Did He Really Say That?

Another update from the Jungle….

Erica is interviewing for a job as the HR manager for a small privately held company. Erica heard about the job opening from a friend. She is looking for a change after growing bored with her current employer.

Erica is capped on pay and promotions with her current employer unless her boss dies or retires, neither of which seems likely. Months ago, Erica suggested a special project working with IT to upgrade some of the creaking systems that slow down productivity and offered to lead the project task force. Her offer was rejected by her boss and her boss’s boss, leaving Erica with the impression that they weren’t serious about productivity gains or keeping her engaged as an employee.

So Erica decided to move on. She applied for the HR manager opening and was invited in for an interview. At the interview,
she waits in the shabby lobby for 20 minutes past the time her interview is scheduled to start. Finally,a man in his late 60’s steps in to the lobby to invite her to the conference room for the interview.

In the conference room, Erica blinks as she gets a closer look at her interviewer. He looks like an
extra from the Godfather movies with chunky gold rings on both hands and a large gold watch. His shirt is open half-way down his chest displaying gold chain necklaces. In a voice roughened by cigarettes and cheap whiskey, the man explains that he’s looking for an HR manager to keep the “government off his back”.

Erica asks if his company’s employment practices were audited by a government regulator but he brushes aside the question. He says that companies like his would be a lot more successful if the government would stop interfering and telling him how to run it. Then he explains that he’s had trouble in the past hiring women because “they start with single coverage on the medical plan but next thing you know, they’re on the family plan”.

What should Erica do next?

She can call him a dinosaur, list all the federal and state employment laws he’s violated during the interview and storm out of the room.
She can expend a lot of effort trying to get the job since the company obviously needs all the HR help it can get.
She can send the owner a bottle of cheap scotch after the interview to thank him for his time and pray that he doesn’t offer her the job.

In the actual situation, the interviewer never made a job offer. The interviewee continues to congratulate herself on one of the narrowest escapes of her professional career.

If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.

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Halloween is a Scream

Another update from the Jungle….
Nicole is the HR manager for her company and she’s had a tough time for the past few years. Her company avoided layoffs but they haven’t given pay raises in years. Nicole tries to find other ways to boost employee morale.

This month’s morale booster is a Halloween party on the Friday closest to October 31^st. Nicole emails employees encouraging them to come in their favorite costumes and compete for prizes. Poor Nicole! Even after years of experience in the HR world, she’s still a bit naïve.

Her email has barely hit the company’s intranet when Steve slouches in to her office to complain that he won’t attend the party if he has to wear a costume. He also demands that suitable adult beverages be served at the party. Nicole isn’t that naïve. She vetoes alcohol.

Then Ruth walks into her office to say that her church forbids Halloween parties because they encourage worship of the devil. She threatens to sue for religious discrimination if she’s forced to attend the party. Ruth also says that competing for prizes is gambling which is prohibited by her faith, state law, and the employee handbook.

After a quick review of company policy, Nicole concludes that prizes of nominal value won’t result in her arrest, so she forges
ahead with her party plans. Friday arrives and Nicole decorates the break room with the help an elf, a 1930’s railroad hobo, and a clown. Then she rewards herself with a glass of (non-alcoholic) punch as she watches the employees file in for the party.

Suddenly, her glass of punch slips from her hand and she stifles a scream as she watches Tina sashay into the break room. Tina is wearing three-inch stiletto heels and a scanty outfit modeled on Elvira, Mistress of the Dark.

What should Nicole do next?

She can ask Steve to find the nearest liquor store and buy her a restorative drink to help her recover from the shock of seeing Tina.
She can award Tina the prize for most innovative costume.
She can escort Tina from the break room before the president sees his CIO decked out like a (high end) call girl.

Has your company ever held a holiday party that went awry? Stay tuned for more adventures as Nicole navigates through the holiday season this year.

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It’s Back Again!

Another update from the Jungle….

Michelle owns a small business of 35 employees that is slowly expanding. She’s ignored the Affordable Care Act (ACA) ever since she realized that her company was too small to be subject to the employer penalty. Besides, she has other concerns, such as finding new markets for her company so that it can continue to grow.

However, her employees like having benefits, including health coverage. Last year, Michelle encouraged her employees to obtain individual health policies because she couldn’t afford a group health plan. Now the issue has arisen again as the annual open enrollment period for the Exchange approaches on November 1^st.

Michelle would like to offer a group health plan because she thinks it would be a nice perk for employees. But she’s heard other small business owners complain about increased premium costs.
She’s afraid she can’t afford a group plan this year either.

