On March 4, 2011, I spoke at the Santa Clara Chamber of Commerce on the topic of the 3 most common employee mistakes business owners make. Although, these mistakes are 100% preventable, left unattended can lead to costly lawsuits of up to $100,000. As you can imagine, the presentation was well received, and because I want to make sure everyone benefits from the valuable information, I have created a special report addressing this very topic.  If you want to make sure that you are not making the same mistakes that other business owners make leading to costly lawsuits, download your very own copy of the report right away:

Special Report

I know my report will help you consider how you can implement changes in your workforce to avoid a potential lawsuit. Once you have read it, feel free to email me your comments or forward on the link to others who could benefit from this valuable information as well.

Lawsuits regarding meal periods and rest breaks have received publicity in recent years.  According to a white paper published by law firm, Hopkins & Carley, in December of 2005, an Alameda County jury in the state of California awarded $172 million including $115 million in punitive damages to a group of Wal-Mart employees in a class action lawsuit concerning required breaks (Daniel F. Pyne III, 2010).

Because small business owners are operating on lean budgets and trying to be as productive as possible with every dollar and every hour, they commonly fail to provide meal periods and rest breaks to their non-exempt, hourly employees.

In a typical eight (8) hour workday, California law requires that companies offer a minimum of two (2) ten-minute breaks. Federal and California law generally require a 30-minute meal break if a non-exempt employee works more than five (5) hours on a given day. Penalties accrue for every day that the employer fails to provide these breaks. If you are involved in an audit, the EEOC will typically ask to review payroll records going back from 2 to 5 years for both current and past employees.

How can you avoid being out of compliance and accruing penalties?

Here are some recommendations:

1.) Employers should adopt or update written policies in their employee handbook concerning meal periods and rest breaks. The policy should state that meal periods and rest breaks are available to all non-exempt employees. It is important that employees acknowledge this practice in writing.

2.) Rest breaks need to be provided at appropriate intervals in the workday rather than being combined and taken as one large chunk of non-work time during, or at the end of the day.

3.) Employers should utilize an appropriate mechanism such as a time card for capturing all hours worked as well as any meal periods and rest breaks taken. Also, the employee should sign the time card themselves.

4.) Employers should require non-exempt employers to record the actual times at which they begin and conclude their meal periods and rest breaks.

Remember: Require your employees to sign a timecard. Require your employees to take meal periods and rest breaks. It’s not just a law but also a good practice to have. Meal periods and rest breaks help employees recharge their battery and avoid injury.

The number one HR-related question I am asked has to do with giving feedback to employees.  Many clients ask me if they have to put feedback in writing. The truth is if it’s not in writing, it did not happen. You, as the employer, must prove you did not violate the law. Simply talking about bad behavior is not enough. Writing down employment issues serves two purposes. First, it provides the paper trail necessary to prove you have a legitimate reason for corrective action or termination. Secondly, it holds the employee accountable for their actions.

If you want to keep the conversation with one of your poor performers low-key that’s ok but make sure you follow-up after the conversation with written documentation. Documentation doesn’t have to take up a lot of time. It can be  as simple as sending an email to the problem employee or writing a short memo that includes one or two sentences about the incident, time, place, date it occurred and corrective action.

Here’s a sample email:

From: Supervisor

Date: July 30, 2010

To: Problem Employee

Subject: Following up on our conversation

Hello John Doe,

It was good talking with you today about [x problem], and I’m glad that we were able to identify the best solution moving forward.  I expect [insert expectation of conduct or performance here]. Let me know if I can be of further assistance to you or if you have any further questions.

Sincerely,

Supervisor

Sending an email has many benefits. First, it puts a date/time stamp on a document that identifies the problem. Secondly, it sets forth the expectation for the employee. Finally, the email has the added benefit of demonstrating the sender’s willingness to work with the employee to achieve improvement.

It takes less than 5 minutes to draft the follow-up correspondence which is a lot less time than spending hours, days, and weeks dealing with a pending lawsuit, producing volumes of reports and documents to prove you did not do anything wrong. So, take the time to document!

