by admin | Mar 5, 2019 | Compliance, Human Resources
We are all drinking from a firehose of news and information — all day, every day. With this deluge of information, it can be difficult to determine what’s truly important to know. But being reactive is not acceptable. You need to know what’s coming, what affects you, and how it affects you.
Take, for example, legislative changes — 80 percent don’t require your attention, but the 20 percent you need to act on can easily get lost in the noise. It’s the 20 percent that expose your business to risk, but how do you know which 80 percent of information you can safely ignore?
Paying attention to the right information at the right time and setting the rest aside – knowing what you need to know – is essential to anticipating and understanding risk.
Where People Risk Management Comes In
People risk management starts with anticipating and understanding what presents risks to your business. It’s the idea you can look at something, understand it, digest it, and know if and how you need to act on this information. It’s a complicated sequence that no one has time to do, which is why you need a trusted and knowledgeable partner who:
- Knows what’s in the pipeline, such as newly-introduced bills that have the potential to become law.
- Keeps an eye on at what’s actually happening that may affect employers, such as when bills pass, agencies issue directives, or courts rule on cases.
- Determines what presents any type of risk to employers – such as litigation, noncompliance, or reduced employee engagement – and what doesn’t require action.
- Communicates promptly, consistently, and effectively, so you can use this knowledge to update your policies, stay on top of compliance requirements, and incorporate best practices in a way that reduces risk for your unique business.
Understanding People Risks: An Example
Often, when we think about risks to employers, we focus on insurable risks because they are well understood and easily quantifiable. It’s important to address these risks with solid prevention plans and insurance products, but it’s the uninsurable categories of risks, particularly people risks, that can catch us off guard and unprepared.
People risks can result not just in financial loss, but damage to employee engagement and company culture. They tend to be more subject to interpretation and can be very abstract.
Take, for example, the consequences of hiring the wrong employee or losing a valued employee. When this happens, you bear the cost of lost productivity and the time and money invested in recruiting, hiring, and onboarding. You also risk litigation if policies are not adequately documented, communicated, and followed should the employee claim discrimination, harassment, or disability accommodation is to blame for their separation from the company.
Hiring the wrong employee or losing a valued employee also carries the risk of negatively affecting employee engagement, which is a well-documented predictor of business outcomes. If it happens regularly, or there is even one instance handled poorly, your employment brand can be tarnished. For example, it could result in bad reviews on recruiting sites, chipping away at your recognition as an employer of choice.
Be in the Know
Whether it’s knowing how legislative changes affect your business or what risks are inherent in day-to-day employee management issues, people risk management starts with a solid knowledge base that evolves continuously to keep up with the latest employment trends, news, regulation, and information.
by Larry Dunivan, CEO of ThinkHR
Originally posted on ThinkHR.com
by admin | Jan 4, 2019 | Human Resources
Question: Our company received a survey from the U.S. Census Bureau asking about the health coverage we offer to employees, how much it costs, etc. Is this an official survey? Do we have to provide the information?
Answer: It appears your company has been randomly selected for the federal government’s Medical Expenditure Panel Survey (MEPS). Here is a sample of the 2018 survey.
The U.S. Census Bureau conducts a variety of studies on different schedules. The most widely known one is the once-a-decade census of the entire U.S. population, but the Bureau also conducts surveys every year of randomly-selected individuals and businesses on different topics. It has used the MEPS for several years to collect data on health insurance spending, the availability of employer-provided coverage, costs paid by employers and workers, and to study trends over time. Policy makers and health care researchers use the data in aggregate form, while each participant’s data is kept confidential.
It is your choice whether to respond to the MEPS. There is no penalty if you do not answer some of the questions or if you decide not to return the survey at all. Your participation is entirely voluntary.
To learn more about the MEPS, see the FAQs that the Census Bureau has prepared for businesses.
by Kathleen Berger
Originally posted on ThinkHR.com
by admin | Dec 13, 2018 | FMLA, Human Resources
Question: We give year-end bonuses based on attendance, and employees with a certain number of absences are disqualified. If an employee took FMLA leave, can we count those absences against them and withhold the attendance bonus?
Answer: Yes, if you apply the rubric used to qualify employees for the bonus consistently across all “equivalent leave status” reasons for absence. For example, if you count days off for vacation, paid time off, jury duty, or military leave as absences for the purpose of determining who receives the bonus, you can also count days taken under Family and Medical Leave Act (FMLA) leave.
The same answer applies to bonuses earned for other goals that may be impacted by FMLA leave, such as sales targets or total numbers of hours worked.
If a bonus or raise is not tied to a specific condition, but rather is a cost of living or annual increase provided by all employees, an employee may not be disqualified on the basis of having taken FMLA leave.
