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Friday, January 29, 2010

Social Media and Self Preservation

The choice is yours: ride the train or be squarely positioned on the tracks as it comes barreling by. That's how I feel about social media. Social networking is ubiquitous. It enables us to be "uber" connected with others in a way that transcends any other form of media.

You can't see me blushing, but the truth is that I just created my Facebook profile a month ago. One of my initial observations was the role that social media plays in employment - both from a "push" and a "pull" perspective. Companies use social media as marketing and branding tools. Individuals use social media as networking and job search tools. Employers use social media as a recruitment tool.

So I told myself what I told my daughter when we bought her a cell phone and signed up for unlimited text messaging: "Don't send anything in a text message that you would be embarrassed to let me read." My general guidelines for using social media aren't that much different: whatever we write should be at best, thought provoking but not provocative; and at worst, ordinary and innocuous.

The way we present ourselves on a social networking site is, in effect, our "brand." If I look at someone's profile, I get a virtual video of who they are, simply by looking at pictures, comments, personal information, writing style, and how they spend their time. That's when I became aware of simulation games such as FarmVille and Mafia Wars. I haven't played them, but I can't begin to count the number of white mystery eggs that my Facebook "friends" have discovered on their farms. Some of my friends are animal lovers, too - like my friend Susan, who extricated a purple sea horse from a tangled mess of kelp. I'm flummoxed by how much time people appear to spend playing these games. And while Tony Soprano may give you props for earning amethyst cuff links in Mafia Wars, I'm underwhelmed. As for me, I've achieved gold medal status playing ping pong on the Wii. Don't misunderstand me. I'm proud of this (largely because it's my primary form of exercise). But you'll never see it on my Facebook wall.

To my point: be cautious about what you reveal to your friends (and the friends of your friends). It's easier to avoid the pitfalls of "TMI" with business-oriented networking sites like LinkedIn. But if you're using a site like Facebook, muster up a little restraint. I leave you with my own tips for protecting "brand you":

1. Learn how to use the privacy settings for your profile. The privacy settings in Facebook allow you to control who can see your profile, who can post to your wall, and who can see your search results in Facebook and on search engines. You also have the ability to block specific people from interacting with you on Facebook.

2. Give serious consideration to what type of information and how much detail you're willing to share. Do you want to share your political views? I'm not suggesting you shouldn't - just that you should carefully consider every piece of personal information that will become public.

3. What about that photo of you from spring break in Cancun? You get the picture. Don't post any photos that even hint at being inappropriate.

4. Avoid using Facebook while you're on the clock at work! I'm often amazed at notifications of friends' activities during times when they are clearly at work - and it's not even lunchtime.

5. Avoid mixing friends and business associates. Decide how you want to use the site - as a means of connecting with family and friends, or connecting with business associates.

I don't doubt that employers and recruiters use social networking sites to vet potential employees. Your profile may only be visible to friends and friends of friends, but people are pretty resourceful.

There's a lot to learn - check out the Holy Grail of Facebook Privacy.

In the meantime, I'm keeping a low "profile" and staying out of FarmVille. That is, until a friend notifies me that it's time to harvest a real money tree.

Authored by Sandy Turba

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Tuesday, January 12, 2010

Navigating an OFCCP Audit

In my previous blogs, I've discussed wage and hour requirements and the elements of a compliant AAP. But what should you do if you've received the dubious honor of being selected by the OFCCP for an audit? Read on.

Under the OFCCP's new Active Case Management system for conducting non-construction compliance evaluations, all compliance reviews now begin with a standard desk audit.

If you receive notice of a desk audit, you will need to send a copy of your AAP (both the plan for females and minorities and the plan for veterans and individuals with disabilities) for the current plan year, as well as the items on the listing attached to the letter (11 total). This includes activity data for the first six months of the current plan year if you receive the audit letter in the second half of your plan year. The AAP and supplemental data to be sent is based on the address where the audit letter is sent; that location is the "establishment" that is being audited.

