RGL "PIPELINE"
 
  

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 13724 Venetian Court

Orland Park, Illinois 60467
Office 708-301-6425 
 Fax:  708-301-6455
  
 

Providing Human Resources Consulting for Small to Mid-Size Organizations

 

June, 2011

 

Top 

Greetings!

 

The employment-related regulatory agenda is progressing at a rapid pace and will be keeping all of us quite busy through the remainder of the year.  You can be certain that there will be additional surprises forthcoming.  We at RGL Consultants will do our best to keep you informed moving forward.  If we can be of assistance to you in addressing these issues within your organization, please let us know.

  

 

 

Shoe Drop

AND NOW, ANOTHER SHOE TO BE DROPPED

 

Right on the heals of the Department of Labor's (DOL's) ruling on Fluctuating Workweek methodology, which has had a significant negative impact on the way many organizations have been compensating staff members for years, we are about to see yet another significant requirement imposed on us.

 

As I have suggested previously, it is critical that the changes to the fluctuating workweek methodology that you make be very carefully communicated, placing the need for those changes squarely at the feet of the Department of Labor (which many employees would otherwise most certainly interpret as being an employer take-away).  And here is why that may prove to be a most important communication.

 

On December 22, 2010, the Federal Register published a Notice of Proposed Rulemaking that would require employers (all employers - union and non-union) to notify employees of their rights under the National Labor Relations Act (NLRA) by posting a notice in the workplace along with the other required Labor Law postings.  The stated purpose of the proposed rule is "to increase knowledge of the NLRA among employees, to better enable the exercise of rights under the statute, and to promote statutory compliance by employers and unions".  According to the DOL calendar (and the history of being pro-union), you can expect that this requirement will be finalized and published as a final rule before the end of this June. 

 

In case you are not convinced of the potential impact of this requirement, please be aware of the first sentence of the proposed "Required Labor Law Poster":  The NLRA guarantees the right of employees to organize and bargain collectively with their employers, and to engage in other protected concerted activity."

 

It is possible that the proximate timing of these two rulings is coincidental; but it does make one wonder.

 

RIGHT TO KNOW UNDER THE FAIR LABOR STANDARDS ACT

 

The Department of Labor (DOL) has been very busy indeed!  The proposal put forth in the Fall of 2010 is close to being finalized which would up-date the recordkeeping regulations under the Fair Labor Standards Act in order to enhance the transparency and disclosure to workers of their status as the employer's employee or some other status (i.e., independent contractor), the basis upon which the employee is paid, and how that pay is computed.

 

Among other details, this regulation would necessitate the completion of a detailed job analysis to substantiate and document the determination of exempt or non-exempt status (or independent contractor status) of each position within an organization and then would require providing that analysis to each employee each pay period.

 

We will keep you apprised on this issue.

Issue:24

 
 
 

We encourage you to forward this Newsletter to colleagues or others whom you feel would be interested in receiving the RGL Pipeline
  
 

coming soon

Recently introduced legislation in the U.S. House of Representatives includes the Medical FSA Improvement Act of 2011 (H.R. 1004).  This Bill would bring an end to the "use it or lose it rule" that affects Medical Flexible Spending Accounts (FSAs).  Under this Bill, employees would be able to withdraw any remaining funds in their Medical FSAs at the end of the Plan Year (and, of course, pay taxes on the withdrawn amount).

 

Under current law, any remaining money is forfeited.

 

If this Bill becomes law, it would apply to Plan Years beginning after December 31, 2012.

 

It is already law that the amount that can be directed into a Medical FSA for Plan Years 2013 and later will be limited to $2,500 (though this will be adjusted based upon inflation).

 

Employee Engagement
 
 

A critical factor in organizational success is the degree or level of employee engagement.  According to the Employee Engagement Report 2011 by the BlessingWhite consulting firm, which interviewed 10,914 employed professionals in North America, 50% of employees who trust their senior leadership say they are engaged in their job; compared to just 40% of those who trust their direct boss.

 

BlessingWhite CEO Christopher White says individuals can enjoy their work and have a strong sense of accomplishment, "but if they don't trust their boss, or their boss' boss, they'll begin to question how they fit in with the company and have less pride in the organization overall".

 

Are your staff members fully engaged?  Over the next few issues of the "Pipeline" we will offer some practical ideas for enhancing the level of staff engagement.    

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Regards from,
  Dave                       Rich                        Jim
  Dave Slivinski                           Rich Lehr                                    Jim Kacena

    Consultant                               President                            Consultant/Coach

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