Exam 3 Study Guide Flashcards
benefits
non monetary pay
rewards given for membership
job security
legally required benefits
social security unemployment insurance unpaid family/medical leave COBRA workers compensation
why do companies offer benefits?
legally required
attract and retain employees
spending money before saves lots of money later
social security
comes from the social security act of 1935
retirement income: can choose when to start receiving retirement income (62 or 70 are options)
disability: strict definition of disability - must last one year or result in death (avg. check in 2013 was $1132/mo.)
medicare: health insurance coverage for 65+, which is usually 1.455 of a paycheck
survivor benefits: for a deceased employee’s surviving family members. Average survivors check was $1214 in 2013
unemployment
temporary income when involuntarily unemployed
to qualify, must meet requirements showing they had been employed, be available and actively looking for work, and involuntary unemployment (laid off)
Usually lasts around 26 weeks.
unpaid family and medical leave (family and medical leave act)
companies with 50+ employees must provide up to 12 weeks unpaid leave
Birth or adoption of a child
Care for sick family member: spouse, child, or parent
Own serious health needs
Active duty (e.g., family member injured in active duty – 26 weeks)
Many do not take the whole three months if they can help it
worker’s compensation
Medical care, continuing income and rehab expenses for those injured at work; survivors of those who die from the job
No-fault system
Amount paid depends on risk for an occupation, frequency/severity of injury, and specific injury
Roughly 2/3rds of salary at the time of injury
HR’s role in WC: safety and training, audit workers’ comp claims, and redesign jobs to lower risks
injury is a cost of doing business
covers employer’s: assumed employment risk, negligent co workers, and contributory negligence *employees agree not to sue company in exchange for worker’s comp
covers employees: cost of injury, temporary, partial, or permanent disability, and survivors insurance
health insurance
Health care coverage for employees & dependents
Medical, dental, vision, wellness programs, employee assistance programs, mental health & counseling
Patient & Affordable Care Act (PACA) of 2010 aka “Obamacare” - Aims to provide more affordable and consistent health care for Americans
Employers with 50 or more full time equivalent (FTE) employees are required to provide health coverage to full-time employees or else pay a tax penalty
Since health care is so expensive, companies are making employees pay more out of pocket, going for group discounts, and promoting employee health.
health insurance continued
Medical insurance terminology
COBRA - Allows employees to keep being enrolled in their health insurance 18-36 months after separating from company. “Qualifying event” = termination (not gross misconduct), reduced hours, employee death (in which case, survivors can start paying for it)
Health maintenance organization (HMO) - In-network coverage; need referrals to see specialists and pay out of pocket for those services. Costs less, but has limited access to services
Preferred provider organization (PPO) - Has in-network AND out-of-network coverage; more expensive but more flexibility and providers accessible under coverage
Employee wellness program - Aimed to reduce specific health risks (e.g., BP, obesity) via education, fitness facilities, and/or counselors.
voluntary benefits
insurance (life or long-term disability)
paid time off - sick leave, vacations, severance, and paid holidays
employer services - counseling, child care, elder care, gyms, foods, discounts
voluntary benefits: retirement
Defined Benefits (pension) plans: Fixed dollar amount of retirement income (based on salary in last 3-5 yrs). “Defined” in this context means you know what will be paid out to you upon retirement. Usually, the employer contributes everything in a defined benefits plan
Employment Retirement Income Security Act (ERISA) - Sets minimum standards for most voluntarily established pension and health plans to provide protection for individuals in these plans Vesting & portability
Created the Pension Benefit Guarantee Corporation (PBGC) - Insurance for retirement benefits; guarantees a basic benefit during employer’s financial difficulties
Major shift from defined benefits (pension) to defined contribution plans over the past few decades.
defined contribution plan
Contributions = Payments made for retirement from company, employee, or both.
“Defined” in this context means you know what is going into the retirement account now (e.g., 8%), but no guarantee on what will be there when you retire (due to investment risks, etc.).
E.g., 401k
Employees contribute by having part of their paycheck rolled into a retirement savings account (e.g., 8% per month).
Employer may match it, double it, or contribute absolutely nothing.
employee assistance programs (EAPS)
For alcohol/drug abuse, domestic violence, emotional impact of diseases, depression, eating disorders.
