Tag: compliance

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Ferguson Plarre saves over $100,000 a year using Auto-Scheduling

Ferguson Plarre, Workforce.com, retail, scheduling

Ferguson Plarre is one of the longest standing and most renowned producers of hand baked goods. The family-owned business has a rich history of providing customers with sweets and savories since the 1800s. 

The company faced a number of workforce challenges such as difficulty navigating excessive amounts of administration and spending on overtime due to scheduling inefficiencies. 

Since finding Workforce.com, Ferguson Plarre has seen great success in improving day-to-day operations and employee satisfaction. “It has just freed up so much time for my leaders to be able to actually focus on the projects that make us money and are better for the business, rather than sitting there putting spreadsheets together, trying to figure out what labor is going to cost,” said Chris Tankard, culture and human resources manager at Ferguson Plarre.

$100,000 saved on wage spend, hundreds of hours saved on administration

After implementing Workforce.com, the company saved $100,000 on wage spend and reduced hundreds of hours in administrative work. They saved the equivalent of two full-time staff members when it comes to cutting of administration across production, scheduling and reporting. These valuable savings allowed them to reallocate their resources to other more valuable areas of the business. 

Following their implementation of Workforce.com, Ferguson Plarre has adopted a highly optimized scheduling process, allowing them to accommodate for the constantly shifting demand for their products, significantly reducing the time spent maintaining staff schedules, absences and staffing costs.

How legacy systems and processes can dramatically hinder success

Ferguson Plarre is committed to delivering freshly baked goods to its stores. With a staff of more than 150 employees, their goal is to provide the best quality products while catering for constant shifts in their day-to-day sales. As such, they require a staff management system that can optimize their schedule according to demand data. 

Previous systems used at Ferguson Plarre failed to achieve the results they needed to achieve their business mission. Their previous scheduling software was a platform that employees throughout the company avoided. Staff were reluctant to use it due to issues with reliability. Meanwhile, the managerial team found a great deal of effort was required to make basic adjustments to staff schedules, pay rates and documents. 

Not having access to the tools they needed led to higher staffing costs, frustrated staff and the inability to dedicate time and energy to areas of the business that add value. As a result, the company was left with significant sunk costs in a system that didn’t give them outcomes and satisfaction in return.

Implementing a system that helps your business grow

Tankard set out to find a user-friendly system that would be eagerly adopted by his team, a solution that would allow his frontline staff to start thinking like business owners. Finding a great system functions more like a partnership than a service, especially when it comes to managing areas of the business as important as your employees.

Here’s how the team at Workforce.com works with Ferguson Plarre to manage and improve their operations and business:

Auto-scheduling software

  • Ferguson Plarre uses Workforce.com’s automated scheduling platform to create more efficient shifts for their staff.
  • Scheduling according to demand allows Ferguson Plarre to schedule staff on a room-by-room basis, ensuring they never over- or under-staff stations.
  • The shift swapping software lets staff easily request altered schedules, reducing the time managers spent maintaining it. It also helps protect the bottom line as the platform shows how much swaps will cost.
  • Auto-scheduling ensures that Ferguson Plarre keeps unnecessary overtime to a minimum, reducing staffing costs across the company.

Digital timesheets

  • Automatic timesheet generation means Ferguson Plarre can generate and approve accurately costed timesheets in bulk each pay period.
  • Timesheet software automatically flagged any variance in wage spend, aiding Tankard and the team in adhering to their budgeting KPIs.
  • Workforce.com’s timesheet software synced to Ferguson Plarre’s payroll system, allowing them to export the data without any manual entry each pay period, significantly reducing the required labor hours.

Reporting

  • Workforce.com’s dashboards and reporting suite means Tankard and the team could access valuable workforce metrics and modify their business practices for efficiency.
  • Digital reporting and storage means Ferguson Plarre can easily access historical reports and monitor their performance over time.

Compliance

  • Workforce.com’s labor compliance engine applies the correct pay rates, overtime, and allowances to completed shifts, eliminating the need to manually calculate pay rates and amend timesheets.

Thorough implementation guarantees a fast return on investment

Business tools only begin to return benefits when they are implemented quickly and adopted fully across the company. It’s not uncommon to find businesses adopting newer and better processes, only to be caught in the implementation stage, receiving fractional value for an extended period of time. For Ferguson Plarre, a gold standard implementation process was imperative.

Workforce.com assigned a dedicated implementation consultant to Ferguson Plarre. This ensures that the implementation would run smoothly, so they could start getting value from the system as soon as possible. Workforce.com assisted Tankard and his team through the setup, integrating their existing systems into Workforce.com and ensuring that staff knew how to use the system. 

