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Posted on February 25, 2010August 28, 2018

TOOL Free E-book on Continuing Education in the Health Professions

The book, available free as a PDF, is published by the National Academies Press, which distributes reports issued by the National Academy of Sciences, the National Academy of Engineering, the Institute of Medicine and the National Research Council, all operating under a charter granted by the U.S. Congress.


Here’s the summary for Redesigning Continuing Education in the Health Professions:


“Today in the United States, the professional health workforce is not consistently prepared to provide high quality health care and assure patient safety, even as the nation spends more per capita on health care than any other country. The absence of a comprehensive and well-integrated system of continuing education (CE) in the health professions is an important contributing factor to knowledge and performance deficiencies at the individual and system levels.


“To be most effective, health professionals at every stage of their careers must continue learning about advances in research and treatment in their fields (and related fields) in order to obtain and maintain up-to-date knowledge and skills in caring for their patients. Many health professionals regularly undertake a variety of efforts to stay up to date, but on a larger scale, the nation’s approach to CE for health professionals fails to support the professions in their efforts to achieve and maintain proficiency.


“Redesigning Continuing Education in the Health Professions illustrates a vision for a better system through a comprehensive approach of continuing professional development, and posits a framework upon which to develop a new, more effective system. The book also offers principles to guide the creation of a national continuing education institute.”


Workforce Management Online, February 2010 — Register Now!

Posted on February 24, 2010August 28, 2018

Annual Filing Shows Google Recruiters Took a Hit

Google Inc. may be the epitome of a recession-proof company, having earned sizable profits throughout the recession. But its workforce has not been so immune.


The Mountain View, California-based technology juggernaut reduced the size of its workforce—focusing in part on its recruiters—last year for the first time in its gilded corporate history, according to public filings and statements in 2009 by Google executives. Google also announced on its blog in early 2009 that it cut jobs in sales and marketing.


The company had 19,835 full-time employees at the end of 2009, compared with 20,222 a year earlier, it said in its annual report filed with the Securities and Exchange Commission on February 12.


Google dipped to as few as 19,665 employees at the end of the third quarter.


A leaner Google said it improved the “discipline” of its hiring—a reference to layoffs within the company’s recruiting organization announced early last year.


Google was able to increase its net income compared with the same period to $1.97 billion in the fourth quarter of 2009, compared with $382 million at the end of 2008.


The company said in its annual report that “we expect to continue to invest in our business, including significantly increasing our hiring rate, and this may cause our operating margins to decrease.”


The company did not say whether it laid off employees or that the drop in headcount was the result of attrition. Google announced several small rounds of layoffs beginning at the end of 2008 and again in the spring of 2009, but in each instance the company added that it was going to continue to hire, only at a slower rate.


Among the first let go were contractors providing recruitment services, said Laszlo Bock, the company’s vice president for people operations, in a memo in January 2009.


Executives at Google had expressed concern about a brain drain as other technology firms poached its most talented employees.


According to published reports, Justice Department officials are investigating whether an informal agreement reportedly made among Google, Apple and others in the high-tech industry to not poach one another’s employees violates antitrust laws.


The Wall Street Journal reported last year that the company is developing an algorithm to determine which employees are most likely to quit.


Google made its initial public offering in the summer of 2004 with a workforce that totaled about 2,300 full-time employees. Google beefed up its recruiting efforts and went on a hiring spree over the next four years.


At the end of 2006, the company had 10,674 employees. The company’s headcount peaked at 20,222 full-time employees at the end of 2008.


—Jeremy Smerd


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Posted on February 24, 2010August 28, 2018

Staffing Firm Spherion Changes Name to SFN Group

Spherion Corp. has changed its name to SFN Group. The company will continue to trade under the symbol SFN on the New York Stock Exchange.


“The SFN Group name clearly defines each of our businesses under one unified company,” said SFN Group president and CEO Roy Krause. “Our new name also more accurately reflects our evolution to a strategic workforce solutions provider. It reinforces our commitment to provide our customers with specialized services to help them more effectively acquire, deploy and manage the workforce.”


SFN Group’s divisions include Technisource, Tatum, Mergis, Todays Office Professionals, SourceRight Solutions and Spherion Staffing Services.


SFN Group (then Spherion Corp.) ranked as the seventh-largest staffing firm in the U.S. on Staffing Industry Analysts’ 2009 list of largest U.S. staffing firms.


