Archbright™ Insights October 2014

Insights

AUGUST 2014 Newsletter

OCTOBER | 2014 Newsletter

Archbright Leaders Help Shape the Implementation of Seattle’s New MinimumWage Law Archbright’s Kellis Borek, Director of Labor and Employment, and Jo Powers, Director of HR Strategies and Practices, were invited by Seattle Mayor Ed Murray earlier this year to participate as a voice for employers in his Labor Standards Advisory Group. The group collaborated during the past six months to determine how the city can most effectively implement and manage Seattle’s New Minimum Wage Law, which takes effect April 1, 2015. “As one of six business stakeholders on the Advisory Group, we advocated for education and training over penalties for first time offenders,” said Borek. “In my experience, employer and employee training are essential for preventing labor or employment issues.” Four recommendations were presented to the Mayor on September 18, 2014 and presented to the City Council on September 22nd: 1. A “one-stop-shop” for all four labor standard ordinances housed in the City of Seattle Office of Civil Rights. 2. Consistently structured training programs for employees and employers in the form of online, phone, and in person education and outreach. 3. Partnerships with culturally competent organizations trusted by employers and employees to deliver such education and outreach. 4. First year complaints should be remedied by making an employee whole for any lost wages and follow up education with the offending employer. These recommendations were vital in shaping the mayor’s Office of Labor Standards proposal, which includes an expanded proactive effort to educate workers and businesses on the law, as well as a centralized approach to investigate and enforce not only the City’s higher minimum wage, but also paid sick leave, and other worker protections. Stay tuned with Archbright™ for more guidance and information as the City now takes on much anticipated rule making for the ordinance.

What’s Inside

HR Advice & Counsel • EEOC targets Washington grower, Texas pharmacy for pregnancy discrimination • Washington’s MinimumWage will Increase 1.59% in 2015 • Washington Healthplanfinder Offers Small Employers Plan in 2015 • Seattle $15 MinimumWage: Solving for Salary Compression Learning & Development • October and November Training Calendars Organization Consulting • Professional Development: Let’s Talk About It • Holidays and Dialogue Safety and Loss Control • L&I Proposes 1.8% increase for 2015 Workers’ Compensation Premiums • DOSH Proposes Rule Changes on Serious Citation Penalties

EEOC targets Washington grower, Texas pharmacy for pregnancy discrimination HR Advice and Counsel Insights

Washington’s minimum wage will increase 15 cents to $9.47 an hour beginning Jan. 1, 2015, the Department of Labor & Industries (L&I) announced today. L&I calculates the state’s minimum wage each year at this time as required under Initiative 688, which Washington voters approved in 1998. The change reflects a 1.59% increase in the federal Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) over the last 12 months ending Aug. 31. The federal Bureau of Labor Statistics announced the change in the CPI earlier this month. (Please see Page 8 for current CPI-W figures). The change will affect more than 67,000 workers, based on full-time equivalent positions according to the Washington State Employment Security Department. The per hour increase will total $312 per year. The minimum wage applies to workers in all industries, including agriculture, although 14- and 15-year-olds can be paid 85% of the adult minimum wage, or $8.05 an hour. Washington has the highest state minimum wage in the nation, followed by Oregon, where the minimum wage will increase to $9.25 – an increase of 15 cents – in 2015. Washington is one of at least 10 states that adjust the minimum wage based on inflation and the CPI. Others include Arizona, Colorado, Florida, Missouri, Montana, Nevada, Ohio, Oregon and Vermont. More information on Washington’s minimum wage is available at Wages.lni.wa.gov. Employers and workers also may call 360-902-5316 or 1-866-219-7321. Washington’s Minimum Wage will Increase 1.59% in 2015

