90 calendar days.

Effective January 1, 2011
**Applies to Firms with 100 employees or less

• Cafeteria Plans. The Act creates a Simple Cafeteria Plan to provide a vehicle through which small employers can provide tax-free benefits to their employees.

• Small employers are defined as employers who on average employ 100 or fewer employees over the previous two years. The Act aims to ease the administrative burden of sponsoring a cafeteria plan for such small employers.
• The Act also exempts small employers who make contributions for employees under a Simple Cafeteria Plan from pension-plan nondiscrimination requirements applicable to highly compensated and key employees.

Effective January 1, 2014

**Applies to firms with 100 employees or less

• Exchanges. The Act provides for the creation of health-insurance exchanges at the state level in 2014, where individuals and small employers would be able to buy health coverage in a manner similar to that of larger employers. Initially, the state exchanges would be open to individuals and small employers with 100 or fewer employees, unless the state opts to limit this to

organizations with 50 or fewer employees. Beginning in 2017, states would have the option to expand the exchange to larger employers.

**Applies to Firms with 100 employees or less

• Wellness Programs. The Act provides that employers can offer increased incentives to employees for participation in a wellness program or for meeting certain health-status targets. The Act permits rewards or penalties, such as premium discounts of up to 30 percent of the cost of coverage. Existing wellness regulations are limited to wellness incentives of up to 20

percent of the total premium, provided that certain conditions are met. In addition, the Act creates a $200 million, five-year program to provide grants to certain small employers (fewer than 100 employees) for comprehensive workplace-wellness programs. The grants would go to small employers that did not have a wellness program when the Act was enacted.

Effective January 1, 2010
**Applies to firms with 25 employees or less

• Small-Business Tax Credit. A small-business tax credit of up to 35 percent of the employer’s contribution to purchase health insurance for employees is now established for “qualified small employers.”

• A “qualified small employer” is an employer that has no more than 25 full-time employees for the taxable year and the average annual wages of those employees do not exceed $50,000 (indexed for inflation.
• Employers with 10 or fewer employees and average annual wages of less than $25,000 would be eligible for the full credit.

• Small-Business Tax Credits. When health-insurance exchanges are established in 2014, the available tax credit will increase to 50 percent of premiums.

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The recent passage of the Patient Protection & Affordable Care Act (H.R. 3590) and the Health Care & Education Affordability Reconciliation Act of 2010 (H.R. 4872) will impact every business. How will it affect you? For your convenience, we have created a chronological summary for employers in general and also a bonus edition for small business owners.

Summary of the Legislation by Effective Date:
2010 | 2011 | 2013 |  2014 | 2018

Effective January 1, 2010
• Medicare Part D. The Act provides a $250 rebate check for all Part D enrollees who enter the “donut hole.” Currently the “donut hole” coverage gap falls between $2,830 and $6,440 in total drug spending by Part D enrollees.

• Adoption Tax Credit. The Act increases the adoption tax credit and adoption assistance exclusion by $1,000 (now set at $13,150), makes the credit refundable and extends the credit
through 2011.

Effective 90 Days After Enactment (i.e., June 21, 2010)
• Early Retirees. The Act establishes a temporary reinsurance program to provide reimbursement to employer health plans offering health coverage for early retirees (ages 55 to 64) and their families. The reinsurance program would reimburse employer health plans for 80 percent of the cost of benefits provided per enrollee in excess of $15,000 and below $90,000. The employer health plans are required to use the funds to lower costs assumed directly by participants and beneficiaries, and the program incentivizes plans to implement programs and procedures to better manage chronic conditions.

• Pre-Existing Conditions. The Act provides that group-health plans and health-insurance issuers offering group or individual health-insurance coverage may not impose any pre-existing condition exclusions with respect to such plans or coverage. Therefore, group-health plans that include such pre-existing condition exclusions will no longer be permitted.

