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Obama's First Law Could Have Chilling Effect on Small Business |
To comply with the new Fiar Pay Act, businesses will
want to take a close look at their compensation decisions - and at how
those decisions are documented.
By Lenora Chu, CNNMoney.com contributing writer February 2, 2009: 12:25 PM ET
(CNNMoney.com) -- The issue of compensating your employees just got a bit trickier.
President
Barack Obama's first bill, the Lilly Ledbetter Fair Pay Act he signed
into law on Thursday, loosens the statute of limitations under which
workers can sue employers for pay discrimination based on
characteristics such as gender, race, age or disability.
To ward
off discrimination suits, companies will need to meticulously document
pay decisions and retain detailed employment records, legal experts
say. In this, small companies may be at a disadvantage - few have
access to the attorneys and human-resources professionals that will
help larger businesses comply with the newly expanded law.
"This will affect [small companies'] legal and compliance costs... and
potentially make them reluctant to hire additional employees," said
Elizabeth Milito, senior executive counsel of the National Federation
of Independent Business. "There's also the potential for one lawsuit
that goes south to put a small business out of business."
Suggested Actions for Small Business:
- Run the numbers on all employees' compensation packages,
including starting pay, merit raises, cost of living increases and
benefits. Individuals who perform the same jobs and have the same
qualifications should be paid at the same rates.
- Ensure there are demonstrable business reasons for any disparities in compensation.
- Train supervisors who have input into hiring, firing, disciplining and promoting workers on what the law requires.
- Review
and update employment policies and handbooks to emphasize that
discriminatory compensation practices and decisions are strictly
prohibited.
- Conduct exit interviews when supervisors leave the
company, focusing on whether any protected characteristic were
considered when they made pay decisions.
- Ensure that employees who question pay practices or file claims of discriminatory practices are not retaliated against.
- Make
sure performance evaluations are completed accurately and in a timely
manner. That documentation can subsequently be used to support
compensation decisions on promotions, raises and bonuses.
- Indefinitely retain copies of all payroll records and performance reviews.
- Review
liability insurance policies to ensure that claims from ex-employees
regarding incidents long past are covered. Make changes in coverage if
necessary.
Read the entire article...
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Rocky Mountain News to Close on March 1
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 Colorado's oldest daily, the 143-year-old, Rocky Mountain News will shutter it's doors on March 1.
The News, owned by E.W. Scripps, and the Denver Post, owned by Dean Singleton, have operated jointly for about 12 years. Despite the Joint Operating Agreement cost efficiencies, revenues have not been sufficient to support both newspapers.
Scripps Howard offered the company for sale in early December, but no buyers surfaced.
This report is based upon unnamed sources believed to be reliable, although neither newspaper is reporting on this development this morning.
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Neiman Marcus January Sales Down 18%
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While the company did not
break out sales figures by channel, within its Neiman Marcus Direct
operations, revenue fell 18.3%. Its Specialty Retail Stores segment's
revenue dropped by 25.8%.
For
the second quarter of its fiscal 2009 year, comparable revenue among
its Specialty Retail Stores was down 22.8%, while Neiman Marcus Direct
second quarter revenue fell 12.1%.
"In
order to stimulate sales and reduce our inventory levels, we were much
more promotional than in prior years," said Burdon M. Tansky, in
comments that accompanied January's results. "We currently anticipate a
significant decrease in our gross margins and a deleveraging of
expenses caused by the decline in revenues. As a result, we currently
expect to report a net loss for the company for the second quarter."
Tansky noted that the company has $220 in cash, and $576 million available on its $600 million revolving credit facility.
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Cheers,
Craig McMullin
AFCP
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