The EEOC has separately filed discrimination lawsuits against employers in Washington and Texas who purportedly fired employees because of their pregnancies. The pair of suits is another in a series of moves that underscore the EEOC’s continuing commitment to curb pregnancy discrimination. In mid-July, the EEOC issued its comprehensive, updated guidance on pregnancy discrimination and related issues, including the intersections between pregnancy and the ADA, the FMLA, and a section on the Patient Protection and Affordable Care Act’s (ACA) requirement that employers provide “reasonable break time” for nursing mothers. The updated guidance is “extremely far-reaching,” according to David Fram, disability law expert and director of ADA & EEO services for the National Employment Law Institute. Since the start of fiscal year 2011, the EEOC has filed over 45 lawsuits involving pregnancy discrimination, recovering about $3,500,000 in monetary relief, as well as important injunctive and other case-specific “make whole” relief for victims of pregnancy discrimination through its litigation program. On September 15, EEOC filed a complaint against Tiny’s Organic, asserting that the Wenatchee, Washington, fruit grower violated Title VII (as amended by the Pregnancy Discrimination Act) by firing a farm worker for becoming pregnant. The employee had worked for the grower for six years and had been promoted to supervisor, according to an agency announcement. During her tenure as supervisor, she had gone through an earlier pregnancy allegedly without any working restrictions. Tiny’s Organic fired the employee nine days after she disclosed that she was again pregnant, this time with twins. The grower cited fears for the employee’s safety and the company’s liability, even though her doctor had cleared her to perform the job without medical restrictions, according to the EEOC.

EEOC District Director Michael Baldonado issued this warning:

“Employers be aware: You do not have the medical or legal authority to decide when and how your pregnant employee works. Leave this arena to your employees and their doctors.” The agency also announced that it has filed a lawsuit against Tomeldon Company, Inc., dba Pharmacy Solutions, asserting that the Texas pharmaceutical business violated Title VII by firing two employees due to their pregnancies. The agency said the employees were fired just weeks apart. A pharmacist at Pharmacy Solutions purportedly notified the company’s owner that she was pregnant in June 2012. Starting in November 2012, when the pharmacist was making visits to her doctor, the owner made a number of remarks about the pharmacist’s condition. The owner allegedly fired the pharmacist in March 2013 while she was on maternity leave. A pharmacist technician was also fired because of her pregnancy during March 2013. She had reportedly informed the owner that she was pregnant by leaving a note for him that included a request to switch her days off in order to see her doctor. The owner allegedly had made negative comments to the technician based on her pregnancy. “This is the second pregnancy discrimination filed by the EEOC’s Dallas District Office in the past 30 days,” said EEOC Regional Attorney Robert Canino noted. “I am surprised that this issue continues to be a recurring theme in the workplace in this day and age. We hope that by continuing to increase public awareness through our law enforcement efforts, we will see more of an awakening by some companies about the right of a woman to hold on to her job and to earn a living when she is expecting and during her maternity leave.” Source: CCH

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OCTOBER | 2014 Newsletter

Washington Healthplanfinder Offers Small Employers a Statewide Plan in 2015

With all the hoopla surrounding the opening of our Washington State healthcare exchange “Washington Healthplanfinder” in 2014, small businesses found little to cheer about. Only one carrier, Kaiser Permanente NW, offered plans for employers within the exchange, and those plans were only available in Clark and Cowlitz counties. The news is better for 2015, as our Insurance Commissioner approved Portland-based Moda Health Plan, Inc. to offer 14 plans to employers throughout the state. Open enrollment for Washington Healthplanfinder Business continues year-round. New plans will be offered on Washington Healthplanfinder Business starting Oct. 1, 2014, for coverage beginning Jan. 1, 2015. Employers with fewer than 50 employees may purchase health plans within the exchange in 2015 and employers with fewer than 100 employees will have access in 2016. This news is especially welcoming for businesses with less than 25 employees, as these very small employers have an opportunity to receive a tax credit in 2015 when they buy insurance through the exchange. To qualify, they must pay average annual wages of less than $50,000 per employee and pay at least 50% of the employee premium. The tax credits range from 35% to 50% of the insurance cost. If your organization meets these criteria, talk to your accountant about your next steps. If you aren’t sure whether it makes sense for your organization to enter the exchange or to stay where you are, Archbright™ consultants can help. Call us at 206.329.1120 to learn more. Seattle $15 MinimumWage: Solving for Salary Compression As the Seattle minimum wage gradually increases to $15.00 per hour, proactive organizations are already calculating the impact to their bottom line. However, the cost to move employees to the new rate is just the first step. There are more costs to consider due to what is commonly known as “Salary Compression.” Salary compression occurs when there is little to no difference in pay between employees, yet a significant difference in skill, knowledge or responsibilities. As lower level employees’ pay moves closer to $15.00 per hour, the pay difference between lower level employees and their supervisor narrows. Ignoring this salary compression affect within an organization does not make good business sense. Studies show that employee morale and retention are impacted the most by systematic cases of salary compression (2009, Perl Meyer & Partners). It may also cause difficulty when management wants to promote from within, as potential supervisors may be faced with a higher “level” job that is more complex and stressful, yet brings home less pay after overtime pay. Experts agree that pay compression is much easier to avert than it is to fix. Your organization has time to plan, if you start promptly. Here are some suggestions: 1. Develop a compensation strategy that addresses “Salary Equity.” 2. Develop compensation policies that help managers make equitable pay decisions. 3. Understand if pay compression exists in your organization.

