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robintek

Mar 01
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WHY ARE EMPLOYEES SO UNHAPPY?

By Your Employee Matters

Poll after poll describes how dissatisfied today’s workers are. For example, in a recent poll by Staples, 33% of employees said they feel unappreciated at work, while 38% were searching for a new job. Likewise, in the annual Education and Work poll conducted by Gallup, dissatisfaction with healthcare benefits increased 11 points in the past three years, followed by a seven-point increase in dissatisfaction over the potential for promotion at work. According to the poll, job issues causing the most dissatisfaction were: On-the-job stress (34%), Health insurance benefits (30%), compensation (30%), employer retirement plan (28%), chances for promotion (26%), vacation time (20%), recognition for work accomplishments (19%), job security (18%), and amount of work required on the job (17%).

What can we learn from this? Here are my observations:

  1. Half of employees are more satisfied at work than the other half. This is the way it always has been and always will be.
  2. Stressful financial times cause us to focus on productivity, efficiency, and running lean — which generates a lot of stress. As business owners and managers, we should do everything possible to acknowledge this stress and try to do something about it. For example, do you encourage your employees to take breaks or do you really keep your fingers crossed, hoping they’ll work through them at their desks? If you don’t already have a wellness plan, you should create one because it can help with stress management.
  3. Health insurance benefits have greater meaning to employees than straight compensation. In his book, Predictably Irrational, Daniel Ariely explains that health care benefits are a social contract, while compensation is an economic contract. Apparently, a dollar spent on benefits is worth more in total impact than a dollar spent on compensation — something that you should bear in mind when gutting your benefit plans.
  4. Years ago, the Gallup organization did the largest poll about employee retention ever conducted. It concluded that there were three main reasons for turnover:
    • The person in the job is a misfit; they don’t have the skills or personality profile to succeed in it. In a sense, both employee and employer are filling a gap that will be short lived.
    • A lack of perceived career growth or opportunity. Here’s where management has to step in with such tools as career ladders, career days, succession planning, and an overall discussion about finding the opportunity at your company.
    • The most important relationship an employee has is the one with his or her immediate boss. Guess what? Half of all bosses are above average and half of them are below average. Which half do you have managing for you? How much training do you offer managers on being better managers? Do yourself a favor and take advantage of the extensive training on HR That Works that will help them be better managers
  5. It’s essential for management not to crawl into a cave during stressful times. Rather, they need to stand out front, give honest information, and handle the tough questions. Unfortunately, at too many companies, people are surviving as individuals, rather than as a team.
  6. As Steven Covey says, begin with your circle of influence. Start right where you are and focus on those people you work with or manage directly.
Mar 01
Love0

NINTH CIRCUIT OVERRULES NLRB ON EMPLOYEE PROTECTIONS

By Your Employee Matters

The Ninth Circuit, known as the most liberal and employee-friendly federal circuit in the nation, recently overrode an NLRB ruling on employee protections. In this case, an employee complained legitimately about working conditions, but lost his protection when he started berating his manager, calling him plenty of F-word names we cannot repeat here and also telling him that he was stupid, nobody liked him, and that everybody talked about him behind his back. During the employee’s outburst, he stood up, pushed his chair aside, and told the manager that if he fired him the manager would regret it. The manager then fired the employee.

The Court reminded us that in order for an employee to lose NLRA protections, it would consider these factors:

  1. The place of the discussion
  2. The subject matter of the discussion
  3. The nature of the employee’s outburst
  4. Whether the outburst was in any way related to a fair labor practice

The Board is required to balance those factors carefully. In the end, the Act permits some leeway for impulsive behavior, which must be balanced against the employer’s right to maintain order and discipline. As the Court reminded us, if an employee is fired for denouncing his supervisor in obscene, personally degrading, and/or insubordinate terms, the employee may lose the protection of the National Labor Relations Act. When the Court looked at the language, the physically aggressive nature of the employee, and his flat-out belligerence, they decided that he had lost his protections.

As mentioned in previous posts, the NLRB has now waded into social media waters with these conversations. So far, its decisions have been very pro-employee, as was the underlying decision in this case.

Click here to read the case.

Mar 01
Love0

EMPLOYEE LOSES FMLA PROTECTION FOR NOT COOPERATING

By Your Employee Matters

After being terminated, a plaintiff filed an FMLA retaliation claim; however, she could not prove any improper employer conduct, only improper conduct on her part. The plaintiff’s untimely documentation under the FMLA resulted in her eventual termination, which the court then upheld. It also rejected any argument of “intermittent leave,” because this was not indicated in the FMLA certification or by agreement.