She does a quick survey of her employees. She learns that 15 of them have coverage through their spouses. One employee is an early retiree covered under a former employer’s plan. Another employee is eligible for Medicare. Part-time workers wouldn’t be eligible for coverage in an employer’s group health plan under the ACA rules.

That leaves a grand total of 12 employees who are interested in a group health plan. Of the 12 employees, several could qualify for a subsidy from the Exchange based on their income and family size.

What should Michelle do next?

She can ignore the issue completely since her company is not subject to the employer penalty.
She can ask her insurance agent to give her information on a group health plan option for the 12 employees who are interested in coverage.
She can arrange for an insurance agent to come to her work place to help employees choose individual health policies, through the Exchange or outside the Exchange.

There are no easy solutions for small employers regarding health coverage. Small employers may find that not offering a group health plan actually helps their lower income employees to qualify for a subsidy through the Exchange. On the other hand, any employer offering a group health plan may use a business tax deduction to offset part of the cost of the plan. An experienced insurance agent or producer can help small employers assess their options.

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New Job; Old Baggage

Another update from the Jungle….
Betty started a new job about six months ago but already the old patterns are starting to repeat. Betty’s last job became so unbearable that she quit. Now she seems to be headed down the same path again.

At her last job, a clique of female co-workers proved that Heathers don’t get nicer as they grow up; they just get older. They made Betty miserable. They invited her to lunch during her first week on the job for the apparent purpose of mocking her interests and lifestyle. That was the beginning of a long campaign of passive aggressive behavior aimed at undermining Betty.

When Betty complained about misplaced files or sabotaged resources, her clueless boss labeled her a complainer. Betty didn’t want to be best friends with the clique but in a small office it meant she was isolated and alone. Betty’s confidence eroded and her performance suffered. When her performance review assessed her as “not a team player”, Betty took the hint
and found her current job.

Unfortunately, the old baggage came with her. She knows some of her new co-workers think she’s a snob for declining lunch invitations and not participating in the monthly office birthday parties. But Betty’s cautious of getting to know her new co-workers because she’s afraid of meeting a new group of Heathers.

Today, an HR rep asked Betty to stop by. At their meeting, the HR rep asked Betty how she liked her office, her workload, and how she was getting along with her colleagues. Betty gave a non-committal answer. Then the HR rep asked Betty if she would like to participate in a new mentoring program which was created to help new employees integrate into the company.

What should Betty do next?

She can decide based on her past experiences that she will “fail” at this job so she should quit now and join a commune in Alaska.
She can start looking for another job hoping that things will be different next time.
She can accept the invitation to join the mentoring program, increasing her chances of having a satisfying career with her current employer.

In the actual case, the first employer had no mentoring program because the owners were not convinced that touchy-feely programs contributed to the bottom line. Consequently, they experienced a high level of employee churn and were eventually acquired by a competitor.

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Get Rid of Him!

Another update from the Jungle….
Doug is getting close to retirement age after a long, not very distinguished, career. He’s still the consummate professional but it’s obvious that all is not well with him. He is out sick at least one day a week and he doesn’t do much work on the days he is in the office.

Doug’s problems are becoming a headache for Suzy, the HR manager. Suzy likes Doug; he’s always polite and respectful which is not true of his pushy boss. The pushy boss has ordered her to find a reason to fire Doug. Suzy privately thinks the pushy boss wants to make his budget look better by dumping Doug for a less experienced and lower salaried employee.

Suzy begins discrete inquiries of Doug’s behavior and job performance. His friends tell Suzy that Doug suffers from anxiety
attacks and depression. Doug’s anxiety attacks worsened when he was moved into an office on the 15^th floor with a wall of windows. Doug has a fear of heights.

Doug’s also having trouble remembering things. Yesterday, Suzy overheard a junior team member
talking to Doug about a client problem. When Doug said the problem sounded familiar, his junior replied, “It ought to; it’s your client”.

Today Suzy is meeting with Doug’s boss. She suggests that Doug should be moved to an interior office but the boss says no; senior people like Doug must have a window office. Next Suzy asks for examples of Doug’s work that show he can’t do his basic job description. The boss has none. In fact, Suzy already knows the boss gave Doug a tepid, but positive, performance review.

What should Suzy do next?

She can tell the pushy boss that he’s a dingbat for trying to fire an older worker who is obviously still competent and who has not received a negative performance review.
She can read up on the definition of “disability” in the Americans with Disabilities Act in case Doug decides to ask for an accommodation.
She can verify that the company has employment practices liability insurance because her gut instinct is that Doug’s boss is about to demonstrate the need for such coverage.

In the actual case, the older worker eventually took early retirement based on health reasons and faded away without raising any of the legal issues that were available to him. The pushy boss was promoted which allowed him to be pushy to a greater number of people simultaneously.