 


Filed by Staffing Industry Analysts, a sister company of Workforce Management. To comment, e-mail editors@workforce.com.


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Posted on February 23, 2010August 31, 2018

Stopgap COBRA Subsidy Extension Bill Expected

Top Senate Democrats are expected to introduce legislation this week that would provide a stopgap 15-day extension of federal COBRA health care premium subsidies, Washington observers say.


The measure, likely to be introduced by Senate Majority Leader Harry Reid, D-Nevada, would extend the federal premium subsidy to employees involuntarily terminated from March 1 through March 15. The subsidy pays 65 percent of an individual’s COBRA premiums for up to 15 months.


Without the extension, employees laid off after February 28 would not be eligible for the subsidy.


The short extension would buy time while Democratic legislators develop a broader bill that would include a longer COBRA subsidy extension.


“The 15-day extension serves a dual purpose. It would allow more time to bring up the larger jobs agenda bill, including a COBRA subsidy extension, while avoiding the expiration of eligibility on February 28,” said Frank McArdle, a consultant with Hewitt Associates in Washington.


An extension of the COBRA premium subsidy through May 31 had been part of a bipartisan jobs bill previously put together by top members of the Senate Finance Committee.


But Reid stripped out the COBRA provision and numerous others in favor of a more narrowly focused jobs bill, which the Senate is expected to approve soon. After that, several additional jobs-related bills are expected to be proposed by Reid, including one that would include a multiple-month COBRA premium extension provision, observers say.


Just more than a year ago, Congress passed a nine-month federal COBRA premium subsidy as part of a massive economic stimulus bill. The subsidy was available to employees laid off from September 1, 2008, through December 31, 2009.


Then, last December, federal legislators, as part of bill appropriating funds for the Department of Defense, extended the subsidy to employees laid off through February 28, while increasing the length of the subsidy to 15 months from nine months.


 


Filed by Jerry Geisel of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.


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Posted on February 23, 2010August 31, 2018

Court Considers Time Limits on Employment Discrimination Suits

Supreme Court justices appeared sympathetic to an argument that an employer can be sued for racial discrimination each time it bases hiring decisions on the results of a flawed employment test, during a Monday, February 22, oral argument.


In the case before the court, a group of 6,000 African-American applicants for entry-level firefighter positions filed a suit against the city of Chicago regarding an exam that excluded the vast majority of them from consideration.


In January 1996, the city sent a letter to everyone who participated in the evaluations, saying that only those in the “well qualified” category would be hired. Those who were deemed “qualified” or lower would not get a job offer because so many people scored higher on the exam.


Only 11.5 percent of the African Americans were in the “well qualified” category, even though they represented 37 percent of the test takers. They filed suit on March 31, 1997, or 430 days after the city announced the results.


Chicago’s government does not dispute that the test unfairly excluded African Americans from consideration for the firefighter positions. It maintains, however, that the legal action occurred after the 300-day statute of limitations ran out on the initial announcement.


The plaintiffs argue that the statute should be renewed each time that the city makes hiring decisions. The suit was filed 181 days after the second round of job offers.


A district court ruled in favor of the African-American applicants. The 7th U.S. Circuit Court of Appeals, however, reversed the decision, holding that the act of discrimination occurred when the city classified the African-American candidates in the “qualified” category.


The attorney representing the job applicants, John Payton, argued before the Supreme Court that Chicago should be held to account each time it applies the exam categories to hiring decisions.


“If you don’t say that a use, in fact, can be challenged … Chicago would then take the message that it’s OK once they are past the first 300 days, and they could just go on using the discriminatory cutoff score over and over and over again,” Payton said. “That is inconsistent with the overall policy of what Title VII [employment discrimination law] is trying to root out of our economy and in our workplace.”


Benna Ruth Solomon, deputy corporation counsel for Chicago, asserted that the initial announcement of the hiring pools was the only discriminatory act for which Chicago should be liable—not subsequent selections from the pool.


“The city did not go back to the test results and it did not create—engage in a new decision or a new practice,” Solomon said.


For the second time in less than a year, the court was hearing an argument involving firefighters in an employment law dispute. It ruled in its last session that the city of New Haven, Connecticut, could not throw out a test that resulted in only white firefighters receiving promotions.  


