Safe Harbors

Q: What is a safe harbor?

A: The literal meaning of a “safe harbor” is a harbor in which ships are protected from weather or attack by the natural shape and features of the harbor or by manmade barriers. It has come to be used for a set of rules that protect an employer from litigation when all the conditions and procedures are implemented and followed in a good faith effort to comply. Safe harbors are created by being written into laws and regulations. Court decisions may also create safe harbors. Court decisions are, however, more easily changed by other decisions or new laws and regulations.

Q: What are some examples of safe harbors?

A: Most of the better known safe harbors in employment law are in federal law. Here are a few examples.

• Social Security No-Match – A latest “safe harbor” appears in the rules proposed by United States Immigration and Customs Enforcement on June 14, 2006, which set forth a new procedure for employers in responding to a no-match letter from the Social Security Administration. The safe-harbor procedure includes attempting to resolve the no-match and, if it cannot be resolved within 60 days, re-verifying the employee’s identity and employment authorization through a modified I-9 process. Following this procedure will protect the employer from being accused of having constructive knowledge that the employee was an illegal alien if it is later learned that the employee is indeed an illegal alien.
• Improper salary deductions - In the federal regulations that define what a salary is, there is a “safe harbor” for employers when they make improper deductions from a salary. The safe harbor requires that they: 1) have a clearly written policy prohibiting improper deductions and a complaint mechanism for employees who believe an improper deduction has been made; 2) reimburse an employee for any improper deduction; and, 3) make a good faith effort to comply in future. In other words, if these three conditions are met, no action can be taken against an employer making an improper deduction from salary.
• Sexual harassment - The Supreme Court has given employers a “safe harbor,” in a sense, in sexual harassment cases brought under Title VII of the Civil Rights Act. The safe harbor consists of providing effective training and establishing preventive measures and creating complaint procedures. They must be proactive and responsive in the process.

Many of the safe harbors affecting employers are contained in complicated regulations of benefit plans. There are safe harbors in the Consolidated Omnibus Budget Reconciliation Act (COBRA), the Health Insurance Portability and Accountability Act (HIPAA), the Americans with Disabilities Act (ADA) and section 401(k) of the Internal Revenue Code.

Further information: Information about Transportation Fringe Benefits is contained in IRS Publication 15-B, “Employer Tax Guide to Fringe Benefits”, and may be found at www.irs.gov. On the Federal Transit Administration (FTA) website, click here for further guidance. Also contact your local transit agency to determine if they have a program to sell transit vouchers or passes to employers for distribution to employees.

Employee Assistance Programs can Ease Workplace Stress

In today’s high-stress world, Employee Assistance Programs (EAPs) are becoming increasingly popular with employers as a cost-effective addition to their existing employee benefits packages.

Can your organization benefit from an EAP?
Consider the following:

• Are personal or interpersonal employee issues negatively impacting productivity and/or morale?
• Has a recent trauma affected the stability of the work environment?
• Are there existing safety issues for the organization, management or specific employees?
• Do you have employees in safety sensitive positions that are subject to random drug tests?
• Do you have employees out on Workers’ Compensation/stress leave with no return to work plan?

What an EAP provides
If you answered ‘yes’ to one or more of the above, you may wish to consider looking into an Employee Assistance Program. An EAP provides a caring and confidential environment in which all employees and their family members may seek answers and support for personal or professional problems that may interfere with their daily lives at work, at home or in the community.

Ongoing EAP and case-by-case assistance
Whether the answer is ongoing individual employee counseling, short-term group/individual counseling, critical incident stress de-briefing, substance use awareness, stress management, conflict management, work-life balance seminars, return to work program facilitation, etc., the addition of an ongoing EAP or the introduction of case-by case EAP assistance can help ease the stress in your workplace and create a healthier and more productive environment. With an EAP, needed support is just a phone call away.

For more information on EAP services through Employers Group’s partner, Employee Support Systems Company (ESSCo), please contact Katherin Scott at (213) 765-3949.

HRIS and Payroll Solutions
Take control of your workforce with increased productivity, data accuracy, communication and reporting capabilities by using an integrated, single point of entry solution!

