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Author: Andie Burjek

Posted on March 13, 2018June 29, 2023

Tattoos at Work: More Acceptance, Yet Still Some Legal Risk

tattoos in the workplace

I am not a tattoo person. Yet, a whole lot of people are. And the numbers are increasing.

In fact, according to one recent survey, 3 in 10 Americans have at least one tattoo, up 50% in just four years. And, the younger you are, the more likely you are to sport a tattoo: 47% of millennials have a tattoo, as compared to 36% of gen Xers and only 13% of baby boomers.

With tattoos becoming more prevalent, it appears employers are becoming more accepting. The same poll revealed that tattoos are on the rise in professions ranging from teachers to doctors to judges.

Yet, your attitude may differ. You may demand a more traditionally professional look, and may not want someone with a tattoo representing your business or your brand.

There is nothing discriminatory on its face about refusing to hire someone with a tattoo. It may simply be a decision of the type of image that your company wants to project. Of course, it matters that such a policy is applied non-discriminatorily. In other words, a company can’t have two standards to visible body art—one for men and one for women, or one for whites and one for blacks.

Indeed, employers have gotten themselves in some legal trouble for using a tattoo as a proxy to reach an employment decision based on a protected class.

For example, in one case, a restaurant was alleged to have violated Title VII when it refused to hire a practitioner of Kemeticism (a religion with roots in ancient Egypt). The applicant he had tattoos on each wrist signifying the Egyptian sun god Ra. He argued that it would be a sin for him to hide the tattoos because of their religious significance.

In another case, an African-American employee claimed he was denied a promotion, and later fired, by his white supervisor, who bore a Confederate flag tattoo.

In yet another, UPS was accused of sexual harassment based on employees’ mistreatment of the plaintiff with a “lesbian tattoo.”

The first of these cases settled on the eve of their respective trials; the third resulted in a plainiff’s verdict.

So, what does all this mean? It means that while employers do have discretion in hiring or firing because of tattoos, they must be careful to ensure that such actions are (1) not because of a protected class, and (2) grounded in a legitimate business reason. Otherwise, the tattoo in question might be the employer getting tattooed with a big, fat verdict.

Jon Hyman is a partner at Meyers, Roman, Friedberg & Lewis in Cleveland. Comment below or email editors@workforce.com. Follow Hyman’s blog at Workforce.com/PracticalEmployer.

Posted on March 12, 2018June 29, 2023

Department of Labor Trying to Get Employees PAID for Inadvertent FLSA Violations

Jon Hyman The Practical Employer

For almost as long as I’ve been writing this blog, I’ve been preaching the proactive benefits of wage and hour audits for employers (e.g., here and here).

It appears that the Department of Labor agrees.

Last week, it announced a nationwide pilot program—the Payroll Audit Independent Determination (PAID) program—which will permit employers to self-report FLSA violations to the Department of Labor without risk of litigation or enforcement proceedings. It enables employers to resolve inadvertent minimum wage and overtime violations without litigation.

As explained by Bryan Jarrett, Acting Administrator for the DOL’s Wage and Hour Division:

At times, employers may be the first to uncover violations of overtime or minimum wage laws. Many employers prefer to correct their mistakes and voluntarily pay their employees the wages they are owed. Our current laws, however, preclude employers from simply paying the wages due to conclusively settle overtime or minimum wage violations. Fearing full-scale federal investigations or costly litigation, employers may choose to not address the violations at all — resulting in losses to employees, employers, and taxpayers.

Some of PAID’s key features:
  • It’s open to any FLSA-covered employer to redress any FLSA overtime or minimum wage violations.
  • It’s only available for claims that are not yet subject to investigation or litigation.
  • It requires that employers review WHD’s compliance assistance materials, carefully audit their pay practices, and agree to correct the at-issue pay practices moving forward.
  • It permits the resolution of violations without liquidated damages or civil monetary penalties.
  • It fosters cooperation between employers, employees, and the DOL for employers to find and correct pay errors and ensure employees are paid what they are owed as quickly as possible.
  • It fosters voluntary settlements of FLSA claims without employees incurring legal expenses or attorneys’ fees.

Critics refer to this program as a “get out of jail free” card for wage-and-hour scofflaws. That argument only holds water, however, if you assume that most employers are intentionally violating the FLSA—an argument with which longtime readers know I absolutely disagree. Plus, if you’re an employer intentionally stealing wages from your employees, are you really going to blow the whistle on yourself to the DOL? Or is it more likely that you will keep right on stealing until someone catches you?

Yet, if you know that you’ve violated the FLSA in how you’ve paid your employees minimum wage or overtime, it’s best to self correct by making employees whole for the wages they lost. You are always free to do this on your own, though, without involving the DOL.