The itemized listing of data/information to be sent also includes:

  • compensation data for all employees included in the AAP,
  • copies of any bargaining unit contracts; and
  • copies of the last three years of EEO-1 filings

You will have 30 days from the receipt of the letter to provide the current AAP and the additional information requested. Once the response package is received at the OFCCP office that issued the audit letter, they will check to see if all required items are included and will analyze the information provided to determine if there are indicators of "systemic discrimination" (i.e., a potential affected class of 10 or more applicants/workers). If there are no indicators and your AAP is compliant with the regulations, you will receive a closure letter. If there are indicators, a full desk audit will be conducted. This will entail further requests for information and possibly an on-site review. If there is an on-site review, it will likely include a review of I-9 records, interviews of employees and managers, and a review of employment records.

Based on our experience over the past 12 years in support of numerous clients through the audit process, we leave you with the following tips to help you navigate the process:

  • Verify that the data you submit is accurate and complete and in full response to the request. It is very difficult to explain away errors in the data submitted.
  • Respond in a timely manner to all items listed in the audit letter, as well as additional requests for information, to the extent that they are reasonable requests. If you need more time to respond accurately and completely, ask for it.
  • Be ready to explain the non-discriminatory reasons for negative results in the analysis.
  • Get your I-9's in order.
  • Document your efforts in outreach to veterans and individuals with disabilities.
  • Check your workplace and applicant process for accessibility; and your documentation of postings of job openings to state agencies.
  • Ensure that you have met your EEO-1 and VETS 100/100A filing requirements.
  • Make sure your applicant flow data meets the standards expected by the OFCCP (see the previous blog for details).
  • Review your employee files to confirm that they do not contain information that should be in separate confidential files (e.g., medical information, internal investigation reports).
  • Prepare a list of accomplishments and good faith efforts for the previous and current plan years.

The audit will either be closed out with a closure letter indicating that no violations were found or that only technical violations were found that are easily remedied. If discriminatory practices are found, a conciliation agreement and possible monetary settlement will result.

Here's the good news: once an audit is closed out, you cannot be audited again at that location for two years.


Authored by Dave Waldorf

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Friday, December 18, 2009

Surviving a Wage and Hour Audit

So you've prepared as best you can for a wage and hour audit. Or maybe you haven't prepared at all. Either way, don't panic! You'll feel a bit more comfortable if you know what to expect, and how to manage the process.

  • The investigator will ask questions about what the company does, and who makes decisions. He or she will ask for a Federal Tax ID number, annual dollar volume of business, structure of the business and other information in order to verify coverage of the Federal Fair Labor Standards Act (FLSA). The investigator will then ask to see the I-9's, payroll and employee records.

  • One person (preferably an employee with some authority) should be assigned to work with the investigator. That person should keep a list of all records examined, all questions asked, and all employees or other persons interviewed by the investigator. The investigator should be advised that this employee is being assigned as the designated point of contact during the course of the investigation and that in seeking company records or making inquiries about them, the investigator is to work exclusively through this employee only.

  • Provide the investigator with a private office or other area that is reasonably separated from other employees, especially those employees who have access to office records.

  • Escort the investigator about the premises as needed. Don't allow him or her to wander about freely.

  • Allow the investigator to examine all payroll and time records for the most recent two-year period. When time records are requested, bring in no more than two or three weeks of time records at one time. All time records for terminated employees should be pulled and kept separately from current employees' time cards, and only supplied if requested.

  • You are not required to permit employee interviews on company time or on the company premises. However, the investigator has a right to interview employees about work performed, hours worked and pay received. We recommend that you allow them to do this on company time and on company premises rather than making them do this at the employee's home after work. The investigator should be advised that when he or she wants to speak to any employees, each employee will be brought to the investigator individually, upon request, by the person you've designated to work with the investigator.

