Thursday, June 30, 2011

Federal Appeals Court Rules Health Care Reform Bill is Constitutional

The political and legal future of Healthcare Reform received a big boost Wednesday after a federal appeals court in Cincinnati ruled in favor of the Obama administration and Congress, concluding a key provision in the landmark legislation was constitutional.

The “individual mandate” requiring all Americans to purchase health insurance by 2014 or face financial penalties—was challenged in federal courts by a large number of individuals and groups, who said people should not be forced to purchase a product like medical coverage. A partially divided U.S. Court of Appeals for the 6th Circuit disagreed.

“We find the minimum coverage provision is a valid exercise of legislative power by Congress under the Commerce Clause,” said the three-judge panel on Wednesday, in a 64-page opinion.

The opinion is the first of three rulings that will emerge from the federal appeals courts around the country in the coming weeks over the Patient Protection and Affordable Care Act.

The issue is almost certain to eventually reach the Supreme Court, perhaps by year’s end. More than two dozen other legal challenges to the law are floating in lower federal courts.

Email-"E" is for evidence

Do employees in your organization know how to send email? Of course they know how to physically send a message. But have you ever taught them what should- and, more importantly, should not- be included in emails?

The "E" in email stands for eternal evidence and it doesn't go away! Here are a couple of examples of real email mistakes that cost employers big in court, including managers who included these words in their email:
  • "We would like to accommodate you, but we're not set up for blind people." (an $8 Million verdict!)
  • "I don't care about the FMLA, shmeflma!" (a $650,000 verdict!)
  • "I'm sick of always have to accommodate her."
Corporate emails are a "treasure trove of evidence" in employment law court cases. More than 107 trillion emails were sent in 2010 alone and business people spend about 25% of their workdays on email. This constantly changing online environment is creating a legal minefield for U.S. employers. Employers are required to place a "litigation hold" on destroying any email once they become aware that a legal claim may be coming.

Think about it- how much training or time is spent with your middle management or upper management talking about the information that is contained in interoffice emails? Employees should have no expectation of privacy with emails- NONE! And you should make that perfectly clear with every employee- salaried or hourly. Here are 3 myths commonly held by employees concerning emails:
  1. It's my e-mail, with my name on it, so you can't search it.
Employer response: A simply stated email policy puts you on notice of the employer's rights and defeats your reasonable expectation of privacy.

  2.  It's my own personal password and personal folders, not the Company's.

Employers response: True, but they are being transmitted on the company's network, therefore, it is property of the employer.

   3. I own my own computer and bring it to work.

Employer response: The computer was being used for work-related purposes and therefore you have no reasonable expectation of privacy.

Employees need to realize that "they're always creating legal documents with the creation of each new email. HR should teach employees to approach email based on these three guiding principles"
  1. Start all emails by asking yourself, "Does this need to be in writing?" If not, pick up the phone or walk down the hall.
  2. If you can't say it in person, don't email it.
  3. Write every email like it's going to be read to a jury... because it just may be!
Comment back and let me know of any "mistakes" that you know have been made with your company emails, and how you solved the problems.

Bobby Bland PWCA, CIC
Vice President
Commercial Risk Service

Thursday, June 23, 2011

How to retain your best employees

The rules of employee retention have changed. No longer can loyalty be bought with big salaries, hefty bonuses, and rich benefits packages. Today it takes intangible, non-monetary rewards to creates an atmosphere that makes your people feel valued, respected, and involved. It takes a whole new way of thinking. This is the 20th and Final edition of a 20-week special on ideas you could implement to keep those best employees:

20) Hire the Right People
One surefire way to retain good people is to hire good people in the first place! Today, more than ever, the hiring process involves much more than reviewing qualifications, checking references, and negotiating salaries. In fact, many managers are learning that employees' intangibles may override their work experience. After all , new hires can always be trained in the nuances of your business. What's harder to teach, however, is compatibility with your current staff, positive attitude, and work ethic-all of the ingredients that make for a long-lasting employee-employer relationship.

As you meet with job applicants, be sure to schedule multiple interviews with the most promising candidates. Keep bringing them back until you have a good feel for their personalities, their likes and dislikes. It's better to uncover their good- and bad- qualities before they come on board.

Also make it a regular practice to invite current employees to attend interviews. They may know better than you how a new person will relate to the rest of the staff. And, you'll also send a clear message that their input is welcome, needed and valued.

I hope you have enjoyed this 20-week look into retaining your best employees. If you need any more information about this subject, please don't hesitate to contact me.

Bobby Bland PWCA, CIC
Vice President
Commercial Risk Service

Health Savings Account Plans See Brisk Growth

Enrollment in high-deductible health insurance plans that can help consumers save for medical expenses climbed 14 percent this year and has jumped 87 percent since January 2008, according to the trade association America's Health Insurance Plans.