Accessed in a confidential manner (e.g., toll-free number or a web site).
Employees who reach out for these services are treated privately and their issues are not addressed with the employer.
Often addresses short-term problems, and any longer-term conditions (e.g., depression, stress) are referred to the appropriate resource (like a mental health provider).
advantages of EAP’s
Reduced costs:
- Turnover, absenteeism
- Medical costs
- Unemployment insurance rates & workers’comp. rates
- Accidents
- Disability insurance
administering benefits
Flexible benefits plans or Cafeteria plans
Benefit plans that enable employees to choose the benefits that are best suited to their particular needs
A basic or core benefits package of life and health insurance, sick leave, and vacation ensures that employees have a minimum level of coverage
Employees use “credits” to “buy” whatever other benefits they need.
how to run a successful benefits program and control costs
online administration of benefits
higher deductibles
wellness programs
audit claims
1) competitive benefits information
2) allowing employee involvement
3) administering benefits
4) communicating employee benefits information
5) flexible benefits for a diverse workforce
safety and health - it’s the law
In 2015, 2.9 million private-sectors workers reported nonfatal injuries and illnesses at work
Each year, the cost these injuries and illnesses totals more than $156 billion
$1 billion per WEEK in workers’ compensation alone!
In 2016, 5,190 employees died from work accidents
Back injuries, chronic pain, respiratory problems, and so on
Laws at state and federal levels to combat these problems.
OSHA of 1970
To “assure the safety and health of America’s workers by setting and enforcing standards; providing training, outreach, and education; establishing partnerships; and encouraging continual improvements in workplace safety and health.”
coverage - All nongovernmental employers and employees; state and local government employees
standards:
Apply to general industry, maritime, construction, and agriculture
Cover the workplace, machinery and equipment, material, power sources, processing, protective clothing, first aid, and administrative requirements
enforcing OSHA standards
OSH Administration helps to enforce OSHA. Employers have to:
1) Provide a safe workplace
2) Comply with OSHA standards
3) Document workplace injuries
4) Disclose hazard information to employees
Workplace inspections Workplace inspections Citations and penalties On-site consultations Voluntary protection programs Training and education
OSHA inspection priorities
First Level - Inspection of imminent danger situations
Second Level - Investigation of catastrophes, fatalities, and accidents that result in hospitalization of five or more employees
Third Level - Investigation of valid employee complaints of alleged violations of standards or of unsafe or unhealthful working conditions
Fourth Level - Special-emphasis inspections aimed at specific high-hazard industries, occupations, or substances that are injurious to health
citations and penalties
Other-Than- Serious: A violation that has a direct relationship to job safety and health, but one unlikely to cause death or serious physical harm. OSHA may propose a penalty of up to $7,000-12,600 for each violation.
Serious: A violation where there is substantial probability that death or serious physical harm could result and the employer knew, or should have known, of the hazard. OSHA may propose a mandatory penalty of up to $7,000-12,600 per violation.
Willful: A violation that the employer intentionally and knowingly commits, or a violation that the employer commits with plain indifference to the law. OSHA may propose penalties of up to $ 70,000126,000 per violation.
incidence rate
a way to calculate the # of injuries and illnesses during a given year
why do incidents happen?
Unsafe working conditions, work schedules and fatigue, unsafe acts (e.g., Unsafe speeds, tampering with safety devices, lifting improperly), some people are more… accident prone.
creating a culture of safety
Promoting Safety Awareness:
Role of Supervisor (communicating the need to work safely)
Proactive Safety Training Program
First aid, defensive driving, accident prevention techniques, hazardous materials, and emergency procedures
Using technology to help with safety awareness and training
Regulatory instruction•OSHA’s Web-based eTools
typical safety rules
Using proper safety devices
Using proper work procedures
Following good housekeeping practices
Complying with accident- and injury-reporting procedures
Wearing required safety clothing and equipment
Avoiding carelessness and horseplay
enforcing safety rules
- Jointly set safety standards with managers, 2.Participate in safety training
- Help design and implement special safety training programs
- Establish safety incentives and rewards
- Be involved in accident investigations.
investigating and recording accidents
Recordable Case:
Any occupational death, illness, or injury to be recorded in the log (OSHA Form 300)
Recordable accidents include: death, days away from work, restricted work or transfer to another job, or medical treatment beyond first aid
Other problems include loss of consciousness or diagnosis of a significant injury or illness by a healthcare professional.
safety hazards and issues
Workplace Violence:
Any physical assault, threatening behavior, or verbal abuse occurring in the work setting.