Simplifying the administrative processes to focus on creating value

Workforce.com provides Ferguson Plarre with greatly simplified administrative processes, allowing them to focus on the things that matter. 

Moving forward, Ferguson Plarre will continue to build on its rich history and continue to delight customers. As the business landscape continues to shift, they are well-equipped to face these changes because they have a platform that enables them to be agile and make data-driven decisions. 

Workforce management has a lot of moving parts, but it doesn’t have to be a burden. Workforce.com can take out the administrative side of managing your team so you can focus more on growing your business. See our platform in action and book a demo today.

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4 ways that health care organizations can build resilience

build resilience

Health care organizations faced numerous challenges when the pandemic hit. Residents in care facilities faced a high risk of contracting the coronavirus as many are between the vulnerable ages of 80 and 90 years old with underlying conditions. 

Beyond the physical stress, residents and staff alike experience mental health challenges. Employees are burdened with adapting to new ways of working, such as dealing with absences, implementing new health protocols, and the emotional toll of seeing patients  affected by the virus. At the same time, residents can also pick up such cues and feel the burden themselves — restrictions such as limited visits from loved ones added to the toll too. 

“Care organizations in particular have been under immense strain. We’ve never asked them to do more to protect the most vulnerable members of our society,” said Bryce Davies, general manager of Workforce.com UK. But there’s another story here, and that’s human ingenuity and creativity can be used to help us all adapt. It’s called resilience.” 

The ability of organizations to bounce back from challenges and show resilience is what can help them thrive during a pandemic. Davies identified four core areas of resilience that can help businesses navigate through this time.

Keeping communication lines open

Communication is key for both staff and patients or customers. But with the pandemic, keeping communication lines open tends to become challenging given restrictions and volatile work patterns. This resulted in information getting diluted and not being communicated to the right person at the right time, which prevents teams from adapting quickly to circumstances. 

“Identify your mission-critical communication channels and build redundancy into these,” Davies said. The speed of communication channels should also be considered and identify possible causes of delays. 

Open and transparent communication lines are vital to empowering staff to step in and take over in case of a teammate’s absence or operational changes. Furthermore, it’s also critical to documenting processes, which lessens onboarding time and equips teams to stay agile. 

Ensuring safety on shift

Fatigue is detrimental to the safety of patients and health workers alike. When care facility staff is exhausted, they are more prone to making errors, forgetting things, having difficulty processing information and reacting slowly. 

Workforce managers can prevent their staff from experiencing fatigue through efficient scheduling and leave management. However, staff schedules can be difficult to plan and subjects staff to work in shift patterns, which fail to account for other factors such as demand, leave and time for training.

“Try planning your schedule out as far in advance as possible to lock in both the time for leave and training,” Davies explained. Monitoring annual leave balances throughout the year also helps allocate resources accordingly and make sure the staff gets enough time off to curb the effects of stress.

Also read: How leaders can boost employee retention by respecting work-life balance of hourly workers

Technology such as Workforce.com provides managers oversight into all the essential factors with staff scheduling. Minus the paperwork, managers can use the platform to make better decisions when creating schedules and ensure that time off, training, and demand are accounted for. 

Promoting financial security

Labor costs and demand are difficult to control and forecast. If not managed properly, it can drive up expenses, resulting in the organization becoming less financially agile. This can make team members feel insecure about the company and may cause them to leave. 

“Build a mock schedule well in advance and cost it using employees’ base pay and overtime to help predict cost. Test different scenarios,” Davies advised. Identifying key demand trends and indicators can also help in forecasting costs. 

It’s also crucial to pay close attention to the variance between schedules and actual timesheets. Investigate probable causes of overspending and optimize your operations to address them. 

More importantly, health care organizations should have a way to proactively manage demand and cost rather than acting on issues after the fact. Having access to labor analytics is vital to do that. Workforce.com captures real-time costs and revenue throughout the day, allowing managers to react quickly and make cost-effective decisions on the fly.

Also read: Labor analytics and reporting starts with access to the right data

Demonstrating HR compliance

Complying with labor laws is a must, but keeping up with changes can be tough. 

“Promote compliance as a culture, not as one person’s job,” Davies said. Integrate compliance to every part of workforce management. Ensure that processes and systems are designed to stay at pace and adhere to labor laws. 

