SUTA Rate Doubled in 2012

Georgia companies need to prepare themselves for a large tax increase in 2012. At the start of next year, the Georgia State Unemployment Tax Authorities (SUTA) rate will be at least doubled for every worker in the state which companies pay for.

A few years ago, the state unemployment trust fund ran out of money which forced Georgia to borrow a $720 million loan from the federal government. Though the state has already paid back $21 million in interest payments, the loan has started to become due causing the state to increase the rate to pay off the loan.

Georgia Labor Commissioner Mark Butler is suggesting the state cut back on benefits with a requirement to wait a week before being eligible to collect unemployment benefits. Also, he would like to take the top benefit amount down from $330 to $300 a week, along with cutting back the total number of weeks.

For more information, please contact Todd Weyandt at todd@laihr.com.

7 Ways to Have a Holiday Party without Getting Sued

We are in the midst of the 2011 Holiday Season, with everybody running to get all their shopping completed, decorations up and companies wondering if and how they should have a holiday party. Many employers are concerned about the wisdom of throwing a holiday company party with the ever increasing risk of being sued or having some sort of issue arise from the gesture.

Companies are put in a difficult position because on one hand they want to do something nice for their employees, but on the other hand they don't want to make anybody upset or uncomfortable. So, the question becomes how can a company throw a Holiday Party but reduce their risks?

Below are some simple suggestions to answer the big question:
1) If possible, do not serve alcohol. This is actually becoming more the norm among company parties. The simplest solution would be have a catered meal in the office.
2) If you do plan on serving alcohol, there are a few things you can do to lower problems. First, always serve food as well and make sure there are plenty of non-alcoholic beverages available to people. Second, consider serving only beer and wine. Thirdly, do not have an 'open bar' where employees can drink as much as they want as well as close the bar at least an hour before the end of the event.
3) Hire professional bartenders. It is never a good idea to use supervisors for this job.
4) Announce that the company's normal workplace standards of conduct will be in force during the party. Let the managers know they need to watch to ensure nothing inappropriate happens.
5) Arrange for a taxi service to drive employees home who should not be driving.
6) Invite all employees' significant others.
7) Use common sense and discretion.

Enjoy and Happy Holidays!

Legislative Update - Tax Credits for Veterans

President Obama signed into law the Veterans Opportunity to Work to Hire Heroes Act of 2011 on Monday, November 28, 2011.

This bill provides a tax credit of up to $5,600 to companies who hire a veteran who has been unemployed for six months or longer. Also, companies who hire a veteran with service-connected disabilities that have been unemployed for six months or longer can claim up to a $9,600 tax credit.

For more information contact Todd Weyandt at todd@laihr.com.

Deliver Top Notch Customer Service by Rewarding Employees

Quality customer service can be achieved by providing some monetary incentives to employees. When customer satisfactions are tied to employee rewards the results can be very impactful. In developing an effective compensation system, the company should:
- Understand what its customers expect
- Understand how customer satisfaction affects organizational success
- Develop and implement a valid customer survey
- Assure employees that the metrics used are valid
- Consider whether additional factors should be involved in rewards
- Balance customer satisfactions with employee productivity and return on investment (ROI).

These types of programs should be balanced with a financial indicator such as profits and/or earnings. Also, a positive customer satisfaction score should not automatically mean a bonus for the individual employee because you need to take into account the financial aspect, too.

As a general rule of thumb, HR experts agree that all employees, including executives and front line service staff, should be included in a customer satisfaction compensation program. With the entire company involved in the customer service, all are actively involved in the same direction and goal.

Once a company ties customer satisfaction with employee compensation, they must be very precise to make sure that changes in measurement are not a result of a statistical fluctuation. These types of programs also require a higher level of sophistication in design and methodology than typical survey programs.

Companies using customer satisfaction compensation programs must be willing to experiment in order to see what produces the best results and environment. For more information, please contact Todd Weyandt at todd@laihr.com.

Growing Talent Divide between Small and Large Size Companies

Good news for recent college graduates, more employers are hiring from this group in 2011 than in 2010. According to a Society of Human Resource Management poll, companies with 500 or more employees are responsible for this uptick in demand.

The smaller size companies are leery of hiring recent college grads due to the lack of available resources to train these potential employees in a still stagnant economy. These smaller organizations are being forced to heavily rely on their long-term employees to be highly productive in order to survive.

Managers of larger companies are usually blessed with the ability to use projected talent requirements instead of the current demand to base some of their hiring decisions. However, if these trends continue a talent development gap could emerge between the small/mid size companies and the larger corporations.

Smaller organizations are not out of the game though. They are better able to offer different benefits that the bigger companies cannot. For example, smaller organizations can provide more informal and/or flexible environment with hours and telecommuting. Also, employees in small companies are able to use a varied of different skills and abilities to have a more direct impact on the overall company.

Employee Happiness or Results...It Doesn't Have to be One or the Other

Managers are faced with a decision, how are you going to treat your employees to use their maximum potential. Too often, managers set up a dichotomy between getting results and being liked. The truth is these two things are not mutually exclusive. In fact, they can often go hand-in-hand.

