Generational Workforce

By Brittany Wilkey – Employco Human Resources

With the average age of retirement slowly increasing – whether due to financial needs, personal reasons, or simply because the average lifespan is also increasing – it isn’t uncommon to see organizations employing four to five generations at the same time.  Managing and recruiting such an extensive range of age groups can be difficult, but understanding a little bit about the wants and needs of each group can help both employers and employees maintain a cohesive workplace.

The first step is to understand what defines each generation, and how those generations are formed.  Generations are grouped not only because of their age and birth year, but also based on the social and cultural events occurring during their lifetime that ends up shaping their values, concepts, and beliefs.

For instance, a person in their 50’s who has been working for several decades is unlikely to have the same perspective as someone in their early 20’s who is just entering the workforce.  Along those same lines, an individual who lived through the Vietnam War, the Watergate scandal, or the digital boom, will be influenced by those major cultural events, and those same cultural events will impact how they approach their jobs, co-workers, and the workplace in general.

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Grieving Employees

Did you know that the average time an organization provides to employees for bereavement leave is 4-7 days, though the actual grieving process can take two years or more? Grief impacts not only the employee, but also the rest of the organization, as productivity and workplace relationships can also suffer when an employee is dealing with loss.

Fortunately, there are several steps you can take to help an employee cope with the grieving process:

  • As part of Employco’s group insurance, UnitedHealthcare offers participants access to their Employee Assistance Program, which can help employees receive free counseling.
  • We can provide group training sessions for employees and/or your management team on how to respond when an employee is coping with loss.

Employco can also help you by going over the different options for making bereavement leave or general policy adjustments at your organization.

Transgender Equality

It has been a little over one year since Caitlyn Jenner, formerly Bruce Jenner, announced a change to her name and appearance on the cover of Vanity Fair.

With only around 0.3% – 3.0% of the U.S. adult population identified as transgender, employers may mistakenly believe that it’s not an issue worth their time. However, since the transgender population and legal compliance issues are growing, proactive employers are preparing for a transgender workforce.

Legislative Guidance:

  • Transgender employee discrimination is prohibited under Title VII of the Civil Rights Act and under several state laws.
  • OSHA and the Department of Labor released a “Guide to Restroom Access for Transgender Workers” that requires companies to allow their employees to use the restroom that corresponds to their gender identity.

Recommendations:

  • Modify your employee handbook, policies and training to include transgender in the list of protected classes
  • Engage transgender employees in an “interactive process” to discuss their preference on the use of bathrooms, name, email address, pronouns and company announcement, if any

To listen to Employco’s recent podcast on transgender equality in the workplace, please click here. Contact us for help with your employee handbook, policies or employee training.

Government Disagrees Over New “Bathroom Law”

North Carolina recently passed a law (NC HB2, colloquially known as the “Bathroom Law”) declaring that individuals must use the bathroom that corresponds with the gender written on their birth certificate, not the gender with which they identify. The DOJ informed North Carolina Governor Pat McCrory that the state’s new law violates federal law, including Title VII of the Civil Rights Act and Title IX of the Education Acts Amendment of 1972.

Past precedence has set conflicting judgments about the issue, so Gov. McCrory and the DOJ filed separate lawsuits asking the courts to clarify the law. Due to the conflicting nature of past precedence, it is likely these cases will progress to the Supreme Court for a final ruling. The ruling will directly impact the workplace, particularly policies and procedures regarding transgender employees.

For more on this topic, please contact Jason Eisenhut at jeisenhut@employco.com.

JUST ANNOUNCED: New Overtime Rule

NEW OVERTIME RULE 
OvertimeThe Department of Labor (DOL) released historic legislation today that will drastically increase the number of employees who are eligible for overtime pay.

Effective December 1, the salary threshold under which employees are automatically non-exempt will increase from $23,660 to $47,476.

Every employee who earns less than $47,476 will become eligible for overtime pay, which is 1.5 x regular pay for hours worked over 40 in a week.

Exempt

EXAMPLE:

  • Today: Sally is an exempt supervisor with an annual salary of $45,000 ($21.63/hr).  If Sally averages 45 hours per week, she still earns $45,000 per year
Job Type Hourly Pay Hours Worked Annual Pay
Exempt $21.63 45/wk $45,000
  • Starting December 1, if Sally’s hourly pay stays the same ($21.63) and she continues to work 45 hours per week, she will become an hourly/non-exempt employee earning $53,436 per year ($45,000 in regular pay plus $8,436 in overtime pay)

POSSIBLE EMPLOYER STRATEGIES & EXAMPLES

  • Keep employees’ hourly pay and hours worked the same. Affected employees become non-exempt and eligible for overtime pay
Job Type Hourly Pay Hours Worked Annual Pay
Non-Exempt $21.63 45/wk $53,436
  • Increase applicable employees’ salaries to $47,476.  The employee will earn more but continue to be classified as salaried/exempt
Job Type Hourly Pay Hours Worked Annual Pay
Exempt $22.83 45/wk $47,476
  • Keep employees’ hourly pay the same (employee is eligible for overtime pay) but cap their hours at 40 per week to avoid paying overtime wages
Job Type Hourly Pay Hours Worked Annual Pay
Non-Exempt $21.63 40/wk $45,000
  • Decrease employees’ hourly pay (factor in estimated overtime pay) and allow employees to continue working the same number of hours per week which would correspond to the same annual earnings
Job Type Hourly Pay Hours Worked Annual Pay
Non-Exempt $18.22 45/wk $45,000

Based on a job duties test, employees earning at least $47,476 may qualify to be exempt from overtime pay.  Exemptions can include employees classified as executive, administrative, professional, outside sales or computer.

Contact us for support with your company’s compensation strategy and earnings calculations. We’re here to help.

Jason Eisenhut
630.286.7341
jeisenhut@employco.com