Originally posted on ThinkHR.com
by admin | Dec 11, 2018 | Human Resources, Workplace
As the holiday season approaches, the economy is humming along, unemployment is low, and companies are enjoying the fruits of corporate tax breaks. Time to celebrate? Not so fast, according to the 2018 Holiday Party Survey by Challenger, Gray & Christmas. The survey found that just 65 percent of companies are holding holiday festivities this year, the lowest rate since the 2009 recession.
While in 2009, holiday parties were skipped for financial reasons, the 2018 causes are more complex. Andrew Challenger, VP of Challenger, Gray & Christmas, speculates that the two biggest factors are #MeToo and an increase in the number of remote employees.
If your company is among those celebrating the holiday season this year, what can you do to avoid liability from sexual harassment, alcohol consumption, and other categories of risk?
Risk: Harassment Allegations
- Communicate behavior expectations to employees ahead of time. Consider using this language to set standards of conduct. You may even choose to redistribute your sexual harassment policy. Be sure to emphasize that all employee policies apply at the party, even if it is off-site or after work hours. Racial or sexual jokes, inappropriate gag gifts, gossiping about office relationships, and unwelcome touching will not be permitted during the holiday party, just as they are not allowed in the office.
- Do not allow employees to get away with bad behavior. Remind your supervisors to set a good example and keep an eye out for employee behavior that needs managing at the event.
- Follow up immediately on allegations of inappropriate behavior and conduct a thorough investigation of the facts, even if the alleged victim does not file a complaint and you only hear about the behavior through the grapevine. If corrective action is warranted, apply it promptly.
- Invite significant others or families. Employee behavior tends to improve at company events when spouses or partners and children are present. If your budget allows, include the entire family in the celebration. Be sure to review your liability coverage with your broker first.
- Avoid incidents related to relaxed inhibitions by following the tips for reducing alcohol-related risks (see below).
Risk: Alcohol-Related Incidents
- Take steps to limit alcohol consumption. If alcohol will be served, provide plenty of food rich in carbohydrates and protein to slow the absorption of alcohol into the bloodstream. You can also have a cash bar, limit the number of drink tickets, or close the bar early to deter over-consumption. Also have a good selection of nonalcoholic beverages or a tasty signature “mocktail” available. Make sure water glasses are refilled frequently.
- Get bartenders on board. If you have underage workers or invite children of employees, be sure that servers ask for ID from anyone who looks under age 30. Ask servers to cut off anyone who appears to be intoxicated.
- Make sure employees get home safely. Offer incentives to employees who volunteer to be designated drivers, offer to pay for ride shares or taxis, or arrange group transportation or accommodations. Planning for safe transportation can potentially minimize your liability if an employee causes an accident while driving under the influence.
- Do not serve alcohol if your party is at the office and your policies do not permit drinking on company premises or during work hours. Deter employees from an informal after-party at a bar or restaurant where the alcohol could flow.
Risk: Workers’ Compensation Claims
- Keep the party voluntary and social. Typically, workers’ compensation does not apply if the injury is “incurred in the pursuit of an activity, the major purpose of which is social or recreational.” If the carrier determines that the company party was truly voluntary and not related to work, you may not be liable for injuries sustained at the party.
- Go offsite. Hosting your holiday party at an offsite location is a smart idea. Your employees will be thankful for the change in setting, and this could reduce insurance liabilities for your company, especially when it comes to third-party alcohol and injury policies.
- Check with your broker before the party. Review your insurance policies and party plans to make sure you do everything you can to avoid risk and know how to handle any incidents that result from the party.
Risk: Perceptions of Unfairness
- Determine how to handle pay issues in advance of the party. You’re not required to pay employees who voluntarily attend a party after hours. However, nonexempt employees need to be compensated if they are working the party or if attendance is mandatory. If the party is held during regular work hours, then all employees must be paid for attending the party.
- Decide in advance whether and how to include remote employees, independent contractors, temporary employees, or agency workers. Be consistent in sending invitations, and if a category of workers will not be invited to the party, consider other ways to reward them for their hard work throughout the year, such as gifts.
- Do not penalize employees who choose not to attend. The message may be misinterpreted and could create employee relations concerns. Be considerate of those who do not attend the event due to religious beliefs, sobriety, mental health issues, family obligations, child care conflicts, or any other reasons. Avoid religious symbols or themes as they could offend individuals of different faiths.
by Rachel Sobel
Originally posted on ThinkHR.com
by admin | Nov 29, 2018 | Health & Wellness, Human Resources
Picture this: You are sitting at your desk at 3pm and you realize you haven’t gotten up from your chair all day. You look around and see that you’ve been snacking instead of eating a lunch. You have read the same sentence 4 times and still can’t figure out what it means. Your back hurts, your eyes feel dry, and you feel kind of blah. You, my friend, are a victim of the sedentary lifestyle in America. How can we combat this lack of energy and inattentiveness in our workplace? By adopting healthy workplace initiatives, you will reap the benefits of a more engaged workforce and a healthier environment.
