Recent Hot Topic Posts on ESGHR.com

Wage and Hour Audits - Are You Compliant? (Employer Solutions Group)

Message by Employer Solutions Group on 11/19/2008 2:19:44 PM MST
If a former employee were to complain to the Labor Commission for unpaid overtime wages, would you be able to show proof that the employee either did not work overtime or was paid for the overtime hours worked? Companies with just one employee are vulnerable to lawsuits for any Fair Labor Standards Act violation, and attorneys are anxious to take your money.

Pay your employees piece-rate?
For any employee that is not exempt from overtime, which most blue-collared employees being paid piece-rate are, time records must still be kept and employees must be paid overtime wages.

Pay your employees commissions?
For any employee that is not exempt from overtime, time records must still be kept and employees must be paid overtime wages. Outside sales persons qualify as exempt - but they are also on the road. Most inside sales people are NOT exempt.

Pay your employees a salary?
For any employee that is not exempt from overtime, including any executives whose actual job duties do not classify as an exempt employee, time records must still be kept and employees must be paid overtime wages. Providing fancy job titles does not mean the employee is exempt from overtime!

Federal law requires overtime to be calculated by a standard week that does not fluctuate, which is determined by the employer (Sun-Sat, Mon-Sun, etc), rather than by pay period. This can be confusing for employers who pay on a semi-monthly schedule, as weekly overtime calculations do not always begin on the first day of the pay period.

If you have questions about your pay calculations, need help determining overtime wages, or are unfamiliar with exempt v. non-exempt employee status, please contact one of our Human Resources Consultants at 888-810-8187.

ADA Amendments 2008 (Employer Solutions Group)

Message by Employer Solutions Group on 11/19/2008 12:32:15 PM MST
Congress has approved the ADA Amendments Act of 2008, which includes major changes to the Americans with Disabilities Act (ADA). The changes appear to be more favorable to employees and many Human Resources professionals speculate a substantial rise in ADA issues due to the passage of these amendments.

One major change is the elimination of considering mitigating measures when trying to determine whether or not a medical condition qualifies as a disability. Mitigating measures are methods to help control impairments and limit any perceived existence of a disability, stretching from medications and medical supplies to learned behavioral or adaptive neurological modifications. Formerly, any mitigating measure taken for a condition would not be considered a disability; that is no longer the case.

Another significant change is the expanded list of what are considered �major life activities.� Although not exclusive, this list ranges from performing manual tasks to thinking and working. Furthermore, the operation of major bodily functions has been added to the list of major life activities. For example, employees who have to take excessive restroom breaks during the workday may now be covered under the ADA.

The new interpretation of the ADA is to understand employers' intentions rather than focusing on whether or not some specific medical condition qualifies as a disability, thereby necessitating an accommodation. Rule of thumb: if an employee has some medical condition that is interfering with their normal course of work, assume the condition is covered under the ADA and consider accommodations first. Need help with ideas for reasonable accommodations? Contact one of ESG's Human Resources Consultants at (888) 810-8187.

Federal Minimum Wage Increase (again) (Employer Solutions Group)

Message by Employer Solutions Group on 7/15/2008 1:41:39 PM MST
As the second part of the three-stage increase, the federal minimum wage will increase from $5.85 per hour to $6.55 per hour effective July 24, 2008. The first increase took place on July 24, 2007. The next and final increase will occur on July 24, 2009.

Most states have their own minimum wage law, which may differ from the federal minimum wage law. To ensure compliance, employers must adhere to the law that is most beneficial to the employee. The increase will generally have no effect on employees working in states whose minimum wage is currently at or above $6.55 per hour.

Some counties and/or cities within states may observe a higher minimum wage than the rest of the state in which they are located; sometimes this higher wage will apply only to businesses that are under contract to the local government itself. In other cases, the higher minimum wage will be enforced across the board.