When poor performances are ignored for the sake of maintain good relationships, the long term ramifications can be costly and adverse. This type of environment can lead to employees taking advantage of the situation and their bosses. Also, morale eventually suffers due to the lack of drive and performance which can lead to resignations or unengaged employees.

Instead managers should actively try to engage employees by getting results. When results are achieved in a company and/or team pride and confidence starts to build up. Then the employees will develop more of vested interest in the fundamentals with a desire to do better.

Developing results centered reward programs are a great way to get employees actively involved in the company. There are four fundamental areas for results: Growing Revenue, Attracting Customers, Retaining Clients, and Cutting Costs. Managers should take an active approach in leading programs that provide an incentive for employees to help improve these four fundamentals.

With a focus on engaging employees with results, managers will likely start to have a more productive, loyal and happy team over the long-term.

For more information on reward programs to engage employees, contact Todd Weyandt at todd@laihr.com.

Building a Successful Team Environment

People like to work in an environment where they feel apart of something bigger than themselves. Highly successful companies are able to tap into that feeling by fostering a true team atmosphere. This starts with laying the foundation for trust and mutual respect among all of the employees and managers.

There are 5 main steps that can set a company on the path of creating an effective team environment:

1) Set Clear Goals: A team without a goal is like a house without a frame.
2) Commitment and Competence: Make sure you have all the appropriate people and resources to complement the work.
3) Coordination and Control: Provide employees with enough freedom and empowerment to feel the ownership necessary to accomplish their goals.
4) Creative Innovation: Value creative thinking, unique solutions and new ideas while making all feel comfortable asking questions, expressing opinions and making suggestions.
5) Responsibility: Hold each member personally responsible and reward/recognition positive accomplishments.

For more information on creating successful teams and engaging employees for maximum efficiency, reserve your FREE seat at LAI’s Lunch-n-Learn on November 16. Contact Todd Weyandt, todd@laihr.com to RSVP.

FREE Lunch-n-Learn: Engaging Employees to Become a Cohesive Team

Learn How to Stop Working Against Each Other to Reach Maximum Success
Come join LAI for a Complimentary Lunch-n-Learn, presented by Lowden & Associates, one of Atlanta's top HR firms

In today's streamlined world, having employees who are engaged in one overall team goal leverages employees' efforts.

Join Lowden & Associates, Inc. in the next HR Partners Lunch-n-Learn Series on November 16th to learn creative and effective ways to create a work environment where employees work for the betterment of the company's overall vision and success. Reserve your FREE spot today!

Featured Highlights:
- Leveraging Employee DISC Personality Assessment
- Social Media's Role in Engagment
- Improving Communications and Cooperation
- Importance of Reward and Recognition Programs
- Creating an Efficient, Open and Productive Atmosphere
- Building a Successful Team Environment

Wednesday, November 16, 2011
11:30 a.m. to 1:00 p.m.

LAI Headquarters
3105 Medlock Bridge Road
Norcross, GA 30071

SPACE IS LIMITED, RESERVE TODAY
Contact Todd Weyandt
todd@laihr.com
770.248.0401

New NLRB Rule Requires Notification of Employee Rights to Organize

The National Labor Relations Board(NLRB) issued a final rule that will require most private sector employers to post notices in their workplaces advising employees of their right under the National Labor Relations Act (NLRA), regardless of whether the workplace is unionized or union-free. The NLRA is the federal statute that provides employees with the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. The rule will take effect on November 14, 2011.

The notice must be posted in conspicuous areas of the workplace, including all places where other workplace notices are normally displayed. The notice can be found and downloaded here.

Employers may also be required to distribute the notice electronically to employees, such as email, posting on an intranet or an internet site and/or other electronic means. Employers should maintain a record of when, where and how they posted the notice, including a digital photograph to serve as evidence of compliance with the notification requirement. Failure to comply may be considered an 'unfair labor practice' under the NLRA and can be reported to the NLRB by employees.

For more questions or information about this rule change, please contact Lowden & Associates, Inc. at 770.248.0401.

Georgia Supreme Court Rules Non-Lawyers May Not Answer Garnishments

Over the years, Georgia employers have become accustomed to processing and responding to garnishments on their own. While legal counsel might be called upon to handle the more unique issues that inevitably arise in a garnishment proceeding, employers more commonly resort to their human resources or payroll departments to handle routine garnishments.

But the other week, the Georgia Supreme Court adopted what had until now been only an informal State Bar advisory opinion stating that a non-lawyer, such as a payroll clerk or human resources employee, who answers a Georgia garnishment is engaged in the unlicensed practice of law.

The Demands of Quality

Ten Steps to Retain High Potential Employees

Every company wants to capitalize on their high-potential employees to ensure the greatest amount of success, though sometimes their corporate culture sabotages their goal.

However there are 10 simplistic ways to help maximize high potential employees.