Whether your business approach is to own and maintain in-house HR/payroll software, or to have a web-based and hosted payroll solution, Employers Group and our preferred HRIS and payroll solutions partners can help you choose and implement the best option. Our partners work with two of the leading HRIS systems currently available, the in-house Sage Software solution (Abra) and the web-based and hosted solution, powered by Ultimate Software.

According to Gartner, the leading provider of research and analysis on the global information technology industry, both Sage and Ultimate received top rankings. Our partners also work with time and attendance solutions that include various means of capturing time.

Abra by Sage Software (in-house solution)
Through our preferred Abra business partner, People ROA, Employers Group offers Abra by Sage Software as a means of increasing control in one integrated solution that you own and maintain. Implemented as a whole, Abra Suite handles all of your HR and payroll needs in one seamlessly integrated database. Modules are available for purchase individually and offer the flexibility for adding to your system as your organization grows.

Modules include:

• Abra Human Resources
• Abra Attendance
• Abra Benefits Enrollment
• Abra Employee Self-Service
• Abra Train
• Abra Alerts
• Abra Payroll
• Abra Recruiting
• Abra OrgPlus

People ROA is a Certified Business Partner with Sage Software. They focus exclusively on Human Resource department needs and provide software, software consulting, implementation and training.

Clear HR and Clear Pay (web-based HRIS and payroll service)
Through our preferred web-based HRIS and payroll services partner, RSM McGladrey Employer Services (RSMES), Employers Group offers the best technology available from Ultimate to power a complete web-based and hosted solution – in Clear HR and Clear Pay. Together, Clear HR and Clear Pay provide an HRIS web portal with Manager and Employee Self Service functionality and a fully hosted payroll processing service.

Benefits include:

• An integrated HR Information System and Web Portal for secure Internet access to workforce data, 24/7 with a high speed connection
• A fully hosted Internet payroll service bureau reduces IT capital expenditure and internal resources
• Manager and Employee self service functionality automates many administrative processes, freeing up time to focus on strategic initiatives and increase employee service levels
• Integration with benefits data further automates routine tasks
• Access to numerous reports and business analytics provides the crucial information for making smart decisions

RSMES is part of RSM McGladrey Business Services, an H&R Block wholly owned subsidiary providing accounting, tax, consulting and professional services. For more information on HRIS and payroll solutions offered through Employers Group, please contact Katherin Scott at 213.765.3949.

Books to Lead By

In today's workplace, trust is more important than ever. Through real life examples and highly practical tips, tools, and exercises, Dennis S. Reina Ph.D. and Michelle L. Reina Ph.D., authors of Trust & Betrayal in the Workplace, help you create a work environment where trust grows so that people feel good about what they do, relationships are energized, and productivity and profits accelerate.
Price: Member - $15.25
Non-Member - $16.95

Using the familiar story of the six blind men trying to describe an elephant to each other as a metaphor, in The Blind Men and the Elephant, author David Schmaltz brilliantly identifies the true root cause of the difficulties in project work: "incoherence" (the inability of a group of people to make common meaning from their common experience). He details a set of simple techniques that anyone can use to increase a project's coherence.
Price: Member - $17.00
Non-Member - $18.95

Flood, fire, hurricane, earthquake, workplace violence, bombings, even the arrest or sudden death of the CEO—sooner or later, most organizations will face some sort of disaster. In Leading People Through Disasters, authors Kathryn Mckee and Liz Guthridge break new ground in disaster-recovery by focusing on supporting the people who keep the business running in times of crisis.
Price: Member - $17.95
Non-Member - $19.95

In Telling Training's Story, author Robert Brinkerhoff offers a simple, compelling way of evaluating training's impact: The Success Case Method (SCM). Based on careful analysis of participants' first-person accounts of their experiences in a training initiative, SCM has been proven robust enough to withstand scrutiny from both a research and a business perspective, and will not choke real world practitioners and their clients with cumbersome methods and arcane statistical gyrations.
Price: Member - $26.95
Non-Member - $29.95

These books and many more are available through the EG Store at discounted member rates. Or you may call our Member Service Center at 800-748-8484 to speak with a representative.