A note from the court to the wise:

“Employers facing questionable certifications have two preferable options: 1) they can require the employee to obtain a second opinion from a different provider at the employer’s expense; or, 2) after granting the employee the opportunity to correct any shortcomings, they can obtain the employee’s permission to clarify or authenticate a questionable certification with the original health care provider. Although these measures are discretionary, utilizing them would avoid the factual disputes and questions of reasonableness that conceivably arise from the employer’s decision to classify an FMLA request as facially invalid without first working with the employee to resolve any discrepancies.”

Click here to read this case, a classic example of the FMLA gone wrong.

Mar 01
Love0

EDITOR’S COLUMN: SEVEN EMPLOYMENT PRACTICE TRENDS TO FOLLOW

By Your Employee Matters

The law is an evolving landscape. Here are some items to watch for in 2012.

  1. The continued influence of the NLRB over the private workplace — Not only is the NLRB continually making it easier to organize; it has also ventured into the social media arena, and has begun reviewing independent contractor issues (the board focuses on these issues because independent contractors can’t unionize).
  2. Continuing attack on the independent contractor classification — The IRS and state agencies want their tax dollars and are clamping down on 1099 misclassifications. See http://www.dol.gov/whd/workers/
    misclassification/     and http://www.1099timebomb.com.
  3. Increasing coordination among agencies — If you misclassified someone as an independent contractor, not only can they now organize your company, but the IRS and state agencies will probably be coming after you for back taxes, failure to supply Workers Compensation insurance, overtime, and other expenses. If you have independent contractors, I encourage you to look at the Independent Contractor Training Module, which includes a report, a checklist, and more.
  4. Continued rise in disability accommodation claims — Because more and more Americans are becoming disabled, you can expect a continued growth in disability accommodation claims. Last year, the EEOC was very aggressive on failure to accommodate claims. For example, Verizon had to pay handsomely because its no-fault attendance policies violated both the ADA and FMLA. As always, you can get help from legal counsel and use the resources of the Job Accommodation Network. http://askjan.org/
  5. An increase in benefits related claims — It seems as if every employer is looking for a plan to reduce its overall benefit costs. Over the year, we’ve been questioned about all sorts of carve-out schemes, the impact of putting employees onto somebody else’s payroll, giving one group one plan and another group of employees a different plan, asking people to use their Medicare instead of company benefits, and so on. This activity is sure to generate ERISA and discrimination claims. The DOL has just updated its Affordable Care Act pages. See http://www.healthcare.gov/law/index.html http://www.dol.gov/ebsa/healthreform and Frequently Asked Questions from Employers Regarding Automatic Enrollment, Employer Shared Responsibility, and Waiting Periods.
  6. Social media craziness — It’s only just begun. The risk implications can be severe and immediate. Not having a well-thought out policy is a big mistake. See the Sample Policy on HR That Works and have an attorney review it.
  7. Restrictions on background checks — The EEOC and state agencies are clamping down on employers’ ability to obtain credit and criminal background information. Make sure you use a background check company such as Global HR Research that knows the law.
Mar 01
Love0

LONG-TERM DISABILITY DATA AND TRENDS

By Life and Health

The Council for Disability Awareness began conducting annual reviews of United States disability claims in 2005. In 2011, the CDA reviewed quantitative and qualitative data gathered during a survey conducted in 2010 and used the results to compose a report. The purpose of the report is to identify trends in disability claims and use these trends for evaluation of the U.S. system.

Findings of the Survey. According to the CDA’s survey, insurance companies with CDA memberships made approximately $8.3 million in long-term disability payments during 2010, which represents an increase of 1% from 2009. Fifty-six percent of the companies participating in the survey reported an increase in claims since 2009, mainly because of the recession.

Companies participating in the survey reported that 0.6% fewer employers were offering Disability insurance programs to employees during 2010. They also reported that the number of people insured decreased by 0.8% as a result of job loss, decreased participation in plans, and a lower number of employers offering plans to workers.

The 2010 CDA survey also showed that insurance companies with membership in the CDA were remitting disability payments to 587,000 disabled individuals in the U.S. This number is 0.3% higher than the result from the 2009 survey. In 2010, more than 95% of the long-term disability claims made were not work-related. Seventy-two percent of the individuals receiving long-term disability payments also qualified for SSDI during 2010.

