Who am I? That’s an easy question.

 

My name is Sue McMillen and I’m the VP of Professional Services for Achievant, a human capital management software company focused on serving banks and credit unions. I wasn’t always in technology, but I’ve always been in HR. Prior to joining the team at Achievant in 2006, I was the SVP of HR for Union Federal Bank (gobbled up by Sky Bank and then Huntington Bank, based on which round of consolidation you are referring to), an HR Manager for Golden Rule Insurance and Equity Group Investments in Chicago. I’ve always done the “corporate HR thing” and I can say that I never thought I join an HR technology firm.

 

So at this point you are probably wondering why I crossed over from the corporate HR world to the vendor world. Well, as an HR veteran I was tired of multiple systems that didn’t talk to each other (benefits, payroll, time/attendance, ap tracking), vendors who I never heard from after the sale, systems that were shells that I had to populate and customize in my spare time, and generic HR applications that were supposed to be ideal for a bank as well as a donut shop.  

Following the mantra of “See a Need, Fill a Need”, I joined a start-up HR technology firm that would:

·        Specialize in banks and credit unions (although bankers like donuts, there is a difference in their business model)

·        Offer an integrated system

·        Provide customer service that is unparalleled - I actually talk weekly (daily if they’d like) to my customers after the sale is made.

·        Deliver a system that is actually ready to use when you “go live”.

 

As an HR pro, I am most interested in the intersection of the HR practice, technology and business results in today’s organizations. I have a strong interest in areas like employee training, talent management, HR software, and performance management, but keep an eye toward best practices in all areas of HR.

 

I started this blog with the goal of offering insight on these best practices, building a forum where HR practioners could discuss these and occasionally pitch Achievant services. I hope you will read my blog on a regular basis. If you are interested in contacting me, please e-mail me at smcmillen@achievant.com.

Yes, the government is introducing yet another new form, the VETS-100A.  Large federal contractors will begin using the form September 30, 2009.  However, they should start collecting data for the new VETS-100A Report Form now or they won’t have the necessary 12 months of data to report.

Currently federal contractors with government contracts of $100,000 or more that were entered into or modified on or after December 1, 2003, are required to file the VETS-100 Report by September 30 of each year with the U.S. Department of Labor (DOL), as are federal contractors with unmodified government contracts of $25,000 or more that were entered into prior to December 1, 2003.

But in 2009, federal contractors will have to file the VETS-100A Report for government contracts of $100,000 or more that were entered into or modified on or after December 1, 2003, as well as the VETS-100 Report for any unmodified government contracts of $25,000 or more that were entered into prior to December 1, 2003.

In a May 19, 2008 final rule on reporting requirements, the DOL Veterans Employment and Training Service announced that the new VETS-100A Report would not have to be filed until September 30, 2009, but added that contractors are to collect and maintain the data for the new report in 2008. The DOL noted that the VETS-100A Report calls for contractors to provide data on veterans’ employment for 12 months ending on a date in the report year between July 1 and August 31 that represents the end of a payroll period, as is the case for the VETS-100 Report.

The job categories on VETS-100 and VETS-100A differ slightly because VETS-100A incorporates changes that the Jobs for Veterans Act (JVA) of 2002 made to the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA), the law requiring certain federal contractors to engage in affirmative action for certain veterans.

You will want to determine the size of your federal contract in order to determine which form(s) to complete in 2009.

August 25 – 27th will be the 2008 Indiana State Human Resources Conference.  This year’s conference is being held at the Westin Hotel in Indianapolis.  Achievant is excited to be an exhibitor at the event as well as partnering with HR Dimensions to provide the prize for the Grand Prize Drawing.

I can’t wait to meet and mingle with over 1,000 HR professionals from all over the state as well as visit the booths of the other hundred exhibitors.  If you are attending I hope you will stop by our tradeshow booth in order to see a demo of our products for the first time, meet with a sales rep, ask questions, or just to say hello to me in one of the sessions.

