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HR Policy

PAGA Win!

PAGA

On June 15, 2022, the U.S. Supreme Court issued its highly anticipated decision in Viking River Cruises v. Moriana , No 20-15173, holding that arbitration agreements apply to employee claims brought under California’s Private Attorneys General Act (PAGA) and that individualized PAGA claims may be compelled to arbitration! This is a nice outcome for employers!

What it means: A valid arbitration agreement can now be used to (1) compel the plaintiff’s “individual” PAGA claim to arbitration and (2) to dismiss the “non-individual” PAGA claim.

California employers, however, should be aware that Viking River Cruises may not be the final word regarding the impact of arbitration agreements on PAGA claims.

If you need an arbitration agreement or need to update yours, reach out to us! For more information on the case Click Here.

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HR Policy

California Wage Increases by City! Minimum Wage Changes

California Minimum Wage Changes

Effective July 1, 2022, these localities will increase their minimum wage to these rates:

Alameda: $15.75/hour;

Berkeley: $16.99/hour;

Emeryville: $17.68/hour;

Fremont: $16.00;

Los Angeles City: $16.04;

Los Angeles County (unincorporated areas): $15.96/hour;

Malibu: $15.96/hour;

Milpitas: $16.40/hour;

Pasadena: $16.11/hour;

San Francisco: $16.99/hour;

Santa Monica: $15.96/hour; and

West Hollywood: $16.00/hour for 49 or fewer employees; $16.50/hour for 50 or more employees

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HR

HR Consultants and How They Help

HR Consultant

Employee relations can be stressful and tiring matters to handle, particularly for small businesses. When it comes down to it, tying to tackle all of the recruiting, hiring, training, compensation, and retention of employees can be a headache! That’s why many organizations choose to hire an HR consultant to help alleviate some of the pressure. When you hire an HR consultant, they hit the ground running and can offer flexible, personalized services that best suit your organization. They are there to have your back and give you peace of mind!

HR consultants are great assets when it comes to the hiring process! They are able to remove the stress that inevitably accompanies implementing a successful recruitment and hiring strategy. As you may know, a bad hire can cost an organization a great deal, especially with each new hire taking eight months on average to reach full productivity. HR consultants are there to lighten the load, as they are familiar with the essential skills, knowledge, and abilities a candidate needs to perform successfully within each job function. Rather than engaging in the slow, tedious process, of sifting through applicants and conducting initial interviews, HR consultants are there to highlight the very best candidates to help your organization thrive.

HR consultants are also able to assist in the implementation of training and development for employees. They begin by identifying the need for training within the organization and then design and implement the training accordingly. HR consultants can also conclude each training with an assessment of each employee; these results can then be provided to organization leaders to help ensure employees are seeing the proper growth in each desired area of improvement. Each training program can also be customized to best fit the needs of the organization, ranging from compliance to employee relations!

HR consultants can also help to establish a much-needed change in company culture. HR can be one of the most effective contributors to assessing and improving an organization’s culture, and HR consultants can help to successfully facilitate that change! These methods can include coaching and supporting internal staff with trainings and assisting in building a greater dynamic for teamwork and collaboration, which maximize employee satisfaction!

Curating a competitive total rewards package is a major factor for attracting and retaining top talent within your organization. This of course includes pay and benefits, but also branched out to the potential of continued professional development, flexible work hours, and mental wellness initiatives! The first step to ensure satisfaction begins with employee surveys. With the help of an HR consultant, you can uncover exactly what an employee is looking for, because personalization is paramount! Every employee is unique, and their compensation package should reflect this. Plus, when employees feel as though they have the ability to pick what benefits work best for them, they are more likely to feel like they are being heard and have a greater sense of fulfillment and appreciation when receiving such benefits. HR consultants are also there to help you find the most cost-effective choices for your organization and assist you in ensuring that you are offering all of the benefits which are required by state and federal law!

All of this boils down to how HR consultants can help your organization retain its employees. High turnover is a hot button issue many organizations are facing right now as we continue through The Great Resignation. As you may know, high turnover impacts everything from employee morale and engagement to overall productivity. More so, once an organization gains a reputation of having consistently high turnover, this creates a bad image which can be difficult to recover from and may even damage your future recruitment efforts. This becomes incredibly costly as time goes on. An HR consultant can advise your organization how to ensure employees are satisfied, engaged, and willing to stick it out for the long run. So remember, be sure to reach out to us with any of your HR needs because we are always here to help!

