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Posted on February 22, 2000July 10, 2018

How Important is Salary to Creative Technical Employees

According to an eMedia Staffing survey of nearly 400 creative technical professionals, 28% consider money first when deciding whether to take a new job.


For hiring managers, being knowledgeable about current regional and national ranges is key. Beyond dollars and cents, the money offered as part of a candidate’s offer package tells them in a very tangible way that their work is valued.


Creative technical people view monetary compensation as a reflection of their artistic value. No artist wants their work to end up in the bargain basement. Offering competitive salaries will go a long way in defining a company as one of the “players” when hiring star talent.


SOURCE: eMedia Staffing, Portland, Maine, February 2000.

Posted on February 20, 2000July 10, 2018

IDear Workforce-I Form to Decline Coverage

Q


Dear Workforce:


Hi! Maybe you can help me. Is there a standard form employees fill out when they decline coverage?


–Susan


 


A

Dear Susan:


There is no standard form; the only language that is becoming “standardized” involves pre-tax employee contributions wherein the employee acknowledges that their election is valid for an entire plan year unless there are specific changes in status as defined in the regulations.


This would be relevant when someone declines coverage under a flex scenario. Even outside a flex situation, an employer would not want to allow people to change their minds and enroll before the next enrollment period to control their anti-selection claims costs (insurers provide likewise). So, standard language should reflect an election for the plan year unless specific status changes occur as specified by the insurer or the plan sponsor.


 


SOURCE: Werner Gliebe, a senior consultant in the corporate practice of the Segal Company. Gliebe works out of New York and Cleveland.


E-mail your Dear Workforce questions to Online Editor Todd Raphael at raphaelt@workforceonline.com, along with your name, title, organization and location. Unless you state otherwise, your identifying info may be used on Workforce.com and in Workforce magazine. We can’t guarantee we’ll be able to answer every question.

Posted on February 18, 2000July 10, 2018

How to Work with Editors

The staff of Workforce offers a few guidelines – from the editor’s point of view – on how to get publicity for your product or service.


  • Treat the Editors As You Would a Good Customer
  • Identify Your Publicity Options
  • Understand the Objectives of Your Publicity Program
  • Don’t Use Advertising to Try to Guarantee Publicity
  • Don’t Be Discouraged Easily
    Treat the Editors As You Would a Good Customer
  • Put the magazine’s editor on your promotion list.

You probably have the editor on your list for news releases, but don’t stop there. An editor also should receive direct mail promotions and newsletters that offer information about your products and your company. In addition, send product brochures and anything else you send to customers to help explain and sell your product.


In reading these materials, an editor might find a story idea that hadn’t occurred to people in your organization.


  • Know your customer.
  1. Call and get a sample copy of the magazine; most business publishers are happy to supply them. If you’re a regular advertiser, someone in your organization probably receives it.
  2. Look at the publication. Read the letters to the editor, the editor’s page, a sample department, and a sample feature. Once you have a feel for the editorial style, you’re in a much better position to talk to an editor. You don’t have to be an expert. Most editors simply appreciate the fact that you took the time to look at the magazine before calling.
  3. Get a reader profile. Again, the person in charge of advertising in your organization probably has a reader profile. If not, call and ask for one.
  4. Ask for a copy of the magazine’s editorial philosophy or mission statement.
  • When you call the editor, assume the role of salesperson with a new client.

With a new client, you find out about the client’s needs first. The quickest way to an editor’s heart is to understand his or her needs.


The quickest way to end a telephone call is to launch into a sales pitch about your product or service and then pause expectantly for the editor to tell you that the next cover story will be a verbatim review of those sales points.


The reaction after such a conversation is: “So, where’s the story idea?” Instead, ask a few questions about the magazine, its future editorial direction and upcoming projects. Find out what’s happening first, and then suggest a way in which your company can fit into those projects.


A few questions to ask: 1) How often do you feature articles on “xyz” topic? 2) Do you have any articles on that subject scheduled in the next few months? 3) What kinds of angles are you looking for? 4) Do you need experts in the field to interview? 5) Are you looking for submissions? 6) Do you need any ideas? 7) If so, would it be helpful to speak with someone in our organization to brainstorm story ideas? 8) How can we work together in the future?