Reasons for Disability Claims. The CDA report also seeks to determine the main causes for long-term disability claims. According to the report, conditions of the connective tissue and musculoskeletal system were the leading causes for newly approved disability claims in 2010 and accounted for 30% of new disability claims. Cancer is the second most frequent reason for new claims, though its overall incidence decreased in 2010.

The number of new disability claims caused by complications from childbirth and pregnancy decreased in 2010. There were also fewer claims resulting from injuries during this year. However, new claims caused by parasitic diseases, infections, and disabling mental disorders increased in 2010.

Despite the overall increase in long-term disability claims, the majority of companies participating in the survey stated that the incidence of new claims was better than expected for 2010, given the uncertainty of the economic climate. However, disability claims are lasting longer than they had in previous years. Most companies believe that this is due to the severity of the recession and the high unemployment rate in the U.S. Approximately 50% of companies participating in the survey expect a slight increase in new claims next year, while the other 50% expect no change.

SSDI Data and Trends. Approximately 152 million U.S. workers were covered under the SSDI program in 2010, which represents a slight increase from 2009. More male workers were covered than female workers. 8.2 million individuals were receiving benefits in 2010, and disabled individuals received a total of $115 billion from the Social Security Administration during the year. The total number of disabled workers is growing steadily with musculoskeletal disorders as the most common cause for claims. For the first time ever, more than 1 million new SSDI awards were made during 2010.

Long-Term Trends in SSDI. Ten percent more workers were covered under SSDI in 2010 than in 2000. The amount of female workers covered has grown more rapidly than the population of covered males, and the average age of covered workers has increased. In the past decade, new applications for SSDI have more than doubled, and the number of approved workers has increased by 63%.

The overall disability rate is increasing for both genders, but it is increasing faster for women than men. New awards for connective tissue and musculoskeletal disorders are increasing, while the incidence of new awards for circulatory diseases is decreasing. Injuries, which are typically believed to be a predominant cause of disability, account for only 5% of new SSDI awards.

Mar 01
Love0

KNOW THE FACTS ABOUT LIFE INSURANCE AND THE PROCEEDS OF YOUR ESTATE

By Life and Health

Everyone needs Life insurance, but not everyone has a good understanding of this important type of insurance. Two of the most frequently asked questions that insurance professionals get from people are:

#1: Why do I need Life insurance? Although it might seem oversimplified, the answer is: Everyone needs Life insurance.

If you are wealthy, Life insurance proceeds will pay taxes, final expenses, outstanding bills (such as mortgages, car loans, credit cards, etc.) so that your family gets the full value of everything you have spent a lifetime working to accumulate.

Conversely, if you are not independently wealthy, then Life insurance is the only vehicle that will “create” an instant estate upon your death that can be passed on to your loved ones. What might have been denied to you during your life time through no fault of your own, despite hard work and effort, you can attain at death with a Life insurance policy!

There is nothing else in the financial world that can do for you and your family what a Life insurance policy can do, guaranteed, whether you die tomorrow or 50 years from now.

When a loved one or close family friend passes away, there are certain things that need to be done right away in order to be sure that the beneficiary gets the proceeds from the insurance. Begin by carefully checking the person’s files and telephone book for names and contact information of their insurance agent(s). Get in touch with every insurance agent and company with which they had a policy, even if you are not sure it is in force. Speak with their employer’s HR department, both current and previous to determine if there are any insurance benefits in effect. Check the mail for up to a year after the passing for notices from insurance companies about premiums due, etc. Look over the past several years of tax returns for any references to interest received or interest paid from or to a Life insurance company. These steps will help you to determine whether you have covered all the possibilities. If you need help locating a Life insurance company, check with the state insurance department or A.M. Best Co. Be sure to get several copies of the death certificate since you will need this to file a claim with each company.

#2: How do my beneficiaries (spouse, children) receive the proceeds? Don’t make the critical error of assuming that your beneficiaries will automatically receive your estate!

To start with, most states have very specific guidelines regarding how an estate will be probated if you die without a will. Your spouse/children may not automatically get everything you own. In fact, the state will create a plan for the distribution of your estate if you don’t have a will. If this occurs, the distribution probably will not be what you had envisioned!