But the questions in the Chicago case resemble those raised in the pay discrimination suit before the court in 2007 brought by Lilly Ledbetter, a Goodyear Tire & Rubber plant supervisor who alleged that she was paid less than her male counterparts.


The Supreme Court ruled 5-4 that Ledbetter had not filed her case before the statute of limitations ran out. Angry Democratic majorities in Congress passed legislation early last year that clarified that suit deadlines are renewed each time a worker receives a paycheck diminished by discrimination.


The Ledbetter case revolved around disparate treatment, meaning that the intent to discriminate has to be demonstrated. The Chicago suit involves disparate impact, which does not require proving intent.


Chief Justice John Roberts Jr., a key vote in the Ledbetter majority, expressed concern that Chicago’s view of the statute of limitations would force job applicants to take legal action before they know for sure whether they’re going to be denied jobs.


“That’s kind of a bad policy, isn’t it?” Roberts said. “You are telling people who may probably not be injured at all, you still have to go to the federal court and sue.”


Conservatives such as Roberts and Justices Samuel Alito Jr. and Antonin Scalia appeared to lean toward the notion that each use of the test scores in a new tranche of hiring could trigger a disparate impact case, according to Katharine Parker, a partner at Proskauer Rose in New York and co-chair of the firm’s employment counseling group.


“There didn’t seem to be any hostility to this cause of action,” Parker said.


If the justices rule in favor of the plaintiffs, it will mean that disgruntled applicants will have more opportunities to file suits over hiring exams.


“If Chicago loses, it’s not going to change the fact that employers should validate tests prior to using them and should continue to scrutinize their policies throughout their use to ensure that they are nondiscriminatory,” Parker said.


The case is Lewis et al v. City of Chicago.


—Mark Schoeff Jr.


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Posted on February 22, 2010August 31, 2018

Small Firms Face Spiking Health Care Premiums

The recent political firestorm in California, where individuals are seeing increases on health insurance premiums of 39 percent, has galvanized renewed momentum for federal health reform. Yet individuals are not the only ones facing major rate hikes.


Small businesses are staring at premium increases as high as 50 percent with little relief in sight, say employers, brokers and insurance experts.


Health care costs on the whole have moderated in recent years, but that has not given small employers much relief. The federal Centers for Medicare and Medicaid Services reported last month that health care spending rose 4.4 percent in 2008, the smallest increase in nearly 50 years.


In a fall 2009 survey by consulting company Mercer, small companies employing 10 to 499 people expected to see an average health care cost increase of 9.5 percent based on their projections. Actual increases have been more than that, observers say, though no comprehensive surveys exist yet on this year’s renewal rates.


Among the reasons cited for the rate increases are concerns that health care reform would lower profits, a shrinking market that leaves insurers with the sickest members, and increased use of medical services as members lose their jobs and employer-provided health insurance.


“I think anecdotally we are hearing consistently higher increases from our members,” says Amanda Austin, director of federal public policy at the National Federation of Independent Business. “It is possible they are experiencing some frontloading in anticipation of new reforms that may eventually cap these types of increases.”


Gary Klaxton, a vice president at the Kaiser Family Foundation, says health care reform is just an excuse.


“They are charging more money because they want to charge more money and they want to blame someone else,” he says.


Ben Geyerhahn, New York project director for Small Business Majority, a group supporting health care reform, says his company’s policy to cover five people will cost 20 to 30 percent more this year. He says that in New York, small businesses with fewer than 100 employees on average spend about 18 percent of their payroll on health insurance.


According to statistics from the New York Department of Insurance, small businesses faced rate increases as high as 58.67 percent at Group Health Inc. A spokeswoman for the company says that rate increase was an aberration due more to the fact that the product, an HMO, had few members, most of whom had high medical costs.


The high rate increase is emblematic of the small group market as a whole, where those who remain are the sickest individuals and the most in need of insurance. They are also the most expensive to cover.


Lisa Horowitz, a broker in New York City with 22 years of experience, says the last year has been particularly hard for small employers in New York state, where rate increases are based on an insurer’s book of business for a geographic area.


“What I have seen this last renewal cycle starting this time last year until now has been astronomical,” Horowitz says. She has seen routine rate increases around 20 percent.


New York state insurance regulators don’t have the power to approve rate increases before they are issued, though legislation has been introduced to give them so-called prior approval of insurance rates.


