As a mother of a three year old, I rarely get out to the theaters to see an adult movie. In fact, if one were to review my ticket stubs they would find The Princess and the Frog and How to Train a Dragon (in 3D of course)! On occasion, my husband and I get a movie date night at home. Given that part of my job at Midwest Staffing Group Inc. is consulting with clients about avoiding legal risks in terminating employees, Up in the Air was a natural choice for a rare movie night.

In case you haven't seen it, the movie's about Ryan Bingham, a character played by George Clooney. Bingham is a professional outside terminator who travels around the US letting employees go. He spends the majority of his time in airports and remote US cities while earning frequent traveler perks. All of this changes when Natalie a recent college grad, played by played by Anna Kendrick joins the company. She has an idea to decrease extensive travel costs by doing terminations by video. She's assigned to go on an in-person tour with Bingham to see how terminating is done live, to improve her video product.

Throughout the movie, we see numerous firing scenes where some employees cry, others are angry and others are shocked. In my experience in HR, this is quite true to life. Overall, the movies about more than the painful duty of ending someone's job, it focuses on the “human aspect” of the termination. For nearly all companies, termination is still very much a part of their business. Up in the Air highlights not only the legal but the human risks associated with terminating employees. The movie reminds us of some key aspects to keep in mind when terminating an employee:

1. Pre-termination Planning- ensure you are aware of the risks before hiring and throughout the course of employment.
2. Begin before Hiring- Employment applications should provide an opportunity for applicants to fully disclose their past work history and reserve the right to terminate an employee for falsifying information. Secondly, the standards for working at your company should be made clear during the interviewing process and upon hire to avoid any surprises. Lastly, your employee handbook should have language that clearly states your companies at will employment policy. If the position requires a written employment contract, ensure that it is appropriate for the position.
3. Decision to terminate- If a manager decides that an employee should be terminated, this decision should be reviewed by at least one person before the final decision is made. The review should look at all of the facts leading up to the decision along with a review of the employees file.
4. Letting the employee know- Telling an employee they are terminated is never an easy job as the movie demonstrated. Usually the employee’s manager and a HR representative will attend the meeting. The meeting should be prepared for in advance and focus on the facts including the decision to terminate, reasons supporting the decision, the date the decision is in effect, review COBRA and any other relevant separation information, a review of any non-competes, policies on references, and informing the employee who they can contact with any issues.
5. After the termination- the employer should prepare a brief explanation about why the employee is no longer with the organization to avoid rumors. Any reference requests should be dealt with in accordance to your organizations policies and procedures.
6. Be aware of the legal challenges- An employer should be aware of several legal challenges with terminations including but not limited to contractual claims, tort claims, claims of constructive discharge, and claims based on federal state and local legislation. Prior to the termination, the employer should have reviewed the termination case for any red flags that might arise with the termination.

As in the movie, terminating an employee is never a simple task and it’s something that every manager and HR professional should take seriously. While it’s important to follow the steps in the process, I have also learned that it’s just as important to not remove the “human” out of human resources and be aware you are dealing with a person, not just a number.

Does your company currently file and store I-9’s electronically or have you thought about it as an option for the future? If so, read on to learn about the new final rule that was published on July 22, 2010. The U.S. Department of Homeland Security (DHS) published a final rule amending an interim final rule on the electronic signature and storage of the Form I-9.

The final rule allows employers to complete, sign, scan and store the Form I-9 electronically as long as certain performance standards in the final rule for the electronic filing system are met.

The final rule makes minor modifications to the interim final rule to clarify that employers:

1. Must complete a Form I-9 within three business days (not calendar days).
2. Can use paper, electronic systems or a combination of paper and electronic systems.
3. Can change electronic storage systems as long as the systems meet the performance requirements of the regulations.
4. Need not retain audit trails for each time a Form I-9 is viewed electronically. Instead, only when the Form I-9 is created, completed, updated, modified, altered or corrected.
5. Can provide or transmit a confirmation of a Form I-9 transaction but are not required to do so unless the employee requests a copy.

Employers have also requested guidance on the storage of documents used to verify an employee’s identity and eligibility to work in the United States. DHS clarified that employers may, but are not required to, copy or make an electronic image of a document used to comply. Employers should develop a consistent policy regarding the storage of document copies to avoid discrimination.