I worry that participating in this program may fast-track an employer onto some super secret DOL list for future FLSA audits. As the DOL itself flags, “By allowing employers to participate in the PAID program, WHD does not waive its right to conduct any future investigations of the employer.”

Unless and until the DOL confirms that it will not use violations resolved under this program against employers in future audits to find repeat violations and willfulness, I have some concerns about employers using this program.
Jon Hyman is a partner at Meyers, Roman, Friedberg & Lewis in Cleveland. Comment below or email editors@workforce.com. Follow Hyman’s blog at Workforce.com/PracticalEmployer.
Posted on March 8, 2018June 29, 2023

Clampdown on Refugees Conflicts With Push for Employment

As immigration issues swirl around businesses seeking to hire foreign talent, a new guide published by the Tent Foundation is still touting the benefits of hiring refugees.

The “U.S. Employers’ Guide to Hiring Refugees” highlights the positive aspects businesses reap when hiring refugees. Diversity tops the list of what refugees bring to the workplace, according to Gideon Maltz, executive director of Tent Foundation, a nonprofit organization that works with businesses to help them integrate refugee workers into their workplace. Whether it’s experience or language, refugees can provide new insights from their respective countries.

“A more diverse workforce fosters new ideas and innovations, which is necessary in our more competitive, global market,” Maltz said.

Finding those refugee workers poses a challenge, based on recent statistics.

A recent report in the San Diego Union-Tribune indicated the number of refugees entering San Diego has declined significantly following the Trump administration’s restriction on the refugee resettlement program. According to the Refugee Processing Center, as of February 2018, San Diego has settled 40 refugees, compared to more than 1,100 the same time last year. That reflects national numbers, too. This year 6,708 refugees have been settled, compared to 32,448 last year, statistics show. According to its website, the Refugee Processing Center is operated by the U.S Department of State Bureau of Population, Refugees, and Migration in Arlington, Virginia.

Gideon Maltz
Gideon Maltz

Based on the Tent Foundation guide, a refugee is “an individual who is unable to return to his or her home country due to a well-founded fear of persecution based on race, religion, nationality, political opinion or social group.”

Employers have options beyond refugees if they want to diversify their workforce with foreign workers. Immigrants on an H-1B visa, which allows U.S. companies to employ foreign workers in specialty occupations, also bring with them their foreign experiences and knowledge.

Many foreign workers possess degrees in STEM subjects, according to Richard Burke, CEO of Envoy Global, an enterprise platform that works with companies to make the hiring and managing process of a global workforce easier. Burke said foreign workers, such as immigrants, have a better educational background than their U.S. counterparts.

“The problem is U.S. universities are not issuing enough STEM degrees to U.S. citizens,” said Burke. “There’s a big gap between the supply of U.S.-born folks with the right educational criteria and a demand for these positions.”

Burke reasoned that businesses could be putting more of an effort into introducing more immigrants because they see the benefit diversity brings to a company’s culture.

Richard Burke
Richard Burke

“To address the supply and demand imbalance employers are saying, ‘We have opportunities, we want to grow, we want to contribute to the economy,’ ” said Burke. “But to do that we need the talent and the workers to do it. And the only way to do it is through foreign national talent.”

Still, why now? Businesses may hesitate when hiring foreigners at a time when immigration issues and admitting refugees into the United States remains a controversial topic.

“We as a country would be shortsighted if we didn’t want to take advantage of this foreign talent and have them create jobs in the United States,” Burke said.

Envoy Global’s “2018 Immigration Trends Report” looks at opinions of employers on immigration and their hiring process. Based on the report, businesses that would like to implement this strategy are finding it difficult to do so in the face of the tougher immigration standards.

“Eighty-five percent of respondents say the U.S immigration program policies have impacted their ability to hire,” said Burke.

For potential employers that want to hire refugees, Maltz advises them to reach out to their local resettlement agency since those organizations can help with logistical details. Managers should also prepare to spend extra money on English as second language courses and other programs to help new workers acclimate to their new home.

“[It] may require some upfront investments but these are small in relation to the benefits refugees will bring to your company,” Maltz said.

Those who have implemented the strategy of hiring refugees have seen positive results.

“Employers consistently find that by investing in refugee employees they earn their loyalty and see higher retention rates,” Maltz said.

Based on the guide, 17 percent of refugees are coming from Myanmar, 16 percent from the Democratic Republic of Congo, 14 percent from Iraq, 12 percent from Somalia, and 10 percent from Syria. The guide focuses on entry-level positions in industries such as manufacturing and service, according to Maltz.

“[Refugees] are incredibly motivated, resilient and hardworking people who are looking to rebuild their lives and regain a sense of normalcy after many years of chaos,” says Maltz.