Instead, the department investigates whether a rate increase was justified at the end of the year. Often it is not, says John Powell, assistant deputy superintendent for health at the New York Insurance Department.


From 2000 to 2008, the state’s insurance regulator ordered insurers to return $48 million to plan members.


Powell says such refunds are not given to small businesses whose rate increases forced them to drop coverage.

—Jeremy Smerd


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Posted on February 19, 2010August 31, 2018

HR Groups Use Scholarships, Discounts to Keep Members

Holding on to their jobs and positioning themselves for better career opportunities when the economy improves has motivated many HR professionals to seek education and training, even as the recession puts a premium on financial aid.


Demand for a new scholarship program at WorldatWork has exceeded expectations so much that the global HR association is already thinking about expanding it. The Society for Human Resource Management has seen a similar spike in interest for its educational and certificate offerings.


In early January, WorldatWork, which focuses on compensation, benefits and total rewards, began offering scholarships for courses that lead to professional certification in those areas.


In the first two weeks, the organization received 32 applications, bestowed seven awards and had 2,800 visitors to its Web site where qualifications are outlined.


A one-year scholarship covers a WorldatWork membership (about $330 for a new member), e-learning courses, materials and exam fees. The monetary value varies. For instance, someone might receive a scholarship of $13,000 to take the nine courses or $4,000 for three.


The number of scholarships was originally set at 20 but could increase to 50 or more, says Anne Ruddy, president of WorldatWork.


She says that education is valued by both HR practitioners and companies as a way to cope with the recession. WorldatWork granted 2,400 certifications last year.


“People are trying to build their own personal brand,” Ruddy says. “Companies realize that they need to invest in the development of key staff.”


SHRM also has experienced increased traffic for its array of education and certificate offerings, according to China Miner Gorman, chief global member engagement officer.


“We’re seeing more interest in them as more of our members are in transition,” Gorman says.


SHRM offers 155 scholarships—valued from $500 to $10,000—for its learning programs. At the top end of that range is the Sue Meisinger Fellowship, a new award named after the former SHRM president that is given to a member who is headed to graduate school.


Running promotions is a standard practice throughout the year for SHRM, where annual membership costs $160. For instance, a nonmember can register for the SHRM annual conference in San Diego in June and also receive a one-year membership for $1,395, compared with the standard nonmember conference price of $1,665.


“The majority of our new members come to us through some kind of discount,” Gorman says.


WorldatWork and SHRM say that their total membership levels are holding steady at 30,000 and 250,000, respectively. They attribute their retention to the timely substantive help they provide for professionals.


WorldatWork is benefiting from an intense focus in Washington on executive pay.


“There are so many fiduciary, legal and accounting responsibilities that a company and a practitioner have in today’s world,” Ruddy says. “It’s too difficult to do compensation by accident.”


SHRM members are turning to the organization for insight on how the Obama administration and Congress might change the workplace. They’re also clamoring for guidance on such issues as pay, employment law and HR’s role in helping businesses survive the recession.


“We got great feedback that [information aggregation] was hugely valuable to our members last year,” Gorman says.


—Mark Schoeff Jr.


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Posted on February 19, 2010August 31, 2018

States Digging $1 Trillion Pension Hole, Pew Center Says

Rising liabilities, lagging asset growth rates and inadequate legislative action by many states have produced a $1 trillion gap for public pension, retiree health and other retirement benefits, according to a study issued Thursday, February 18, by the Pew Center on the States.


The Washington-based policy research organization paints a steadily deteriorating portrait among many states whose ability to finance public pension and health programs has fallen well behind the promises made to their citizens.


“What we found was truly troubling,” said Susan K. Urahn, managing director for the Pew Center, in a conference call with reporters. “This is a conservative estimate.”


The states have a combined $2.35 trillion in assets for pensions, health care and non-pension retirement programs for current and retired workers, but they need another $1 trillion to match their liabilities, according to the Pew Center report. Although some states have taken steps to reform public benefits systems, Urahn chided politicians for having “kicked the can down the road” by letting the liability-asset gap widen even when the economy was healthy.


“This problem was not created by the Great Recession,” she said. “[Legislators] need to take action now.” Otherwise, pension and health liabilities will “ultimately crowd out other services” and could force states to raise taxes, she added.


