09.12.06
Posted in Human Resources/Staffing at 5:49 pm by Diana Heeb Bivona
The Fair Labor Standards Act (FLSA) impacts employers regardless of their size. You can have as few as five employees or as many as five hundred plus. It doesn’t matter what your size is, when it comes to making mistakes under the FLSA law, it can cost you big bucks. For example, if you assume all salaried employees are automatically exempt from overtime, you’d be wrong. Paying an employee a salary does not mean that they are exempt from overtime. Each individual employee must qualify for one of the specific exemptions provided by the statute.
Another common mistake is for employers to deduct for meal breaks. Sure, you can deduct for a 30-min or 60-min meal break, but can you prove each and every time that the employee took that meal break away from their desk and weren’t working through their lunch break? Are they punching the clock each and every time they take that lunch break? Hope you can prove it because the Department of Labor squarely puts the burden of your hourly employees’ actual hours worked on you, the employer.
Do you have a rule that employees must have overtime approved in advance or you won’t pay? The FLSA does not draw a distinction between approved and non-approved overtime. If the employee works the overtime, you are required to pay time and one-half the regular rate for that overtime. Of course, you do have recourse if your employee violates your policy which is either writing them up or terminating them, but you are still going to have to pay.
These are just two of the many common mistakes employers make in dealing with the FSLA. As stated, these types of mistakes can cost you. The FLSA penalty provision permits plaintiffs in some circumstances to recover twice their actual back wages, and because it automatically entitles winning plaintiffs to their attorneys’ fees, even a minor violation can quickly become very expensive.
For more information on the FLSA and to confirm if your company is in compliance, check out the U.S. Department of Labor website at http://www.dol.gov/esa/whd/flsa/.
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09.11.06
Posted in Uncategorized at 8:06 pm by Diana Heeb Bivona
As a business owner, you have probably purchased a property and casualty insurance policy to cover your business. However, this policy will not cover your losses should your business operation be disrupted because of a disaster. You need a specific policy to cover that event and it’s known as business interruption insurance.
Business interruption insurance covers profits that are lost and expenses that continue to incur when a business is shut down by a disaster, or even by an event such as an extended power outage. Among the expenses covered by such a policy are salaries, rent and electricity. In short, the types of expenses that still need to be paid even though you are not up and running.
Business interruption insurance is not cheap, but when weighed against the potential damage an interruption in your business can cost you, it may seem like a reasonable expense. By evaluating your needs level and how quickly you would be able to reopen or relocate your business will assist you in determining how much insurance you need.
Also, as with all types of insurance, read the policy thoroughly. Exclusions and provisions limiting what types of interruptions qualify vary from policy to policy. Therefore, it’s imperative to know exactly what you are buying before you cut that check.
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09.08.06
Posted in Human Resources/Staffing at 3:41 pm by Diana Heeb Bivona
The Pregnancy Discrimination Act prohibits discrimination on the basis of pregnancy, childbirth or related medical conditions and constitutes unlawful sex discrimination under Title VII. Women affected by pregnancy or related conditions must be treated in the same manner as other applicants or employees with similar abilities or limitations. A recent court of appeals case dealing with this issue points out the importance of treating all employees equally under any company policy you might maintain.
Summary of case: The plaintiff had worked for the defendant as an over-the-road truck driver. The plaintiff claimed that the defendant unlawfully terminated her when she became pregnant because she could not perform the heavy duty lifting aspects of her job. The defendant claimed her termination was a result of a pregnancy-blind policy denying light-duty work to employees who could not perform heavy lifting and also were not injured on the job. The plaintiff claimed the defendant’s light-duty policy was just a pretext. Reeves v. Swift Transp. Co., Inc. (05/16/06 – No. 05-5271)
The Court of Appeals affirmed the district court ruling which stated the light-duty policy was not a pretext because it did not take account of pregnancy and the defendant-employer did not make exceptions for nonpregnant employees while enforcing the policy against pregnant employees.
The district court noted that “to hold otherwise [i.e., to hold for Reeves] would result in the Court affording pregnant women more benefits and better treatment than other employees, instead of equal benefits and the same treatment as intended by the” Act. “For instance,” the district court continued, “if the Court determined that Plaintiff was entitled to light-duty work . . . the effect would be to provide greater protection and benefits to pregnant women than to other employees who suffered from a non-work related injury or illness, such as a heart-attack or cancer.”
The moral of the story for employers: make sure your company policy treats all employees the same..no special treatment, but equal. Additionally, apply it equally in all circumstances. One of the major reasons this employer prevailed was because the only “light-duty work” they ever provided was for employees injured on the job and qualifying under workers’ compensation guideliness. If they had made an exception in any other circumstance, the employee would have had a better supported argument for discrimination.
