Employers Group: Email Extra

May 2007

Featured Products
Navigating the “Meal and Rest Period” Maze

Training News
Harassment Prevention Training

Lunch 'n Learn
Upcoming Lunch 'n Learns

Featured Services
You (and your employees) Can Stave Off Osteoporosis!

FAQ's
UI Fund Forecast

Research
Retain and Motivate your Key Company Leaders through a Market Competitive Compensation Plan!

Feature Article
You can Avoid Cat’s Paw Rulings with Proper Investigations

Special Announcements
Meal & Rest Period CA High Court Decision

Member Appreciation Breakfasts

May/June 2007

Plan ahead for July 31st
Form 5500 filing

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Meal & Rest Period CA High Court Decision
A Breakfast with Richard Simmons
In the most important Employment Law case of the year, Murphy v. Kenneth Cole Productions, April 16, 2007, the California Supreme Court held thats...{Read More}

Member Appreciation Breakfasts
In 2007, Employers Group is hosting member appreciation breakfasts throughout the state. These sessions give members the opportunity to network, meet Employers Group staff and receive information on a current...{Read More}

You can Avoid Cat’s Paw Rulings with Proper Investigations
Recently, we have been hearing and reading a lot about “Cat’s Paw” and Coca Cola. In recap, there has been a lot of discussion in the courts as to whether...{Read More}

Retain and Motivate your Key Company Leaders through a Market Competitive Compensation Plan!
The 2007 Supervisory & Management Compensation Survey is available for pre-order! The results of the survey will guarantee you’re well armed with current compensation data to help you...{Read More}

UI Fund Forecast
Q: What is the latest Unemployment Insurance fund forecast?
A: The following are highlights from the Employment Development Department’s UI fund forecast...{Read More}

You (and your employees) Can Stave Off Osteoporosis!
Like the trunk and branches of a tree that decide its size and shape, your bones give form to your body. They also protect your organs...{Read More}

Upcoming Lunch 'n Learns
Lunch ‘n Learns are online events geared for you and your HR/supervisory staff to stay ahead of the curve. Sessions are held via Webinar from 12:15 to 1:15 p.m. Get the training you need...{Read More}

Harassment Prevention Training
Have you done yours yet?
If you conducted your mandatory AB1825 harassment training in 2005, you must provide this training again to your supervisory employees by the...{Read More}

Navigating the “Meal and Rest Period” Maze
Richard Simmons book is now available!
The meal and rest period rules in California are some of the most complicated in the nation. Efforts by California legislators to address all parties' interests...{Read More}

Capacity Expanded for this Event
You Still Have Time to Register!

Meal & Rest Period CA High Court Decision
A Breakfast with Richard Simmons

In the most important Employment Law case of the year, Murphy v. Kenneth Cole Productions, April 16, 2007, the California Supreme Court held that the “additional hour of pay” for employees missing meal and rest periods is a wage and not a penalty, thus falling under the three-year statute of limitations instead of the one-year statute.

Please join us and guest speaker Richard J. Simmons, Partner with Sheppard, Mullin, Richter & Hampton LLP - Los Angeles, for an insightful look at the landmark ruling and its wide ranging punitive effects on payroll administration and other practices. The Court’s ruling is unfavorable for businesses and could be quite costly for uninformed California employers.

Date:	Wednesday, May 23, 2007
Time:	8:00am – 9:15am Registration begins at 7:30am
Location:	City Club on Bunker 333 South Grand Avenue, Suite 5450 Wells Fargo Center Los Angeles, CA 90071
Phone:	213.620.9662 (City Club)
Cost:	$45.00 Members $55.00 Non-Members (Includes continental breakfast and parking)

Click here to register
or call 800.748.8484 (option 3)

During this presentation you will:

Hear how mistakes made in exemption status classification now increase employers potential liability for millions of dollars in back pay and meal and rest period sanctions.
Learn why The California Supreme Court’s ruling opens up a longer period for employee redress from one year to three or four years. Expect more class action litigation and Labor Commissioner audits.
Understand how specific, strategic planning and decision making can protect you, going forward, from meal and rest period liabilities. You will learn these strategies directly from the recognized authority on the subject, Richard J. Simmons, Esq.