  • At the conclusion of the investigation, the investigator will discuss any violations (if there are any) and will ask for the company's position with respect to future compliance and the payment of back wages on the basis of the violations found. You can (and should) defer a response in order to review this with your legal counsel.

We recommend referencing the Wage and Hour Division's Fact Sheet on employee visits for further details.

Last tip: make sure that your I-9 records are up to date and the forms are certified properly. This is checked in the routine audits that are conducted. Keep your I-9s for all employees in a separate file so that it is easy to provide these to the auditor.

Authored by Dave Waldorf

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Tuesday, December 1, 2009

Preparing for Wage and Hour Audits

Recordkeeping. Compliance. Audits. These aren't a few of your favorite things. But the reality is that the U.S. Department of Labor's Wage and Hour Division has stepped up its enforcement of the wage and hour laws under the Fair Labor Standards Act (FLSA). The number of FLSA cases filed each year has nearly tripled since 1997.

What do you need to do? Get ready!

Review all of your jobs for proper classification as exempt or nonexempt under the law. Many employers have reorganized their operations and modified jobs in response to the decline in business over the past year. This may change the classification of the job. If the classification changes from exempt to nonexempt, you need to record hours worked and pay overtime premiums as required. This could also happen if pay rates are reduced as cost cutting measures, dropping an exempt employee's pay below the required threshold for exempt classification. Be aware that employees must be paid at least the state and/or federal minimum wage ($7.25 per hour), whichever is higher.

It's critical to determine correct status of the job, and it's not always clear cut. Check out this DOL Fairpay Presentation for guidance. Exempt employees must be paid on a salaried basis (exceptions: computer professionals, outside sales workers, certain professions). Any deductions made from an exempt employees pay must comply with the Safe Harbor policy under the FLSA.

Review timekeeping practices (these practices apply to nonexempt employees) to ensure compliance with the regulatory requirements.

Timekeeping records

  • Maintain for two years
  • Capture start and stop times and total daily hours worked
  • Ensure that supervisors review and approve time cards


Timekeeping practices

  • Discourage clocking in ahead of start times.
  • Check to see if employees are docked for lateness and if so, that you are complying with the rounding rules under the regulations.
  • Require employees to clock in and out for lunch and other breaks.
  • Review your lunch break practices. Make sure employees are off duty during the lunch break, and that the lunch break is at least one-half hour. If the break time is paid, it does not have to be counted towards time worked as long as there is a written understanding with employees to exclude the time from overtime calculations.
  • Rest periods less than 20 minutes should be paid.
  • In certain instances, activities performed before or after the formal "shift" or work period, is compensable (for example, time for donning and cleaning protective clothing for the job).
  • Travel time practices must comply with the Portal to Portal Act. Factors such as when the travel time takes place, whether it is overnight travel or not, whether the employee is a passenger or driver, all affect whether the travel time is paid time or not. If it is paid time, it could also be overtime (if all time worked plus travel time exceeds 40 hours for the work week).
  • Are employees allowed or required to work at home? If so, make sure that all time worked is recorded (and paid) for nonexempt employees.
  • Review compensatory time practices (applicable to public/government employers) for compliance with regulations.

    See the following DOL fact sheets:
    Hours Worked under the FLSA

    State and Local Governments under the FLSA

Verify Overtime calculations

  • Regular rate of pay calculation - You must include non-discretionary bonuses, shift differentials, commissions in the calculation of regular rate of pay, which is then used to compute the overtime premium. Also, if the employee is paid at two or more rates of pay in a pay period, this is averaged in the regular rate of pay based on the number of hours worked at each rate of pay. Retroactive pay increases must also be taken into account.
  • All "hours worked" must be included in the calculation, including off premises work.
  • The calculation of overtime is to be done on a weekly basis, using one of the allowable methods under the regulations (e.g. standard over 40 hours/week method, fluctuating work week method).

    See DOL Overtime Pay for more details regarding overtime pay requirements under federal and state regulations.

