Florida dealer Don Magruder's 10 ideas don't have anything to do with management or sales, but they could make the difference between survival and failure.
By Don Magruder
Over the last three years, the hostile economic times have taken a major toll on the well-being of employees and businesses, with many coming ever so close to their rope's end. As business people, many of us have been fighting very hard to survive, but we must never forget the folks who bear the heaviest load of those pay cuts, reduced hours, and dwindling benefits: our employees. An encouraging word or clearing of a path in the direction of common sense may be the difference between survival and surrender.
Sensing an increasing burden on many in our management and sales group, I shared with them my thoughts of how they and Ro-Mac Lumber could survive this hostile economic environment. Below are my top 10 tips for surviving these current hostile economic times. Most of you know them already, but it helps us all to refresh our souls. Read more.
Wednesday, September 23, 2009
News You Can Use - Trends and Numbers
Survey: Boomers Want Single Level, Energy-Efficient Homes in the Suburbs
A new survey reveals that 55+ Americans would prefer suburban living in single-story homes with amenities, particularly high-speed Internet access, for their later years, and they don't consider "universal" design a priority. These are some of the findings from 55+ Housing: Builders, Buyers, and Beyond, a survey conducted by the National Association of Home Builders (NAHB) and the MetLife Mature Market Institute, which asked owners and renters about their current homes and the types of homes, communities and features they prefer as they age. Read more.
Overall Housing Starts Rise 1.5 Percent in August
Privately-owned housing starts in August were at a seasonally adjusted annual rate of 598,000, 1.5 percent higher than July figures, according to the latest data from the U.S. Census Bureau and the Department of Housing and Urban Development. Single family starts, however, fell 3 percent to a seasonally adjusted rate of 479,000.
NAHB blamed the pullback in single-family starts on the looming expiration of the $8,000 tax credit for first-time homebuyers. Read more.
A new survey reveals that 55+ Americans would prefer suburban living in single-story homes with amenities, particularly high-speed Internet access, for their later years, and they don't consider "universal" design a priority. These are some of the findings from 55+ Housing: Builders, Buyers, and Beyond, a survey conducted by the National Association of Home Builders (NAHB) and the MetLife Mature Market Institute, which asked owners and renters about their current homes and the types of homes, communities and features they prefer as they age. Read more.
Overall Housing Starts Rise 1.5 Percent in August
Privately-owned housing starts in August were at a seasonally adjusted annual rate of 598,000, 1.5 percent higher than July figures, according to the latest data from the U.S. Census Bureau and the Department of Housing and Urban Development. Single family starts, however, fell 3 percent to a seasonally adjusted rate of 479,000.
NAHB blamed the pullback in single-family starts on the looming expiration of the $8,000 tax credit for first-time homebuyers. Read more.
Tuesday, September 22, 2009
Protecting Your Business
By Business and Legal Reports, Inc.
After a Georgia company reduced a vice-president’s bonus, he decided to open his own business. He discussed his departure with his supervisors and thought he had arrived at an amicable parting, only to be sued after he left the company.
What happened. “Fawkes” owned a share of an insurance company named Hamilton, Dorsey & Alston. Wachovia Insurance Services purchased Hamilton on May 1, 2001. Fawkes received cash and Wachovia Insurance stock and was given a four-year contract to work as a senior vice president in Wachovia’s employee benefits area.
In September 2004, Wachovia Insurance’s president asked Fawkes to sign a confidentiality and nonsolicitation agreement that would make Fawkes an at-will employee. Two years later, Wachovia reduced Fawkes’ bonus and commission structure. In April 2007, Fawkes decided to resign and open a competing business. He met with the company president and his supervisor to discuss the plan and to assure them that he intended to honor the nonsolicitation agreement. Fawkes’ supervisor formally informed the department that Fawkes was leaving to start his own firm.
On April 23, with his supervisor’s permission, Fawkes sent a letter to 90 of his business contacts informing them that he was starting his own business. On April 30, his employment with Wachovia Insurance ended. Two months later, Wachovia sued Fawkes and his new business for breach of the nonsolicitation agreement, misappropriation of trade secrets, and computer theft. Fawkes asked the court to dismiss the case.
What the court said. Wachovia alleged that Fawkes had breached his written agreement not to solicit clients. Fawkes countered that the covenant imposed an unreasonable restraint on his ability to do business because it forbade him to solicit clients that had already ended their relationships with Wachovia Insurance. The court agreed with Fawkes; the covenant defined a customer as “any individual or entity that has purchased an insurance contract through the Company,” which the court found to include too many customers that no longer had a relationship with Wachovia. It thus found the nonsolicitation agreement too broad to be enforceable.
Wachovia also complained that Fawkes had breached the agreement by hiring two of its employees for his new company. In fact the employees had approached Fawkes and he had not approached or solicited them, so the court found no breach.
Wachovia next argued that Fawkes had misappropriated trade secrets by using a Wachovia Insurance client list from password-protected company computers. To obtain relief under the Georgia Trade Secrets Act (GA Code Sec. 10-1-760), Wachovia needed to show that this information was not commonly known to the public. But Fawkes proved that all of the information was available on a public website (“freeERISA.com”), commonly used by employee benefits companies for prospecting for customers. The court ruled that Fawkes had not misappropriated Wachovia’s trade secrets.