Effective 90 Days After Enactment (i.e., June 21, 2010)
• Pre-Existing Conditions. The Act provides that group-health plans and health-insurance issuers offering group or individual health-insurance coverage may not impose any pre-existing condition exclusions with respect to such plans or coverage. Therefore, group-health plans that include such pre-existing condition exclusions will no longer be permitted.

Effective Six Months After Enactment (i.e., September 23, 2010)
• Additional Protections for Children. The Act: (1) bars health-insurance companies from imposing pre-existing condition exclusions on coverage for children and (2) requires any group-health plan or plan in the individual market that provides dependent coverage to continue to make that coverage available until the child turns 26 years of age, if the child does not have access to other health coverage (without regard to the child’s marital status).

• Lifetime Limits. The Act prohibits insurers from imposing lifetime limits on benefits. Additionally, beginning in 2014, the Act prohibits insurers from imposing annual limits on the amount of coverage an individual may receive.

• Preventive Health Services. The Act requires that all new group-health plans and plans in the individual market provide first-dollar coverage for preventive services (i.e., not subject to a deductible). Examples of preventive services include well-childcare visits and certain immunizations.

Effective January 1, 2011
• W-2 Reporting. The Act requires employers to disclose the value of the benefit provided by the employer for each employee’s health-insurance coverage on the employee’s annual Form W-2. This is a W-2 reporting obligation and will not result in additional taxable income to employees.

• Additional Tax for Health Savings Account (HSA) Withdrawals. The Act increases the additional tax for Health Savings Account withdrawals prior to age 65 that are not used for qualified medical expenses from 10 percent to 20 percent.

• Medicare Part D. The Act provides a 50-percent discount on all brand-name drugs and biologics in the “donut hole” and begins phasing in additional discounts in brand-name and generic drugs to completely fill the “donut hole” by 2020 for all Part D enrollees.

Effective January 1, 2013
• Healthcare Flexible Savings Accounts. The Act limits the amount of contributions to healthcare reimbursement flexible-spending accounts to $2,500 per year. No limit was previously imposed upon healthcare reimbursement flexible-spending accounts. This new limit will raise healthcare costs for employees with unreimbursed healthcare expenses in excess of $2,500 annually, to the extent the employee currently has a flexible-spending account that permits contributions in excess of $2,500—and would potentially create increased taxable income for employees.

• Limiting Deductibility of Executive Compensation for Insurance Providers. With respect to services performed after 2009, the Act limits the deductibility of executive compensation under section 162(m) of the Internal Revenue Code for insurance providers if at least 25 percent of the insurance provider’s gross premium income from health business is derived from health-insurance plans that meet the minimum creditable-coverage requirements. The deduction is limited to $500,000 per taxable year (as opposed to the typical $1,000,000 limitation) and applies to all officers, employees, directors and other workers or service providers performing services for, or on behalf of, a covered health-insurance provider.

• Medicare Part D. The Act eliminates the federal income-tax deduction for the 28-percent subsidy for employers who maintain prescription drug plans for their Part D eligible retirees.

• Itemized Deduction for Medical Expenses . The Act increases the income threshold for claiming the itemized deduction for medical expenses from 7.5 percent to 10 percent. Individuals over age 65 would be able to claim the itemized deduction for medical expenses at 7.5 percent of adjusted gross income through 2016.

Effective January 1, 2014
**Applies to Firms with 50 or more employees
• Promoting Employer Responsibility. The Act requires employers with 50 or more employees who do not offer health coverage to their employees to pay $2,000 annually for a “full-time employee” (an employee working 30 or more hours per week).