With the federal minimum wage increase, your compliance posters will need to be updated. For additional information regarding compliance requirements, please contact one of ESG's Human Resources Consultants at 888-810-8187.

Recruitment Practices (Employer Solutions Group)

Message by Employer Solutions Group on 5/27/2008 4:11:14 PM MST
While there is no way to guarantee a good hire, there are many recruitment practices that will help decrease the possibility of making a bad hire, found primarily in three main areas: the applicant pool, selection, and retention.

Applicant Pool: Finding the right applicants can be a frustrating, costly, and overwhelming task. Be sure you are making every effort possible for quality candidates to learn of your available positions. Use online recruitment tools and offer an employee referral incentive to internal staff. Attend job fairs that target your applicant market and treat rejected applicants with respect.

Selection: �Hire hard, manage easy.� The more time and effort spent selecting the right employee, the less amount of time spent managing him/her. Protect yourself from negligent hiring by doing background checks and drug test all potential candidates. Use assessment tests to better understand applicant and current employee talent. Provide succession planning to extend the survival of the company and always do reference checks, as history has a way of repeating itself.

Retention: Take the time to make new employees feel they are needed and important. First impressions of a company and/or the newly hired position may set the tone for the employee's career within your company. Introduce new employees to the entire staff and/or department, depending on the size of your company. Show them around the office; point out areas that may be culturally significant to the staff. Take time to train and orient new employees and provide resources necessary for them to succeed.

ESG understands the need to attract and retain quality employees, offering online recruitment tools, drug testing, assessment tests, background checks, and a detailed review of your recruitment process. For more information on the best recruitment practices for your company, please contact one of ESG's Human Resources Consultants at 888-810-8187.

PPE... Who's Picking Up the Tab? (Employer Solutions Group)

Message by Employer Solutions Group on 5/8/2008 3:32:49 PM MST
The Occupational Safety and Health Administration's (OSHA) ruling on employer-paid Personal Protective Equipment (PPE) goes into effect May 15, 2008. The new ruling does not alter when to require or what type of PPE to issue, but it does clarify what has to be paid for by the employer.

The new ruling reinforces OSHA's stance that employers are solely responsible for compliance with safety and health standards, and therefore the cost of PPE, with some newly clarified exceptions. Employers are not responsible to pay for:

PPE different than that provided at no cost to the employee;
Ordinary safety-toe footwear or prescription safety eyewear, as long as the employer is not restricting the use of such to their job only;
Everyday clothing, even if specific types of clothing are required (ie: long-sleeved shirts, long pants);
Ordinary hand tools; nor
An employee's own PPE if he/she voluntarily prefers to use his/her own. An employer may not require employees to provide their own PPE and are still required to ensure the adequacy of employee-owned PPE.

The new ruling also provides clarification for employers to reasonably charge employees who lose or intentionally damage PPE, as well as specific guidance on how to add structure and consistency when addressing common PPE problems. For more information on the new ruling, please contact one of ESG�s Human Resources Consultants at 888-810-8187.

Increasing Employer Risks - What Can You Do? (Employer Solutions Group)

Message by Employer Solutions Group on 3/10/2008 5:26:15 PM MST
Recently the Equal Employment Opportunity Commission (EEOC) announced that discrimination charges against private employers filed with the EEOC increased by 9% in 2007 - the biggest annual increase since the early 1990s. According to the most recent U.S. Justice Department statistics, civil rights violation claims have nearly doubled since 1990. In 2007, the EEOC resolved 72,442 private sector discrimination complaints and recovered approximately $345 million in compensation for those who had filed discrimination charges.

Feeling overwhelmed yet? Well, the potential risk to employers is actually much higher, considering these numbers do not include claims for breach of contract, intentional infliction of emotional distress, defamation and other employment related torts. They also neglect to account for claims filed with administrative agencies and state courts, as well as disputes that are resolved through arbitration and mediation. Defense of these actions is extremely costly - not only in terms of legal fees, but in disruptions to business operations and adverse media attention. So what can you do?