THIS BLOG POST IS OF A GENERAL NATURE AND IS NOT INTENDED TO ADDRESS ALL ISSUES OR PROBLEMS THAT MIGHT ARISE IN ANY EMPLOYMENT RELATED MATTER. NOR IS IT INTENDED TO BE LEGAL ADVICE, WHICH CAN ONLY BE RENDERED BY A DULY LICENSED ATTORNEY-AT-LAW. READERS SHOULD CONSULT WITH A LAWYER IF THEY HAVE SPECIFIC CONCERNS THAT THEY FEEL ARE LEGAL IN NATURE. NEITHER CONNECT TO HR OR MICHELLE MENDOZA HAVE ANY LIABILITY FOR HOW THIS INFORMATION IS APPLIED IN PRACTICE OR FOR THE ACCURACY OF THIS INFORMATION.  THIS BLOG POST IS PROVIDED AS AN EDUCATIONAL RESOURCE ONLY, AND CONNECT TO HR OR MICHELLE MENDOZA SHALL NOT BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION LOST REVENUES OR LOST PROFITS THAT MAY RESULT FROM THE USE OF THIS INFORMATION.

Thank you to those who read the HR trends series I published last month. I’ve received great feedback. Please continue to follow this blog as I will be publishing valuable information that will help you create a great working relationship with your employees. I believe when you have a positive work atmosphere, morale stays high and employees are more productive.

With this in mind, March’s theme will be about keeping your business healthy. I want to help business owners avoid potential pitfalls that lead to lawsuits by your employees.  Here is a sneak peek of what’s in store. Next week, I will address how to deal with performance issues. My post will be filled with simple ways you as a manager can document performance feedback.

On March 15th, I will cover the topic of meal and rest breaks and how to implement them correctly in your business. The third week of March, I will give you information on how to classify employees correctly (exempt vs. non-exempt employees).

For the last week of March, I will discuss the importance of having good policies and procedures in place; your best form of protection for your business.

If there is a Human Resources question you want me to cover, please send an email to connecttohr@yahoo.com. More to come next week!

THIS BLOG POST IS OF A GENERAL NATURE AND IS NOT INTENDED TO ADDRESS ALL ISSUES OR PROBLEMS THAT MIGHT ARISE IN ANY EMPLOYMENT RELATED MATTER. NOR IS IT INTENDED TO BE LEGAL ADVICE, WHICH CAN ONLY BE RENDERED BY A DULY LICENSED ATTORNEY-AT-LAW. READERS SHOULD CONSULT WITH A LAWYER IF THEY HAVE SPECIFIC CONCERNS THAT THEY FEEL ARE LEGAL IN NATURE. NEITHER CONNECT TO HR OR MICHELLE MENDOZA HAVE ANY LIABILITY FOR HOW THIS INFORMATION IS APPLIED IN PRACTICE OR FOR THE ACCURACY OF THIS INFORMATION.  THIS BLOG POST IS PROVIDED AS AN EDUCATIONAL RESOURCE ONLY, AND CONNECT TO HR OR MICHELLE MENDOZA SHALL NOT BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION LOST REVENUES OR LOST PROFITS THAT MAY RESULT FROM THE USE OF THIS INFORMATION.

I’m excited to announce that Connect to HR has been invited to give a seminar at the Santa Clara Chamber of Commerce (1850 Warburton Avenue, Santa Clara) on March 4th. The brown bag seminar begins at 11:30am and ends at 1pm. Join me as we discuss whether your business is vulnerable to lawsuits!

Event Description:

I will reveal the top three common mistakes resulting in costly employee lawsuits. Attend this program to steer clear of making these mistakes and avoid not only the out of pocket expenses but the emotional distress a lawsuit can place on your business.

By the end of the presentation, you will learn:

· The importance of writing down employee feedback
· How to provide proper meal and rest breaks to employees
· Why you should always take a claim of discrimination, harassment and retaliation seriously

Whether you have employees or hope to hire employees in the near future, do not miss this seminar. Walk away with the knowledge to help you avoid a costly lawsuit!

