PERFECT PEOPLE SOLUTIONS September 2009

FOR THE PEOPLE

A snapshot into the current issues affecting your people

Twitter, MySpace, You Tube, Facebook and Blogging Invade the Workplace
Over the last couple of years, the world has been inundated with the newest internet crazes: Twitter, MySpace, You Tube, Facebook and blogging. People spend hours every day keeping their Facebook and MySpace pages current. They tweet on Twitter to give others up-to-the-minute updates on their lives. They make and upload videos for You Tube. People have created their own blogs where they chat about subjects that are personal, political and professional. All of this would be perfectly harmless if (a) it didnt happen while they were at work and (b) they werent sharing anything about their place of work. Some businesses are taking advantage of these new vehicles to market to customers or potential customers. Firms have employees who chat with their clients live or blog answers to frequently asked questions. Other companies, however, have no idea about these potentially productivityzapping applications and their rampant use during work hours. Employees use of the internet for non-work related reasons is estimated to be a Please see Twitter, next page

The Swine Flu and You

Part I The H1N1, better known as the Swine Flu, is coming soon to your business. It is critical for all businesses to be prepared as the World Health Organization (WHO) has declared the swine flu strain a pandemic. It has killed almost 1,800 people worldwide through mid-August 2009. What is the difference between an epidemic and a pandemic? An epidemic occurs when a disease affects a greater number people than is usual for a locality or one that spreads to areas not usually associated with the disease. A pandemic is an epidemic of world-wide proportions. Many companies developed their first pandemic plans after the Severe Acute Respiratory Syndrome scare better known as SARS back in 2003. Plans range from the very simple to the extremely complex, usually based on the type of business in operation, or the expertise of those writing the plan. What should be in a plan? At a minimum you should address the following: 1. What to do with infected employees. 2. Preparation to reduce swine flu in the workplace. 3. When to close a facility or suspend operations. 4. Caring for infected family members. Infected Employees WHO has stressed that most cases of swine flu are mild and require no treatment. The problem for employers is figuring out who has the flu without violating the Please see Pandemic, page 3

Inside This Issue

Twitter, MySpace, You Tube, Facebook and Blogging Invade the Workplace The Swine Flu and You My Employee is a Thief, Do I Care? In The Works: Healthy Families Act Final Phase of Minimum Wage Hike Goes Into Effect One For the Road Yup, They Said It Perfect People Solutions

Twitter
Continued from page one staggering two to three hours each day. Companies must get out in front on this matter and take a clear position that employees understand. Some organizations have used website blocking software to limit access to these sites. Employees can simply bypass that by using their cell phones, PDAs or laptops to connect to the internet. While some companies have created policies in their handbook outlining that internet usage while at work is for company business only, they have yet to include cell phone or PDA usage in that section to catch up with technology. Businesses should also consider the effect tweeting or having a Facebook page can have as far as sharing too much company information with the internet community at large. Say, for example, a company salesperson gets on Twitter, tweets that she just landed in Phoenix and is picking up a rental car to go see Customer XYZ. Imagine a competitor somehow getting that information and using it to their advantage. We have seen detailed information about the work people are doing placed on You Tube or Facebook in clear violation of company confidentiality clauses. Companies affected by employee posts on social network sites have taken disciplinary actions that include writeups, suspensions or even terminations of employees. These firings have fed lawsuits by the terminated employees that are just starting to work their way through the legal system, costing businesses big money to defend their actions. Companies must establish a policy or position that is consistent with their culture. Businesses that openly promote technology can be more lenient about the social networking policies they create. Others in tightly regulated industries should be very strict in laying out the rules. All companies need to consider that their younger employees are very tied to these technologies and could be put off by employers who have an overreaching policy. No matter where a company comes down on the subject, it is just another round in the changes that new technology is making in the workplace today and in the foreseeable future.

In the Works: Healthy Families Act

Congress is currently working on the HFA or Healthy Families Act. This act would require employers who regularly employ 15 people or more to allow each worker to earn one hour of paid sick time for every 30 hours worked. Employees could earn up to 56 hours of paid sick time in a calendar year. They can earn even more if the employer chooses to set a higher limit. Employees could use such time to: (1) meet their own medical needs; (2) care for the medical needs of certain family members; or (3) seek medical attention, assist a related person, take legal action, or engage in other specified activities relating to domestic violence, sexual assault, or stalking. The bill would authorize civil actions by employees, individuals, or their representatives for damages or equitable relief against employers who violate this Act.

