AUTHOR: Katie Clarey | PUBLISHED May 21, 2020

Dive Brief:

• The Sherwin-Williams Company will pay $3,650,000 to settle claims brought by its managers and associates that it failed to pay proper overtime and provide all meal periods, among other violations of California law (Anderson v. The Sherwin-Williams Company No. 5:17-cv-02459 (C.D. Calif. May 12, 2020)).
• Workers’ allegations also included claims that the paint store failed to authorize, permit and compensate all rest periods, and that it failed to fully reimburse work expenses.
• The settlement class includes about 5,700 Sherwin-Williams workers, court documents stated. The company did not respond to request for comment by publication time.

Dive Insight:

Sherwin-Williams workers brought their claims under California law, but the federal Fair Labor Standards Act (FLSA) is often invoked for these types of allegations, which are common and frequently result in large settlements like this one.

Meal breaks have been responsible for many wage and hour-related claims, especially when they involve automatic deductions. Workers at an Alabama nursing home, for example, filed suit alleging their employer automatically deducted 30-minute meal breaks from their pay without ensuring they stopped working during that time.

The FLSA does not expressly prohibit such deductions, but it does require employers to pay employees for all hours worked and to keep accurate records of the hours worked. "While auto-deducting meal breaks is not a per se violation of the Fair Labor Standards Act (FLSA), employers could face exposure to 'off the clock' wage and hour lawsuits if employees are actually working during meal breaks and not being paid," Freeborn & Peters Partner Erin McAdams Franzblau previously told HR Dive. "Auto-deducting meal breaks can also expose employers to claims that they are skirting the overtime wage requirements of state and federal law."

Alleged overtime violations make up another source of claims invoking the FLSA. The law obligates employers to pay non-exempt workers time and one-half for all hours worked beyond 40 in a workweek. Steak 'n Shake paid more than $7.7 million to workers it misclassified as managers and denied overtime pay.

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Source: HR Dive

https://www.hrdive.com/news/sherwin-williams-wage-and-hour-claims/578368/

Ben Penn, Reporter | May 20, 2020, 6:03 AM

• DOL final rule clarifies fluctuating workweek method
• Use of alternate overtime method projected to rise

The Labor Department has finalized a regulation to give employers more flexibility and legal clarity by allowing them to incorporate bonuses when using an alternate overtime pay calculation for workers with irregular schedules.

When it takes effect in 60 days, the final rule will give companies more protection from wage lawsuits, but it also could lead employers to abuse their newfound regulatory freedom by reducing salaries—a concern worker advocates have raised. The DOL framed the regulation, which revives a George W. Bush administration initiative that was quashed by the Obama DOL, as a “final rule to expand American workers’ access to bonuses.”

The rule updates “fluctuating workweek” overtime calculations, an option available for employers under the Fair Labor Standards Act. The method allows businesses to pay certain workers whose hours vary widely each week at half their regular rate, instead of at one-and-a-half times, for any hours worked over 40 each week.

The rule states that bonuses, premium payments, hazard pay, and other incentives are compatible with the regular-rate calculation, rescinding language from the Obama-era rule.

That 2011 regulation blocked employers from including bonuses and other forms of premium payments when calculating the regular hourly rate of pay, which is then cut in half for overtime calculations. The Obama rule was meant to stop employers from reducing salaries by shifting large portions of compensation models to reflect performance and other incentives.

Sparking a Trend?

The fluctuating method isn’t utilized often, but the new rule could lead more companies to consider adopting it as a way to control payroll costs for workers whose hours vary significantly from week to week, while paying them on a partially incentive-based structure.

Fearing a lawsuit, some employers have played it safe by not using the fluctuating workweek method at all, or using it without including bonuses, management attorneys have said.

The rule, after being proposed last year, was the subject of critical comments from Democratic state attorneys general, the National Employment Law Project, and the plaintiffs’ bar. The criticism echoed the Obama DOL’s justification in 2011 for killing the Bush initiative, which had been proposed in 2008.

“The proposed regulation could have had the unintended effect of permitting employers to pay a greatly reduced fixed salary and shift a large portion of employees’ compensation into bonus and premium payments, potentially resulting in wide disparities in employees’ weekly pay depending on the particular hours worked,” the Obama DOL said in justifying the 2011 decision not to finalize the proposal.

That 2008 version was issued too late in Bush’s second term for the administration to complete it. While the Trump administration’s effort also comes in an election year, it stands a greater chance of longevity because it’s finalized and scheduled to take effect in July. That would make it tougher and more time-consuming for a potential new president to reverse course next year.