If you’d like to attend the conference but haven’t registered yet or you’d like to learn more about the conference, here is a link - http://www.indianashrm.org/INSHRMconferencegrid.htm.  Personally I am looking forward to hearing several of the speakers including the session on Updating Your Compensation Programs by Debi Mueller, Vice President-Consulting at HR Dimensions. This session addresses best practices in compensation and explores the links to business strategies that will be needed to ensure alignment to productivity and pay for performance. I plan to pick up a couple more recertification credits to complete my SPHR renewal.

Simon Bailey will be the keynote speaker on Tuesday.  His topic will be Releasing Brilliance and will inspire us to take charge of and transform our lives from the inside out.  Clint Swindall will be doing the closing keynote on Engaged Leadership and will focus on leadership enhancement.

It should be a great conference with rich content and ample time to visit the trade show floor.

See you there!

In recent weeks, much focus has been placed on the classification (or misclassification) of workers as “independent contractors" versus “employees”.   The federal government is working to ensure that you are not trying to avoid overtime pay, unemployment compensation, payroll taxes and employment-related rights and benefits by claiming they are independent contractors.

Even individual states are taking action.  California (gee… who out there is surprised that CA would be one of the first states to jump on the band-wagon) has recently sent "employment relationship" questionnaires to "independent contractors" to ensure that those individuals should not be classified as employees.

In May 2008, the U.S. House of Representatives introduced the Employee Misclassification Prevention Act (H.R. 6111). As its name suggests, this legislation targets employers who misclassify their employees as "independent contractors."  If passed, this legislation would make the misclassification of employees a prohibited act under the Fair Labor Standards Act and increase penalties under the FLSA. The legislation would also require employers to keep records regarding their classification of workers, notify workers of their classification, and allow them to challenge that classification. In addition, the proposed legislation would require state unemployment insurance agencies to conduct audits to determine which employers are misclassifying their employees.  It would also authorize the Department of Labor (DOL) and the Internal Revenue Service to share information on instances of misclassification, and mandate that the DOL perform audits focusing on industries that frequently misclassify employees.

In light of the increased scrutiny on independent contractor relationships, employers should conduct internal audits to ensure they have properly classified their independent contractors and to effectively address any misclassifications.

The U.S. Department of Labor (DOL) released an opinion letter on July 29, 2008 clarifying that an employer is required to compensate an employee for all the hours worked, even if that includes time worked in violation of company policy such as through a required meal break.  The company at the heart of this issue had a Break and Meal Policy which stated that “All employees working six or more hours in a shift must receive a 30-minute, uninterrupted, and unpaid meal period. The meal period requirements cannot be waived by the employee nor substituted for any other time.”

The policy also provided that “there may be instances when, because of staffing or workloads, a meal period may not be available to all staff members. If any nonexempt employee does not take a meal period as required by the New York State Department of Labor, that employee should notify his or her manager and note this on the time card so he or she will be compensated for the time.”

The employer asked the DOL for its opinion on whether additional straight time (i.e., not overtime) would be due when an employee violates company policy by skipping a meal break and failing to notify the manager that the break was missed. The employer also asked the DOL to assume that the worker had worked less than 40 hours in the workweek and that the minimum wage still would be received, even if the employer did not pay additional straight time.

The DOL stated that the employer “must compensate the employee for all hours worked, including the time worked during the missed meal period,” though it went on to note that if an employee receives at least the minimum wage for all hours worked, including the time worked because of a missed meal period, no additional compensation is due under the Fair Labor Standards Act (FLSA). But the DOL reminded that FLSA regulations require accurate recordkeeping of hours worked each workday, as well as total hours worked each workweek for covered and nonexempt employees.

And, the DOL added, the time worked through the missed meal period would be hours worked for purposes of determining any overtime compensation. “Before an employee can be said to be paid statutory overtime compensation due, the employee must first be paid all straight time wages due for all hours worked under any express or implied contract or under an applicable statute,” the DOL stated.

The employer also asked the DOL to suppose an employee instead violates a policy prohibiting all forms of off-the-clock work. Even though the employee is scheduled to work 35 hours per week, the worker begins work early or works after the regular finishing time. Would additional straight time be due then?