Corporate risk managers are increasingly turning to employment practices liability insurance (EPLI) for protection from such huge liabilities. Most EPLI policies cover claims of wrongful termination of employment, workplace harassment, and discrimination, and some stretch further to cover a more comprehensive list of wrongful acts. Nearly all policies cover any amount for which the insured is legally obligated to pay, including defense and investigation costs, settlements, and judgments. Punitive, exemplary, and multiple damages (including liquidated damages) are now expressly covered under many EPLI policies if otherwise insurable.

At ESG, we advise companies to seriously consider EPLI to protect themselves from the wave of employment-related lawsuits. If you have questions or are interested in learning more about EPLI, please contact one of ESG's Human Resources Consultants at 888-810-8187.

2008 Contribution Changes (Employer Solutions Group)

Message by Employer Solutions Group on 1/7/2008 10:23:37 AM MST

For many tax-savings plans, ringing in the New Year involves increasing maximum contribution limits.

Health Savings Accounts (HSA) for family coverage (two or more family members on a qualifying high deductible health plan) have a limit of $5,800; $2,900 for single participants. The catch up provision for employees age 55-64 is $900.
You and/or your employer can contribute up to the annual maximum at any time during the year. Some specific rules apply if there is not a high deductible health plan in place the entire 12 months.

401(K) annual limits remain at $15,500 for 2008; the catch up provision for employees aged 50 and over remains at $5,000.

Mileage Reimbursement for employees using their own vehicles for authorized business purposes increased to 50.5 cents per mile for 2008 (up from 48.5 cents per mile in 2007).

The IRS continues to require employers to substantiate and adequately account for the mileage; however, there is no extensive documentation of actual expenses required as long as the rate is at or below the maximum.

Health Spending FSA and Dependent Care FSA administered by ESG each has a maximum of $5,000.
FSA plans through ESG renew each January 1st. You have until January 31st to make changes to your 2008 election absent a mid-year qualifying event. Remember that you have until March 15, 2008 to incur claims for any 2007 elections and until March 31, 2008 to submit for reimbursement.

ESG encourages both employers and employees to take advantage of every tax elimination and deferral arrangement allowed by government entities. Please call or email us today to learn more about opportunities available to you.

New I-9 Form (Employer Solutions Group)

Message by Employer Solutions Group on 12/7/2007 4:50:57 PM MST

The USCIS is giving employers 30 days beginning November 26, 2007, to transition to the revised I-9 form. Effective December 26, 2007, employers who fail to use the revised form will be subject to applicable penalties. (There is no need for employers to complete the amended Form I-9 for current employees for whom there is already a properly completed Form I-9 on file.)

The following List A items are no longer acceptable to verify identity and work eligibility because they lack sufficient features to help deter counterfeiting, tampering, and fraud:
1. Certificate of United States Citizenship (Form N-560 or N-561);
2. Certificate of Naturalization (Form N-550 or N-570);
3. Form I-151
4. Unexpired Reentry Permit (Form I-327); and
5. Unexpired Refugee Travel Document (Form 1-571).
The Employment Authorization Document (Form I-766) was added to List A of the List of Acceptable Documents on the revised form.

Items added to list A:
1. U.S. passport (unexpired or expired);
2. Permanent Resident Card (Form I-551);
3. Unexpired foreign passport with a temporary I-551 stamp;
4. Unexpired Employment Authorization Document that has a photo

(Form I-766, I-688, I-688A, or I-688B); and
5. Unexpired foreign passport with unexpired Arrival-Departure Record

(Form I-94) for nonimmigrant aliens working for a specific employer.

Remember that I-9 forms must be filled out for each employee within three days of employment and must be retained for three years or one year after termination of employment, whichever time period is longer. You can see the new form at: http://www.uscis.gov/files/form/i-9.pdf and the Handbook for Employers, Instructions for Completing the Form I-9 at: http://www.fivel.net/PDF/I-9%20Handbook%20for%20Ers%20Rev�d%202007.pdf.