1) Tell Them They Are Special
It is human nature that employees want to be praised for a job well done. This is especially critical for high-potential employees. In a Center for Creative Leadership survey, only 40% of employers formally tell high-potentials their status. Companies that fail to acknowledge their employees pay a steep price with a higher turnover rate with this crucial demographic.
2) Align Individual and Company Needs
Top talent not only appreciates but wants to be directly involved in planning their development. This group does not like to be dictated to. The planning process should be a dialogue where both sides wants and needs are balanced appropriately.
3) Give Real Responsibility
High-potentials thrive the most when they are truly held accountable for something that is a significant assignment under their control.
4) Show Flexibility
Companies need to be flexible in offering creative solutions that respect lifestyle needs and while still providing the opportunity for advancement. An inflexible assignment, especially relocation with young children and a working spouse, can create serious problems and become a morale buster.
5)Utilize Strong Mentors
Mentors can go a long way in the success of a high-potential employee, who want access to people in the hierarchy. Also, substantive exposure to top decision-makers and not just ‘face time’ is essential in the development of high-potential employees.
6) Develop Leaders
High-potentials are aware of current workforce trends and therefore what they want and need from a development program. Companies should consider what their high-potentials are saying.
7) Use a Systems Approach
This approach does not require a costly and/or sophisticated software. The process for creating criteria, evaluating performance and analyzing administrative compliance should be provided.
8) Use a Transparency Test
Employee morale decreases when the selection process is viewed as unfair or has a built in favoritism component. Make sure your policy is open and upfront to avoid any misconceptions.
9) Get Buy-In From The Top
Initiatives like this are set-up for failure without the direct buy-in from the company’s top leaders.
10) Only Offer What Is Possible
Always weigh carefully whether or not your company can truly afford to pay the total rewards that high-potentials like to receive.

Lowden & Associates, Inc. Honored to Support CHRIS Kids and the 11th Annual CHRIStal Ball

Lowden & Associates, Inc. is honored to announce their continued support of CHRIS Kids and the 11th Annual CHRIStal Ball on Saturday, September 24, 2011 at 6:00 p.m. The gala event will be at the Georgia Aquarium in downtown Atlanta.

LAI's owner Sheila Dramis and her husband Fran will be awarded the CHRIStal Vision Individual Award during the ball. They will receive this special honor for their philanthropic contributions, outstanding leadership and service to children, youth and families with special emotional, residential and mental health needs in the state of Georgia with CHRIS Kids.

"We feel privileged to be associated with such a wonderful non-profit and have the honor of being this year's CHRIStal Vision Award winners," said Sheila Dramis, President and CEO of Lowden & Associates, Inc. "CHRIS Kids is an invaluable institution in the community".

CHRIS Kids unlocks the potential for thousands of children, youth and families by providing unconditional love, housing and other supportive services to ensure people become productive, contributing members of our community. They celebrate their 30th anniversary and have changed over 15,000 lives in the state of Georgia.

For more information on CHRIS Kids, the CHRIStal Ball or to donate today go to wwww.chriskids.org.

Quality Performance Appraisals...Reduce Risk of Discrimination

5 Easy Steps to Put Your Company on More Solid Ground

The value of conducting consistent performance appraisals on every employee cannot be understated. Most companies miss the mark on this point and therefore open themselves up for possible discrimination claims when a disciplinary action or termination arises.

Employers usually have a valid business rationale and lawful motivations for both disciplinary and termination action. Then why are discrimination claims so prevalent? Two simple answers. The first reason is companies struggle with a lack of a clear process and follow through when it comes to evaluating employees. The second is for emotional reasons. Companies have problems during the pre-termination and the termination process. These flaws can create the illusion of unlawful motivation even if none were present.

So the big question becomes, “How can a company reduce the risk and shore up the evaluating process?” The following are several points to answer the big question.

1) Over-evaluation is deadly. Some employers feel uneasy with providing a tough critique of an employee during their evaluation. Instead of listing a factual representation of the work and attitude of the employee, the employer glazes over faults and only seeks to praise. The problem with this approach is it can provide evidence of pre-text (which alone wins a litigation case). Companies should maintain a list of all employees whom have received complaints and/or concern from supervisors. This way provides documentation of issues and can serve as a reminder to the supervisor.

2) Employee evaluations should contain a comparator question. For example, “How does the employee’s performance compare with that of his or her peers?” This is a great way to make sure over-evaluation does not occur because not everyone can be better than their peers.

3) Delay comes with enormous risk. Train managers that once a decision has been made, act on it. Delay creates a window for an employee to use in order to make a protected compliant that will make any sort of adverse action that follows seem retaliatory in nature. In certain situations, delay can be inevitable. When those times arise, document the fact that a decision was made.

4) A cluster of documentation during a small period of time following a time with no documentation can be worse than if there where no documentation at all. When this happens, it gives the perception that the employer is out to get the employee. HR professionals should be contacted every time a manager is mildly irritated or frustrated with an employee instead of delaying until a decision has been made.

5) General labels must be made specific. HR professionals need to be used in order to break down the general labels of supervisors into relating to specific behavior problems. Simply saying the employee had a bad attitude will not suffice. A bad attitude to one person is another person’s good attitude. Always contain specifics.

