Welcome to the year 2014! According to the Chinese calendar, this is the year of the Horse. And since this year already seems to be galloping past, in my mind, it is an appropriate name. Much of my time in January is spent following the adage, "Out with the old and in with the new." This is also a great time to review how 2013 went and also to become familiar with what is coming in 2014. Since this is the Year of the Horse, I thought it would be fun to review some things for employers to consider in 2014 while learning a little more about horses and their gaits (speeds).
Walk = according to Wikipedia, a horse's slowest gait is the walk. In 2014, employers should walk slowly and carefully before considering some of the following...
- Unpaid internships. This is getting riskier and riskier as regulators continue to monitor and crackdown on employers who abuse unpaid internships. Before you decide to have an unpaid intern, discuss this with your HR department. There are several precautions you need to take before signing on an unpaid intern.
- Bring Your Own Device (BYOD). BYOD is when employers allow workers to use their own personal smart phones to access professional networks and emails. Employers need to be careful and walk slowly when considering if they should allow BYODs at their workplace. There have already been several lawsuits, stolen trade secrets, data breaches, and much more involving BYODs. If you do decide to allow it, consult with your HR department about updating policies and procedures to protect yourself.
Trot = the second slowest horse gait is the trot. The growing trend in 2014 is to have more temporary and contract workers, and less permanent full-time employees. Temporary and contract workers allow employers the flexibility to increase and decrease their workforce quickly but there are some risks involved. Employers should do some research and not trot too quickly into a decision to use temporary or contract workers. There are many rules and regulations governing the use of temporary and contract workers and if employers are not careful, they can quickly get into trouble. A safer, less risky choice for employers would be to consider hiring part-time employees. This allows for more flexibility than full-time workers, but doesn't have all the rules and regulations that govern temporary and contract workers.
Canter = this is the second fastest speed a horse can go. Employers need to canter toward reviewing and updating their job descriptions and reviewing employees' exempt and non-exempt status. This is a good idea to do every year but especially this year. Government agencies are going to be looking very carefully at exempt and nonexempt employees as the overtime rates continue to increase. FLSA (Fair Labor Standards Act) lawsuits and state wage and hour lawsuits are going to become more and more expensive with the 2014 trend of rising minimum wage rates. Some areas now have a minimum wage rate as high as $15.00. If you consider the cost involved with back pay of overtime, along with all the taxes and penalties, lawsuits can quickly add up. The best defense for an employer is to have accurate job descriptions that reflect the duties of each position at the workplace. Once the job descriptions have been reviewed and potentially updated for 2014, make sure any exempt employees that you might have in your workforce qualify to continue to be exempt. To get a list of essential functions that qualify as exempt, visit www.dol.gov/elaws/flsa.htm, and if your state has a department of labor, visit that website as well or talk to your HR Department.
Gallop = the fastest a horse can go. In 2014, the year of the Horse, employers need to gallop toward becoming familiar and complying with the Affordable Care Act (ACA). To view all the rules and regulations that go with the ACA, go to www.healthcare.gov or http://www.irs.gov/uac/Affordable-Care-Act-Tax-Provisions-Home . These websites can be a bit daunting, so hopefully your HR Department is on top of the ACA and you don't have to read too many pages of the 11,000+ pages that make up the ACA. At Pay Plus Benefits, we have been studying and monitoring the ACA for years now. If you are in a panic about the ACA and not sure if you can gallop fast enough to keep up with all the regulations associated with it, Pay Plus Benefits is the answer for you. As a PEO (Professional Employer Organization), we pride ourselves in being a Complete HR Management Solution. You can learn more about us at www.payplusbenefits.com. We would love to help guide your company from the stables to the racetrack.
As a famous person once said, "A horse gallops with its lungs, perseveres with its heart, and wins with its character." My hope for this year, is that we all might have a fast-paced, heartfelt, and successful 2014.
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