Preventing Sexual Harassment (Employer Solutions Group)

Message by Employer Solutions Group on 10/30/2007 11:07:59 AM MST

The recent highly publicized employment law case against Madison Square Gardens (MSG) and New York Knick's Head Basketball coach, Isiah Thomas, is an important reminder of the need to have a sexual harassment prevention program and regular prevention training for managers and employees. One federal jury has ordered MSG to pay a former marketing executive $11.6 million to settle a sexual harassment claim against Isiah Thomas.

Harassment refers to unwelcome behavior that is offensive, fails to respect the rights of others, and interferes with work effectiveness. Sexual harassment is a form of sex discrimination. The Equal Employment Opportunity Commission (EEOC) has issued guidelines which define sexual harassment. This definition describes two types of sexual harassment: �quid pro quo� and �hostile work environment.�

It is the responsibility of the organization to ensure that all employees refrain from creating a hostile work environment. Special concern needs to be paid to managers because of their position as a representative of the organization, as well as their ability to offer favors in return for sexual acts or inflict negative consequences in return for refusal to submit to such acts.

Helping employers prevent and deal with sexual harassment in the workplace is just one of the ways Employer Solutions Group (ESG) helps organizations every day. If you have interest in training in this area or any other pertinent employee-related item, please contact your Human Resources Consultant at ESG or email us at info@esghr.com.

Sexual Harassment (Employer Solutions Group)

Message by Employer Solutions Group on 10/17/2007 8:49:09 AM MST

It is the responsibility of the organization to ensure that all employees refrain from creating a hostile work environment. Special concern needs to be paid to managers because of their position as a representative of the of the organization, as well as their ability to offer favors in return for sexual acts or inflict negative consequences in return for refusal to submit to such acts.

Revised EEO-1 Report (Employer Solutions Group)

Message by Employer Solutions Group on 8/27/2007 10:27:04 AM MST

September 30th marks the 2007 deadline for the filing of the overhauled EEO-1 report. The EEO-1 is a demographic report that private companies with 100 or more employees and federal contractors with 50 or more employees and $50,000 or more in government contracts are required to submit every September.

The new report includes changes to the demographic categories and requires further categorization of management levels in order to �recognize the shifting demographics of today's workforce.� Specifically, the changes will provide the agency with greater detail on the ascension of women and minorities within an organization.

Alterations to the report include:

The addition of a new category titled �Two or more races�
Division of �Asian or Pacific Islanders� into two separate categories: �Asian� and �Native Hawaiian or Other Pacific Islander�
Renaming of �Black� as �Black or African American�
Renaming of �Hispanic� as �Hispanic or Latino�
New job categories that divide officials and managers into two levels based on responsibility and influence within the organization: Executive-/senior-level officials and managers, First/mid-level officials and managers

If a company has not adopted the new categories for the data collected in the past year, the old categories can be reported on the new form; resurveying of the current workforce is not required. If you have additional questions about the EEO-1 report or other Human Resources inquiries, please call ESG at 1-888-810-8187.

DOCUMENTING POOR PERFORMANCE (Employer Solutions Group)

Message by Employer Solutions Group on 7/30/2007 12:13:27 PM MST

You've warned your employee for weeks that his continued tardiness is affecting his job performance, but the employee just doesn't seem to get it. How can you help the employee change his behavior? Or, if the employee refuses to change, how do you document the employee's poor work performance to protect yourself from a costly unemployment claim?

There are a few elements that should be included in ALL written disciplinary actions. First, be sure you communicate what the employee did wrong - focus on facts and less on subjective observations. Instead of saying the employee has a �bad attitude�, list the specific actions the employee has taken that denote a bad attitude. Second, include a statement explaining why the behavior is unacceptable. Third, clearly describe the type of behavior expected from the employee in the future. Finally, be sure to include a statement detailing what will happen if the employee fails to correct the problem.