4. Develop a formal salary structure with minimum, midpoint and maximum rates. 5. Analyze overtime usage and determine if this is the best use of resources. 6. Consider variable pay options.

For more information on how to avert salary compression, please access our keynote, “Seattle $15 Minimum Wage: Solving for Salary Compression,” available now in the HR Toolkit on our website. Or call 206.329.1120 to find out how Archbright™ consultants can help you weather this change.

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Learning and Development Insights

Archbright provides training options to best suit the needs of every employee: Open Enrollment, Onsite, and Web-based. Whether you need to send one or two people to a class, train your entire organization, or prefer to provide training right at your employees’ desktops, we have the solutions for you. Visit archbright.com, call 206.329.1120 or email learning@archbright.com for more information! October

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1 Seattle: Emotional Intelligence- Effective Communication and Influence 8:30-4:30

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Seattle: HR Fundamentals Session 1, 8:30-4:30

Seattle: HR Fundamentals Session 2, 8:30-4:30

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TLG Tacoma: Microsoft Office Mentor Led - (2010, 2013/Office 365) 8:00-4:00 Kent: Supervisory Skills, Session 2, 8:30-4:30

TLG Bellevue: Microsoft Excel Instructor Led - (2010, 2013/Office 365) 8:00-4:00 Seattle: Supervisory Skills Session 1, 8:30-4:30

Kent: Understanding Workers’ Compensation and Controlling Costs 8:30-12:00

Kent: Leadworker Effectiveness 8:30-4:30

13 Kent: Supervisory Skills, Session 3, 8:30-4:30

14 Seattle: Supervisory Skills Session 2, 8:30-4:30 Tukwila: Workplace Performance Symposium 9:30-12:00

15 Kent: First Aid/CPR/AED Certified Training 8:00-3:30 Kent: Leadworker Effectiveness 8:30-4:30

16 Kent: First Aid/CPR/AED Recertification 8:00-12:30 Kent: Managing FMLA 9:00-12:00

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22 Seattle: First Aid/CPR/AED Certified Training 8:00-3:30 Kent: Project Management 8:30-4:30 Spokane: Leadworker Effectiveness 9:00-5:00

23 Seattle: First Aid/CPR/AED Recertification 8:00-12:30 Kent: Forklift Train-the- Trainer 9:00-3:30

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Kent: Showcasing Your Ideas 8:30-12:00 TLG Bellevue: Microsoft Office Mentor Led - (2010, 2013/Office 365) 8:00-4:00

TLG Bellevue: Microsoft Office Mentor Led - (2010, 2013/Office 365) 8:00-4:00 Seattle: Supervisory Skills Session 3, 8:30-4:30

Spokane: First Aid/CPR/AED Recertification 8:00-12:00 TLG Seattle: MS Excel Instructor Led Training, Level 2 (2010, 2013/Office 365) 8:00-4:00

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31 Seattle: Discipline and Documentation 8:30-12:00

Kent: Communicating for Success 8:30-12:00 Seattle: Employment Law Landmines 9:00-12:00

Seattle: Active Shooter Preparedness and Response for Employers 9:00-12:00

Kent: Supervisory Skills, Session 1, 8:30-4:30

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OCTOBER | 2014 Newsletter

Featured Classes

November Communicating for Success teaches the foundational skills you need to effectively connect with others. Discover how to maintain and enhance your relationships with everyone both inside and outside the organization. To be held October 28 (Kent).