Additionally, the form I-9 and verification documentation may be stored in a separate Form I-9 file or as part of an employee’s other employment records. The pages of the Form I-9 containing employer- and employee-entered data need be retained; the other pages do not need to be retained.

The DHS amended the interim final rule to require an employer to provide or transmit a confirmation of the transaction only if an employee requests it. If requested, a receipt when completing an electronic record should be provided within a reasonable period of time, but it need not be provided at the time of the transaction.

Keep in mind that providing the option of electronic preparation and storage does not alter the requirement that the employer physically examine any documentation provided by the employee in the presence of the employee prior to completing the Form I-9. The final rule takes effect August 23, 2010.

Social media networking sites provide a great opportunity for organizations for marketing, employee engagement and recruiting efforts. Employee’s are “tweeting”, updating statuses on facebook and even “be-friending” their peers. However, with the reward does come at a risk. How high the risk depends largely on the plans and policies in place to address the risk. If your company doesn’t currently have a social networking policy, read on to discover why it’s an important risk management tool!

Whether or not you currently use social media for personal or professional purposes, it is increasing in popularity within organizations. Many individuals and companies that utilize Twitter or other social media websites want public recognition with the intention of attracting followers, fans, etc. The risk that is involved is monitoring what employee’s say, how they say it and when they say it to ensure your business is properly represented.

As I mentioned earlier, where there is risk, there is also reward. The social media arena is no different. To help manage risk, companies should provide a brief written policy about company expectations regarding social media usage. This might complement an already-existing policy on e-mail and Internet communications. Even if you’re not currently using social media tools for business reasons, you still should put together policy about employees’ personal use. If a company ignores the impact of online social networks, the company’s silence might cause confusion amongst the employee’s.

As you are reviewing your policies, below are some factors to keep in mind:

1. Company approval is required for authors who use electronic resources of the company to send tweets, status updates or other public messages.
2. Any messages that might act as the “voice” or position of the company must be approved by the company.
3. Any message posted to a personal networking sites regarding job related content or about the company should require the employee to identify themselves as an employee of your company and use a disclaimer and make it clear that these views are not reflective of the views of your company. “The opinions expressed on this site are my own and do not necessarily represent the views of (insert your company name).”
4. Any identification of the author, including usernames, pictures/logos, or “profile” web pages, should not use logos, trademarks, or other intellectual property of the company, without approval of the company.
5. Written messages are, or can become, public. Use common sense when sharing messages.
6. The personal use of social networking web sites must not interfere with working time.

In addition to the policy itself, experts recommend having a brief policy statement outlining corporate philosophy on social media. The policy should specify sites or tools encompassed by the statement, who is permitted to use them and for what purposes, restrictions on usage and the consequences of infractions. As with any new policies, employees should sign an acknowledgment of receipt and understanding when the policy is released.

It’s clear that social media is becoming a more important part of how businesses operate. To avoid problems, employers need to set clear boundaries that depend on the corporate culture, the work environment and the industry. If you would like more information on how to utilize social media networking or on implementing a social networking policy, please contact your local Midwest Staffing Group Business Development Specialist.

Do your employees routinely come to you with complaints about each other and expect that you will resolve it? If so, it may be time to for a change! By telling them to deal with interpersonal conflicts on their own before they come to you, you have more time to focus on your work; and you help them develop the ability to handle conflict.

Managers who rush to resolve employee’s conflicts sometimes assume that problem solving calls for a top-down approach. As a manager, you can assert your authority by refusing to let them unload their conflicts on you unless they have attempted to work it out on their own. In addition, if you consistently confront one employee with another’s complaints, you’ll be seen as “taking sides” and creates the perception of bias.

Coaching employees to solve their own problems will initially take more time and energy than handling the conflict yourself. However, in the long term, you’ll create a work environment where conflict management is seen as everyone’s obligation, not just the manager’s job. Below are a few tips to get you started:

1. Don’t put your employees’ “urgent” issues at the top of your priority list. As a manager you may find yourself spending too much time dealing with issues that are urgent but not important. If you’ve allowed yourself to get drawn into employee problems, making a change may take some work but will eventually reduce the “urgent” problems dropped in your lap.
2. Train employees in conflict-resolution skills. By beginning with a self-assessment for each employee, you will allow them to better understand their own conflict-management styles and the pros and cons of using a particular style.
3. Communicate clear expectations. If employees are trained in conflict management and required to follow a specific course of action when conflicts arise among team members you will deal with less employee issues. If the policy is that managers should not be involved in refereeing petty disagreements, the team will be less likely to involve them.
4. Set specific guidelines. In some organizations, that standard procedure is that if an employee’s behavior is creating a problem within a team, the team is expected to work it out without involving the manager. If this is unsuccessful, the manager can be brought in to make a decision.
5. Remind employees to focus on behaviors, not personalities. Remind employees to focus on the other person’s behavior and the consequences of that behavior—not on personalities or subjective judgments.
6. Have an open-door policy—and stick to it. Let employees know that you’re still available to coach them on how to work through specific situations. For example, if they are having s specific problem, you could follow-up meeting to discuss how things are going for the employee. Employees also need to know that if they try and fail to resolve a conflict, you’re available for follow-up guidance.
7. Know where to draw the line. Clearly communicate that management must always be notified and involved in certain types of conflicts, especially where there are indications of physical violence, harassment, theft, or illegal substance use or possession. Your employees should never be expected to confront violations of the law or to enforce company policy without management’s knowledge.

While it’s impossible to create an atmosphere free of conflict, it is not impossible to enable your employees to learn valuable workplace skills such as conflict management. And bonus: you might just reclaim and protect your own time.

With summer right around the corner, many companies are considering whether or not an internship program is something that would be valuable for their organization. Your company might even be in a similar situation! The U.S. Department of Labor (DOL) has released a new set of standards to help employers determine whether interns must be paid the minimum wage and overtime under the Fair Labor Standards Act (FLSA) for their services. The standards apply only to those interns working for “for-profit” private sector employers. The term “employ” is loosely defined and most internships in the “for-profit” private sector are viewed as employment vs. training. Therefore, the interns should be classified in private sector employers as employee’s and would be subject to at least the minimum wage and overtime compensation for work that exceeds 40 hours per week.

While most internships in the private sector are subject to minimum wage requirements, the Supreme Court has held that the FLSA definition of work cannot be interpreted so as to make a person whose work serves only his or her own interest an employee of another who provides aid or instruction. This may apply to interns who receive training for their own educational benefit if the training meets certain criteria.

The DOL fact sheet provides a list of six criteria that must be applied when determining whether an internship should be considered training rather than employment:

1. The internship, even though it includes actual operation of the facilities of the employer, is similar to training that would be given in an educational environment.
2. The internship experience is for the benefit of the intern.
3. The intern does not displace regular employees but works under close supervision of staff.
4. The employer that provides the training derives no immediate advantage from the activities of the intern and on occasion its operations might be impeded.
5. The intern is not necessarily entitled to a job at the conclusion of the internship.
6. The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.

If all of these factors apply, an employment relationship does not exist under the FLSA and the law’s minimum wage and overtime provisions do not apply to the intern.

If your organization is interested in implementing an internship program this summer and you would like more information on FLSA standards, please contact your local staffing office. Midwest Staffing Group offers options for internships in addition to our standard temporary and direct placement staffing solutions!

Finally, experts advise that because of the variety of laws and legal issues that might arise, internship programs should be reviewed by counsel prior to implementation.

The DOL plans to continue reviewing the need for additional guidance on internships in the public and nonprofit sectors. For additional information, visit the DOL’s wage and hour division web site or call the agency’s toll-free information and helpline, 1-866-4USWAGE (1-866-487-9243).

Employee engagement is becoming top priority for many employers; in last month’s article we discussed the importance for businesses to understand the level of engagement of its workforce. An engaged workforce is a key driver to increase productivity, innovation and to maintain a competitive advantage. Although regularly measuring employee engagement through surveys is an important component to understand job satisfaction, there is a lot more management can do on a daily basis. The 'Employee Turnover and Retention' study by the CIPD, groups the reasons as to why many employees choose to resign into two distinctive groups:

The 'Pull' Factor: Sometimes it is the attraction of a new job or the prospect of a period outside the workforce which 'pulls' them.

The 'Push' Factor: On other occasions they are 'pushed' (due to dissatisfaction in their present jobs) to seek alternative employment.