• The 50-employee threshold is based on the employer’s average number of employees on business days the preceding calendar year. Both full-time and part-time employees are considered in determining whether the employer has 50 or more employees; however, the number of part-time employees to be counted is determined by dividing the aggregate number of hours of service for those part-time employees for each month by 120. The $2,000 penalty then applies only to full-time employees.
• In order to encourage employers to expand beyond 50 employees, the first 30 employees are not included in calculating the applicable penalty amount.
• The penalty can also increase to $3,000 for a full-time employee receiving a federal tax credit in the exchange where the employer offers health coverage, but that coverage would be deemed “unaffordable” because the employee has to pay more than 9.8 percent of his or her income, or the employer contributes less than 60 percent of the actuarial value of the plan. Therefore, while employers are not required to offer health coverage under the Act, significant penalties may be imposed on those employers that do not offer it or that only offer health coverage deemed “unaffordable.”
• In addition, employers may still impose a waiting period for coverage without being subject to a penalty, but this waiting period may not exceed 90 calendar days.

**Note: firms with more than 200 employees must provide coverage, of which an employee can opt out.

Effective January 1, 2014 Continued
• Wellness Programs. The Act provides that employers can offer increased incentives to employees for participation in a wellness program or for meeting certain health-status targets. The Act permits rewards or penalties, such as premium discounts of up to 30 percent of the cost of coverage. Existing wellness regulations are limited to wellness incentives of up to 20 percent of the total premium, provided that certain conditions are met.

• Waiting Period. In addition, employers may still impose a waiting period for coverage without being subject to a penalty, but this waiting period may not exceed 90 calendar days.

• Exchanges. The Act provides for the creation of health-insurance exchanges at the state level in 2014, where individuals and small employers would be able to buy health coverage in a manner similar to that of larger employers. Initially, the state exchanges would be open to individuals and small employers with 100 or fewer employees, unless the state opts to limit this to organizations with 50 or fewer employees. Beginning in 2017, states would have the option to expand the exchange to larger employers.

Effective January 1, 2018
• High-Cost Plan Excise Tax. The Act imposes a nondeductible excise tax of 40 percent on insurance companies and plan administrators (including self-insured plans) for any health-insurance plan where the combined annual employer/employee premiums exceed the threshold of $10,200 for self-only coverage and $27,500 for family coverage. The tax would apply to the amount of the premium in excess of the threshold. An additional threshold amount of $1,650 for singles and $3,450 for families would be available for retired individuals over the age of 55 and for plans that cover employees engaged in high-risk professions (e.g., law-enforcement professionals, EMTs, construction and mining).

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The HIRE Act mmediately enhances employers’ cash flow by allowing employers to retain the employer portion of Social Security Tax. Read on as to be sure that you don’ t miss this opportunity as an employer to receive increased tax credits and payroll tax exemption.

With the recent passage of the Patient Protection & Affordable Care Act (H.R. 3590) and the Health Care & Education Affordability Reconciliation Act of 2010 (H.R. 4872), some employers may already be planning to limit growth as to not be affected by certain mandates of the new legislation. To comfort the fretting business owner, some alleviation has been signed into legislation in the form of tax credits.

On March 19, President Obama signed into legislation the Hiring Incentives to Restore Employment (HIRE) Act that creates a tax credit for the hiring of new employees. The law includes a payroll tax exemption and increased tax credits for employers that meet certain eligibility requirements. Under this new law, an employer that hires an employee after February 3, 2010 and before January 1, 2011, can receive a tax credit equal to the employer’s portion of the Social Security Tax. All employers, excluding government employers, are eligible to receive the credit. Public Institutions of higher education are the only government institutions that qualify for the tax credit.

To qualify for the 6.2% Employer Social Security Tax exemption under this legislation, an employer must hire an employee who has not been working for 40 hours per week for the past 60 days and whose 2010 earned wages after March 18, 2010 and before January 1, 2011 do not exceed $106,800. The exemption has no limit as to the total amount of benefits that can be claimed by an employer. An employer can save up to $6,622 per qualifying working no matter how many employees are hired.