Citing actions by some states, the Pew Center report recommended several reforms:


• Maintain annual funding requirements and make sure investment assumptions aren’t overly optimistic;
• Reduce benefits for new employees by raising the retirement age or altering the pension formula;
• Require employees to make a larger contribution to retirement plans; and
• Improve management and oversight of state pension plans.


 


 


Filed by Robert Steyer of Pensions & Investments, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.


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Posted on February 18, 2010August 28, 2018

Migrant Workers Injury in Company Housing Ruled Compensable

A fractured ankle a migrant worker received while living in employer-provided housing arose in the course of employment and is compensable, the South Carolina Supreme Court has ruled.


The decision Tuesday, February 16, in Frantz Pierre v. Seaside Farms Inc. and American Home Insurance Co. overturned rulings by the South Carolina Workers’ Compensation Commission and a circuit court, which decided that Pierre’s 2003 ankle injury was not compensable because he was not at work.


The accident occurred the evening before his first day of work.


The commission and lower court also found that the seasonal worker hired to perform duties in a packing house was not required to live in the employer-provided housing, which court documents describe as a tin-roofed barracks.


But the South Carolina Supreme Court disagreed in remanding the case for further proceedings.


It said that Pierre’s injury, which occurred when he fell on a sidewalk where water was flowing from an outdoor sink used to wash clothes, occurred as a result of a hazard on his employer’s property.


“Thus, the source of the injury was a risk associated with the conditions under which the employees were required to live,” the state Supreme Court ruled. It also said Pierre essentially was required to live on the grounds because he and other migrant workers employed by Seaside “did not earn enough to obtain housing, and short-term rentals that coincided with the time they would be in the area did not exist.”


In addition, the nature of the job required workers to live near the packing facility and the living arrangement was convenient for the employer’s work schedule that varied with weather and crop conditions.


In reaching its conclusion, the South Carolina Supreme Court cited similar decisions in Florida, New Mexico and Oregon that relied on a “bunkhouse rule.”


“We find the reasoning in these cases persuasive and that they represent the modern view in employee-residence jurisprudence,” the South Carolina high court ruled.


 


Filed by Roberto Ceniceros of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.


 


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Posted on February 18, 2010August 28, 2018

Benefits Administrator Charged With Taking $40 Million in Union Health Care Funds

Federal prosecutors in New York indicted a benefits administrator on charges of embezzling more than $40 million from a union’s health care and pension funds.


In the indictment filed Wednesday, February 17, in federal court in Manhattan, U.S. attorneys charged Melissa G. King with taking millions of dollars from a union representing construction workers who dig New York’s subways and water tunnels.


King had been hired to administer three benefit funds for the union, formally known as the Compressed Air and Free Air Foundations, Tunnels, Caissons, Subways, Cofferdams, Sewer Construction Workers Local 147. The funds were used to pay retirement benefits, pension annuities, certain medical expenses, unemployment and death benefits, workers’ compensation and severance payments.


King, 58, was hired by the union to collect union dues, fund and maintain the union’s various bank accounts and make filings with regulatory agencies.


The union paid King about $3.8 million from 2002 to 2008 for these services, prosecutors say.


The 12-count indictment handed down by a grand jury, however, alleges that during that period, King transferred more than $40 million into various nonunion bank accounts she used to spend on personal items.


King allegedly spent $5 million on at least nine horses and “horse expenses,” amassing a large collection of show horses.


King allegedly also used the money to hire housekeepers and pay the mortgage on a $900,000 property. The indictment states she spent millions of dollars on clothing, jewelry and luxury cars, including a Porsche Cayenne sport utility vehicle, with funds diverted from the union.


Preet Bharara, the U.S. attorney for the Southern District of New York, said that King then deposited $11 million into various bank accounts held by her company, King Care. Bharara also said King used the union money to pay for more than $7 million in personal expenses on a credit card.


King has denied wrongdoing, according to press reports.


Prosecutors first unveiled the case in a criminal complaint in December.


Irregularities had also been found in King’s previous dealing with another union, the United Probation Officers Association; she managed its health care benefits funds.


An audit performed by the New York Comptroller’s Office found that the probation officers union had allowed King to charge the union $776,000 for computer equipment that should have come out of the fees previously paid to King for her services, according to The New York Times.


—Jeremy Smerd


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