Some people believe, “I don’t really have a lot of money, so I don’t need a will to take care of things.” Incorrect! Estate planning is often thought of as something only rich people need. Of course, the larger the estate the more complex the will needed to handle the distribution, but even a modest estate requires a will to be sure your assets go where you want them to go. And, do not think a simple one page “boiler plate” document will suffice. These wills can often create more problems than they solve. Even a minor error or oversight can negate everything.

Remember, you are not going to be there to make your wishes heard; the only voice you will have is the one in your will or trust, so do not gamble. It is just too important an issue to take chances. Speak with one of our insurance agents to make sure your final wishes are documented in full.

Mar 01
Love0

HOW YOU CAN REDUCE YOUR TAXES AND HEALTH INSURANCE COSTS WITH HSAs

By Life and Health

For years, small business owners, the self-employed, and people who don’t get their health insurance from their employers have faced a dilemma: For quality health insurance premiums to be affordable, you need to set a fairly high deductible. On the other hand, any money you save is generally taxed. Which makes it that much more difficult to cover your deductible. That’s where health savings accounts come in.

The Health Savings Account, or HSA, lets you defer taxes on any money you contribute, in order to cover out-of-pocket medical expenses. The catch: To contribute, you have to buy a special kind of policy called a High-Deductible Health Plan, or HDHP.

High-Deductible Health Plans Explained. HDHPs are major medical policies with higher deductibles than one normally finds in other plans. Premiums low by restricting coverage to major medical events. The risk of less costly procedures or minor medical events is retained by the consumer, not the insurance company.

For policies covering only yourself, your annual deductible must be at least $1,200, as of 2012. The maximum annual deductible and other out-of-pocket expenses cannot be more than $6,050. For family coverage, the limits are $2,400 and $12,100.

HSA and HDHP Eligibility. To enroll in an HSA/HDHP, you must not be enrolled in Medicare, nor have coverage under any other health plan. Additionally, no one else must be claiming you as a dependent on their tax returns. The IRS considers you eligible for an HSA all year long if you were eligible on December 1st of the previous year. However, a special “testing period” may apply if there are any changes in your eligibility status.

HSA Contribution Limits and Taxation. As of 2012, the most you can contribute to an HSA is $3,100, and the limit for families is $6,250. Those aged 55 or over can contribute an additional $1,000 per year. Currently, the base contribution limits are indexed to inflation, but not the 55+ catch-up contribution limit. If you contribute too much, you will be liable for a 6% excise tax on the overage.

Contributions are tax deductible, and all growth in an HSA is tax-deferred. If you withdraw the money to pay for a bona fide medical expense, the amount withdrawn is tax free. However, any withdraws you make to pay non-qualified expenses, or for any other reason other than medical expenses, is taxable as ordinary income, and subject to a 10% penalty.

Preventive Care. Some plans will waive your deductible for preventative care. Examples include tests, checkups, mammograms and some diagnostic procedures.

Who Should Consider a HSA/HDHP?

HSA/HDHPs tend to work best for those who are in reasonably good health, with no reason to believe they will incur ongoing medical expenses.

  • You are a small-business owner, sole proprietor or independent contractor.
  • You don’t get coverage from a workplace plan.
  • You and your family are in generally good health and don’t require routine, ongoing medical treatment.
  • You have enough income to contribute each year.
  • You are in a higher tax bracket. You want to keep premiums low.
  • You can afford to absorb the risk of a $3,100 or $6,250 medical expense, should something happen to your family.

HSA/HDHP’s may not be for you if you will have trouble coming up with the deductible, or if you will wind up delaying needed health care because of the higher deductible.

Claiming the Deduction

To claim a deduction for a health savings account contribution, fill out an IRS form 8889, Health Savings Accounts, and submit it to the IRS along with your personal income tax return. You must use a Form 1040 or, if you are a non-resident of the United States, a 1040NR to claim the deduction; you cannot claim the deduction if you file using a Form 1040-EZ or a 1040A.

For complete information on health savings accounts, see IRS Publication 969. Contribution deadlines for HSAs work similarly to those for IRAs: You have until April 15, 2012 to make your 2011 contributions (however, the caps for 2011 are lower – $3,050 for singles and $6,150 for families.) Similarly, you have until April 15, 2013 to make your contributions for 2012, and so on.