Finally, Wachovia claimed that Fawkes had committed “computer theft” because Wachovia Insurance employees who moved to Fawkes’ new company used Wachovia’s client contact information on their Blackberry® devices in their new employment. GA Code Sec. 16-9-93(a) defines computer theft as “knowingly using a computer network without permission and with the intention of taking someone else’s property.”
But Fawkes’ employees were merely using Blackberry devices that contained information Wachovia Insurance also had; Wachovia could not prove that they were using its own computer network without permission and intending to steal Wachovia’s data. The court agreed that Wachovia had shown no evidence of computer theft. It dismissed all the claims against Fawkes.
Wachovia Insurance Services v. Fallon, Ga. Ct. App., No. A09A0140 (July 14, 2009).
Professional Pointer: This employer filed this lawsuit to send “a message to others,” to communicate to future employees that the company would not tolerate them taking its business. Before trying to send a similar message, make sure you have a solid case with real damages.
Contributed by BLR, Inc. Read plain-English analysis on Employment Contracts in Georgia.
After a Georgia company reduced a vice-president’s bonus, he decided to open his own business. He discussed his departure with his supervisors and thought he had arrived at an amicable parting, only to be sued after he left the company.
What happened. “Fawkes” owned a share of an insurance company named Hamilton, Dorsey & Alston. Wachovia Insurance Services purchased Hamilton on May 1, 2001. Fawkes received cash and Wachovia Insurance stock and was given a four-year contract to work as a senior vice president in Wachovia’s employee benefits area.
In September 2004, Wachovia Insurance’s president asked Fawkes to sign a confidentiality and nonsolicitation agreement that would make Fawkes an at-will employee. Two years later, Wachovia reduced Fawkes’ bonus and commission structure. In April 2007, Fawkes decided to resign and open a competing business. He met with the company president and his supervisor to discuss the plan and to assure them that he intended to honor the nonsolicitation agreement. Fawkes’ supervisor formally informed the department that Fawkes was leaving to start his own firm.
On April 23, with his supervisor’s permission, Fawkes sent a letter to 90 of his business contacts informing them that he was starting his own business. On April 30, his employment with Wachovia Insurance ended. Two months later, Wachovia sued Fawkes and his new business for breach of the nonsolicitation agreement, misappropriation of trade secrets, and computer theft. Fawkes asked the court to dismiss the case.
What the court said. Wachovia alleged that Fawkes had breached his written agreement not to solicit clients. Fawkes countered that the covenant imposed an unreasonable restraint on his ability to do business because it forbade him to solicit clients that had already ended their relationships with Wachovia Insurance. The court agreed with Fawkes; the covenant defined a customer as “any individual or entity that has purchased an insurance contract through the Company,” which the court found to include too many customers that no longer had a relationship with Wachovia. It thus found the nonsolicitation agreement too broad to be enforceable.
Wachovia also complained that Fawkes had breached the agreement by hiring two of its employees for his new company. In fact the employees had approached Fawkes and he had not approached or solicited them, so the court found no breach.
Wachovia next argued that Fawkes had misappropriated trade secrets by using a Wachovia Insurance client list from password-protected company computers. To obtain relief under the Georgia Trade Secrets Act (GA Code Sec. 10-1-760), Wachovia needed to show that this information was not commonly known to the public. But Fawkes proved that all of the information was available on a public website (“freeERISA.com”), commonly used by employee benefits companies for prospecting for customers. The court ruled that Fawkes had not misappropriated Wachovia’s trade secrets.
Finally, Wachovia claimed that Fawkes had committed “computer theft” because Wachovia Insurance employees who moved to Fawkes’ new company used Wachovia’s client contact information on their Blackberry® devices in their new employment. GA Code Sec. 16-9-93(a) defines computer theft as “knowingly using a computer network without permission and with the intention of taking someone else’s property.”
But Fawkes’ employees were merely using Blackberry devices that contained information Wachovia Insurance also had; Wachovia could not prove that they were using its own computer network without permission and intending to steal Wachovia’s data. The court agreed that Wachovia had shown no evidence of computer theft. It dismissed all the claims against Fawkes.
Wachovia Insurance Services v. Fallon, Ga. Ct. App., No. A09A0140 (July 14, 2009).
Professional Pointer: This employer filed this lawsuit to send “a message to others,” to communicate to future employees that the company would not tolerate them taking its business. Before trying to send a similar message, make sure you have a solid case with real damages.
Contributed by BLR, Inc. Read plain-English analysis on Employment Contracts in Georgia.
NLBMDA News - Government Released Guildes on H1N1
The U.S. Centers for Disease Control and Prevention (CDC) and the Department of Homeland Security (DHS) have released guidance for employers of all sizes to prepare for the possibility of the H1N1 flu in the workplace over the coming months. An "H1N1 Preparedness Guide for Small Businesses" was a also recently released. For more information and to download the guide, visit www.flu.gov. Source.