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Source: Bloomberg Law

https://news.bloomberglaw.com/daily-labor-report/new-fluctuating-overtime-rule-shields-employers-from-litigation

Caroline Humer, Timothy Aeppel | MAY 15, 2020 / 4:21 AM

NEW YORK (Reuters) - U.S. employers have cooled to the idea of testing workers for possible immunity to the coronavirus as they prepare to reopen factories and other workplaces.

Blood tests that check for antibodies to the new coronavirus have been touted by governments and some disease experts as a way to identify people who are less likely to fall ill or infect others. Italian automaker Ferrari NV has made antibody testing central to its “Back on Track” project to restarting factories.

But many U.S. companies are not planning to use them, relying on face masks, temperature checks, social distancing, and diagnostic tests for those with symptoms, employers and healthcare experts told Reuters.

Mercer, which advises companies on healthcare benefits, has surveyed more than 700 U.S. employers in industries from high tech to retail to energy, and found 8% of companies said they would include antibody tests in plans to screen employees.

Interest in antibody tests from employers has fallen in recent weeks as reports have suggested that it is too early to conclude that antibodies to the new coronavirus translate into immunity. The American Medical Association cautioned on Thursday that these tests do not determine an individual’s immunity.

“Many employers ... are realizing that antibody testing isn’t going to be a silver bullet and really isn’t going to bring them any value,” said David Zieg, a lead consultant on clinical services at Mercer.

Other employers worry about their liability if they administer and interpret such tests, or are concerned about test costs and availability. Some were spooked by a flood of tests that hit the market before being reviewed by regulators for accuracy, which has contributed to confusion over results.

A new antibody test from Roche Holding AG that has shown itself to be highly accurate could potentially help answer questions about antibodies and immunity and change corporate demand, but it has not done so yet, consultants and companies said. 

Governments, however, are interested in antibody tests, particularly if they are accurate. Britain on Thursday said it is in talks with Roche over buying tests that it could use to create a certificate of immunity once there is a better understanding of the science.

Collective Health, a healthcare technology company that has built back-to-work strategies for large companies, is advising employers to use diagnostic tests, not antibody tests.

“There has been a proliferation of low-quality antibody tests and the antibody tests themselves don’t necessarily answer any questions about immunity,” said Rajaie Batniji, Collective Health’s chief health officer.

GETTING BACK TO WORK

When General Motors Co, Ford Motor Co and Fiat Chrysler Automobiles NV reopen production next week, they intend to offer diagnostic tests to workers, not antibody tests. Officials at the Detroit carmakers said it was because it was not clear what the antibody tests show.

Amazon.com Inc’s on-site testing plan, now in development, does not include antibody testing. Those views were echoed in interviews with a handful of smaller U.S. manufacturers.

Shawn Kitchell, chief executive of Florida-based plastics manufacturer Madico Inc, is not planning to use antibody tests for his 250 employees. He questions their costs, accuracy, and the fact that the timing of tests can lead to different results, requiring multiple tries.

“How frequently would we need to test to make it safer for our co-workers?” Kitchell said.

Employers are also wary of an unregulated U.S. market for antibody tests. Since March, the U.S. Food and Drug Administration (FDA) has allowed more than 200 tests into the market without regulatory review to make them available quickly, opening the door to questionable vendors and inaccurate tests, Reuters found.

Last week, the agency set a deadline for all vendors to prove to the FDA that their tests work or remove them from the market. It has also authorized two highly-accurate tests from Roche and Abbott Laboratories, which are able to supply millions of tests per week.

One of the biggest U.S. testing providers, LabCorp, on Thursday said it was rolling out a program to make diagnostic tests and antibody tests available at workplaces.

LabCorp’s chief medical officer, Brian Caveney, said interest in antibody testing is coming from companies in coronavirus hotspots, such as New York, while other areas with fewer COVID-19 cases see diagnostic testing as more important.

As the new FDA process shows which tests work and which don’t, that will help advance research on how many people recovering from COVID-19 develop antibodies and at what level, and show if they are truly immune to infection, said Howard Koh, a professor at the Harvard T.H. Chan School of Public Health.

“Until we go through those steps, I don’t see how we can translate this for the typical person who wants to go back to work,” Koh said.

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Source: Reuters

https://www.reuters.com/article/us-health-coronavirus-employers-testing/u-s-employers-wary-of-coronavirus-immunity-tests-as-they-move-to-reopen-idUSKBN22R1O9

• by Mary Driscoll and Michael D. Watkins | May 18, 2020

Imagine that you have a new supply-chain leader starting next week. You hired her to do supply-chain transformation before the crisis took hold. But now she is joining remotely and inheriting a remote team, and her short-term, urgent priorities are very different from what they appeared to be before the pandemic. As her manager, how can you make her onboarding experience a productive one? What can you do to support her so that she’ll hit the ground running?