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They Didn’t Like Her Looks

Another update from the Jungle….

Alana walked into the break room to refill her coffee mug and stumbled into a raging war. A group of co-workers were arguing about the merits of the presidential candidates. Alana sidled toward the coffee maker regretting that she didn’t send her assistant to check if the coast was clear.

The political argument covered familiar ground. Several co-workers scoffed that Carly Fiorina is ugly and unattractive and so she shouldn’t be president. Another co-worker chimed in criticizing the physical appearance and business sense of Hilary Clinton. Both women were criticized for fashion faux pas.

Aside from a few cracks about Donald Trump’s hair, the male candidates were judged on their prior experience and ideas.
The argument focused on the conservative credentials of the male candidates but no one criticized their suits or their ties.

Alana grabbed her mug and trudged back to her office reflecting that some things never seem to change. The women candidates are judged on their physical appearance and not their ideas or abilities. Alana thought about other women presidential candidates. In 1972, Shirley Chisholm’s campaign was dismissed with a smile. In 1984, Geraldine Ferraro’s qualifications as a vice presidential candidate were buried under stories about her husband’s alleged Mafia connections. (He was Italian-American from New York and owned a construction business.)

Alana’s the HR director for her company and she conducts many interviews to screen job applicants. The interviews require her to judge job candidates based on appearance, how well they prepare for the interview and their prior work experience. Inevitably, some job candidates lose the chance to move to the next stage of the hiring process because they don’t look or act “right” in the initial interview.

Alana knows that rejecting a job candidate almost always involves her biases, good and bad. She also knows that there are many ways to explain why a candidate was rejected that appear neutral and unbiased.

What should Alana do next?

She can resign her job and go live in a cave with no wi-fi until after the presidential election next November.
She can create a new HR policy banning political discussions in the break room.
She can accept the reality that we are judged on our appearance and recognize how her personal biases influence her hiring recommendations.

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The Slob Next Door

Another update from the Jungle….

Judy was excited about her new job. She targeted the company for employment after reading the corporate social responsibility blurb on their company website. During the interviewing process, the HR people seemed impressed by her accomplishments and she was impressed by their description of the charitable causes supported by the company.

Judy moved into a cubicle with a window view (of the parking lot) and prepared to work for a company with a conscience. Judy set to work with energy and enthusiasm, sure that she had found the perfect employer. But, alas for Judy, the dream job quickly ended. A slob moved into the cubicle next to hers.

The slob’s cubicle overflowed with work papers, empty candy bar wrappers and gum wrappers. The slob guzzled caffeinated drinks all day and left the empty cans lying around his cubicle, creating a sticky mess that oozed into the corridor between rows of cubicles.

All those caffeinated drinks also made the slob twitchy. He thumped and bumped against the cubicle walls so that Judy sat in a mini earthquake zone. The slob listened to music on his iPhone but even with headphones, everyone in a ten-foot radius could clearly hear the music. The slob often cracked his gum in time to the music.

Judy made several attempts to politely ask the slob to turn down the volume on the iPhone, to not crack his gum, and to not hit the wall between their cubicles. Each time the slob apologized but promptly ignored her requests. Finally, Judy asked her boss to move her to a cubicle far away from the slob. Her boss told her to ask HR.

The HR rep said no other cubicles were available. She implied that Judy was not a team player after Judy pointed out that the slob was violating several HR policies on cubicle etiquette. Then the HR rep suggested that Judy should try to “work something out” with the slob. Judy left the HR meeting convinced that no one in authority cared about the slob next door.

What are Judy’s options?

She can train the slob the same way she trained her dog, spraying him with water each time he engages in “bad” behavior.
She can learn meditation techniques to help her deal calmly with the slob.
She can ask whether she wants to work for a company that brags about corporate responsibility while allowing a slob to ignore company policy and annoy co-workers.

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I’m Not His Employee

Another update from the Jungle….
Addison works for Rob, who has a consulting business. (We met Rob in last week’s post.) The work is sporadic and project-based but she likes it that way because she’s a free spirit. Addison worked for large corporations for many years and is happy to be on her own now.

She does project-based work for several businesses, including Rob’s, and also has a few clients of her own. She dislikes sales and prospecting for clients because she prefers to focus on the work. She likes working for Rob because he pays quickly and the projects allow her plenty of scope for imagination.

Today when she stopped by Rob’s office to discuss the next project, she found him in a strange mood and slightly hung over from overindulging in Gentleman Jack. Rob began talking about financial problems. At first Addison thought he was telling her that he was insolvent. Then she realized he was talking about some new policy of the U.S. Department of Labor (DOL).
The DOL recently said that it would no longer use the “control” test to determine if a worker is an independent contractor (1099 worker) or an employee (W-2 worker). Instead, the DOL plans to use an “economic reality” test. This new test has a number of factors but can be summed up by saying that if a worker is economically dependent on the employer, then the worker is a W-2 and not a 1099.