NLBMDA News - Builder Confidence Edges Up in September
Builder confidence in the market for newly built, single-family homes edged higher for a third consecutive month in September, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released last week. The HMI rose one point to 19 this month, its highest level since May of 2008.
"Today's report indicates that builders are starting to see some glimmers of light at the end of the tunnel in terms of improving sales activity," said NAHB Chief Economist David Crowe. "However, the fact that the HMI component gauging sales expectations for the next six months slipped backward this month is a sign of their awareness that this is a very fragile recovery period and several major hurdles remain that could stifle the positive momentum. Those hurdles include the impending expiration of the $8,000 tax credit as well as the critical lack of credit for housing production loans and continuing problems with low appraisals that are sinking one quarter of all new-home sales. These concerns need to be addressed if we are to embark on a sustained housing recovery that will help bolster economic growth." Read more.
"Today's report indicates that builders are starting to see some glimmers of light at the end of the tunnel in terms of improving sales activity," said NAHB Chief Economist David Crowe. "However, the fact that the HMI component gauging sales expectations for the next six months slipped backward this month is a sign of their awareness that this is a very fragile recovery period and several major hurdles remain that could stifle the positive momentum. Those hurdles include the impending expiration of the $8,000 tax credit as well as the critical lack of credit for housing production loans and continuing problems with low appraisals that are sinking one quarter of all new-home sales. These concerns need to be addressed if we are to embark on a sustained housing recovery that will help bolster economic growth." Read more.
NLBMDA News - IRS Highlights Taxability of Personal Use of Employer-Provided Cell Phones
A recent issue has been highlighted by the IRS in the personal use of employer-provided cell phones. A little-known rule currently requires that where an employee uses the employer-provided cell phone for personal purposes (i.e., only a portion can be substantiated as business use), the fair market value of such personal use is includable in the employee's gross income. Read more.
NLBMDA News - EPA to Require Contractor Certification for Lead Removal Projects
Legislation was recently introduced by Sens. Amy Klobuchar (D-MN) and Mike Crapo (R-ID) to establish a national standard for product emission ceilings and to direct the EPA to promulgate a national formaldehyde rule for composite wood products by 2011. The legislation is based on the California Air Resources Board (CARB) regulation enacted last year and appears to be an effort to impose California's standard on the rest of the country rather than go through a lengthy rulemaking process at the EPA. The legislation, S. 1660, has been referred to the Environment and Public Works Committee. Source.
NLBMDA News - Rumors Continue to Fly on Card Check
Senators speaking to union conferences last week continued to assert that support is building for a so-called "compromise" that may remove the card check component of the "Employee Free Choice Act" but still make it easier for employees to form a union by limiting the time for employers to respond and still including dangerous binding arbitration requirements. Read more.
NLBMDA News - Baucus Health Care Plan Includes Onerous 1099 Reporting Provision
As anticipated, the Baucus health care plan also includes a corporate reporting requirement as one of the revenue raising provisions to pay for healh care reform. The plan, as we've reported previously, would require all businesses to issue 1099s to all corporations from whom they purchase goods or services. As introduced in the Senate bill, there would be a $600 threshold for each vendor, posing a further administrative burden as companies would have to track spending for each vendor to determine when the threshold was reached.
NLBMDA is working with its small business alllies on this issue and will be vigorously opposing this measure. Source.
NLBMDA is working with its small business alllies on this issue and will be vigorously opposing this measure. Source.
NLBMDA News - Health Care Reform Bill Takes Shape in Senate
Tomorrow the Senate Finance Committee will begin to mark up the draft health care legislation, "America's Healthy Future Act," introduced last week by Chairman Max Baucus (D-MT). Affordability has become the major focal point, with some in the Senate seeking to increase the tax credit for individuals who will be forced to purchase insurance under the Baucus plan. Affordability is also a concern for the business community, where the Baucus small business tax credit is so narrow few businesses will be able to qualify. Read more.
NLBMDA News - Support Builds for Extension of Homebuyer Tax Credit
Senate Majority Leader Harry Reid (D-NV) last week joined Sens. Benjamin Cardin (D-MD) and John Ensign (R-NV) in sponsoring legislation (S. 1678) to extend the first-time home buyer tax credit for six months, and allow buyers to claim the credit for either 2008 or 2009. Staunch housing advocate Sen. Johnny Isakson (R-GA) and Sen. Debbie Stabenow (D-MI) have also cosponsored the bill. Read more.
Changes in Bylaws Broaden Leadership Base, Make CSA More Transparent
Jim Moody, CAE
President
The Board of Directors has made a few changes in the CSA bylaws that I’d like to share with you. Admittedly, discussing bylaws is about as interesting as watching paint dry. Yet, these changes are important, and in our spirit of transparency, I want to make sure you know about them.
Here are the highlights:
· We’ve made it clearer that the company is the member, not the person. That means that anyone from a member company can take advantage of CSA programs and services.
