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robintek

Apr 01
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Editors Column: Thinking about Training

By Your Employee Matters

I read with great interest Training Magazines Top 125 in 2015. Here’s what I noticed:

 

  1. Award-winning companies spend an average of roughly 6% of payroll on training. For a $40,000 a year employee that’s roughly $2400. Which is more than twice the normal training spend of $1200 according to Association for Training and Development.
  2. Online training has now moved to a 50-50 position with classroom type training. This trend will continue for years to come as the cost of delivery lowers and quality improves.
  3. Successful training companies do three things: they conduct employee satisfaction surveys, help employees create competency maps, and tie management compensation to development of their direct reports. Rocket science – find out what people need, help them navigate a road to get it and make sure the managers support their journey.
  4. Two words that express what leaders most want from training: Value and an ROI
  5. The goal of any training is to change behavior that increases productivity and job satisfaction.
  6. Training succeeds where it is relevant, timely, and immediately applicable
  7. It is the learner that must be placed at the center of any training program or system
  8. Active learning involves role-playing, gaming, team-based, interactive, collaborative
  9. The greatest training budgets will be created by industry disruptors, innovators, and continuous improvement freaks
  10. All companies can do a better job of managing their compliance training. Both management and rank-and-file employees must undergo sexual-harassment training, diversity training and conflict resolution. Most workplaces have some safety training concerns that need training as well.
  11. Training programs do best where they have high completion rates, training adapted to various learning styles, where the training creates a desire for additional training, where it comes with coaching, and where it is active.
  12. You can measure success in terms of both quantity and quality of production, customer satisfaction, reduced errors and accidents, and other relevant benchmarks
  13. You can encourage training by branding your effort, creating the awards and rewards, contests, branding, etc.
  14. Not all employees should be trained equally. All employees should get basic compliance training but then employees should be trained in proportion to the value they bring to the company. Someone with twice the salary should have twice the training budget, if not even more. The most important employees to train and retain are your winners.

 

George Gilder wrote we are in a Knowledge Economy. Fact is: to earn and retain we have to train, train, train!

 

One more reason to take full advantage of ThinkHR Learn.

Apr 01
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Environmental Issues Left Behind: Document These Conditions To Save Claims Later.

By Construction Insurance Bulletin

Environmental liability, as a legal issue, is in its infancy; but maturing quickly. The challenge for contractors involves staying ahead of the evidence chain.

Since you don’t know what hidden environmental tort will arise next, prevention and documentation protocols challenge your risk manager.

The following list includes our best guesses:

Moisture
Document the moisture content of the internal parts of any building structure. Mold, mildew and bacteria thrive when the moisture content on surfaces is between 16% and 19%. Your goal is to dry areas out to below 15% moisture content.

Invest in a moisture meter and record readings before walls or ceilings are enclosed. Rain or humidity can bring the moisture content up. If anyone opens the walls or ceilings, document the potential change in writing to that contractor.
Chemicals
Any chemicals, whether used on wood destroying pests, specialty paints or to vapor seal a slab, are prone to migrate through a vapor phase within or through a building.

Document the products used and any safety data available currently.

Vapor intrusion will be a highly litigated issue over the next twenty years. The challenge is to prove whose vapors they are. Similar products contain same chemical families which can change and vaporize.

It is your risk management challenge to disprove your products involvement. And, look into buying and keeping records on all environmental insurance policies. Keep these records because they are a long-term investment in risk management.
Materials and Supplies
Remember the formaldehyde sheetrock? Know your suppliers and vendors and ask for environmental insurance certificates.

Buy paints and oils that are low in volatile organic compounds like toluene or xylene. These chemicals are used as drying agents, and thus they do not add to aesthetics.

Try to avoid any additive that will vaporize over time if used correctly.
Concrete Additives
They are great for aesthetics and ease of placement. Vapor intrusion through concrete floors will be litigated heavily. If you use an organic chemical to improve the floor or seal the floor, you will be dragged into every lawsuit affecting that building regardless of the source of contamination.

Document the chemicals used and monitor the results right after placement, that will be the maximum flux rate.
Fuel Inventories
Document no fuel spills on any site where you use fuel. Keep an inventory and take pictures of proper fuel storage with secondary containment.

If a spill occurs, mitigate the damage immediately by remediating the spill.
Document and maintain records on any potential environmental issue. Be sure to include evidence that you exceeded then state-of-the-art selection and prevention methods. Remember asbestos too.

Apr 01
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Products, Completed Operations, and Design: Where are the Lines Drawn

By Construction Insurance Bulletin

Consider sending in submittals which are slightly different than the plans require. Today’s energy requirements limit wattage for lights in new buildings, for example.