The experts at ESG can assist employers in knowing how and when to document poor employee performance to help protect them from costly unemployment claims. For more information, contact one of our HR Consultants today!

FEDERAL MINIMUM WAGE INCREASE (Employer Solutions Group)

Message by Employer Solutions Group on 6/12/2007 2:49:36 PM MST

In May, both Congress and President Bush approved the first federal minimum wage increase in 10 years. The federal minimum wage will gradually increase from $5.15 to $7.25 per hour in three phases over the course of two years. The first increase to $5.85 will take place on July 24, 2007 (60 days after President Bush signed the bill). The second phase will increase to $6.55, effective exactly one year later on July 24, 2008. The final increase to $7.25 will take effect July 24, 2009. The House and Senate also attached a $4.8 billion tax-cut package to the measure in order to help small businesses defer the costs of the minimum wage increase.

Remember that several states have higher minimum wage rates than the federal rate. If you have employees who work in such a state, you must continue to pay the higher minimum wage rate. However, if your Company is exempt from state minimum wage laws, this federal increase may apply to you. For more information, contact ESG�s Human Resources professionals at 888.810.8187.

Experience Rating (Employer Solutions Group)

Message by Employer Solutions Group on 5/3/2007 12:26:20 PM MST

Often business executives are not sure how Experience Rating from the National Council Compensation Insurance (NCCI) affects their business in terms of workers' compensation renewal pricing. In short, Experience Rating can be summed as:

The Experience Rating Plan is used to tailor the cost of workers� compensation insurance to the actual loss experience of an individual employer. It acts much like a safe driver discount program by comparing the losses and safety results of an employer to other similarly classified employers in your state. The result of this comparison is the experience modification factor. Fewer accidents and losses than the average for your industry, in your state, will result in a modification factor lower than 1.00 and a reduction in premium. More accidents and losses will result in a higher premium. It is important to note that experience rating is not a penalty-reward system; it is a tool used to more accurately predict future losses for an individual employer.**

At ESG, we can help explain this complex rating formula. Understanding this formula and how to manage this important multiplier generated by the formula can give your business one more competitive advantage in the market place. Our workers' compensation specialists understand what affects this number and what it takes to reduce your multiplier over time to help you "control the controllables." Call us today at 888.810.8187 to find out how ESG can work with you to find and control the factors affecting your Company's Experience Modification Factor.

**How To Understand Your Experience Rating Worksheets- NCCI

Tax Time Solutions (Employer Solutions Group)

Message by Employer Solutions Group on 4/6/2007 10:41:34 AM MST
It's that time of year when your employees are busy preparing their federal and state tax returns. Although it is too late to reduce their taxes for 2006, it is the perfect time to make changes to reduce their income tax burden for 2007. ESG offers a variety of tax elimination and deferral options you should consider offering to your employees, including:

Health Savings Accounts: Recent law changes have further enhanced the attractiveness of HSA's. Higher contribution limits, an annual election replacing pro-rated contributions, and the possibility of transferring funds from other accounts now exist.
Flexible Spending Arrangements: If you do not offer a high deductible health plan option required for an HSA, you can still allow for FICA, Federal and State Income Tax elimination by offering an FSA.
Transportation: In addition to the IRS-allowed mileage reimbursement, certain mass transit, toll and parking expenses are treatable as pre-FICA and income tax.
Per Diem: Be sure you are properly eliminating from taxable income, knowing what qualifies for eligible per diem.
Employer Sponsored Retirement Plans: Every employer should offer either a 401(k) (both Traditional and Roth options) or a Simple IRA plan for employees. ESG can help you choose from several options for little-to-no cost to the employer.

ESG is committed to finding ways to take advantage of every tax elimination and deferral opportunity allowed by government entities. Please call or email us today to take advantage of these opportunities.

