Rick Rossignol

Mother-Baby Friendly Workplace: Employer Lactation Accommodation Requirements

Businesses have a legal obligation to observe federal and state laws guaranteeing nursing mothers the right to reasonable lactation accommodations. Knowing your business’ legal requirements regarding lactation accommodation can help you prevent expensive lawsuits- and may even prove advantageous from a human resources perspective.

Let’s take a look at how federal and California laws differ.

The Federal Fair Labor Standards Act

The Reasonable Break Time for Nursing Mothers Act is an amendment to the federal Fair Labor Standards Act (FSLA) requiring employers with more than 50 workers to provide reasonable accommodations for mothers who need to pump or express milk for their infant child. Under the FSLA employers must:

  • Accommodate a nursing mother’s needs for up to a year after the infant’s birth.
  • Provide a convenient location- other than a bathroom- in close proximity to the employee’s workspace.
  • Ensure lactation space is private and free from intrusion, which can include an employee’s office or workspace if all conditions are met.
  • Provide unpaid breaks only to hourly, nonexempt employees. These breaks should occur during the regularly scheduled meal or rest periods; however, employers are required to provide additional unpaid breaks when necessary.

There are two exceptions to this federal mandate. The first applies to small businesses with fewer than 50 employees in that they do not have to provide accommodations if doing so would cause undue financial hardship given the size, resources, and structure of their business. The second applies to both small and large companies with more than 50 employees; if pumping would cause a massive disturbance to a business’ operations, employers do not have to provide pumping space. Minor inconveniences do not qualify as serious disruptions to operations.

California lactation accommodation mandates

Depending on the state your business is located, you may have to observe stricter lactation accommodation rules. In 2002, California enacted Labor Code Section 1030 mandating all businesses to provide lactation accommodation to nursing mothers. Though similar to the FSLA, the California requirements differ in a few of ways:

  • California law applies to all businesses regardless of their size.
  • Employers must provide accommodations for as long as the mother decides to continue nursing, not just for a year after birth.
  • Both exempt and nonexempt workers must be given access to accommodations.

Failure to comply with California lactation accommodation laws can result in the Labor Commissioner’s Bureau of Field Enforcement (BOFE) issuing a civil citation of $100.00 for each violation. Employers may also be subject to reimbursing mothers for lost wages if they had to miss work to pump because adequate space and time were not provided.

Furthermore, nursing mothers’ rights are protected under California’s Fair Employment and Housing Act (FEHA), which classifies refusal to provide pumping arrangements as a form of sex-based discrimination. Under this law, employees can file claims suing for lost wages and emotional distress.

Employers can benefit too!

The benefits of breastfeeding are highly touted by the American Academy for Pediatrics and most of the medical community. So much so, there’s a nationwide movement demanding work environments conducive to nursing. Breastfeeding is shown to reduce illness and certain disease risks in children and reduce the likelihood of postpartum depression in mothers. Some studies have even shown nursing improves cognitive development in children.

Providing lactation accommodations has a positive butterfly effect on businesses too. When mothers are provided better pumping conditions at work, absences fall and productivity rises as work-family conflict and stress drops. Employers offering healthcare benefits may also see decreased insurance costs as nursing promotes health in both mother and baby.

If you own a business and are interested in implementing a lactation accommodation policy in compliance with federal and state law, contact our consultants at ExpertHR! We can provide human resource services at a fraction of the cost of an in-house department.

Employer Branding: The Key to Attracting and Retaining the Right People

As companies must increasingly compete to acquire talent from a shrinking marketplace, employer branding is becoming more important than ever. Employer branding proves to be an effective strategic tool in not only attracting and recruiting the right fit for your company but also retaining top talent.

Essentially, your employer brand is your reputation among current and prospective employees- the idea that your company is the best company, the ideal workplace. More than ever, the talent is researching how you compare to other companies, weighing the benefits packages, compensation, stability, opportunity, and ethics of each prospective employer. Basically, the talent wants to know what’s in it for them and how they’d fit in.

To promote your image as the ideal employer and work environment and recruit and retain top talent, read on for some tips to develop an effective employer brand.

Be authentic!