A total of 11.4 million had enrolled in high deductible plans that are eligible for health savings accounts as of January. That compares to 10 million in January, 2010, and 6.1 million people at the start of 2008.

High-deductible health insurance plans generally come with premiums lower than traditional coverage, but the patient or customers pays more out of pocket before coverage starts. If the deductibles are at least $1,200 for an individual and $2,400 for a family, the plan can be paired with health savings accounts. Customer can deposit pre-tax savings in these accounts, along with employer contributions, to help cover medical expenses.

Health savings accounts entered the market in 2004, and employers have shown a growing interest in plans that offer health savings accounts as they search for ways to corral spiraling health care expenses and make their workers more aware of the costs.

Large-group employers, or those with more than 50 workers, were the fastest-growing market for health savings account plans in the past year. California had the highest level of enrollment in health savings accounts with nearly 1.1 million.

While enrollment is growing in these plans, coverage with health savings accounts still makes up only about 7 percent of total health insurance enrollment for people under age 65.

Thursday, June 16, 2011

A Guide to New Americans with Disabilities Act Regulations

On May 24, 2011, new regulations following the 2009 amendments to the Americans with Disabilities Act (ADA) took effect which means that more people will be considered disabled under the law.

A summary of changes:

* Terms used in the ADA’s definition of disability have changed.

* Employers received limited guidance on what “substantially limited” means.

* The list of “major life activities” has expanded to include activities such as sitting, reaching and interacting with people. It also includes the operation of major bodily functions such as special sense organs, skin, genitourinary, hemic, lymphatic and musculoskeletal systems.

*Certain conditions will virtually always constitute disabilities under the law. These include deafness, blindness, intellectual disability, missing limbs or mobility impairments requiring the use of a wheelchair, autism, cancer, cerebral palsy, diabetes, epilepsy, HIV, multiple sclerosis, muscular dystrophy, major depressive disorder, bipolar disorder, post-traumatic stress disorder, obsessive-compulsive disorder and schizophrenia.

*”Regarded as” disabled claims are easier to make. Employers can be liable for discrimination if any adverse employment action is taken because of an actual or perceived disability unless that disability is both transitory and minor. Employers do not need to accommodate people who are claiming discrimination based on the “regard as” definition of disability.

Other Pollution Threats to Marina Operators, Boat Dealers, and Lake/River Resort Operators

Marina operators, boat dealers, and lake/river resort operators depend on clean and abundant water for the success of their businesses. Consequently, it makes sense to pay attention to things that could affect the water quality. Fuel providers such as marina and some resort operators have long known that their fuel operations could lead to potential damages caused by a fuel spill and these businesses can take steps to prepare for those kind of damages and to minimize the risks. Insurance can and should be purchased to protect fuel providers from financial loss related to a fuel spill.

There are other pollution threats that cannot easily be planned for that could impact marina and resort operators as well as boat dealers. Concentrated animal farms/ranches and the natural gas drilling process known as fracking are two potential threats to water quality and there are others. If rivers and lakes are polluted, people may simply stop visiting those rivers and lakes, which would be a disaster for businesses that depend on the rivers and lakes. Unfortunately, this is a risk that is uninsurable! A property insurance policy is triggered by damage to insured property and if the water is polluted but the insured property is not damaged, the property insurance policy including Loss of Income coverage would not be triggered.

My advice to marina operators, boat dealers, and lake/river resort operators is to keep your eyes and ears open when it comes to environmental issues related to water quality and to get involved at the local and state government levels to make sure your representatives know how important water quality is to the success of your business. Get involved with trade associations if possible and make sure the association is working on water quality issues. Water pollution is real and the consequences of a river or lake becoming known as a polluted waterway are very real to marina operators, boat dealers, and lake/river resort operators and could be disastrous!

Doug Timmons, CIC, CMIP
Commercial Risk Service

Wednesday, June 15, 2011

How to retain your best employees

The rules of employee retention have changed. No longer can loyalty be bought with big salaries, hefty bonuses, and rich benefits packages. Today it takes intangible, non-monetary rewards to create an atmosphere that makes your people feel valued, respected, and involved. It takes a whole new way of thinking. This is the 19th edition of a 20-week special on ideas you could implement to keep those best employees:

19) Respect Your Employees’ Time

In today’s downsized corporate world, employees are being asked to take on more and more. Work weeks are getting longer. Overtime is the norm. Saturdays often include a few hours at the office. Does this workload drive people to look for new jobs? Not if you manage it properly.

The simple fact is that most people don’t resent hard work; they resent unreasonable deadlines, last-minute surprises, and a lack of respect for their free time. If you have a project that’s going to require overtime, let your staff know about it well in advance and let them work out their own schedules to get the job done. What drives a good employee to update her resume is calling her into your office at 3:30 on a Friday afternoon and asking her to stay late that night- when she has theater tickets.