Aysha Ashley Househ is a Workforce intern. Comment below or email editors@workforce.com.

Posted on March 8, 2018June 29, 2023

HR 1313 Updates and Genetic Testing Controversies Over Time

I recently was reminded of just how new the field of genetics is and how the discussions about genetic privacy are fascinating and relevant in the workplace. That’s where genetic-testing benefits or perks are sometimes touted as a way for employees to learn about genetic risks they have and plan for them accordingly.

I finally started reading The Gene — a New York Times bestseller by Siddhartha Mukherjee from 2016. The Gene is about the history of genetic theory and history from Aristotle and Pythagoras to Charles Darwin and Gregor Mendel and beyond. It also explores darker parts of genetic history like the eugenics movement in America and Nazi Germany’s attempt to create a so-called genetically superior race.

This 550-page-long page-turner was in part a celebration of significant scientific discoveries in genetics and in part a warning that people are capable of using these discoveries and theories to do major harm.

In 1976, Herb Boyer and Robert Swanson founded biotech company Genentech and created many important medicines out of genes, including insulin, and patented these creations. But their contemporaries wondered, is it right to patent a method you discovered while funded by public research money? Also, can you patent something that naturally is a part of every person’s body? Even now, many people have ethical objections to patenting genes.

In the 1800s Charles Darwin observed different-looking finches of the same species. He was fixated on their similarities, not their differences. This led to important discoveries in hereditary theory, mainly that these different-looking birds came from the same ancestor and adapted over time to different environments. The same could be applied to people, who were more similar than different and came from the same common ancestor.

On the other side of the coin, Darwin had a cousin, Francis Galton, who was also a scientist. He was more fixated on people’s differences than similarities and coined the term “eugenics” in 1883, according to The Gene. This was the idea that some people’s genes were better than other’s and that through selective breeding, humankind could keep only the best genes in its genepool. His idea eventually led to a eugenics movement in America in which undesirable people were forcibly made infertile so that their inferior genes were not continued. These “undesirables” included African Americans, white European immigrants and anyone deemed “feebleminded” by the courts, the book notes.

These are older examples from the book, but obviously a lot has happened from the 1980s on, like the Human Genome Project, experiments (some more successful than others) in gene therapy and many services that offer easy-to-use genetic testing kits like 23andMe, Ancestry DNA and Vitagene.

Genetic tech has entered the workplace. Some companies are offering genetic testing as a perk. Last March, Rep. Virginia Foxx introduced a bill, HR 1313, which would allow employers to offer health insurance premium rebates to employees who take part in workplace wellness programs, many of which include genetic screenings.

This led to some controversial reactions when some people worried that their companies could financially coerce them into genetic testing. News site Vox reported that those who opt out would have to pay $5,400 more a year for the average family plan than those who opt in, based off 2016 insurance price data. This sum might make opting out not viable to some employees. Advocates of the bill stressed that employees would have the option of opting in or opting out.

Let’s take this scenario above. The fundamental question, it seems, is that if this participating employee pays $5,000 less than a non-participating employee, is it truly optional? Is there a difference between a penalty and a reward in this context?

I’m inclined to say no, especially if genetic information is involved. Others would strongly disagree.

Here’s the most recent news on HR 1313 I could find, according to the DNA Geek:

“The bill has been lingering in various committees in the House of Representatives since it was introduced in March [2017]. It passed the Committee on Education and the Workforce back in the spring, but it’s been stagnating in the committees on Ways and Means and on Energy and Commerce since then. … On 11 December 2017, both committees ‘discharged’ the bill, meaning that they released it to be considered by the full House of Representatives without voting on it themselves. The bill is now on the House schedule to be considered for passage.”

The next steps would be passed by the House, passed by the Senate and then signed by the president.

Whatever your take is on HR 1313, it shows how tricky and messy issues involving genetic security and privacy are. There are others more qualified than me to talk about the controversies and disagreements in the genetics space. But for employers and employees, this debate over personal health and genetic information is noteworthy.

In the United States, the law that governs genetic privacy is the Genetic Information Nondiscrimination Act. GINA makes it illegal to discriminate people based on their genes in certain employment decisions and health insurance, but not outside those realms, like in life, disability or long-term care insurance. There have been cases, for example, where women have been denied life insurance as recently as 2016 because they tested positive for the breast cancer gene, BRCA1.

As LifeInsurance Post, a community of life insurance experts, warns, “The negatives of genetic discrimination far outweigh the positives. Thus, it’s important that you seriously consider whether you need to go for genetic testing or not. At the end of the day, it’s comes down to choosing between your life and life insurance.”

Even if you take a test in the workplace and your results cannot impact your employment or your health insurance, it could impact other types of insurance.