Earlier this month we polled leaders about their companies’ current onboarding practices. Of the 125 who responded, 75% said that their organizations were still onboarding leaders, albeit many (45%) at a lower rate than before the crisis. However, only 17% indicated that their organizations had developed systems for onboarding new leaders into remote-work environments. That’s a big gap, given that most onboarding is happening virtually now and that the stakes in quickly getting new talent up to speed have rarely been higher.

The good news is that it’s quite possible to onboard new leaders effectively into a remote-working environment. The biggest barrier is probably mindset. We are all being tested to adapt to new ways of working, and it’s no different with virtual onboarding. Here are some principles to guide you.

1. Be crystal clear about short-term objectives.

Like every leader in transition, your new hire needs to quickly figure out how to create value, and that’s even more important during a crisis. If you hired someone specifically to help with crisis management — for example, with workforce downsizing — their role and goals should be clear from the outset. But if you hired someone before the crisis, as in the case of the new supply-chain leader, they need to understand their role at a greatly accelerated pace. Continuing the example, you should clearly outline what aspects of the original supply-chain transformation role still are a priority and what has changed because of the need to deal with immediate disruptions — ideally before the new leader starts.

2. Provide a structured learning process.

To accelerate learning in a virtual context, you need to provide information in a more structured manner. Doing so requires paying much more attention to what you include in the upfront “document dump”: organizational charts, financial reports, strategy and project documentation, and the current crisis response plan. In a recent Savannah Group study of 200 senior interim executives, 95% said access to that information made them more effective in their first few weeks, especially if the organization asked them ahead of time what would be most valuable. Beyond that, you need to help your new hires get a broader and deeper view of the organization and their role in it. For the new supply-chain leader, you could schedule virtual briefings on critical issues related to the existing system and associated challenges along with ones on culture, planning, and decision-making processes.

3. Build a (more) robust stakeholder engagement plan.

Your next priority is to help your new hires identify, understand, and build relationships with key stakeholders. When onboarding is virtual, it’s essential to be even more detailed and structured here, too. Start by building a consensus internally about who the new leader’s key stakeholders are and, critically, the order in which the new leader should meet them; these things are often not apparent to new hires themselves. For the new supply-chain leader, there may be people one level down in finance and operations whose support will be crucial. Once you have identified the key stakeholders, reach out and align them on the objectives you have set for your new leader; that will maximize the value of their meetings.

4. Assign a virtual-onboarding buddy.

Quite a few companies built buddy systems into their pre-crisis onboarding processes (Microsoft is one example). And for new managers coming into remote-working organizations, a buddy is essential. Good buddies play four key roles: (1) They help orient new hires to the business and its context (2) They facilitate connections to people whose support is necessary or helpful (3) They assist with navigation of processes and systems, and (4) They accelerate acculturation by providing insight into “how things get done here.” Of course, you must take care to choose buddies who have the time, ability, and inclination to help, and you need to brief them on how they can be of most assistance. Typically, they should not be in the new leader’s chain of command; they should be peers or others with the “big picture” understanding necessary to be of real help. For the new supply-chain leader, a peer in operations could be a good choice.

5. Facilitate virtual team-building.

Helpful in face-to-face situations, a new-leader assimilation process is essential when onboarding happens remotely. This is a structured process for creating alignment and connection between a leader and their inherited team. A facilitator asks the leader and team members questions to uncover what they would most like to share with and learn about one another. The facilitator summarizes the resulting insights and uses them to guide a conversation between the leader and the team. The good news is that this process can be done effectively through video conferencing.

6. Consider hiring a coach.

Well before the crisis, research had established that transition-acceleration coaching halves the time required for new executives to become fully effective in their roles. Given that you, your team, and your new leader’s team are all dealing with the stresses of responding to the crisis, transition coaches can be especially impactful now. They are particularly helpful when they understand the organization, the company culture, and the stakeholder environment. Buddies and coaches play complementary roles in advising new leaders on the challenges they are facing and providing a safe space within which to discuss them.

As you apply these guidelines, keep in mind that effective virtual onboarding doesn’t just mean helping external hires. Employees making internal moves at a remote-working organization can face challenges that are as tough as — if not tougher than —  those confronted by new leaders coming from the outside. And in the midst of a crisis, it’s just as important to get them up to speed fast. So you should use the same approach to accelerate every new leader joining your team.