  • Understand the editor’s job.

The editor’s job, in essence, is to sell subscriptions. To that end, he or she must develop editorial that meets the specific needs of the readership. If you can help, you become an ally.


 


    Identify Your Publicity Options
  • Information about a new product or new product development

If your company has developed a new product or enhanced an existing product, then you have a prime opportunity for publicity in a “new product news” section of the magazine, provided there is such a section. (Look at the magazine before you call. If you’re not sure, ask before you go into a lengthy discussion about your new product upgrade.)


If there is a new product section, find out: 1) What are the requirements for submitting information? 2) What types of information are included? 3) Does the magazine seek photographs? If so, what are the specifications? 4) When is the deadline? 5) Is there much of a backlog? 6) Does the section run every issue? 7) What will enhance the chances of getting my information published?


If you’re going to call about new product announcements, call in time to incorporate what you learn into your press release.


Keep in mind that most news releases are about products. They’re important to you, but generally have the least priority to an editor. Ask the editor what you can do ahead of time to help you get your release into print.


Don’t send a blind release and then call the editor three days later to ask if he or she received it. Most of the time, the editor won’t know. It may be buried in a pile, or it may have been forwarded to another editor on the staff that handles a particular subject area.


A good editor will call you if the material can be used or raises further questions. If an editor does call, be sure to respond promptly.


  • Company announcements.

Company announcements generally fall into two categories: 1) Financial/business news, such as mergers and acquisitions, quarterly profit figures and so on; 2) Personnel changes, such as the naming of a new president or new executive in the HR department. Review each magazine to see if space is devoted to these categories before sending a release or calling to pitch a story idea.


  • Letters to the editor.

Editors are always looking for thoughtful and thought-provoking letters about the industry or profession. A letter to the editor allows you to express an opinion and position your company as an authority in the field.


  • Personnel topics.

Although not appropriate for most business magazines, personnel/human resources magazines are looking for story ideas about personnel management. Therefore, don’t focus only on products; look at employee and HR management in your organization, too.


Your company may have a model HR program that would make a good story. Talk to your human resources manager to get a sense of what he or she thinks is most interesting in your organization. Then talk to the editors to find out if you may have found a good article topic.


  • User stories.

Sometimes, editors also are looking for user stories: How a customer developed an HR program and used your product or service in the process. Be careful here; there’s a difference between a case study and a testimonial. A testimonial is written from the sales point of view and explains why readers should buy the product or service.


A case study focuses on the customer’s problem and how it was solved; mention of the product or service may be made only in passing.


 


Understand the Objectives of Your Publicity Program


In the best of circumstances, you first identify your publicity and public relations goals. Define those first, and you won’t be disappointed with your efforts. Without defining goals, you’ll be disappointed with anything less than a free sales pitch disguised as editorial. With more clearly defined goals, however, you can better focus your publicity efforts. Some examples might be:


  • Increase your name recognition.

If you are in a highly competitive market and several of your competitors are household or business-world names, one goal might be frequency of mention of your company in the media. That could mean a quote here or a statistic attributed to you there.


  • Establish your company as an authority in the field.

Your name could be well known, but what’s your reputation? By providing experts to be interviewed or by writing an article, you can help establish your company as an industry leader.


  • Create need by raising issues.

Suppose you have a nationwide chain of day care centers that could be used by employees. Not many companies, however, offer childcare. You might develop an article that outlines birthrates, labor force participation among women with children, turnover and absenteeism problems because of a lack of affordable day care, and so on. By raising these issues, you create awareness of the need for your product.


  • Explain the issues your product addresses.

Suppose you are a recruitment-advertising agency creating help wanted ads for companies. Your salespeople repeatedly are faced with the objection that a company does not need to hire an ad agency to write a help-wanted ad.


“Anybody can do that,” says a potential customer. You might develop an article discussing what a recruitment ad should do, what it should include, and why it’s important to consider copy, graphics, media and other aspects in marketing a job opening.


  • Explain how to be a better consumer of your type of product or service.

You have a better product or service than your competitor, but you’re losing sales because the competition charges less. You might want to develop an article that outlines all the features to look for in purchasing your type of product.