OSHA Mandated Recordkeeping (Employer Solutions Group)

Message by Employer Solutions Group on 4/5/2007 6:06:00 PM MST
If requested, would you be able to provide an OSHA compliance officer with the required recordkeeping paperwork mandated by 29 CFR Part 1904? Is your business even required to keep such records? If so, for how long? OSHA recordkeeping standards were changed in 2004. Have you been briefed on the changes? What is an �OSHA Recordable Case,� anyhow?

The OSHA recordkeeping standards need to be reviewed from time-to-time in order to ensure your Company is in compliance. Now is the time of year to inspect current and past records to see if your business is following the current regulation. If your business is required to keep such data, you should have already compiled your 2006 data and have it posted from February 1-April 30, as required by the regulation.

Don't wait until an OSHA compliance officer is standing in your front office to start wondering how this regulation impacts your business. The risk management professionals at ESG understand the requirements of OSHA regulations and serve as a valuable resource to ensure you remain compliant. After all, don't you have enough to worry about?

Reviewing Your Employment Practices (Employer Solutions Group)

Message by Employer Solutions Group on 4/5/2007 6:03:06 PM MST
Start the New Year off Right - Reviewing Your Employment Practices

Remember when you first dreamed of going into business? You probably dreamed of being successful, growing your business, providing service that helps others, or making money. However, you may not have foreseen some of the time-consuming details associated with being an employer. These details, while they seem cumbersome, are vital to your organization's success. As a new year begins, it's a great time to assess your performance as an employer over the previous year and anticipate needs for the coming year. Here are a few areas to review:

Performance Appraisals
Injury Reporting
Workers Compensation Audits & Renewals
Employee Manual
Records Management
Safety Manual
General Employment Practices

Employer Solutions Group is committed to helping employers move forward and consistently improve their employment practices every day. Dealing with the details and paperwork can leave an employer frustrated and overwhelmed. They may also cause you to lose focus on your objectives and core competencies, distracting you from the very goals and dreams that you went into business to accomplish. You can afford the variety of expertise you need to ensure regulatory compliance, provide workplace safety, administer your employee benefits programs, and create your desired workplace environment, while allowing you to grow your business. Employer Solutions Group partners with employers nationwide to navigate through the business of being an employer.

Open Enrollment (Employer Solutions Group)

Message by Employer Solutions Group on 4/5/2007 6:00:11 PM MST
Why do I have Open Enrollment Every Year?

It is that time of year again where �Open Enrollment� is back on the radar. HR departments are frantically preparing their benefit packages for employees to see available plan options for 2007. But why is this something for which employees must participate annually?

To understand current regulations, we must understand the laws involved. The Revenue Act of 1978 created tax-qualified benefit plans that resulted in Section 125 of the Internal Revenue Code. This law authorized that employee contributions to medical, dental, vision, and accident group plans may be deducted before federal, state, local, and payroll taxes are calculated. Later rulings allowed employees to make elections to a Flexible Spending Account (FSA) where certain health, dependent care, and non-group health premiums could receive the same tax advantages as group plan premiums. In 2004, Health Savings Accounts (HSA) became legal and eligible for many of the same tax advantages as Section 125 plans.

Along with these favorable laws, however, came a number of rules, conditions, and guidelines that must be met in order to provide such tax- advantaged plans. The most important rule for a Section 125 eligible plan is to hold an annual �open enrollment period.� Realistically, there are three types of open enrollment periods: new hire, qualified change of family status, and annual open enrollment. To remain a qualified plan, each plan administrator must allow all eligible employees the right to change their plan options for 30 days following the start of a new plan year or some other open enrollment trigger.

Failure of employers to comply with open enrollment rules could result in the IRS not allowing that employer to offer tax advantaged plans. Thus, it is clearly in the employer's best interest to follow IRS regulations.