A common flaw many companies are guilty of is promoting an employer brand that does not align with the actual values, mission, and vision of their business. For many companies, evaluating their work culture is the first step in creating an authentic employer brand. It really helps to know your company beyond the basic product and service offerings; that is, what do you stand for and where are you going? Workers join and stay at companies based on company culture: do you value work/life balance, family benefits, stimulating work, and teamwork? You may end up finding that you need to overhaul your culture and strategic direction.

A strong executive team is the core of effective employee brands

A team of strong executives is the key to effective employee branding. Executives play a prominent role in promoting positive people relations. A good team will help establish strategic organizational goals, workplace culture, corporate core values, management style, and community outreach. All these factors heavily influence the employer brand. The team itself is part of the employer brand, as it is an integral part of the hiring and onboarding processes and routine workplace experiences, such as on-time payments and benefits management.

Ask the right questions

According to the Society for Human Resource Management, there are several fundamental questions to consider if you want to create an engaging employer brand, including:

  1. Is there a shared sense of purpose among your workers?
  2. How does your current reputation impact your ability to fill open positions with the right people?
  3. How would your workers- and their friends– describe your company?
  4. Do employees feel their work is satisfying or, perhaps, meaningful?
  5. Do you know why people accept jobs and why people jump ship?

Developing an effective employer brand that engages both current and prospective employees is a long-term commitment. There are many positive outcomes reported by other businesses, including attracting the right people, decreasing employee turnover rates, and more rapidly filling vacant positions. Though the ultimate metric of successful employer branding will be your bottom line.

If you want to start attracting the right people, contact our human resource experts at RTR Consulting. We can develop and implement human resource strategies that are perfectly aligned with your company culture at a fraction of the cost of an in-house HR department.

How a Business Can Retain its Top Talent Employees

 

 

How a Business Can Retain its Top Talent Employees

The unemployment rate has sunk quite a bit since the Great Recession’s 10 percent peak in October 2009. As of March 2017, the unemployment rate has dipped below expectations to 4.5 percent. That’s great news for the economy; however, it poses a challenge to companies looking to fill positions with top talent as the available pool of potential workers shrinks.

 

The costs associated with high employee turnover rates are also a hurdle to consider. Some studies show replacing a salaried worker could cost upwards of 9 months of their salary, while others suggest that figure is as high as two times their annual income, especially when replacing a high-level or executive employee.

 

So, how do companies retain top talent to avoid high turnover costs and competing with other companies for limited labor resources? Unfortunately, there is no one-size-fits-all solution, but there are several ways, monetary and cultural, a company can make their employees happier- and more loyal.

 

  1. Consider customizing your benefits packages to meet the diverse needs of your workforce. A MetLife study found nearly 3 out of 4 employees said benefits customization would promote loyalty to their employer. Employer-sponsored gym memberships and healthy-living incentive programs are just a couple of ways you can provide unique benefits offerings.

 

  1. “People join companies, but then they leave their boss,” according to Rex Connor, author, and owner of the consulting agency Mager Consortium, and quoted by Bloomberg BNA. If you want to keep talent, you should improve manager-employee relationships. How? Clarification. Remove any subjectivity from performance expectations, policies, and evaluation processes and spotlight clear examples of model employees. When workers know what’s expected of them, they’ll deliver. Setting clear standards will also let your workers know they’re being treated fairly.

 

  1. Forbes suggests promoting a company culture that values employee feedback. Conducting non-judgmental forums where employees can provide their thoughts on their working environment allows companies the opportunity to improve areas that may have otherwise gone unacknowledged. Why wait until frustrations boil over, causing the talent to quit? To further encourage constructive criticism, companies could even allow workers to communicate anonymously.

 

  1. Investing in employee education is a great way to diversify your workforce’s skillset and show your employees you are dedicated to their professional growth. Tuition reimbursement, formal or informal mentoring programs, seminars, and computerized training are all great investments.

 

  1. Don’t micromanage! If you’ve hired the best of the best, they likely already know what they need to do. Allowing employees a degree of autonomy can enhance satisfaction and boost morale.

 

  1. PAY WELL! Provide compensation commensurate with an employee’s experience. Other factors to consider are the cost of living expenses, seniority, and the supply and demand of workers within a particular industry. If you’re not paying appropriately, chances that another company will steal your talent are high.

 

If you want to keep employees for the long haul, there are clearly many strategies to do so. Just remember to implement the ones that fit within your company culture.