In consideration of tax credits, employers will receive the lesser of $1000 or 6.2% of wages paid to the qualifying work. In order to qualify, an employee must have been hired after the initial start date (February 3) and remained on payroll for 52 consecutive weeks. Wages for the last 26 weeks of the period may not drop below 80% of the wages paid the first 26 weeks. Each eligible employee is expected to verify status per signed affidavit, under penalties of perjury, he or she has “not been employed for more than 40 hours during the 60-day period ending on the date such individual begins such employment.”

The legislation also encourages employers to hire sooner rather than later as the tax benefit will be greater. Neither the 6.2% Employer Social Security Tax exemption nor the retention tax credit is permitted if a person is hired to replace another employee, “unless such other employee is separated from employment voluntarily of for cause.” Additional benefits in the new legislation include: an allowance for small businesses to expense up to $250,000 of their taxable income through the end of 2010, an expansion for the eligibility of “Build America Bonds,” and it extends surface transportation policy through December, providing $19.5 billion for road construction and other infrastructure projects under the Highway Trust Fund.

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The bill was unanimously passed by both the Senate and Assembly and updates the provisions of Wisconsin Act 189, which established the original regulatory framework for PEOs. The PEO market has grown substantially since passage of the statute in Wisconsin in 2007. The average PEO serves approximately 200 business clients and 4,000 workers.

“PEOs assume a wide variety of significant employer responsibilities for these small employers, including the delivery of risk management services, said Michael Gotzler of Madison headquartered QTI Human Resources Inc. “They also pay the wages of worksite employees, manage payroll tax payments and compliance, improve compliance with federal and state labor regulations, share human resource management best practices and sponsor many employee benefit programs including health care and retirement savings plans. Ironically it is this shared or co-employment arrangement that lead to the need to clarify that tax credits and economic benefits offered by local government belong to the client and not the PEO.”

Melinda Heinritz, executive director of the Wisconsin Historical Foundation and long-time PEO client of QTI Human Resources, explained, “We rely heavily on the services and expertise of QTI to help us effectively navigate all aspects of human resources management. Doing so allows the Foundation to focus time and energy on fulfilling our mission and executing our core competencies in marketing, membership and fundraising on behalf of the Wisconsin Historical Society.”

Gotzler worked with the PEO industry’s trade association, the National Association of Professional Employer Organizations (NAPEO) and the Department of Regulation and Licensing to ensure the original intent of the act provided a layer of safeguards and oversight for small business owners and their employers in PEO outsourcing arrangement. Under the original law, PEOs were wrongly classified as temporary help agencies leading to some of the administrative confusion.

As in 34 other states, PEOs in Wisconsin are required to maintain minimum financial standards, file annual audited financial statements, and register with the Department of Regulation and Licensing.

NAPEO says the concept of regulating PEOs is not a new one. The provisions contained in this bill are based on model legislation. “Over the past 25 years, these standards and requirements have been tested and refined to strike the balance of the need for responsible regulation,” said Milan Yager, president and CEO of NAPEO. NAPEO represents the $68 billion industry, which has experienced double digit growth for the past five years.

The bill was sponsored by Senator Bob Wirch and led through the Assembly by Representative Steve Hilgenberg, who introduced companion legislation Assembly Bill 716.

About NAPEO

As the recognized Voice of the PEO Industry,® NAPEO represents nearly 400 professional employer organizations (PEOs). The PEO industry has matured to $68 billion with double digit growth annually since 2004. As NAPEO enters its 25th year, the potential market remains promising with high client retention rates, a projected increase in revenues for 2010, and the current untapped market now serving 300,000 business owners and 2 to 3 million workers. PEOs allow clients to “reduce costs and free up time to devote to revenue generating activities, improvements that can be instrumental to gaining competitive advantage,” according to research by the Society of Human Resource Management Foundation. To learn more about how PEOs contribute to small businesses’ success, visit the NAPEO Web site at www.napeo.org.