The employee must be paid for all hours worked at the agreed rate in addition to any overtime for all hours over 40, the DOL answered.

What if the employer advised the employee in writing not to ever work any unrecorded work hours and the employee who violated this policy was subject to disciplinary action, the employer inquired. Would the DOL’s answer be different then?

The DOL said it did not have enough information to answer this question, but referred to FLSA regulations to remind the employer that “it is the duty of the management to exercise its control and see that the work is not performed if it does not want it to be performed. It cannot sit back and accept the benefits without compensating for them. The mere promulgation of a rule against such work is not enough”.

I was recently helping a friend sort through resumes responding to an ad she had placed and came upon a realization.  No one …. ok very few people….. do cover letters anymore.  I must admit that I have a prejudice toward candidate who take the time to write a cover letter.

I find them valuable for several reasons.  They provide an opportunity to assess:

• grammar proficiency
• writing style
• attention to detail, are there typos?
• ability to formulate thoughts into words in a coherent fashion.

In a recent Office Team survey, 86 percent of hiring managers say cover letters provide valuable insight when evaluating candidates.   However, the prevalence of online job sites has job seekers responding to email addresses with a few sentences of introduction.  I think that job seekers would do well to include an old-fashioned cover letter, personalized to the extent possible.

Candidates should make sure that their cover letter is devoid of the typical errors –

• Addressing the letter Dear Sir -  As a female hiring manager I have received far too many Dear Sir letters.
• Referencing the incorrect job – When recruiting for multiple jobs, if you don’t know what job you are applying for then how should I?
• Failing to include an attachment – If you are asked to provide salary history, cover letter, salary expectations, resume, etc.  Do it!  It is not a suggestion, it can eliminate you from consideration.  If you can’t follow instructions during the hiring process I am not optimistic that you will follow instructions as an employee. 
• Cute email addresses – Don’t list “cute” emails on your resume.  PartyGirl, BabyFace, Loverboy, may be great for friends, but not for obtaining employment. 
• Providing unnecessary personal information – I want to hire you, not be friends with you.  I do not care what your hobbies are and certainly don’t tell me about your children, their ages, what your spouse does for a living, etc.

The job market is tough, use every opportunity to tell why you are the ideal candidate and differentiate yourself from the hundreds of other people applying for the job.

I was reading the other day that a Tyson plant in Tennessee has decided to offer the Muslim holiday Eid al-Fitr, which marks the end of Ramadan, as a paid holiday instead of Labor Day.  Almost 700 of the plant's 1,200 employees are Muslim.

Somehow, I think this is going to be a heated topic of discussion. 

MSNBC recently reported that workers at the Tyson Foods poultry processing plant in Shelbyville will no longer have a paid day off on Labor Day but will instead be granted the Muslim holiday Eid al-Fitr.  According to a news release from the Retail, Wholesale and Department Store Union, a new five-year contract at the plant included the change to accommodate Muslim workers at the plant.

Eid al-Fitr, which falls on Oct. 1 this year, marks the end of Ramadan, the Muslim holy month of fasting.  Union leaders said implementing the holiday was important for the nearly 700 Muslims, many of them Somalis, who work at the plant that employs a total of 1,200 people.

Tyson company spokeswoman Libby Lawson said by phone that, "This isn't a religious accommodation, this is a contractual agreement. The majority asked for it."   The change didn't bother some workers, but others strongly opposed it.

Thinking out loud….this touches on many issues that people feel very strongly about such as American patriotism, religion freedom, days off, etc.  For most companies, offering the standard days off of New Years, July 4th, Memorial Day, Labor Day, Thanksgiving and Christmas satisfies the majority.  When that doesn’t make sense due to a multi-cultural environment I suggest shifting the balance of fixed versus floating holidays to accommodate the workforce.  A greater portion of the holidays being floating holidays offers employees the flexibility to identify the days that are most important to them to be away from work.

I live in a house full of guys and it seems like we live sports 24/7.  In that light, I find myself using those teachable moments to point out to them that the “sports world” is not like the “real world”.  I mean where else can you make an incredible salary, not be held accountable for your actions, and be uneducated and successful all at the same time.  But from time to time there is a sports story that mimics life for the rest of us.

