April Hot Topics:
- Human Resources Policies and Procedures
By Renee Sheetz Davies, President, Human Resources Professional Group - State New Hire Reporting - Are you in compliance???
By Fred Patterson, lll, District Sales Manager, AmCheck - Premium Rates Stabilize After Insurance Commissioner & WCIRB New Rate Methodology
By Eric Sheetz, Commercial Insurance Broker, The Michael Ehrenfeld Co.
Human Resources Policies and Procedures
By Renee Sheetz Davies, President, Human Resources Professional Group
Human Resources Policies and Protocols...why is it important to implement these practices?
There are many reasons why an employer should provide a solid list of human resources
procedures for their managers and supervisors to follow. A manager should not be making
their own decisions as to how to handle employment issues, just as he or she should not
always need to turn to you with questions about how to handle common human resources
situations. The policies you outline should guide your managers and supervisors in responding
appropriately to an employee and most situations that should arise.
Each manager and/or supervisor should be trained to be sure they understand all policies and
procedures and to follow through with these regulations. It is important they enforce company
policies and do so consistently. Lawsuits and internal conflict could ensue if procedures are not
followed and enforced by all supervisors.
The key to creating a fair, organized policy is to first identify clearly the specific need for the
policy. Some of these needs might include the following:
- if there is confusion about appropriate dress codes, cell phone use and personal
computer use
- situations that might warrant extra guidance (travel expenditures or standards of
conduct)
- compliance with existing, new or revised laws (FMLA, ADA, EEOC)
- creation of an environment that includes fair and just treatment for all employees
(especially in regards to paid time off, jury duty, and bereavement time).
Once you identify the policies and/or procedures you would like to see implemented, the next
step is to convey the goal of each policy. Although your goal should be to keep procedures short
and simple, they should include enough details to clearly state the company's position.
Next, managers and supervisors need to be informed of the new policy and trained in its
application. The managers and supervisors should then be tasked with communicating the
new policy to employees, and employees should be informed as to the reason a policy is being
instituted.
An important note to remember, however, is that one employee's ill behavior should not dictate
a company-wide policy that will affect all. Further, management should have some leeway in
dealing with an employee's needs. The main objective of instituting necessary policies and
procedures is for all employees to feel they are being treated fairly and justly in an organized,
cohesive environment.
Check out our May 2012 newsletter where we will review how to write an effective human
resources policy.
We invite you to contact HRPG if you would like to discuss ways that HRPG may assist your company in working through any of the HR challenges you see for 2012. Contact us at rdavies@hrpg.com or (619)421-0074.
State New Hire Reporting - Are you in compliance???
By Fred Patterson III, District Sales Manager, AmCheck
As we hurry throughout our day-to-day duties, it's not uncommon for me to come across
organizations that aren't up-to-date on the laws that all employers are subject to. Below you'll
find an outline of the requirements for new hire reporting as well as an updated provision
that will be effective as of next month. Many payroll companies offer to assume the new hire
reporting functions and associated liabilities for their clients and AmCheck is no exception to
this.
All new employees in 2012 must complete Forms W-4 and I-9. Employers are required by
federal and state law to file information with their respective agencies on employees who
are "newly hired" or rehired after an unpaid absence of more than 90 days. Paper reports must
be received within 20 days after the employee's first day of work, rehire, or return to work.
The definition of a "newly hired" employee is an employee who has not been previously
employed by the employer or was previously employed by the employer but has been separated
from such prior employment for at least 60 days. This provision is effective April 21, 2012.
Electronic reports must be submitted at least twice per month and are required only after an
employee is hired.
Employers are required to report the new employee's name, address, social security number,
date of birth, date of hire (effective June 8, 2011), employee's state of hire (only if reporting as
a multistate employer), and the employer's name, address, and Federal Employer Identification
Number.
Multi-state employers may choose to report all new hires to only one state, but they must report
electronically and also notify the U.S. Department of Health and Human Services.
For more information or questions regarding your payroll processes, please contact Fred Patterson III, District Sales Manager for AmCheck, a payroll solutions firm with offices throughout the United States. Fred may be reached at fred.patterson@amcheck.com. (619) 595-7900.
Premium Rates Stabilize After Insurance Commissioner & WCIRB New Rate Methodology
By Eric Sheetz, Commercial Insurance Broker, The Michael Ehrenfeld Co.
2011 was the first year in which the California Department of Insurance and the WCIRB used
a new methodology to determine the advisory "pure premium rate". California Insurance
Commissioner Dave Jones adopted $2.33 as an average pure premium rate and noted
that the "average filed pure premium rate" in early 2011 was $2.37 per $100 of payroll and
the "average charge rate" was $2.38, which is down from the 2003 average of $6.29 per $100 of
payroll.
While rate-setting changes may result in increases for some employee classifications, it appears
that rates paid by employers overall have remained very stable in a time when the California
economy was weak.
Also, news from the WCIRB that the calendar loss ratio for the first 9 months in 2011 had
decreased from the 2010 calendar loss ratio. Adding to the cheer for California employers was
a 28% reduction in assessments authorized by Labor Code 62.5 and 62.6. These assessments
fund the Workers' Compensation Administration Fund, the UEBTF, the SIF fund, Cal-OSHA,
Labor Standards Enforcement and the Workers' Comp Fraud Account. The reductions in
assessments were achieved through fiscal controls put in place by Governor Brown.
For more information or questions regarding your companies risk exposure, please contact Eric Sheetz, Property and Casualty Insurance Broker for The Michael Ehrenfeld Co. at ESheetz@ehrenfeldinsurance.com, (760) 809-8510.
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