When in doubt, it is always better to be specific and contact your HR professionals for assistance. For more information on performance appraisals, contact 770.248.0401.

Don't Blow the Candles Out on the Celebration

Having an intra-office birthday party for an employee is a great low-cost but personalized way to honor an employee. However, if handled incorrectly it can lead to hurt feelings and claims of discrimination.

First and foremost, always ask permission from employees during the new hire process. Some people view releasing their birthday information as an invasion of privacy. Others might believe that celebrations of any kind could be at odds with their religious beliefs.

Recognitions should be funded by the employer, though in a lot of companies today department leaders ask their employees to chip in with costs sometimes. This situation can create an uncomfortable situation and lead to ill will between co-workers. Ask preference beforehand to remain on the safe side.

The most important rule to always remember is never reveal the age and/or year of the employee's date of birth. Some companies have monthly birthday celebrations and honor all employees born in that specific month. This helps to reduce the risk of talking about birthday years and/or age.

Finally, to avoid any discrimination claims, what you do for one employee must be offered for another employee as well. This will reduce the bias of preferential treatment.

Company birthday celebrations can serve as a great and easy morale booster, just do not go blowing out the candles of the party!

Finding the Best Candidates to Make Your Company a Success

Complimentary Lunch-n-Learn on Recruiting and Interviewing Techniques
Presented by Lowden & Associates, Inc.

The economy is trying to rebound which brings Americans to finally see some jobs return to the states. Hiring skills in recruiting and interviewing might need to be dusted off to compete for top notch candidates in the vast available pool.

Needing a crash course in how to find the most qualified candidates to make your business more effective? Lowden & Associates, Inc. is offering a complimentary Lunch-n-Learn on September 14.

Feature Highlights:- How to source qualified candidates
- Important fundamentals of ad writing, job descriptions and where to post
- Value of effective recruiting
- Interviewing skills required to obtain the best talent
- Appropriate and inappropriate interview questions
- How to read interview cues
- Value of decision making criteria

Come Learn Effective Recruiting and Interviewing Skills at a Complimentary Lunch-n-Learn sponsored by Lowden & Associates, Inc.

Wednesday September 14, 2011
11:30 a.m. to 1:30 p.m.

LAI Headquarters
3105 Medlock Bridge Road
Norcross, GA 30071

SPACE IS LIMITED, RESERVE TODAY
Contact Todd Weyandt
Communications Manager
todd@laihr.com
770.248.0401

Final Rule on Form I-9 Released

The U.S. Citizenship and Immigration Services have replaced the interim rule of 2009 with the final rule, effective May 2011.

The Final I-9 Rule states the following:
- Employers are prohibited from accepting expired documents because they are subject to fraud and have the possibility of not having the current status of the bearer.
- Form I-688, “Temporary Resident Card”, and Forms I-688A and I-688B, “Employment Authorization Cards”, are no longer on the list of approved documents. These documents are no longer being issued and therefore are officially expired.
- The new U.S. Passport card and the temporary Form I-551, known as a “Permanent Resident Card” with a printed notation on a machine-readable immigrant visa, are now added to the list of approved documents on List A of Form I-9.

Employers may use either Form I-9 with the revision date of Aug. 7, 2009, or Form I-9 with the Feb. 2, 2009, revision date. The agency stated that the expiration date of Feb. 2, 2009, Form I-9, has been extended until Aug. 31, 2012.

Federal Judge Places Temporary Injunction on Sections of the Georgia Immigration Law

U.S. District Court Judge Thomas Thrash granted a temporary injunction on certain parts of the new Georgia Immigration Law on Monday June 27, 2011. Judge Thrash declared the criminal aspect of the law did not coincide with federal law, especially the provisions empowering police to investigate the immigration status of certain suspects and those prohibiting the transport, harboring and enticing of illegal aliens. The E-Verify provisions were not blocked and will go into effect on July 1, 2011.

For more details on blocked and non-blocked provisions email todd@laihr.com.

Lowden & Associates, Inc. is sponsoring a FREE webinar covering the details of this law on July 12 at 11:00 a.m. For more information, click here.

HR Partners FREE Webinar Series- New Georgia Immigration Law

Join Lowden & Associates, Inc. on July 12, as we state the details of the new Georgia immigration law and what is required of your business.

This FREE hour long Webinar will explore everything you will need to protect your company and stay in compliance:
- What is E-Verify and how to use it
- When you are required to participate in E-Verify
- Additional steps required for contractors and subcontractors for the State of Georgia
- What will result in imprisonment and fines
- And much more

Here at LAI, we pride ourselves on taking top notch care of our clients and offering the best up to date information. Come learn how to successfully remain in compliance under the new Georgia Immigration Law at our Complimentary Webinar.

Tuesday July 12, 2011
11:00 a.m.

RESERVE YOUR SPOT TODAY
Contact Todd Weyandt
todd@laihr.com
770.248.0401 ext. 20

FREE Webinar to Protect Your Company from Social Media

Due to popular demand on the subject, Lowden & Associates is offering a complimentary webinar on creating effective strategies and policies to protect companies from the pitfalls of social media.