Currently that is the Bret Favre story.  I think this story is fascinating to watch from an HR perspective.  Here you have a nice guy working for your company for a very long time.  He’s a great employee and you’ve got an employment agreement to keep him with you.  For several years he has been openly talking about retiring in the near future.  Finally he decides that this is the time to make that change.  You hate to see him go, but you understand and are even happy for him.  So, you send him off with a great good-bye party.

Then as an organization you set about rolling out the succession plan that you’ve had in place.  So, you replace him and move on as an organization.  Then, he decides that he misses working for you and wants to come back to his old job.  You tell him that you’ve already replaced the top spot, but he can have the number two position.  He is not content with that and asks to be released from his employment agreement so he can go work for your direct competitor.  He doesn’t like that and goes to the local paper or industry trade magazine and gives an interview saying that he doesn’t feel welcome back at his old company and that because of his years of service, he should simply be released.

 What do you do?

Favre is a legend.  The Packer's management is taking a beating in the media about its handling of his request to return.  It's a talent management nightmare.  At this point, it seems the Packers have chosen to take the do nothing approach.  They don’t seem to be in any hurry to release or trade Favre.  In the meantime, they seem set to continue the process of rolling out the succession plan they have in place.

What's your position?  Should the Packers take him back as the starting quarterback?  Should the Packers continue the succession plan they began when Favre retired a few months ago?

I'm siding with the Packers in moving on, here are my reasons why:

    1. Football is a business – There is no disputing that both the Packer fans and up until this point the management absolutely love Favre.  But that being said, we must remember that football is a business.  So, it would be a poor business decision to release him to a competitor without getting something in return. Remember, along with the benefits of being a contracted employee, there are also some down-sides (i.e., management decides when you play, where, and if you will play). He in essence has a non-compete.

   2. Once you cross that bridge – My experience has been that counter-offers and allowing employees to rescind their resignation are only temporary fixes.  Typically whatever factor made them vulnerable in the first place is still there and in the not too distant future will reappear.  As a side note, no one wants to continually hear that you are thinking about leaving the organization.  Keep it to yourself until you are ready to make the move.    

   3. Don’t make it public - When the Packers didn't rush to reinstate Favre, he went negative.  Going negative against an organization in the media is pretty much going to the point of no return.   Even if you end of getting what you want, it can be a pretty ugly place to be.

   4. It’s all about me – When an individual makes the situation all about them and not about the organization, they typically fall out of favor with their coworkers.  Favre has seemed like a great teammate through the years, a good citizen and a role model for youth.  But, if you listen closely to him over the last few weeks he seems to be talking more about himself and less about coming back to help the organization or his teammates.  

The Packers have done the right thing from an organizational development or succession management perspective.  They knew he was going, they put a succession plan in place for a number of years (i.e., Aaron Rogers), then when they got notification that he was leaving, they started it in motion.

What would you do? 

I just got back from my first prospective college visit to Florida with my oldest son, Michael (because of course why would he want to attend a college with in-state tuition!).  I’ve also been traveling a lot lately for new and perspective clients so I’m becoming quite the airline connoisseur.  Frankly as airfare has sky-rocketed I tend to book whoever is cheapest or works with my schedule, but I do have my favorites.

This most recent trip had me on Southwest Airlines.  Now I’ll admit that as an HR leader I have followed this company for several years.  Southwest is one of the few profitable airlines and has been in the black for 33 consecutive years and has paid a small dividend for 127 consecutive quarters. While its competitors are reducing the number of flights offered and grounding hundreds of aircraft, Southwest will add a few flights daily, will take delivery of another dozen aircraft next year and still plans to grow by 2 percent to 3 percent.  Southwest now carries more passengers annually than any other U.S. carrier.

So, my down time in the airport yesterday had me pondering...how has Southwest been successful?  I think it is based on a few guiding principles –

    * Keep things simple
    * Keep it consistent
    * Manage costs and maximize productive assets, and
    * Manage customer expectations.

These are business strategies that can be applied to most businesses.

