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HEALTH AND SAFETY IMPLICATIONS OF SHIFTWORK

By Workplace Safety

According to recent data collected by the Bureau of Labor Statistics, approximately 15 million people in the United States work on a rotating shift, night shift, or evening shift schedule. In addition, the total number of hours worked by employees in the United States is higher than most of Western Europe and Japan. Both working irregular shifts and working long hours have been shown to contribute to safety risks and health problems.

Shift workers tend to be more tired than the general population, which can lead to difficulty concentrating and slower reflexes. As a result, shift workers are more likely to make errors on the job or be involved in accidents. The stress of shiftwork might also cause such employees to acquire certain health conditions.

When an individual works at night, he or she is unable to get enough restorative sleep. Sleep following a night shift is usually shorter and less regenerative than sleep during the night would have been. During nighttime hours, body functions and brain activity slow down. Because the individual is already lacking sleep, he or she is likely to exhibit performance problems. Individuals who work rotating schedules will experience additional problems each time they must switch between day and night shifts.

In addition to fatigue and concentration problems, shiftwork can also lead to serious health problems. Research has shown that employees who work rotating shift schedules are more likely to experience digestive problems, such as nausea, constipation, and stomach ulcers. Heart conditions are also more common among shift workers than in the general population.

Because shiftwork is often unavoidable, it is important to design the work schedule so that it minimizes the stress of shiftwork as much as possible. A properly designed work schedule can prevent accidents, improve worker morale, and decrease the likelihood of employee health problems.

All workers have a natural circadian rhythm that tells their bodies when to sleep and be awake. For this reason, employees who must be at work during late night and early morning hours are likely to have more trouble focusing. Certain shift times might also prevent workers from seeing family and friends. To prevent problems that might result from unusual shift times, many employers avoid scheduling the same worker for late night or early morning shifts during all work periods.

Though it might seem like it would be easier for workers to adapt to an unusual shift if it were a permanent assignment, most workers readjust to a normal schedule on their days off. For this reason, the majority of employers assign shiftwork on a rotating schedule. Rotating schedules prevent a worker from constantly experiencing the stress associated with the night shift. However, rotating schedules require workers to make changes to readjust to new sleep patterns regularly. To prevent serious health problems, it is advisable to rotate a worker’s shift every few weeks, rather than weekly or after only a few days.

Another important factor to consider in shiftwork is the amount of time an employee has to rest. Employees who work eight-hour shifts have more hours in the day remaining for rest than employees who work 12-hour shifts. Unfortunately, the other tasks employees must perform after their shift will not decrease when they work overtime, so employees who work long shifts must often sacrifice sleep in order to make ends meet. To prevent a buildup of fatigue, employers of employees who must work long hours should avoid scheduling too many consecutive workdays for the same employee.

Employers who require workers to perform shiftwork should also teach employees effective coping skills to deal with the stress of the schedule. Employees working rotating shifts can improve their situations by getting as much sleep as possible during their time off. They should also make an effort to spend time with family and friends, exercise, and eat a balanced diet.

TAX CREDIT AVAILABLE FOR SMALL BUSINESSES

By Employment Resources

If you are a small employer and you sponsor a health plan for your employees, you might be eligible for a lucrative tax credit for tax years 2011, 2012 and 2013. As part of the Patient Protection and Affordable Care Act, Congress authorized this tax credit to help small businesses offset the costs of managing a health care plan for their employees.

How It Works

The IRS will refund up to 35% of premiums you pay toward your employer group Health insurance plan, in the form of a credit against your business income taxes. If your organization is tax-exempt, you may qualify for a credit of up to 25%.

To qualify for the credit, you must meet the following criteria:

  • You must have fewer than 25 full-time equivalents.
  • Your average worker must earn less than $50,000 per year from his or her employment with you.
  • You must pay at least half the premium to cover your employees, although not your employees’ dependents.

If your business has fewer than 10 employees, and you pay them annual wages of $25,000 or less, you may be able to qualify for the full credit. The credit phases out as you add more employees, and pay them more, until it phases out completely at the 25 worker and $50,000 mark.

The IRS does not count leased employees, nor owners of sole proprietorships, partners, or shareholders with more than a 2% ownership interest in an S-corporation or a 5% interest in a C-corporation. The IRS also typically does not count family members against you for the purpose of determining your credit.

Limitations on Annual Premiums

The IRS has placed limits on the amount of annual premium you can apply towards the credit. However, the precise limits vary depending upon your state. For information specific to your state, or for businesses with operations in multiple states, please don’t hesitate to give us a call for a free consultation.