To get the life insurance industry’s point of view, by the way, read this Economist article, “The gene is out of the bottle: Genetic Testing Threatens Insurance Industry.”

“Asymmetry of information — when the consumer knows more than the insurer — is the industry’s worst nightmare. If predictive tests further improve and become more common while non-disclosure rules stay in place, some insurance products might eventually die out,” writes the author. This article does a good job at explaining the concerns of the insurance industry, while it also acknowledges what a tricky ethical area this is. Since the role of genes in disease development is still being studied, many people could be wrongly penalized for having a certain gene. The truth is that many other factors, like environment and chance, also impact whether or not a person will ultimately develop the disease.

Genetic privacy isn’t a fear that’s going away; it’ll only grow as our capability and understanding of genetics increases. It’s also not a fear based in fiction. Historically influential forces in society have used genetics to rationalize doing horrific things.

As someone who talks to employers on a regular basis, I believe most companies would not lean toward unethical use of their employees’ genomes. That being said, even a few bad eggs would be troublesome.

“This book is the story of the birth, growth, and future of one of the most powerful and dangerous ideas in the history of science,” writes Mukherjee in The Gene. Let’s not underestimate the power of this idea. As employers increasingly see a place for genetic tests somewhere in their organization, some employees may be very enthusiastic to take advantage of them while others may be justifiably weary.

Andie Burjek is an associate editor at Workforce. Comment below or email editors@workforce.com.

Posted on March 8, 2018June 29, 2023

6th Circuit Concludes That Title VII Prohibits LGBT Discrimination

Yesterday, the 6th Circuit Court of Appeals joined a growing number of federal appellate courts to hold that Title VII’s prohibition against sex discrimination expressly covers LGBT employees.

The claimant in EEOC v. R.G. &. G.R. Harris Funeral Homes [pdf], Aimee Stevens (formerly known as Anthony Stephens) was born biologically male, and presented as such when hired. The funeral home’s owner and operator, Thomas Rost, fired her shortly after she informed him that she intended to transition from male to female and would represent herself and dress as a woman while at work.

Last year, a Michigan federal court dismissed the EEOC’s lawsuit, concluding that Title VII does not expressly cover LGBT discrimination.

The 6th Circuit disagreed:

“We hold that the EEOC could pursue a claim under Title VII on the ground that the Funeral Home discriminated against Stephens on the basis of her transgender status and transitioning identity. The EEOC should have had the opportunity, either through a motion for summary judgment or at trial, to establish that the Funeral Home violated Title VII’s prohibition on discrimination on the basis of sex by firing Stephens because she was transgender and transitioning from male to female. …
Discrimination against employees, either because of their failure to conform to sex stereotypes or their transgender and transitioning status, is illegal under Title VII. The unrefuted facts show that the Funeral Home fired Stephens because she refused to abide by her employer’s stereotypical conception of her sex, and therefore the EEOC is entitled to summary judgment as to its unlawful-termination claim.”

The court also rejected the employer’s claim that applying Title VII’s proscriptions against sex discrimination to the Funeral Home would substantially burden Rost’s religious exercise.

Bravo, 6th Circuit, bravo.

I fully expect an appeal to the Supreme Court.

Fingers crossed hard that when SCOTUS finally takes up this issue, it does the right thing, the more thing, the just thing, and decides this issue once and for all in favor of LGBT civil rights.

Jon Hyman is a partner at Meyers, Roman, Friedberg & Lewis in Cleveland. Comment below or email editors@workforce.com. Follow Hyman’s blog at Workforce.com/PracticalEmployer.

Posted on March 2, 2018June 29, 2023

Giving Employees Permission to be Well

As you likely remember, last fall there was a huge data breach at Equifax, the nation’s largest credit bureau.

We were heads down, working though our busiest time of year: open enrollment. Amid all the chaos and advice about what people should do to protect themselves, my business partner, Isabelle, was concerned about our team taking steps to protect their credit. She knew that with our busy work schedule, they probably wouldn’t.

So in January, after things had settled down, Isabelle reminded our team about the breach. She encouraged them to take time during the workday to review their credit score and set up credit freezes and monitoring. She explained the urgency of the situation and how to access each of the three major credit bureaus. And most notably, she specifically asked our team members to carve out time to do this during the workday and block it on their calendars. That time “on the clock” was key.

It’s a simple but often-overlooked aspect of encouraging well-being. Focusing on our own well-being — whether it’s going for a walk outside, signing up for a class on stress management or understanding our credit — takes time. And that time has to be juggled along with everything else in life.

Encouraging employees to take care of themselves needs to come with permission to do so during the workday. Whether it’s taking steps to improve their physical health, their mental state or their financial life, finding the time to do what they know they should do is one of the biggest barriers to engagement. 

