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 Real Workplace Issues |
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Welcome to the latest
installment
of "Real Workplace Issues," a newsletter
dedicated to
providing our clients and friends with practical,
everyday employment law and HR
information.
As employment law and HR advisors, we are often
asked by our clients, "what do most companies do?"
In an effort to keep your company competitive and at
the forefront of your respective field, we are presenting
this edition of Real Workplace Issues - the first in our
two-part series dedicated to examining the latest
trends in the workplace.
Employee loyalty has been on the
decline due to the job market dwindling, benefit
reductions, and opportunities for promotions
becoming increasingly scarce. Fewer and fewer
employees, especially the children of the baby
boomer
generation ("Generation Y") feel a strong attachment
or feeling of devotion toward their employers. As a
result, employers who ignore the needs of these
employees may see them leave for greener
pastures. Many employers, however, are heeding
the call and taking proactive steps toward not only
recruiting, but retaining today's generation of young
employees. Employers are acknowledging that
Generation Y values a personal work/life balance,
and many companies have begun offering employees
flexible working options, such as alternative
scheduling and telecommuting. Additionally,
employers are focusing on offering more perks to
retain Generation Y employees, such as subsidizing
continuing education, meals, and gym
memberships (see more on this under "Get Well
Soon").
Whether referred to as
freelancers,
consultants or independent contractors, it is clear that
employers are increasingly turning to these self-
employed workers. The benefits to employers of
retaining independent contractors are clear:
employers are able to avoid payments associated
with Federal Insurance Contribution Act (FICA) tax,
Federal Unemployment Tax Act (FUTA) excise tax,
state unemployment and workers' compensation
insurance, travel and entertainment, and employee
benefit plans (including pension plans, sick leave,
vacation, and
health insurance). In addition to basic monetary
benefits, the ability to hire independent contractors
allows employers to swiftly react to changes in
business needs and the demands of the
marketplace.
Employers, however, should be cautioned -
misclassifying employees as independent contractors
can result in costly investigations and audits by the
Internal Revenue Service or the federal Department
of
Labor (or state equivalent). For an additional review of
the risks inherent in
using independent contractors, visit our website at
www.halpernadvisors.com and view
our March 2008
newsletter entitled "Independent Contractors - A
Cost/Benefit Analysis," which can be found in
our "newsletter archive."
"Major U.S. employers' use of
incentives in health and wellness programs is on the
rise, growing to 71 percent in 2008 from 62 percent
last year," according to a survey conducted by the
Washington-based ERISA Industry Committee and
National Assn. of Manufacturers.
("More Employers Using Wellness Incentives,"
Business Insurance, Joanne Wojcik, June 27, 2008.)
These programs promote weight loss,
a healthy diet and regular exercise in the hopes of
decreasing employers' health care costs. To increase
employee involvement, many employers have begun
offering incentives to employees such as reductions
in insurance premiums conditioned upon continued
participation in the program. Employers are also subsidizing gym
memberships, "the patch" and
hypnosis sessions for employees who are trying to
quit smoking, and installing hand sanitizer
dispensers throughout their office buildings.
Post 9-11, companies have been
taking greater measures toward ensuring safety and
security in the workplace. Such measures include, but
are not limited to:
There exists, however, a myriad of
local, state, and federal laws and agencies which
restrict or regulate an employer's ability to use such
safety and security measures. For example, the use of
a "consumer reporting agency" to conduct background
checks is regulated by the Fair Credit Reporting Act, a
federal statute, as well as any similar state statutory
counterparts. Likewise, the use of video surveillance
and Internet/e-mail monitoring raises privacy issues,
many of which have not yet been addressed by the
courts.
Employers have been relaxing
their "anti-romance" or "anti-fraternization" policies,
and it is easy to understand why. With many
people working longer hours than ever before, the
most popular place to meet people has
become the workplace, and declaring "all office
romantic relationships strictly prohibited" is often
unrealistic. As a result, many employers have
abandoned the typical "all-or-nothing" policy
prohibiting office romances in exchange for a
more "understanding" alternative. One alternative is to prohibit
relationships where one employee has supervisory
authority over the other, and to transfer or remove one
of the employees from the supervisory chain once
such a
relationship is discovered. As a general rule, employers should
ensure that such policies are carefully crafted,
narrowly tailored, and neutrally applied.
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