Key provisions of interest to Employers:

• Requires military individuals separating from services to participate in the Transition Assistance Program (TAP). This program is currently voluntary and now is mandatory for all military personnel.
• Directs the federal government to enter into agreements to provide job training assistance that provides veterans with the education, training, and services necessary to transition to employment.
• Provides a new hiring credit called the Returning Heroes and Wounded Warrior Credit as an incentive to hire unemployed veterans. The VOW Act provides a credit of 40% of the first $6,000 in wages (up to $2,400 max) for employers that hire veterans unemployed for at least 4 weeks and credit of up to 40% of the first $14,000 of wages (up to $5,600 max) for veterans who have been unemployed for at least 6 months.
• Changed the tax code to allow 501 (c) tax exempt organizations to claim credits on the employer portion of FICA tax.

 Reference: SHRM, 12/2/2011. President Signs Into Law the ‘VOW to Hire Heroes Act of 2011’

To avoid any potential workplace violence or conflict, SUSPEND the employee without pay, take all your company property (keys, credit cards, etc.) and exit them from your facility. You can follow up the suspension with a termination letter to avoid the employee from returning to your workplace.

Here are my top 5 most InFamous terminations:

1. Steven Jobs – Founder of Apple computers in 1970’s recruited Pepsi executive John Sculley to Apple as the CEO. Sculley FIRED JOBS! Jobs was later brought back to Apple in 1996 and often spoke about that experience as being one of the best things that ever happened to him because he became CEO of Pixar Animation Studios after leaving Apple. The rest is history!

2. Don Imus – CBS Radio announcer of the “Imus in the Morning” referred to the Rutgers University women’s basketball team as “nappy-headed hos”. His show was cancelled and he later apologized for the remark.

3. Michael Bloomberg – The New York mayor was fired from Solomon Brothers in 1981, with a $10 million severance package. Bloomberg commented, “was I sad on the drive home? You bet. But, as usual, I was much too macho to show it. And I did have $10 million in cash and convertible bonds as compensation for my hurt feelings”. Money always makes a FIRING go down easier!

4. JK Rowling – Harry Potter books author was fired from her secretarial job for using company time to write her books. According to Rowling’s former boss, “Rowlings use of company time and computers to pursue personal ambitions is tantamount to stealing”. Productive or policy violator, you make the call.

5. David Letterman – While working at Indianapolis TV station WTWI, Letterman described hailstones as “the size of canned hams”, and publically congratulating a “tropical storm” on its upgrade to “hurricane”. Not exactly a policy violation but definitely insensitive.

References: Rachel Zupek, September 2008, CareerBuilder.com. Famous (and Infamous) Firings.

Unemployed Dads Weblog, November 10, 2008. 10 Famous Firings

1. Calendar year limitation
2. For plan years beginning in the calendar year.
3. Calendar year limitation for FICA withholding purposes and for plan years beginning in the calendar year for retirement plan purposes.
4. The American Recovery and Reinvestment Act temporarily raised the public transit limit to $230 through 2011. Absent congressional action, the limit will revert to $125 in 2012.
5. The Adoption Assistance Credit, originally set to expire in 2009, was extended through 2011 by the Patient Protection and Affordable Care Act. Absent congressional action, the credit will no longer be available for the 2012 tax year.

Reference: Gehring, J. & Conley, B. (2011). Seyfarth Shaw Law Offices.

EIA dispatched HR expert Di Ann Sanchez, SPHR to the project. She uncovered additional legal issues, including the misclassification of employees and improper I-9 documentation, which could have led to a penalty of up to over $262,000. But by putting the right systems in place, Di Ann helped the organization avoid this issue, while also appropriately handling the other recent claims filed against them. Thanks to Di Ann and EIA, this organization will continue to be a positive influence on our community’s children for years to come.

