Are Waistlines Rising Along With Increased Employee Payroll Taxes? Survey Says Yes!

October 19, 2013 by

Employee Payroll Tax PeanutsA survey by Harris Interactive for the American Institute of CPAs indicates that the 2013 increase in employee payroll taxes has created tremendous stress on employers and employees alike.  Of course it is obvious that paying more in payroll taxes means an employee takes less money home to their families; however, the stress of how to make ends meet is taking its toll in other ways as well:  particularly in employee health and relationships.

Many Americans are feeling tremendous financial stress in this economy and, accordingly, it is taking great toll on their waistlines, their sleep patterns and their friendships.  The Harris survey, conducted on behalf of the American Institute of CPAs asked “1,011 U.S. adults to name all the ways financial stress is affecting their lives. Of those who rated their financial stress as “very” or “somewhat high,” nearly half (47%) said they are sleeping less, while 43% said they have less patience with friends or are seeing them less often; and 31% are eating more junk food or gaining weight.”

The survey seems like it is confirming what most Americans are feeling, and comes as common sense.  Junk food is cheap.  Eating fresh fruits and vegetables is becoming more costly.  And, it appears there is less time to grow a garden, should one have a plot of ground in which to do so.  Americans are working harder and longer hours than ever before.  After a working mom picks up her kids from day care, at 6:00 at night, and it is near payday, she may have only $15 that has to stretch a few days – the solution she may choose – McDonalds, Taco Bell, or the like.  After doing homework and baths with the kids and getting them to sleep, does she have time to meet with friends? There would be no time for that. Finally, she could sleep a lot sounder if she had $200 to last until the next pay check, instead of $15.

AICPA National CPA Financial Literacy Commission chairman Ernie Almonte commented: “Mounting money pressures are making Americans cranky, tired and unhealthy. This can lead to a double whammy, with ensuing physical and emotional stress potentially leading to higher long-term costs. Americans must find ways to cope with money stress even when financial challenges seem daunting.”

Filed Under: Blog, California Labor Law Tagged With: , , ,

Workplace Harassment or Just Playful Conversation?

August 29, 2013 by

Workplace Harassment

Q: I’m an employer of a local business, and recently there’s been a problem between several employees. One of the employees claims the others are sexually harassing her. I’m not sure the conduct qualifies as harassment, and it seems like just playful conversation. What should I do?

A: A claim of harassment by an employee should be taken very seriously by the employer, as harassment of any type, sexual, discriminatory or otherwise, continues to be a common problem in the workplace in California. The California Code of Regulations is helpful in identifying several different layers of sexual harassment, but these principles may also be applied to other types of harassment as well:

  1. Where submission to harassment is a condition of employment;
  2. Where the choice to submit or not affects employment decisions;
  3. When the purpose or effect of the conduct alleged as harassment unreasonably interferes with the employee’s work performance;
  4. When the purpose or effect of the conduct alleged as harassment unreasonably interferes with the employee’s work performance; or
  5. When the conduct alleged to be harassment creates an intimidating, hostile or offensive work environment.

Fair Employment and Housing Act

2 Cal Code Regs §§7287.6(b), 7291.1(f)(1). These categories set the prohibitions on the variety of conduct by employers and co-employees. Under the Fair Employment and Housing Act (FEHA), California law defines two types of methods to prove sexual harassment in the workplace: conduct which establishes a quid pro quo, and conduct creating a hostile work environment. Lyle v. Warner Brothers Television Productions (2006) 38 Cal.4th 264, 42 Cal.Rptr.3d 2, 11.

Sexual Favoritism

Does your employee contend that the harassment is a result of some quid pro quo arrangement with another employee or manager? The California Supreme Court defined such quid pro quo harassment as conduct that leads to “sexual favoritism”, including the award of job benefits or bonuses if the employee submits to sexual advances. Miller v. Department of Corrections (2005) 36 Cal.4th 446, 461-462. However, this also incorporates the converse, such as a manager threatening to demote or take punitive action against an employee should they not submit to sexual advances or conduct requested, expressly or impliedly.