Your salespeople might say all the time, “I wish our customers understood X about the field.” That wish might be the genesis of an article that explains X.


  • Explain how to expand the uses of your type of product or service.

Your product is not new. Everyone knows what it is, but you want to expand sales. Explain the alternatives. For instance, you’re a temporary services firm. Everyone knows what temps do. But you have a client that is hiring management-level temps from your organization and has found it’s a cost-effective way to get top management experience for special projects. You may have a story.


 


Don’t Use Advertising To Try to Guarantee Publicity


Don’t preface or close your editorial conversations with pointed references to your advertising schedule or veiled threats about continuing your schedule if you get coverage.


If the editors are doing what the publisher has asked them – getting and keeping subscribers – then the staff first must focus on the magazine’s readers. Remember that the reason you chose to advertise in a particular publication is the publication’s audience. Quality editorial drives readership – especially when a magazine’s circulation is paid.


The editorial creates the environment for your advertising and publicity. Work with the magazine to build a long-term relationship.



    Don’t Be Discouraged Easily

If your first idea doesn’t work, try again. What’s important is your relationship with the magazine.


  • Be a constant resource.
  1. See if the magazine has an editorial advisory board. Find out its role. Is someone from your firm well suited to serve on that board? Provide the magazine with a list of resource people who are in a good position to comment on various human resources issues (and who will return a reporter’s telephone calls).
  2. Write letters. Let the editors know – pro and con – how you react to their coverage. Make suggestions.
  • Explore other options.

Many industry publications don’t have the staff, time or travel budget to attend press conferences. In this age of electronic communications, however, there are other options.


Find another way to get the information to an editor. We’ve seen too many organizations fail to follow up with a press kit once we declined an invitation to spend two days on the road traveling across country to attend a 30-minute press conference.


Workforce editors also get invited to attend users’ conferences. It’s usually not cost effective for an editor to go. But you can find out what an editor would look for if he or she was there, and you might be able to find a story idea or generate publicity anyway.


Sometimes advertisers review a magazine’s editorial line-up for publicity options. They see that one of the articles applies directly to their product. They call to see if they can somehow be included in the issue. The editor indicates that the article is already written. The caller says goodbye and hangs up, but he or she has missed an opportunity. For example, suppose that the magazine has a piece on drug testing scheduled for the September issue. By asking a few questions, you might find that he or she is looking for material for a chart to accompany the article, or for a follow-up scheduled for November.


Industry publicity is a good adjunct to your sales and promotion efforts. It’s no mystery, just hard work. Editors can become your allies if your first goal is to find out how you and your company can help them meet their editorial goals.


Posted on February 18, 2000July 10, 2018

How to Hook Creative Technical Employees

Hiring managers have discovered that most creative technical candidates they interview today have current or recent offers tucked away in their hip pocket and are very savvy about their market value. Potential employers may be surprised to find themselves being interviewed as thoroughly as they are used to interviewing.


Understanding what it takes to attract and retain star talent can give a firm a competitive advantage in today’s market. You may be surprised to learn that salary/benefits is not the most deciding factor in most offers.


Interesting and challenging projects: A recent survey of nearly 400 creative technical professionals found that interesting and challenging projects was the number-one factor 36% of the talent surveyed cited in determining their acceptance or refusal of a job offer. Creative talent are most interested in what types of projects they could be working on.


Are the projects challenging? Interesting? What does the client roster look like? Will their contribution and expertise be appreciated and their aesthetic style add value to a currently thriving creative environment?


Seeing is believing: The strongest selling points for creative technical professionals are the visual aspects of the job — projects and workspaces alike. To engage the creative technical applicants’ heightened sense of the visual, hiring managers should show them great examples of their company’s past and current projects.


They should consider escorting them on a walk-around tour of the workspace. Allow them to SEE the projects and work environments the company has to offer.


SOURCE: eMedia Staffing, Portland, Maine, February 2000.

Posted on February 17, 2000July 10, 2018

Charitable Solicitation

P

reserve Charitable Giving Act (S. 929/H.R.2019)


Summary
This legislation (S. 929/H.R. 2019) would amend the National Labor Relations Act (NLRA) to allow employers to permit solicitations and distributions by charitable groups — but not unions — without committing an unfair labor practice.