· There are now term limits for Board seats. Terms are for three years, and they are renewable once. After that, there can be no one in a regular Board seat from that company for the next three years. The thinking here is that we want to be inclusive with our governance. We want to avoid the reality and the perception that a small number of companies control the association. The association belongs to all member companies, and every company should have equal opportunity for a leadership role.
· For that same reason, we’ve changed the makeup of the Nominating Committee. The committee now consists of the immediate past chair (who chairs the committee), chair, incoming chair, a sitting Board member and someone not currently on the Board (the latter two chosen by the immediate past chair).
· All companies will be made aware of the selections of the Nominating Committee via e-mail. Unless there is substantial disagreement by the membership (meaning at least 20% of companies submit alternate names), the nominations will become the final selections. If a nominee from the membership hits that 20% mark, it will trigger an election conducted by mail ballot.
· We’ve added an associate member to the Board. While this member can vote as a fully vested member of the Board, he or she will not be eligible to serve as an officer. Compared to our sister associations in other parts of the country, CSA is under-represented in associate members. We believe this is an important part of our community that is missing. Adding this seat on the Board is an important step in saying that we value associate members.
· The term of the treasurer, previously unlimited, is now limited to three years. This seat is only renewable if the person was named to fill an unexpired term, and in no case can someone serve more than 60 months. While no one is implying that previous treasurers failed to do a proper job of oversight, the term limits are important insurance against collusion. Transparency makes good business sense for an association like ours, and moving this detailed knowledge of the association’s finances around to more member companies more often is desirable.
We believe these changes in the bylaws, along with some other clean-up in the language, bring CSA into the modern era in terms of governance structure. We need to be inclusive and transparent in how the association is managed, and these changes allow that to happen.
Is this an indictment on the past? Certainly not. CSA has been strong in the past because of the vision and attention of its Board. But things change, needs arise, and people’s perceptions shift. In the same way that you can’t run your business successfully the same way it was done 20 years ago, CSA has to stay in tune with the times. These bylaws changes bring us to where we need to be for now, but 10 or 15 years from now the thinking may be entirely different.
If you have questions or concerns about these changes, I welcome a discussion. The document showing all the changes is posted on our website……..
President
The Board of Directors has made a few changes in the CSA bylaws that I’d like to share with you. Admittedly, discussing bylaws is about as interesting as watching paint dry. Yet, these changes are important, and in our spirit of transparency, I want to make sure you know about them.
Here are the highlights:
· We’ve made it clearer that the company is the member, not the person. That means that anyone from a member company can take advantage of CSA programs and services.
· There are now term limits for Board seats. Terms are for three years, and they are renewable once. After that, there can be no one in a regular Board seat from that company for the next three years. The thinking here is that we want to be inclusive with our governance. We want to avoid the reality and the perception that a small number of companies control the association. The association belongs to all member companies, and every company should have equal opportunity for a leadership role.
· For that same reason, we’ve changed the makeup of the Nominating Committee. The committee now consists of the immediate past chair (who chairs the committee), chair, incoming chair, a sitting Board member and someone not currently on the Board (the latter two chosen by the immediate past chair).
· All companies will be made aware of the selections of the Nominating Committee via e-mail. Unless there is substantial disagreement by the membership (meaning at least 20% of companies submit alternate names), the nominations will become the final selections. If a nominee from the membership hits that 20% mark, it will trigger an election conducted by mail ballot.
· We’ve added an associate member to the Board. While this member can vote as a fully vested member of the Board, he or she will not be eligible to serve as an officer. Compared to our sister associations in other parts of the country, CSA is under-represented in associate members. We believe this is an important part of our community that is missing. Adding this seat on the Board is an important step in saying that we value associate members.
· The term of the treasurer, previously unlimited, is now limited to three years. This seat is only renewable if the person was named to fill an unexpired term, and in no case can someone serve more than 60 months. While no one is implying that previous treasurers failed to do a proper job of oversight, the term limits are important insurance against collusion. Transparency makes good business sense for an association like ours, and moving this detailed knowledge of the association’s finances around to more member companies more often is desirable.
We believe these changes in the bylaws, along with some other clean-up in the language, bring CSA into the modern era in terms of governance structure. We need to be inclusive and transparent in how the association is managed, and these changes allow that to happen.
Is this an indictment on the past? Certainly not. CSA has been strong in the past because of the vision and attention of its Board. But things change, needs arise, and people’s perceptions shift. In the same way that you can’t run your business successfully the same way it was done 20 years ago, CSA has to stay in tune with the times. These bylaws changes bring us to where we need to be for now, but 10 or 15 years from now the thinking may be entirely different.
If you have questions or concerns about these changes, I welcome a discussion. The document showing all the changes is posted on our website……..
Tee Bridges Appointed to State Task Force
Tee Bridges, of Stones Home Centers in Bainbridge has been appointed to represent The Construction Suppliers Association on the Residential Green Building Code Task Force of the Georgia Department of Community Affairs.