Your employee may also be referencing a claim of a hostile work environment. The California Supreme Court has also set forth the standards in Lyle in relation to what constitutes a hostile work environment sufficient to create harassment:

Under Title VII, a hostile work environment sexual harassment claim requires a plaintiff employee to show she was subjected to sexual advances, conduct, or comments that were (1) unwelcome (see Meritor, supra, 477 U.S. at p. 68, 106 S.Ct. 2399); (2) because of sex (Oncale v. Sundowner Offshore Services, Inc. (1998) 523 U.S. 75, 80-81, 118 S.Ct. 998, 140 L.Ed.2d 201 (Oncale)); and (3) sufficiently severe or pervasive to alter the conditions of her employment and create an abusive work environment (id. at p. 81, 118 S.Ct. 998; Meritor, supra, 477 U.S. at p. 67, 106 S.Ct. 2399). In addition, she must establish the offending conduct was imputable to her employer. (Meritor, supra, 477 U.S. at pp. 69-73, 106 S.Ct. 2399.)

Lyle, 42 Cal.Rptr.3d at 12. Whenever an employee performs any type of investigation prompted by a claim of harassment, these three elements are necessary and essential questions to ask and conclusions to determine before taking any action. It may very well be that such “harassment” is in fact nothing more than workplace conversation which the employee has taken out of context, for the mere discussion of sex or vulgar, sexual language is generally insufficient to show the harassment was “because of sex”; the conduct must involve some treatment to the employee on the basis of sex itself.

In either sense, every employer should take a claim of harassment seriously. [Read more…]

Filed Under: Blog, California Employment Law, California Labor Law, Employment Law, Labor Law, News, Workplace Harassment Tagged With: , , , , ,

Sexual Harassment on the “Big Bang” Theory

June 13, 2013 by

WHAT EMPLOYERS NEED TO KNOWSexual Harassment and the big bang theory

“The whole universe is in a hot dense state . . .” well, in regard to sexual harassment in the work place, yes, it is.  Employers often find sexual harassment lawsuits as quite a surprise, or as the labor lawyers at Beck Law call it, a very expensive “Big Bang.”

Sexual Harassment In The Workplace Today

A recent episode of The Big Bang Theory on  CBS  shows us the realities and confusion of the human experience in conjunction with current laws regarding what is considered sexual harassment in the workplace today.

Take it from Sheldon Cooper, who tries to counsel an employee by showing her photos of venereal diseases and  telling her “Your ovaries are squirting so much goofy juice into your brain you don’t know which way is up.”

Sheldon believes he is being completely professional here.  Sheldon understands science, not social nuances.  Employers must take heed of Sheldon’s fumbling and carefully train supervisors with in depth role playing to ensure that they fully understand what actions are permissible in the workplace.

To make matters worse, because he is Sheldon, he tells his HR manager that she is “brown sugar . . . a slave to her biological urges” and called her “an egg salad sandwich.”

The episode demonstrates that although an employee’s intentions can be very innocent and honest, and meant to provide positive re-enforcement, it does not necessarily matter what the employee/ supervisor meant to say, or what their intentions were. What matters is how the receiver of the information perceived what was said. An employer must perform due diligence training of supervisors and employees to ensure that they deliver the correct message, in the correct tone and manner.

Employees, like Sheldon Cooper, may be totally unaware of what they are saying and how they are affecting those around them.

The difficulty here lies in social nuance. The skill is in the delivery of the message, rather than the intent, although one would never show web photos of venereal diseases under any circumstances to a fellow employee, this is just for TV.  Clearly, Sheldon’s intent is not malicious, the effect is.

Language training in the workplace, so that employees deliver the correct message is complex for an employer and a supervisor to grasp:  it is more about the meaning behind the words, and not always the words themselves (although with Sheldon the words were clearly wrong as well).