Line manager’s who foster a “poor relationship” with employees can be a push factor behind an employee’s decision to leave their job. Often times, a poor relationship with a manager is hard to define, but a thorough exit interview is a step in the right direction in identifying potential issues. A recent study by Henley Business School highlighted factors employees identified as a way a line manager can affect engagement:

1. By fostering a participative, facilitative and empowering management style - not controlling or micro-managing
2. By being approachable, available and open and willing to share thoughts and feelings
3. By giving ongoing, constructive, open, direct and timely feedback
4. By working with honesty, authenticity and competence

Organizations should also examine ways to support line managers in engaging their employee’s. This might include setting engagement-based targets for management which are linked to rewards, team goals and team rewards. According to the same study, a lack of training, development and career opportunities were also major reasons why many employees resigned from their jobs. More companies are now implementing a workforce management approach as part of a strategy to help them identify unutilized skills within the company and the best ways to develop them. A workforce management strategy of fully utilizing skills is of particular importance in the current economy with many businesses running lean.

Organizations that view employee engagement as an ongoing process rather than a once a year survey are sure to see a more productive workforce! Midwest Staffing Group has a team of dedicated HR professionals that are ready to assist your organization in evaluating and implementing a comprehensive workforce management strategy through a variety of programs including line manager training, diagnostic survey’s and a variety of other methods! Contact your local branch office for more information about how we can assist your organization reach your strategic workforce goals.

Does your organization have a concern about the impact that the long recession has had on employee morale and engagement? Are you wondering how your current work force is holding up and if there’s anything you could do to improve the environment? As many organizations may have put off hiring to make up for revenue lost they have also turned to their current workforce to boost productivity, work longer hours and to take on additional responsibility.

In addition to increased workloads, remaining employees might have to deal with additional measures such as salary freezes, furloughs, reduced retirement and health benefits. Many organizations have also conducted layoffs at least once over the course of the recession which also impacts employee morale.

As employers are asking their employee’s to do more with less, it is essential that employer’s understand the level of engagement of their employee’s to ensure top performance. Employee engagement can be measured through various measures, but perhaps one of the more effective ways is through an employee engagement survey. Midwest Staffing group conducts annual engagement survey’s and selects actionable items to improve for the next year. We have an experienced HR team that is dedicated to assisting our client’s measure and improve their employee engagement levels! Feel free to contact our HR department to discover how we might be able to assist your organization.

If you wish to develop your own, Gallop has created 12 basic questions to discover engagement levels. This is a great starting point to help you develop your own survey! http://www.workforce.com

After you have developed your questions, one tool that helps measure morale is a web-based survey application called "Survey Monkey". Organizations can customize the surveys to meet their needs on a variety of topics and use it to supplement the objectives of larger strategic initiatives. Measuring employee engagement levels is a great first step to improving a work environment; just ensure your organization is ready to address what it uncovers!

While we may not want to admit it, “recession” is the buzzword of the day. People across the country have had to do more with less, some have lost their jobs, and many companies are hesitant to hire new employees. Minnesota currently ranks 13th in the percentage of unemployed individuals at 7 percent. However, staffing companies appear to be a beacon of hope in the midst of economic crisis. Experts believe that increases in staffing employment are an indication of a rebounding economy.

For years, researchers have argued in favor of staffing firms and their ability to gauge economic vitality. Some go further to suggest that increases in staffing jobs are key indicators of an end to a recession. These times being some of the most difficult in recent memory, a favorable increase in staffing jobs can be seen as a light at the end of the tunnel. “A sustained upturn in temporary help employment would signal the end of the current recession,” note researchers on behalf of the American Staffing Association. ASA’s report further indicates that the economy would start to rebound within three months of a sustained upturn, based on statistical trends from the last three recessions.

The Bureau of Labor Statistics released welcome news earlier this month, reporting that for the period between December 2009 and January 2010, temporary employment increased by some 250,000 jobs. This increase in staffing employment makes last month the best January in over twenty years, according the BLS. Further, temporary employment has been on a steady increase since September 2009. This means companies are becoming more confident in the strength of the economy, have increased workloads, and are looking for temporary solutions to improve workflow.

Staffing firms to the rescue! Recent activity in quite a few economic sectors indicate that companies are seeking temporary workers to fulfill vital functions, notes John Henka, sales manager for Midwest Staffing. “Some of our largest clients really ramped up in January,” he said. “These companies are starting to see that we act as a buffer, allowing them to hire employees on a temporary basis with the option of becoming permanent.” John said that he has seen an increase in staffing requests in manufacturing and government sectors; the medical and food industries are also gaining considerable speed.