How to Claim the Credit

To claim the credit, fill out IRS Form 8941 – Credit for Small Employer Health Insurance Premiums, and submit it with your tax return for the year. Incidentally, the credit has been in effect since tax year 2010. If you would have qualified and simply weren’t aware of it then, or missed it, you may be able to claim the credit by filing an amended tax return for years 2010 and 2011. Be sure to speak to your a qualified tax advisor.

MOST EMPLOYEES ARE WILLING TO TRADE PAY FOR BENEFITS

By Employment Resources

Since the financial crisis of 2008, America’s economy has continued to struggle. Unemployment rates are still high, and pay rates have been cut. In addition, retirement and health plans seem to have less generous offerings. Unfortunately, they are not as secure or predictable as they once were. Many employees are worried about their long-term retirement options. They are waiting to see if further reductions will be made in their benefits, which would result in higher upfront expenses.

Although the economic downturn brought mostly negative changes, one positive change that took place was the sharper focus on health spending and retirement security. With higher health costs and financial losses, more workers value security and want to pay for guaranteed benefits. A 2011 survey was performed to evaluate workers’ attitudes toward their employers’ benefits, their individual household finances and their retirement issues. This extensive survey also examined the impact of health and retirement benefits on retaining and recruiting employees.

Of all the findings in this survey, one that should be especially important to employers is the percentage of employees who said they were willing to pay more for good benefits and security. The survey showed that more than half of the respondents said they would be willing to trade some form of pay for better benefits. Most of the respondents in this percentage were older employees or younger males. Healthy workers and high earners also comprised a notable portion of that number. It is likely that the concerned older workers are still feeling the negative effects of their home values and individual retirement account balances deteriorating.

In comparison with data from prior years, the percentage of employees willing to pay more for good benefits is a substantial change. In 2009, only 46% were willing to pay more. As people gain experience with financial market volatility, their worries about the economy’s future continue growing. This prompts the rise in interest for solid benefits. Employees have learned from the financial crisis, and they know that future benefit cutbacks are possible.

The number of employees who would be willing sacrifice more take-home pay for solid benefits is expected to rise. Many are willing to sacrifice bonuses and other incentives to enjoy more predictable health costs and better retirement benefits. A significant amount of workers are also willing to give up paid time off for these positive changes. These issues are all important considerations for employers. Offering good benefits is a great way to attract and retain quality employees. To learn more about benefit changes, discuss the options with an agent.

SMALL GROUP INSURANCE COVERAGE BASICS

By Employment Resources

Many employers are frustrated because they are under the mistaken impression that they are too small to offer quality health benefits for their employees. Generally, however, this is not the case: Many states require insurance companies to provide group underwriting for companies with as few as two employees, including the owner.

Specific rules and qualifications vary by state. But as a general rule, small businesses with at least two to four full-time employees usually qualify for guaranteed-issue Group Health insurance benefits, provided they offer these benefits to all qualified employees, and that a minimum percentage of employees actually sign up for the plan.

This is important, because it helps put even very small businesses with just a few employees on a more level playing field with larger corporations and government employers, when it comes to attracting and retaining talent in the marketplace.

It also means it is quite possible for even small businesses to provide much needed health benefits even for those employees who have medical problems, or who have families with medical issues. Coverage of Pre-existing Conditions. Under the Health Insurance Protection and Portability Act, federal law restricts the ability of insurance companies to exclude coverage for pre-existing conditions. Specifically, they may impose a “look-back” period of no more than six months, and exclude pre-existing medical conditions for not longer than 12 months. Individual states may shorten these periods, based on their own needs.

Coverage of Pre-existing Conditions. Under the Health Insurance Protection and Portability Act, federal law restricts the ability of insurance companies to exclude coverage for pre-existing conditions. Specifically, they may impose a “look-back” period of no more than six months, and exclude pre-existing medical conditions for not longer than 12 months. Individual states may shorten these periods, based on their own needs.

However, as long as you or your employees maintain coverage, and do not have a lapse in coverage of more than 63 days, insurance companies cannot exclude coverage of any pre-existing condition normally included under the plan. To avoid any problems, ensure you have no break in coverage, whether that coverage comes from an individual plan, a workplace sponsored plan, or from COBRA continuation coverage. As long as the insured maintains coverage, and has no break in coverage lasting more than 63 days, the law limits insurers’ ability to discriminate on the basis of medical history.

