August 2013 Newsletter

Welcome to the Four Point HR Newsletter

Exchanges Delayed – Lower Than Expected Premiums

According to Bloomberg, the price for health coverage purchased through the Affordable Care Act’s online exchanges appears to be less expensive than what had been predicted. This is assuming that the U.S. government can get the new marketplaces ready in time.

The exchanges scheduled to begin enrolling 7 million customers on October 1 for subsidized private plans, are the focal point of the 2010 health law’s efforts to make coverage available for the uninsured. While it appears we are avoiding “rate shock” from the previously predicted higher premiums, the workload on the administration for creating the marketplace is much larger than what was anticipated.

What’s happening lately? Nine states are showing lower monthly premiums than congressional estimates, according to a study from Avalere Health, a Washington-based consulting company. The Government Accountability Office released a report that the computer systems for the marketplaces will not be ready in time. Finally, training for the staff that will assist consumers is also behind schedule.

It is feared in the insurance market that in December premiums may even double for some small businesses and individual buyers at the onset of the law in 2014.

According to various studies, monthly premiums in nine states that have reported rates vary from $205 in Oregon to $413 in Vermont, before government assistance is included.

“It doesn’t completely rebuke rate shock but what it says is these competitive marketplaces are working and the plans are taking it seriously,” says Dan Mendelson, the CEO of Avalere.

Premiums that have been reported are prices consumers can expect to pay or plans that go on sale October 1 and take effect January 1, 2014. Alvalere says rates won’t rise dramatically by then, partly because large rate increases are subject to government review.

The law intended for the states to build their own versions of the marketplaces, but so far all but 16 have balked at doing the work, instead leaving it to the federal government. However, to date, Congress has blocked the requests for money to build these federal exchanges.

Back To School Driving Safety

It’s that time of years again, summer is almost over and children are going back to school. School will be in session again and school buses will be back on the streets. Drivers need to pay extra attention around school zones, crosswalks and bus stops. Accidents, including pedestrian accidents, are far more likely to occur on routes with which drivers are more familiar and comfortable. Every year, school bus accidents happen because many drivers forget about some school bus safety laws and rules. So now is the perfect time to make driving safety an agenda item on a meeting with your employees. The driving safety training will apply both on and off the job.

Here are some back-to-school driving safety tips:

• Stop for school bus lights. Always stop for school buses with flashing red lights. Drivers approaching the bus must come to a full stop for the duration that the red lights are on.

• Divided roads. Check your state law regarding traveling in the opposite direction across a divided road, when the bus light are flashing. (Some states require that you stop then, too.)

• Passing School Bus. Never pass on the right side of the bus. It’s illegal and this is where children enter and exit. Doing so can have tragic results.

• Anticipate the worst. Always anticipate the chance that a small child may run in front of you by slowing down and preparing to brake.

• Be careful around parked vehicles. Be especially careful in areas with parked vehicles on the side of the road. Children waiting to cross may be difficult to see behind parked sport-utility vehicles.

• Obey crossing guards. Always obey the direction given by school crossing guards. In some areas school crossing guards have the same authority as local traffic police.

• Avoid reversing. Try to avoid backing up your vehicle in areas with children. It’s difficult to see children while you are backing up.

• Don’t speed. Remember that the speed limit in most school zones is 15 to 25 miles per hour.

• Don’t honk at pedestrians or bicyclists. Honking at a child, whether on foot or on a bicycle, is not a good idea. The noise could possible startle a child and cause them to trip or fall into on coming traffic.

Plain Language And Writing – Part 2

In last month’s article, we introduced Plain Language And Writing and defined it by its legal definition. As a next step, we will add five strategies to execute Plain Language And Writing.

Use Personal Pronouns
You want to guide your audience in experiencing the matter as their concern during the discussion or speech. Addressing your reader as ‘you” is key in conversational involvement and keeps them aware and alert.

Write In A Visually Appealing Style
A visual layout will help draw your audience’s attention in and direct them to the information they require to be successful. Try using informative headings, short sections, and vertical lists. These tactics help to highlight points and focus on materials.

Don’t Be Wordy
Remove needless words. Often, elaborate or excessive words lessen the value of your speech or instructions. Simplistic writing is not inarticulate, but simple, clear and direct.

Avoid Shall
Shall is a questionable word. It is vague by accident or intent. Almost everyone uses it incorrectly as “should or “may”. The clearest way to express to your readers their roles is to replace “shall” with “must”.

Test It Out!
The best way to know if your material works is to test things out. Give your reader a short comprehensive test or run it by your colleagues. That will help you identify the material is user-friendly and understandable.

Payroll Record Keeping

It is important as employers that you retain accurate information of current and terminated employees. The EEOC regulations require employers to keep all employee employment records for one year. For employees who are involuntarily terminated, their records must be retained for one year from termination date.