Companies can start with digitizing their documents so that files can be remotely audited and monitored. Compliance can also be accounted for in creating employee schedules. Workforce.com’s employee scheduling platform factors in labor laws and alerts managers if a schedule is at risk of violating regulations. Legislation that affects payroll is also crucial for companies to pay close attention to as it impacts labor costs and treatment of overtime and holidays. 

Also read: The rundown on wage law compliance: What organizations should know

When systems are integrated for labor compliance, all activities are tracked and fixing potential noncompliance risk would be quicker. 

“Resilience is something that we can build into all of our businesses, and it’s never too late to start,” Davies said. Recognizing the gaps is half of the battle. The other half is finding the right solution to address them. 

Workforce.com has been partnering with businesses in different industries to help them engage their teams, safeguard their finances and stay compliant. See our solutions in action and book a demo with us today. 

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Disclosing human capital data is now an SEC requirement

scheduling; time and attendance; forecasting

Thanks to the new U.S. Securities and Exchange Commission rules that went into effect Nov. 9, publicly traded companies are required to disclose human capital information such as workforce cost, human capital ROI and turnover rate, among others. 

There is no grace period, so publicly traded companies must begin disclosing this human capital information starting with their Nov. 30, Dec. 31 or Jan. 31 quarterly or annual public financial statement, noted David Vance, executive director for the Center for Talent Reporting, in a blog post on Chief Learning Officer.

What this means for publicly traded companies is: they must be prepared with the right data for their next public financial release. The SEC does not require specific metrics but wants appropriate information for employee attraction, development and retention at minimum. 

There’s leeway in the metrics you can report

Various resources and reports suggest what types of measurements employers can rely on. Vance suggested the following in Chief Learning Officer:

Attraction: Time to fill, time to fill critical positions, percentage of positions filled internally, percentage of critical positions filled internally.

Development: Total cost of training and development, percentage of employees who receive training in compliance and ethics, percentage of employees who receive any training, average hours of formal training per year, percentage of leaders who receive training, percentage of leaders who receive leadership development.

Retention: Turnover, turnover for critical positions.

Additional recommended metrics: Employee engagement score, leadership trust score, diversity by gender, age, disability, race or national origin, leadership diversity, pay equity, human capital ROI, total workforce cost, number of full time employees, contingent/contract and temporary workers.

The idea behind this is so that potential investors or stakeholders have all the information they need about a company before they make their investment or voting decision. A PwC report clarified that specific metrics aren’t required so that these human capital disclosures “will be tailored to a company’s own business or industry using management’s judgment and that they may evolve over time.”

Human capital disclosure has been gaining traction the past few years, with the International Organization for Standardization passing the first-ever standard for human capital reporting in November 2018. The decision prompted HR analytics expert Jac Fitz-enz to explain what this means for the field of HR. “An ethical code, a body of research, specialized education and performance standards are the basis of a profession. The adoption of ISO standards supports human resources’ claim to be a profession,” he said. 

Even as far back as 2015, Deloitte Consulting Managing Director and workforce management expert Lisa Disselkamp said, “To say workforce management outcomes affect shareholder value and business strategy is no understatement.” 

Collecting human capital data 

The right workforce management software can help organizations collect appropriate metrics for SEC disclosure. Workforce.com allows organizations to easily compile metrics including:

  • Level of compliance with wage and hour laws.
  • Employee feedback scores.
  • Employee star ratings and performance scores.
  • Data security for employees.
  • Employee retention rates.
  • Absence management and absence rate (i.e., rate of not showing up).
  • Schedule flexibility.
  • Payroll error rate and amounts.

Human capital data collection is simple with this tool. Data on employee feedback scores or schedule flexibility can give employers insight on employee engagement or satisfaction. Plus, employers can easily keep track of how many hourly employees they have in the system versus contract or contingent workers. Rates of employee absenteeism can inform organizations on how engaged employees are and how to help predict turnover.

Don’t fall behind on your new reporting requirements. If you’re in the market for a new workforce management software, Workforce.com can provide those needs while also giving managers access to key human capital metrics. 

 

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Florida minimum wage hike highlights need to get smarter on payroll compliance

wage and hour law compliance, wages

Florida Amendment 2, which was approved Nov. 3 by 60.8 percent of voters in the Sunshine State, will raise the minimum wage to $15 an hour by 2026. The Florida Policy Institute estimates that up to 2.5 million workers are now in line for higher wages. Per Florida Amendment 2, minimum wage will climb from $8.56 an hour to $10 an hour in September 2021 and then rise a dollar per year until 2026.

The 2020 election season also saw Joe Biden pledge to raise the minimum wage to $15 nationwide. Currently, the federal minimum wage is $7.25 an hour. As MarketWatch notes, Biden will likely face many hurdles to get this measure passed, especially if control of the Senate remains with the Republicans. 