Everyone is welcomed and I hope to see you there.

THIS BLOG POST IS OF A GENERAL NATURE AND IS NOT INTENDED TO ADDRESS ALL ISSUES OR PROBLEMS THAT MIGHT ARISE IN ANY EMPLOYMENT RELATED MATTER. NOR IS IT INTENDED TO BE LEGAL ADVICE, WHICH CAN ONLY BE RENDERED BY A DULY LICENSED ATTORNEY-AT-LAW. READERS SHOULD CONSULT WITH A LAWYER IF THEY HAVE SPECIFIC CONCERNS THAT THEY FEEL ARE LEGAL IN NATURE. NEITHER CONNECT TO HR OR MICHELLE MENDOZA HAVE ANY LIABILITY FOR HOW THIS INFORMATION IS APPLIED IN PRACTICE OR FOR THE ACCURACY OF THIS INFORMATION.  THIS BLOG POST IS PROVIDED AS AN EDUCATIONAL RESOURCE ONLY, AND CONNECT TO HR OR MICHELLE MENDOZA SHALL NOT BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION LOST REVENUES OR LOST PROFITS THAT MAY RESULT FROM THE USE OF THIS INFORMATION.

Employee benefits and in particular wellness programs, are the third and final trend I am following this year.  For this blog post, I’ve decided to mix it up a bit.  I’ve invited a colleague by the name of Dave Weller, owner of Valley Wellness (http://www.valley-wellness.com) to collaborate on this blog post.  Dave is a subject matter expert in wellness and has many years of experience in this field. Just like Connect to HR, Valley Wellness is committed to keeping employees healthy!

I got the idea of highlighting wellness programs after reading a recent article written by Barbara J. Bowes for Nelson Staffing.  Barbara stated, “employers this year will focus on cost containment of employee benefits.”  The article goes on to highlight the impact of healthy employees on the bottom line.  Below, Dave gives us a summary of the benefits of implementing a wellness program in small businesses.

Dave Weller’s summary: Employee Wellness Programs Work!

A recent article published in the Harvard Business Review (December, 2010) states employee wellness programs work, and the benefits extend to small and mid-sized businesses.  According to the article, return-on-investment (ROI) on well-run wellness programs can be as high as 6 to 1 (six dollars returned for one dollar spent). Well-run wellness programs include six pillars:

1. Engaged leadership at all levels of the institution

2. Employee wellness as an important part of the business model {Encouraging employees with a “carrot,” instead of using a “stick.”}

3. A program that is comprehensive and of interest to individual employees

4. Ease of access to services

5. Relevant partnerships, internal and external to the institution

6. Comprehensive communication

The study examined a number of companies across the business spectrum, from hospitality to energy to retail.  When it comes to saving money, companies can get very creative in encouraging participation in such programs.  While saving money is the incentive for a business to establish a wellness program, it is after all, just money. When employees show up to work sick, that is the definition of presenteeism.  Employees who aren’t at the top of their game aren’t as productive as when they are well.  This is one toll of illness with which businesses must cope.  Loss of productivity is a huge expense that wellness programs can help address. Employee morale is an important component of the success of a business.  Wellness programs involve a partnership between employee and employer that can encourage the building of deep bonds. Thanks to the authors of this article (“What’s the Hard Return on Employee Wellness Programs?”), we now have more evidence that wellness programs save money while assisting businesses in other significant ways.

My Take

With the cost of health insurance premiums increasing, organizations will become more directly involved in helping employees manage their health through wellness programs, while at the same time seeking ways to contain health and benefit costs.  Dave’s summary highlights the ROI of implementing these programs.  Also, wellness programs aren’t just for big corporations!  They are also beneficial even for small businesses.  Speaking of healthcare premiums increasing, I am following the latest developments of Healthcare Reform and how it impacts businesses.  I will provide an update later this spring on the latest changes and the timeline for when they are to be implemented.