The NLRA currently provides that an employer engages in discrimination under Section 8(a)(1) if it denies union access to its premises while allowing similar distribution or solicitation by non-employee entities other than the union. The proposed legislation states, “that in the case of a published, written or posted no solicitation or no access rule, an exception for charitable, eleemosynary, other beneficent purposes shall not be grounds for finding an unfair labor practice.”


Status
This bill was introduced in the Senate by Sen. Tim Hutchinson (R-AR) and referred to the Committee on Health, Education, Labor and Pensions. A companion bill was introduced in the House by Rep. Asa Hutchinson (R-AR) and referred to the Committee on Education and the Workforce.


Impact
Currently, an employer only may permit non-employee solicitations if it also allows equal access to unions for the purpose of engaging in solicitation or distribution for union purposes. Further, the Circuit Courts and National Labor Relations Board (NLRB) are not in agreement on the application of the current law to charitable organizations, leaving employers uncertain about what kind of policy is appropriate, and more apt to follow the conservative approach — to disallow any solicitations or distributions.


The proposed legislation would give employers the opportunity to permit charitable solicitations while continuing to prohibit union solicitation or distribution. The wording of the proposed legislation is not clear, however, on the breadth of interpretation to be given to “other beneficent purposes,” leaving it, instead, up to the NLRB and the courts to decide.


To learn more

  • View these bills, enter the bill number — for example, “H.R. 602” under “Search by bill number.”

SOURCE: Hewitt Associates LLC

Posted on February 17, 2000July 10, 2018

Washington Watch

Along with Hewitt Associates LLC, Workforce is monitoring action in the nation’s capitol.


Come here regulary to find out the latest on major legislation and regulations affecting the business world.


Members of Congress are introducing a flurry of new workforce-related bills this year. You’ll read about them here and also in your weekly e-mail newsletter.

Posted on February 17, 2000July 10, 2018

The Challenge of Challenge

Talk about irony. It’s Labor Day, and while my neighbors gather around their grills, I’m huddled over my keyboard laboring over this column. There’s a deadline to meet, and though my Workforce.com editor is kind and understanding and possibly responsive to subtle buttering up from a tardy columnist, I need to finish this up before tomorrow.


Really, I’m in something of a panic because my schedule for the rest of the week is so jam-packed. If I don’t finish this column now, it’s going to be another late night. But wait, is that the smell of bratwurst wafting up from a grill? Wow, that smells good. (Long pause while every fiber of my being focuses its attention on an imaginary brat.) Forget the bratwurst, get back to the column! You have to get it done or your appointment book will never forgive you. What was the topic again? Oh yeah, challenge.

My monthly Workforce Online column provides insights into the twenty-two key ingredients of a meaningful workplace — what I call the “meaning keys.” These keys emerged from my extensive interviews and focus groups with people from all walks of life. Each column is devoted to a separate key.

Challenge is one of them, and it just so happens to be one of the most, well, challenging. So many people find deep fulfillment in situations that stretch their skills, talents, know-how, and deep interests. Yet so many workplaces go too far in either direction — either they wear people out with impossibly demanding work, or they keep hands busy but leave minds unengaged.

Despite excessive bratwurst fumes, I have developed a detailed assessment tool that will help you determine where you fall on this challenge continuum. While I run outside and visit with my neighbors, review the following items carefully, and place a checkmark in front of each statement that accurately describes your current situation.


_____


You’re famous around the office for your Post-It Note origami.


_____


People occasionally snap their fingers in your face and call out: “Hello, is anyone home?”


_____


A big decision consists of “cheese on wheat” or “fig bar.”


_____


Out of the blue, you get a call from a casting director who wants you as an extra in the upcoming movie “The Stepford Employee.”


_____


You follow with some anticipation the results of Howard’s Tuesday evening bowling league.


_____


You feel genuine pride after sorting your paper clips by size.


_____


A colleague asks you how long you’ve been practicing self-hypnosis.



If you’ve checked any of the above items, or if any of them seem even remotely true to life, you’re seriously under-challenged. I strongly recommend that you fire up your grill, cook yourself a tasty meal, and worry about things later on in this column.