Still, while no action has been taken yet on a national level, it’s something for organizations to keep in mind as more states — including California, Connecticut, Illinois, Maryland, Massachusetts, New Jersey and New York — pledge to increase minimum wage in coming years. 

Florida’s passage of a statewide minimum wage increase to $15 may pose some challenges to business owners complying with the new law. One thing they don’t have to stress about is how well their workforce management system can handle the new requirement. 

Technology can help Florida employers as they maneuver the new minimum wage landscape. Smart workforce management software will take state and local laws into account so that compliance is as simple as possible.

Workforce.com ensures that managers have simplified and automated compliance to federal, state and local labor regulations, allowing them to avoid costly penalties. Workforce.com software also undergoes an audit regularly to make sure laws and regulations are up to date, meaning that managers can worry less about financials and compliance and more about creating a good schedule.

Don’t fall behind on compliance. Invest in employee scheduling software that simplifies compliance and payroll so that no matter what new regulations pass, your organization is prepared and confident. 

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Leave management should be as simple as submit, approve and hit the beach

Submitting a request for time off should be a simple, positive experience.

In most cases an employee seeking leave is looking forward to time away from the workplace. Their request to take time to relax and unwind shouldn’t get bogged down in a bureaucratic morass of an overly complicated process, further slowed by multiple approvals and unnecessary paperwork.

Let employees know their vacation is approved before they even book their travel plans through an intuitive online time management solution. Managers and supervisors also will appreciate the solution’s ease of use and rapid response so they can plan for that employee’s absence weeks or even months in advance.

Clear the confusion

Too often employees don’t know how much time off they have accrued or the amount they have left. Worse, managers are often in the dark about such employee basics as paid time off.

The employee approaches the manager to ask, “How much time off do I have left?” only to discover that the boss has no idea, either.

Frustrated, both begin to search for an answer. Naturally, it is either on a paper form tucked deep inside a hulking gray filing cabinet, or it is squirreled away among a previous manager’s archived spreadsheets, which of course is in a folder on an inaccessible server.

A mobile leave management solution makes such confusion and aggravation a thing of the past. Employers and employees enjoy ease of use and spend their time on tasks much more important than digging through a bank of filing cabinets.

Time off at their fingertips

A fully integrated leave management system literally fits in their pockets. Managers will always know who is available to work any shift with a quick glance at their mobile phone.

Innovative leave management software supports both mobile and desktop applications and implements approved requests directly into an employee shift schedule.

Online leave management benefits

Employers can customize leave management for multiple industries and global locations. Through quick implementation to the cloud, supervisors and employees also have a fair, transparent leave approval solution. Employers also increase their efficiency by shedding burdensome paperwork and save time and money by avoiding costly compliance complications.

Fair, transparent leave approval

Whether your organization uses paid time off or traditional vacation/sick leave, employees submit leave requests using their mobile devices. Managers can then review, approve or modify the requests. With ongoing, updated tracking, employee and supervisor both have access to records, balances and proof of compliance. Tracking time off helps optimize labor management for all employees.

Ease scheduling hassles

Every employee deserves time away from work, whether it is a weeklong vacation or a half-day doctor’s appointment. But when that worker’s time-off request is mismanaged it causes problems for the business, managers and fellow employees.

A simple, user-friendly mobile leave management solution is accurate, immediate and rebuilds the trust between employees and their managers that may have been damaged by a sloppy paper-based system. 

Managers can see pending leave requests and check on employee availability, then make informed decisions on whether to grant or deny the time off.

Remain in compliance

Lax adherence to tracking employee leave and ignoring federal and state Family and Medical Leave Act compliance is the fast track to a lawsuit. A user-friendly, effective leave management system helps clarify FMLA and other regulations with intermittent or continuous employee-leave tracking to avoid litigation and costly fines that typically come with noncompliance.

 Efficient records of absentee, sick leave, annual leave and timekeeping translates into accurate compensation and an engaged workforce secure in the knowledge that their leave requests will not fall through the cracks. A mobile leave management solution benefits the employer as well as the employee.

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Solving the concern over clean time clocks with a mobile solution

time clock, workforce management, scheduling, time and attendance

There was a time in the very recent past when the biggest worry about a workplace time clock was whether the employee arrived on time to punch in and remembered to clock out when their shift was over.