 

If you need help customizing employee retention strategies, contact our experienced human resources consultants at ExpertHR! We can create an HR strategy tailored to the unique challenges of small businesses or growing startups at a cost-savings compared to an in-house department. We combine our expertise in complex employment law with your company’s vision to develop a human resources approach that will allow your business to flourish.

 

 

 

 

 

 

 

Company Policies Regarding Paternity Leave

Paternity Leave

Providing fathers with the opportunity to take an extended period off for the arrival of a child, by birth or adoption, positively affects familial outcomes. The benefits of paternity leave include the promotion of parent-child bonding; improved health and development outcomes for children; and greater gender equity at home and the workplace, according to the Department of Labor’s policy brief on paternity leave.

 

These social benefits are highly touted, but how does offering paid paternity leave benefit employers? First, let’s discuss what a California business’s obligations are under the California Paid Family Leave program.

 

The California Paid Family Leave (CFL) program

 

The California Paid Family Leave program allows employees, both women, and men, to take up to 6 weeks paid leave within a 12-month period to bond with their newborn, adopted, or fostered child or care for an ill family member.

 

Employers are not responsible for the added expense of PFL benefits as employees contribute to the State Disability Insurance fund, the department that manages PFL, through tax withholdings from their paycheck.

 

According to the Small Business Majority, a national small business advocacy organization, California’s PFL program applies to all companies, regardless of their size, but isn’t highly restrictive. The PFL program does not:

 

  • Explicitly protect an employee’s job upon their return.
  • Require employers to continue health benefits while employees are on leave.
  • Require employees to pay workers while on leave.

 

Despite seemingly lax regulations, gaps in the PFL program are covered by other policies enacted by the federal Family and Medical Leave Act (FMLA), the California Family Rights Act (CFRA), and California’s Pregnancy Disability Leave (PDL) regulations. Combined with these policies, an employer is obligated to:

 

  • Reinstate an employee to their former position, or position with equivalent pay and benefits, upon their return from leave.
  • Continue health benefits while employees are on leave.
  • Not discriminate against employees who decide to take leave or file a complaint about an employer’s failure to adhere to federal and state leave policies.

 

Note that companies are still not obligated to pay for an employee’s leave under any of the above policies. Paid leave is completely optional in the US.

 

Moving beyond obligatory family leave policies: attracting and retaining talent with paid paternity leave

 

Want to attract and retain talent? Offer paid paternity leave.

 

Considering about 90 percent of fathers take time off for the birth or adoption of a child, paternity leave appears to be a potential perk for drawing and retaining talent. According to a 2014 study of highly educated professional fathers, 9 out of 10 considered paid paternity leave as an important perk when considering potential jobs, while 6 out of 10 considered it extremely important. Apparently, these numbers are even higher among millennials.

 

In light of these facts, offering paid paternity leave may improve companies’ employee turnover rates, especially for highly skilled positions, such as executives, engineers, and other white-collar professionals. When an employee quits, companies are hit with the cost of advertising the job opening, interviewing dozens of applicants, and training and onboarding new talent.

 

Some studies suggest losing a skilled worker can cost a company 6 to 9 months of the employee’s salary, while others indicate costs of as much as two times the salary. For example, according to glassdoor.com, the national average executive salary is over $121,000. That means a company could shell out between $20,000 and $242,000 just to replace them!

 

A host of big names are already offering generous parental leave benefits for both mothers and fathers, including Facebook, which allows employees to take as much as 4 months off for the birth of a child.

 

If you need to bring your company policies in compliance with current federal or state regulations regarding paid employee leave, contact RTR Consulting today! We can create or update your human resources strategy at a cost-savings compared to an in-house department. We combine our expertise in complex employment law with your company’s vision to develop a human resources approach that will allow your business to flourish.

Which California Cities Pay the Highest Minimum Wage?

Which California Cities Pay the Highest Minimum Wage?

If you own a business, you’re probably already aware that you need to keep up with federal and state minimum wage laws. But did you know you should also track your city’s minimum wage standards?

 

The state of California’s 2017 minimum wage is $10 per hour for companies employing 25 or fewer workers and $10.50 per hour for businesses with 26 or more. This rate is set to rise steadily until January 2022 when companies with 26 or more workers must pay at least $15 per hour to nonexempt employees.