Project Management provides an adaptable toolkit for all types of projects. Whether your projects are simple or complex, learn the standardized methods and procedures to keep your project focused and delivered on- time. To be held November 3 (Seattle).

Supervisory Skills will boost the effectiveness of your supervisors by building the skills they use every day — communication, feedback, coaching, documentation, delegation and teamwork. To be held November 4, 5 & 6 (Spokane).

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3 Kent: Supervisory Skills, Session 2, 8:30-4:30

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5 Spokane: Supervisory Skills Session 2, 9:00-5:00 Kent: Understanding Legal Issues for Supervisors 9:00- 12:00

6 Spokane: Supervisory Skills Session 3, 9:00-5:00

7 Seattle: Shipping Hazardous Materials 8:00-4:30 Seattle: Shipping Hazardous Materials Update 11:30-4:30

TLG Bellevue: Microsoft Excel Instructor Led - (2010, 2013/Office 365) 8:00-4:00 Seattle: Supervisory Skills Session 1, 8:30-4:30 Spokane: Supervisory Skills Session 1, 9:00-5:00 11 Kent: Setting Performance Expectations 8:30-12:00 Seattle: Supervisory Skills Session 2, 8:30-4:30

10 Kent: Supervisory Skills, Session 3 8:30-4:30

12 Kent: Time Management 8:30-12:00 NWDLS: Session 6, 8:30-12:00 Seattle: Recognizing and Responding to Drug Use in the Workplace 9:00-12:00 Spokane: Forklift Train-the- Trainer 9:00-3:00 19 Kent: Training-the-Trainer 8:30-12:00

13 Seattle: Developing Your Company’s Training Plan 8:30-12:00

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18 Kent: First Aid/CPR/AED Recertification 8:00-12:30 Kent: Conflict to Collabora- tion 8:30-12:00 Seattle: Supervisory Skills Session 3, 8:30-4:30

20 Seattle: Applying Lean Techniques 9:00-12:00

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Kent: First Aid/CPR/AED Certified Training 8:00-3:30 Seattle: Project Management 8:30-4:30

Seattle: Writing and Delivering Performance Reviews 8:30-12:00

24 TLG Seattle: Microsoft Excel Instructor Led - (2010, 2013 Office 365) 8:00-4:00 Seattle: First Aid/CPR/AED Certified Training 8:00-3:30

25 Seattle: First Aid/CPR/AED Recertification 8:00-12:30

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27 Thanksgiving Day

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Have you checked out our new Certificate Programs? Visit archbright.com to learn more!

All of our courses are available at your location! Call 206.329.1120 for details!

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Insights

Organization Development Professional Development: Let’s Talk About It

In the September Insights, we reported that the current low ratings for employee job satisfaction may signal big headaches ahead for employers who don’t want to lose their talented workers to an improving job market. We noted that one of the top 5 drivers of employee satisfaction— and one with which employees are most dissatisfied— is professional growth. Oftentimes, managers put off the work of employee career development for another day. Perhaps they haven’t heard employees ask for it, or they’re unsure how to go about it, or they think they don’t have time for all that additional work when “we have a business to run here.” Some even privately worry that if they focus on development beyond current job requirements, it will actually drive employees to leave in pursuit of other opportunities. The truth is, employees typically look first to the organization where they developed their skills for a place to apply them. Perhaps not so much an expression of gratitude induced loyalty as a matter of following the path of least resistance, employees are far more likely to stay where the work is meaningful and feeds their desire to grow. And sometimes there’s an unexpected benefit to employers who help employees explore their potential: new business opportunities arise, sparked by an employee’s passion for learning something new.