That has changed in recent months. It is understandable that employees’ anxiety levels are high, and the thought of having to touch an unsanitary time clock adds some unnecessary concern. While the specter of returning to work among customers as well as co-workers frays the nerves of some employees, about the last thing they need on their minds is whether the time clock on the wall was sanitized after the previous employee punched in for their shift.

Ease their fears

There are obvious sanitary solutions for cleaning workstations and countertops. A mobile time clock app is a software solution that allows employees to bypass touching the grimy surface of a physical time clock.

Cleanliness should always be a concern in any workplace. Employers wouldn’t set out boxes of dirty tissues. So why should a time clock that’s constantly being touched be the lone option for employees to start and end their shift?

And don’t be fooled into thinking that a biometric time clock is a cleaner option. That fingerprint left by the previous employee? Do you know where that person’s digit was before tapping the pad? 

It just makes sense to offer employees a mobile solution to cleanly and effortlessly clock in, safe in the knowledge that their employer is vigilant in maintaining a healthy workforce and concerned about accurate time management.

Safe, sanitary and simple

Automating how a staff clocks in and out is not only the sanitary option, it also is the simple solution to cutting back hours of burdensome administrative work each week. With such a keen focus on predictive scheduling laws and regulations, an automated time clock system featuring a mobile app can communicate schedules that help companies remain in compliance. Employers can communicate scheduling in advance and explain the flexibility needs of the business at the same time, creating an open line of communication between employer and employee.

Employer advantages

Buddy punching has existed practically since the invention of time clocks. A time-clock mobile app assures that the correct person clocks in for the right shift through electronic photo verification and unique passcodes.

Automation eliminates repetitive processes that can lead to miscalculating payroll, which is among the fastest and easiest ways to get burned by a wage-and-hour lawsuit. According to Internal Revenue Service statistics, about one-third of employers make payroll errors. The American Payroll Association separately reported that such errors range between is up to 8 percent of total payroll.

A mobile clock-in solution also helps assure that staff is paid correctly according to time worked and is in compliance with local, state and federal laws.

Here are some advantages employers will find by using mobile clock-in software: 

  • React immediately to curb or cut overtime.
  • Automation saves time and effort.
  • Save money as buddy punching is regulated.
  • Avoid costly lawsuits by complying with all regulations.

Employee advantages

Eliminating a physical time clock eases in-office cleanliness concerns. Companies with staff located in multiple locations who are working remotely allows them to clock in via a mobile app whenever and wherever they are. A time clock app is GPS-enabled and works everywhere in the world. Employees can: 

  • Easily and simply clock in and out with one swipe on their phone and not  touch a time clock. 
  • Request time off remotely.
  • View current and past timesheets.
  • Communicate while on the go.

Ask yourself: Do you really want your employees touching the same time clock? It’s a cesspool of germs waiting to pollute your workforce with every touch. Clean up your physical workplace and tidy your workforce management processes by integrating the Workforce.com Time Clock App.

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Ease compliance concerns with workforce management software

compliance; workforce management software

Ask an HR pro how to reduce compliance risk and you’re likely to get one of two responses: a long, silent stare from beneath a furrowed brow or a finger pointing directly to a floor-to-ceiling shelf of thick binders and the two-word utterance of, “Start there.”

In other words, addressing how to reduce compliance risk is complicated. It can’t be digested over a bagel and coffee or assimilated during a five-minute confab in the conference room.

Many workplace laws, regulations and guidance governing compliance risk date back to the early 20th century. Sorting through federal, state and local workplace regulations is a skill that develops over a career through a variety of sources. A key tool among those sources is workforce management solutions designed to navigate and track the daunting web of regulatory compliance issues that employers face on a daily basis.

Configured for national, state and county labor laws, Workforce.com’s workforce management software integrates with existing human capital management and payroll systems to help reduce compliance risk through seamless workforce automation. To remain compliant and stay protected from unnecessary and costly litigation, there are several issues that employers should be aware of.

Employee classifications

Accurately classifying workers continually draws the attention of state and federal agencies that are laser-focused on enforcement. The risks of worker misclassification can be costly and subject companies to fines and back taxes that can total as much as 100 percent of the employment tax due.

When some employees work more than 40 hours per week, labor laws state that based on that worker’s classification employers are responsible for paying overtime.

Workforce management software helps employers determine who is eligible for overtime and track employees’ hours, as the federal Fair Labor Standards Act divides workers into exempt and non-exempt status. 

  • Exempt workers: Typically receive a salary and employers are not obligated to pay exempt workers overtime.
  • Non-exempt workers: Typically receive hourly pay and are eligible for overtime if they work past 40 hours in a week.