Addison accepts Rob’s offer of a shot of Gentleman Jack, although she prefers Buffalo Trace, and they sit in a gloomy silence as they contemplate what the new test means for each of them. Addison dreads the idea that she could again be classified as a W-2 because she likes being free to work at her pace and only on things she enjoys doing.

What should Addison do next?

She can explain to Rob that she has other clients in addition to the work she does for him and so she thinks that she truly is an independent contractor.
She can incorporate her business now that she has the money to do so rather than continuing to operate as a d/b/a. Incorporating is additional proof that she is running her own business.
She can wait to make any changes until she has more information.

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She’s Not My Employee

Another update from the Jungle….
Rob has a small consulting business that does project-based work. That means Rob needs a flexible work force that can easily gear up when there are lots of clients, but can also gear down when projects are few.

Rob relies on a group of individuals that he classifies as independent contractors. For each project, Rob explains what the client wants, the deadlines that must be met, and the scope of work. The worker can accept or reject any project. Rob’s been happy with his flexible work force.

At a recent networking event, Rob heard that the U.S. Department of Labor (DOL) has decided to ditch its old “control” test for deciding if a worker is an independent contractor (1099) or an employee (W-2). Instead the DOL will use an “economic reality” test. Rob does some quick research at www.dol.gov/whd and finds the document outlining this new test. What he reads makes him reach for a bottle of Gentleman Jack.

After a couple of stiff drinks, Rob thinks he understands the main points of this new test. The
economic reality test says that a worker who is economically dependent on an employer is an employee and not an independent contractor. Rob doesn’t know if his workers are economically dependent on him. He uses them part-time and always believed that they did work for other consulting businesses.

Rob sees that the new test has several factors. The factor that most worries Rob is the one that says if the work performed is an integral part of the employer’s business, then the worker is a W-2 and not a 1099 worker. Rob knows that his consulting business depends on completing projects for his clients which requires the use of skills that his independent contractors have.

After another shot of Gentleman Jack, Rob does some worst case scenario calculations of what will happen if his workers must be converted to W-2’s. He realizes immediately that it wouldn’t be financially possible to convert all of them to employees.

What are Rob’s options?

He can choose a couple of the independent contractors that have the broadest range of skills and offer to convert them to W-2’s who work full-time for him. All the other workers would no longer be eligible to work on his company’s projects.
He can talk to his CPA about cash flow and tax strategies for dealing with the new economic reality test.
He can continue business as usual, including drinking more Gentleman Jack, while he waits to see what DOL will do.

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School Zones Made Me Late

Another update from the Jungle….
Jane is the HR manager for a company with about 200 employees. The company runs a lean operation which means that Jane is the sole HR person and handles pretty much every situation that arises. Jane likes the variety of issues that she faces because it keeps everything fresh and interesting.

A major problem for the company is time and attendance. The owner of the company is obsessive and compulsive about details and it drives him nuts to see a few employees chronically showing up late. He told Jane to fix the problem.

Jane reviewed the time and attendance policy which clearly states that chronic tardiness may subject an employee to progressive disciplinary action. The policy is included in the employee handbook. Jane checks the personnel files for each laggard employee and finds that each of them has signed the acknowledgement form. That means that each employee received a copy of the employee handbook and promptly tossed it aside without actually reading it.
This week, Jane began meeting individually with each employee who is chronically late. Jane tries not to yawn as she hears the usual excuses. One employee says she was stuck in traffic due to an accident. Another says his dog got out of the fenced-in backyard and he had to find the mutt and lock him in the garage before leaving for work.

Jane’s favorite excuse of the week is the employee who says she was late due to the school zones. The employee recently moved so that her children could attend a more highly rated school. This means the employee must now travel through three more school zones on her route to work. That caused her to be late.

What should Jane do next?

She can explain to each employee that the excuse du jour doesn’t make up for chronic lateness. She can then move to the next step in progressive discipline.
She can encourage each employee to make a greater effort to arrive on time and let them off with a verbal warning.
She can ask herself why she never thought up so many creative reasons for being late to work.

Time and attendance issues are a perennial problem. Perhaps it’s time to think about the underlying reasons for tardiness. Employees who enjoy their work tend to show up on time.

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	Mae on Halloween Horror
	Mae on Freedom from Rules
	Genie Herron on Where Is He?
	Norma Shirk on Whose Side Are You On?
	Pat Brewer Hairston on Whose Side Are You On?

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