Keep It Simple

While Southwest’s competition operates numerous types of planes, Southwest flies just one plane type.  This saves millions in maintenance costs, employee training, parts, etc.

Business Application – Do one thing and do it well

In the technology world, Human Resources software providers are trying to be all things to all people.  At Achievant, we have determined what we do is provide HRIS software solutions to small and mid-sized companies.  Achievant is not a payroll company, but we work with your payroll company to manage your employe data.  We have seen numerous companies try to meet all needs by bolting together the components of a human capital management system (i.e., HRIS system, time and attendance tracking, learning management, performance management, applicant tracking, and succession management) together with a payroll system and try to pass it off as integrated.  As a result these providers are adequate at many things, but not really good at anything.  Don’t get caught up in a feature/function comparison….who has the prettiest screen, bell, or whistle.  You should evaluate the entire package.

Keep It Consistent

I have to admit that I have not always been a fan of Southwest's approach to assigning seats.  Which is…..there are no assigned seats. You just line up according to an assigned number and you choose an open seat as you board the plane.  As someone who is slightly a control-freak (ok, maybe a little more than slightly), this was initially unsettling to not have a seat assigned specifically to me.  But, as I have flown with them more I have come to appreciate the control of choosing my seat...the one that is not next to the crying child or the chatty person, and have relished the opportunity to get a seat with extra leg room or no one sitting next to me.  Best of all, they still provide beverages and snacks for free!

Business Application – Manage the brand experience

At Achievant we work very hard to manage the experience our clients have with us and our Human Resources software solution.  Every time they contact us we want to respond to them in a friendly way, on a timely basis, and in a way that is relevant to them.  

No fees, no frills

As other carriers have removed perks and added fees, Southwest has kept its customer proposition streamlined and unchanged. The airline only sells in a few price "buckets" which allows it customers to understand the fare structure and believe they are getting value for their money. Prices are all-inclusive too, no fees for fuel surcharges, ticket changes, or luggage.  They have looked for out-of-the-box solutions to things like the clunky beverage cart.

Business Application – If customers can’t understand the pricing structure, they can’t understand the value you offer

Most HRIS systems, learning management systems, time and attendance solutions, and payroll providers utilize an ala carte menu for the services they provide.  In addition to the monthly or annual subscription, anything additional you’d like (e.g., a system change, new report) is charged by the hour or project.  This can make it very difficult to manage your costs.  I have spoken with numerous potential clients who when questioned how much they pay their current system provider, respond that they won’t know until the end of the year.

At Achievant, we have adopted a modular pricing model that is very simple to understand and is inclusive.  You are not charged for new version releases, minor system changes, client support, etc.

Management, Happy Workforce

Herb Kelleher finally stepped away from Southest earlier this year after leading it for more than a generation.  Although he was a very colorful leader, the airline avoided fads, shied away from anything that increased costs or complicated the basic travel proposition. Management ranks are lean, but most importantly, productive.

Southwest has embraced a culture of making their work (and consequently our travel) more fun.  They sing, dress in casual uniforms, and allow employees to go “off-script”.  In return, they have employees who are friendlier, seem to enjoy their jobs, and don't strike.

Business Application – If your workers aren’t happy, your customers aren’t happy

It is important to note that there are many intangibles that contribute to how much employees enjoy their job.  Take time to focus on these and you will be repaid for your efforts in higher levels of customer satisfaction.  360 degree feedback can be a great tool for this.

These are important business applications that I think will apply to any industry, not just HRIS software and talent management providers like Achievant.  In the meantime, I will continue to watch the progress of Southwest. 

The second in a three part increase in the minimum wage is set to take effect July 24, 2008.  The minimum wage will increase to $6.55 per hour.  Due to the increase, many state minimum wage rates will change as well. You should check your individual state to confirm any changes.  The next and final increase will be July 24, 2009 when it will increase to $7.25.

I did a little checking to see what it has historically been.  Ok, I’ll admit I remember it at the $3 level while in high school.