This task force was formed in response to increasing interest and requests by local governments and the building industry. The Department of Community Affairs (DCA), upon authorization by the State Codes Advisory Committee (SCAC), is working to develop a statewide residential green building code. This code will be based on the ICC-700, National Green Building Standard, developed by the International Code Council (ICC) and the National Association of Home Builders
The purpose of the Task Force is to review this code and make recommendations to the SCAC regarding its adoption and the adoption of any supplements and amendments. Upon approval by the SCAC and the DCA Board, this code will take effect on January 1, 2011 as an optional code. Local governments would first have to adopt this code if they choose to enforce it.
CSA is thrilled that Tee will be a part of this task force, helping to shape the future of green building codes in Georgia. Thank you, Tee, for your contribution.
This task force was formed in response to increasing interest and requests by local governments and the building industry. The Department of Community Affairs (DCA), upon authorization by the State Codes Advisory Committee (SCAC), is working to develop a statewide residential green building code. This code will be based on the ICC-700, National Green Building Standard, developed by the International Code Council (ICC) and the National Association of Home Builders
The purpose of the Task Force is to review this code and make recommendations to the SCAC regarding its adoption and the adoption of any supplements and amendments. Upon approval by the SCAC and the DCA Board, this code will take effect on January 1, 2011 as an optional code. Local governments would first have to adopt this code if they choose to enforce it.
CSA is thrilled that Tee will be a part of this task force, helping to shape the future of green building codes in Georgia. Thank you, Tee, for your contribution.
Thursday, September 10, 2009
CSA Introduces New Cost-Saving Health Insurance Program
By: Jim Moody, CAE
CSA President
When we’ve asked members about the challenges you face (aside from the global economic issues we can’t solve), we’ve consistently heard from you that health insurance is one of the biggest thorns in your side.
The federal government is working on that issue, but I don’t put a lot of hope in their efforts. I suspect that at the end of the day, health insurance will still be incredibly expensive for small business, and that the pressure for you to provide coverage for your employees will be intense.
While I’m not ready to say we’ve solved problem that has confounded experts and the government for many years, I am happy to say we have found an option that may present some ideas you haven’t explored previously.
For more than a year, CSA has been diligently looking at a variety of options to allow you to provide health insurance benefits without breaking the bank. That search ended last month when the Board voted to endorse a program by Association Health Programs out of Overland Park, KS.
This company is essentially an independent agency with the ability to write policies from a variety of companies, including all the big names. But this is where the similarity to traditional programs ends.
Rather than looking for the best group rate, Association Health Programs starts with individual plans. These are typically less expensive than group plans, and there are some other benefits as well. For instance, the plans are portable, meaning if the employee loses his job, he can keep his health insurance as long as he’s willing to pay the premium himself (and you don’t have to worry about administering COBRA benefits). Also, the policy can’t be cancelled for any reason (group plans can be cancelled). It may also allow you to tailor coverage to the individual’s situation for the best combination of price and coverage, which may be different from employee to employee.
One downside is that in some states (Georgia is one), insurance companies can choose not to write initial coverage for some individuals. (Alabama is a different story – everyone with an Alabama residence or an employer in Alabama is guaranteed coverage through a state risk pool.) When there are employees who can’t be insured individually, a group plan must remain. The goal then becomes to make the group as small as legally possible and cover everyone else as an individual.
As you might guess, this approach can be complicated. On the other hand, the cost savings can be dramatic – 30-40% is not unusual. Each company is different, so the plan has to be tailored for your needs and must take into account the health of your employees. While I can’t promise that everyone will see this kind of savings, the due diligence we’ve done convinces me that this program really will work for many of you. The only way to know is to call Association Health Programs to discuss your specific situation and let them work on quotes for you.
Note that this is not a health savings account that requires lots of administration nor is it some fly-by-night option that will fold without notice. The company has been in business for years and has hundreds of thousands of people covered through various plans. That large number gives AHP buying power you can’t find in a “regular” agent, and that is the key to providing lower cost premiums.
We’ll be working hard over the next few months to educate you more about this option. I suspect you are intrigued but have questions, which is reasonable. Feel free to contact me with general questions or call AHP directly to quiz them on how this all works. There’s also a website with more information: http://www.associationpros.com/assoc/csa. You can also call toll-free at (888) 450-3040 for more information.
Again, this may not work for everyone. But it does offer you an option you probably haven’t considered before, and it has the potential to save you a fair amount of money. Now, more than ever, something like this is worth exploring.
CSA President
When we’ve asked members about the challenges you face (aside from the global economic issues we can’t solve), we’ve consistently heard from you that health insurance is one of the biggest thorns in your side.
The federal government is working on that issue, but I don’t put a lot of hope in their efforts. I suspect that at the end of the day, health insurance will still be incredibly expensive for small business, and that the pressure for you to provide coverage for your employees will be intense.
While I’m not ready to say we’ve solved problem that has confounded experts and the government for many years, I am happy to say we have found an option that may present some ideas you haven’t explored previously.
For more than a year, CSA has been diligently looking at a variety of options to allow you to provide health insurance benefits without breaking the bank. That search ended last month when the Board voted to endorse a program by Association Health Programs out of Overland Park, KS.
This company is essentially an independent agency with the ability to write policies from a variety of companies, including all the big names. But this is where the similarity to traditional programs ends.
