Winter Newsletter

Dear Colleague,

The holiday season is behind us and I hope yours was as enjoyable as mine. Even though my children are grown and on their own there is still something magical about having them at home for a few days. Hearing them laugh, argue and stumble in late at night after being out with friends is well worth the disruption to my "empty nest" lifestyle. I can't help but remember the holidays gone by, traditions that somehow remain to this day (like making, and usually burning, cinnamon buns on Christmas morning) and the overall sense of well being that accompanies these memories.That sense of well being transfers into the New Year when I reflect on the past and look toward the immediate future. We are entering into historic times with a new president, an economy in recession and a labor market with unemployment poised to rise to record levels. There are myriad reasons to feel anxious and downright scared with the uncertainty that swirls around us as our basic needs of security and shelter are threatened. Yet I find my spirits soaring when I think of the opportunities we have to move in a new direction, foster new ideas and improve things that perhaps we took for granted in the past. Needless to say my wife questions my sanity in this regard but I am definitely a "glass half full" type of person and I have given up trying to convert her in the 30 years we've been married.
The reason for my positive outlook is simple. I have met many executives and business owners who have transcended economic difficulty by visioning their way to continued success. I can't say I know who first introduced this concept but one definition of visioning describes it as a process to create a compelling picture of desirable future states that often represent quantum changes from the past. Successful visionaries are able to develop memorable imagery and stories about the nature and benefits of this future, and work backwards to understand the journey that could carry people to this vision. There are plenty of critics on this process who define the exercise as "plaque material" to be displayed on a plaque or sign in the front lobby but I have witnessed, and been a part of some wonderful visioning that engages people in an exploration of possibilities, using different ideas to identify possible futures, and engaging leadership directly in the process can be extraordinarily energizing for an organization. It can help an organization break out of overly constrained view of the future and is a powerful way of tying values to action. Much like a professional athlete who envisions winning a race, hitting a home run or delivering a perfect touchdown pass, it's an exciting thing to watch an organization create a vision from a raw idea and make it reality.So why not take some time and try this out. I'm already visioning a prosperous 2009 for all of you so I already know it will happen. Come along for the ride.My best wishes for a healthy and prosperous New Year.

Phil

The Power of Wage and Hour


I recently attended a presentation that was really scary for the small business owner. According to statistics compiled by a national lawfirm there is a new interest in small wage and hour cases and plaintiff attorneys are finding that it is just as financially beneficial to present claims against fifty or a hundred small companies rather than spending the time and money to bring class actions claims against one "Walmart" of the world. Sure if you win against the big kahuna you could make millions but it could take years and hours and hours of dedicated time. Instead, this new breed of plaintiff lawyer is not looking for the companies with 1,000 employees--they're happy to find 10 or 15 employees working off the clock or due unpaid overtime. Here's how it works.

You take ten employees, each owed 5 hours of overtime a week, for two years (or three years if the violation is "willful"), then double the back pay for liquidated damages, that makes it extremely worthwhile for an employee to bring a charge. The attorney gets his or her hourly fee for time expended on the case--not a percentage as with most contingency arrangements. So the employee might get $10,000 but the attorneys' take could easily amount to as much as $100,000. For most EEOC or Title VII claim, you have to have 15 employees, but for wage and hour Fair Labor Standards Act violations, just one employee is enough. What it means is that companies of nearly any size (with a minimum $500,000 in revenue) are vulnerable to lawsuits.

The FLSA requires that every employee must be paid overtime unless he or she falls into one of the exemption classifications. Here are some of the common misconceptions I often hear when doing an HR audit.
"We pay everyone in the office on a salary basis." Well that's just not possible and in the eyes of the wage and hour laws titles don't mean anything. In these situations, someone is non-exempt.
"We don't have to pay overtime because we pay salaries." Again, this will not fly. Unless the people are exempt based on one of the exemption categories, they are owed overtime.
"Our system automatically deducts for meal breaks." Many employers let their timekeeping systems automatically deduct for breaks or meal times. This is dangerous since invariably, your system will deduct time that the person is working.
"We don't have to pay overtime as long as people only work 80 hours in a two-week period." There is another misconception so don't try using that one to defend yourself. The law requires overtime to be calculated on a weekly basis. So if that 80 divides 30 hours one week and 50 hours the next, you owe 10 hours of overtime for the second week.
"Our construction estimator is exempt." Many jobs sound as though they might qualify for the administrative exemption, but don't. For example, construction estimators, controllers, and customer service reps. If their jobs are routine, for example, just plugging numbers into a spreadsheet, or reading answers off a prepared script. they are probably non-exempt. However, working supervisors like call center managers, nursing home supervisors, and foremen, may qualify for exemption if they are part of decisions, have the authority to decide when they switch to performing nonexempt duties, and remain responsible for the success or failure of business operations.

Let HR Solutions help you pay close attention to wage and hours issues. Our audit specialists can make sure your business is protected from costly wage and hour claims through our comprehensive review of your pay practices. Contact us at 610-287-1162 for free consultation. It's worth the phone call.

The Employee Free Choice Act- What You Need To Know
In previous issues I mentioned the Employee Free Choice Act or EFCA. Essentially EFCA or "Card Check" as it is also known, if enacted, will amend the National Labor Relations Act and change the way unions can organize a workforce by eliminating the secret ballot voting that is currently required. Simply put employees will lose the right to confidentially choose for or against union representation. The union only needs to have a majority of employees sign a card authorizing the union to represent them and the employer is then required by law to begin negotiating a collective bargaining agreement. HR Solutions, LLC is proud to be a member of the Association of Builders and Contractors. ABC is committed to educating all businesses about EFCA since this legislation if passed, will not only affect the building trades but any business in any industry. By law any union can attempt to organize any group of workers it chooses. That means that any type of employee in any industry could be unionized. If the EFCA is enacted and enough cards are signed I believe we will see a dramatic increase in union activity and many workers may be affected. Having worked in a union environment for many years I am not anti-union, however, I am opposed to losing my freedom of choice and am against any employee feeling threatened, intimidated or coerced into signing something against their will. If you would like more information on the Employee Free Choice Act and how you can educate your employees on this pending legislation please contact us for a no obligation consultation or check out the ABC website at www.abcsepa.org.