 

However, there are California cities that have implemented minimum wage laws differing from the state, some of which are substantially higher. The 2017 minimum wage rates currently in effect since January 1st are as follows:

 

  • Cupertino- $13.75
  • El Cerrito- $12.25
  • Long Beach- $10.50
  • Los Altos- $12.00
  • Mountain View- $13.00
  • Oakland- $12.86
  • Palo Alto- $12.00
  • Richmond- $11.40-$12.30 depending on healthcare benefits and out-of-state income
  • San Diego- $11.50
  • San Jose- $10.50
  • San Mateo- $10.50 for nonprofits and $12.00 for all others
  • Santa Clara- $11.10
  • Sunnyvale- $13.00

 

While employers must observe state minimum wage laws, there are certain California cities where the hourly increase has not yet taken effect. Berkeley businesses will not have to raise their wages until October 1st, 2017, from $12.53 to $13.75. The following cities will have to bump their hourly wages up by July 1st, 2017:

 

  • Emeryville- $14.00 if employing 55 or less and $15.20 if employing 56 or more
  • Los Angeles city- $10.50 for 25 or fewer employees and $12.00 for 26 or more
  • Los Angeles County (unincorporated areas)- $10.50 for 25 or less and $12.00 for 26 or more
  • Malibu- $10.50 for 25 or less and $12.00 for 26 or more
  • Pasadena- $10.50 for 25 or less and $12.00 for 26 or more
  • San Francisco- $14.00
  • San Leandro- $12.00
  • Santa Monica- $10.50 for 25 or less and $12.00 for 26 or more

 

If you’re a business in San Francisco or Emeryville be prepared to pay among the highest minimum wages in the state! Emeryville companies must pay their nonexempt employees at least $15.20 if the employee 56 or more workers!

 

You should be aware that exempt employees’ earnings are affected by changes to the minimum wage. Exempt employees are generally white-collar workers who make discretionary and independent decisions, such as executives, administrators, doctors, and lawyers. In California, employees meeting the criteria for exemption must earn at least two times the minimum wage for full-time employment each month. While certain cities have higher minimum wage requirements than the state, the minimum salary threshold is calculated using the state minimum wage, ignoring individual city rates.

 

A business could pay thousands or even hundreds of thousands of dollars in back pay, fines, and attorney fees if they do not comply with federal, state, or city minimum wage requirements. Small businesses and growing start-ups are especially vulnerable to legal penalties as they may not have the abundant resources of larger corporations.

 

Our consultants at ExpertHR are ready to guide California businesses through complex labor and wage laws. Contact us today to create or update your human resources strategy at a cost-savings compared to an in-house department.

 

 

 

When Employers Need to Raise Wages

When Employers Need to Raise Wages

Most employers in California are subject to both the federal and state minimum wage laws.

The employer must abide by the law that is most advantageous for the employee. Thus, since California’s current law requires a higher minimum wage rate than the federal law, employers should abide by California’s law. Additionally, in California, it’s not just federal and state, you also must include the city ordinances.

There are 18 cities that have passed ordinances requiring employers to pay more than the state of California. Keeping track of the different rates per city as well as the two-tier systems of employers with 25 employees and employers with over 26 employees can be daunting.

If you add to that co-employer issue when using temporary employees, it’s easy to make a mistake. Early this year I had a client say that there were 17 employees as well as 16 temporary workers. He was under the impression that he could pay $10.00 an hour based on the fact that he had under 25 employees. He did not understand co-employer rights and didn’t realize that he was the combined total which means he had to actually pay $10.50 an hour.

Employers with over 26 employees have a big jump in the minimum wage in the city of Los Angeles from $10.50 an hour to $12.00 an hour starting July 1, 2017. Because the minimum wage also directly affects exempt status, employers need to raise the salary of the exempt to make sure they meet the salary test.

To be exempt from overtime, you must earn a weekly salary of two times the minimum wage and meet the duties test. Because the minimum salary to be exempt will eventually be $1201.92 a week or $62,500 annually, employers should evaluate the positions and determine If they can afford to keep positions salaried or need to move to hourly because of cost.

Employers do not always adjust the salaries of exempt employees with each raise in the minimum wage. If the position does not meet the salary test they are non-exempt or hourly.  Employers should audit their pay systems annually to ensure they are paying employees correctly.

