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California Human Resource Blog

Archive for November, 2007

Holiday Office Party

Friday, November 9th, 2007

Employment Law Attorneys Love Them…….

I once heard an attorney during a presentation say that the fallout from holiday office parties is a very lucrative business, one that provides a handsome living to many of his colleagues. Oh no, watch out, here she comes, that grumpy HR Grinch, ready to shut down our rollicking good time this holiday season. You know, the anything goes office party where your employees leave their inhibitions at the door. The celebratory occasion that provides months of post party gossip.

Unfortunately the post holiday hangover may be yours if you are an employer. The gift you get in January and beyond may be hours spent huddled with your new best friend, an employment practices attorney. The attorney you hope can defend you against some very serious legal threats to you and your business.

We at YPP love to have a good time and we want our clients to have a bright and HR Safe holiday season. We have a few tips to help our employers avoid the biggest holiday party danger zones, alcohol and sexual harassment.

Alcohol
The following tips were prepared by the U.S. Department of Labor, Working Partners for an Alcohol and Drug Free Workplace in an attempt to assist employers in minimizing negative consequences of alcohol consumption at their holiday parties.

  • Be honest with employees. Make sure your employees know your workplace substance abuse policy and that the policy addresses the use of alcoholic beverages in any work-related situation and office social function.

  • Post the policy. Use every communication vehicle to make sure your employees know the policy. Prior to an office party, use break room bulletin boards, office e-mail and paycheck envelopes to communicate your policy and concerns.
  • Reinvent the office party concept. Why have the typical office party? Try something new like an indoor carnival, group outing to an amusement park or volunteer activity with a local charity.
  • Make sure employees know when to say when. If you do serve alcohol at an office event, make sure all employees know that they are welcome to attend and have a good time, but they are expected to act responsibly.
  • Make it the office party of choice. Make sure there are plenty of non-alcoholic beverages available.
  • Eat… and be merry! Avoid serving lots of salty, greasy or sweet foods which tend to make people thirsty. Serve foods rich in starch and protein which stay in the stomach longer and slow down the absorption of alcohol in the bloodstream.
  • Designate party managers. Remind managers that even at the office party, they may need to implement the company’s alcohol and substance abuse policy.
  • Arrange alternative transportation. Anticipate the need for alternative transportation for all party goers and make special transportation arrangements in advance of the party. Encourage all employees to make use of the alternative transportation if they consume any alcohol.
  • Serve none for the road. Stop serving alcohol before the party officially ends. Employers are encouraged to review their company policies regarding alcohol consumption and furthermore, to enforce their policies at all company celebrations.

Sexual Harassment

With or without too much alcohol a holiday party can become the opportunity for sexual harassment claims. As a California employer you must know that State law forbids sexual harassment under FEHA and Government Code section 12940.
The California Fair Employment and Housing Commission (FEHC) enforces FEHA law and has found sexual harassment to include:

  • Verbal harassment, such as epithets, derogatory comments, or slurs;

  • Physical harassment, such as assault or physical interference with movement or work; and
  • Visual harassment, such as derogatory cartoons, drawings, or posters.


As an employer what can you do to help minimize the risk? The following tips can help you avoid holiday party harassment liability:

  • Remind employees beforehand that their liability for sexual harassment applies at all times, including during the party.

  • Make sure your supervisors’ sexual harassment training is up to date, and you may want to redistribute the company’s sexual harassment and substance abuse policies to everyone a week or so before the party.
  • If you know or suspect someone in your organization is putting you at risk for a sexual harassment claim take steps now to address it now, don’t wait until it is too late.


YPP HR Managers can help you in planning an HR SAFE holiday celebration. We want you to enjoy the season knowing you have done everything possible to avoid a post holiday legal hangover.

Posted by Lynn Fernbaugh in HR, Lynn Fernbaugh | No Comments »

EAP: Not as Boring as You Think!

Tuesday, November 6th, 2007

For most people, the acronym “EAP” is like valium for the ears: part of the 401(k), HSA, ADA, FMLA alphabet soup that seems to come with HR. Probably even reading that sentence made you a little bit drowsy, right?

But it’s worth your while as a business owner or manager to prop your eyelids open and spend some time considering an Employee Assistance Program (EAP) for your business. You might find that the potential for cost savings, rising employee morale and retention, and a strengthened employment brand are enough to perk you right up.