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Employee Engagement

Using Employee Wellness Programs and Workplace Benefits to Increase Employee Engagement, Retention, and Productivity.

employee wellness programs

As we return to the new workplace “normal” post-COVID, more and more employees are transitioning back to some variation of in-person to work. Right now, it is estimated a whopping 60% of employees are engaging in some sort of hybrid schedule with at least one day involving in-person work. This has placed a spotlight on the importance of employee wellbeing, wellness programs, and employee work/life balance initiatives in the workplace. According to SHRM, “A well-executed [employee wellness] program can reduce health care costs, augment productivity, and increase employee retention, providing further support for the correlation between personal health and job satisfaction” (SHRM, 2019).

Wellness programs come in many shapes and sizes and are not always one size fits all! HR should take time to begin with an employee survey to see what wellness programs are most interesting and helpful to their employee demographic. Employees who feel as if programs are catered towards them will be much more likely to participate and reap the benefits. HR should also take into consideration the possible costs, benefits, and potential legal concerns that may accompany each program before going forward as well.

Wellness programs do not have to break the bank; there are a wide variety which can best suit your organization! For example, nutrition education and exercise programs or memberships are an easy and relatively cost-efficient way to get your employees involved in a wellness initiative! On the higher end of things, providing options such as health screenings, vaccine clinics, or health risk assessments can be valuable tools to help your employees understand and manage their health! Another option would be to provide some sort of mental health services for your employees. This may include free or discounted counseling, therapy, or psychiatry sessions for employees who are feeling overwhelmed or working through something in their personal lives. You can even provide incentives such as reductions to employee contributions to health insurance premiums or contributions to an employee HSA to get employees motivated to place importance on their wellness and want to be involved in your organization’s wellness program!

But are employee wellness programs really that helpful to the overall workplace environment? Studies have shown the answer is a resounding yes! Wellness programs help to improve productivity and performance of employees as studies have shown there is a direct correlation between employee wellness and employee productivity, motivation and focus in the workplace. There has also been a correlation found between wellness programs and the improvement of teamwork; it has been found that workers who engage in wellness activities together actually work better together! Wellness programs also help to lower the impact of stress and risk of illness for employees. This not only lowers healthcare costs for the employees, but also increases overall profit for the organization as employees are taking less sick time. This all leads to higher employee morale, improved recruitment, and reduced turnover!

However, be sure to note wellness programs are not all fun and games. They can have serious legal repercussions if done incorrectly as there are a number of federal laws which apply to the design and implementation of employee wellness programs. These include the Americans with Disabilities Act (ADA), Genetic Information Nondiscrimination Act (GINA), Health Insurance Portability and Accountability Act (HIPAA), and Patient Protection and Affordable Care Act (PPACA). A good rule of thumb would be to not make any employee wellness program mandatory, not require any employee health information be given involuntarily, and offer employees a reasonable alternative to earn any incentives which may be given if the program is unreasonably difficult for them due to a medical condition (SHRM, 2019). Always consult your employment law attorney before implementing any rigorous employee wellness programs!

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Employee Engagement HR

The Importance of Compliant and Updated Employee Handbooks

importance of employee handbook

Employee handbooks are a valuable resource and communication point between HR, the employer, and the employee. Handbooks provide information and guidance for new and existing employees in relation to the mission, values, benefits, policies and procedures of the organization. In addition, and perhaps most importantly, an employee handbook acts as a source of defense against any potential litigation or other legal trouble the organization or the employer may face regarding its employees in the future. As such, it is imperative to have your organization’s employee handbook reviewed, at minimum, annually by an employment or legal professional before distributing it to employees.

Documenting the organization’s compliance with federal and state laws and regulations should be the number one priority when crafting an employee handbook. According to the Society for Human Resource Management (SHRM), one of the largest mistakes many human resource professionals make when creating their employee handbooks is to simply insert their company’s name throughout a template without tailoring its language to fit the federal, state, or even county law and regulation requirements. For states like California which has extensive state and county laws and regulations, it is even more important to tailor the employee handbook accordingly (SHRM, 2021). 

Employers should make a habit of reviewing their employee handbooks, at minimum, annually. Employment laws, particularly laws on the local and state levels, are constantly changing and therefore should be consistently reviewed to ensure legal requirements are being met and all laws are being accurately reflected within the handbook’s contents. Conducting a full handbook review annually may seem tedious or unnecessary to some employers, however, it is the most accurate way to ensure there are no policies or laws that have been overlooked, and that the handbook’s contents still holds relevance to the organization. Failure to do so may expose the employer to liability, lead to lawsuits, and procure costly fees.