Final Phase of Minimum Wage Hike Goes Into Effect

The final phase of a two-year hike of the minimum wage went into effect July 24, 2009. The rate was $5.15 in 2007 and the new wage is $7.25. Twenty-one states and the District of Columbia already have a minimum wage higher than the new federal minimum, so it is believed that while the timing for the increase is difficult, the impact will be small to most businesses. The new federal minimum wage increase does not change the $2.13 per hour minimum that must be paid in cash to tipped workers. It will only increase the tip credit that an employer is allowed to take for the difference between the federal minimum wage and the $2.13 per hour they must pay their employees in cash. If the $2.13 per hour combined with the tips the employee earns do not equal the new federal minimum wage per hour, the employer must still make up that difference in cash to the employee. State minimum wages also may come into play, as some states do not allow tip credits to be taken at all. Some states may have higher cash minimums for tipped employees or may tie their state minimum wage increases to federal minimum wage increases.

My Employee Is A Thief, Do I Care?

Part I An employee takes home a pen, paperclips or some sticky notes. Is this theft? With kids returning to school and times as tight as they are, people will use the company they work for to help fill that huge school shopping list. Is this theft? Some people will aim low: a couple of pencils here, a folder there. Others will aim higher: a stapler, a calculator or a ream of paper. Some will aim higher still: food from a restaurant chain, tires or clothes from a retailer, tools from a manufacturer, or gasoline for their personal vehicle. In all these cases a theft occurs only if two things happen: (1) the employer finds out; and (2) the employer cares. According to the U.S. Chamber of Commerce and the American Management Association, about 30% of all business failures are due to employee theft and related forms of dishonesty. This fact is why it is important to ask if you care if your employee is a thief. Some employers set guidelines to determine if a theft took place, questions such as What was taken? or How much was the item worth? Or the ultimate, sometimes unspoken guideline, Which employee took it? If your decision is based on the guidelines above, you are setting yourself up for a lawsuit. Why? The legal term is disparate impact or more simply, discrimination. Dont think so? Well, if you fire one person for stealing who is a female and you dont fire a male who stole the same thing, youve discriminated. The key here is for companies to establish a clear policy about company property and what will constitute theft. Share that policy with all employees and have them sign something to show they received the policy and understand it. Better yet, make the policy part of an employee handbook. If you decide to make exceptions to the policy, make sure you document for yourself why you made a decision that differs from the policy. It is very likely that someone will remember the exception and bring it out in some future legal proceeding or hearing. It would be better to actually change the policy than make an exception. Policies should be flexible and you should feel comfortable making changes as your company changes, grows, matures and/or expands. In Part II, we will examine how you should go about investigating a theft and what standard of proof you need to make a termination decision.

Pandemic...
Continued from page one Health Insurance Portability and Accountability Act, as violations can result in a big fine. Having a policy that requires mandatory reporting of exposure by an employee is a big risk. While that risk is reduced if being infected places other employees at a high likelihood of infection (e.g., those working in the medical field in close contact with others), case law is very unclear. The better course is to avoid a mandatory reporting policy. If an employee volunteers their medical condition, thats fine, but employers are not allowed to ask. Most companies want employees who even think they are sick to stay home. Some companies incent them to stay home by making sick leave available even if the company does not typically allow it or if the employee has used his allotment for the year. The swine flu pandemic should reinforce some basic behaviors and facts for businesses: 1. 2. 3. 4. Sick employees who come to work are not as productive. Sick employees are 10 times more likely to suffer a workplace injury or to injure another person. Sick employees spread the disease to others, further impacting productivity. Employees who do not take the proper time to become well stay sick longer and further negatively impact productivity.

While certain employees might take advantage of the swine flu to get a few days off on the companys dime, you must manage to the majority of people who dont lie. You do not want to be on the news for firing someone who has the swine flu. In Part II, we will discuss how to reduce swine flu in the workplace, when to close your facility, and caring for infected family members.

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P ERF ECT P EOPLE S OLUTIONS

One for the Road: Employment at-will

If your state is an employment at-will state, you may believe that you can fire at will. Employment at-will means you dont need to have a reason to let someone go. Be aware, however, that after terminating an employee, the Equal Employment Opportunity Commission (EEOC) may call to advise you that an ex-employee has filed a complaint alleging wrongful termination based on case laws that override employment at-will. To make matters worse, some organizations may not be aware of the documentation needed to support a termination decision. They may fail to have a documented termination process in place or may fail to document performance or behavior feedback that shows an employee was given an opportunity to improve. Make sure that every termination is well thought out and planned. Understand that how the decision is communicated to your now former employee as well as your remaining employees is the key to minimizing potential legal exposure and morale issues.

Yup, They Said It

At the end of an interview, the candidate asked his prospective employer, What part of our conversation did you consider the best part? After a brief pause, the interviewer replied, It hasnt happened yet, but it will be when you leave. ****** A man returning from a long flight gets to the baggage carousel and realizes his bag is not there. He goes to the lost luggage counter and tells the woman that his bag is missing. The woman smiles and tells him not to worry because she is a trained professional and he is in good hands. Now, she says cheerfully, has your plane arrived yet?