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Source: Harvard Business Review

https://hbr.org/2020/05/onboarding-a-new-leader-remotely?utm_medium=email&utm_source=newsletter_daily&utm_campaign=dailyalert_not_activesubs&referral=00563&deliveryName=DM80802

Patrick Temple-West | 17 May 2020

Like most high street retailers, UK jewellers H Samuel and Ernest Jones have been hammered by the coronavirus. Amid slumping sales, Signet, which owns the UK store chains as well as US counterpart Kay, has halved salaries and delayed handing out shares to top executives.

Meanwhile Alan Joyce, chief executive of Australian airline Qantas, will not take a salary this year, while Philip Jansen, head of BT — who has himself recovered from coronavirus — has said that half his annual salary would go to the UK’s NHS.

But fortunes are notably different at big pharmaceutical and healthcare companies that continue to pay executives millions of dollars. Boston biotech firm Moderna, which is working on a vaccine for Covid-19, paid its chief medical officer Tal Zaks a $1m retention bonus in March.

The dichotomy underscores the consequences of the pandemic for corporate leaders accustomed to multimillion-dollar pay packages. The remuneration of executives leading healthcare, biotech and life sciences businesses has mostly been maintained, while some peers in hospitality, travel and discretionary consumer products such as jewellery have seen cuts.

The sacrifice may also be limited for those executives taking pay cuts in gestures of solidarity with employees. Many companies had already awarded shares and bonuses to executives in January and February, before the pandemic set in.

In a US survey conducted from March 27 to April 7, Semler Brossy Consulting Group found that 84 per cent of businesses have taken no action on executive pay. Two-thirds of companies had already made equity grants to executives this year and 94 per cent do not plan on making changes to these awards, it reported.

Equity is usually a bigger portion of total compensation than cash salaries, says Amit Batish, a manager at Equilar, a remuneration data provider that has tracked the impact of coronavirus on executive pay.

“[Equity is] what makes executives their big bucks,” he says, adding that those remuneration packages may now be under review. For example, Equilar found that amusement park company Six Flags is determining new performance goals for bonuses that are usually paid at the beginning of a new year. With its rollercoasters parked and concerts silenced, Six Flags has cut workers’ pay by 25 per cent.

Companies that have taken government bailouts, notably in the airline industry, have been forced to slash executive pay. Budget carrier Southwest Airlines has indicated that it will limit executive pay until March 2022. Businesses that used the US government’s pay cheque protection programme are unable to cut pay for workers making under $100,000. MannKind Corporation, a California-based biopharmaceutical company that received government aid, has said it will reduce salaries only for employees making more than $100,000.

Other company executives have responded with their own pay cuts to avoid embarrassing headlines.

“There is a big reputational risk if you are furloughing people or making drastic salary cuts to rank-and-file workers and the executives are getting big pay packages,” points out Alexandra Denniston, a partner at law firm Goodwin Procter in Boston.

Reputational worry over pay stems back to the 2008-2009 financial crisis, when insurer AIG paid $165m in bonuses to executives after losses that forced a $170bn taxpayer-funded rescue. The bonuses infuriated members of Congress and the House of Representatives in March 2009 raced to pass a bill to impose a 90 per cent tax on bonuses to employees of bailed-out businesses whose gross income exceeded $250,000.

The legislation ultimately failed to advance but the 2010 Dodd-Frank Act Wall Street reforms imposed several executive pay requirements. These included a mandate that companies disclose the ratio between a chief executive’s pay and the median annual total compensation for all employees.

Some business leaders are acting now in an attempt to ward off bad publicity. Chief executives at companies that may need to reduce headcount or employees’ pay, “are going to the board or the compensation committee saying ‘cut my pay’,” says Lynda Galligan, a Silicon Valley-based partner at Goodwin Procter.

But those cuts are in pay. Executives are not handing back bonuses paid earlier this year for their work in 2019, says Marc Hodak, a partner at Farient Advisors, an executive remuneration consulting firm.

“No, we are not seeing many executives — I don’t know of any — saying ‘I got this award in February I am going to give back some of it now’. That is not happening,” he adds.

The next pay decision for companies is what to do about bonuses for 2020. Equity bonuses scheduled to be paid in early 2021 are still in flux. Most companies “are waiting to see what happens. A lot of people are bracing themselves for bonuses being pretty poor or possibly nonexistent” for early 2021, says Mr Hodak. “A lot of the boards are saying ‘let’s just see what it looks like’.”

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Source: The Financial Times 

https://www.ft.com/content/b8a29cfc-8ac1-11ea-a109-483c62d17528

Benefits providers report surge of requests for caregiving services

By Stephen Miller, CEBS | May 13, 2020

In 2019, more employers began offering caregiving benefits and resources to help employees take care of young children, elderly parents, ailing spouses or partners, or friends. Now the COVID-19 pandemic is showing the vital role these benefits can play in employees' lives, which may push employers that haven't offered caregiving services to consider doing so.