Review practices for payroll recordkeeping and keep payroll records for at least three years.

For all employees:

  • Employees full name and SSN
  • Address including zip code
  • Birth date (if less than 19)
  • Gender
  • Occupation (job title)

For nonexempt employees only:

  • Employees full name and SSN
  • Time and day of the week when the workweek begins
  • Hours worked each day
  • Total hours worked each workweek
  • Employee's regular hourly pay rate and the basis for pay (hourly, weekly, piece rate, incentive)
  • Total daily or weekly straight-time earnings
  • Total weekly overtime earnings
  • Additions to or deductions from pay
  • Total wages paid each pay period
  • Date of payment of wages and the pay period covered by the payment

Need more information? See Recordkeeping Requirements under the FLSA for more details.

Now that you're prepared, stay tuned for my next installment: What to do if you receive notice of an audit.

Authored by Dave Waldorf


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Friday, October 23, 2009

Writing Job Descriptions - Tips and Pitfalls

I've always been a fan of KISS. Not the 70's rock band with the face paint - but the bacronym for a very powerful principle: "Keep it simple, stupid." This principle has broad application, and most recently I've been thinking about it in the context of job descriptions and their respective job titles.

I have lots to say, so I'm going to muster up some real constraint here. First things first. Are job descriptions required? With one small exception, no! (The small exception refers to the Environmental Protection Agency Regulations, which requires them for jobs where employees handle hazardous waste.) But to be fair, there are some clear benefits of well-written job descriptions:

1. Legally, they can provide some defense in cases involving ADA or FLSA-related issues.

2. Need to do some recruiting? A job description can serve as the basis for articulating the overall purpose of the job and identifying the essential functions. It's one way of making sure that you've got consensus as to what's required. It allows you to more accurately benchmark the job against the market so that your pay package will be competitive. It provides potential candidates with a true sense of what the job is. (Trust me, it makes the recruitment process a heck of lot more effective.)

3.Do you really want to manage performance? A job description can be the foundation for clarifying core expectations. And it can be a great spring board for building out competencies and ultimately, career paths.

If you're convinced that developing job descriptions is a worthy investment of your time (or if your manager has told you that it is), then forge ahead, brothers and sisters. But arm yourselves with the KISS principle and stand firm in your mission to describe the job in all of its glory (or not, depending on the job).

Job descriptions should contain the following:

1. FLSA status (exempt or non-exempt under the Fair Labor Standards Act)
2. Reporting relationships
3. Overall purpose
4. Essential functions
5. Minimum qualifications (be honest)
6. Working conditions
7. Physical demands
8. Disclaimer (indicating that the duties are subject to change and are not intended to be an all-inclusive list)
9. Dates and approvals

If you're going to do them, you'll need to keep them current. That's a strong motivator for keeping them simple. Don't make the mistake of confusing a job description with a mind-numbing list of tasks. Typically, three to five core functions should be sufficient. Indicate the approximate percentage of time that each comprises.


The Two Biggest Pitfalls to Avoid
If you apply this guidance will you have a good job description? Not necessarily. It's like building a house. Maybe your foundation is solid but you've got faulty wiring. I've seen hundreds of job descriptions and the predominant problems with most of them are two-fold: an inflated job title and exaggerated description of the essential duties.

1. Inflated or Meaningless Job Titles
If you've got a moment I'll divulge a true story. It illustrates the importance that people attach to their job title. (This is a nice way of pointing out that ego often trumps common sense.)

I once worked with someone who was promoted (translation: assigned) to a brand new role. Absent a title that seemed intuitive, someone came up with this one: Manager of Transformation. Do you know what the purpose of this job was? Neither do I. But I do recall that this person orchestrated a lovely ice cream social and was ultimately accountable for making sure that there was an air hockey table in the break room.