Rather than looking for the best group rate, Association Health Programs starts with individual plans. These are typically less expensive than group plans, and there are some other benefits as well. For instance, the plans are portable, meaning if the employee loses his job, he can keep his health insurance as long as he’s willing to pay the premium himself (and you don’t have to worry about administering COBRA benefits). Also, the policy can’t be cancelled for any reason (group plans can be cancelled). It may also allow you to tailor coverage to the individual’s situation for the best combination of price and coverage, which may be different from employee to employee.
One downside is that in some states (Georgia is one), insurance companies can choose not to write initial coverage for some individuals. (Alabama is a different story – everyone with an Alabama residence or an employer in Alabama is guaranteed coverage through a state risk pool.) When there are employees who can’t be insured individually, a group plan must remain. The goal then becomes to make the group as small as legally possible and cover everyone else as an individual.
As you might guess, this approach can be complicated. On the other hand, the cost savings can be dramatic – 30-40% is not unusual. Each company is different, so the plan has to be tailored for your needs and must take into account the health of your employees. While I can’t promise that everyone will see this kind of savings, the due diligence we’ve done convinces me that this program really will work for many of you. The only way to know is to call Association Health Programs to discuss your specific situation and let them work on quotes for you.
Note that this is not a health savings account that requires lots of administration nor is it some fly-by-night option that will fold without notice. The company has been in business for years and has hundreds of thousands of people covered through various plans. That large number gives AHP buying power you can’t find in a “regular” agent, and that is the key to providing lower cost premiums.
We’ll be working hard over the next few months to educate you more about this option. I suspect you are intrigued but have questions, which is reasonable. Feel free to contact me with general questions or call AHP directly to quiz them on how this all works. There’s also a website with more information: http://www.associationpros.com/assoc/csa. You can also call toll-free at (888) 450-3040 for more information.
Again, this may not work for everyone. But it does offer you an option you probably haven’t considered before, and it has the potential to save you a fair amount of money. Now, more than ever, something like this is worth exploring.
OSHA to Target Nursing Homes, Manufacturing Facilities for Inspections
OSHA said its Site-Specific Targeting 2009 program will focus enforcement efforts on nearly 4,000 high-hazard worksites on the agency's list for comprehensive safety inspections. The agency said the SST program helps it direct enforcement resources to workplaces such as manufacturing and nursing homes where the highest rate of injuries and illnesses occur.
Changes to this year's program include dividing the primary list of establishments slated for inspection into three sectors--manufacturing, non-manufacturing, and nursing homes. Rather than using one rate for all establishments, OSHA established minimum injury and illness rates for each group, allowing the agency to inspect even more establishments that exceed the minimum rates specific to that sector. Additionally, some facilities that did not answer an OSHA Data Initiative survey will be added to the inspection list. The agency said its intent is to deter employers from not responding to avoid inspection. Read more.
Changes to this year's program include dividing the primary list of establishments slated for inspection into three sectors--manufacturing, non-manufacturing, and nursing homes. Rather than using one rate for all establishments, OSHA established minimum injury and illness rates for each group, allowing the agency to inspect even more establishments that exceed the minimum rates specific to that sector. Additionally, some facilities that did not answer an OSHA Data Initiative survey will be added to the inspection list. The agency said its intent is to deter employers from not responding to avoid inspection. Read more.
Wednesday, September 9, 2009
Ask the Human Resources Experts
Question: Do we have to pay employees for their time spent going to mandatory drug testing?
Answer: Yes. The Department of Labor (DOL) does not oversee workplace drug testing, but the Fair Labor Standards Act (FLSA) provides guidance as to what is considered compensable hours worked.
For various reasons (e.g., per regulations, drug-free workplace, position relevance, etc.), some employers require employees to participate in mandatory drug testing prior to the beginning of employment and/or after hire. Employers are not required to compensate a person for any time spent on pre-employment drug testing. However, once the employee is hired, FLSA guidance requires employers to compensate employees when they go for such testing because the drug testing is mandated by the employer. According to the DOL web site, “Whenever you impose special tests, requirements or conditions that your employee must meet, time he or she spends traveling to and from the tests, waiting for and undergoing these tests, or meeting the requirements is probably hours worked.” Because the employee must participate in the testing as a condition of employment, it will restrict the employee from performing other responsibilities. Therefore, the time of day an employee is scheduled for the testing (e.g., before work, during work hours or after work) does not determine whether the employee will be compensated. The facts that the testing is under the employer’s control, related to the company business and a condition of employment will meet the standard for that time being counted toward hours worked.
Employers should consider scheduling employee drug testing during normally scheduled work hours. This practice could avoid any potential overtime issues because of the additional compensable time spent participating in the drug testing.
From the Society of Human Resources Managers
Answer: Yes. The Department of Labor (DOL) does not oversee workplace drug testing, but the Fair Labor Standards Act (FLSA) provides guidance as to what is considered compensable hours worked.