Federal Minimum Wage History
Effective Date        Hourly Wage

10/24/1938                    $0.25
10/24/1939                    $0.30
10/24/1945                    $0.40
01/25/1950                    $0.75
03/01/1956                    $1.00
09/03/1961                    $1.15
09/03/1963                    $1.25
02/01/1967                    $1.40
02/01/1968                    $1.60
05/01/1974                    $2.00
01/01/1975                    $2.10
01/01/1976                    $2.30
01/01/1978                    $2.65
01/01/1979                    $2.90
01/01/1980                    $3.10
01/01/1981                    $3.35
04/01/1990                    $3.80
04/01/1991                    $4.25
10/01/1996                    $4.75
09/01/1997                    $5.15
07/24/2007                    $5.85
07/24/2008                    $6.55
07/24/2009                    $7.25

Don’t forget to make sure you keep you labor law posters up to date too. 

Preliminary results from the CompData 2008 survey shows pay budgets essentially remaining flat from 2008 to 2009.  According to the survey, salary increase budgets were reported at 3.60% for 2007 and 2008, and are projected to be 3.62% in 2009.

Although these early figures are a little lower than those released at the beginning of May by the Economic Research Institute, which reported average 2008 salary increase budgets of 4.1% and 2009 projections of 4.0%, they do reinforce the theme of flatness.  Based at least on what we are seeing so far, it doesn't appear that 2009 increases, on average, will be substantively different from 2008.

Pay increase budgets vary slightly by industry. Companies in the technology industry had the highest pay increase budget, 5.52 percent while organizations in distribution and warehouse had the lowest with 3.43 percent.

U.S. employers are required to begin using the revised 2008 version of Form I-9, which employers use to verify their employees’ identities and authorization to work in the United States, beginning June 30, according to the United States Citizenship and Immigration Services (USCIS).

The new form includes the date, June 16, 2008, and replaces the June 5, 2007 version of the form, which expires on June 30. After June 30, employers should use the new version, which contains no substantive changes.


In response to soaring gas prices, the IRS has announced it will raise the standard mileage rate that taxpayers use to deduct business miles to 58.5 cents a mile, an increase of 8 cents.  The new rate will apply to miles driven from July 1 through December 31 this year.


Indiana employers - The Indiana Breastfeeding Bill will take effect tomorrow, July 1, 2008, to protect breastfeeding in the workplace.  For a reminder about this bill see my March blog entry regarding this topic.
 

On June 6th, President Bush signed an amendment to Executive Order 12989 requiring all federal government contractors to use E-Verify to confirm the employment authorization of new hires.

 

E-Verify is the Internet-based system operated by the Department of Homeland Security (DHS) in partnership with the Social Security Administration to electronically verify employment eligibility of newly hired employees.  This is done by comparing information electronically from Form I-9, the employee eligibility document used for new hires, against more than 425 million records in the Social Security Administration’s (SSA) database and, for noncitizens, against more than 60 million records in the DHS immigration database.  Some officials believe the system should be mandatory nationwide.

 

The amended Executive Order requires all federal agencies and departments that enter into contracts to require, as a condition of each contract, that the contractor agree to use an electronic employment eligibility verification system (E-Verify).  This applies to: (1) all persons hired during the contract term by the contractor to perform employment duties within the United States; and (2) all persons assigned by the contractor to perform work within the United States on the federal contract.

The amended Executive Order directs the Secretary of Homeland Security to issue rules and regulations to implement the requirements.  According to DHS Secretary Michael Chertoff, the implementing rule is being sent to the Federal Register for publication.  This will be followed by a 60-day public comment period.  Secretary Chertoff indicates the new system could be up and running later this year.

The original Executive Order 12989 provided for debarment of federal contractors whenever the Attorney General made a determination that a contractor had violated the Immigration and Nationality Act's employment verification provisions.  The regulations implementing the amended Executive Order will be updated and will presumably make the debarment penalty applicable to federal contractors that fail to use E-Verify.  Secretary Chertoff declined to comment on whether subcontractors will also be required to use E-Verify, but it is likely that such a requirement will be specified in the forthcoming regulations.

The International Association for Human Resource Information Management announced the development of a new professional certification at the IHRIM Conference and Technology Exposition at Walt Disney World Resort in Orlando, Florida on June 3.