That’s why we loved a recent financial wellness campaign called #SaveABillion from Movement Mortgage, a South Carolina-based company with more than 4,000 employees. As part of its campaign to get its employees to save more, the company’s CEO assigned them a very specific task: take a financial wellness assessment and retirement checkup. He also gave them the time to do it by creating a 20-minute companywide “blackout” on a Friday. During the blackout, no one could access their email or other systems. This empowered employees to schedule the task on their calendars and eliminated a huge barrier to engagement: time.

Not every company can literally block out time for employees like Movement Mortgage did. But all employers can do more to encourage employees to balance their work and personal lives in ways that make sense and help them be productive.

Increasingly, benefits programs are asking employees to make thoughtful decisions about complicated topics — and to engage in programs throughout the year. As part of your strategy, think about how and when employees will take the time to use these programs. And help them prioritize the time they need to take action.

It helps tremendously to use a goal-setting technique from behavioral science called “implementation intention.” Simply explained, it involves writing down your intention to do something, including when and under what conditions.

You’re more likely to complete the task because by writing it down and specifying a time, you’ve made the act of getting started that much easier. And as we all know, the first step is often the hardest to take.

We frequently use this method in campaigns — asking people to write down when they will do something, sending calendar invites or including a simple “commitment” form on a print piece — because it increases engagement.

Still, if you want to succeed at creating a culture of well-being, you also have to continuously look at removing obstacles.

In focus groups for our clients, we have heard employees call out the hypocrisy of asking people to take care of their health while, at the same time, asking them to meet business needs such as working 70 hours a week to meet a target.

We hear about bad managers who want employees to stay at their desks all day, despite company encouragement to take walks during lunch or use the on-site fitness center. Employees are quick to notice the inconsistencies between messages that come from the company and what their manager is requiring of them day in and day out. This is one of the reasons why senior leadership support, while valuable, doesn’t automatically change everyone’s behavior.

As you review your well-being and benefits initiatives, ask your team: Have you been realistic about how much time employees need to engage? And have you simply and truly given employees permission to take advantage of all of these programs at work?

Posted on March 1, 2018June 29, 2023

It’s Tourney Time — for Hiring

Hackathons and boot camps are great ways to find software engineers. But what about the rest of the workforce?tournament recruiting

In the current war for talent, companies are struggling to fill all kinds of roles, and a coding challenge won’t help them narrow their candidate pool for all vacancies. But with a little creativity, the hackathon model could be applied to virtually any hiring scenario, giving recruiters a better sense of what a candidate can do, not just what they’ve done.

“The résumé is such a weird tool,” said Jason Shen, founder of Headlight, a performance hiring platform developer based in New York. “It’s a biographical sketch, and the information is hard to verify.”

Interviews can be similarly haphazard, particularly when hiring managers aren’t trained to ask questions that reveal a candidate’s actual skills. Shen likens the process to asking a quarterback how he throws a football. “He can talk until he is blue in the face, but until you see him throw, you won’t know what he can do.”

Headlight has traded in the résumé for a more interactive recruiting process, in which companies give candidates role-specific assignments to validate their technical ability and assess them against the competition. Along with a library of take-home assignments, Headlight also hosts hiring tournaments, where candidates sign up for a multihour hackathon style event, but instead of writing code they design a new product plan or create a marketing campaign. Participants get the assignment the day of the competition and a panel of industry experts assesses their submissions. The top performers win prizes and job interviews.

Battle of the Product Managers

Their first tournament, held at the end of January, focused on product managers.

“There is no academic program or degree for product management,” said Will Canine, co-founder of the New York-based Opentrons Labworks Inc., which makes robots for biologistics applications. Canine is one of 17 employers who participated in the tournament to find potential new hires, which has been a big challenge as his company grows.

Because product managers often come to the role via a number of different paths, résumés haven’t been a great screening tool, he said. As a result, his team often hires people with no specific product management experience and trains them on the job. “You’d never do that with an engineer,” he said. Canine saw the tournament as a better way to vet potential candidates.

In the tournament, more than 100 participants were given three hours to respond to a hypothetical scenario in which a large company had launched a product that wasn’t selling as expected. The participants had to decide whether to reposition the product for the current market or take it to a different market, then build a launch plan around that decision, Shen explained.

Sumita Banerjee, head of talent acquisition for L’Oréal Americas in New York
Sumita Banerjee, head of talent acquisition for L’Oréal Americas in New York

“There is no right answer,” he said. “Making the decision is the easy part, it’s what they do next that’s hard.”