Beatings, stabbings, suicides, shootings, rapes, near suicides, psychological traumas such as threats, obscene phone calls, an intimidating presence, and harassment of any nature such as being followed, sworn at, or shouted at.
Over 2 million nonfatal workplace violence incidents are reported annually in the form of assaults, robberies, thefts, hostage takings, hijackings, rapes, and sexual attacks
Workplace violence happens often
Some surveys report as 10-20 murders and 18,000 assaults PER WEEK
Sabotage & negligent hiring
how can HR reduce illnesses, violence, and bullying?
Heighten security measures
Set up protocol to get notifications and complete incident reports about accidents quickly
Improve employee screening
Conflict management training
Management commitment to and employee involvement in preventing acts of violence
Analyzing the workplace to uncover areas of potential violence
Preventing and controlling violence by designing safe workplaces and work practices
Evaluating violence program effectiveness
Having an emergency plan in place
safety hazards and issues cont.
Fatigue, distracted Driving
Workplace Emergencies like Floods, hurricanes, tornadoes, fires, toxic gas releases, chemical spills, radiological accidents
Explosions - OSHA requires companies to have emergency action plans to deal with incidents such as these.
Crisis Management Teams (composed of hourly and managerial employees) - Work with HR to conduct initial risk assessment surveys - Develop emergency action plans - Perform crisis intervention during emergency events
Mandate - Gather facts about threat and Decide if organization should intervene, and if so, determine appropriate method
Ergonomics
health and stress management
Wellness and Weight Issues
Job Stress and Burnout
High demand, high effort, low control, low reward
Not all stress is bad! But prolonged stress – very bad
Weakened immune system –get sick more easily/frequently and takes longer to recover
Anxiety, depression, heart disease, anger, treating coworkers badly
Health care costs of high-stress workers up to 46% higher than those of less-stressed workers.
•Depression•Alcoholism & drug abuse
employee rights
Employee rights = fair treatment of employees that is protected by various federal and state laws.
Employee privacy rights = generally minimal for employees, and inconsistent across states and courts.
employee rights - statutory
Statutory rights = protected by specific federal and state laws regarding discrimination, working conditions, and many other rights.
statutory rights include EEOC (protection against discrimination based on race, religion, and age), OSHA (regulating safe, healthy practices at work), and NLRB (unions)
employee rights - contractual
Contractual = based on legally binding contract laws
contractual rights:
employment contracts - “I’ll work competently from ___ to ___ and in return I expect to get paid $__ under certain conditions”.
union contracts - provides job security
implied contract or employment policies - “As long as you do a good job, you’ll have a place here”. Verbal or written contracts made before or right after hiring.
other rights
Limited free speech -
Medical records - Should be treated as confidential; kept separately from other personnel files
Limited privacy - Personnel files
Public policy violations - Firing someone for something protected by law such as attending jury duty, refusing to sell drugs for the boss, etc.
employment at will
In certain states, employers are allowed to end the employment contract any time at any time for any cause (and vice versa).
If there’s no explicit contract, employment-at-will likely applies (i.e., employer and employee can terminate relationship at any time for no particular reason)
Exceptions:
Union contracts
Employment contracts (e.g., “Sign this 2 year contract stating that you will provide labor in exchange for pay”)
Public policy exceptions (e.g., going to jury duty or refusing to do illegal activities)
Implied contracts (“e.g., you’ll have a job here as long as you work hard”)
Discrimination (violates Title VII)
whistle blowing
Complaints to governmental agencies by employees about their employers’ immoral and/or illegal practices
Laws Protecting Whistle-Blowers from Retaliation:
Whistleblower Protection Act (WPA) of 1989 protects federal employees
Sarbanes-Oxley (S-O) Act of 2002 protects employees in public companies
2014: Supreme Court Expands Sarbanes-Oxley Whistleblower Protection to Public company’s Private contractors and subcontractors.
