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.

NEW OVERTIME RULE 
The 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.

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

• 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

• Increase applicable employees’ salaries to $47,476.  The employee will earn more but continue to be classified as salaried/exempt

• 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

• 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

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

Employment expert Rob Wilson offers tips to keep office politics PC this election season

For many, November 8^th can’t arrive soon enough. With 228 days until the 2016 presidential election, discussions and debates about the candidates, the electoral process and the future of the country are sure to give rise to heated emotional exchanges and uninvited opinions in the workplace, from the reception desk to the corner office.

“Escaping or prohibiting political discussions at the work is impossible,” says Rob Wilson, President of Employco USA. “However, left unchecked, talking politics at the office could adversely impact productivity and morale, or worse, leave you vulnerable to a potential lawsuit.”

Wilson recommends that employers take a proactive approach to managing political discussions in the office to avoid any awkwardness or issues that could arise if employees are left to their own devices.  Here are his four tips for managing politics at the office this election season.

1. Review your policy on politics
   “Many companies have a policy or guidelines that prohibit posting of political propaganda or wearing political clothing in the workplace,” says Wilson.  “If your company has such a policy, share it with employees to remind them of what is acceptable and what isn’t.” Wilson suggests that companies that don’t have guidelines consider crafting one to avoid creating any potential tension or confrontations between employees at work.

2. Set the example
   “Political talk around the office is inevitable,” says Wilson. “Especially this election year which is more contentious and divisive than we’ve seen in decades.” Wilson advises bosses and supervisors to set the example for what is appropriate conversation in the office by keeping political discussions brief, light and  non-confrontational. He recommends that bosses and supervisors notify employees who engage in heated exchanges that it is not acceptable in the office, or risk creating a hostile work environment.

3. Avoid specific topics
   Certain issues that are tied to moral or religious beliefs, like same-sex marriage or transgender rights, should be avoided. “While it is ok to talk about politics at some level, supervisors in particular should be careful not to talk about highly charged issues. It could leave them vulnerable to a discrimination lawsuit,” states Wilson.

4. Mind your social media
   If you’re the boss and friends with your employees on social media, be careful with your postings, warns Wilson. “After work and on your own time, when political talk is technically OK, it’s still best to post carefully. Your personal political opinions can change someone’s opinion of you, your work or your ability to be seen as a fair boss,” states Wilson. “In addition, mind your company’s social media posts to avoid turning off customers.”

“Given the media coverage and divisiveness of this election season, it’s unreasonable to think you can keep employees from engaging in political discourse,” says Wilson.  “But you can lay out some guidelines for your office that not only inform employees what’s acceptable but also protect you from creating a toxic work environment. Remember, once the election is over, we all need to still get along with our co-workers.”

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.

Employment expert, Rob Wilson, explains HR procedure after an act of violence at the office

In the wake of the San Bernardino shootings, Americans are yet again reeling from the effects of a mass shooting.  And, much like the WDBJ-TV shooting in late August of 2015 which occurred on live television, workplace violence is now becoming a hot button topic for people across the country.

“The reality is that workplace violence is a growing concern for many people,” says Rob Wilson, CEO of Employco USA, “People deserve the right to feel safe at their workplaces, and when acts of senseless violence like this occur, it robs us of a sense of security.”

Here, Wilson outlines the steps that an employer should take in the event of workplace violence:

1. Put emergency guidelines in your handbook. “Make sure that your employee handbook offers procedures on how to handle the unthinkable. We have everything from fire drills to tornado drills.  We should also have steps in place for how to handle a mass shooting. If possible, you can even discuss these steps with a local law enforcement officer to help ensure that the best procedures are given to your employees.”
2. Offer grief counseling if appropriate. “For workers in the San Bernardino area, heading back to work on Monday morning was probably frightening and a bit unreal. It can be hard to forget the aftermath of the tragedy and switch back into work mode. For those companies in the nearby area that are most affected, a grief counselor can really be an invaluable resource.”
3. Consider offering a limited work schedule. “Where possible, allow employees to personalize their own schedules in the week following a tragedy. Maybe it is advisable for some staff to work from home, or for the workday to be short and limited. Look for ways to cut stress from employees’ plates, such as letting them commute to work a little later so that they miss the heavy traffic and clean-up that could be required due to the shooting.”
4. Try to find a silver lining. “The holiday season is an especially hard time to grapple with grief and terror, but it also offers many opportunities to make the world a better place. Try to bring cheer and a sense of office camaraderie to your workplace again by hosting a toy drive for a local charity or by inviting your staff to pitch in at a local homeless shelter. You can also remember victims through offering donations to the family.”
5. Keep political talk of out of the office—and off social media. “This is an important time to remind staff that the office is not the place for political debate, and neither are their social media pages if they interact with clients and other coworkers on these sites. It’s not the time to post gun control memes or the time to debate how the President should handle terrorism. Focus on healing and unity, not on divisive debates.”
6. Lastly, ask employees to follow the “see something, say something” motto. “Ask your employees to keep their eyes and ears open for anything that might be a sign of trouble,” says Wilson, “Have an open door policy and let employees know that they will not be penalized for sharing their fears, even if that fear turns out to be unfounded. We all need to be responsible for keeping our workplaces violence-free.”

Keep an eye out for warning signs, some of which may include:

1. Sudden and frequent absences from the workplace
2. Erratic Behavior
   • Complaints of unfair treatment
   • Disruptive to the work environment
   • Disrespect of management/supervisors
   • Frequent outbursts of anger
   • Depression
3. Be aware of social postings.  Many companies implement tracking of employees’ social postings.
4. History of violence
   • Fascinated with incidence of workplace violence
   • Shows an extreme interest in weaponry
5. Personal/family issues.  Frequent talk about a troubled family life.

For more on this topic, please contact Rob Wilson at rwilson@thewilsoncompanies.com.