Mar 01
Love0

HOMEOWNERS POLICIES & JEWELRY

By Personal Perspective

After receiving valuable jewelry, it’s important to contact an insurance agent immediately. It’s important to keep in mind that most Homeowners policies place limitations on coverage for personal valuable items. This means that owners of these valuable items might not receive the full value if any of the items are stolen or lost. As a general rule, most Homeowners policies provide coverage for possessions up to 50% of the total coverage amount chosen. This means that a person who has a $600,000 policy would enjoy coverage as much as $300,000.

However, most policies place limitations on certain types of personal belongings. For example, a policy provider may offer to cover $1,500 or more for all jewelry if theft occurs or the jewelry is damaged. There are several other categories of personal belongings that have limited reimbursement terms. Firearms, stamps, furs, coins and silverware are examples of such items. Homeowners should be sure to read the section of their Homeowners policies regarding contents and additional coverage. It’s important to remember that accidental loss is not usually covered. This means that a woman who loses her engagement ring will not receive payment from the Homeowners insurance company.

Homeowners who want to raise their coverage limit to ensure protection for loss and theft cases should contact an agent immediately. It’s best to ask the agent to schedule the particular jewelry item or add a special rider to an existing policy. In some cases, a written appraisal may be required, so it’s best to ask an agent if this will be necessary. Usually a detailed receipt is sufficient proof for the value of the item. After a value schedule is assigned to the item, the owner has full protection for the total amount if the item is lost, destroyed or stolen. This makes the claims experience simpler since there isn’t a need for an investigation about the item’s value. In addition to this, there is no deductible assigned to the items.

Since additional coverage is so affordable, it’s best for all homeowners who have valuable jewelry or other special items to speak with their agent. Agents are able to make an assessment of what should be insured and provide valuable advice. As a general rule, Homeowners policies don’t assign specific limits on electronic devices aside from the overall limit for possessions. It’s best for homeowners to insure their valuable items in such a way as to ensure that replacement-value coverage is in place. To learn more about the various types of riders and affordable coverage options, contact our office today.

Mar 01
Love0

HOMEOWNERS INSURANCE & SOCIAL GATHERINGS

By Personal Perspective

Many homeowners enjoy throwing parties for holidays or special events. If a party is in the near future, be sure that individual Homeowners coverage is adequate. Guests who are injured might need to file an injury claim if their vehicle is damaged, if they fall down or if a pet bites them. Research shows that about 75% of adult homeowners who plan social gatherings in their homes do not have a personal umbrella policy. This makes them more vulnerable to lawsuits stemming from guests who suffer injuries. The same research study showed that the remainder of the homeowners surveyed did not know what type of coverage they had. This means it is likely that the percentage of homeowners who do not have adequate coverage is more than 75%. However, they should have this extra coverage to protect themselves from lawsuits. Although dog bites and falls are common, alcohol is one liability issue that is often overlooked but is very risky.

Alcoholic drinks are viewed as a way to relax and enjoy socializing. However, there is one sobering fact that many homeowners who plan to serve these drinks should know. In 30 states, homeowners might be responsible for damages arising from any auto accidents caused by their intoxicated guests who choose to drive home. In a research survey, more than 50% of homeowners said they agreed that party hosts should be responsible for their guests’ safety. However, very few took any steps to obtain adequate insurance coverage. The research study concluded that most people avoid purchasing a Personal Umbrella policy because they are under the impression that their regular Homeowners coverage provides adequate protection for such matters. Since many lawsuits include large awards and medical costs, it is easy for one incident to exceed the homeowners liability limits.

Homeowners must take two steps to ensure they are protected. First, it is imperative for them to contact a personal agent to discuss Umbrella policy options. It is also important to take the agent’s advice to avoid facing a costly lawsuit. The second step homeowners must take is to read the following suggestions, which are designed to reduce their risk of lawsuits from intoxicated party guests:

  • Instead of having the party at a personal residence, reserve space in a restaurant or bar that has a liquor license.
  • Ensure that there are filling food options and non-alcoholic beverage choices available.
  • To avoid trouble from party-crashing strangers, limit invitations to friends or familiar people.
  • For guests who appear drunk, provide transportation or overnight accommodations.
  • Avoid serving alcohol to guests who appear intoxicated.
  • Plan activities that draw attention away from drinking alcohol.
  • If several guests are expected at a home party, consider hiring an off-duty police officer to handle problems and discreetly monitor guests’ alcohol consumption.
  • Take away all alcoholic drinks at least one hour before the party is supposed to end.
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