A fixture or a bulb can cause the energy plan to go over budget. Is the implication that you are using the wrong product or that you are redesigning the energy grid? Suppose you install the energy inefficient product and it holds up commissioning and the Certificate of Occupancy. Is the claim against the product, the completed operation or the professional design?

Every product has been designed for a purpose. If you install that product for that purpose, and your installation is per product specifications, defects are considered product liabilities.

The architect and engineer draw plans and specify products to be used. If you follow those plans and install those products, your work will be a completed operation.

If the plan calls for your specialty to design some aspect of the building, you will have a design liability.

The grey areas concern modifications to the product or design outside the scope of work.

Completed operations insurance does not cover design liability except in very minor cases.

Consider loss control for these situations. Either avoid them, wise choice, or purchase some professional liability insurance for design professionals, and get an architect or engineer stamp.

With energy codes, LEEDS certifications, environmental issues, and historically standard conditions to meet, alterations to any aspect of the project drawings can have devastating effects to the building commissioning.

Be hyper cautious when altering plans or using replacement products. Request a substitution change order if products are unfindable or at least the specifications are unmatchable. Suggest design changes in writing in change orders, even the most minor changes. Your not out to be thorough, not difficult. 

Apr 01
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Inland Marine Coverage – Useful On-Site Forms

By Construction Insurance Bulletin

For inland marine purposes, all terms such as contracting or equipment take on broad interpretations and definitions. Equipment means any tool, vehicle, material, supplies, or machine that serves in the trade of the policy holder and is not fit for highway use.

Highway use becomes fuzzy when empty vehicles are highway legal but the fully loaded vehicle is not. Consider the use of the vehicle rather than the vehicle itself.

Contractors eligible for this coverage can include ship builders, farmers, snow removal companies, even government agencies.

These are non-filed forms which means the underwriter and company have broad authority to fit coverage for individual companies.

Some standard language defines mobile equipment as mobile or floating nature. This definition allows quite large and semi-permanent machines to gain coverage under mobile equipment forms.

Blanket Form

Covers all tools, equipment, machinery, tracked mobile devices, drilling equipment, everything right down to a screw driver.

The contractor simply pays for one limit. If a list of equipment is required, the larger items are listed with serial numbers, the smaller items are grouped as hand tools, garden tools, or other general description.

Scheduled Form

A schedule form lists each item individually with a description and value. Accuracy counts. These forms will normally cover newly purchased, rented or leased property for thirty days.

Reporting Form

Requires the insured to send in a report of values for each month or quarter on each jobsite. The advantage is paying premium on only those values actually at risk. These forms will also cover newly acquired property for thirty days.

The equipment, tools and machinery investment on a site is significant. While in storage back at the yard, these items may be covered under your building and content policy. Look into the best inland marine form for your operations. 

Apr 01
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Umbrella Liability: Why It’s Important To Contractors

By Construction Insurance Bulletin

General liability forms now contain some detailed and extensive exclusions of coverage, particularly for contractors. The automobile exclusion is a few sentences while the environmental exclusions or personal injury wording can exceed a full policy page.

We draw a distinction here between excess liability and umbrella liability. Excess follows the underlying coverage form, it extends limits, not coverage. Umbrella liability extends coverage and limits.

So, how does umbrella coverage help contractors?

Scenario 1: Conflicting Liability Exclusions: inland marine or automobile

Liability for operating inland marine equipment, in this scenario, a truck mounted drill rig, falls under operations liability under the general liability policy.

In this case, the drill rig is mounted on a highway approved vehicle, a pick up truck.

If the truck were in an accident on the highway while carrying the rig to a site, no doubt the business automobile policy would cover the damage.

If the drill rig bit broke while operating and flew through a windshield on site, general liability would pay the damages.

Now, suppose with the rig tower up, the pickup truck rolled in the project parking lot injuring the project owners. Business automobile might decline since the rig tower was extended, use; and general liability might deny the claim since the vehicle was on a travel surface and simply transporting the rig.

The umbrella carrier would have to respond in either case. That coverage will unify the liability limits even if they need to subrogate both other policies.

Scenario #2: No Underlying or Excluded Coverage

Employment Practices Liability (EPL) or environmental issues are the best examples now. Some general liability policies exclude personal injury liability, which overlaps EPL. Very few umbrellas exclude either coverage.

Most general liability policies have lengthy and detailed exclusions for environmental liability. Umbrella policies do not have detailed exclusions so some area of coverage exists.