What is an EAP? It’s a program offered by employers to their employees as a confidential resource for employees with all different types of problems, whether with family, work, personal, relationship, financial, legal, childcare, adult-care, or others. The basic theory behind EAP’s is that what you invest in providing these services will be returned to you (and more, hopefully) in the form of lower insurance premiums, lower workers’ compensation claims, less absenteeism, less presenteeism (showing up for work but underperforming, a growing concern for many employers,) and less abuse of sick and PTO leaves.

According to Helen Darling, president of the nonprofit National Business Group on Health, about 217 million workdays are lost annually because of a lack of productivity stemming from mental health and substance abuse disorders, and those lost days cost U.S. employers $17 billion annually.

And EAP’s are not just for the employee with a serious mental illness or drug addiction problem. How many employees are not at their best at work because they’re distracted by childcare issues, marital problems, trying to find care for aging parents, financial concerns (including mortgage woes), or legal issues? By assisting your employees with these problems by providing an EAP (and a strong communication program to roll it out and continue ongoing education,) you may be strengthening your bottom line.

You can even gain national recognition as an employer of choice, as five firms recently did during the National Business Group on Health 2007 Joint Forum. Aetna, Cisco Systems, Delta Air Lines, GlaxoSmithKline, and Pitney Bowes all were recognized for their outstanding programs in wellness and employee assistance. In the era of a tight labor market, supercompetitors like Google, and the retirement of a generation, employers need to do everything they can to distinguish themselves as an enticing, strong, stable employment brand. An EAP, especially as part of a well-considered benefits package tailored to your demographics, can be a valuable tool in cementing your employment brand.

Because the return on investment for an EAP can be so significant, YPP recently added one for its employees. By adding a strong EAP to our established wellness program, and rolling it out with well-planned communication and education, we anticipate seeing a reduction in costs in many areas, and improved morale, retention, and productivity at our clients.
To learn more about the award-winning employer programs listed above, visit http://www.businessgrouphealth.org/.

Posted by Reed Jorgensen in EAP, employee benefits | No Comments »

Bureau Recommends 5.2 Percent Hike At Rate Hearing

Saturday, November 3rd, 2007

The Workers’ Compensation Insurance Rating Bureau of California yesterday made its case to the Department of Insurance for a 5.2 percent pure premium rate increase. The Bureau’s revised filing is one percentage point more than its original submission in September, an increase necessitated by Governor Schwarzenegger’s endorsement of AB 338. If Insurance Commission Steve Poizner approves the filing for advisory rates on Jan. 1, 2008, it’ll be the first increase since July 2003 and perhaps a portent of things to come. Poizner was unable to attend the rate hearing due to the Insurance Department’s in working with policyholders and insurers dealing with the raging Southern California fires. That left C hris Citko, CDI senior staff counsel, running the meeting.

The Bureau’s original filing proposed a 4.2 percent increase contingent upon the governor not signing AB 338. The new law, which affects workers injured on or after Jan. 1, 2008, increases the window during which injured workers may use their temporary disability benefits from two years from the date of the first benefit payment to five years from date of injury. Schwarzenegger signed the bill into law earlier this month. According to Dave Bellusci, chief actuary for the Bureau, this change will eliminate about one third of the TD savings realized from SB 899.

Despite the signing of AB 338, the greatest factor in the Bureau’s proposed increase was the affects of loss adjustment expenses – that is the costs associated with adjusting claims. Loss adjustment expenses have not decreased commensurate with the decline in losses from accident years 2003 through 2006. This factor accounts for 3.5 percentage points of the proposed increase. As for reasons that the LAE are not declining, Bellusci points to new medical utilization review procedures, legal challenges to regulations and legislation, and challenges to the Permanent Disability Rating Schedule that are likely increasing the cost of administering claims.

“To the extent that there will be reduced litigation, we haven’t seen it yet. Maybe when the smoke clears from the reforms, we’ll see a decline in loss adjustment expenses,” Bellusci said at yesterday’s hearing.

Bellusci also informed the Department that the data submitted by AIG and Virginia Surety Insurance Company are included in the rate filing. AIG and Virginia Surety’s data were excluded from the July rate filing because of data inaccuracies and anomalies respectively, but they have since remedied the deficiencies. However, the data of Arch Insurance Company were excluded because of data anomalies. Arch has less than one percent of the market share in California.

Next year’s rate is now in the hands of Poizner, who must either accept the filing or reject and order a different rate change in either direction. Insurers, however, are not required to use the pure premium rate and may price policies as they see fit. For a copy of the revised rate filing, please click here.

Posted by Bob Dumouchel in Uncategorized | No Comments »