Thank you for reading this three part series!  This is a small sampling of the various trends impacting businesses today.  Please visit my blog often to keep current on the topics I covered in this series and for other helpful information related to HR.

THIS BLOG POST IS OF A GENERAL NATURE AND IS NOT INTENDED TO ADDRESS ALL ISSUES OR PROBLEMS THAT MIGHT ARISE IN ANY EMPLOYMENT RELATED MATTER. NOR IS IT INTENDED TO BE LEGAL ADVICE, WHICH CAN ONLY BE RENDERED BY A DULY LICENSED ATTORNEY-AT-LAW. READERS SHOULD CONSULT WITH A LAWYER IF THEY HAVE SPECIFIC CONCERNS THAT THEY FEEL ARE LEGAL IN NATURE. NEITHER CONNECT TO HR OR MICHELLE MENDOZA HAVE ANY LIABILITY FOR HOW THIS INFORMATION IS APPLIED IN PRACTICE OR FOR THE ACCURACY OF THIS INFORMATION.  THIS BLOG POST IS PROVIDED AS AN EDUCATIONAL RESOURCE ONLY, AND CONNECT TO HR OR MICHELLE MENDOZA SHALL NOT BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION LOST REVENUES OR LOST PROFITS THAT MAY RESULT FROM THE USE OF THIS INFORMATION.

The second trend I am following this year has to do with all the changes in State and Federal employment laws.

Federal

There were significant jury verdicts, settlements and other awards in 2010. One example worth noting is the $5.8 million dollars a Texas jury awarded to a white plaintiff in a reverse discrimination case of Duncan v. El Paso Electric Company.  Another important trend to pay attention to, is the increase in wage and hour litigation.  According to a recent SHRM article, there was a 10% increase in the number of wage and hour federal collective actions and class actions.  The article points out that the exempt/nonexempt misclassification remains the source of much litigation. It is important for employers to make sure they are classifying employees correctly.  For more information on the impact of wage and hour litigation, please read the following article:

http://www.shrm.org/LegalIssues/FederalResources/Pages/WageandHourLitigation.aspx

One final case that I’d like to mention is Thompson v. N. Am. Stainless LP.  The Supreme Court decided to expand the protection for retaliation complaints to third parties under Title VII. In this case, Thompson was fired three weeks after his fiancée filed a charge with the U.S. Equal Employment Opportunity Commission (EEOC) claiming discrimination by her supervisors based on her gender.  Thompson claimed he was discharged in retaliation for his fiancée’s charge.  The court ruled that under Title VII, hurting Thompson was the unlawful act by which NAS (the employer) was hurting his fiancée.  If a company must terminate an employee who has filed any type of EEOC claim, it is important that they check with legal counsel on the best course of action.  In this case, even a relative of an employee who has filed an EEOC claim may be protected.  It is vital that all facts are in order prior to a dismissal.

If you want to read more details about this case, SHRM has written an article about it:

http://www.shrm.org/LegalIssues/FederalResources/Pages/SupCtThirdPartyRetaliation.aspx

California

I recently attended a 2011 employment law seminar given by Hixson Nagatani, LLP.  I learned over the past 12 months, California’s Supreme Court reviewed several important issues affecting businesses.  They decided a variety of issues such as the impact of “stray” derogatory remarks in discrimination cases, the reach of the state’s “kin care” law and when employers might be held liable for wage and hour violations committed by subcontractors or independent contractors.

One of the more widely publicized cases in California has to do with age discrimination.  The California Supreme Court weighed in on the impact of “stray” derogatory remarks in the case of Reid v. Google. The court decided to expand what counts as proof of age discrimination. This ruling will result in broadening the number and types of documents and communications especially email that will be considered relevant evidence in discrimination cases. As a result, employers may want to revise their written policies and training materials to reinforce the notion that ageist or other discriminatory remarks or jokes will not be tolerated at any level.  In addition, it is critical for employers to take complaints seriously.