You would pay a retention ($1000 to $25,000 typically negotiable) and turn the claim over to your umbrella carrier.

So much liability language aims to exclude contracting scenarios, it pays to capture broader and unifying coverage like umbrella liability. 

Apr 01
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Five Ways to Support Parents of a Child With Special Needs

By Employment Resources

One in 68 children is diagnosed with autism according to the Centers for Disease Control and Prevention. April is Autism Awareness month, and it’s the perfect time to look around your workplace. How many parents have a child with a physical, mental or emotional disability? You can support these parents in five ways.

 

  1. Provide Health Insurance

 

With therapy, medical treatments, specialist visits, specialized equipment and so much more, caring for a child with special needs is expensive. Both full-time and part-time employees need healthcare coverage to decrease the financial burden, give them peace of mind and allow them to meet their child’s needs. Encourage your employer to provide a health savings account option, too, that pays for medical expenses health insurance might not cover.

 

  1. Offer Child Care

 

Finding reliable child care for special needs children challenges most parents. Offering child care during work hours, summers and school vacations ensures parents don’t miss work because their babysitter’s sick or school’s closed. Trained professionals can provide respite care one or two nights a month, too, and give employees a much-needed mental, emotional and physical break.

 

  1. Give Financial Assistance

 

Even with adequate health insurance, most families who are affected by special needs have big financial burdens. Organize a fundraiser to cover expenses like gasoline, copays and dietary items or collect gift cards to grocery, convenience and department stores.

 

  1. Host a Support Group

 

Everyone needs support, and talking to people who understand is a healthy way for parents to handle stress, problem solve and recharge. Schedule regular support meetings as you also raise awareness and offer support.

 

  1. Share Referrals

 

From estate lawyers to assistive technology information, parents of a child with special needs require plenty of resources. Post and regularly update a list of general referrals in the break room. Customize it based on your coworkers’ needs to make an even bigger impact.

 

Being a parent to a child with special needs is tough. Advocate for five key supports at your workplace. The parents of a child with special needs will appreciate your efforts and help.

Apr 01
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Are Workers Comp Benefits Taxable Income?

By Employment Resources

While every state operates under different workers comp laws and regulations, most employers are required to carry workers comp coverage. It typically pays two-thirds of your regular income, and workers comp benefits cover medical treatment associated with work injuries.

 

Workers comp is usually temporary, but you can receive it for an extended time period depending on the injury you sustained. If you are injured and can no longer work, workers comp may cover job training and job search expenses.

 

Whether you received workers comp benefits in 2014 or are you currently receiving benefits, you’ll want to know if those checks are considered taxable income. This information helps you prepare to file taxes this year and decide if now’s a good time to buy a house or vehicle.

 

What are the IRS Rules?

 

In general, the IRS does not consider workers comp benefits to be taxable income. According to IRS Publication 525, “Any amount an employee receives as workers’ compensation is fully exempt from tax if they are paid under a workers’ compensation act or a statute in the nature of a workers’ compensation act.”

 

What do Lenders Think?

 

Mortgage companies and auto lenders look closely at your income as they determine your eligibility for a loan. However, they typically will not count your workers comp benefits as income, especially if you still have your job and your rehab and recovery time is short. In this case, they may use your regular income to decide if you’re a good credit risk.

 

If you’ll be off work for a long time period, lenders may look at your credit score to determine if you’re a good loan candidate. It definitely pays to keep that score up at all times, including as you receive workers comp benefits.

 

Understanding whether or not workers comp benefits are taxable income helps you during tax season and as you purchase a home or vehicle. Although these benefits are usually not considered taxable income, discuss the details of your specific case with your human resources manager, insurance agent or accountant.

Apr 01
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Four Ways Your Tax Refund Can Make a Big Financial Impact

By Employment Resources

It’s tax month! Before you spend your entire refund on a shopping spree or exotic vacation, consider four ways your refund can make a big financial impact on your household budget, asset portfolio and financial health.

 

  1. Boost Retirement Savings

 

Are you lucky enough to work for an employer that matches your retirement savings? Take advantage of that free money and increase your contribution to ensure you get the maximum matching funds. You probably won’t miss those dollars in your paycheck now, but it will grow and make a big impact on your future retirement. Plus, your tax refund check can go into a designated account and cover gaps in your household budget if needed.

 

  1. Pad Emergency Savings

 

Do you have enough money saved to cover emergencies like a broken washing machine, damaged roof or health insurance deductible? Many financial planners suggest households save at least three to six  months of living expenses. Pad your emergency savings with your tax refund, and be prepared for whatever life throws at you in the near future.

