• 70% of Employers are non-compliant with wage and hour laws, according to the Department of Labor (DOL).
• 2 out of 3 workplace-related lawsuits that go to trial are won by the employee.
• $10.3 Million: Civil penalties assessed against employers by the Wage &  Hour Division of the DOL in 2007.
• $220.6 Million:  Damages paid by employers for wage and hour non compliance in 2007.
• 11.2 Million:  The jury award against Mary Kay Cosmetics for classifying beauty “consultants” as independent contractors.
• $650,000:  The average jury award to plaintiffs for damages in workplace-related lawsuits.
• 88,846:  Number of violations recorded by OSHA inspectors in 2007, of which 67,176 were serious.
• $1 million: Potential per-occurrence fine for failure to safeguard personal/non-public information against identity theft under the Gramm/Leach/Bliley safeguard Bill.

http://www.dol.gov/opa/media/press/ebsa/EBSA20100056.htm

The federal Department of Labor’s Employee Benefits Security Administration establishes a final rule, effective Jan. 14, 2010, giving employers that have employee benefit plans with fewer than 100 participants a seven business day safe harbor period to deposit employee contributions to plans. Employers with retirement or welfare benefit plans subject to the federal Employee Retirement Income Security Act of 1974 must deposit employee contributions to plans on the earliest date that contributions reasonably can be separated from other employer assets. The safe harbor rule does not change ERISA’s requirement that employee contributions to welfare benefit plans must be made no later than 90 days after receipt, and employee contributions to retirement plans must be made by the 15th business day of the month following the month in which contributions are received.

President Obama, on Dec. 19, 2009, signed the Fiscal Year 2010 Defense Appropriations Act which includes amendments to the federal American Recovery and Reinvestment Act of 2009 that provided health care premium assistance for certain individuals. ARRA revised the federal Consolidated Omnibus Budget Reconciliation Act of 1985 to require employers with COBRA-covered group health plans to pay 65 percent of health care premiums for up to nine months for assistance eligible individuals who lose health care coverage due to employees’ involuntary employment termination between Sept. 1, 2008, and Dec. 31, 2009. The new law expands the duration of the 65 percent premium assistance from nine to 15 months, and extends premium assistance to individuals who lose health care coverage due to employees’ involuntary employment termination between Sept. 1, 2008, and Feb. 28, 2010.

Human resources outsourcing is a strategic move to improve the quality and flexibility of your workforce, while improving your organization’s ability to accommodate change and stay ahead of market forces. Today, many companies are outsourcing their human resource functions. The benefits affect owners and executives, HR managers and employees and can include cost savings, access to highly skilled professionals and advanced technology, which collectively result in a sustainable competitive advantage.

BENEFITS TO OWNERS & EXECUTIVES

• Reduce Liability - A single poorly handled employee incident can imperil your entire organization. Issues from wrongful termination to a hostile workplace need never be an issue in an organization that is doing all the little things necessary to prevent them. The problem is that many organizations are not aware of their responsibilities, and this can lead to disaster. Our clients sleep well at night knowing that these things are being professionally and competently handled.
• Increase Employee Productivity - Staff One implements strategic performance management plans for every employee in your organization which are aligned with your business goals. We then put systems in place to monitor, report and review the performance of each member of your team. Employees appreciate knowing exactly what is expected of them, and will rise to exacting standards when they know their performance is being measured and reviewed.
• Decrease Total Cost of Labor - Staff One will analyze your entire cost of labor from benefits, workers’ compensation, compliance management, payroll administration, low productivity and more, and find the places where your organization could be more efficient. Depending on the size of your firm, that could mean hundreds of thousands of dollars a year in savings.
• Increase Profits - Staff One’s strategic human resources solutions lower your overall cost of labor, and our performance plans and metrics mean your entire organization will be operating at higher levels of output.
• Strategic Decision Making - Making good decisions requires good information. Our HR systems management makes strategic planning and efficient allocation of scarce resources much easier for our clients.
• Reduce Turnover - One of the biggest hits to your productivity and profitability is employee turnover. Keeping good employees happy doesn’t happen by accident. It is planned! Our clients benefit from thoroughly planned and proven HR administration that dramatically reduces turnover. From recruiting the best people, to designing effective compensation plans, to regular performance reviews to training and development programs, we can help.
• Focus On Business - Staff One handles HR, freeing you up to focus on growing your business.

