Monthly Archives: July 2008

SHRM Opposes New Paycheck Fairness Act

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In a letter to their members, SHRM voiced their opposition to a new bill being debated in the House titled the Paycheck Fairness Act. Acting as an update to the existing Equal Pay Act, the bill would create new mandates for employers as well as making it easier to suit for punitive damages. As a result of the nature of the bill, SHRM opposes the following aspects of the Paycheck Fairness Act:

* Promotes class action lawsuits against employers—The bill would require that employees “opt-out” of a gender discrimination class action, rather than the current law requirement that employees must give their written consent to join a class action. This will invariably increase the number of plaintiffs in class actions.

* Exposes employers to unlimited damages—The bill would lift the Equal Pay Act’s current limits on punitive and compensatory damages for which employers would be liable, in addition to current liability for back pay. Such damages would apply to even unintentional pay disparities. By exposing employers to potentially millions of dollars in damages, the bill would compel employers to settle wage discrimination claims, even in cases where no discrimination occurred.

* Restricts employer defenses—The bill would prohibit certain employer defenses for pay disparities. For example, the bill would eliminate an employer’s ability to justify paying different salaries to workers based in different locations with different costs of living.

* Encourages salary disclosures—The bill would effectively encourage employees to publicize their co-workers’ salaries by preventing employers from retaliating against employees who disclose or discuss the wages of other employees.

SHRM went on to urge the public(especially employers) to write their Representative calling for them to vote “No” on this bill. SHRM further explains their position by stating that “SHRM opposes all forms of unlawful
discrimination in the workplace, and believes any intentional misconduct against employees in any sector should be promptly addressed and resolved. Accordingly, SHRM believes the so-called Paycheck Fairness Act would be an unnecessary expansion of the Equal Pay Act. It would limit an employer’s ability to determine compensation for its workforce, and it could potentially punish well-intentioned employers”

For more information on this bill visit GovTrack or the SHRM website.

The Price Tag for Retaliation

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Retaliation claims can be extremely hard to defend against, and the penalties for those found guilty aren’t getting any easier. In a recent ruling on a case in Cambridge MA the jury awarded a woman $4.5 million after claiming retaliation for an earlier discrimination suit. After filing the original suit for discrimination, the woman claimed that her manager unfairly over-analyzed her work giving her poor reviews in hopes to get her to quit. Finally she was told she was being fired so she resigned and brought the company to court.

With the number of retaliation claims on the rise, now makind up 32% of all claims filed with the EEOC, companies need to understand how to defend themselves against such situations. The first step to take is making sure that all supervisors and managers are aware of the retaliation law and its consequences. Providing training in this area as well as discrimination(many retaliation claims originate with discrimination claims against that company) will help to reduce the risk, and show that you are actively working to stop this type of behavior. It also helps if HR has the confidence of the employees. As I have continually stressed throughout this blog, a good HR department will cause workers to talk to them instead of a lawyer. Workers who seek legal advice are much more likely to suit then if your HR department can remedy the situation in a fair yet cost effective way for all parties.

A list of strategies to prevent retaliation claims as seen on Findlaw.com

  • Establish a policy against retaliation
  • Communicate with the complaining employee
  • Keep confidential any complaints that you receive
  • Document, document, document…
  • Know the law – Even if the original complaint of discrimination or harassment turns out to be unfounded, an employee who can prove that something negative happened because of the complaint can still win a retaliation claim.

Effectively Manage Complaint Process to Lower Retaliation Claims

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With small businesses and large corporations all facing tough economic times, organizations are looking everywhere for ways to cut costs.  One way to do this is by examining how procedures and organizational shifts can save money.  One such method HR can take to reduce risk is to keep disgruntled employees from talking to a lawyer by instilling confidence in the processes HR has in place.  By consistently and clearly stating your policies and processes in a fair way, employees will trust that HR has the EMPLOYEES concerns in mind and will use the complaint process in place to voice their concerns.  The less employees go outside of the organization for legal advice, the less likely they are to suit.

A list of techniques to lower the risk of retaliation claims presented by HRMorning includes:

  • Have a credible complaint procedure, describe it to the employee and promptly follow the procedure.
  • Thank the employee for the information.
  • Underscore your zero-retaliation policy.
  •  ask the employee to report any further experiences or events resulting from the complaint or participation in the investigation — letting the employee know you’re interested in making certain he or she gets fair treatment during the investigation.
  •  Pay attention to the little stuff the employee reports. If the employee is mentioning it, it’s not little.

 

 

Top Ten Recession Proof Jobs

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According to a study released by career development company Jobfox, Sales, Software Design, and Nursing are the most likely jobs to withstand a recession. The report looks at the 8-month period of November 2007 to July 2008 and highlights jobs “that have most consistently remained in highest demand”.

With the economy in a “downturn” and six straight months of job losses, protecting yourself from joining the ranks of the unemployed can be a task all to itself. A recent article by Anne Fisher on money.cnn discusses steps everyone can take to recession proof their own positions:

Eight Ways to Recession Proof YOUR Job:

  • Think of ways to generate revenues or cut costs.
  • Be visible.
  • Talk up your contributions.
  • Keep a broad perspective.
  • Just doing your job well isn’t enough.
  • Get your skills up to date.
  • No whining allowed. Attitude does count – a lot.
  • Never stop networking.
  • Update your resume, return headhunters’ phone calls, and start picturing where else you might like to work – just in case.

Here are the top ten most recession proof jobs listed in the JobFox report:

1. Sales Representative/Business Development.
2. Software Design/Development.
3. Nursing.
4. Accounting & Finance Executive.
5. Accounting Staff.
6. Networking/Systems Administration,
7. Administrative Assistant
8. Business Analysis: Software Implementation
9. Business Analysis: Research
10. Finance Staff.

For the full list of the twenty most recession proof jobs visit JobFox.

Federal Minimum Wage Increase

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Starting thursday July 24th, 2008, the federal minimum wage will increase from $5.85 to $6.55. This is step two of a three part initiative to make the federal minimum wage more in line with the needs of U.S. workers. Step one went into effect in July 2007, while step three will take place July 2009, raising the federal minimum wage to $7.25. Many states have their own minimum wage set higher then the federal guidelines, to learn more about specific states visit the Department of Labor Homepage.