 

  1. Pay Debt

 

The average American household carries $15,611 in credit card debt according to the Federal Reserve. Erase that burden or at least reduce it thanks to your tax refund. Apply this money to the debt balance with the highest interest rate. Whether it’s credit card debt or a student loan, car loan or mortgage, reducing your debt boosts your momentum to keep working toward financial freedom.

 

  1. Update Insurance Policies

 

Have you been putting off boosting your insurance coverage or buying a dental or life insurance policy because you couldn’t afford it? Turn your tax refund into insurance coverage. Your agent can provide details about coverage and costs to make sure you get insurance that’s right for you.

 

This tax season, take charge of your refund check and use it to make a big financial impact. Which one of these steps will you take this year?

Apr 01
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Five Steps Keep Food Safe and Employees Healthy at Work

By Employment Resources

Are you planning to celebrate World Health Day on April 7? This year’s theme is food safety, and it’s an important topic because two million people die each year from consuming unsafe food. Plus, over 200 diseases spread through food that’s contaminated by bacteria, parasites, viruses and chemicals. Follow five important tips at work that keep food safe and employees healthy this month and year round.

 

  1. Promote Cleanliness

 

Nobody wants to clean the break room, but cleanliness is the first step in food safety, so make sure someone takes responsible to:

 

*Disinfect the counters and tables daily.

*Wash and dry the dishes daily.

*Clean the fridge weekly.

 

While you’re promoting break room cleanliness in the break room, remember to wash your hands before  and after you eat.

 

  1. Separate Raw and Cooked Foods

 

Whether you bring or buy meals, strictly ensure that raw and cooked foods remain separate. Use designated cutting boards, cooking utensils and storage containers to ensure your meals and snacks remain safe to consume.

 

  1. Cook Food Thoroughly

 

Did you bring your famous egg omelets or beef soup to work? Heat your food properly. Soups and stews should be brought to boiling, and heat meats and poultry to an internal temperature of 165 degrees F.

 

  1. Keep Food at Safe Temperatures

 

Have you ever gotten distracted and forgotten about your food in the microwave? Cooked foods that sit at room temperature for longer than two hours are unsafe to eat. Monitor your food and eat it as soon as it’s hot. Then refrigerate cooked and perishable foods immediately as you maintain safe food temperatures.

 

  1. Use Safe Water and Raw Materials

 

Food safety depends on safe ingredients. Prepare beverages with water that’s safe to drink, and wash all fruits and veggies before you consume them. Toss expired foods right away for added food safety.

 

You don’t expect to get sick from your lunch break. That’s why you’ll want to follow five food safety steps at work. They help you and your coworkers celebrate World Health Day and stay healthy.

Apr 01
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Which Health Insurance Premiums are Deductible on Your Tax Return?

By Life and Health

As you file your 2014 tax return this month, consider your health insurance premiums. They’re an essential part of your budget, and it makes sense to deduct them if you can.

 

Employer-Provided Premiums

 

You can’t deduct health insurance premiums taken from your paycheck before taxes were deducted. However, you can deduct premiums you paid with after-tax money. See Schedule A of Form 1040 for details.

 

Medicare Premiums

 

Medicare premiums are considered deductible medical expenses in certain cases. Parts B, C and D premiums are deductible on Schedule A of your tax return. Part A is only deductible on Schedule A if you paid for it yourself and did not get it through Social Security.

 

Self-Employed Health Insurance Premiums

 

The health insurance premiums you pay as a sole proprietor, partnership partner or shareholder in a Sub S Corporation are deductible if the insurance is for your benefit, purchased in your name and under your business. Use the Self-Employed Health Insurance Deduction Worksheet to calculate your deduction, and list this expense on page 1 of Form 1040 as an adjustment to income. Premiums for your spouse and dependents and dental, vision and prescription coverage may also be deductible.

 

Utilize Schedule A

 

Even if you can’t deduct your health insurance premiums on your tax return, you might be able to utilize Schedule A. It itemizes your medical expenses which you can then deduct if they total more than 10 percent of your adjusted gross income. For example, your AGI is $50,000. Ten percent would be $5,000. If your itemized medical expenses total $7,000,  you can deduct $2,000. You won’t be able to deduct anything if your medical expenses total less than $5,000.

 

See IRS Publication 502 for a complete list of medical expenses you can deduct on Schedule A. A short list includes doctor visit copays, prescription medications, medically necessary equipment, dental treatments and vision exams.

 

Because deducting health insurance premiums can be complicated, see your human resources manager or accountant for more details. Then consider using these tips to prepare for tax season next year.

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