You can now purchase the latest edition of Richard Simmons' two related books, both updated for this important court decision:

California's Meal and Rest Period Rules: Practical Strategies for Compliance 2nd Edition.
Wage and Hour Manual for California Employers 12th Edition.

Member Appreciation Breakfasts

In 2007, Employers Group is hosting member appreciation breakfasts throughout the state. These sessions give members the opportunity to network, meet Employers Group staff and receive information on a current or emerging HR issue. The sessions are free of charge and early registration is recommended.

Save the Date!

EG Orange County Office	June 7
North Los Angeles County	June 21

For more information, please contact training@employersgroup.com.

You can Avoid Cat’s Paw Rulings with
Proper Investigations

Recently, we have been hearing and reading a lot about “Cat’s Paw” and Coca Cola. In recap, there has been a lot of discussion in the courts as to whether an action taken by Coca Cola regarding the termination of an employee inadvertently was an act of discrimination.

What is Cat’s Paw?
The term refers to a mythological tale about a monkey who talks a cat into using his paws to pull chestnuts from a fire. Once the chestnuts were removed, the monkey quickly ate them sharing nothing of value with the cat whose paws were burnt.

What it means to California Labor Law
In Coca Cola case, a supervisor made a request to a superior that his employee be terminated for insubordination. The superior person reviewing the evidence did just that, but the employee claimed that he was actually terminated because the original supervisor had a bias towards black employees.

Always investigate claims
The simple answer is you have to do a proper investigation. This means that you must, in a non-prejudicial, objective manner, interview various sources prior to making your decision. This also means interviewing the employee being disciplined.

Many companies have made the false assumption that by simply taking the termination or disciplinary action decisions out of the local management team hands, and placing it in a third parties hand, they have removed the bias. But the courts say that if you are only fed information from one source, and that source is biased, they could be supplying you with only discriminating evidence. It is the investigator's job to make sure that all sides have been heard PRIOR to making a decision about terminating an individual.

Next, the decision maker needs to also look within. Ten years ago we referred to this issue as “Halos and Horns.” All of us have some bias and prejudice. In order to not act on those beliefs, we have to acknowledge them and watch ourselves to make sure they are not blurring our own vision.

Types of biases
The prejudice does not have to be race, it can be:

University you attended (example USC vs. UCLA)
Your home state or country of origin
Your accent (yankee vs. southern)
Dog versus Cat person
Children or No Children
Age
Religion

How to avoid biases
Unless we realize we may have a bias, we will not watch ourselves. We have to be are fair to all parties, regardless of our opinion about a “poor choice,” for example, as to a university.

Next, take the time to have your decision reviewed by another before taking action. You need to make sure you have done similar actions towards others in similar situations. Are you willing to carry this action out with others in the future? Do you have adequate facts to support your ruling or is your ruling based on mostly heresy?

Lastly, if this is a case where you could be partial to one side or another, state so up front and be willing to step out of the picture. It is better to protect the company and not be the point person. If a bias exists, act as a support figure and merely assist when asked in the investigation. When in doubt, have someone from the outside conduct the investigation.

A little honesty and a proper investigation can save a lot in legal fees and time in court.

Note: This article is by D. Renée Christensen, Ph.D., an Employers Group’s preferred provider of organizational development and critical incident stress debriefings, as well as diverse training topics ranging from leadership development to substance abuse to harassment prevention. For information about her services, call us at 800.748.8484 and ask for your Client Services Manager.

Retain and Motivate your Key Company Leaders through
a Market Competitive Compensation Plan!

The 2007 Supervisory & Management Compensation Survey is Available NOW for Pre-Order!

The 2007 Supervisory & Management Compensation Survey is available for pre-order! The results of the survey will guarantee you’re well armed with current compensation data to help you position your managers in today’s competitive market!

