This information is so on the money I had to reprint it.

Job Hopping Isn't Hazardous to Employers

Recruiters who focus on an applicant's history of frequent job changes instead of analyzing the overall fit for the position may be shortchanging their organizations, experts say. Such a focus also is an indicator of risk avoidance, rather than a positive strategic outlook.

By David Shadovitz

Employers would be well served not to pay much attention to a candidate's job history.
Indeed, a recent study by Evolv, a San Francisco-headquartered provider of data-driven selection tools and services, reveals there is essentially zero correlation between the number of jobs hourly call-center agents held and their future job tenure.

The study analyzed applicant data and employment outcomes of more than 21,000 call-center agents in five major contact centers. Regardless of the call-center position held, the study finds that, just because someone hopped from job to job doesn't mean they're not going to stay in their next job.  "We went into the study with the expectation that people who had lots of different jobs, or none at all, were going to have very different kinds of outcomes from their next employer than those with more typical work histories," says Michael Housman, managing director of analytics. "But the study found that clearly wasn't the case."

Recruiters and hiring managers are much better off focusing their attention on other characteristics, such as job fit, personality and skills, he says.Depending on the type of position, Housman estimates between 2 percent and 7 percent of call-center applications are rejected because of their experience and work history.
Clearly, he says, a more "nuanced understanding of the applicant and his or her personality" is warranted.
To ensure the best candidates are hired, Housman says, previous work experience needs to be placed within a much broader context.

JoAnne Kruse, founder of HCpartners in Chester, N.J., agrees that companies need to look beyond a single datapoint such as work history. Although "job jumps" can sometimes be an indicator of a potential bad hire, Kruse says, the recruitment process requires "a careful evaluation of a candidate's qualifications and fit for a role."Weighting job history over and above other criteria, she adds, may very well result in losing out on some excellent talent.

A recent study by TheLadders, a New York-based job-matching service, reports that recruiters spend just six seconds looking at a resume before deciding if a candidate is a good fit.  Bill Humbert, president of RecruiterGuy.com in Park City, Utah, believes recruiters need to be better trained in what to look for as they consider candidates, especially as companies emerge from the recent economic downturn.
In this environment, he says, they're inevitably going to run across a lot of candidates who have either bounced around a lot or been unemployed.  If employers pass on candidates without having a decent conversation, Humbert says, "they're inevitably going to miss out on hiring good people."

"Far too many managers haven't been properly taught how to interview and select good candidates," he adds.
Peter Weddle, president of Weddle's, a Stamford, Conn.-based publisher specializing in recruiting, suggests the larger issue for employers is whether or not their selection processes are focusing on the right goals.
"Fundamentally," he says, "selecting new hires to minimize attrition is a strategy of cost avoidance, while selecting them based on their potential for superior job performance is a strategy for revenue growth and profitability.  "In a highly competitive business environment such as the one that exists today," he says, "most CEOs will opt for the latter, and so should their HR departments."

Though the Evolv research was limited to call-center employees, Housman believes the findings would hold true in other fields that employ a significant number of hourly workers, such as retail and hospitality.

May 11, 2012

People Are Asking Today

1.       When is overtime due?

        Answer: For covered, nonexempt employees, the Fair Labor Standards Act (FLSA) 
       requires overtime pay at a rate of not less than one and one-half times an employee's 
       regular rate of pay after 40 hours of work in a workweek. Some exceptions to the 40 hours 
      per week standard apply under special circumstances to police officers and firefighters 
      employed by public agencies and to employees of hospitals and nursing homes. 

      Some states also have enacted overtime laws. Where an employee is subject to both      
      the state and federal overtime laws, the employee is entitled to overtime according to the   
     higher standard (i.e., the standard that will provide the higher rate of pay).

        

2.   When must breaks and meal periods be given?
 

Answer: The Fair Labor Standards Act (FLSA) does not require breaks or meal periods be given to workers. Some states may have requirements for breaks or meal periods. If you work in a state which does not require breaks or meal periods, these benefits are a matter of agreement between the employer and the employee (or the employee's representative).

3.      How are vacation pay, sick pay, and holiday pay computed and when are they due?
 

Answer: The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations, sick leave or holidays (federal or otherwise). These benefits are a matter of agreement between an employer and an employee (or the employee's representative

4.      What is the minimum wage?

Answer: The federal minimum wage for covered nonexempt employees is $7.25 per hour effective July 24, 2009. The federal minimum wage provisions are contained in the Fair Labor Standards Act (FLSA). Many states also have minimum wage laws. Where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages.