While several professional certifications have been available for HR professionals (e.g., SPHR, PHR, CEBS, GPA, CCP, etc.), this will be the first certification designed specifically for human resources information management professionals.

Work on the certification is already under way, and the IHRIM pass to have its first exam in 2009.  The certification will be the first of its kind. 

Comments (0)

Want to become your boss's favorite? Alison Green’s U.S. News & World Report column this week suggests 10 habits that, if cultivated, will have your boss showering you with lavish praise.  I suggest you take a few minutes to read it. 

I value –

·         Staff who embrace #4: When you bring a problem, also suggest a solution

·         Coworkers who embrace #6:   When you make a mistake, take responsibility for it

·         Teenagers who embrace #5: Putting all the facts on the table and disclosing all relevant information

I hope you'll weigh in on these and other items you’d add to the list.   

On May 27^th, the U.S. Supreme Court expanded the ability of employees to sue for retaliation.  The Court held that a federal statute enacted shortly after the Civil War granting all citizens the right to enter into and enforce contracts (commonly referred to as "Section 1981") can be used to bring a claim of employment-related retaliation.  The case referenced here is CBOCS West, Inc. v. Humphries, No. 06-1431, U.S. Supreme Court (May 27, 2008).

Hedrick Humphries, an African American assistant manager at a Cracker Barrel in Illinois, alleged that he was fired based on his race and because he complained to managers that an African American co-worker was also dismissed for race-based reasons.  Humphries sued Cracker Barrel under both Title VII of the Civil Rights Act of 1964 and Section 1981.  The trial judge granted summary judgment to Cracker Barrel on all of his claims.

The Seventh Circuit Court of Appeals generally agreed with the trial judge, with one exception.  The appellate court held that Humphries should be allowed to proceed with his claim that he was unlawfully retaliated against in violation of Section 1981 for complaining about the alleged discriminatory treatment of a co-worker.  Cracker Barrel turned to the Supreme Court, arguing that Section 1981 prohibits only discrimination, not retaliation.

In a 7-2 ruling, the U.S. Supreme Court agreed with the Seventh Circuit, thereby allowing retaliation claims to be brought under Section 1981.  In reaching this conclusion, the Supreme Court relied upon four points:

1.       Section 1982, a Civil War era law which protects rights in the purchase of real property, had previously been found by the Court to prohibit retaliation.  

2.       Section 1981 and Section 1982 have consistently been interpreted alike. 

3.       In 1991 Congress passed legislation reversing an earlier Supreme Court decision and specifically declaring that post-contract formation conduct, including retaliation, should be prohibited under Section 1981. 

4.     Since the law was revised in 1991 the lower courts have consistently found that Section 1981 prohibits retaliation.

A strongly worded dissent written by Justice Clarence Thomas and Justice Antonin Scalia, concluded that the statute does not state that it prohibits retaliation and when Congress revised the law it didn't include a provision barring such.  According to Justice Thomas: "Retaliation is not discrimination based on race.  When an individual is subject to reprisal because he has complained about racial discrimination, the injury he suffers is not on account of his race; rather, it is the result of his conduct."  Therefore, the dissent found, the Court should not imply a claim for retaliation into a statute that exclusively prohibits discrimination.

The Supreme Court’s decision means we're probably going to see more race discrimination and race-based retaliation cases.  Also, more of these will be brought under Section 1981, rather than Title VII.  Section 1981 provides several benefits to the plaintiff, including:

• a significantly longer statute of limitations
• no administrative remedies to satisfy
• no damages caps as under Title VII. 
  
  It will be interesting to see how this ruling unfolds in future court decisions. 
  
  

What are your vacation plans this summer?  Are you taking time off from work?  

I was reading a survey by Yahoo HotJobs which found that of 1,100 workers, 51 percent plan to skip summer vacations this year. 

Why? 

Well, many are fearful of a possible recession and/or are burdened by too heavy a workload.