In their 2012 book, Help Them Grow or Watch Them Go: Career Conversations Employees Want , authors Kaye and Giulioni emphasize that the responsibility for career development rests squarely on the shoulders of the employee. Their solution, an ongoing practice of managers asking questions that stimulate development-focused conversations, serves to create a culture of reflection and growth, owned by the employee, that doesn’t take huge amounts of a manager’s time. Here’s a sample of questions to inspire introspection in your employees: • Tell me about your strengths; what are you really good at? • What are some of the things you’ve done in the past that energized you? How could you do more of that now? • What bores you? What about it is boring? • How do you think your interests, values and skills will evolve over time? • What lessons do you find yourself learning over and over again? What could change that? • Who might know someone who could help you learn more about ___________? The point is to keep asking questions, listening deeply, and helping the employee to mine the ensuing conversation for the gems they want to develop. Most important of all is to just start talking about it.

NWDLS

Holidays and Dialogue As HR professionals we strive to create inclusive not exclusive workplaces. One of the ways we do this is by preventing discrimination and harassment which we know often arises out of cultural and religious differences among individual employees or groups of employees in an organization. Larger organizations comprising more diverse pools of employees face even more potential for discrimination and harassment. In light of the approaching holiday season, consider religion. We try to avoid excluding on the basis of religion by treating it as a taboo. Yet we know that when we don’t communicate effectively, we risk making assumptions.

Not all employees observe a faith-based holiday on December 24 th and 25 th . In fact, not all employees practice a faith or at least one with which you might be familiar. With respect to our taboo, is it more or less appropriate to say “Happy Holidays”? Is there even a right answer? This sanitizing of our work areas and conversations of religious references for fear of being misperceived as proselytizing or imposing does successfully reduce discrimination and harassment which is why it’s a best practice. But it could also be argued that it creates queasiness around the very topic of religion and that queasiness obstructs dialogue and understanding.

Organizations that understand employee engagement understand that affording employees the opportunity to bring their full selves to the work culture is one step in the journey toward a more fully engaged and thus more productive workforce. So how do we negotiate these blurred lines in the professional world? Do we talk about them or not? Join us for the next Northwest Diversity Learning Series, Session #6: Happy Holidays: From Religion to Non-religion in the Workplace Wednesday, November 12 th 8:30 AM–12:00 PM

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OCTOBER | 2014 Newsletter

Safety and Loss Control

The Job Hazard Analysis (JHA) approach to doing a hazard assessment for PPE is required for businesses inWA. The JHA will indentify hazards or potential hazards in your workplace and determine if PPE is necessary on the job. Additionally, developing JHAs beyond a standard PPE assessment can also help you assign a Risk Priority Code and the course of action needed to control the • What’s required? • PPE assessment • The JHA process • Identifying & prioritizing hazards The last 10 minutes of the presentation will be dedicated to answering your questions. This monthly webinar is complimentary for all WCS/Retro members. Attendees will receive an email with information approximately one week before theWebinar with participation and login information. For our non-WCS/Retro members, there is a $49.95 fee. Please contact Scott Bradley, Director, Safety/Loss Control at 206.664.7260 or sbradley@archbright. com if you’d like to attend. “Don’t assume safety just happens – it needs to be deliberate.” Monthly Safety Webinar Personal Protective Equipment & Job Hazard Analysis Thursday, October 16 th 2:15pm Did you know? Preliminary Bureau of Labor and Statistics workplace fatality data is in. The preliminary count of fatal occupational injuries in the U.S. in 2013 was 4,405, below the revised total of 4,628 in 2012. • Total fatal injuries in 2013 (all sectors): 4,405 • Roadway incidents in 2013 (all sectors): 991 • Falls, slips, trips in 2013 (all sectors): 699 • Homicides in 2013 (all sectors): 397 hazards that can lead to injury. This month’s topics include:

The Department of Labor & Industries (L&I) is proposing an average 1.8% rate increase for 2015 workers’ compensation premiums, which is just under the current rate of wage inflation. An individual employer’s actual rate change may be more or less depending on that employer’s industry and history of claims that result in wage replacement and/or disability benefits. The average increase comes out to about 1 cent per hour worked. Employers and workers around Washington pay into the workers’ compensation system so they’re covered if someone gets hurt on the job or becomes ill from a workplace exposure. Last year, L&I covered more than 80,000 work-related injury and illness claims in Washington State. The proposed premium increase will help cover wage and disability benefits, as well as medical costs for treatment of injuries and illnesses. It will also allow L&I to continue to build reserves to protect against the unexpected. L&I Proposes 1.8% increase for 2015 Workers’ Compensation Premiums DOSH Proposes Rule Changes on Serious Citation Penalties The Washington State Department of Ocupational Safety and Health (DOSH), is also currently working on proposed rule changes for the way they calculate penalties on serious citations. Here is what you should know about the proposed rule changes and why these changes are being made. • New OSHA directive requires State run programs to be within 25% of the National average for serious violation penalties. • Currently the 3 year National average is $1,447 per serious violation. Washington State’s average DOSH serious violation is $761. • Washington State will be adopting rule changes to be more consistent with OSHA. Failure to adopt these rules changes could put Washington State at risk of losing Federal funding and the ability to administer their own program. Archbright is closely monitoring these changes and will be holding a 2015 webinar when the official adoption has been announced from DOSH. For more information please visit http://www.lni.wa.gov/Safety/Rules/WhatsNew/DOSHPenalties.asp. Hazards in the Workplace: Are You Prepared?

Hazards in the workplace lead to accidents everyday for many employers. A job hazard assessment can be conducted on many roles in your workplace and with the proper protectation and equipment, you can be prepared. You should prirotize your job hazard asessements to the following types of jobs: • Jobs with the highest injury or illness rates • Jobs with the potential to cause severe or disabling injuries or illness, even if there is no history of previous accidents • Jobs in which simple errors could lead to a severe accident or injury

• Jobs that are new to your operation or have undergone changes in processes and procedures • Jobs complex enough to require written instructions For more information on Job Hazard Assessments, contact a Safety/Loss Control Representative at 206.329.1120.

The Stay At Work Program Total Member Reimbursements: $2,195,753.48

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Prsrt Std US Postage Paid Seattle, WA Permit No. 604

PO Box 12068 Seattle, WA 98102-0068

Consumer Price Index U.S. Cities Average—August 2014 CPI-W: 234.030 - 0.21% (1 month change) CPI-U: 237.852 - 0.17% (1 month change)

+1.60% (1 year change) + 1.70% (1 year change)

Seattle/Tacoma/Bremerton—July/August 2014 CPI-W: 244.471 + 0.07% (bimonthly change) CPI-U: 247.185 + 0.41% (bimonthly change) + 1.82% (1 year change) 1982-84 Base; CPI-U = Urban Consumers; CPI-W=Wage Earners & Clerical Workers + 2.15% (1 year change)

Please Notify Us of Staff Changes. Please take a moment to contact us to correct any staffing changes for your organization, including email addresses. E-mail us at info@archbright.com. Insights is published monthly for its member companies by Archbright, founded in 1936. Items in Insights are for information only and not intendedto render legal advice. Material contained herein may not be reprinted without the permission of Archbright. We welcome your comments and suggestions. Email: editor@archbright.com Seattle Office: P.O. Box 12068; Seattle, WA 98102 Phone: 206.329.1120 Web: www.archbright.com

Spokane office 1110 W. 2nd Ave, Suite 71 Spokane, WA 99201 phone 509.381.1635 fax 206.860.7889 www.archbright.com

Kent office 24437 Russell Road, Suite 110 Kent, WA 98032 phone 206.329.1120 fax 206.328.0131 www.archbright.com

Seattle office 2940 Fairview Avenue East

Seattle, WA 98102 phone 206.329.1120 fax 206.860.7889 www.archbright.com

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