I thought it would be fun to share a few examples of audaciously silly job titles. Since one of my favorite quips is that "it's all been done before," it took me less than a nanosecond to discover a gem of website with a job title generator. Three clicks later I had three really superlative job titles:

Human Branding Specialist
Executive Enabler of Media Partnerships
Global Accountability Engineer

What do these have in common? More baloney than the lunchmeat factory!

Tip: Call it what it is. If you don't know quite what to call it, focus on the kinds of jobs that your target candidates may have right now. If you need to hire a bookkeeper, don't call it an Assistant Accounting Specialist.

2. Exaggerated Job Duties
Given a choice, I'd rather deal with a lousy job title than a lousy job description. When I benchmark jobs for clients against survey data, I typically ignore the title altogether and dive right into the description. The words don't lie. Or do they? I've found that it can take a strong cup of coffee, two reviews of the job description, the help of a colleague and a serious reading between the lines to get to the truth. I suspect it's our proclivity to sugar-coat more than just our breakfast cereal.

Tip: Choose your action words carefully. Using words such as "responsible for" is too non-specific. Using words that inflate the job duty are equally as dangerous. If you describe the job duties of the warehouse worker as "managing," how will you differentiate the job of a true manager? Here are some sample action verbs to get you thinking: administers, authorizes, carries, coordinates, counts, estimates, files, modifies, procures, records, services, transfers, writes, etc.

Whew! Ready to give it a go? Just remember to use honest language so that you can keep it real. And keep it simple.

Authored by Sandy Turba

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Saturday, September 26, 2009

Five Tips - Planning Pay on a Tight Budget

"Show me the money!" When a towel-clad Cuba Gooding Jr. made this demand in Jerry Maguire, he wasn't talking about a 2.8 percent increase to a base salary. But it's all relative,right?

Federal Reserve Chairman Ben Bernanke has spoken and he says that the recession "is likely over." The surveys have spoken, too, and they're projecting merit increases around 3 percent. Both WorldatWork and Watson Wyatt are projecting overall merit increases of 2.8 percent for 2010.

As a self-admitted skeptic, I just want to point out that projected increases for 2009 started out at 3.5%. According to both Watson Wyatt and WorldatWork, actual increases for 2009 came in at 2.2 percent.

The economic tsunami may have lost most of its muscle, but the collateral damage is here for awhile. As a consumer, and a conservative, I'm ambivalent about what some would think are fairly basic, low risk decisions. Should my husband and I trade in his 12 year old gas-gobbling SUV and have two car payments? Or should we stall for a bit? After all, even with 165,000 miles, she still gets the job done.

The comparison may seem trite, but both consumers and businesses are reluctant. So if you have 2 or 3 percent to spend, how do you do it? Here's my shortlist of basic considerations and some simple approaches.

Consider your pay strategy. How does your approach to salary management support your organization and its goals? What do you want to pay for? Is your base pay competitive with the market? Get some competitive data. Can you find and keep the level of talent that you need? Do employees view annual salary adjustments as an entitlement - or do they view them in the context of the value of their role in the organization and the contribution it makes?

1. Identify your key players - these are the people you can't afford to lose. Who do you have to keep and develop in order to succeed? Determine if they're paid at least in line with the market. If not, get them as close as you can as fast as you can.

2. Take a look at your solid performers. If their base pay isn't competitive, consider a phased approach to adjusting their pay to where it needs to be.

3. Realize that pay adjustments aren't required. If you've got average performers whose base pay is in step with the market, the adjustment could be minimal. If you've got people whose performance falls short, why throw good money after bad? Forego any salary increases for employees whose pay is above market. If one of your high performers falls in this category,give them a lump sum.

4. If you have an incentive program in place, shift your pay mix. Put more opportunity in an incentive that pays out only if the organization meets some threshold based on specific measures.

5. Communicate! Help employees understand your approach and show them the value not only of their base pay but their total pay: salary and benefits. Even though they're not "tangible," benefits and other ancillary programs are meaningful to employees and are a critical part of the entire compensation package.

Authored by Sandy Turba

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