PLUS! As an EG member, you’ll save 5% off the complete price! Pre-order the Book and CD-ROM for $118 (Originally $125)!

About the 2007 Supervisory & Management Survey
This survey has the data you need to gauge current market salaries for supervisors, managers, and director level positions. You will find the most current pay levels encompassing over 125 exempt Supervisory and Middle Management classifications in marketing, finance, HR, customer service (call centers), engineering, technical services, and research. Each position has four different reporting levels corresponding to the type of subordinate reporting to that particular position.

This report is extremely popular with our member companies because it not only provides data by industry and employment size, it also presents data breaks for most labor markets including California, San Francisco Bay Area, Metro Los Angeles, Orange County, Inland Empire, and San Diego County. The survey covers base, bonus, and salary structures. Geographic differentials and aging/maturing formulas are also included.

Includes:

Finance & Accounting
Human Resources
Administrative & Office Service
Marketing & Sales Support
Call Center
Engineering & Technical

Material, Warehouse & Mfg
Production Assembly & Processing
Skilled Craft
Inspection
Maintenance
Production Mgmt.

Survey Scope:

Data effective 3/01/07
Data by 300+ CA firms

Data for 140+ Classifications
Data displayed by Industry, Level, and Geographic Location

PREORDER TODAY!
Please Note: Reports will be mailed by late June 2007.

Hurry Offer Expires May 25th!

Employers Group has the experience and resources to provide custom survey services for member organizations. Whether you need to market price one or many jobs, we offer a wide range of services geared towards one goal: Get the information you need to properly align your compensation strategy with current market levels.

For more information or questions, please email surveys@employersgroup.com.

UI Fund Forecast

Q: What is the latest Unemployment Insurance fund forecast?

A: The following are highlights from the Employment Development Department’s UI fund forecast:

Tax rated employers are projected to remain on contribution rate schedule “F” plus a 15 percent surcharge in 2008.
Average contribution rate for 2005 was 4.6% in 2006 it decreased to 4.40% and in 2007 it is projected to decreased to 4.27%
Average weekly benefit amount projected for 2007 is $291
In 2006 the average duration of weeks collecting UI benefits was 16.6. It is projected to increase in 2007 to 17.0 and in 2008 to 17.3

You (and your employees) Can Stave Off Osteoporosis

Like the trunk and branches of a tree that decide its size and shape, your bones give form to your body. They also protect your organs and support your muscles, helping you move through life.

You can take care of your bones with proper diet and exercise, as well as with the right vitamin and mineral supplements. When you do, you keep your skeleton strong and healthy, heading off osteoporosis and fractures.

Each day your body exchanges calcium between your bones and your blood stream. But by your late 20s, you've reached the peak of your bone mass, which begins to ebb slowly in your 30s as more bone tissue is lost than restored. In time, this could lead to osteoporosis, a condition marked by weak bone and caused by a loss of bone mass, as well as by a change in bone structure, according to the American College of Rheumatology (ACR).

About 10 million Americans have osteoporosis, and 80 percent of them are women, the National Osteoporosis Foundation says. About 34 million more have below-normal bone density that has not reached the level of osteoporosis. Women are more likely than men to develop osteoporosis, in part because men have larger, stronger bones.

Risk factors
Both men and women older than 50 are at the greatest risk for developing osteoporosis, the ACR says. One in two women and one in six men in this age group will fracture a bone because of osteoporosis. Ethnicity also plays a role: People who are white or Asian are more likely to develop osteoporosis than people who are Hispanic or African American.