Employee leave

Sorting through the specific types of paid leave that are required by law and those provided voluntarily by employers can be confusing. The Family and Medical Leave Act regulates reasonable amounts of unpaid, job-protected leave such as the birth of a child or to care for a sick family member.

The FMLA and the Fair Labor Standards Act, however, does not regulate sick pay, vacations and paid time off. That time away is voluntarily provided by the employer yet still must be tracked.

Employee safety

You know those safety kits scattered through the office? Virtually all employers must follow the Occupational Safety and Health Administration’s regulations preventing and responding to emergencies in the workplace. Employers must have a first-aid kit on site, and they also must let employees know about hazardous materials in the workplace, although Phil from accounting’s syrup-thick coffee is exempt. Though it probably shouldn’t be.

compliance; workforce management software

Employee pay

Payroll is one of the most regulated functions in an organization that must meet federal, state and local requirements, according to the American Payroll Association.

Government agencies require:

  • Tax withholding and reporting.
  • Timely pay of employees to meet wage and hour law requirements.
  • Withholding child support and garnishments from wages.
  • Ensuring new employees are eligible to work in the U.S.

Wage and hour settlements continue to be a costly compliance issue for businesses. Investing now in workforce management solutions beats spending more money later should a lawsuit arise. Technology can help HR professionals and executives solve the vexing problem of how to reduce compliance risk.

With increased government scrutiny and potential for fines and penalties, it is more important than ever to ensure workforce compliance. Workforce.com tracks compliance and regulatory obligations, ensures accurate pay and maintains a detailed audit trail.

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Paycheck Protection Program Flexibility Act brings loan forgiveness changes

COVID-19, coronavirus, public health crisis

On June 5, 2020, President Trump signed into law the Paycheck Protection Program Flexibility Act of 2020. The PPPFA —  as its name suggests — offers greater flexibility for employers receiving loans under the CARES Act’s Paycheck Protection Program (PPP) by extending time frames, expanding exemptions and modifying other PPP terms affecting potential loan forgiveness and repayment. 

Here are the key provisions of the PPPFA: 

Extended “Covered Period” for Using Loan Proceeds

Under the PPP, borrowers needed to spend PPP loan proceeds on approved expenses within a period of eight weeks to potentially qualify for loan forgiveness. The PPPFA expands this period so that borrowers may now spend their PPP loan funds (a) over a period of 24 weeks from the origination of the loan, or (b) by December 31, 2020, whichever is earlier. 

Also read: How to reduce compliance risk

Borrowers are, of course, still free to use the original eight-week covered loan period in the PPP or “alternative payroll covered period” provided in the U.S. Small Business Administration (SBA) loan forgiveness guidance. (A link to the earlier client alert discussing SBA loan forgiveness guidance appears here.)   

Reduced Percentage of Loan to be Spent on Payroll for Forgiveness

The PPPFA states that 60 percent of PPP loan proceeds need to be spent on payroll costs in order for a borrower to obtain forgiveness, leaving 40 percent which can be spent on qualifying non-payroll expenses. 

Also read: Employers grapple with laws about work schedules

This is a reduction from the 75 percent/25 percent split which had come from the SBA guidance and should give employers some welcome flexibility to spend a greater amount of loan proceeds on rent, mortgage payments and other qualifying non-payroll expenses. 

Employers should note, though, that the language of the PPPFA indicates that if an employer does not spend 60 percent of loan proceeds on payroll costs, it will not be eligible for forgiveness of any portion of the loan. As there have been questions as to whether such a significant change from the PPP was intended, Morgan, Brown & Joy will continue to monitor future developments in this area. 

Expanded Exemptions from Loan Forgiveness Requirements

The PPP provided that an employer who had experienced a reduction in either employee headcount or employee salaries between February 15, 2020 and April 26, 2020 (30 days after enactment of the CARES Act) could receive forgiveness if it eliminated any reduction in headcount and salary by June 30, 2020. The PPPFA extends this June 30 date to December 31, 2020.  

Employers should not, however, be lulled into thinking that they can simply restore salary levels and headcount in a single stroke on December 31 and achieve full forgiveness. The requirement of spending 60 percent of loan proceeds on payroll will require forethought about restoration of staff levels and timing of payroll costs incurred and paid. 

The PPPFA also expands exemptions from the reduction to loan forgiveness corresponding to a reduction in the number of full-time equivalent employees. An employer who has experienced a reduction in FTE employees after February 15 will not see a reduction in loan forgiveness based on FTE count if it can in good faith document: 

  1. That it has been unable to rehire individuals who were employed by the business on February 15, 2020 and also unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020; or
  2. That it is unable to return to the same level of business activity at which it was operating before February 15, 2020 due to compliance with requirements or guidance from the U.S. Secretary of Health and Human Services, CDC or OSHA between March 1 and December 31 relating to standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19.  

