lobby
May 2011
Issue 009
In This Issue
Off Duty-Conduct
Card Processing
FFS Corner

Policing Off-Duty Conduct:

How Far Can You Go?

You discover that the company's sales manager is dating the market director of your biggest competitor.  Or that one of your cashiers has a bottle-of-scotch-a-day drinking habit after work.  Can you fire these workers - or at least ask them to change their behavior - without getting hit with a discrimination or privacy lawsuit?

       

Here's the litmus test:   

If an employee's off-duty activity puts your company in legal or financial jeopardy, courts will be more willing to let you regulate it.

                 

Generally, California employers should avoid inquiring into an employee's off-duty activities unless the employer can show an effect on the employee's work performance.  Privacy rights are an issue for supervisors to carefully consider before making inquiries or accusations.  California employers are prohibited from discriminating against employees on the basis of lawful conduct they engage in during non-working hours. (Labor Code section 96, 98.6)

                 

An exception exists where the conduct directly conflicts with the employer's interests or would disrupt the company's operations.  In the area of supervisor-subordinate relationships, companies have a strong argument that there is an inherent conflict of interest given the heightened risk of sexual harassment claims and the effect on morale and productivity.

                 

Consequently,  disciplining staff for participating in lawful conduct outside of work is a slippery slope.

 

FOUR WAYS TO STAY OUT OF TROUBLE:

1. Focus on the off-duty behavior's effects on job performance, rather than the conduct itself. Be able to point to a legitimate business reason for discipline.

2. Avoid blanket restrictions against socializing with competitor. Such overly broad rules infringe on privacy. Instead, protect company secrets by having employees sign nondisclosure agreements. 

3. Check the state's rules and seek legal advice before firing or disciplining an employee for off-duty activity. 

4. Apply an even hand. Don't suspend one employee for off-work behavior and then ignore another similar circumstance. 

 

For assistance on how to deal with these type of HR issues or any other HR matter please contact Linda Boland or Sarina Magallon in our Human Resource Department at (619) 588-2411.   

 

Quick Links...


Join Our Mailing List




Find us on Facebook
Card Processing Costs: Are You Paying Too Much?

Since most customers rely on credit, debit and gift cards as their form of payment it is important to understand exactly how you, as the merchant, are being charged for each swipe of that card. Without the proper understanding and knowledge credit card processors can become a cloudy business full of hidden fees and zero value costing business owners precious bottom line profits.

The NRA published a valubale article explaining the basics of card processing costs in detail. The following is their list of 8 key elements in understanding the business.
1. Understand the fee for every card transaction, and who is exactly charging it. Card processing is complex and monthly statements can be hard to read and full of undisclosed markups. Although there may be many fees listed on your statement there are only three fees that every merchant absolutely must pay: a.)Interchange to card issuers b.)Dues/assessments and direct fees to card brands c.)Processing and service fees to your card processor and their third parities.
2. Demand full disclosure on all fee increases. Most card brands adjust interchange rate categories and fees twice a year and when those rates go up, the processors more than likely jump on board with increasing your rates too, blaming it away on the card brands.
3. Ensure that all rate decreases are passed on to you. Annual fee adjustments, reductions in card transaction categories and incentive programs can significantly affect your profitability, same as increases can. It is not right to pay for increases and be blocked from decreases and incentives so make sure you negotiate terms that ensure the processors pass the savings on to you.
4. Identify the middlemen-understand what they do-and pay them only if they provide value.There are four critical parties needed to process a transaction: a bank, a card brand, a telephone or Internet connection and a card processor. It is a simple process that becomes more expensive when non-essential middlemen are involved taking cuts on your transactions. To stay competitive, make sure you understand who is charging for what and determine if you should pay these fees.
5. Eliminate surcharges and bill-backs, and beware of pricing "tiers" Many processors and their middlemen include undisclosed charges called "surcharges." These are arbitrary charges that make transactions more expensive and are documented in a manner that is very difficult to understand. To make matters worse, these charges, along with other related fees, often appear on bills issued the month after the transaction, with limited or no explanation. These markups, known as "bill-backs" or "enhancements," make rates appear lower than they actually are. Also, beware of pricing "tiers" created by card processors. Tiers are often used to aggregate and complicate the actual cost of interchange, creating hidden costs that are virtually impossible to discern.
6. Insist on secure transactions Make sure sensitive card holder data is protected by demanding robust security and data encryption from your payments processor or data security provider and don't pay unnecessary fees for it. This is critical to reduce your cost of PCI compliance and minimize risk of non-compliance.
7. Expect real-time protection against fraud Card fraud cost businesses billions of dollars each year. Real-time fraud and transaction monitoring are crucial to your business success. You be relying on your processor to provide such services but many do not leaving you at risk. Make sure you recognize the vulnerability and protect yourself from it.
8. Demand 24/7/365 customer support Despite how big or small the problem may be it is crucial you can reach actual customer support and not an automated phone system which could leave you a powerless victim. This support can make the difference between a good day and a devastating one.

Card processing is complex and for most business owners can become a real headache. To learn if you are paying too much set up an appointment with a Flores Financial representative. We can review your merchant statements in detail and make sure you are getting the best value for your dollar. To learn more on your own and to read the full NRA article click here.

 

FFS Corner- What's Going on at Flores Financial?
ffs logo- website design

This month the team at Flores Financial is busy adapting to our new work environment. Our team has grown quickly these past few months and in order to accommodate our new staff we have expanded to a second office location, nicknamed "The South Wing". The FFS South Wing is located in the same business complex just a few buildings down. The South Wing team is focused on our restaurant division. At the same time we have also added a night shift at FFS to accommodate for the expansion of our valued client, Sprouts Farmers Market. Our night shift crew is made of new FFS team members, including, Rosie Cason, Teresa Castro, John Needy, Kerri Clinger, Amanda Kupsche, Ryan Moore, Nicoel Arguello and Stacia Peters. The continued growth of Flores Financial is an exact reflection of the continued growth and success of our clients. We are focused on ensuring each one of our clients receives the best customer service available.  

 

It is very rewarding to see our clients succeed. In fact one of our valued restaurant clients just celebrated the Grand Opening of their third Tavern+Bowl location, North County Tavern+Bowl this past Tuesday. FFS team members, Andrew, Sarina and Michelle, who work on the accounts, were excited to be apart of it. We congratulate chief members Daniel Hurd and Richard Synnott on their new venue! 

NCT Grand Opening

(Pictured: Andrew Murphy, Sarina Magallon, Daniel Hurd and  

Michelle Flores-Gonzales at the NCT Grand Opening on 4/26/11)