BENEFITS TO HR MANAGERS

• Focus on People - You got into human resources because of your dedication to your employees. But over time you spend more and more of your time on paperwork. It doesn’t have to be that way. Our proven systems reduce the paperwork dramatically. Get back to what matters – your employees.
• Reduce Workload - Imagine what your career would be like if you could eliminate or dramatically reduce the paperwork. You would have more time to focus strategically, instead of stomping out fires. Our web based HRIS system includes full employee self-service functionality. Your employees can access payroll records, W-2s, benefits plans, performance reviews, company policies and more any time of the day or night securely over the Web. How much time would that save you every day?
• Data Driven Management - We provide HRIS reliable reports specifically designed to keep you informed of all information critical to doing your job. Good information is critical to making good decisions.
• Eliminate Administrative Burden - Are the certain aspects of HR that you just don’t like? COBRA? FMLA? Regulatory compliance? We handle the things you don’t like so you can get back to focusing on your business.
• Keep Within Budget - You have budgetary responsibilities, and keeping within budget is critical to your success. We provide budget tracking reports that help you stay informed. Furthermore, our solutions may help cut your costs. We will also improve your organization’s productivity, which means you will have to hire fewer people in the future to get the same output.

BENEFITS TO EMPLOYEES

• “Big Company” Benefit Plans - Our benefits plan design and administration provides enhanced benefits to your employees without significantly increasing costs. An attractive benefit and compensation plan is crucial to attracting the best people.
• Clear Expectations - Employees truly appreciate knowing exactly what is expected of them. When communication between management and staff is clear, everyone benefits.
• 24-Hour Access To Records - Your employees will appreciate being able to access important data online securely any time of the day or night. They can see their own payroll records, personal profiles, learning and development resources and more.
• A Better Workplace - The goal of any HR Department is to provide a friendly and rewarding workplace for all employees. Employees who love their job and their company stick around and produce more.

The federal Equal Employment Opportunity Commission released on Oct. 22 a revised “Equal Employment Opportunity is the Law” poster (EEOC-P/E-1 (Revised 11/09)) that incorporates the federal Americans with Disabilities Act Amendments Act of 2008, the federal Genetic Information Nondiscrimination Act of 2008 (effective Nov. 21, 2009), and updates from the federal Department of Labor. Employers that are covered by federal nondiscrimination laws, such as Title VII of the Civil Rights Act of 1964, must display this poster in conspicuous places on their premises where notices to employees and applicants typically are posted. EEOC advises employers to post the new November 2009 version of the poster or display a supplement next to a prior version of the poster issued by EEOC (September 2002) or the federal Office of Federal Contract Compliance Programs (August 2008).

From Employee Benefit News

Employer and employees have a new resource that can be used to help battle obesity in the workforce. Earlier this year, the Centers for Disease Control and Prevention unveiled LEANworks!, a web site full of free resources for employers to develop wellness programs to address obesity. The site, www.cdc.gov/LEANWorks, includes research reports, case studies, ROI information, and an obesity calculator. It features how -to information about assessing the needs of the workforce, developing an effective program, setting goals, budgeting, and strategies for implementing and promoting the program.

With the unemployment rate at more than 9%, talk of layoffs, and the closing of numerous businesses, it’s easy to see why many organizations are tightening their reins.  However, it is important to maintain, or create, an atmosphere of security, flexibility, and contentment for employees especially during an economic crisis.  The temptation may be to put more emphasis on the bottom line than on those that create the bottom line.  This could create more cost than you think.  For example, turnover rates for 2008 (both voluntary and involuntary) averaged 18.7%.  According to Watson Wyatt, total turnover costs including hard dollars and lost productivity are approximately 48% – 61% of salary.  If a company has 60 employees with an average salary of $40,000, that could mean a cost of $215,424 to $273,768!

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.