For various reasons (e.g., per regulations, drug-free workplace, position relevance, etc.), some employers require employees to participate in mandatory drug testing prior to the beginning of employment and/or after hire. Employers are not required to compensate a person for any time spent on pre-employment drug testing. However, once the employee is hired, FLSA guidance requires employers to compensate employees when they go for such testing because the drug testing is mandated by the employer. According to the DOL web site, “Whenever you impose special tests, requirements or conditions that your employee must meet, time he or she spends traveling to and from the tests, waiting for and undergoing these tests, or meeting the requirements is probably hours worked.” Because the employee must participate in the testing as a condition of employment, it will restrict the employee from performing other responsibilities. Therefore, the time of day an employee is scheduled for the testing (e.g., before work, during work hours or after work) does not determine whether the employee will be compensated. The facts that the testing is under the employer’s control, related to the company business and a condition of employment will meet the standard for that time being counted toward hours worked.
Employers should consider scheduling employee drug testing during normally scheduled work hours. This practice could avoid any potential overtime issues because of the additional compensable time spent participating in the drug testing.
From the Society of Human Resources Managers
CDC Guidelines Urge Employers to Prepare Now for Upcoming Flu Season
From Jackson Lewis
Anxiety over the new H1N1 flu may have eased during the summer, but the federal government has reminded us that seasonal and H1N1 flu may again command concern with the coming of fall. The Centers for Disease Control and Prevention, anticipating a spread of the H1N1 flu, has released new guidelines (available at here) to help businesses and employers prepare now for the impact seasonal and H1N1 flu could have on employers, employees and operations.
The CDC warns, “The severity of illness that 2009 H1N1 influenza flu will cause (including hospitalizations and deaths) or the amount of illness that may occur as a result of seasonal influenza during the 2009–2010 influenza season cannot be predicted with a high degree of certainty. Therefore, employers should plan to be able to respond in a flexible way to varying levels of severity and be prepared to refine their pandemic influenza response plans if a potentially more serious outbreak of influenza evolves during the fall and winter.” Learn about the guidelines here.
Anxiety over the new H1N1 flu may have eased during the summer, but the federal government has reminded us that seasonal and H1N1 flu may again command concern with the coming of fall. The Centers for Disease Control and Prevention, anticipating a spread of the H1N1 flu, has released new guidelines (available at here) to help businesses and employers prepare now for the impact seasonal and H1N1 flu could have on employers, employees and operations.
The CDC warns, “The severity of illness that 2009 H1N1 influenza flu will cause (including hospitalizations and deaths) or the amount of illness that may occur as a result of seasonal influenza during the 2009–2010 influenza season cannot be predicted with a high degree of certainty. Therefore, employers should plan to be able to respond in a flexible way to varying levels of severity and be prepared to refine their pandemic influenza response plans if a potentially more serious outbreak of influenza evolves during the fall and winter.” Learn about the guidelines here.
Webinar: ENERGY STAR Qualified Homes
W E B I N A R
ENERGY STAR Qualified Homes: New Opportunities for Building Material Suppliers
with Sam Rashkin
Tuesday, September 22, 2009 at 3:00p.m. (EST)
$139.00 per logged on computer
Yes the housing market is soft with the recovery time hard to predict. However, one thing is certain: homes will be built far better according to advanced building science principles. The Business case is too compelling for everyone involved. Take this seminar and find out how ENERGY STAR Qualified Homes will help change the entire building industry landscape.
Topics:
Overview of why specific structures work or don’t
Why structures that do work cost less and perform better
How ENERGY STAR Qualified Homes’ new specifications ensure structures that do work
What materials will builders need from suppliers to meet new ENERGY STAR Qualified Homes specifications
Preview where housing is going in the future in response to energy, national security, and en-vironmental imperatives.
The presenter, Sam Rashkin, has managed ENERGY STAR for Homes since its start in 1996. Under his leadership, ENERGY STAR for Homes has grown exponentially to more than 8,000 builder partners and is now approaching one million labeled homes. He is also overseeing an advanced technology pro-gram for elite builders called ENERGY STAR Concept Home. Mr. Rashkin received his Bachelor of Ar-chitecture from Syracuse University, completed Master of Urban Planning studies at New York University, and is a registered architect in California and New York.
ENERGY STAR Qualified Homes: New Opportunities for Building Material Suppliers
with Sam Rashkin
Tuesday, September 22, 2009 at 3:00p.m. (EST)
$139.00 per logged on computer
Yes the housing market is soft with the recovery time hard to predict. However, one thing is certain: homes will be built far better according to advanced building science principles. The Business case is too compelling for everyone involved. Take this seminar and find out how ENERGY STAR Qualified Homes will help change the entire building industry landscape.
Topics:
Overview of why specific structures work or don’t
Why structures that do work cost less and perform better
How ENERGY STAR Qualified Homes’ new specifications ensure structures that do work
What materials will builders need from suppliers to meet new ENERGY STAR Qualified Homes specifications
Preview where housing is going in the future in response to energy, national security, and en-vironmental imperatives.