DIFFICULTIES IN DISCHARGING EMPLOYEES
Critical financial and personal risks that come with employee dismissal:
Standardized, systematic approach to discipline and discharge
Such decisions should not be made by one person
Low morale, satisfaction, and productivity
Wrongful discharge lawsuits possible.
discipling employees
Sometimes, employees do bad things.
Tardiness, unsafe behaviors, bad customer service, threatening or hurting other employees
Progressive discipline
Series of interventions; employees can change behaviors before being punished.
progression:
1) verbal warning
2) written warnings
3) suspension (temporary)
4) termination (permanent)
progressive discipline pros
alternative to termination
improved behaviors
clear expectaiton
progressive discipline cons
inconsistency = discrimination
complicated “at-will” status
time consuming, training needed
exception to progressive discipline
Some actions warrant immediate termination:
Attacking a coworker or other major/severe offenses
alternative dispute resolution
Several methods of resolving issues that DO NOT involve going to court. Why use these channels? Going to court can cost LOTS of time and money!
Open-Door Policy - Employee contacts immediate supervisor or someone above to settle grievances
Mediation - Impartial neutral party helps reach a compromise decision in employment disputes
Arbitration - Impartial neutral party makes a decision to resolve an employment labor dispute by imposing a binding final decision on all parties involved in the dispute.
Peer review - Panel of various employees and management representatives in the company who can help resolve the issue(s) at hand. Acts like a jury.
disciplining employees
Tips to administering discipline
- Clear rules and standards
- Be consistent in disciplining
- Document, document, document!
Just Cause = employer has to prove that an employee was discharged for “just cause”
Unions; some non-union contracts
7 questions – e.g., “notified of violation and consequences?”, “Fair investigation?”, “absence of discrimination?”, “Reasonable penalty?”
Appeal procedures
wrongful termination
Should not violate an implied agreement
Should not violate public policy
Should not be retaliatory (Title VII, ADEA, ADA, etc.)
electronic monitoring
Why do companies do it?
Poor work flow, leaking trade secrets, cyberloafing = $$$$.
Can monitor calls, text messages, emails, and social networking sites; also monitor # key strokes and so on.
How to control theft while not invading privacy:
Don’t secretly monitor (except when reason to suspect someone)
Prior consent where possible
Have clear electronic use policies and guidelines
random drug testing
Conducted randomly, without cause or suspicion.
When and why?
Reasons for and against drug testing
Drug Free Workplace Act of 1988
- Issue a policy statement prohibiting drug usage
- Inform employees about the dangers of drugs
- List options available for drug counseling
- Notify the federal contracting agency of employees convicted of drug-related criminal offenses.
To avoid backlash:
Pre-employment drug test
Probable cause
workplace romance
Professional behavior at work.
HR: be clear on relationship and sexual harassment policies (only about 30% of companies have formal dating policies)
Relationships between a supervisor and direct report are risky.
Sexual harassment claim can result from these relationships.
Consensual relationship agreements/contracts often do not hold up in court.
union terminology
Union = group/organization representing workers’ voice and interests in decisions that will affect their salary, benefits, work hours, and working conditions. Employees pay for being part of a union (e.g., monthly fees)
Collective bargaining = negotiation between union representatives and management representatives to arrive at a legally-binding contract defining conditions of employment.
Labor relations = broad term which describes managing employees in a unionized company. Includes law, union organizing, bargaining, collective bargaining, labor contracts, contemporary union issues and more.
why do unions exist?
Employers have more power than employees
Unions became legalized in the 1930’s by the Wagner Act to balance out some of that power.
why unionize?
Unionizing can be a good idea for employees when:
- There are issues at work (e.g., rising health care costs, not offering pay raises, layoffs),
- Employees treated unfairly or inconsistently
- Rules inconsistently enforced, lack of written rules, lack of documentation
- Fear about job security
- Management does not listen to their complaints, and
- Unionizing can put enough pressure on the company to solve these issues.
the process of organizing
1) Employees and union officials meet to discuss unionization
2. Organizing campaign via meeting for employees
3. If 30% of employees sign an authorization card, then step 4
4. Election campaign, and a secret ballot election is held
5. If union wins election (via majority vote), contract negotiations between the union and employer begin.
collective bargaining 101
Collective bargaining: A union negotiates for its members with management to arrive at a legally-binding labor contract defining conditions of employment and to resolve differences in the way the 2 parties interpret the contract.