Social Media is growing in popularity each day, but so are the increases in corporate vulnerabilities. There is no doubt, when harnessed correctly, social networking can be a powerful weapon in any company's arsenal. The Catch 22 is that same weapon can blow up in the company's face just as easily.

Fear not, there are ways to minimize the risk while increasing the effectiveness of Social Media.

We pride ourselves on taking world class care of our clients. LAI would like to extend a personal invite to you to come learn successful Social Media strategies at a Complimentary Webinar, sponsored by Lowden & Associates, Inc.

Wednesday June 15, 2011
11:00 a.m.

RESERVE TODAYContact Todd Weyandt
todd@laihr.com
770.248.0401

Illegal Immigration Reform Comes to Georgia

Illegal immigration reform has come to the State of Georgia. This month Georgia Republican Governor Nathan Deal signed into law a controversial bill addressing screening illegal workers during the new hire process in companies with 10 or more employees.

The bill’s proponents claimed the state’s 500,000 illegal immigrants are causing a undue hardship on Georgia taxpayers, schools, hospitals and law enforcement agencies. This new law will require Georgia businesses with more than 10 employees to register in the federal E-Verify online work authorization system, checking verification of new workers to be legally in the Untied States.

After signing the bill into state law, Governor Deal addressed reporters saying the bill will “uphold the rule of law, level the playing field for employers and protect the taxpayers”.

Throughout this year’s General Assembly session, the bill created strong debate on both sides of the issue. State Representative Matt Ramsey, R-Peachtree City, who is the bill’s primary sponsor, stated he understands “how important business is to our state” and the new law “represents our responsibility to watch the taxpayers’ bottom line, just as businesses watch their bottom lines”.

For more information on the new Georgia immigration law as it relates to your business, please contact 770.248.0401.

Social Media Policy: Protecting Companies from Pitfalls of Social Media

Social Media is here to stay and because of that companies today can either embrace it or get left behind.

People spend 700 billion minutes on Facebook alone every single month. Everybody is increasingly becoming more connected with each other than ever before. We live in a world where limitless information is at our fingertips and breaking news can happen in real time over a person's Twitter account.

Companies can no longer afford to put Social Media on the back burner or bury their heads in the sand with this issue. The hard part is a simple one size fits all does not even come close to fitting all when Social Media is involved. Every company must answer a few critical questions in order to get on the road to avoid common pitfalls.

First, is your company going to proactively address Social Media or are you going to wait until a controversy arises and then try your hand at Social Media?

How are you going to use Social Media? For brand recognition? To drive sales? Connect with clients, employees and/or prospects?

Who is responsible for maintaining the company's public image on Social Media?

Once these basic questions have been answered a company can then turn their attention towards creating a detailed Social Media Policy. As an addition to an effective Employee Handbook, a company's Social Media Policy should cover everything from the above questions to what is going to count as Social Media for you company (Facebook, Twitter, Blogs, Photo Sharing sites, Wikis, etc.) to confidential information to monitoring systems to harassment and much more.

An effective Social Media Policy can help reduce the risk of Social Media, giving a company a solid footing to avoid common pitfalls that can have a devastating and costly effect. If you have any questions or for help writing your Social Media Policy today, contact Todd Weyandt at 770.248.0401 or todd@laihr.com.

Are You Prepared for the Demands of Social Media on Companies Today?

Social Media is growing in popularity each day, but so are the increases in corporate vulnerabilities. There is no doubt, when harnessed correctly, social networking can be a powerful weapon in any company's arsenal. The Catch 22 is that same weapon can blow up in the company's face just as easily.

Fear not, there are ways to minimize the risk while increasing the effectiveness of Social Media.

Come learn successful Social Media strategies at a Complimentary Lunch-n-Learn
sponsored by Lowden & Associates, Inc.

Wednesday May 4, 2011
11:30 a.m. to 1:00 p.m.

LAI Headquarters
3105 Medlock Bridge Road
Norcross, GA 30071

SPACE IS LIMITED, RESERVE TODAY
Contact Todd Weyandt
todd@laihr.com
770.248.0401

Are You Letting Restrictive Covenants Paralyze Your Company?

Restrictive covenants can bring up many diverse opinions due to several sides of the issue. Do you believe in the employer's legitimate interests, an employee's right to earn a living, free trade, business competition, protection of business information, training and customer relationships? And that is only a few of many perspectives.

Historically, the state of Georgia has taken an all or nothing enforcement approach or strict scrutiny. However, after the November 2010 elections, Georgia has adopted a new constitutional amendment making the state friendlier to employers.

The stated purpose of the new Act is to "bring Georgia in line with the overwhelming majority of other states and to establish a rule of reasonableness and legal analysis of these arguments". The major goals are to decrease the amount of litigation, provide more predictable enforcements and give employers greater protection.

There are many new changes and updates to the restrictive covenant laws. Now courts are permitted to modify individual provisions. Also, information can now remain protected as long as it stays confidential or a trade secret.