About Staff One

Founded in 1988, Staff One is a leader in the Human Resources
Outsourcing industry with an ESAC accredited and bonded PEO service
offering. The Company is a preferred provider of outsourced human resources
management services that include, benefits and payroll administration,
health and workers compensation insurance programs, personnel records
management, employer liability management, employee performance management
and employee training and development services to small and medium-sized
businesses. Staff One is headquartered in Durant, Okla., with offices
in Dallas, Little Rock, Ark., Nashville, Tenn., and Tulsa, Okla. For
more information, visit www.staffone.com.

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While an employer’s first reaction may be to try and limit March Madness related activities in the workplace, there are definitely a few things to consider before taking any action against tournament involvement. First, denial of participation could be seen by employees as overbearing and in opposition to a fun work environment. Employee morale is crucial for productivity, and would therefore seem counterintuitive for employers hoping to retain a high level of productivity to discourage participation in an activity considered somewhat of a sports holiday. Instead of discouraging involvement and risking a discontented office, consider using March Madness to your advantage. There are many different ways an employer or manager could use the NCAA tournament as a way to improve employee morale and create a stronger sense of camaraderie throughout the workplace:

1. Create an online, office-wide bracket.
Creating a bracket on a website such as ESPN.com or Yahoo! Sports would eliminate the need to create, hand out and fill in paper brackets. Encourage people to participate only if they would like, and if the employees would like to have a buy-in for competitive purposes, we suggest the money go towards a charity or non-profit organization of the winner’s choice.

2. Offer small, fun and/or personalized prizes for top placers.
An already stated prize would not only encourage friendly competition and participation, it would also help to discourage against illegal gambling in the workplace. Some example of appropriate prizes may include gift certificates, a favorite team souvenir, or perhaps a meal on a supervisor’s tab.

3. Offer flexible hours and dress code allowances when appropriate.
A possible solution to the distraction of an early evening game could be a flexible work week. Also, since Fridays are often considered a more causal day in the workplace, employees could be encouraged to wear a tie, jersey or even socks to show where their hopes and loyalties lay within the tournament.

4. Encourage watching the tournament as a group
Many workplaces allot for short breaks throughout the day. Encourage employees to gather to the TV in the break room (or at single designated computer as to not take up too much bandwidth) during those times. One could even promote a potluck lunch, catering or group gatherings after work to watch the game together.

5. Designate times to stay involved and keep the competition alive.
A bi-weekly e-mail or short announcement at the end of an informal meeting discussing up-to-date results would help to discourage employees from constantly tracking brackets while at work and would also help the manager or supervisor to stay involved.

While this list is not at all exhaustive, these are a few simple ways to take what is consistently seen as a drag on productivity and turn it into a way to promote a healthier and more enjoyable work environment. For more information or any questions, contact Staff One at 1-800-771-7823 or visit www.staffone.com.
Founded in 1988, Staff One is a leading Human Resources Outsourcing firm with an ESAC accredited and bonded PEO service offering. Staff One operates as a full-service human resources department and delivers a comprehensive range of solutions that provides our clients with a level of support and value previously only available at much larger companies. By aggregating the buying power of hundreds of firms, we provide premium benefits, risk management, compliance management, payroll outsourcing, tax administration and strategic HR services to our customers, so they can focus on growing their core business.

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Generally speaking, an employer obtains the right to monitor internet usage, e-mails, and phone calls in the workplace without the consent of the employee. In 1986 Congress passed the Electronic Communications Privacy Act (ECPA). The act states that one is liable if they “intentionally intercept, use or disclose any wire, oral or electronic communications.” However, there are many exceptions to the ECPA such as the consent exception, business use, and provider exception that leave the issue of employee privacy open to broad interpretation. There are certain circumstances where employees may have rights.

For example, if an employer is monitoring phone calls and realizes the call is personal, they must stop monitoring the call immediately. However, if the employer has told employees not to make personal calls on business phones, then the employee takes the risk that those phones may be monitored. Also, union contracts may limit an employer’s ability to monitor e-mails or phone calls. There also may be additional rights in the state of California.