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09.07.06
Posted in Uncategorized at 2:36 pm by Diana Heeb Bivona
Outsourcing is a popular tool, not just among large companies, but smaller companies who find they lack the time or particular skill set to manage a project efficiently. Outsourcing allows organizations to be more efficient, more effective, and to reduce costs, and those are good things. It is also a viable alternative for everything from accounting, payroll, public relations, marketing, customer service, employee training, IT, and much more.
Projects and/or responsibilities that are strong possibilities for outsourcing are those that:
- Are not central to generating profits or competitive success.
- Are routine ones that waste your valuable time and energy.
- Are needed only on a temporary basis or that reappear in cycles.
- Are less expensive to have someone else do.
- Are performed cheaper in-house, but drain resources that could be better used elsewhere.
- Require specialized skills that you or your staff currently lack.
- Are not enjoyable.
Once you’ve decided to outsource, shop around and find an individual or company which is compatible with your needs. Also, be sure to set standards that you clearly communicate to your outsourcer and maintain the lines of communication. Then, prepare to enjoy the additional time you’ll have that can now be devoted to expanding other areas of your business.
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09.06.06
Posted in Uncategorized at 3:53 pm by Diana Heeb Bivona
Writing both in your professional and personal lives is an important skill to master. However, our fast-paced world and new advents of communication such as IM, blogging and email have caused many of us to become sloppy. BNET’s “Pointers to Keep Your Writing Sharp and Professional” provides some great tips on writing that bear reviewing. Here are just a few:
- Plan Your Writing – determine your purpose and your primary audience.
- Do Your Homework – research, collect and analyze your data .
- Expect to first write a draft (or many drafts).
- Revise – correct grammar, check style, and spelling.
- Choose effective wording and be precise.
- Use the active voice.
- Avoid run-on sentences and fragments.
- Check subject and verb agreement.
- Use a courteous and sincere tone.
- Proofread and use the spell checker.
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09.05.06
Posted in Uncategorized at 3:18 pm by Diana Heeb Bivona
Many small business owners struggle with the issue of either buying, renting or leasing office space. Unfortunately, depending on who you ask, you’ll get a different opinion from everyone. With each business bringing its own unique set of circumstances to the table, the decision rests ultimately on what best will suit your needs as a small business owner.
There are a few questions you can ask yourself that may help you decide on the right course of action:
1. How is your cash flow? Can you afford to put down a large down payment if you decide to purchase, or is a monthly lease payment a more affordable option?
2. How long do you plan to stay in the building? If its short term, maybe renting is a better option. However, if you live in a community where real estate values continue to rise, buying may work for you.
3. Are you ready for the additional responsibilities associated with owning a building? Is handling the maintenance, security, remodeling, and/or other management issues of a property owner going to be too much?
4. How much will your business grow? Ask yourself if you believe your business will add more employees or require more space in the next few years. Do you have the space you need to continue growing?
5. Do you like the neighborhood? It may sound like a silly question when looking for a business location, but it isn’t. Having a long and rough commute to work, fighting insufficient parking or seeing a continuous decline in real estate property values are all issues that can negatively impact your business.
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09.04.06
Posted in Marketing at 3:17 pm by Diana Heeb Bivona
This old, but true, public relations adage still holds true. Effective communication is more than putting some positive “spin” on information you are delivering to the press and public. What you say and do shapes what your clients think about you and your company. Effective communication is not just about disseminating information, but about proactively identifying and managing information and events that can ultimately damage your company and its reputation.
You may thing that your new business is too small to worry about effective communication and public relations, but that would be a serious misstep. From day one, you are building not only your business, but your image and reputation. Understanding what it takes to build a strong communication channel starts when you start your business.
There are several resources available online to help you start thinking strategically about your communications program. Public Relations Society of America (www.prsa.org) and Council of Public Relations Firms (www.prfirms.org) are great places to start learning and gathering information about developing your own program agenda.
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09.01.06
Posted in Uncategorized at 1:12 pm by Diana Heeb Bivona
Microsoft founder, Bill Gates once said that if he was down to his last dollar, he would spend it on PR. While I don’t think he’ll have to worry about going broke anytime soon, his point about the power of public relations is sound. Most companies know that effective public relations can be a boon for your business. Companies that have the budget, staff and money can do some amazing things.
Starting out in business, money and resources are usually pretty tight. PR is the last thing on your mind, but what if you could generate a good buzz about your business and put your name out there with very little monetary investment? Consider these cost-effective PR ideas:
- Write a book or e-book and make it available to your customers or general public.
- Create a free educational workshop in your community.
- Produce an electronic newsletter.
- Write a blog.
- Volunteer your time and/or services.
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