So, the real question is how do you set up restrictive covenants with employees and what type of restrictions are necessary for different employees. Taking a tiered approach is the most productive and practical method. Below is an example of a successful tiered restrictive covenant program.

- Group A: No competitive threat; secretaries and administrative personnel. Form non-disclosure and non-interference with employees.
- Group B: Worried about soliciting customers but not worried about competitive harm. Form non-disclosure, non-interference with employees and non-solicitation.
- Group C: Worried about competitive harm. Tailored non-compete combined with non-solicit and non-disclosure.

For more information on the new restrictive covenant laws or how the tiered approach, call 770.248.0401 today.

Stop 'Slacker Mindset'; Create Star Performers!

Slackers are not born, they are made. There is a societal bias that gears culture towards natural ability instead of hard work. Employers need to know the psychology of a slacker in order to identify them and in the end reform the slackers into star performers.

Those who have lived their whole life rewarded exclusively for their natural intelligence have a greater likelihood of being a slacker because they give up too quickly when things get hard. Many believe speed goes hand in hand with ability, if you truly excel at something you should not have to work hard at it. This assertion is far from reality, though managers tend to promote the idea by praising those who achieve effortlessly. The real truth is companies that reward natural intelligence and talents more than commitment and loyalty actually help breed slackers.

When talent alone is allowed to be king, even the most talented start to feel vulnerable, forcing the talented to resort to desperate measures in order to still look good. They will steer clear of tackling more challenging tasks in fear that it will show weakness. In the end, the ‘King Talent’ culture promotes lying and employees covering up mistakes, not fixing them.

Rewards should be based on passion, dedication, performance improvement, creative problem solving and hard work over natural talents. Managers need to focus more on praising the hard workers over the ‘ace’ worker who does the same thing well over and over.

Slackers become masters at managing expectations. By managing what a supervisor is expecting, they can keep up the impression a task takes longer and/or create red tape where none exists.

Knowledge based work and technology have only made this an easier feat to mask. With the technological ability to get work done without a higher level of effort employees can disguise slackerhood with greater ease. Managers must always adjust expectations with updated technology.

Companies should connect effort and performance to a valued reward; such as time off, incentive pay or stretch assignment. Poor job fit will create boredom and frustration causing the employee to withdrawal or give up most of the time.

There are two big factors that have a negative impact on employee productivity. The first is poor management and the second is no longer being motivated by the work. Human nature is to avoid frustration and replace it with tasks that are more rewarding to the person, not the organization.

It is up to managers to keep the excitement and make sure praise is being placed where it is truly deserved. Celebrate hard work and dedication and you will be well on your way to a Slacker-Free workplace.

Could Your Unpaid Interns Lead to Costly Risks?

Difficult economies can create the desire to save on labor costs. One of the solutions some companies are using is unpaid internships. This can be an appealing idea for those organizations struggling to afford employees to keep up with their demand. However, before starting an unpaid internship program a company needs to ask, is the reward worth the risk?

Unpaid interns must meet specific requirements in order to avoid governmental challenges. Training of the interns is the key to protecting the programs. A company can increase the likelihood of a ‘training’ status if the interns gains skills that can be used in multiple settings, not just the specific company. The intern should be allowed to observe aspects of employer’s day-to-day operations, such as job shadowing. There should not be a need for the intern to perform critical services the entire time on the job.

An unpaid intern must never be a supervisor of another employee and/or intern. If an unpaid internship is properly done, it should actually be a drain on employers due to education and training time, since one is not getting production out of it.

There are six standards set of by the U.S. Department of Labor’s Wage and Hour Division to determine if the intern is a ‘trainee’ or an ‘employee’ with compliance to the Fair Labor Standards Act.

1) The training, even though it includes actual operation of the facilities of the employer, is similar to what would be given in a vocational school or educational instruction.
2) The training is for the benefit of the trainee.
3) The trainees do not displace regular employees, but work under their close observation.
4) The employer that provides the training derives no immediate advantage from the activities of the trainees, and on occasion the employer’s operations may actually be impeded.
5) The trainees are not necessarily entitled to a job at the conclusion of the training period.
6) The employer and the trainees understand that the trainees are not entitled to wages for the time spent in training.

All of the above must be met in order to have ‘trainee’ status which would allow for an unpaid intern.

'Exempt' from Overtime Does Not Mean Exempt from Accountability

Have you ever had an employee who thought being ‘exempt’ from overtime meant they could come and go as they pleased, working as much or as little as they wanted?

It is tempting to switch that employee to an hourly compensation plan, but try and restrain. This solution can cause more problems than it would solve, including the loss of exempt status.

First and foremost, for an employee to be considered 'exempt from overtime pay' the position must meet a job duties and salary basis test. According to the U.S. Department of Labor Fact Sheet No. 17G, “Being paid on a ‘salary basis’ means an employee regularly receives a predetermined amount of compensation each pay period on a weekly, or less frequently, basis. The predetermined amount cannot be reduced because of variations in the quality or quantity of the employee’s work.”