Additionally, the following localities in California enforce a local minimum wage ordinance:

Berkeley
El Cerrito (effective July 1, 2016)
Emeryville
Long Beach (effective January 1, 2017)
Los Angeles City (effective July 1, 2016)
Los Angeles County (effective July 1, 2016)
Mountain View
Oakland
Palo Alto
Pasadena (effective July 1, 2016)
Richmond
Sacramento (effective July 1, 2017)
San Diego (effective July 1, 2016)
San Francisco
San Jose
Santa Clara
Santa Monica (effective July 1, 2016) and
Sunnyvale

Common Employment Law Mistakes Small Businesses Make

Common Employment Law Mistakes Small Businesses Make

 

As a small business owner, you may not always prioritize the finer points of employment law, instead of focusing on profitability, marketing, and branding, and building a reliable customer base. Small business owners are stretched thin! Perhaps you believe focusing on legalities will damage your relationship with employees, create a harsh working environment, and prevent you from focusing on your primary business objectives. On the contrary, understanding and adhering to federal and state employment laws will allow you to manage your staff compassionately and responsibly, facilitating a worry-free atmosphere of mutual respect and heightened productivity.

Because of limited resources and a necessary preoccupation with growing your company, you may be unaware you’re committing some common employer blunders:

  • Classifying non-exempt employees as exempt: Non-exempt employees are entitled to overtime pay or one and one-half times their regular rate when working more than 40 hours per week. Exempt employees are generally white-collar or administrative professionals paid a salary, eliminating the employer’s obligation to track hours and pay overtime regardless of hours worked. If you own a small business or startup, your financial and calendar resources may be limited, tempting you to save time and money by classifying employees as exempt without appropriate justification. This is a recipe for a very expensive disaster. Sooner or later, an employee may suit against you to recover unpaid wages.
  • Not training management on discrimination and harassment policy: California requires businesses with 50 or more employees to provide management at least 2 hours of harassment and discrimination training every 2 years. While businesses with fewer than 50 employees are not mandated to provide ongoing education, developing a keen awareness of harassment and discrimination liabilities among supervising staff can protect your company from financially devastating lawsuits.
  • Providing loans to employees and deducting payments from checks: If you want to lift an employee out of financial hardship by providing a loan, have them sign a promissory note formulated under the legal counsel and make repayments directly to you. It is illegal to implement paycheck deductions not specified by federal or state mandates. Legal deductions are limited to: federal and state taxes, Social Security, state disability insurance, benefits such as a 401k and flexible spending account, child support, and wage garnishments. It’s okay to be charitable and sometimes it makes sense to develop a close-knit working team. However, do so within the scope of your legal obligations.
  • Not observing lunch breaks: If an employee works more than five hours in a given day, they are entitled to a 30-minute uninterrupted, unpaid lunch break. Breaks can occur any time before the five-hour mark, after which you would be in violation of California employment laws. You should observe this requirement regardless of whether the employee desires to break.

These are just a few of the many common mistakes you (or your employees) might be unknowingly committing. Insulate your business from legal repercussions by hiring an experienced human resources consultant like RTR Consulting to navigate the nuances of compliance codes mandated by federal and state governments. We can work closely with your team to develop an HR strategy tailored to the unique challenges of small businesses or growing startups at a cost-savings compared to an in-house Human Resources department. We combine our expertise in complex employment law with your company’s vision to develop a human resources approach that will allow your business to flourish.

 

HR Audits FLSA

Are your employees classified correctly according to the Fair Labor Standards Act (FLSA)? What kind of impact can it have on your organization if they aren’t?

Misclassified employees as exempt create exposure to not being in compliance with FSLA. If the employee does not meet the test to be exempt, employers could have exposure for three years of overtime, rest, and meal periods exposure.  To meet an exempt classification, a job must pass a “test” consisting of three prongs outlined in the FLSA regulations – salary level, salary basis, and duties. If the employee does not meet the salary test, they cannot be exempt. The longer you wait to reclassify your employees the more expensive it may be. And because job duties change over time, what was once an appropriate classification maybe a year or two ago can now be a misclassification.

RTR Consulting Inc. helps our clients meet the requirements of the FLSA, by reviewing positions’ exempt/non-exempt status, job descriptions, job analysis as well as overtime policies and procedures. RTR Consulting Inc. utilizes the most current regulations, as well as the Department of Labor information to provide best practice recommendations for position classifications.