Workplace Application: This session will highlight/describe the challenges facing employers with a Hispanic/Latino workforce. This session will teach you about the Hispanic/Latino workforce and HR challenges regarding performance expectations, recruitment, retention, total rewards and employee relations. You will understand the 2010 census demographics and what you need to do to prepare for your changing workforce as it relates to this demographic. This session will help you analyze and evaluate the relationship between you and your Hispanic/Latino employees. Understanding these employees will help you balance their needs in order to achieve your strategic goals, objectives and values.

Date & Time: Monday, April 30, 2012 – 1:30pm to 2:45pm

Presenter: Di Ann Sanchez, SPHR

Location: Gaylord National Hotel & Convention Center

Amount of Credit: 1.25

Credit Type: General Recertification

Session Type: Concurrent Session

Learn more…

In order to comply with various employment laws, it is critical your job description is compliant.

Please enter your email address below and click submit to download your free template! 

“Salting is the practice of sending in union members into a non-union workplace in an attempt to launch an organizing campaign towards an election. Salting is commonly done with the intent of going unnoticed by the target company as means of gathering information used to organize the workforce”.

Torres warns companies that Salters can also come to your workplace, dressed in union clothing (buttons, hats) to apply for a job. When the applicant is not interviewed and/or hired, the company can receive an unfair labor practice (ULP).

Union Salting Facts:

• Is a protected activity ensuring the workers’ rights to organize.
• The Salter will keep detailed notes and logs regarding the company’s activities.
• The Salter will participate in concerted activity (pass out union authorization cards for employees to sign).
• Search for unfair labor practices that the company is engaging in.
• Provide the union with information about the company and employee activities.
• The Salter will try to hide their union involvement from the management but not the employees s/he is trying to organize.
• The Salt will try to gather as many company documents as possible to provide union leadership with intelligence about the management. Documents such as company policies, safety policies, newsletters, employee lists, employee complaints, etc.
• The Salt will look for potential violations of the National Labor Relations Act (NLRA) such as if management asked employees if they signed union cards.

Managers should be trained on salter tactics as well as violations of the National Labor Relations Act. Remember the T.I.P.S. Company’s cannot Threaten, Interrogate, Promise or Spy employees.

Reference: Torres, R. 2011, Permanent Solutions Labor Consultants, Overview of Union Salting Tactics.

Below, please find the annual notices and documents you MUST provide your employees!