• 44 percent of workers say they shoulder greater workloads than they did a year ago, yet most of them (35 percent) can’t escape mounting pressure to boost their job performance.
• 25 percent of workers are looking around for new jobs or are updating their résumé in anticipation of doing so.
• 57 percent of workers cite employee burnout —this is up from 49 percent a year ago.

Having an opportunity to get away from work on a regular basis is beneficial to both the employee and the organization.  Employees with no escape tend to burn out much more quickly.  Vacations provide employees with a new perspective on their work and allow them to return refreshed.  Also, many organizations such as financial institutions require employees to be away for 5 consecutive days as a security check. 

 

 

According to a variety of sources, there are anywhere from 2 million to as many as 40 million workers who telecommute for at least part of their work week.  Telecommuting, or using computer technology to work from home, became a buzzword in the 1990s, but as the nation struggles with soaring gas prices, air pollution and traffic congestion, telecommuting is again appealing to many workers and employers.

At different times in my career I have been fortunate to be allowed to telecommute.  I’ve had great bosses who didn’t have to see me every day. I was evaluated on what I accomplished, not where I accomplished it at.  The office environment can get very hectic and the quietness of being at home for one to two days a week helps to work uninterrupted on big projects. 

Currently we are seeing a resurgence of telecommuting because of fuel prices.  In the mid '90s, you saw it in companies where employers were trying to keep the talent they had. There hasn’t been a decrease in telecommuting, because where it's worked, it's typically worked well.

Companies offer telecommuting for numerous reasons –

·         Reduces vehicle emissions

·         Reduces commuting cost, employees can save money in fuel costs

·         Employees can put in more hours by working during times they would ordinarily be commuting

·         Increased worker productivity with fewer interruptions

·         Improves work-life balance

·         Reduces absenteeism

·         Allow employers to keep valuable employees

In 2007 the Society for Human Resource Management conducted a study to determine how many U.S. companies offered telecommuting as a benefit to employees.  The results were eye-opening.    

Telecommuting Trends

·         56% of those polled indicated their company offered some form of telecommuting

·         33% offered telecommuting on a part-time basis

·         21% provided telecommuting on a full-time basis

Trends by Industy

Industry	Percentage
Finance	47% part-time & 22% full-time
Services (Profit)	37% part-time & 23% full-time

Since many companies are either experiencing layoffs or keeping reducing expenses in this economy, it’s harder for managers to argue against telecommuting as they see their employees and themselves hammered by escalating fuel prices.  And it seems employers are becoming more receptive to the idea.

In fact, last month the House Speaker of the state of Georgia told state employees to start working from home one day a week as a way to fight high prices at the pump.  By telecommuting one day a week, employees can save 20 percent on their gas bill. Gas prices hit a new record last week, closing in on $4 a gallon.

Two years ago the Telework Consortium provided this analysis:

When gas is priced at $3 per gallon, it would take an employee earning $65,000 per year who commutes 40 miles roundtrip per day more than two months to pay for commuting. That is nine weeks and three days of his/her take-home pay, just to pay for a daily commute.

Quite an effective illustration, I think — even more so now that gas at $3 a gallon would have people lined up down the street.  The bottom line is, telecommuting can provide big payoffs for both the employee and the employer.

Ivy Tech Community College has been selected as Indiana’s only college to offer the Society for Human Resource Management (SHRM) Global Professional in Human Resources (GPHR™) certification.  In fact, Ivy Tech is one of only 27 universities and colleges across the country to offer this certification.

What a great honor for Ivy Tech to have been chosen as the school to offer this certification.  Ivy Tech is Indiana’s second largest public post-secondary institution with more than 110,000 students enrolled annually on its 23 campuses.

The Global Professional in Human Resources (GPHR™) certification assesses the mastery of HR knowledge to be successful in companies conducting business worldwide. Globalization is the defining political and economic force in the world today. It requires new ways of thinking and responding. For HR professionals, recognizing and understanding this phenomenon is fast becoming a job requirement.

The GPHR course is delivered in 35 contact hours over 12 weeks of instruction and is scheduled September 2 to November 18, 2008. The course fee is $995 and includes the GPHR Learning System manuals, software, access to the Resource Center and instructor handouts.