If you didn’t check any boxes, you’re not in the clear just yet. Review this second set of assessment items:


_____


You look up at the clock and it’s already 5 p.m. — the next day.


_____


To replace those time-draining coffee breaks, you opt for a caffeine patch.


_____


As another time-saving measure, you stop using all commas, colons and semicolons.


_____


After a late-night work session, you’re pretty sure you see religious icons in your screen saver.


_____


You’ve operated a pager, a cell phone, and a laptop … at the same time … while eating dinner … at your child’s recital.


_____


You come up with a neat idea: the waterproof laptop, perfect for achieving high productivity in the shower.


_____


The evening cleaning crew offers to put aside its own chores and help you finish whatever it is you’ve been working on for the past several months.



If any of these seven items seem to apply, you face a major case of overwork. In your case, I’d bypass the grill entirely and have the food delivered.


Seriously, there are certain actions you can take whatever your situation:


  • Gather your immediate colleagues for an ongoing conversation about the current situation. Perhaps you can team up and help each other. Collective effort is more likely to produce a long-term solution that benefits everyone.


  • If you’re seriously under-challenged, take a process that’s all your own and make it faster, better, and more cost effective. You’ll end up saving some time in your schedule, so direct it to stuff that will engage your brain and stir your deep interests.


  • If you think you’re not in a position to re-create how your work is done, search for one sliver of opportunity — something you can do differently to get your brain back in gear, or something you can stop doing so you can use the saved time for more challenging activities, or at least someone you can talk to who can help you start turning things around.


  • Establish a demanding stretch goal just for yourself. It should be aligned with all the other goals around you — in your work unit, for instance, or the organization as a whole — but it’s yours and yours alone.


  • Consider making this personal goal setting process a group endeavor. If these goals are big enough — and they should be — you’ll need help to turn them into reality.


  • If you’re totally over-challenged, put your schedule under a microscope. Which of your work activities adds little or no value? This can be a painful process as you realize that those monthly reports you’ve been laboring over for the past several years are read by a grand total of one person: you. Sort out what’s really important and what only seems to be important. Then start trimming away.


  • Watch out for perfectionism. If you’re doing something over and over and over to get it just right, get in touch with your customers and find out what they think. You want to thrill them, to be sure, but it won’t do anyone any good if you burn yourself out in the process.


  • Recognize the sharp distinction between being conscientious and being a control freak. Ironically, your excessive workload just might be an opportunity to widen responsibility and boost empowerment.




Other columns by Tom Terez:


  • Can We Talk?
  • Making the Most of Acknowledgment

Posted on February 17, 2000July 10, 2018

IDear Workforce-I What if HR’s the Problem

Q

Dear Workforce:


Here’s a challenge — what should be done when HR is the corporation’s biggest problem!? Our morale is low, the employee turnover is beginning to creep up, and HR has no credibility.


 



A

Dear Big Problem:


Yike. Doesn’t sound like a great scenario for HR.


The good news is that lots of HR departments have reinvented themselves, sometimes under totally different names and missions, e.g. Workforce Management department.


Ask yourself these questions:


  • Is HR supporting the business objectives through HR programs?
  • Do HR processes get bogged down and create frustration in the organization?
  • What role does HR have in creating an “Employer of Choice” environment?
  • What role does HR play in the organization? Policy keeper? Police? Transactional paper pusher? Change agent?

Then, a suggested first step: Decide what you want HR to be within the organization, then create an action plan to deliver the results. Also, determine the origin of the morale problem by doing such things as surveying the employee commitment level, reviewing industry trends, and talking one-on-one with employees.


 


SOURCE: David Sholkoff, Deloitte and Touche, January 24, 2000.


E-mail your Dear Workforce questions to Online Editor Todd Raphael at raphaelt@workforceonline.com, along with your name, title, organization and location. Unless you state otherwise, your identifying info may be used on Workforce.com and in Workforce magazine. We can’t guarantee we’ll be able to answer every question.

Posted on February 17, 2000July 10, 2018

The Workforce Numbers

A number of things you may not have known about work and life.