The presenter, Sam Rashkin, has managed ENERGY STAR for Homes since its start in 1996. Under his leadership, ENERGY STAR for Homes has grown exponentially to more than 8,000 builder partners and is now approaching one million labeled homes. He is also overseeing an advanced technology pro-gram for elite builders called ENERGY STAR Concept Home. Mr. Rashkin received his Bachelor of Ar-chitecture from Syracuse University, completed Master of Urban Planning studies at New York University, and is a registered architect in California and New York.
Click the pictures to enlarge, print and complete for registration.
NLBMDA News
Congress Returns to Tackle Health Care and Packed Agenda
Congress returned to Washington today to set to work resolving differences on health care reform that only seemed to widen during the August recess. Climate change legislation, expiring tax credits and the annual spending bills are also on the to do list, making it likely that the scheduled October 8 adjournment date will pass long before Congress completes their work for the year. President Obama will deliver remarks on health care to a joint session of Congress on Wednesday evening. Read more.
NLBMDA Calls on Congress to Extend Homebuyer Tax Credit
As Congress gets back to work, NLBMDA is calling on members of the Senate Finance Committee and House Ways and Means Committee to highlight the importance of extending the homebuyer tax credit before it expires on November 30, 2009. Over 140 letters were sent by NLBMDA members during the August recess, highlighting the importance of this tax credit in returning the housing market to stability and restoring our nation's economy. NLBMDA called on the committees to support and pass legislation such as that introduced by Sen. Johnny Isakson (R-GA) to make the tax credit available to all buyers and extend its availability through 2010. Read more.
Lawmakers Considering Temporary Estate Tax Fix
Faced with the Dec. 31, 2009, deadline for the phased-out elimination of the estate tax, which will go to zero in 2010 but return in full in 2011, legislators have begun to explore various options for retaining the tax. Several bills have been introduced that would make permanent exemptions of $2 to 5 million and lock in overall tax rates at 30, 40 or 55 percent. Read more.
Energy Efficiency Tax Incentives Introduced
While broader climate change legislation is being delayed in part due to the debate on health care reform, more targeted pieces of legislation are being promulgated to seek to extend existing and create new incentives for energy efficient and green buildings. Just prior to the August recess, Senators Olympia Snowe (R-ME), Dianne Feinstein (D-CA) and Jeff Bingaman (D-NM) introduced a package of tax incentive legislation including the "Expanding Building Efficiency Incentives Act" (S. 1637). Read more.
Congress returned to Washington today to set to work resolving differences on health care reform that only seemed to widen during the August recess. Climate change legislation, expiring tax credits and the annual spending bills are also on the to do list, making it likely that the scheduled October 8 adjournment date will pass long before Congress completes their work for the year. President Obama will deliver remarks on health care to a joint session of Congress on Wednesday evening. Read more.
NLBMDA Calls on Congress to Extend Homebuyer Tax Credit
As Congress gets back to work, NLBMDA is calling on members of the Senate Finance Committee and House Ways and Means Committee to highlight the importance of extending the homebuyer tax credit before it expires on November 30, 2009. Over 140 letters were sent by NLBMDA members during the August recess, highlighting the importance of this tax credit in returning the housing market to stability and restoring our nation's economy. NLBMDA called on the committees to support and pass legislation such as that introduced by Sen. Johnny Isakson (R-GA) to make the tax credit available to all buyers and extend its availability through 2010. Read more.
Lawmakers Considering Temporary Estate Tax Fix
Faced with the Dec. 31, 2009, deadline for the phased-out elimination of the estate tax, which will go to zero in 2010 but return in full in 2011, legislators have begun to explore various options for retaining the tax. Several bills have been introduced that would make permanent exemptions of $2 to 5 million and lock in overall tax rates at 30, 40 or 55 percent. Read more.
Energy Efficiency Tax Incentives Introduced
While broader climate change legislation is being delayed in part due to the debate on health care reform, more targeted pieces of legislation are being promulgated to seek to extend existing and create new incentives for energy efficient and green buildings. Just prior to the August recess, Senators Olympia Snowe (R-ME), Dianne Feinstein (D-CA) and Jeff Bingaman (D-NM) introduced a package of tax incentive legislation including the "Expanding Building Efficiency Incentives Act" (S. 1637). Read more.
Practicing Positive Employee Relations
In CSA’s continuing desire to improve member services, the idea of this desk book was born. This book is intended to provide members' executives and managers with a source of information and guidance in attaining positive employee relations at their individual companies. Use this book as a starting point for auditing, modifying, and developing your own personnel practices and procedures that are best suited for your individual corporate culture. We hope that you use this book as a true "desk book." Keep it handy and refer to it often in managing employees.[1]
This book is available at a member discount of $59. To order, please email your name and shipping address to lisagolden@gocsa.com. We will invoice you for the amount when the order is shipped.
[1] This desk book is intended only as a guide to provide general information on the topics discussed here. It is not intended as legal advice on particular matters. Since many of the issues addressed in this desk book are legal in nature, a review of the specific facts relevant to the particular member company should be made prior to implementation of any of the concepts set forth here. Accordingly, members are strongly advised to consult with counsel concerning the applicability of any of the matters discussed in this desk book to their particular companies and to the particular situation at issue.
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