The fact is, three out of four companies monitor employee activities in one form or another. 63% of those companies track internet use, 47% review e-mails, 15% use video surveillance, 12% monitor phone calls, and 8% review voicemail messages. Employees need to be aware that they can be monitored if they are using company property such as computers and phones. Over the last couple of years, social networks have become increasingly popular and a growing concern for employers. The concern that employers are losing productivity has caused an increase in electronic monitoring.

Because workplace privacy laws are few and weak, employers can monitor employees, and there is virtually little to no protection. So with that, a good general rule is to assume someone is watching and don’t take any chances! Take personal calls on a cell phone and use your personal computer for personal use.

References:

http://www.workplacefairness.org/sc/privacy.php

http://www.privacyrights.org/fs/fs7-work.htm

http://jobsearchtech.about.com/od/laborlaws/a/work_privacy.htm

http://www.llrx.com/congress/090400.htm

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So how does an employer stay competitive without spending a lot of money?  There are several things employers can do that cost little, but can go a long way in eye of an employee.

1.       Communicate.

Communication creates a sense of security for an employee.  Not only communication about operations and product offerings, but culturally and structurally as well.  If people feel that they have a good understanding of where the company is going and how it is going to get there, they are generally more connected and invested in it.  Communication creates a purpose and meaning to come and work every day.

2.       Be flexible.

Increasing flex-time or being more flexible with work schedules is a great way to add value in the eye of the employee.  Being aware of the scheduling needs of employees and then trying to meet those needs creates a loyalty and appreciation to your company.

3.       Recognition and Rewards.

Recognizing a job well done or rewarding employees that have just finished a project shows that they are appreciated for their efforts and it is noticed.  Rewards could be anything from an extra vacation day or a gift card to a restaurant.  They don’t have to cost a lot to have a significant impact.

These are just a few ways employers can keep their employees productive, content, and loyal through wage freezes or layoffs.  Eventually the economy will turn and the last thing an employer needs to worry about when this happens is finding good employees.  Remember, investing in the your human capital doesn’t have to cost much, but will pay huge dividends in the future.

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In order to draw valid conclusions from the information, exit interviews should be conducted with all separating employees, whether voluntary, discharged, or laid off. To ensure 100% participation, the best way to conduct an exit interview is in person, one on one. If the in-person contact is not feasible, the interview should be conducted by telephone. A third option, which is by far the least effective, is to have the former employee complete a mail-in questionnaire.

Whoever conducts the interview should be a member of management, but not involved in the employee’s day-to-day supervision if possible. Give the separating employee a copy of the questionnaire to follow as you ask the questions and write out the responses. Interpret the employee’s words objectively. Throughout the interview, clarify, summarize, and verify your understanding of the employees words. Upon completing the interview, have the employee read what youve written to verify accuracy or make changes.

When conducting an exit interview with a discharged employee, don’t ask why the employee is leaving, but do ask all questions that are appropriate. Begin the interview by asking, “How might we have prevented this situation? or What could management have done differently to prevent you from losing your job?” A discharged employee may give angry replies, but the information is no less important. In fact, discharged employees are often more candid in their feedback than those who voluntarily quit and are concerned about burning bridges.

Exit interviews provide important information about turnover statistics. Even if you lose only one person a year due to turnover, always conduct exit interviews so you can begin to establish a historical body of data. Group questionnaires by department or employee classification can be used to identify important trends.

To conduct an effective exit interview, keep the following suggestions in mind:

• Arrange the interview as one of the employee’s last activities.
• Ensure confidentiality and privacy.
• Encourage employees to speak candidly. If employees are hesitant, offer them the option of writing their thoughts.
• Collect all company property, such as keys, handbooks, uniforms, etc.
• Wish the employee well on future endeavors.

For assistance with terminations or exit interviews, contact your Staff One Client Service Executive.

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On August 27th, U.S. Citizenship and Immigration Services (USCIS) announced that the Office of Management and Budget has extended its approval of Form I-9 (Employment Eligibility Verification) to Aug. 31, 2012. Consequently, USCIS has amended the form to reflect a new revision date of Aug. 7, 2009.