Employer Solutions Group offers employers of all sizes the ability to provide employees with tax-advantaged plans, including pre-taxed premiums, FSA plans, and HSA plans - without the complication of filing IRS required documents. In addition, our experienced Human Resource Consultants will educate your employees on the benefits and risks associated with participation.

Workers' Compensation (Employer Solutions Group)

Message by Employer Solutions Group on 4/5/2007 6:00:11 PM MST
Do you employ one or more full or part-time employees? If yes, you are mandated by most states to carry Workers' Compensation insurance. Workers' Compensation is regulated on a state level, usually by the department of insurance or labor commission.

Workers' Compensation provides employers with predictable costs for work-related injuries and illnesses and priceless protection from civil liability or suit from the injured worker due to such injury or illness (exclusive remedy). Failure to obtain Workers' Compensation coverage can result in stop-work orders and fines imposed as well as the temporary or permanent loss of certain licenses such as a contractors license. Obtaining Workers' Compensation insurance is the sole responsibility of the employer. No portion of it may be charged to the employee.

Exemptions are made for independent contractors that can prove they are free from the business' control and direction over how the service is performed and customarily engage in an independent trade or business related to the service being performed. Every independent (or sub) contractor used should have an active worker's compensation policy in place covering each of their employees working on a particular project; otherwise liability for injury to their employees may become the responsibility of the contractor.

All carriers generally determine premiums based on the business payroll, employer classification / type of work performed, and the experience record (number and severity of past claims). Employers are charged a rate per $100 of payroll. If the policy has more than $5000 in annual premium, that rate can be adjusted up or down by the company's experience modification, commonly called a �mod� or �e-mod�. This modifier is determined by the employer's claims history versus those of other companies in the same classification. Claims affect an employer's experience modifier over a several-year period. Thus, employers have realized a direct correlation between the overall expense of maintaining coverage and effective management of workplace injury claims.

Retaliation Claims (Employer Solutions Group)

Message by Employer Solutions Group on 4/5/2007 5:56:42 PM MST
SUPREME COURT RULES AGAINST EMPLOYERS ON RETALIATION CLAIMS:

A new standard for retaliation claims was recently set by the United States Supreme Court. In Burlington Northern & Santa Fe Co. v. White (June 22, 2006), the Court interpreted the Anti-Retaliation Provision of Title VII clarifying its scope in two important respects. First, the Anti-Retaliation Provision is not limited to actions or harms that are related to employment or that occur at the workplace. Second, it protects employees from any conduct that is �materially adverse�. The Court took this stance to protect the employee's right to pursue legal resolution to discrimination without fear of repercussion from the employer. Therefore, to win a retaliation claim, an employee merely needs to prove that a �reasonable person� would not have taken any legal action because of the employer's conduct, whether or not that conduct was related to the workplace.

This case is a significant victory for employees and will require that employers take more care in dealing with persons who have been involved in discrimination complaints. Employer tips for dealing with this new retaliation standard include:

Create and adopt an anti-retaliation policy.
Train all employees on this policy; make sure it is properly enforced.
Be very careful in dealing with employees that have been involved in any claims or compliance efforts within the Company.
If there is any adverse action with these employees, ensure there is a strong, documented, business reason for it.

Independent Contractor or Employee (Employer Solutions Group)

Message by Employer Solutions Group on 4/5/2007 5:52:16 PM MST
Classifying a worker as an independent contractor can be a legitimate business choice, but employers must use caution when making this decision. The penalties for misclassification can be steep, and can include back taxes or premiums, civil fines, interest, and other retroactive damages.

The courts have considered many facts in deciding whether a worker is an independent contractor or an employee. These relevant facts fall into three main categories: behavioral control; financial control; and relationship of the parties. In each case, it is very important to consider all the facts - no single fact provides the answer.

BEHAVIORAL CONTROL
A worker is an employee when the business has the right to direct and control the worker. The business does not have to actually direct or control the way the work is done - as long as the employer has the right to direct and control the work. A couple of key items to consider include Instructions and Training.