Employers need to keep abreast in knowing the current legalities of what to say and what not to say in the workplace. It is about what the law determines to be appropriate, yet not all persons understand how to behave, nor is it necessarily in their nature to grasp the meaning of what the laws dictate, even when they try to behave with well intentions to all employees.

Any time a harassment complaint is filed, the employer is legally obligated to investigate and reconcile the issue. Some situations require that the employee no longer works in close proximity to others until an independent outside investigation is performed, and sometimes employees must be terminated. There are many factors to consider when handling a sexual harassment complaint as an employer. Legal counsel and independent investigations are provided by the attorneys at Beck Law PC regarding sexual harassment in the workplace.

Filed Under: Blog, California Employment Law, California Labor Law, Employment Law, Labor Law Tagged With: ,

Why Does My Small Business Need an Employee Handbook?

April 25, 2013 by
Employee Handbook for a small businessToo small for an employee handbook?

One of the first questions we ask a new small business owner client is: Do you have an employee handbook?  More often than not, they say “NO” and on the rare occasion that they do have one, it was written years ago, has never been updated and sits in some storage room nearly forgotten.

It’s remarkable the number of small businesses that have no handbook at all!  There are many good reasons to create an employee handbook, and in fact, small businesses can do themselves great financial harm without one.

Courts, the Department of Labor, and the EEOC will automatically assume, if you have no employee handbook, that you have not informed your employees of the up to date information that you are legally bound to tell employees in writing, such as their right to vote, their earnings breakdown, their right to pregnancy leave and so forth. The list of what businesses must legally tell employees grows longer every year.  Not having an employee handbook may lead these agencies to dig more deeply into your business practices to determine your compliance with wall postings, payroll accounts and such, which could then lead to severe penalties if you are not in compliance and up to date.

Having an employee handbook, and updating it annually, can protect an employer from liability if an employee decides to sue.  The employee handbook is a document where important policies and procedures are outlined in detail and explained to the workforce.

Here are some guidelines as to what must be included in the company employee handbook:

  • Workplace rules (e.g., work schedules, length of breaks, days off, etc.).
  • Strong language that supports an “off clock” break policy and enforcement of such;
  • Description of the culture of your organization;
  • Employment at Will language written appropriately with the inclusion that the business owner has the only right to choose an employment agreement;
  • Anti-discrimination policies;
  • Sexual harassment policies;
  • Leave policies;
  • Open door policies;
  • Anti-retaliation policies;
  • Termination procedures;
  • Insurance and COBRA information;
  • Pregnancy and Postpartum policies;
  • Exempt vs. Non-Exempt language;
  • Clocking in to work policies;
  • No working off clock policy;
  • Overtime policies;
  • FTO/Vacation policies;
  • Right to Vote policy;
  • Non-discriminatory dress code policies;
  • Non-discriminatory smoking policies;
  • Disclaimer regarding technology ownership;
  • Technology Use policies;
  • Employee Fiduciary Duty to Employer language;
  • Employee Duty of Loyalty to Employer language.

All employees should be given time to review the employee manual and then be required to sign and date a letter of agreement or acknowledgement page that clearly states they’ve read the handbook and understand its contents.

Employee handbooks should be updated annually. The new employee handbook should then be , re-distributed and A new letter of agreement or acknowledgement page should be signed by all employees and saved in each employee’s file. [Read more…]

Filed Under: Employee Handbook, Employment Law, News Tagged With: , , , , , ,

Current California Lunch Break and Rest Period Employee Labor Laws

October 25, 2012 by

The Santa Rosa Labor Law Attorneys at Beck Law P.C. work with both employees and employers in regard to all areas governing compliance with California Labor / Wage and Hour Laws.  So as not to violate current California lunch break and rest period employee labor laws, as of April 12, 2012 it is a California requirement that all non-exempt employees get uninterrupted meal breaks and rest periods according to a decision by the Supreme Court (Brinker vs. Superior Court) See Brinker Restaurant Corp. v. Superior Court (2012) 53 Cal.4th 1004.  The Petaluma Employment Law Lawyers at Beck Law P.C. suggest to employers that all Employee Handbooks and Policies are updated by an experienced labor attorney to ensure compliance with these new laws so that overtime violations will be avoided.  In turn, we encourage employees to contact an experienced labor and employment lawyer, such as Beck Law P.C., if they feel their legal rights are being violated.