Similar to the EEOC, under the ADEA (Age Discrimination in Employment Act of 1969), employers are to keep all payroll records for three years which includes the two years the FLSA requires in order to help explain the basis for paying differences in wages to employees of opposite sex in the same work place.

Employers must keep the following basic records:

  1. Employee’s full name and social security number
  2. Address including zip code.
  3. Birth date, if younger than 19 years
  4. Sex
  5. Occupation
  6. Time and day of week when employee’s workweek begins
  7. Hours worked each day
  8. Total hours worked each workweek
  9. Basis on which employee’s wages are paid (e.g., “$9 per hour”, “$440 a week”, “piecework”)
  10. Regular hourly pay rate
  11. Total daily or weekly straight-time earnings
  12. Total overtime earnings for the workweek
  13. All additions to or deductions from the employee’s wages
  14. Total wages paid each pay period
  15. Date of payment and the pay period covered by the payment.

Communicating And Following Your Corrective Action Policy

All Four Point HR clients should be using a Corrective Action Policy for 99% of all employee issues. (If you have not yet requested the Corrective Action Process Document, feel free to do so by e-mailing Kathryn Schene at kschene@fourpointhr.com.)

Step 1: Communication. Begin by reading through the document and getting a good understanding of this 3-step process. The Corrective Action Plan works off a basic premise of communication, which is: tell them, tell them and tell them again. The process, including a Documented Verbal Warning, a Written Warning, and a Final Written Warning, precedes any attempt to terminate the employee.

In this way, the employee is told a total of three times what they need to do to correct their behavior. While some warnings require more detail and time, the time frame that you communicate the three warnings is directly related to the amount of time it takes to show change. (If someone is late on Monday, they can be on time on Tuesday.) While I do not like to see the process begin and end in one week, it is certainly possible.

So what keeps managers from using this policy effectively?

1. Human Resources or the Business Manager must clearly communicate the Corrective Action Policy to all employees. Managers must first communicate that the Corrective Action Policy exists, how it works, and that all managers in the business will follow it.

2. Communication that the manager will follow up on the issue: Mangers must set and keep follow up dates for each part of the process.

3. Communication regarding “next steps”: Each time you meet with the employee you must tell them what they did wrong, what they need to do to correct the issue, and what will happen if they do not correct their inappropriate behavior. (Usually, if the employee does not correct their behavior, they move to the Written Warning, or after the first two warnings, they receive a Final Written Warning.) This act of clearly explaining the consequence of continued inaction is fully supported by most Unemployment Hearing Officers. (They want to know that the manager was very clear about what will happen next—–if the behavior is not corrected.)

4. Communication that Termination will follow the Final Written Warning: Managers must take the time, during the last meeting with the employee, to clearly state that “If we have to meet again, on this issue, or if you break any other policy, you will be terminated”.

Step 2: Use the Corrective Action Process Document to correct inappropriate behavior when it starts. Spell out what the employee did that does not meet standard or policy, and what the employee needs to do differently. Additionally, make sure that it is obvious that the Manager supports that turn-around through good follow-up—-usually on a weekly basis.

A proper Corrective Action document always states at least two things:

(1) The document must clearly describe the problem that exists, (and why it is a problem for the business).

(2) The document must also state the steps that the employee needs to take in order to become fully satisfactory again.

What the Corrective Action document does is work only from the facts—-all emotion is taken out of the equation. There should be no ambiguity and no uncertainty in the Issues Summary. Additionally, where the manager can state how the issue impacted the business, it bears an even stronger argument and no chance for the employee to argue about the warning.

Whatever the facts are, use them to detail the issues so the employee easily understands them. Then by using the FPHR Corrective Action examples, you can also ensure that you have timely follow-up, and that you move from a Documented Verbal Warning, to a Written Warning, and finally to a Final Written Warning, smoothly and easily. The next infraction would of course, mean termination.

We are happy to review or check any warning and make sure it is clear, and that all language to protect the business is included in each document. FPHR Human Resources I can be reached at 727-504-9796 or kschene@FourPointHR.com

Upcoming August Event – Free Webinar

Job Abandonment – What Every Client Should Know
Wednesday, August 14, 2013, 10AM EST
Kathryn Schene – Director of HR, Four Point HR

Unfortunately, Job Abandonment has become part of the “new normal” in business today, particularly for those employees working in lower level jobs. While it seems like there is an easy solution, there are several things you should know before you write your next Job Abandonment letter.

The Webinar Agenda Includes:

  • A Definition of Job Abandonment
  • The “Three-Day” Rule of Thumb
  • The importance of consistency in Decision Making, and why A Job Abandonment
  • Policy may make the most sense
  • The Federal Laws that may impact your Employment Plan of Action
  • Job Abandonment Documentation

Register here: https://student.gototraining.com/r/8271654914048693760