FINANCIAL CONTROL
There are several factors that show whether there is a right to direct or control the business part of the work, which help determine the appropriate worker classification. These include: Significant Investment, Expenses, and Opportunity for Profit or Loss.

RELATIONSHIP OF THE PARTIES
Factors that determine the relationship include Employee Benefits and Written Contracts. Business relationship intentions may be identified by how these two items are handled. Though the contract is used to determine relationship only if all other factors fail to do so.

For further information visit www.irs.gov or contact one of ESG's Human Resources Consultant by calling (888) 810-8187.

Employing Teens? What You Should Know... (Employer Solutions Group)

Message by Employer Solutions Group on 4/5/2007 5:48:14 PM MST
The Federal Fair Labor Standards Act (FLSA) has set basic restrictions on work that minors can perform, a "minor" being any person under the age of 18.

Both federal and state laws dictate the type of work that minors can perform, separated by age group. For specific state regulations, please see your state regulations of youth rules. Federal regulations specify that youth age 13 or younger are able to deliver newspapers, baby sit, perform as an actor, or work for a company or farm solely owned or operated by their parents - with the exception of hazardous jobs. After teens turn 14 years old, they can also work at the grocery store, gas station, movie theater, office and clerical positions, retail, parks and recreation, and restaurants, among others. Sixteen year-olds can perform similar jobs with the addition of using motor vehicles, with proper licensing, and any work that has not been deemed hazardous by the US Secretary of Labor. There are some exemptions for student-learner/apprentice programs available for some occupations regarded as �hazardous� for youth of at least 16 years old.

Youth under 16 years old may work no more than 8 hours per day and not more than 40 hours per week in a non-school day period. Night work is prohibited beyond 7pm for such youth during the school year, and no later than 9pm from June 1 through Labor Day. On a school day/week, youth under 16 years old may only work 3 hours per day and not more than 18 hours a week. Again, state laws may differ in terms of the hours youth are able to work; please refer to your individual state regulations.

If an investigation discloses a violation of these laws, penalties may be assessed per violation, including administrative fines of up to $10,000 for multiple offenses. Any person, firm, corporation, agent, manager, superintendent or foreman who knowingly fails to comply with these provisions is guilty of a misdemeanor and can also be fined upon conviction. In addition to penalties assessed to the business personnel, legal guardians of the minors in question who knowingly permit a minor to be employed in violation of these laws can also face misdemeanor charges and fines.

Detailed information about the federal FLSA can be found at http://www.youthrules.dol.gov/jobs.htm. You can also contact an attorney who deals specifically with employment law or the Human Resources professionals at Employer Solutions Group.

Discussion on Immigration (Employer Solutions Group)

Message by Employer Solutions Group on 4/5/2007 5:46:20 PM MST
Immigration discussion is seemingly everywhere. Recently, hundreds of employees and managers of a nationwide pallet manufacturer were arrested by US Immigration and Customs Enforcement agents for violation of immigration laws. There have also been massive demonstrations in many cities by immigrants. President Vicente Fox has visited several Western States to discuss orderly migration. Additionally, the United States Congress and President Bush are on the verge of revamping immigration laws that have not changed significantly since 1986.

As a business owner, you are probably concerned about having a stable, reliable workforce while remaining compliant with federal and state employment laws. What are your options to accomplish this? How do you stay current on the rapidly changing immigration rules while running your growing business? The answer is ESG. Our trained human resource consultants keep you up to date on current and anticipated immigration laws. We also manage Social Security Administration mismatches and assist you temporary visa issues.

Our comprehensive human resource support system allows you to focus on your core competencies. If you are a current client, you understand the value of outsourcing human resource functions to ESG. If you are investigating our services, please complete the short information request under the Request for Information icon. One of Human Resources Consultants will contact you shortly.