Submissions were scored based on the business opportunity, customer insight, product development and project management. Following the event, Canine along with recruiters from IBM, JP Morgan Chase, Bank of America and other companies were reviewing the submissions with the intent to hire some of the top performers.

It’s a novel approach, though Headlight is not alone in using competition to vet nontech candidates. It is an emerging trend that has evolved as companies look for better ways to judge candidates based on more than what college they attended.

Salon of the Future

It can be particularly useful for hiring recent college grads, who may have great potential but little proven work experience, says Sumita Banerjee, head of talent acquisition for L’Oréal Americas in New York. For more than two decades, L’Oréal has hosted Brandstorm, a business competition where teams of students compete to tackle an industry-relevant challenge. “It is a great feeder for junior talent,” Banerjee said.

To participate, students submit a video pitch of their solution for an annual challenge. This year’s topic: invent the professional salon experience of the future. The winning teams are invited to create a full project with support from a library of e-learning courses, an academic mentor and a L’Oréal employee who coaches them during their presentation at the national judging. The national winners are flown to the worldwide finals in Paris where three teams win 10,000 euro for the best brand, the best use of technology and the best sustainable solution. Along with prizes, many participants secure internships and jobs. “Throughout the competition we are actively looking for potential employees.”

The challenge gives L’Oréal executives a sense of their innovation, leadership skills and ability to collaborate while providing students with a real-life experience working at L’Oréal.

“It’s a great way to find talent, and it could work in any organization,” Banjeree said. Though companies interested in launching their own competition should be certain the challenges give something back to participants in terms of experience and access to companies’ leaders. “There has to be a value exchange if you want candidates to invest this much time and effort to your firm.”

Sarah Fister Gale is a writer based in the Chicago area. Comment below or email editors@workforce.com. Follow Workforce on Twitter at @workforcenews.

Posted on February 28, 2018June 29, 2023

Benefits for Gig Workers? Great Idea, But … ?

Agni Skafidas loves the flexibility of being a freelancer but hates the fact that she doesn’t get any kind of health or retirement benefit.

Skafidas has a three-month gig with a company in the auto industry. Because she is in human resources, she is well aware that the rate she is being paid is the same as a full-time employee but without the benefits.

“For them it’s a great deal because I don’t cost them anything in benefits,” she said. “It’s so comical if you think about it. I’m trying to live by my values [by freelancing], and yet I’m being penalized.”

A growing number of workers are leaving their traditional 9-to-5 jobs and are becoming freelancers in the gig economy. Nearly 40 million Americans work in a part-time or a freelance basis according to an October 2017 study by Guardian Life Insurance. By 2020, half of the workforce is expected to be freelancing.

While gigs allow these workers to live a flexible lifestyle, many give up the security of having benefits at a full-time position. Only 1 in 4 of these workers has medical insurance through their contracted company, and only 1 in 3 has access to a retirement plan, Guardian’s report showed.

The future of work is changing with the rise of contract workers, experts agreed, and many of these freelancers are trying to build a career path in the gig economy. Because of this shift, traditional benefits will not hold up in the future, several corporate benefit leaders said, speaking at the American Benefits Council’s 50th anniversary symposium in Washington, D.C.

“We see in this world of gig work or freelance work that it is largely cash-based,” said Fred Thiele, general manager of global benefits for Microsoft Corp. at the December symposium. “Benefits are not usually part of the equation. We are being challenged in this regard.”

Phil Scarfi, founder of Pioneer Mobile Applications, said it’s hard for start-up companies like his to offer benefits. He and his four full-time employees don’t have corporate benefits; neither do the four freelancers he is using.

“It’s a matter of having consistent income on my part to offer this,” he said. “It’s in my plan to offer benefits at some point.”

For now, Scarfi offers perks — annual subscriptions to Spotify or gift cards to help freelancers to feel valued.

“At the end of the day, we want good freelancers to stick around and join the team as an employee down the road when the funds are there,” he said.

Some companies that primarily use freelancers, like Lyft, have begun offering certain benefits. Meanwhile, companies like Stride Health cater to these workers by helping them sift through myriad health care options. Gigster, an online site that helps companies find available software engineers, allows freelancers to participate in a bonus program similar to what many full-time workers enjoy.

“It’s one of the ways that we want to create an employee-like situation,” said Lori Williams, Gigster’s vice president for fulfillment. “We want them to feel there is an upside beyond being paid for a gig.”

Microsoft uses a lot of freelancers and wants to become not only the employer of choice, but the gig of choice, Thiele said. It is looking for ways to give gig workers the benefit security they lack, but in order to do that, Washington needs to adapt rules to this contingent workforce. In many cases, contract workers who are offered traditional benefits may be classified as employees.

“If we are stuck with some old rules, we can’t do it,” Theile said at the December symposium.