For more information on Reid v. Google and its impact, check-out this article from the Silicon Valley Business Journal:

http://www.bizjournals.com/sanjose/stories/2010/08/16/story2.html

My Take

This is a small sampling of recent developments in employment law over the past 12 month.  I want you to have a flavor of the current litigation climate and how it impacts business. It is clear from the recent employment related verdicts that claims of discrimination, harassment and retaliation are on the raise. As a result, employers may want to revise their written policies and training materials. I’ve helped many businesses craft employee handbooks to protect them from lawsuits. Soon, I will be launching a new website to help more businesses create custom employee handbooks.

THIS BLOG POST IS OF A GENERAL NATURE AND IS NOT INTENDED TO ADDRESS ALL ISSUES OR PROBLEMS THAT MIGHT ARISE IN ANY EMPLOYMENT RELATED MATTER. NOR IS IT INTENDED TO BE LEGAL ADVICE, WHICH CAN ONLY BE RENDERED BY A DULY LICENSED ATTORNEY-AT-LAW. READERS SHOULD CONSULT WITH A LAWYER IF THEY HAVE SPECIFIC CONCERNS THAT THEY FEEL ARE LEGAL IN NATURE. NEITHER CONNECT TO HR OR MICHELLE MENDOZA HAVE ANY LIABILITY FOR HOW THIS INFORMATION IS APPLIED IN PRACTICE OR FOR THE ACCURACY OF THIS INFORMATION.  THIS BLOG POST IS PROVIDED AS AN EDUCATIONAL RESOURCE ONLY, AND CONNECT TO HR OR MICHELLE MENDOZA SHALL NOT BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION LOST REVENUES OR LOST PROFITS THAT MAY RESULT FROM THE USE OF THIS INFORMATION.

Labor Market is Strengthening!

Nationally, the U.S. jobless rate is at its lowest level in 21 months reported Bloomberg news on 2/4/11. According to Bloomberg, the Labor Department said unemployment declined to 9 percent in January from December’s 9.4 percent. Bloomberg also reports that employers only added 36,000 workers which is the smallest gain in four months.  Economists believe the lower than expected payroll gain was due to the winter storms.  Overall, the U.S. is showing signs of strengthening and the job market on a national level should start growing beginning in the spring.  For more information, see the links below.

Overall summary of labor department report: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ajoitVF8tdRk

Interesting video on Bloomberg television regarding various perspectives on labor report: http://www.bloomberg.com/news/2011-02-04/brown-says-job-growth-may-be-above-trend-this-spring-video.html

Locally, many companies in Silicon Valley are ramping up their recruitment efforts. The San Francisco Business Times reported on 2/4/11 that Google is still growing and plans to add more than 6,000 new employees in 2011.

http://www.bizjournals.com/sanfrancisco/morning_call/2011/02/google-receives-75000-job-applications.html.

Google is not alone; in a recent article, the San Jose Mercury News reported several well known Tech companies in the region have ramped up hiring such as Cisco Systems and Facebook.

The Mercury News also mentioned that small companies are growing as well. The newspaper cited Clean Solar as an example. Last year they outgrew their location in San Jose. The company’s president, Randy Zechman said, “We grew 100 percent last year, and the year before that about 300 percent.”

My Take

I can also share with you that over the last 2 months, I’ve received an influx of inquiries from small business owners in my local area seeking help in hiring new employees.  I am also helping several job seekers who need assistance revamping their resumes and cover letters. I believe hiring will continue to increase as the year progresses. In the coming months, I plan to share with you some important tips, if you are considering hiring new employees.