Negotiations are typically over issues like: Pay, benefits, work rules and grievance resolutions.
The bargaining structure (range of employees and employers covered by the contract) may vary depending on the situation.
labor relations strategy
A company’s labor relations strategy is it’s approach to dealing with unions. This general approach can come in different ways:
- Union acceptance (this is a challenging one in practice) - Company sees the union as a legitimate organization with which it will negotiate to achieve the best possible outcome for both parties
- Union avoidance
- Union substitution: Management essentially replaces unions – takes care of job security, profit sharing, promotions, desirable working conditions, etc.
- Union suppression: Unlike union substitution, suppression is where a company tries to push out the union using force. More risky for companies – can be illegal and result in unhappier employees.
employer tactics for opposing unionization
Stressing favorable employer-employee relationship experienced without a union.
Emphasize current advantages in wages, benefits, or working conditions the employees may enjoy
Emphasize unfavorable aspects of unionism: strikes, union dues, abuses of legal rights
Use statistics to show that unions commit large numbers of unfair labor practices.
Initiate legal action when union members and leaders engage in unfair labor practices
Union Types and AFL-CIO
Unions structured by type of job or industry
- Unions in the U.S. are typically organized by job type (e.g., public school teachers belong to a different union than others) (Craft & industrial unions)
American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), and Change to Win: These are both confederations of many different unions.
- They each represent millions of people and the AFL-CIO has a powerful influence on policies.
Major Labor Relations Laws
Wagner Act (1935) or National Labor Relations Act (NLRA):
- Protects employees’ right to unionize, do “union things” like striking, and still be employees of the company.
- Created the National Labor Relations Board (NLRB) to govern labor relations in the US.Supervisors and managers not covered.
While employees have the right to unionize, companies don’t like unionizing. However, management should not:
- Interfere with union formation or administration
- Discriminate against union members or those trying to organize one
- Refuse to bargain with the union
- Coerce employees trying to unionize
Taft-Hartley Act (1947) – helps companies:
- Outlaws unethical union practices (e.g., charging a company to pay for services that aren’t performed, charging employees excessively).
- Tried to level the field by not giving unions too much power.
- Limits unions’ power that was given under the Wagner Act
- Protects company and employees from union coercion
union shop clause
union requires new employees to join the union 30 – 60 days after being hired.
right to work law
counteracts union shop clause by making it illegal for a union to have such a clause; varies by state.
impact of unions on company performance
Pros:
- Compensation & benefits tends to be better for unionized employees.
- Employees in unions are given a more powerful voice.Reduced turnover
- Unions tend to protect seniority (“first in, last out”), which reduces competition between employees.
Cons:
- Decrease on productivity resulting from work rules & limitations on workloads
- Strikes and work slowdowns
- Lower profits for organization
union trends in the US
Shrinking union membership
- Union membership peaked in the 1950’s and has declined since then. Why?
Change in economy structure E.g., fewer blue-collar industrial jobs due to technology & foreign competition
Management efforts to control costs and avoid unions E.g., unionized companies pay their employees more than non-unionized companies
Hostile management efforts to curb union practices. Beneficial HR practices Government regulation (stricter regulation cuts into union power).
when bargaining breaks down
Mediator: Neutral 3rd party; can help the two parties come to an agreement.
- Trained in conflict resolution and can help communicate between groups.
- Generally not allowed to have an opinion and does not pick sides.
Arbitration: Formal outside intervention – someone listens to both management and union and comes up with a solution.
Economic strike: What we typically think of when we think of strikes.
Wildcat Strike: Spontaneously stopping work – not authorized by union leaders.
HR’s role in unions
Labor relations specialists = (usually) HR staff members who advice the company in labor relations and communicate the company’s interests to the union. They deal with things like:
- Grievances (complaints filed by employees when the company breaks a collective bargaining agreement or regulation)
- Negotiations with the union
More generally, HR can:
- Advise managers on ethical management practices - Monitor employees’ satisfaction and dissatisfaction