If you do have a break in coverage, though, all bets are off.

Tax Credit. Under the new Affordable Care Act, Congress is providing a tax incentive to encourage small employers to provide Health insurance benefits for their workers. The tax credit is a dollar-for-dollar reduction of the business’s income tax liabilities, and is therefore far more lucrative than a tax deduction, which only offsets 35 cents on the dollar, at most.

Not all businesses qualify for the tax credit. The qualification criteria are as follows:

  • You must employ fewer than 25 workers or full-time equivalents.
  • Your average worker must not make more than $50,000 per year from working for you (their outside earnings don’t count against you).
  • You must pay at least 50% of your workers premiums – but not necessarily premiums to cover their dependents.

The credit is calculated on a sliding scale: The lower your workers’ pay and the fewer of them you hire, the greater your tax credit under the Affordable Care Act.

Employers can select a variety of Health insurance plans to offer employees in a small group. Point of service plans tend to offer the richest benefits and the widest choice of providers, but may have relatively high premiums.

To save money, employers may select a health maintenance organization or preferred provider organization, both of which typically restrict non-emergency providers to a pre-approved list in exchange for discounts, which they pass on to customers in the form of lower premiums.

Employers can also choose to offer high-deductible health plans and health savings account combinations, or HDHP/HSAs, which have proven effective in reducing health care premiums for many employers compared with traditional medical plans. However, workers enrolled in these plans bear a greater burden in assuming risk, in the form of higher premiums.

Call us today. Health insurance plans are extremely situational-dependent. Different businesses have different needs, and premiums can be set very differently depending on your location and your employee census. The best course of action is to contact us today for a no-obligation consultation and detailed quote. From there, our agents will work with your staff to ensure an efficient enrollment process.

DON’T LET DOMESTIC VIOLENCE COME TO WORK!

By Risk Management Bulletin

Thousands of workers suffer abuse at home — and, all too often, this abuse spills over into the workplace. According to the American Bar Association Commission on Domestic Violence, there are 30,000 to 40,000 incidents of on-the-job violence a year in which the victims knew their attackers intimately. More than seven in ten human resources and security personnel (71%) surveyed have seen an incident of domestic violence on company property.

A violent episode at work can easily endanger co-workers, as well as the victim. What’s more, female workers who are abused at home have higher rates of absenteeism, drug abuse, and depression that increase Health insurance costs and lower productivity — costing businesses more than $4.5 billion a year.

Federal and state law requires employers to provide a safe workplace for all employees. Failure to act on the knowledge that an incident of domestic violence could threaten workers on the job places a huge potential liability on your company.

In deciding whether an employee might be a victim of domestic violence, beware if the worker:

  • Has unexplained bruises that don’t seem to fit their injuries.
  • Wears inappropriate clothing that might be covering up injuries.
  • Seems distracted at work.
  • Has a high rate of absenteeism.
  • Appears anxious, upset, or depressed.
  • Receives repeated, upsetting telephone calls during the work shift.

If you notice any of these signs, talk to your employee privately, telling them what signs you noticed and expressing concern about possible abuse. Be supportive and keep this information confidential, except for individuals who need to know, such as security personnel. Offer company and community support and be flexible with the employee’s working arrangements.

According to the Family Violence Prevention Fund, supervisors are usually the first people to become aware of an employee who might be a domestic violence victim. The fund recommends that supervisors refer potential victims to your company’s Employee Assistance Program (EAP) or a community domestic violence program. The National Domestic Violence Hotline number is (800) 799-SAFE (7233).

TEN WAYS TO FIGHT PHONE FRAUD

By Risk Management Bulletin

Industry analysts estimate that telephone fraud costs American businesses and residences as much as $4 billion per year. Whether you’re installing a new phone system or just want to take full advantage of your present system, you need to protect your business against this threat.

Although hackers might break into telephone systems for thrills, other criminals make a living at it. These lawbreakers often sell their services to “retailers,” who offer stolen phone-access numbers to drug traffickers or illegal immigrants. This scam can translate into expensive calls to distant destinations in a brief time. The major long-distance carriers all offer protection packages that provide users with 24-hour toll fraud monitoring, training, and liability limits.