THIS BLOG POST IS OF A GENERAL NATURE AND IS NOT INTENDED TO ADDRESS ALL ISSUES OR PROBLEMS THAT MIGHT ARISE IN ANY EMPLOYMENT RELATED MATTER. NOR IS IT INTENDED TO BE LEGAL ADVICE, WHICH CAN ONLY BE RENDERED BY A DULY LICENSED ATTORNEY-AT-LAW. READERS SHOULD CONSULT WITH A LAWYER IF THEY HAVE SPECIFIC CONCERNS THAT THEY FEEL ARE LEGAL IN NATURE. NEITHER CONNECT TO HR OR MICHELLE MENDOZA HAVE ANY LIABILITY FOR HOW THIS INFORMATION IS APPLIED IN PRACTICE OR FOR THE ACCURACY OF THIS INFORMATION.  THIS BLOG POST IS PROVIDED AS AN EDUCATIONAL RESOURCE ONLY, AND CONNECT TO HR OR MICHELLE MENDOZA SHALL NOT BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION LOST REVENUES OR LOST PROFITS THAT MAY RESULT FROM THE USE OF THIS INFORMATION.

There are economic, legal, financial and political trends that impact every business. I am committed to learning as much as I can about the 2011 trends and promise to share the information with you. The following trends are the ones that I am personally tracking in 2011:

• Recruitment News: Hiring is Increasing!
• Employment Law Updates (California and Federal)
• Employee Benefits and Health Care Reform
• The Impact on Social Media in the Workplace
• Pre-employment Testing
• Wellness Programs
• The Future of the Global Workforce

This is a small sampling of the various trends impacting businesses today.  Please visit my blog over the next several weeks and months for more information.  Also, if there is a Human Resources trend you want me to cover, please send an email to connecttohr@yahoo.com.

Mark your calendars! On February 11, 2011, I will launch a three part series that will cover the topics of recruitment, employment law and employee benefits.

THIS BLOG POST IS OF A GENERAL NATURE AND IS NOT INTENDED TO ADDRESS ALL ISSUES OR PROBLEMS THAT MIGHT ARISE IN ANY EMPLOYMENT RELATED MATTER. NOR IS IT INTENDED TO BE LEGAL ADVICE, WHICH CAN ONLY BE RENDERED BY A DULY LICENSED ATTORNEY-AT-LAW. READERS SHOULD CONSULT WITH A LAWYER IF THEY HAVE SPECIFIC CONCERNS THAT THEY FEEL ARE LEGAL IN NATURE. NEITHER CONNECT TO HR OR MICHELLE MENDOZA HAVE ANY LIABILITY FOR HOW THIS INFORMATION IS APPLIED IN PRACTICE OR FOR THE ACCURACY OF THIS INFORMATION.  THIS BLOG POST IS PROVIDED AS AN EDUCATIONAL RESOURCE ONLY, AND CONNECT TO HR OR MICHELLE MENDOZA SHALL NOT BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION LOST REVENUES OR LOST PROFITS THAT MAY RESULT FROM THE USE OF THIS INFORMATION.

Dear Colleagues,

Happy Holidays! It’s hard to believe that in just a couple of weeks, we will be ushering a new year. As I look back on 2010, it has been such an amazing year of growth for myself and for my new business, Connect to HR (https://connecttohr.com).

I’ve had a great time working with many clients both small and large and helping them with their employee needs.  I’ve assisted my customers on a variety of projects ranging from hiring employees, investigating employee issues, training and even providing Spanish translation services.

As I reflect on 2010, what I’ve enjoyed most is coaching business owners. Time and time again, many clients have come to me for the same issues. After hearing these same themes, I decided to put together a special report that addresses the 3 most common employee mistakes business owners make. These mistakes are 100% preventable yet left unattended can lead to costly lawsuits. The report has been well received and I’ve been asked to share what I’ve learned with various groups.  You can check out my special report at www.connecttohr.com/specialreport.

Finally, I want to thank my family and colleagues for your support and encouragement! You have made it possible for me to grow my business. I am finally on the road to achieving my overall goal – doing the work I love in a flexible way.

I wish you prosperity and health in 2011.

All the best,

Michelle

P.S. Don’t forget to checkout my special report.  Go to www.connecttohr.com/specialreport.

P.P.S If you know of any groups who would benefit from the presentation: “Avoiding the 3 Most Costly Employee Mistakes” please let me know.

……………………………………

Michelle Mendoza,  SPHR

Phone: 408.768.1075     Email: connecttohr@yahoo.com