What’s the problem?
- The average worker sits 5 hours at a desk every day
- Add in couch time, sitting to eat meals, commute, and sleeping, and it could mean that the average adult is only active for 3 hours in a 24-hour period
- Prolonged sitting is directly related to higher risk of heart disease, weight gain, and diabetes
- Poor posture can lead to chronic health issues such as arthritis and bursitis
- Staring at computer screens for long amounts of time lead to higher instances of headaches and migraines
What’s the solution?
- Healthy snack options in vending machines—SnackNation and Nature Box have healthy snack delivery services for offices of all kinds and sizes.
- Fitness challenges—Encourage different office-wide challenges to promote a more active lifestyle.
- Standing desks—Companies such as Varidesk make standing desks or sit/stand desks that lower and raise so that you vary your position during the day
- Reduces back pain
- Burns more calories during the day
- Increases energy
- Some insurance companies will cover all or portion of the cost if they deem it “medically necessary.”
- Practice gratitude—keep a daily log of things to be thankful for that day
- Shown to ease depression, curb appetite, and enhance sleep
- Spirit of gratefulness leads to more sustainable happiness because it’s not based on immediate gratification, it’s more of a state of mind
- Get moving during the day—if your office doesn’t have sit/stand desks, schedule time to move each day
- Stretch time/desk yoga
- Computer programs to remind you to move such as “Move” for iOS and “Big Stretch Reminder” for Windows
- Extra happiness in the office—
- Add a plant
- Aromatherapy
- Host a cooking class to encourage healthy meal plans
- Pet-friendly office days
By showing your employees that you care about their physical and mental health you are showing that you care about them as people and not just employees. This results in higher motivated staff who are healthier. The Harvard Business Review even says that “employers who invested in health and wellness initiatives saw $6 in healthcare savings for every $1 invested.” You cannot always measure ROI on personnel investment but it looks like for workplace wellness, you can! Now get moving and get your office moving!
by admin | Nov 7, 2018 | ACA, Compliance, Human Resources, IRS
On November 5, 2018, the Internal Revenue Service (IRS) released Notice 2018-85 to announce that the health plan Patient-Centered Outcomes Research Institute (PCORI) fee for plan years ending between October 1, 2018 and September 30, 2019 will be $2.45 per plan participant. This is an increase from the prior year’s fee of $2.39 due to an inflation adjustment.
Background
The Affordable Care Act created the PCORI to study clinical effectiveness and health outcomes. To finance the nonprofit institute’s work, a small annual fee — commonly called the PCORI fee — is charged on group health plans.
The fee is an annual amount multiplied by the number of plan participants. The dollar amount of the fee is based on the ending date of the plan year. For instance:
- For plan year ending between October 1, 2017 and September 30, 2018: $2.39.
- For plan year ending between October 1, 2018 and September 30, 2019: $2.45.
Insurers are responsible for calculating and paying the fee for insured plans. For self-funded health plans, however, the employer sponsor is responsible for calculating and paying the fee. Payment is due by filing Form 720 by July 31 following the end of the calendar year in which the health plan year ends. For example, if the group health plan year ends December 31, 2018, Form 720 must be filed along with payment no later than July 31, 2019.
Certain types of health plans are exempt from the fee, such as:
- Stand-alone dental and/or vision plans;
- Employee assistance, disease management, and wellness programs that do not provide significant medical care benefits;
- Stop-loss insurance policies; and
- Health savings accounts (HSAs).
HRAs and QSEHRAs
A traditional health reimbursement arrangement (HRA) is exempt from the PCORI fee, provided that it is integrated with another self-funded health plan sponsored by the same employer. In that case, the employer pays the PCORI fee with respect to its self-funded plan, but does not pay again just for the HRA component. If, however, the HRA is integrated with a group insurance health plan, the insurer will pay the PCORI fee with respect to the insured coverage and the employer pays the fee for the HRA component.
A qualified small employer health reimbursement arrangement (QSEHRA) works a little differently. A QSEHRA is a special type of tax-preferred arrangement that can only be offered by small employers (generally those with fewer than 50 employees) that do not offer any other health plan to their workers. Since the QSEHRA is not integrated with another plan, the PCORI fee applies to the QSEHRA. Small employers that sponsor a QSEHRA are responsible for reporting and paying the PCORI fee.
PCORI Nears its End
The PCORI program will sunset in 2019. The last payment will apply to plan years that end by September 30, 2019 and that payment will be due in July 2020. There will not be any PCORI fee for plan years that end on October 1, 2019 or later.
Resources
The IRS provides the following guidance to help plan sponsors calculate, report, and pay the PCORI fee:
Originally posted on thinkhr.com