Employers do have the right to issue various ‘disciplinary actions’ such as unpaid suspensions for a violation of serious workplace misconduct, however the U. S. Department of Labor maintains this must not be for performance or attendance issues.

Do not fear there are choices for employers. First, does the job absolutely demand that it take place on a rigid timetable? If not, giving some flexible arrangements could be a great way to increase desired productivity while raising morale.

Make a habit of reviewing company policies. Do the established practices allow for some flex scheduling? Telecommuting can be an appealing option for employees with commuting problems.

Always check to see if your employees have a pre-arranged religious or Americans with Disabilities Act accommodations. That may help to explain some scheduling conflicts.

Most importantly, an ‘exempt’ status does not mean the employee is exempt from being held accountable. Your company policies apply to all employees no matter the status.

Legislative Update- Discrimination Law Ruling

The United States Supreme Court came to a ruling on March 1, 2011, which declared an employer can be liable for the discriminatory motives of a supervisor who influences but does not make the ultimate employment decision.

The high court toughened the standard by which an employer may be held liable for discrimination based on a subordinate supervisor’s discriminatory view even if the ultimate decision maker is admittedly unbiased.

Justice Scalia delivered the decision that “if a supervisor performs an act motivated by antimilitary animus that is intended by the supervisor to cause an adverse employment action, and if that act is proximate cause of the ultimate employment action, then the employer is liable under USERRA.” Justices Roberts, Kennedy, Ginsburg, Breyer and Sotomayor also joined the decision.

The Court decided to decline a blanket rule immunizing an employer who performs an independent investigation of the conduct that led to the adverse employment action. However, they gave a very limited exception to liability where subordinate bias is at play.

This decision creates a new layer of liability for employers in USERRA and other type of discriminatory claims. The employer may be liable for discrimination if the biased motives of a supervisor caused a chain of events that led to the adverse employment action, even if it was not from the ultimate decision maker.

Employers must take a closer look at an employee’s prior conduct and corrective action issued before an adverse employment action is taken. The company should create an independent investigation to confirm there is legitimate and non-discriminatory reasons before an adverse employment action is taken.

Staub v. Proctor Hospital
Vincent Staub was in the Army Reserves and worked at Proctor Hospital as an angiography technologist. His two superiors Michael Korenchuk and Janice Mulally began to set up timing obstacles that would conflict with his Army Reserve responsibilities and punish him for not meeting them.

Shortly after Staub received his order to report for “solider readiness processing”, a precursor to active deployment, Mulally gave him a written warning for disregarding his job duties. Staub was instructed to report when he had completed his angiographic duties and did not have any patients and was to remain in the general diagnostic area unless he told Korenchuk or Mulally where he was going and why.

A few months later, Staub was finished with his work and tried to go to lunch. He was unable to find Korenchuk in his office so he left a voicemail message. When Staub returned 30 minutes later, Korenchuk escorted him to the Vice President of Human Resources, Linda Buck, where she proceeded to terminate him.

Prior to deciding to terminate Staub, Buck reviewed his personnel file. She also relied on input from Korenchuk but the ultimate decision was hers. Staub’s military involvement played no role in Buck’s decision.

Where Are The Women?

Women in business have made big strides in the last several decades, but there is much work to be done. A recent study by Mercer, a New York based benefits firm, found that 70% of American corporations do not have a clear strategy for developing female leaders.

A major obstacle for women who seek to advance into leadership positions within their company is a lack of executive sponsors. The movement for greater numbers in women leadership posts must come from the top down. Current executives must always allow themselves to keep their options open.

When reviewing programs to help women advance in the executive ranks, the solutions too often do not deal with the problem. Always keep in mind that leadership development is a multi-staged process, no matter who the person is.

Development plans should always include various steps and programs along the way. Flexible work arrangements, coaching, mentoring, diversity sourcing and recruiting are viewed as some of the most effective in developing female leaders. The most important thing to do is stay open and be flexible in your plan.

Exhausted with Slackers? Create Star Performers!

Slackers. Nobody wants to be viewed as a Slacker, yet employees fall into that trap all too easily. In fact, 44% of employees admit they are not committed to perform even though they know their job, according to a recent Sibson Consulting Survey.

The vast majority of people would like to be considered productive. SO what is holding them back? There are several answers to this question, for example:
- They are frustrated with the lack of resources and/or support received.
- Upset by co-workers who slack with no consequences.
- Self-motivations are not in line with offered rewards.
- Low commitment to the organization.
- They do not fully understand what the job entails.

Have no fear, these employee slackers can be reformed into high performing, productive members of your company's team. The worst course of action is to do nothing. That is the foundation for this multi-part series on Creating Star Performers!

Stay tuned for the coming article on how to catch the slackers hiding in plain sight.

Are Your Social Media Manners Worthy of a ‘Like’?

Between ‘Tweets’, ‘Likes’ and name your other favorite thing to do on a social media site, workplace manners are not always what they use to be. In an age where over 500 million people can share their life on Facebook is there anything an employer can do to keep employees more focused on their work than on their News Feed?