As mentioned, laws and regulations are constantly changing on the federal, state, and even county level, and litigation against employers and companies are becoming more prevalent as a result. The employee handbook is a means of protecting the employer against such liabilities, from discrimination or unfair treatment to wage and hour claims. As such, it is important to have it reviewed by an employment or legal professional. A legal counsel, such as an employment lawyer, ensures that all aspects of the employee handbook are compliant with laws and regulations (SHRM, 2020).

A lawful employee handbook is essential for an organization’s success. Some of the most important areas which should be addressed and reviewed annually within an employee handbook include state and local sick leave, remote-work rules, leave of absence mandates, health and safety requirements, the release of private information, regulations related to COVID19, anti-discrimination or harassment policies, and drug-testing programs or marijuana legalization laws. Additionally, if your organization has employees working in multiple states, it is imperative to create an employee handbook which complies with each of the state’s legal requirements.

It is just as important to ensure each employee handbook is sent with an accompanying written acknowledgement form. Acknowledgement that each employee has read and is made aware of the organization’s policies and procedures is just as important as ensuring the policies and procedures are compliant with laws and regulations. The onboarding process should address the acknowledgement of the employee handbook and should then be saved within the employee’s personnel file. Although this establishes the employee has been made aware of the organization’s policies and procedures, it is important to ensure it in no way is construed as an employee agreement, as this can affect the employment-at-will status (SHRM, 2021).

If you would like a compliant handbook or need yours updated, reach out to us! We would be happy to help!

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COVID-19

Senate Bill 93: California Right to Recall Statute

California Right to Recall

On April 16, 2021, California Gov. Gavin Newsom signed into law Senate Bill 93, which requires certain employers to rehire eligible employees who were previously laid off due to the COVID-19 pandemic. To be eligible for recall, laid-off employees had to have been employed by the covered employer for six or more months in the 12 months preceding Jan. 1, 2020. This bill is currently effective until December 31, 2024.

The law applies to hotel businesses, private clubs, event centers, airport hospitality operations, airport service providers, and building service providers (defined as businesses that provide janitorial, building maintenance, or security services to office, retail, or other commercial buildings). Covered employers must follow SB 93’s recall procedures, timeline and preference system, which gives priority to employees based on date of hire. 

Covered employees are considered “laid-off employees” who worked for a covered company for at least 6 months in the 12 months preceding January 1, 2020. Additionally, an employee must have worked two hours or more per week for a covered employer; AND were terminated for any reason related to the COVID-19 pandemic (including a public health directive, government shutdown order, lack of business, a reduction in force, or any other economic, nondisciplinary reason due to the COVID-19 pandemic).

As such, employers must make an offer to qualified employees if the laid-off employee is qualified for a position and laid-off employees must be offered the position in order of seniority. With that, simultaneous, conditional offers of employment may be made to more than one laid-off employee, with the final determination of which laid-off employee gets the position determined by seniority. 

The length of time the offer must be open is 5 business days, though if a covered employer chooses not to recall laid off employees for a position based on the grounds that they lack the qualifications, the employer must provide written notice explaining the reasons for the decision within 30 days. 

An employee may file a complaint with the DLSE, which has exclusive jurisdiction to enforce the law. The DLSE may award the complainant the following: 

  • Hiring and reinstatement rights 
  • Front or back pay 
  • Value of the benefits the complainant “would have received under the employer’s benefit plan” 

In addition, the DLSE may impose civil penalties of $100 for each individual whose rights the employer violated. The statute also provides the DLSE with the discretion to impose liquidated damages of $500 per day for each individual whose rights the employer violated “until such time as the violation is cured.” 

Record keeping requires an employer to keep records for 3 years, including records of communication regarding the offer letter to laid off employees. 

In addition to the statewide right of recall, local right-of-recall ordinances persist in Los Angeles, San Francisco, San Diego, Long Beach, Oakland, Santa Clara, and Pasadena; each of which has its own coverage and requirements.

Categories
Human Resources

The Great Resignation, Cost of Turnover, and Importance of Employee Engagement

the great resignation

According to a 2021 SHRM survey report, over 40 percent of United States workers are actively searching for a new job or are planning on searching for a new job soon. Additionally, 49 percent of executives within the United States have reported that in the past six months, their organization has seen higher turnover rates than usual. These turnover rates are twice what SHRM has seen reported in 2019 statistics (SHRM, 2021). For another perspective, according to a 2021 study done by the Bureau of Labor Statistics, the average turnover rate across all industries has skyrocketed to 57 percent (Bureau of Labor Statistics, 2021).