Employers may use the Form I-9 with the revision date of either Aug. 7, 2009 or Feb. 2, 2009. The revision dates are located on the bottom right-hand portion of the form.

Staff One clients should begin using the revised I-9 form for all new hires, effective immediately. The new form can be found at www.staffone.com

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It is rare that so many business and personal issues for a PEO and its clients and employees align as perfectly as they do now; let me explain.

1. The severity of the current recession has dramatically affected personal behavior in one important area – saving. A few years ago America had a negative savings rate, meaning that most spent more than they made. Today, the savings rate exceeds 7%. There is no more efficient and cost-effective way to save than through a 401k. Employees want it; soon they could be demanding it.
2. The greatest value proposition offered by a PEO is arguably the 401k. It leverages the big company benefit to the small employer virtually like no other benefit. Most small companies do not have retirement plans because of the cost, complexity and simply the hassle-factor. The PEO overcomes all of these problems.
3. In this time of shrinking payrolls and tight budgets, the PEO is vulnerable to losing clients. Our studies prove that a client company is five times more likely to stay with you than leave if our 401k plans is in place.

If your 401k plan is under-performing or is just a non-factor most of the time, you are likely missing a great opportunity to better market to new clients and retain current clients. The alignment of personal needs of employee, a greater value proposition to client company owners and finally to you in retaining clients exists right now.

John Slavic
President of Slavic 401(k)

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H1N1 and Seasonal Flu Vaccines
Aetna will cover H1N1 flu vaccine administration for members whose benefit plan covers preventive services, just as we have always covered the seasonal flu vaccine. We will pay for one or two doses of the H1N1 vaccine, based on recommendations of the Centers for Disease Control and Prevention (CDC).

The federal government will pay for the H1N1 vaccines and the supplies needed to administer them. Aetna will reimburse providers for administration of the vaccine.

State and local public health departments will designate which public and private sites will be given the vaccine. Public sites could include public health clinics and clinics located in schools. Private sites could include provider offices, workplaces or retail settings. Aetna is encouraging participating providers to register with their state’s Department of Health to become vaccinators. A number of retail sites, including Minute Clinics/CVS, Take Care Health, and RediClinics, also are expected to be vaccinators. We will encourage our members to seek vaccines at any of these available outlets (note that emergency rooms are not the appropriate place to seek vaccines).

Employers can seek to be designated by their state or local public health department as vaccinators and have vaccine shipped to them, or they can hire a commercial designated vaccinator that will provide the vaccine on-site. We expect that at least some of the corporate seasonal flu shot vendors used by Aetna will be able to offer H1N1 vaccines at employer worksites, but this may vary by state. We can share more information on this once the vendors are able to register and be designated as vaccinators by the states.

It is expected that each person will need to have two H1N1 vaccines, three to four weeks apart. A separate vaccine is needed for the seasonal flu.

Primary target groups for H1N1 vaccination will be:

• Pregnant women
• Contacts of infants <6 months old
• People 6 months to 24 years old
• Health care workers/emergency personnel
• Adults under 65 years old with high-risk medical conditions
• The next group after this is healthy adults 25-64 years old
• The final group is adults 65 and older
• Aetna will rely on providers to make determinations about when an individual should receive the vaccine, in accordance with CDC guidelines.

Should any of your plan members become ill, we treat H1N1 as any other disease under all of our plans. We do cover the prescription drugs Tamiflu and Relenza, which can be used to treat the H1N1 virus.