Various minimum wage exceptions apply under specific circumstances to workers with disabilities, full-time students, youth under age 20 in their first 90 consecutive calendar days of employment, tipped employees and student-learners.

5.      If an employee suffers an illness and the doctor writes a medical certification that the   
       employee is sick, who pays for this sick leave?
 

Answer: Generally, federal labor laws do not require employers to provide sick leave or pay sick time off. However, if employers do provide sick leave, the Family and Medical Leave Act (FMLA) permits an eligible employee to substitute paid leave for the unpaid leave to the extent the employer's usual requirements for the use of sick/medical leave are met and the sick leave qualifies as FMLA leave. Employers are also permitted to designate paid leave as FMLA leave assuming all the conditions are met.

6.      What is ERISA?
 

Answer: The Employee Retirement Income Security Act of 1974, or ERISA, protects the assets of millions of Americans so that funds placed in retirement plans during their working lives will be there when they retire.

ERISA is a federal law that sets minimum standards for pension plans in private industry.  For example, if an employer maintains a pension plan, ERISA specifies when an employee must be allowed to become a participant, how long they have to work before they have a nonforfeitable interest in their pension, how long a participant can be away from their job before it might affect their benefit, and whether their spouse has a right to part of their pension in the event of their death.  Most of the provisions of ERISA are effective for plan years beginning on or after January 1, 1975.
ERISA does not require any employer to establish a pension plan.  It only requires that those who establish plans must meet certain minimum standards.  The law generally does not specify how much money a participant must be paid as a benefit.

   ERISA does the following:

    Requires plans to provide participants with information about the plan including important information about plan features and funding.  The plan must furnish some information regularly and automatically.  Some is available free of charge, some is not.

   Sets minimum standards for participation, vesting, benefit accrual and funding.  The law defines how long a person may be required to work before becoming eligible to participate in a plan, to accumulate benefits, and to have a nonforfeitable right to those benefits.  The law also establishes detailed funding rules that require plan sponsors to provide adequate funding for your plan.

    Requires accountability of plan fiduciaries.  ERISA generally defines a fiduciary as anyone who exercises discretionary authority or control over a plan's management or assets, including anyone who provides investment advice to the plan.  Fiduciaries who do not follow the principles of conduct may be held responsible for restoring losses to the plan.

   Gives participants the right to sue for benefits and breaches of fiduciary duty.

  Guarantees payment of certain benefits if a defined plan is terminated, through a federally chartered corporation, known as the Pension Benefit Guaranty Corporation.

Did You Know

On October 9, 2011, California Governor Jerry Brown signed nearly two dozen new California human resources and labor-related bills into law, effective this year. Over the next few days I will hightlight the seven most important of these California laws.. 

SB-459: Worker Misclassification Act. SB-459 is designed to crack down on the misclassification of employees as independent contractors.

 California Senate Bill 459,  known as the “The Job Killer Act,” imposes severe penalties on employers who “willfully” misclassify workers as independent contractors. On the Federal level, worker misclassification has also been the focus of attention by the Department of Labor. Labor Secretary Hilda Solis,  stated, “The misclassification of employees as independent contractors is an alarming trend. The practice is a serious threat to both workers, who are entitled to good, safe jobs, and to employers who obey the law and are undercut when others use illegal practices.”

The Labor Department is now sharing information regarding businesses that misclassify workers with the IRS. The DOL has hired around 300 investigators to explore wage theft complaints. The IRS has already collected almost $4 million of back wages in 2010, during the first of its three-year plan to audit some 6000 randomly selected, various sized companies.

Employers who misclassify employees may face significant penalties, in addition to employment taxes and benefits.  All employers should review their employee job descriptions and reclassifying misclassified workers if necessary.  The following suggestions should help.

1. Read through the Labor Department’s rules and examine workers’ job descriptions to determine whether classifications are correct.
2. Review the IRS guidelines. The IRS provides clear eligibility parameters for determining independent contractor status. One must consider all information that helps determine the degree of control and independence maintained by the worker in relation to the company.

 To prevent  financial penalties, be proactive, investigate complaints promptly, carefully check each worker’s status and reclassify as necessary.

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