The Lighthouse Report
In This Issue
Understanding Incentives
Succession Planning
Small Business FAQ
Reminders
Legislative Update
SWS News
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May / June 2009
Greetings! 
 
We are pleased to present our May / June 2009 newsletter and hope you find this information useful.
 
There are many more timely HR issues than we could possibly include or address comprehensively in this newsletter. So, please keep in mind that the information we provide in The Lighthouse Report is never intended to be all-inclusive or to substitute for professional advice.
 
If you would like to review previous issues of The Lighthouse Report, just follow the links below:
 
 

We always appreciate your feedback. Let us know if there is a related topic you would like us to address in future newsletters, and we'll do our best to fit it in.

Understanding Variable Pay, Part 1: Incentives
Besides base pay compensation, variable pay is another element that can be used to motivate and reward employees. Variable pay is compensation that is contingent on discretion, performance, or results achieved. To learn more about incentives, CLICK HERE.
 
Understanding Variable Pay, Part 2 will provide information about bonuses. Look for this article in our next Lighthouse Report.
Introduction to Succession Planning
Effective succession planning allows you to have the right people in the right jobs at the right time. To learn more about this important process for talent continuity, CLICK HERE.
For NC Small Business Owners - Hiring FAQ
What should I do before I hire employees?
 
1. Register with the following government agencies and get an identification number:
Internal Revenue Service - federal tax withholding (You likely already have a tax identification number, but if not, you have to get one.)
 
NC Department of Revenue - state tax withholding
 
NC Employment Security Commission - unemployment insurance
2. Purchase Workers Compensation Insurance, if applicable.
 
3. Before you recruit employees, examine the expected work and design your positions accordingly, considering both the duties and the skill set needed to successfully perform them.
 
4. Determine your compensation package, which could include paid time off and benefits in addition to pay.
 
Alert: We are often asked about the use of independent contractors instead of employees. The IRS has specific guidelines to distinguish between an employee and an independent contractor. CONTACT US to request our handout on this topic.
Reminders
The COBRA subsidy was effective on February 17th. If you are a small employer not subject to COBRA, but you offer a group health insurance plan, your participating employees may also be eligible for the subsidy. Your healthcare provider should be able to provide you with the necessary forms and documents.
 
The new I-9 was effective on April 3rd. If you need this form, send us an email and we will be happy to send it to you. CONTACT US.
Legislative Update
There are many pending employment-related legislative initiatives, at both the federal and state level. This is a time for you to be informed about these potential changes and communicate with your legislators. Here are just a few FYI:
 
Federal: Representative Rosa DeLauro (D-CT) introduced the Healthy Families Act, HR 2460, which would apply to organizations having at least 15 employees.  Some of the provisions include:
 
(1) Domestic Violence: Provisions that would allow victims of domestic violence to use leave provided under the bill for needs related to domestic violence (such as court appearances, counseling, etc.);

(2) Accrual: Proposes an accrual system where workers earn one hour of leave for every 30 hours worked, up to a maximum of 56 hours (7 days) as opposed to the versions from last Congress that would have granted full-time workers 7 paid sick days and part-time workers a pro-rata share of 7 days;

(3) Lock-In Provision: HR 2640 does not appear to contain the "lock-in" provision that would prohibit employers from making modifications to their leave benefits upon enactment that were part of the proposals from the 110th Congress;

(4) Enforcement:  Provides for enforcement of its provisions by the US Department of Labor (DOL);  

(5) Effective Date: Would be effective 6 months after the DOL issues regulations; and

(6) Cash Out: The bill specifically states that employees are not entitled to "reimbursement" for unused paid sick leave upon separation from the employer.

This information was prepared by John Cole of Ogletree, Deakins, Nash, Smoak, and Stewart, PC and provided by NCSHRM.
 
North Carolina:
 
HB 177: Healthy Families and Healthy Workplace Act - would require every to allow employees to accrue up to seven days of paid sick leave per year to care for themselves, the care of their child, parent, or spouse for illness, domestic violence, stalking, or sexual assault. Employers with ten or fewer employees must provide four days; larger employers must provide seven days.
 
HB 1169: NC WARN (Worker Adjustment and Retraining Notice) - would require that an employer give 90 days notice for layoffs or facility closures impacting 50 or more employees.
 
This information was provided by SHRM via NCSHRM.

Strategic Workplace Solutions News

SWS had a table top display at the Asheville Area Chamber of Commerce Small Business Networking Event on May 19th.
 
Carol Rovello was the featured speaker for the Adecco HR Lunch & Learn on May 21st. To view the slides from this program, Managing your Workforce and Controlling Labor Costs, CLICK HERE and look under the heading: Strategic Workplace Solutions Presentation Handouts.
 
Dr. Carolyn Worthington will present the program, Building an Ethical Workplace, for the Smoky Mountain Human Resource Association on July 23rd.
 
More and more small business owners are using SWS on a retainer basis. What's the benefit of this approach?

1. Lock in our current hourly rate for a period of at least one year.

2. Ensure that your request for assistance goes to the top of the queue.

3. Enjoy the benefit of an on-going relationship where we get to know you and understand your day-to-day challenges.

To view a summary of our services, CLICK HERE.
In Closing, 
Please feel free to contact us anytime we can be of assistance.
 
Sincerely,
 
Carol
 

Carol Rovello, SPHR
President
Strategic Workplace Solutions, LLC
direct: 828-280-6253 
Strategic Workplace Solutions