Percentage of her life Hillary Clinton has lived in New York:

3/10 of one percent


 


Countries traveled to by Workforce global HR writer Charlene Solomon
20


 


Number of foodservice employees among the Three Men in a Tub:
2


 


Billions of dollars by which President Clinton increased taxes in 1993:
253


 


Number of additional tax increases President Clinton proposed in his Discretionary Spending Offsets Act for Fiscal Year 2000:
75


 


Percent by which Clinton reduced the welfare rolls:
48


 


Percent of jobs created during Clinton administration that are private sector:
92


 


Dollars you would make in one day in 1913 if your boss was Henry Ford:
5


 


Age of British man who held up a school headmaster on January 13, 2000, with a fake plastic gun:
70


 


Age of Derrick Seaver, candidate for the Ohio senate, when he was interviewed by Workforce.com in January 2000:
17


 


Number of the 50 states in which the gap between the richest 20% and the poorest 20% of families is wider than it was 20 years ago:
46


 


Percentage of Americans in 2001 who will be non-Hispanic and White:
71


 


Percentage of Ivy League students that Pat Buchanan says should be Christian and European Americans:
75


 


Colors of hair, combined, worn by Shaquille O’Neal and Charles Barkley on an average day at work:
0


 


Colors of hair worn by Dennis Rodman on an average day at work:
3


 


NBA championship rings, combined, belonging to Shaquille O’Neal and Charles Barkley:
0


 


NBA championship rings belonging to Dennis Rodman:
4


 


Hours after childbirth insurers must cover your hospital stay:
48


 


Hours after C-section insurers must cover your hospital stay:
72


 


Percentage of Workforce.com News Poll respondents who say their office most closely resembles the TV show ER:
58


 


Percentage of Workforce.com News Poll respondents who say their office most closely resembles the TV show Ally McBeal:
3


 


Rank of the word “Plastics” in the most-quoted lines from the movie The Graduate:
2


 


Words Lloyd Dobbler, hero of the 1989 hit movie Say Anything, used when responding to the question, “What do you plan to do for a living?”:
122


 


Female U.S. Attorneys-General before Janet Reno:
0


 


Female U.S. Secretaries of State before Madeleine Albright:
0


 


Approximate number of visitors to Workforce.com from the country of Mauritius on one randomly-chosen day:
2


 


Approximate number of visitors to Workforce.com from the Slovak Republic on one randomly-chosen day:
5


 


Thousands of dollars spent to purchase Babe Ruth:
125


 


Millions of dollars spent to purchase Los Angeles Dodger pitcher Kevin Brown:
105


 


Years Jerry Springer spent as Cincinnati City Councilman and Mayor:
10


 


Emmies won by Jerry Springer as a political reporter:
10


 


Personalities belonging to one former guest of the Jerry Springer show:
15


 


Number of times the word “online” appears in a 1996 Scrabble® Dictionary:
0


 


Current value of Ebay’s stock, in billions of dollars:
18.6


 


Percentage decrease in the value of Rite Aid’s Stock, 1999:
73.6


 


Millions of dollars to be spent over the Internet on prescription drugs this year:
450


 


Pages of Workforce magazine which Drew Carey reportedly skips each month in preparation for his show:
0


 


Notes: Hillary C. born 10/26/47 and moved to Chapaqua 1/6/00…Her husband’s welfare and job-creation stats are from whitehouse.gov… Charlene’s been to England, Wales, France, Belgium, The Netherlands, Spain, Italy, Israel, Cyprus, Korea, Hong Kong, Singapore, Indonesia, Korea, Canada, Mexico, the Bajamas, Japan (where she lived for two years), the United States and Jamaica. …Income gap information from the Center on Budget and Policy Priorities and the Economic Policy Institute…Population figures from the U.S. Census Population Projections Program…Buchanan’s suggestion to limit the number of non-white Christians at top colleges made in his 11/28/99 New York Post column…Henry Ford info from 12/27/98 Detroit News…Plastic gun story from Reuters…Online drug info from The Industry Standard and Forrester…The Graduate info from www.homevideos.com; the most-quoted line is ‘Are you trying to seduce me, Mrs. Robinson?’ …The Butcher, Baker and Candlestick maker were in the Three Men in the Tub poem…Drew Carey’s staff tells us he reads the publication cover to cover…Dobbler’s speech is as follows: “A career? I’ve thought about this quite a bit sir and I would have to say considering what’s waiting out there for me, I don’t want to sell anything, buy anything or process anything as a career. I don’t want to sell anything bought or processed or buy anything sold or processed or repair anything sold, bought or processed as a career. I don’t want to do that. My father’s in the army. He wants me to join, but I can’t work for that corporation, so what I’ve been doing lately is kick-boxing, which is a new sport…as far as career longevity, I don’t really know. I can’t figure it all out tonight, sir, so I’m just gonna hang with your daughter.”