Experts recommend these basic proactive measures to protect your business against phone fraud:

  1. Adopt a prevention program. Use the security measures your system provides; change passwords and/or access codes frequently.
  2. Because most thieves are interested in making international calls, block calls to countries where you don’t do business. This means that no one — from the president on down to the cleaning crew — can make the calls. Taking this precaution means that, although hackers might call in, they won’t receive authorization to call Peru, for instance.
  3. Eliminate direct inward system access (DISA) or remote access, which allows outside producers to access an outbound line with an 800 number. Issue phone credit cards instead.
  4. Review call-accounting reports to identify fraudulent usage. Check for repeated failed password attempts. Look for long calls, calls after certain hours, and other suspicious activities.
  5. Secure your voice mailbox and auto-answer attendant system to prevent an inbound caller from getting an outside line through these automated devices. Change passwords to access mailboxes every month or so.
  6. Discuss security measures with your long-distance phone company for ways to decrease your vulnerability. The company might have informational materials for your staff.
  7. Educate employees, starting with your switchboard operator, not to transfer incoming calls to an outside operator. Outside producers should make sure that no one is listening or watching when they read or key in their calling-card number. Phone companies will never call a customer for verification of a personal identification number (PIN) — which means that employees shouldn’t give it out to any caller.
  8. If you have a PBX system, conduct a monthly security audit on the system, and check authorization codes.
  9. Consider buying a PBX protection package, which can help you monitor potentially fraudulent activity, such as repeated searches for a dial tone, and can limit your liability for unauthorized calls. If you have this package, you might be eligible for a discount on toll-fraud insurance.
  10. Consider insurance coverage for toll fraud.

CYBER LIABILITY: IS YOUR BUSINESS PREPARED?

By Risk Management Bulletin

In today’s world, every business needs to keep its digital information secure, available, and organized. We’ve seen an explosive growth in high-profile cyber incidents, such as computer viruses, data theft, identity theft and other cyber-crimes — and most if these incidents aren’t even reported!

What happens when you suffer a loss or breach of data? More specifically, what are the implications from an insurance standpoint?

Consider these scenarios:

  • One of your employees accidently opens an e-mail that has a computer virus. The virus crashes the company’s network, but not before spreading itself to everyone in its contact list, including your customers. As a result, one of your customers gets the same virus, which wipes out his network — and leads him to sue you for damages.
  • A disgruntled former employee logs into your network and blocks access to the company Web site, so that customers can’t access their accounts or do business. After two weeks, you’re still not operating normally — and you’re losing customers by the hour. What’s more, some of them are suing you.
  • A virus hacks into your Web site, corrupts all of the content, and then e-mails a virus link to your customers. You rush to take the site down, but not before suffering extensive damage — not to mention the cost of rebuilding the computer network and site. Meanwhile, a number of disgruntled major customers have taken their business elsewhere.

What do these three scenarios have in common? Most Business Insurance policies wouldn’t cover the losses! The standard Building and Personal Property Form covers loss of data only up to $2,500 a year. Commercial General Liability (CGL) policies exclude both damage to data and that caused by loss of data.

According to the Cincinnati Insurance Board, most small businesses are woefully unaware of the implications of cyber threats. “Cyber losses are increasing, and the cost to recover from a data breach can be staggering,” says the Board’s EVP Ron Eveleigh. “At this time, coverage is limited for these cyber losses, but the coverage is evolving. Although some policies will provide limited coverage for broad data and privacy breaches, most CGL policies still need a specific endorsement for cyber losses.

Our risk management professionals would be happy to help craft coverage to protect your business against losses from cyber crimes.

EEOC SUES TRUCKING COMPANY FOR IMPROPER PRE- HIRE TESTING

By Your Employee Matters

According to the EEOC’s suit, Celadon, a trucking company headquartered in Indianapolis, performed medical examinations on applicants for driving positions before making conditional offers of employment to them. The agency alleged that Celadon conducted these examinations in a manner inconsistent with the standards set by the U.S. Department of Transportation / Federal Motor Carriers Administration, and then used the results of those non-compliant examinations to reject qualified applicants Celadon thought were disabled.

Such alleged conduct violates the ADA, which prohibits employers from subjecting applicants to medical examinations before making a conditional offer of employment, and also prohibits discrimination based on disability or perceived disability. The EEOC filed suit (EEOC v. Celadon Trucking Services, Inc., Cause No. 1:12-cv-0275-SEB-TAB) in U.S. District Court for the Southern District of Indiana, Indianapolis Division, after first attempting to reach a pre-litigation settlement through its conciliation process.