Besides older age and ethnic background, other risk factors increase your chance of developing osteoporosis, according to the ACR:

Small bone structure
Family history of osteoporosis
Previous fracture, especially after age 50
Being postmenopausal
Anorexia nervosa
Cigarette smoking
Alcohol abuse
Not getting adequate amount of calcium and vitamin D
Sedentary lifestyle
Certain medications, including glucocorticoids, thyroid, hormone replacement and epilepsy drugs

Diagnosing osteoporosis
If your health care provider suspects that you have osteoporosis, a simple, painless test to measure bone mineral density can confirm it. The test is called dual energy X-ray absorptiometry, or DEXA. If you are diagnosed with osteoporosis, a number of medications are available to treat it, including bisphosphonates and calcitonin. Talk to your provider about the type of treatment that's best for you.

Preventing osteoporosis
You can take steps to help prevent osteoporosis:

Get 1,000 to 1,500 mg of calcium each day
Get 400 to 800 international units of vitamin D each day
Quit smoking
Don't overindulge in alcohol
Talk to your health care provider about medical conditions or medications you take that could put you at risk for osteoporosis.

Exercises to build your bones
Any weight-bearing activity helps build bones. But weightlifting does the most to prevent osteoporosis over time "because it increases your strength and muscle mass, as well as bone density," says Timothy G. Lohman, Ph.D., exercise physiology core director at Arizona Health Sciences Center. He recommends that you:

Talk with your doctor. Do this before you start any exercise program. Ask about consulting a physical therapist or trainer to help you make the most of your workout.
Schedule 30 minutes a day, two to three times a week. Anything less won't work your bones hard enough. But don't overdo it: Ask your doctor about your workout's intensity.
Warm up. Do light aerobic exercises and easy stretches for seven to 10 minutes before your workout to avoid injury.
Focus on the hip, spine and lower back. These are the main fracture sites. "The leg press, squats and lunges are all good."
Do fewer reps at heavier weights. "If you can barely do two sets of six to eight reps, you're at the right weight," says Dr. Lohman. He suggests 20 to 25 minutes of weight training.
Gradually add to that weight. Determine the highest number of reps you can do or the most weight you can lift. Then shoot for 70 to 80 percent of that maximum capability.
Do cardio weight-bearing exercises. To head off osteoporosis, row, bike, hike or dance for at least seven to 10 minutes of your workout. Double that if you want an aerobic workout.
Cool down. Repeat your warm-up routine for about five minutes, to shift your body back to relative inactivity.

Access to valuable information on Health, Finance, Legal, Stress, Personal Growth and Small Business issues is available to you and your employees via Employers Group’s preferred partner for Employee Assistance Programs (EAPs), Employee Support Systems Company (ESSCo). ESSCo is committed to providing EAP programs and support, including useful and up-to-date content for your and your employees’ needs at reduced member rates.

For more information on ESSCo’s EAP programs and additional employee assistance resources, please contact Katherin Scott at kscott@employersgroup.com.

Upcoming Lunch ‘n Learns

Lunch ‘n Learns are online events geared for you and your HR/supervisory staff to stay ahead of the curve. Sessions are held via Webinar from 12:15 to 1:15 p.m. Get the training you need during your lunch hour in the comfort of your office space.

Law School 101 for HR - June 12, 2007*
12:15pm – 1:15pm

What is the difference between a law and a regulation? Why does it matter? What is the significance, if any, of an opinion letter published by a governmental agency? When the court rules on a matter, what does that mean for my workplace? How is the holding in a case different, in practical terms, from, say, a statute? And seriously, what is a tort?

In a compliance-laden discipline such as HR, we all eventually have to revisit questions most of us haven't thought about since high school civics, not to mention, learn a few additional concepts too detailed to retain our interests back then. In this lunch 'n learn, we hope to answer the above-referenced questions and, more importantly, address why the answers are particularly relevant to you in your day-to-day compliance obligations as HR professionals.

*This is a FREE event with paid membership. One connection per membership. To register for this event, please contact Member Services at 800.748.8484 (option 3).

Harassment Prevention Training
Have you done yours yet?