Five-Year Repayment Period for New Loans

For PPP loans made on or after the effective date of the PPPFA (June 5), borrowers will have a period of at least five years to pay off the portion of any loan which is not forgiven. For loans made before the PPPFA effective date, lenders and borrowers may, but are not required to, mutually agree to modify the terms of an existing loan to include a minimum five-year period for repayment of any unforgiven amounts. 

Extension of Loan Deferral Period

The PPPFA also expands the six-month loan deferral period created by the PPP. Repayment of a PPP loan (including principal, interest and fees) is now deferred until after the SBA has determined the borrower’s loan forgiveness amount and remitted that amount to the lender. For borrowers who do not apply for forgiveness within 10 months after the last day of the covered period, repayment of the loan begins at the expiration of that 10-month window.  

Finally, in addition to the above, the PPPFA allows recipients of PPP loans to participate in the deferral of certain payroll taxes as provided by the CARES Act, which PPP borrowers had previously not been eligible to do.  

The changing landscape of PPP guidance is only one of the many challenges employers face as businesses reopen and a greater number of employees return to work. Employers should consult their attorneys for assistance as legal concerns arise in workplaces in the COVD-19 era. 

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Absence management is increasingly vital for managers to understand

shift scheduling, technology, custom fields

Absence management — the program and policies in place that control absences due to injury and illnesses — is a vital part of workforce management. Employees miss work for a variety of reasons, and managers must make sure they are on top of employee absences and keeping the business running.

That being said, there are certain aspects of absence management that tend to elude managers. Simon Camaj, absence and disability practice leader at Mercer, said that understanding intermittent disability claims is an area in which many managers lack understanding. 

Also read: Leave management should be as simple as submit, approve and hit the beach

This is problematic for both managers and employees. Employees may have a valid claim and a condition that allows them to take time off intermittently to tend to their condition. But a manager is running a business, and they must understand that their employee can legitimately take that time off and still be able to manage their business in that employee’s absence. 

Intermittent versus continuous claims 

A continuous claim happens in a situation where an employee needs short-term disability leave for a finite amount of time. They may, for example, not be at work for six weeks straight, giving the employer the opportunity to plan around their absence and prepare for their return. This is relatively straightforward, Camaj said. 

What often complicates disability leave for employers, though, is when an employee is physically present at work but eligible for intermittent leave. As the UC Santa Cruz human resources team explains, an intermittent leave may allow an employee to take time off in separate periods of time due to a single illness or injury, rather than one continuous period of time. Leave may include periods from an hour at a time, a day at a time or multiple days in a row, the HR guidance added.  

Communication between employees and managers is the biggest challenge here, Camaj said. Leave policies may not be clear on the role of the manager and employee regarding intermittent leave. 

Also read: Employers grapple with laws about work schedules 

The relationship between management and company leadership
Company decision makers should be clear on what the organization’s time off and employee leave strategy is and how it fits into what the organization is trying to accomplish.

“If you’re going to offer something to employees, they will naturally consider using it,” Camaj said.  “And you have to balance that with certain business goals and priorities.”

It must be made clear in the policy and communicated to both employees and managers what their role is in this absence management procedure, he said. Who does an employee call when they need to take their intermittent leave? What are they personally responsible for? Meanwhile, managers must know what rights employees have to take intermittent time off and what their strategy is to modify the schedule in case that happens.

Whichever absence management administrator or vendor a company uses has a role here and a responsibility to communicate important information to employees and managers, Camaj said. How does the administrator communicate with the employee who has the legal right to take a certain type of leave? How do they engage with the managers in charge of these employees? 

A paradigm shift 

There’s been a paradigm shift recently where there’s more awareness from employers of the importance of leave management and of employees being able to balance their work and personal lives and health, Camaj said. Evidence of this change includes the expansion of paid parental leave and caregiver leave laws across cities and states. 

”This is employers looking at employees and saying, ‘They’re at different stages of their lives and we have to meet people where they’re at.’” he said. “The paradigm shift is employers are seeing leave of absences as employee health events, and if you do a better job at managing leave as a health event, you have stronger productivity, and it helps everybody. It’s not just a leave program you have to have, It’s a strategy.” 