Effective Nov. 6, 2009, the federal Department of Homeland Security rescinds the safe-harbor procedures for “no-match” letters. DHS is taking such action to focus its enforcement efforts on improving verification of employee authorization to work in the United States through DHS programs such as E-Verify and IMAGE. As part of that effort, DHS filed a stipulation on July 9, 2009, to withdraw its support for the safe-harbor procedures with the U.S. District Court for the Northern District of California; the court issued a preliminary injunction on Oct. 10, 2007, that blocks implementation of the procedures that were to be effective on Sept. 14, 2007 (AFL-CIO v. Napolitano, N.D. Cal., No. C 07-4472 CRB, stipulation filed 7/9/09).

On October 9, 2008, President Bush signed “Michelle’s Law” (H.R. 2851) designed to ensure that dependent college students who take a medically necessary leave of absence do not lose health insurance coverage.

The law was named after Michelle Morse, a college student who suffered from cancer and continued her course load, against the advice of doctors, in order to remain covered by health insurance.

Michelle’s law provides that a group health plan may not terminate a college student’s health coverage simply because the child takes a medically necessary leave of absence from school or changes to part-time status. The leave of absence must:

• Be medically necessary;
• Commence while the child is suffering from a serious illness or injury; and
• Cause the child to lose coverage under the plan.

To take advantage of the extension, the child must have been enrolled in the group health plan on the basis of being a student at a post-secondary educational institution immediately before the first day of the leave. Coverage must extend for one year after the first day of the leave (or, if earlier, the date coverage would otherwise terminate under the plan). The student on leave is entitled to the same benefits as if they had not taken a leave. If coverage changes during the student’s leave, then this new law applies in the same manner as the prior coverage.

Physician’s Certification and Notice

The group health plan must receive written certification by the child’s treating physician stating the child is suffering from a serious illness or injury, and the leave (or change of enrollment) is medically necessary. In addition, when sending any notice describing the plan’s student certification requirements for coverage, the plan also must include a description of the terms for continued coverage under this law.

Michelle’s Law is effective for plan years beginning on or after October 9, 2009.

Learn more at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_bills&docid=f:h2851enr.txt.pdf

From MHA

On September 5, 2009, President Obama and Treasury Secretary Timothy Geithner announced a set of new initiatives designed to encourage retirement savings. The new guidance expands opportunities for automatic enrollment in 401(k) and other retirement plans and enables employees to contribute amounts representing unused vacation or similar leave time to retirement plans (including 401(k) plans). The guidance also updates the IRS’s model rollover notice. The IRS also issued Special Edition Newsletters of both Employee Plans News and Retirement News for Employers with information about the changes.

Automatic Enrollment

• Revenue Ruling 2009-30. This ruling addresses automatic enrollment in 401(k) plans that contain a feature under which employee deferrals to the plan automatically increases each year without an affirmative election by the employee. The ruling describes two situations-one involving a basic automatic contribution arrangement and the other involving an arrangement intended to satisfy the requirements for a qualified automatic contribution arrangement (QACA) and an eligible automatic contribution arrangement (EACA).

Click here to view Revenue Ruling 2009-30

• Notice 2009-65. This notice contains two sample plan amendments to facilitate the use of automatic enrollment. The pre-approved automatic enrollment language will allow employers to amend their plans to adopt automatic enrollment more quickly-and without the need for case-by-case approval from the IRS. The notice states that plans are not required to adopt either amendment verbatim.

Click here to view Notice 2009-65

• Notice 2009-66 and Notice 2009-67. These companion notices provide guidance and a sample amendment, respectively, for including an automatic contribution arrangement in SIMPLE IRA plans.

Click here to view Notice 2009-66 or Click here to view Notice 2009-67

Unused Vacation or Other Similar Leave

• Revenue Ruling 2009-31. This guidance illustrates two situations in which the dollar equivalent of unused paid time off (PTO) can be contributed to an employer’s profit-sharing plan without adversely affecting the plan’s qualified status.

Revenue Ruling 2009-32. This guidance addresses similar contributions at termination of employment.

Click here to view Revenue Ruling 2009-32

Updated Model Rollover Notice under Code Section 402(f)

• Notice 2009-68. This notice simplifies the presentation of an employee’s options when receiving an eligible rollover distribution. It provides a rollover roadmap that satisfies the required notice that must be provided to employees taking their retirement assets. The notice also reflects law changes (such as information on a distribution from a designated Roth account under an employer plan) and explains rules that apply in special situations (such as when a distribution is made to a surviving spouse or other beneficiary).

Click here to view Notice 2009-68