GENERAL GUIDELINES FOR EMPLOYERS AND EMPLOYEES

The employer must relieve the employee of all duty:  The Wage and Hour Labor Law Attorneys Beck Law P.C. interpret this to mean that literally ALL NON-EXEMPT EMPLOYEE DUTY must be relieved. We encourage employers to have built in contingencies to their policies to ensure that non-exempt employees do not eat at their desks or take any phone calls or instructions while they are “clocked out”.

The employer must relinquish control over all activities of the employee:  The Ukiah Labor Attorneys at Beck Law P.C. suggest all of our business clients provide a break area for employees and to encourage non-exempt employees to take a full break as well as leave the premises whenever necessary.

The employer must permit an uninterrupted 30-minute break:  The Lake County Labor and Employment Lawyers at Beck Law P.C. suggest our business clients provide a break schedule and appoint an Office Supervisor that monitors all non-exempt employees to make sure breaks are taken in a timely manner.  All non-exempt employees must “clock in” and “clock out” and are never permitted to work at home or “off clock.”

The employer must not impede or discourage the employee from taking their 30-minute meal break:  In order to demonstrate compliance with this law as well as avoid meal period violations, the attorneys at Beck Law P.C. suggests employers hire experienced employment law attorneys to prepare the appropriate legal language to be included in all Employer Handbooks and Policies that clearly outlines the break schedule stating that employees have a responsibility to take their breaks in a timely manner.  Additionally, we encourage fellow employees to never discuss work related matters with a non-exempt employee while they are taking a break.

All Non-Exempt Employee Lunch Breaks and Rest Periods Must be Provided and Taken in a Timely Manner:  Current California labor laws for rest breaks and meal periods require that the employer provide non-exempt employees with a 30 minute uninterrupted meal break after 5 hours of work (unless the employee’s workday is completed within 6 hours), and a 10 minute rest break time after each 3 ½ hours of work.

10 Minute Breaks Must Be Paid By Employer.  Not only must an employer require a non-exempt employee to take an un-interrupted lunch or Rest break, but the employer must pay for it, according to current labor laws.  rest break violations and meal break violations can occur if a non-exempt employee is interrupted during a break or meal period and said employee is entitled to additional compensation for working through a meal break.  In addition to the one hour of pay, the extra compensation can increase the amount of overtime that you are due.

Employers May Not Pressure or Coerce the Non-Exempt Employee to Forgo a Lunch or Rest Break:  Only if ALL of the above are met will an employee be deemed to have taken a break. In particular, the California Supreme Court noted that the “wage order and the governing statute do not countenance an employer’s exerting coercion against the taking of, creating incentives to forego, or otherwise encouraging the skipping of legally protected breaks.”

What this means, in simple terms is:  A written company policy stating that you permit meal breaks and rest periods will not be legal if you do not enforce your employees to take timely breaks, that are monitored with accurate time keeping records that demonstrate that non-exempt employees “clocked in” and “clocked out” on time, every work day.  Even on extremely busy days, managers must not pressure non-exempt employees to work through breaks and must ensure rest and meal breaks are taken on time and un-interrupted, or compensate the employee in the amount of one hour’s wage for each interruption or violation.

Missed Meal Breaks and Rest Periods are considered a Wage and Not a Penalty:  In Murphy v. Kenneth Cole Productions, Inc. the courts decided that missed meal breaks are considered a wage and not a penalty. What this means is under California labor law code meal break rule violations can be collected by employees for 3 years and sometimes 4 years under the California unfair competition statute, whereas a penalty is only collectable for 1 year.

What are the Timing Requirements that Comply with First or Second Meal Periods during the Workday?