If you conducted your mandatory AB1825 harassment training in 2005, you must provide this training again to your supervisory employees by the end of this year – and the year is already half over! Don’t be caught “out of compliance” by having a non-qualified trainer provide training or letting time fly by. Employers Group can help by offering several harassment solutions for you:

On-site, Employer-Specific Training. Employers Group’s qualified trainers will deliver a 3-hour AB1825-compliant training program geared specifically to your company and its employees. We can incorporate your company’s policy into the program or review a sample compliance policy. Additionally, we include video-based scenarios that depict what harassment can look like, how to respond to it and, most importantly, how to prevent it.

Programs are available for supervisors and for employees in both Spanish and English.

Public Courses. If you only have a few employees that need training, have recently hired supervisors, or promoted employees to supervisor within the last six months, this is the option for you. Our programs are held conveniently throughout California enabling employers with multiple facilities to send employees to a common training program. During the program, a sample compliant policy is reviewed.

June 6 Costa Mesa 9-Noon

June 14 Ontario 9-Noon

July 13 Gardena 9-Noon

July 13 Oakland 9-Noon

Anytime Express Online On Demand

Employee level courses are also available during the same dates and locations; however, employees only attend the first two hours.

Online Training. If your employees are dispersed over several locations or it would be overly burdensome to try to schedule on-site training, Employers Group offers comprehensive, interactive, and AB1825-compliant online training. Our program incorporates your company’s logo and policy into the program itself and allows administrators the ultimate control and flexibility in assigning courses, viewing reports and sending reminder emails. In addition, receive access to all of our online training content at no additional fee.

As a value-added bonus: All programs are highly interactive and include an “ask the instructor” component that enables trainees to ask questions during or after the training program to ensure trainees understand training content.

Need more information or unsure if AB1825 applies to you?

Contact your Client Services Manager
Call 800.748.8484 and ask to speak to your Client Services Manager.
Email: training@employersgroup.com.

Navigating the “Meal and Rest Period” Maze
Richard Simmons book is now available!

The meal and rest period rules in California are some of the most complicated in the nation. Efforts by California legislators to address all parties' interests (especially those of pro-labor Sacramento) over the years has lead to a complex maze of interlocking rules and standards.

The laws governing meal and rest periods have become so cumbersome and disjointed that you now need a labor-law expert just to decipher the first level regulations. That is, of course, not counting all the subtleties and miscalculation pitfalls strewn throughout this hot-bed realm of California law. It’s almost to the point that you have to consult an attorney before making each and every meal and rest period decision.

The good news
Not only does Employers Group work with an attorney who specializes in this California labor code area, but he is also one of California’s leading experts on the subject and has worked directly with the legislature on numerous commissions to craft this and other laws. And you can have his latest thoughts right on your desk.

Richard Simmons new book
In his book “California's Meal and Rest Period Rules: Proactive Strategies for Compliance” attorney Richard J. Simmons examines California's unique rules and the new California Supreme Court decision that interprets them. The new sanctions created for violations of these rules have led to numerous cases, including an epidemic of class action lawsuits. One highly publicized case resulted in a jury verdict in excess of $170 million against a single employer.

California imposes unmatched requirements and potential liabilities for employers. This publication is designed to assist employers to understand and address their legal obligations under state law. It also offers proactive strategies and ideas to establish compliance and defend against legal challenges.

Sample forms are included to remind new and existing employees of their right to meal and rest periods and secure their cooperation. Among the numerous subjects covered are:

Meal Period Rules
Rest Period Rules
Remedies & Sanctions
Exceptions To The Rules
Class Action Suits
Rules Regarding Combining Meal Periods
Labor Code Rules
Meal Period Charts
Proactive Strategies
Sample New-Hire Forms

Record-Keeping Obligations
New Cases
Timing Of Meal Periods
When Waivers Are Allowed
Labor Commission Rules
Industrial Welfare Commission Standards
Frequency of Meal Periods
Timing of Rest Periods
Effect of Rounding Practices
Sample Acknowledgment Forms

This book, as well as many others by Richard Simmons, are available at discounted member rates through our EG Store. To order by phone or for more information please call our Member Service Center at (800) 748-8484. Or, to shop on-line please visit our website.