Updated Guidance for Businesses and Employers

Your own organization is probably working to ensure it has its own plans in place to deal with H1N1. Updated federal guidelines offer businesses and employers a range of options for responding to 2009 H1N1 influenza, depending on how severe the flu may be in their communities. The guidance says business planners should assess their business functions to determine the threshold of absenteeism that would be potentially disruptive and plan ahead to take increasing measures as absenteeism escalates toward those thresholds. More information and helpful communications for employers are available at:

• CDC Guidance for Businesses, Employers, and Workplaces to Plan and Respond to 2009 H1N1 Influenza
• Preparing for the Flu: A Communication Toolkit for Businesses and Employers

If you would like information on Aetna’s business continuity planning, please see our Overview of Aetna’s Preparedness for Pandemic. This section of the employer site on aetna.com includes a high-level look at Aetna’s business continuity plans for a pandemic, as well as frequently asked questions on our preparations and a list of resources.

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If you have not filed a prior year tax return and are due a refund, you should consider filing the return to claim that refund. If you are missing a refund for a previously filed tax return, you should contact the IRS to check the status of your refund and confirm your current address.

Unclaimed Refunds

Some people may have had taxes withheld from their wages but were not required to file a tax return because they had too little income. Others may not have had any tax withheld but would be eligible for the refundable Earned Income Tax Credit.

• To collect this money a return must be filed with the IRS no later than three years from the due date of the return.
• If no return is filed to claim the refund within three years, the money becomes the property of the U.S. Treasury.
• There is no penalty assessed by the IRS for filing a late return qualifying for a refund.
• Current and prior year tax forms and instructions are available on the Forms and Publications web page of IRS.gov or by calling 800-TAX-FORM (800-829-3676).
• Information about the Earned Income Tax Credit and how to claim it is also available on IRS.gov.

Undeliverable Refunds

Were you expecting a refund check but didn’t get it?

• Refund checks are mailed to your last known address. Checks are returned to the IRS if you move without notifying the IRS or the U.S. Postal Service.
• You may be able to update your address with the IRS on the “Where’s My Refund?” feature available on IRS.gov. You will be prompted to provide an updated address if there is an undeliverable check outstanding within the last 12 months.
• You can also ensure the IRS has your correct address by filing Form 8822, Change of Address, which is available on IRS.gov or can be ordered by calling 800-TAX-FORM (800-829-3676).
• If you do not have access to the Internet and think you may be missing a refund, you should first check your records or contact your tax preparer. If your refund information appears correct, call the IRS toll-free assistance line at 800-829-1040 to check the status of your refund and confirm your address.

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The federal minimum wage will increase from $6.55 per hour to $7.25 per hour, effective July 24, 2009. Many states also have minimum wage laws. In cases where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher minimum wage.

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To further prove that immigration reform is still on the front burner, Immigration and Customs Enforcement announced its plan to implement a nationwide audit of employer I-9s.

ICE announced that it’s drawing up Notices of Inspection to review the I-9 records of 652 employers — names not released yet. In some instances, the notices will include subpoenas for records such as

>> quarterly wage reports
>> EINs
>> business licenses
>> correspondence from Social Security Administration regarding no-match letters, and
>> payroll data.

Employers whose I-9-related records don’t pass muster with ICE will then receive Notices of Intent to Fine. Also in the announcement, ICE officials said the audit is just a “first step,” so employers probably can expect more audits and inspections.

What happens if you’re contacted for an audit? Make sure you know:

The name and contact information of company legal counsel. If the company’s legal counsel is not in-house, there should be written instructions for personnel to contact outside counsel immediately.
Who, in HR or otherwise, will be the the company’s representative for the ICE investigation or audit. You’ll want all communication with ICE channeled through that person to avoid redundancy or contradictions in information.
The names of company managers who should be informed of an ICE investigation or audit.
And keep in mind:

>> An investigator may contact you and ask for an interview, but you have the right to refer the investigator to an attorney.
>> An investigator has no right to files and records without a search warrant or subpoena.
>> Once you’re informed of an intent to investigate, take special care to secure all related records. Destruction or loss of records after notification could be seen as an attempt to destroy evidence or sabotage the investigation.

Article: http://www.hrmorning.com/feds-launch-nationwide-i-9-audit/

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