Posted on February 17, 2000July 10, 2018

Genetic Testing

Introduced by Senate Majority Leader Tom Daschle (D-SD)and Rep. Louise Slaughter (D-NY), this legislation has provisions related toemployment and to health insurance.


    On the employment side, the bill would prohibit employersfrom making employment decisions based on information from genetic tests ofthe employee, or the employee’s family members, or on occurrences of diseasesor disorders in an employee or an employee’s family members.


    On the health insurance side, the bill would prohibitdiscrimination based on genetics in individual enrollment and group eligibilityor contribution rates. Also, employers would be prohibited from collecting orpurchasing genetic information about an employee or employee’s family members.The legislation provides for two exceptions — under limited circumstances,employers may monitor the genetic effects of certain toxic substances in theworkplace, and employers may provide genetic services to employees so long asthe results remain confidential.


Status
The Genetic Nondiscrimination in Health Insurance andEmployment Act was introduced in the Senate and House on February 13, 2001 andreferred to the appropriate committees. The legislation has received 24 co-sponsorsin the Senate and a majority of cosponsors, 254, in the House. Also, on July25 the Senate Health, Education, Labor and Pensions Committee held a hearingon the bill.


Impact
While employers generally agree with the premise thatgenetic information should not be used to render employment or health insurancecoverage decisions, most are concerned that the legislation as proposed is overlybroad in its coverage, damages, procedural requirements, and effect on certainprograms, such as employer-sponsored wellness programs. Additionally, employersargue that both Title VII of the Civil Rights Act, and the Americans with DisabilitiesAct, as interpreted by the courts and enforced by the Equal Employment OpportunityCommission, could be read or amended to prohibit genetic discrimination withoutthe necessity of a new, separate law.


    The proposed legislation’s prohibition against thecollecting of genetic information about employees or their family members failsto address what employers should do with information provided on routine healthinsurance claims, or discovered through unsolicited means. Moreover, the legislationwould require employers to bear the burden of proof with respect to whetherthe employer’s knowledge of genetic information was a factor in any adverseemployment action.


    Moreover, an individual pursuing a claim under thisbill could go directly to court without first seeking administrative reliefthrough the EEOC or other state or federal agency as is required under othercivil rights statues. State and federal administrative agencies actively investigatecharges brought before them and through this process help screen out frivolousclaims. Administrative agencies also promote timely resolution of claims, asthey impose more rigid filing deadlines. The proposed legislation, however,does not specify any statute of limitations, which suggests that claims couldbe brought at any time in the future without regard to how much time has passedsince the claim accrued.


    The most significant perceived impact of the proposedlegislation on employers is the potential for unlimited compensatory and punitivedamages for violations of the act. By way of contrast, both Title VII of theCivil Rights Act and the Americans with Disabilities Act cap combined compensatoryand punitive damages for the largest employers (500+ employees) at $300,000.Employers fear that the potential for such high damage awards would cause employer-defendantsto settle more cases without regard to their actual merit, setting a dangerousprecedent.


    Finally, many employer groups suggest that the proposedlegislation is not even necessary. They contend that genetic discriminationalready is protected under the ADA and, in some cases, Title VII. Specifically,in its 1995 Guidance on Disability, the EEOC states that genetic discriminationis prohibited under the “regarded as” prong of the ADA as well asother provisions prohibiting employers from requesting or obtaining certainmedical information. While these positions have not been fully addressed bythe courts, the groups contend that the potential for judicial interpretationis there, and further legislation is unnecessary.


To Learn More

  • Viewthese bills, enter the bill number — for example “H.R. 602″under “Search by bill number”.
  • Senatehearing

SOURCE: HewittAssociates LLC

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