Workers in professional and business services, technology, retail, manufacturing, and administrative roles are most likely to see the higher turnover percentages, compared to workers in other industries (Bureau of Labor Statistics, 2021). Moreover, HR professionals surveyed by SHRM said recent voluntary turnover has been highest in operations, customer service, and logistics. On top of that, statistics show that Millennials and Generation Z are more likely than members of Generation X and Baby Boomers to say they are actively searching for a new job right now (SHRM, 2021).

So why are employees partaking in this Great Resignation? Although each employee’s reason may vary, there have been a number of trends which identify this phenomenon. For example, it has been reported that 56 percent of employees who are considering new employment are doing so because of their managers (Maurer and Mirza, 2021). 

Other common reasons for the Great Resignation among employees include:

  • Better compensation (cited by 53 percent of respondents). 
  • Better work/life balance (42 percent). 
  • Better benefits (36 percent).
  • Career advancement opportunities (33 percent).
  • Desire to make a career change (33 percent). 

High turnover rates due to these conditions can be detrimental to a businesses’ overhead profit and ability for growth. SHRM reported that on average it costs a company 6 to 9 months of an employee’s salary to replace them. That is anywhere between 50-60% of the employees’ salary. However, depending on the individual’s level of seniority, the financial burden fluctuates. For example, for technical positions, the cost jumps to 100-150 percent of salary. And at the high end, C-suite turnover can cost a business up to 213 percent of the employee’s salary (SHRM, 2021).

These rates are so high because organizations are not only forced to dedicate time and resources to recruiting, onboarding, and training a new hire after an employee leaves; business simultaneously take a hit internally while the role remains unfilled. These expenses are known as the cost per hire and cost of vacancy, respectively. It’s estimated that two thirds of all sunk costs due to turnover are intangible, including lost productivity and knowledge, which are part of the cost-of-vacancy calculation (SHRM, 2021).

Therefore, in times of record high employee turnover, SHRM researchers recommended the best way to combat the Great Resignation is for employers be innovative with their retention strategies and employee engagement. 

Low engagement is yet another reason why many employees choose to pursue other means of employment. For example, employees who are genuinely engaged are statistically proven to want to work harder and more willing to go above and beyond than their disengaged work counterparts. Moreover, in connection to performance, studies show that employee engagement results in higher performance outcomes and indicate that employees` engaged behaviors can help them perform better and much more effectively than others (Kura and Alkashami, 2021). 

Employee engagement is critical to all facets of an organization because having effective strategies in place helps to create a better work culture, reduces staff turnover, increases productivity, builds better work and customer relationships, and impacts company profits; all while supporting a happier employee. Statistics show that highly engaged organizations see an average of 20% higher sales than those that are disengaged. In the modern workplace, overall productivity increases by 20-25% when employees are engaged (Kura and Alkashami, 2021). By focusing on the importance of employee engagement, your organization can help ensure employees stick around longer, keeping employee retention high and turnover costs to a minimum. 

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Cal/OSHA

CAL OSHA update

CAL OSHA Update


6/18/21

“Are we supposed to request proof of vaccination from all employees? What do we do with the medical documentation? Doesn’t this violate HIPPA?”

I have heard this from a number of clients today. So we created some answers. I am sure there will be more information and guidance throughout the summer. We will continue to update you as change happens.

Regarding proof of vaccination:
• You don’t have to ask all employees to show proof of vaccination regarding the mask mandate, just those who want to go mask-less. However, you can require employees to be vaccinated, given you provide an interactive process and give reasonable accommodations where appropriate. Please don’t attempt this on your own! We will help guide you if this is what you want to do.

• Other options: can ask employees to confirm in writing they are vaccinated if they don’t want to wear a mask. You can also give gift cards (or other rewards) for proof of vaccination so you know who can go mask-less.

Violation of HIPPA?
HIPPA does not apply to the workplace like many assume it does. In addition, because COVID19 is recognized as a workplace safety issue, employers have broader abilities to provide a safe workplace, like taking employees temperature, daily health information screening as it relates to COVID19, and requiring vaccinations.