• Medicare Part D Notice: Employers whose health plans contain prescription drug coverage must distribute an Annual Notice to plan participants who are or who might be eligible for Medicare Part D coverage or have covered family members who may be eligible. The Centers of Medicare and Medicaid Services (CMS) releases updated notices for your use. Notices must be provided before October 15 every year.
• 401K and Profit Sharing Plans: A defined contribution (DC) plan with a safe harbor plan design, automatic contribution arrangements and/or a default investment feature is required to provide annual notice to participants to describe these types of plan provisions.
• Safe Harbor Notice: A safe harbor plan provides a certain level of employer contribution and strict vesting requirements in exchange for not having to pass the “ADP” (Average Deferral Percentage) and “ACP” (Average Contribution Percentage) tests. This notice must be given to all plan participants at least 30 days and no more than 90 days before the beginning of each plan year.
• Automatic Contribution Notice: A plan with an automatic contribution arrangement is required to provide an annual notice to plan participants. This notice must be given to all plan participants at least 30 days and no more than 90 days before the beginning of each plan year.
• Qualified Default Investment Alternative (QDIA) Notice: ERISA Section 404 c (5) provides fiduciary protection to plans which provide a participant’s accounts will be invested in a default investment fund if no investment direction is given by the participant. This notice must be given to all plan participants at least 30 days before the beginning of each plan year.
• COBRA Notice: Initial COBRA notices must be furnished to all employees no later than 90 days after the date that health plan coverage begins. COBRA notices are also required for all qualifying events. These notices must be given to plan participants within 30 days.
• Notice of Unavailability: Under COBRA, if an employee or other qualified beneficiary is not entitled to COBRA coverage the employer must provide this notice.
• Notice of Termination: Under COBRA, the employer must provide the employee or other qualified beneficiaries this notice prior to the end of maximum applicable period of coverage.
• Qualified Joint and Survivor Annuity (QJSA) Notice: This notice waives right to benefits, spouses’ right to benefits, and right to revoke waiver for defined benefit (DB) and defined contribution (DC) plans. Notice must be provided 90 days prior to annuity start date.
• HIPPA Certificate of Health Plan Coverage Notice: This notice must be provided to health plan participants of time period for health coverage. Notice must be provided by COBRA qualifying event notice deadline or within reasonable amount of time if participant requests within 24 hours of coverage end date.
• Notice of Period of Pre-Existing Condition Exclusion Notice: This notice provides pre-existing condition exclusion period, basis of determination, and provides opportunity to present additional evidence of creditable coverage for group health plan. Notice must be provided at a “reasonable” time period upon receipt of credible coverage.
• Special Enrollment Rights Notice: This notice is provided to those participants who qualify for special enrollment into group health plans. Notice must be provided no later than participant’s enrollment period.
• Summary Plan Description (SPD): ERISA requires a summary plan description be provided to all participants/retirees for all benefit plans. Notice must be provided 90 days of eligibility date.
• Summary of Material Modifications (SMM): ERISA requires a summary of changes to any information in Summary Plan Descriptions (SPD) for all benefits plans. Notice must be provided within 210 days following end of plan year when modification occurred. The only exception to this notice is if the employer has revised the SPD within this time frame.
• Statement of Accrued Vesting Benefits Notice: is notice informs participants of accrued benefits under a defined benefit (DB) or defined contribution (DC) plan at normal retirement age. For those participants not vested, the notice should state when vesting is effective. Notice must be provided 30 days of a request.
• Women’s Health and Cancer Rights Act Notice: This notice states the benefits under the Women’s Health and Cancer Rights Act, including applicable deductibles and coinsurance limits for group health plans. Notice must be provided upon enrollment in health plan and annually thereafter.
• Explanation of Rollover and Certain Tax Options Notice: This notice communicates to the recipient of rollover options for defined benefits (DB) and/or defined contributions (DC) plan into a qualified plan (i.e. IRA). Tax rules for distribution not rolled over are also included in the notice (mandatory 20% withholding). Notice must be provided no less than 30 and no more than 90 days before the initial payment start date.
• Age 70 ½ Distribution Requirements Notice: This notice communicates to terminated vested participants and active participants in defined benefits (DB) and/or defined contribution (DC) plans who become 70 1/2 and older. Notice must be provided by April 1 every year.
• I-9 Form: The Immigration and Reform Control Act of 1986 (IRCA) requires that every new hire employees provide employment eligibility verification. This form must be completed within 3 days of employment. The employer is REQUIRED to examine documents and retain the I-9 document. All
• W-4 Form: The Internal Revenue Service (IRS) requires all new hire employees to complete this form documenting the Employee’s Withholding Allowance Certificate. This form should be completed annually and if the employee fails to properly document their status, the employer MUST withhold federal income taxes as if s/he is single claiming no withholding allowances.

 The Department of Labor (DOL) issued their final rule that employers can send electronic benefit plan information and NOTICES to employee’s residences if the employee agrees to electronic notification. There MUST exist an option to receive a hard copy as well.

Regulators say that they will be much more vigilant of employee misclassification in the future. Employers who classify workers as independent contractors can have increased costs by around 20-30%, and some say that the confusing rules over what constitutes an employee means that businesses make honest mistakes. The IRS says that it expects most applicants to the program will be smaller businesses. The new Voluntary Classification Settlement Program is part of the IRS larger “Fresh Start” initiative to get more businesses and individual taxpayers into tax compliance.