“Celadon and all motor carriers must conduct medical examinations in accordance with the ADA,” said Laurie Young, regional attorney for the Indianapolis District Office of the EEOC. “Under the ADA, an employer cannot conduct a medical examination of a job applicant until the employer has given the applicant a job offer conditioned upon the applicant passing the examination.The EEOC will enforce these obligations.”

The EEOC is seeking compensatory and punitive damages against the company, as well as other relief, including a permanent injunction to prevent Celadon from engaging in any further employment practice that violates the ADA.

Lesson to employers: If you’re going to do pre-hire physicals make sure to do so only after you make a conditional job offer. See the report and forms in HR That Works.

IRAC — A LAWYER’S WAY OF THINKING

By Your Employee Matters

At the beginning of law school, every student learns “the method” used to help clients solve problems. IRAC stands for Issue, Rule, Analysis, and Conclusion.

  • Issue: Issue spotting is a lawyer’s tool in trade. Never assume you know what the issues are without changing viewpoints or getting outside input. For example, HR executives not highly experienced in the law might assume the issue might relate to a Workers Comp return-to-work situation when in fact it’s also related to both the ADA and the FMLA. They might assume that the issue is getting rid of a poor performing employee when the real issue is what the manager did to create this poor performance. One reason that appellate tribunals consist of multiple judges is so that there can be a variety of viewpoints, especially when establishing the true issue. The ability to spot issues is one reason you should have a lawyer check your head when you have a serious problem.
  • Rule: Rules come in many forms. There are hard and fast rules, such as those promulgated by legislatures and the court system. Then there are softer ones, such as those that relate to culture or values. In many cases, a whole host of rules can apply to a situation. You might have a contract, policy, procedure, habit, government requirement, vendor requirement, or some other rule that applies.
  • Analysis: Now that you know the issues are, as well as the rules, it’s time to do your analysis. As lawyers know, tough facts make for tough cases. There are times when applying a rule is not in your best interest. For example, the normal rule of the road is that you walk facing traffic; however, there might be a situation in which it’s safer to walk with traffic. In this case, complying with the law would generate an unsafe outcome. Experts make their money by knowing how to judge a situation for what it is, and not for what you’d like it to be. Their detached analysis is your best friend.
  • Conclusion: Last, but not least, you need to make a decision. Of course, doing nothing is a decision in itself (sometimes this is the best course of action). In other cases, you need to take swift and immediate action. One of the main questions in deciding what path to take is to ask “Is there a way to get to the outcome we’re seeking that benefits all parties?” When we come to a conclusion, we must consider all stakeholders to a situation.

After answering questions from professors and law school exams for three straight years, IRAC becomes part of who lawyers are. There are many ways to “frame” a situation; IRAC adds one more arrow in your problem-solving quiver. May you use it well!

INVITING EMPLOYEES TO LEAVE

By Your Employee Matters

During the past year, I’ve read at least a dozen articles citing statistics that anywhere from a quarter to 42% of employees intend to look for new jobs once the economy recovers. My reaction to these articles: Seriously? Where are these folks going to go? To the companies where one-third of their employees are leaving? I wonder how much energy employees who plan on leaving are putting into their current job. My bet is that if they took the energy they’re using to think about employment elsewhere and applied it in their current job, they wouldn’t need to go anywhere!

Management should take these surveys as a sign of dissatisfaction — which shouldn’t come as a surprise. By definition, half of your employees are always happier in their jobs than the other half. The solution: Try to limit your hiring to these happy folks and to do everything possible to keep them that way.

Suppose you were bold enough to invite your dissatisfied employees to quit? Zappos does this with its new trainees. After they complete training, the company offers them a $3,000 bonus if they decide to quit. Zappos CEO Tony Hsieh believes that he’s better off giving an employee who has only one foot in the door $3,000 to leave, rather than keeping them. Even if these dissatisfied workers were only 10% less productive than the other Zappos’ employees, this loss of productivity would cost the company far more than the $3,000 “quitting bonus,” over the long run.

Invite your employees to one-on-one conversations about job satisfaction. Chances are, if an employee believes something feels “unfair” in the relationship, you can deal with the situation like two adults who don’t need unnecessary dramas. If the employee would feel better leaving, that’s their choice. However, if they’d like to feel better about their job, and you want them to stay, make it clear that you’re willing to work with them.

As I discuss in the Victims, Villains and Heroes book, even though there are few real workplace victims today, there’s a growing victim mentality. Anyone who wishes to educate themselves and work hard can enjoy employment opportunities; your job is to keep only the best on the bus.