The simple answer is yes and without going to extremes. Below are a few easy things for companies to start implementing today.

1) Set ground rules for social media usage from day 1.
2) Never scold an employee, instead coach them for success.
3) Set expectations early. New and existing supervisors alike need to be frank with expectations.
4) When an infraction is noticed, address it quickly and positively.
5) Make sure employees have as much guidance as possible on the standards.
6) Compare etiquette standards of the past to today’s situation. For example, nobody would make a personal phone call from a company phone but today people send personal text messages from a company cell phone.
7) Create parallels between other workplace no-nos and social media missteps.
8) When in doubt, it is better to advise employees on the side of formality.

In the end, make sure you have your social media policy and expectations written down in your regularly update Employee Handbook. Stay open and upfront and you just might get a ‘Like’.

Legislative Update: Healthcare Law Ruled Unconstitutional by Federal Judge

Yesterday, U.S. District Judge Roger Vinson of the Northern District of Florida declared that the healthcare law passed last year is unconstitutional. The ruling came in the most closely watched of the challenges to the law.

Vinson ruled the key provision of the PPACA’s “individual mandate” which requires Americans to buy health insurance by 2014 unconstitutional and in violation of the Commerce Clause, therefore voiding the entire act.

The U.S. Justice Department has already vowed to appeal the ruling in the 11th Circuit Court of Appeals. The Supreme Court is expected to take the case as soon as later in the year, though there has been no indication yet.

The states bringing suit in the appeal are Alabama, Alaska, Arizona, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Louisiana, Maine, Michigan, Mississippi, Nebraska, Nevada, North Dakota, Ohio, Pennsylvania, South Carolina, South Dakota, Texas, Utah, Washington, Wisconsin and Wyoming. Virginia and Oklahoma filed separate challenges to the law along with other groups and individuals in opposition.

Are You Prepared for the DOL?

According to a Department of Labor report, "Employers and others in the department's regulated communities must understand that the burden is on them to obey the law, not on DOL to catch them violating the law. This principle is at the heart of this new DOL workers' protection strategy. DOL is going to replace 'catch me if you can' with Plan / Prevent / Protect."

Are you current and up to date on all of the processes and procedures that you should be?

- Personnel Files
- Worker's Compensation Files
- OSHA 300 Reporting Records
- I-9 Files
- Benefit Files & Compliance
- COBRA Process
- Employee Handbooks
- Organizational Chart
- Payroll Recordkeeping
- Job Descriptions
- Termination Practices
- FLSA Compliance
- Employee Notification Posters

Call Lowden and Associates, Inc. to receive a HR Audit today! 770.248.0401

Healthy Ethical Corporate Culture Boosts Bottom Line

A recent study is turning the old expression of nice guys finishing last on its head. The Corporate Executive Board surveyed about 500,000 employees in over 85 countries and concluded that corporate integrity has a verifiable impact on a company’s overall performance.

Companies where employees feel comfortable to speak out about concerns of misconduct without fear of persecution are found to have a stronger ethical culture than others. The fear of retaliation in companies prevents an ethical culture from taking root and growing that would allow the business from reaping rewards.

Corporate leaders that stress open communications are able to deliver shareholder returns that average five times higher than their competitors. Also, high-integrity cultured companies are 67 percent less likely to have instances of misconduct such as accounting irregularities and insider trading.

The study measured ethical culture by asking employees how comfortable they feel to discuss possible misconduct with managers along with do employees think company officials will respond to unethical behavior.

To prevent misconduct in a company, leaders must open channels of communications between employees and build trust in leadership.

Start taking steps now on the high road by having an updated employee handbook, effective and open channels of communication, management training, etc. It is never too late to walk on the corporate high road while boosting your bottom line.

Play-or-Pay Health Care?

Health care strategizing is taking on new dimensions due to the Patient Protection and Affordable Care Act that was signed into law in March of 2010. Employers are facing tough and complex decisions and must decide before state health insurance exchanges are up and running in 2014.

By 2014, employers could suffer from a range of taxes and penalties based upon the level of coverage they are providing to employees, forcing employers to decide if they want to play or pay.

Health care benefits will have a profound impact on talent acquisition and employee retention strategies, the culture of the organization and the employers’ competitiveness. Employers will have to analyze different approaches to minimize the impact on their company.

One option for employers is to make benefits less rich in order to maintain the total value under the threshold for excise tax. Another choice for employers is deciding to make minimal, if any, increases in their employees’ share of health care costs thereby keeping their plans in “grandfather” status or significantly raising the employee cost sharing and losing the “grandfather” status.

By maintaining “grandfather” status, employers could avoid certain health care reform mandates. According to a Mercer Study, only 53 percent of employers who responded are likely to keep their “grandfather” status for all of their plans.

For 90 to 95 percent of companies, the play-or-pay choice consists of complex mathematical debating to decide if offering health benefits is less expensive than the taxes and penalties.

Every employer must start working through the issue today, in order to be prepared when the Patient Protection and Affordable Care Act goes into full effect.