A 2016 paper, “Portable Benefits in the 21st Century,” by The Aspen Institute, suggested that all workers, regardless of their working status, should have access to portable benefits. That means a worker’s benefit plan is not linked to one job. Companies would pay into a worker’s benefit package; the payment would hinge on certain factors like hours worked or pay rate.

Some Members of Congress have been working on portable ideas that have fizzled. Several states are also working on portable benefit legislation.

“It is a little early. The reg side has to evolve and this doesn’t happen overnight,” Gigster’s Williams said. “This is the future of the gig economy — how we add that kind of value. We are just constrained legislatively right now.”

Patty Kujawa is a writer in the Milwaukee area. Comment below or email editors@workforce.com. 

 

Posted on February 26, 2018June 29, 2023

Time of Possession and the Interview

Based on what I do for a living in the world of HR, a portion of my network is always approaching me for advice when it comes to job search and career issues. I’m sure many of you have the same experience.

When it comes to interviewing strategies, my advice to amaze hiring managers is simple to understand by my friends looking for their next gig:

“If the hiring manager wants to talk the whole time during your interview, let him. After the interview is done, he’ll think it went great.”

The advice for your hiring managers/executives, of course, is the direct opposite. The best interviewers across your management teams understand that effective selection on the recruiting trail is more about listening than speaking.

But the ol’ “listen more than you talk” platitude oversimplifies the game of interviewing. Simply letting the candidate talk more doesn’t make you an effective interviewer. The real value is found in the following concept:

Time of Possession 

In football, “time of possession” tracks the amount of time one team has the ball. The thought process behind it is that if one team can keep the ball longer than the other team, they’re apt to score more points and have a fresher defense, which contributes to winning.

The inverse is true in interviewing. Success doesn’t happen by dominating the conversation, it comes by finding the sweet spot that allows you to facilitate as an interviewer in a way that provides you with maximum information.

I’ve seen great interviewers and I’ve seen the huddled masses who repeatedly fail to get the information they need. Here’s how they break down related to time of possession (how much they talk versus allowing the candidate to talk) and the nicknames I’ve tagged them with:

  1. The Friendster (hiring manager who talks 40 to 50 percent of the time): A lot of your managers would be satisfied with this time of possession. “It was a peer-based conversation,” he said. “I felt like we had some great dialogue,” she said. They’re wrong. They didn’t make the candidate talk long enough to gain meaningful information, and as a result, their miss rate on hires is going to be too high.
  2. The Cyborg (hiring manager who talks 5 to 10 percent of the time): If talking too much is wrong, then a manager who only controls less than 10 percent of the interview airtime must be good, right? Nope. The Cyborg represents the manager who gets the official question in, then displays a general tone-deafness to interrupt rambling candidates or ask smart follow-up questions. In other words, you can count on the Cyborg to ask the question you put in front of them, but don’t expect anything else. They’re out of their element, and they won’t get any more information than interviewers who talk all the time.
  3. The Narcissist (hiring manager who talks 65 percent or more of the time): Speaking of talking all the time, meet the Narcissist. The Narcissist loves himself. He loves his ideas. He’s got a worldview that is not only unique, it’s profound. He’ll talk all interview long and as I mentioned previously, he likes people who let him talk. If you’re interviewing with him, don’t fight it. Let him talk and you’ll be in good shape to get the job. Of course, you might think carefully about whether you want to work for him.
  4. The Investigative Reporter (hiring manager who talks 20 percent of the time): The sweet spot of interviewing, the Reporter understands the balance that is required between talking and listening. She’s prepped with interview questions, but understands that’s simply a starting point and quickly spends most her time of possession saying things like, “tell me more about that” and “why did you decide to do that?” She’s an evolved interviewer, understanding the need to be agile, probing and interrupting as necessary to get maximum information.

Do you see your managers of people in these profiles? Sure you do. Interviewing skills tend to follow behavioral trends that impact managers in other areas as well.

Your most effective managers are generally your best interviewers. Coaching skills and interviewing skills are highly related, placing a premium on relationship building, making others comfortable to get the best possible outcome and demanding more without coming across as a jerk.

Divide the managers you support into these interviewing profiles, then look at turnover trends across multiple years. You’ll find the managers with the most effective time of possession strategies don’t miss in hiring nearly as much as their peers.

To be a great interviewer, talk less. But ask for more.

Kris Dunn, the chief human resources officer at Kinetix, is a Workforce contributing editor. Comment below or email editors@workforce.com. Follow Workforce on Twitter at @workforcenews.