Whether all this spells an end to the deepest recession since the Great Depression is yet to be determined. “My hope is that the national upturn in staffing employment will have a ripple effect and a lasting impact,” said Jeff Merwin, business development specialist for Midwest Staffing. “Right now, I am planting seeds by telling clients how we can help them when things turn around.” If current trends in staffing employment continue to remain stable—and, hopefully, increase—the American economy may be well on its way to a full recovery.

Today’s companies are utilizing temporary employees more than ever before. As the number of companies utilizing a temporary workforce grows, so does the need to take a closer look at employment law in this area. The ideal way to avoid co-employment issues is to partner with an experienced staffing provider that has established policies to ensure compliance with employment laws.

What is Co-employment?

Co-employment arises in situations where two companies maintain control over an employee’s work. This typically occurs when companies utilize temporary or contingent employees as part of their workforce.

In most temporary staffing arrangements, the client is responsible for the day-to-day direction of the temporary employee, while the staffing company is responsible for all of the other employment aspects of the temporary employee’s assignment. Typically, a provider of staffing services:

1. Recruits, screens, interviews, hires, disciplines and terminates the temporary employee.
2. Maintains all necessary personnel and payroll records, including drug screens and background checks.
3. Computes wages and withholds applicable taxes.
4. Remits employee withholdings to and makes employer contributions for federal FICA and federal and state unemployment insurance payments.
5. Pays net wages directly to the temporary employee.
6. Provides Workers’ Compensation insurance coverage.
7. Resolves the temporary employee’s complaints and grievances.
8. At the request of the client, for any valid legal reason, removes the temporary employee assigned to the client.

How KeyStaff Helps Manage Co-employment

For the co-employment issues described above, we partner with our clients to ensure that each of us fulfills our role in the relationship with temporary employees. While client employees are regularly involved in the supervision of the actual work performed by our temporary employees, we take great care to ensure we maintain control of the employment relationship at all times. We accomplish this by adhering to a few best practices:

1. All aspects of the economic relationship with temporary employees (e.g. payroll, raises, bonuses, benefits) are administered by KeyStaff without client involvement. The client provides performance feedback to determine which temporary employees are eligible for bonuses but KeyStaff administers the programs.
2. All communications regarding the length or termination of employment are handled by KeyStaff without client involvement.
3. Employment-related issues that arise between temporary employees and client employees are promptly communicated by the client to KeyStaff staffing managers. This practice enables KeyStaff and the client to resolve these issues effectively.
4. We have implemented an open communication policy so that temporary employee issues are recognized early and addressed by KeyStaff staffing managers before they escalate.

By implementing the above practices, KeyStaff has been successful in avoiding co-employment issues with our clients. In addition, if issues should arise, we have the support of our experienced human resources and legal staff to advise and assist in these matters. We are committed to providing superior service to our clients in all aspects of our partnership, from properly managing co-employment risks to supplying a high quality workforce!

Congress and the President have extended and expanded the COBRA premium subsidy which will allow more individuals to take advantage of federal assistance. The new legislation is part of the Department of Defense Appropriations Act, 2010 which extends the COBRA subsidy’s eligibility period for two months and extends the maximum duration of the federal assistance from nine months to 15 months. Employers will be required to provide additional notification to qualifying employees of regarding their rights under the Act.

At this point, the Department of Labor (DOL) has not provided a sample of the additional notice required under the provision. However, the new provision does require additional notices describing the new 15-month premium subsidy and other amendments. It will be important for all employers’s to stay up to date regarding the new notices and any sample’s issued by the DOL. Notices should be sent to all assistance-eligible individuals who are on COBRA on or after November 1, 2009, or whose qualifying event is a termination of employment occurring on or after that date.

Credit/Refund Processes for COBRA Subsidy Extension

Credit and refund procedures will be necessary to accommodate assistance-eligible individuals (AEIs) who paid more than the required 35 percent COBRA premium since the enactment of the subsidy extension. We recommend working closely with your benefits department to ensure participants receive the proper refund and that the amount your organization paid out is reimbursed through a premium reduction through a payroll tax credit. As always, Midwest Staffing Group is available as a resource and will keep your organization updated on any critical changes!