The additional information might come as good news to you as a CA Employer:
• Employers have to document the vaccination status of employees if they are going to go without face coverings indoors. You do not need to retain copies of vaccine cards,but you should have employees self-attest to their inoculation status via signed document and keep that in their employee files
• Workplaces still will be required to provide masks to workers who are not fully vaccinated against COVID-19 and make sure they wear the face coverings while indoors or in shared workplace vehicles or employer-provided transportation. Employers also will have to provide a respirator such as an N95 mask if an employee who is not yet fully vaccinated requests one
• The approved standards also do away with the requirement for solid, cleanable partitions designed to reduce viral transmission (such as the plastic barriers that separate customers and cashiers)

It is advised to review and update your IIPP. Don’t have one, call us!

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Cal/OSHA

Looking Ahead to Benefits; EAP and Mental Health!

employee assistance program


There has been an uptick in employees who seek mental health help since the pandemic began. A wonderful benefit program employers can add to their policies, for little cost, is an EAP (employee assistance program). Through EAP’s. employees are able to access a set number of mental health counselor visits for themselves and family members. They are also able to receive help from other providers if they need r different types of counseling. EAP’s are often underutilized programs that can help your employees get the help they need so they can thrive. If you notice an employee struggling or they come to you with statements about their mental health, it is great to have an EAP to guide them to.

CAL/OSHA Enterprise-Wide and Egregious Violations, What Does it Mean?
Governor Newsom just signed into law SB 606. This new law is a significant change to Cal/OSHA. It creates two new categories of violations: Enterprise-wide Violations and Egregious Violations. The law goes into effect January 1, 2022.

This new law creates a presumption that an employer has committed an enterprise-wide violation, or a violation at multiple worksites if Cal/OSHA finds either:
• The employer has a written policy or procedure that violates section 25910 of the Health and Safety Code; or
• Cal/OSHA has evidence of a pattern or practice of the same violation or multiple violations committed by that employer involving more than one of the employer’s worksites.

Cal/OSHA is not required to investigate other sites or observe other violations in order to issue citations. An employer can be cited for worksites that have not been inspected.

Cal/OSHA has also introduced egregious violations that can lead to exponential penalties for employers. According to the new law, each employee who could be exposed to the violation would count as a separate violation for fines and penalties.

Cal/OSHA can find that an employer has committed an “egregious violation” for any of the following:
• The employer, intentionally, through conscious, voluntary action or inaction, made no reasonable effort to eliminate the known violation;
• The violations resulted in worker fatalities, a worksite catastrophe, or a large number of injuries or illnesses;
• The violations resulted in persistently high rates of worker injuries or illnesses; The employer has an extensive history of prior violations;
• The employer has intentionally disregarded their health and safety responsibilities;
• The employer’s conduct, taken as a whole, amounts to clear bad faith in the performance of their duty to provide a safe work environment; or
• The employer has committed a large number of violations so as to undermine significantly the effectiveness of any safety and health program that might be in place.

Additionally, SB 606 provides Cal/OSHA with new subpoena power. The new law provides the agency with the authority to issue a subpoena if the employer or related entity fails to promptly provide the requested information. We suspect this will be used particularly as it relates to COVID19 and COVID19 requirements under CalOSHA’s ETS. If you are not adhering to the guidelines or need to update your COVID19 plan, reach out to us for assistance.

Minimum Wage and Salary Increase
Employers are reminded that on January 1, 2022, California’s minimum wage will increase to $14.00 per hour for employers having 25 or fewer employees and $15.00 per hour for employers with 26 or more employees.
Because the minimum salary threshold for exempt employees is defined as a multiple of the state minimum wage, this minimum wage increase means that the 2022 minimum salary threshold that must be paid to an exempt employee will be $1,120 per week ($58,240 per year) for smaller employers and $1,200 per week ($62,400 per year) for larger employers. Many cities and counties have higher minimum wage rates, but the minimum salary threshold is based exclusively on state law.

Categories
Human Resources

Paystub or Itemized Wage Statement requirements in California

Paystub in CA


Did you know there are multiple items that must be included on a paystub or itemized wage statement for employees in California?

The items that must be on a paystub or wage statement include:
• Employee Name
• Last 4 of SSN or another employee identification number
• Gross Wages
• Total hours worked (for hourly non-exempt employees)
• All deductions
• Net wages earned
• Dates that the pay period include
• Name and address of the employer
• All pay rates included in the pay period (Overtime, regular rate, piece rate, etc.)
• Available paid sick leave

If you use an HRIS or online payroll company, you must make sure all items are on the paystub. Compliant electronic copies of paystubs meet this requirement if employees can view and print their paystubs or wage statements as needed. Fines for noncompliance start at $50 and go up to $4000! It is important to ensure you are compliant with California’s wage statement requirements.