Posted on January 24, 2018June 29, 2023

Wellness Companies React to EEOC Incentive Rule Upheaval

Andie Burjek, Working Well blog

It’s my first blog of 2018, and, boy, are we off to a quick start! I’ve mentioned before my keeping track of the EEOC vs. AARP wellness incentive disagreement, and we got some action on that in late December. Meanwhile, I’m deep in research about two meaty topics for which I’d love to gauge your thoughts.

Let’s begin!

Wellness programs took a hit recently when a federal judge ruled that an Equal Employment Opportunity Commission rule regarding incentives will be nullified as of Jan. 1, 2019.

A few different wellness companies told me their reactions to this news, and, to my surprise, not all of it was panic or negative. They were fairly varied.

The rule in question defined the word “voluntary” in relation to wellness programs. The Americans with Disabilities Act and Genetic Information Nondiscrimination Act limit what information employers can ask for from its employees. But in a voluntary wellness program employers can get around some of those limits because the program is voluntary.

The EEOC rule allowed wellness programs to be voluntary if the incentive or penalty was no more than 30 percent of the cost of the health plan.  In his initial decision, Judge John D. Bates, Senior United States District Judge of the United States District Court for the District of Columbia, said that the 30 percent incentive “is the equivalent of several months’ food for the average family, two months of child care in most states, and roughly two months’ rent” and said that the “fee of that magnitude could be especially coercive to lower-income employees and people with disabilities, who on average have lower incomes than those without disabilities,” according to the LA Times.

[Also read: “New Wellness Bill HR1313 Gets Flak for Genetic Privacy Concerns”]

One wellness vendor is celebrating this decision.

Outcomes-based programs are “pretty much dead,” and that’s a good thing, according to Al Lewis, CEO and co-founder of wellness education company Quizzify. He believes the judge was completely right in this decision.

“This changes everything. Without financial coercion, most employees aren’t interested,” he said in an email interview.

Employers should know that the ruling does not apply to all areas of wellness, just those involving medical exams and inquiries, he added. For example, fitness-based programs are still fine unless the company measures fitness.

Health risk assessments are also impacted, he added, as they would have to avoid medical inquiries. They could ask questions like, “How much broccoli do you eat?” or, “Would you like to receive information about diabetes?” but not “Are you depressed?” or “Do you have diabetes?”

Many vendors do not have the same celebratory attitude toward this regulation change. The ruling may be missing the boat, according to Henry Albrecht, CEO of engagement company Limeade. What some parties involved in this ruling call “coercion,” he calls “true support for whole-person well-being.”

[Also read: “Weighing the Value of Workplace Wellness”]

“Ultimately, companies running science-based programs with flexible technology and incentive systems shouldn’t lose sleep over the new EEOC changes. We’re not,” said Albrecht. “Programs that improve employee well-being aren’t going away. They’re too powerful because they drive employee performance, engagement, retention and company profit.”

Meanwhile, Lauren Chana, director of legal services at Vitality Group, a Chicago-based wellness company, has a different attitude toward the ruling. Chana, who ensures that the company’s program and their employer clients are compliant, is not concerned about the ruling, but curious.

“This opens a lot of doors for questions and uncertainty for employers,” she said. “For example, this ruling does not impact the ACA. The EEOC Wellness Rules, presumably, were designed to align with the ACA, but that will change. I am most curious to see the approach the EEOC and courts take to make this a practical rule moving forward.”

She also stressed that this does not have a big impact employers yet. The new rules don’t go into effect until Jan. 1, 2019, and “we haven’t a clue what the compliance date will be from there,” she said.

“With any new area, regulations are bound to go through a level of growing pains,” she added. “Employers will just need to be ready to keep adapting and adjusting until the regulations are able to strike the needed balance between the purpose of wellness, protection of employees and operational feasibility for employers.”

Each new development in wellness programs, whether by regulation or court cases, is pretty significant, said Calvin Chambers, an attorney at Hall Render, the nation’s largest law firm focused exclusively on matters specific to health care organizations.

After the initial EEOC rules came out, employers had some sense of certainty with regulations, he said. What they should expect now is that the incentives will either remain at 30 percent or lessen.

Employers who use wellness vendors for their programs may be confused at what to do next with plan design. A recent webinar addressed employer concerns and made suggestions for how they can make sure they can continue their programs. More on that in a future post.

Feel free to comment below or tweet at me @Andie_Burjek if you have any thoughts on this topic.

Meanwhile, the next two posts I’m working on are related to two articles I’ve been assigned: The Future of Retirement, and the Demographics of Entrepreneurship. I’ll pose two questions now. If you have any thoughts or a response, feel free to share:

What are your personal retirement concerns?

Can benefits be incorporated in startups to retain a more diverse group of employees?

Thanks for reading!

Andie Burjek is a Workforce associate editor. Comment below or email editors@workforce.com.

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