Also read: Time off policies promote convenience while enhancing engagement

This trend will continue, he said, as employee leave grows increasingly more complex with new local or state laws concerning paid time off and paid leave. The issues employers have managing employee absences are not going away. Still, Camaj said he’s seeing more employers step up to the plate.

”We have a greater focus where employers are looking at their leave policies; managers and employees are trying to understand what they have; and vendors are finally at a point where they’re trying to simplify and support leave administration in general with technology,” he said. “As an industry we’re making progress, but this is only going to continue becoming a bigger focus.” 

 

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The most common scheduling problems for employers and how to address them

shift scheduling, technology, custom fields

Hourly employees have common scheduling problems, which helped spur a series of fair workweek laws now in effect in the state of Oregon and in many cities across the United States. The impact of these laws on businesses should not be ignored, though.

The COVID-19 pandemic has also added another layer to the scheduling complexity environment. Industries like retail, food service and hospitality that have been greatly impacted by the pandemic are also the industries primarily affected by predictive scheduling laws. 

Depending on state or local laws, businesses all face scheduling challenges. Here are some of the most common scheduling problems and how to address them.

Also read: Shift scheduling strategies can be improved through technology 

The most common scheduling problems for employers

1. Overstaffing and understaffing

The clear problem for businesses with overstaffing is that they’re unnecessarily increasing their labor cost with no return on investment, said Ari Hersher, partner at law firm Seyfarth. And labor costs are already one of the biggest costs for businesses, along with real estate. 

Meanwhile, if a shift is understaffed, the business is not efficiently meeting demand. Its employees may be overworked and need to work extra hours, and the business may have to pay these workers unplanned overtime, Hersher said. Meanwhile, in jurisdictions with predictive scheduling laws, an employer may need to pay additional wage to staff that are added last minute, he added.  

2. TIme

Creating a schedule takes time, and managers already have busy jobs. Using technology solutions could help, yet the Sierra Cedar “2018-2019 HR Systems Survey” found that only 42 percent of organizations use labor scheduling applications.

Also read: 3 Steps to Navigating Effective Wage and Hour Compliance

3. The need for flexibility

Managers need flexibility to create schedules, Hersher said. Employees may quit, call in sick or simply not show up, and then managers must figure out how to quickly find a replacement. 

Employers in jurisdictions with predictive scheduling laws may have further responsibilities, he said. Some of these laws have employers document that someone called out of their shift, offer proof that they called and store the information for three years in case of audits. For managers who supervise a large number of employees, the number of call outs they get in a week may be substantial. 

Sometimes there are tech solutions, he said, but the patchwork landscape of predictive scheduling can complicate that. Employers with locations in cities or states with different laws need a way to take all laws that impact them into account.

Also read: Predictive Scheduling Laws — What Are They, Where Do They Exist and Employers’ Reaction

4. Compliance

According to XpertHR’s survey “Top HR Compliance Challenges for 2020,” 10.1 percent of employers surveyed said that pay and scheduling issues is their top compliance concern, topped only by benefits (16.2 percent) and recruiting/hiring (28.3 percent). 

The most common scheduling problems for employees

1. Overstaffing and understaffing: 

Understaffing has an obvious impact on employees, leaving them overworked and with low morale, Hersher said. And industries like retail and food service with many hourly workers already see high turnover. 

Meanwhile, given the right context, overstaffing also may impact workers negatively. They may get sent home, therefore not getting paid for hours they expected to work. Employees who earn commission for sales or tips for service may also find this situation bad, Hersher added. If there are only six customers and seven servers or sales associates, they wouldn’t expect to earn a fair wage for their time.

2. Predictability and cost of living: 

Many hourly employees work in cities with high costs of living, and they could be working multiple jobs, Hersher said. A lot of these may be part-time jobs. For these workers, advance notice in what their schedules will be has a lot of value. 

As the Economic Policy Institute explained it in a 2018 article, “Volatile hours not only mean volatile incomes, but add to the strain working families face as they try to plan ahead for child care or juggle schedules in order to take classes, hold down a second job, or pursue other career opportunities.”

The power of analytics

Predictive analytics could help many of these issues, Hersher said. Retail has experienced an explosion of data studying people’s buying habits, how long they stay in a store and how much they purchase, which should allow employers to staff more efficiently. 

This could benefit employers and employees in a few ways. With predictive data, employers could still create schedules in advance, which means predictability for employees. And if employers are able to create more accurate schedules, their risk of either understaffing or overstaffing decreases, which could help deter some of the negative impacts that understaffing and overstaffing may have on both employers and employees.   

“The more you can spot trends, the better you can anticipate needs and the more you can reduce changes,” he said.