Of course, there will always be times when extra work pops up unexpectedly. Whenever possible, try to stay late yourself on those nights. Your actions will speak volumes in building teamwork, communicating mutual respect, and conveying a sense that “we’re in this together.” Besides, you’ll get the work done faster.

Remember- your employees are first and foremost human beings. Make sure you treat them that way!

What are some ways you and your business are working with your employees to respect their time? Let us know…

Wednesday, June 8, 2011

How to retain your best employees

The rules of employee retention have changed. No longer can loyalty be bought with big salaries, hefty bonuses, and rich benefits packages. Today it takes intangible, non-monetary rewards to create an atmosphere that makes your people feel valued, respected, and involved. It takes a whole new way of thinking. This is the 18th edition of a 20-week special on ideas you could implement to keep those best employees:

18) Give Employees Options

Rewards pack a bigger punch when they have personal meaning for the recipient. Let’s say, for example, that you want to recognize one of your teams for their new ideas on cutting office supply costs. The problem: you’re not sure what they’ll find valuable. In a case like this, the solution is simple. Give the employee a choice of rewards. Examples might include:

• A private lunch with the company president or a team pizza party

• A small cash bonus or an extra vacation day

• Public recognition in the company newsletter or a discreet letter of praise in their personnel file.

• An unscheduled casual day or an invitation to the next management meeting.

Recognizing good employees is one thing. Involving them in the process is quite another. By offering choices, you can make the reward uniquely theirs- not a cookie-cutter gesture, but a thoughtful show of appreciation that honors the personal talents of the individual.

Send a comment back and let me know what ideas your organization has done to reward their employees…

Thursday, June 2, 2011

Hatch Bill Would Expand HSA's, FSA's

Sen. Orin Hatch, R-Utah, introduced Thursday, a bill that would modify and streamline rules for health savings accounts and flexible spending accounts.

Companion legislation was introduced in the U.S House of Representatives by U.S.Rep. Erik Paulsen (R-Minn.).

Known as The Family and Retirement Health Investment Act of 2011, Hatch's bill would:
  • Allow a husband and wife to make catch-up contributions to the same Health Savings Account.
  • Remove the onerous new restrictions on the use of Health Savings Accounts and flexible Sending Accounts dollars for the purchase of over the counter drugs.
  • Allow individuals to roll-over up to $500 from their Flexible Spending Accounts.
  • Clarify the use of prescription drugs as preventive care that will not be subject to the Health Savings Account-eligible plan deductible.
  • Reauthorize the use of Medicaid health opportunity accounts.
  • Promote wellness by expanding the definition of qualified medical expenses to encourage more exercise and better diet.
  • Allows seniors enrolled in Medicare Part A to continue contributing to their Health Savings Accounts.
  • Allow for the purchase of low-premium health insurance and long-term care insurance with Health Savings Accounts dollars.
  • Repeals the recently enacted deductible limits of $2,000 for single coverage and $4,000 for family coverage for plans sold to small employers.
  • Allows for purchase of Cobra coverage, long term care insurance and Health Savings Accounts-qualified policies from a Health Savings Account.
"This legislation will provide American workers and retirees with a common-sense way of improving access to quality, affordable health care," said Hatch, a ranking member of the Senate Finance Committee. "These health plans empower Americans to take control of their health and well-being. Health Savings Accounts and Flexible Spending Accounts allow consumers to make informed decisions about their health care and will help restrain costs by putting people in charge of their health choices."

Wednesday, June 1, 2011

How to retain your best employees

The rules of employee retention have changed. No longer can you be bought with big salaries, hefty bonuses, and rich benefits packages. Today it takes intangible, non-monetary rewards to create an atmosphere that makes your people feel valued, respected, and involved. It takes a whole new way of thinking. This is the seventeenth edition of a 20-week special on ideas you could implement to keep those best employees:

17) Place an Ad
Public recognition is one of the highest forms of praise you can offer. For example, if you're looking for a unique way to say "Job well done!" take out an ad in the local newspaper to sing the praises of your employees. Be sure to mention them by name, and state specifically what they've done to be entitled to the recognition. You can rest assured that employees will clip the ad and post it on bulletin boards and refrigerator doors for months to come. In addition, you'll generate some positive publicity for your organization.

You may find other ways to spread praise. Some organizations, for example, display photographs of top employees or work teams in a public area for everyone to see. Another idea is to proclaim "Jill Smith Day" or "Team Alpha Day" across your organization.

Of course, some employees may feel embarrassed by public praise. A handwritten note expressing your appreciation for their efforts can be a powerful reinforcement. You can take one further step by sending thank-you notes to employees' spouses, or parents. This makes the employee feel doubly good, and also helps spread the word that your organization is a place where effort is appreciated and rewarded.

Send a comment back and let me know what ideas your organization has come up with to celebrate great employee achievements--