Train your management to keep in mind the 5-hour mark.  When an employee works more than five hours, a meal period must be provided no later than the end of the employee’s fifth hour of work (simply stated:  no later than the start of the employee’s sixth hour of work).  When an employee works of a period of more than 10 hours, a second meal period must be provided no later than the end of the employee’s tenth hours of work (no later than the start of the employee’s eleventh hour of work).

Filed Under: Blog, California Employment Law, California Labor Law, Employment Law, Labor Law, Meal Break Violations, News, Overtime Violations, Rest Break Violations, Wage and Hour Law Tagged With: , , , , , , , , , , ,

Santa Rosa Employer Employee Data Privacy Protection

October 19, 2012 by

internet securityNew Nightmare for Santa Rosa Employer Employee Data Privacy Protection & Employer Responsibilities

Scenario:  A key employee resigns and you find that they have shared private and personal information about your customers on Facebook.

Nowadays, employers collect a great deal of personal information about their employees, customers, patients, clients, and others along the course of the work day. Companies use employees’ personal information for many reasons such as administration of payroll, employee benefit plans, and evaluation of employment applications, the handling of independent contractors, terminated employees, retired employees and so forth.  In this computer dependent age, personal data is being shared and transferred between organizations online; and thus, maintaining compliance with applicable data privacy laws is an ever increasing responsibility of employers.

Companies need to be aware of their obligations under the profusion of data protection laws and regulations that govern the collection, use and transfer of personal information. Additionally, data privacy laws include not only active employee information, but extend to any non-employee groups whose personal data they may acquire.

Minimizing Employer Risk

The Petaluma employment law attorneys at Beck Law P.C. suggest the following to attempt to minimize employer risk.

Companies should seek counsel annually with an experienced employment law attorney, to acquire the appropriate legal interpretive guidance on compliance matters so as to avoid legal violations and security breaches involving employee personal data.

Policies should include legal language specifically directed to employee procedures in regard to data privacy to ensure the best practices that aim to limit the amount of personal data they collect, process, transfer and store.

Companies should limit access to personal data and provide training to staff that handles personal data.

Companies should include legal language in their policies stating that business computers will be monitored and reviewed periodically to ensure employees are applying appropriate security measures regarding personal data.

Even Still:   All the precautionary measures in the world will not stop a dishonest employee from selling your business’s personal information, such as your customer social security numbers online and you, as the business owner will be held accountable for their actions.

There is absolutely nothing an employer can to do to prevent an employee from texting information from their personal phone or simpler still, writing down the information and throwing it in their purse or pocket before walking out the door.

Therefore, the labor and employment attorneys at Beck Law P.C. offer these further tips:

Perform all due diligence during the interview process when hiring a new employee.  Take your time, and have multiple interviews so that you begin to trust the person you are about to hire, before you hire them.  Call all references and carefully listen to not only what they say, but more importantly, what they don’t say.  Ask lots of questions to cull out information that may give you more clues to this person’s integrity.  Use your intuition, and perform all interviews with other trusted staff members to get their feedback,  and if any one of you feel something is not quite right with this person’s integrity, move on until you feel very comfortable with who you are going to hire.

For current employees:  Know your employees, be attentive and listen to them, use good communication and eye contact.  Always honor and praise good work.  Be on the look- out for suspicious behavior such as when an employee uses negative body language or challenges you in ways that you find inappropriate to the situation, as this may an indication of guilt that they may be doing something behind your back.  Listen to other employees who report that they do not feel comfortable about another employee’s actions.  If you feel a negative feeling about an employee, trust your feeling, as you are most likely correct.  If you suspect and employee of dishonesty, begin your due diligence research and contact an experienced employment attorney, such as Beck Law P.C. to handle the appropriate legal remedy and counseling process to remove said employee from your work place.

Filed Under: Blog, Employee Data Privacy, Employer Data Privacy, Employment Law Tagged With: , , , , , , , , , , ,
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