"To safely reopen the country, healthy people need to be able to go to work, and sick people need to be able to stay home," wrote Melinda Gates, co-chair of the Bill & Melinda Gates Foundation. "We know that will require scaling up testing and contact tracing. We overlook that it will require scaling up caregiving solutions, too."

She added, "It's also hard to get back to work when you're responsible for children or older adults but have nowhere to turn for safe, affordable care."

Employers Step Up

"The challenges for employee caregivers have increased exponentially as a result of the risk for COVID-19 among older and vulnerable people, social distancing requirements, and 24/7 child care responsibilities," said Candice Sherman, CEO of the Northeast Business Group on Health (NEBGH), an employer-led coalition. "Employers are trying to increase support for caregiving employees by providing more backup help, flexible working hours and access to expert resources, and some are providing relief funds to help with expenses."

In late 2019 and early 2020, NEBGH and AARP surveyed benefit managers at 119 mostly large U.S. employers. The survey, a follow-up to one conducted in 2017, found that more employers now provide paid leave specifically for caregiving—23 percent of respondents do so, up from 11 percent in 2017.

But while 61 percent of benefit managers said caregiving is a top priority for them, and 45 percent believe they are on par with similar organizations in developing caregiving-friendly benefits, almost a quarter (22 percent) see themselves as below or well below average, "a clear sign there is much room for improvement," Sherman said. 

Employees Seek Help

As employees continue to deal with the challenges of COVID-19, whether they're still at home or returning to the worksite, "employers may want to consider offering benefits tailored to employees who are providing care for their loved ones" if they are not already addressing these needs, said Kathy Barber, vice president for benefits and compensation at Saratoga Springs, N.Y.-based Ayco, a provider of financial well-being programs.

"The coronavirus has compelled some organizations to implement relevant crisis plans, but having [caregiving] offerings in place from the get-go is also important," Barber said. Doing so "sends the message that a company is taking into account the stressful circumstances its employees might be facing in their personal lives."

Adam Goldberg, founder and CEO at Boston-based Torchlight, a caregiver-benefits digital platform company, noted, "With the vast majority of Americans staying at home during the pandemic, many are not only struggling with health concerns and high stress, they are also grappling with elder care concerns, distance learning, working at home, sudden job losses/furloughs, and the death of loved ones." Torchlight has posted the free Caregiving in Times of Crisis Toolkit, with advice and information for businesses and caregivers.

Given the coronavirus crisis, it's no surprise that providers of caregiving benefits have seen a drastic uptick in service requests since the pandemic hit the U.S. in March. "During normal periods, we generally see a wide range of requests, from help with hospital bills for older adults to navigating the proper care services for children with atypical development," said Lindsay Jurist-Rosner, founder and CEO of Wellthy, a New York City-based provider of employee caregiver support services. "But in recent weeks, we've seen a dramatic shift in the priorities and needs of families."

These are the most common needs for which families have been seeking help:

• Securing home delivery for medications and groceries.
  

• Arranging telehealth appointments.
  

• Finding mental health resources for heightened anxiety.
  

• Keeping aging family members safe and helping them stay engaged while in isolation.

The biggest changes in families' needs during the pandemic, Jurist-Rosner noted, include the need for support as part of COVID-19 recovery. "We're seeing some challenges with limited rehab options and skilled nursing facilities not accepting new patients," she said. The firm has increasingly been asked to give assistance with making funeral arrangements, as well.

The Dependent Care FSA Option

Shadiah Sigala, CEO and co-founder of Kinside, a child care benefits provider in Los Angeles, encouraged employers to provide—and fund—dependent care flexible spending accounts (FSAs). Generally, the IRS limits pretax contributions (from employer and employee combined) to $5,000 per year.

"Between pay cuts and furloughs, many parents will need more affordable care" when they return to work, she wrote in a recent Employee Benefit Adviser commentary.

Additionally, parents may need to hire at-home caregivers, as many day care centers have gone out of business because of financial losses related to the pandemic. (Sigala expects a 20 percent decline in total available spots when the economy reopens.)

Funding dependent care FSAs "is an investment in your company's reboot," she wrote. "You need people working, and you want to make sure the expense of child care doesn't get in the way of that."

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Source: Society for Human Resource Management (SHRM)

https://www.shrm.org/ResourcesAndTools/hr-topics/benefits/Pages/coronavirus-pandemic-reveals-the-value-of-caregiving-benefits.aspx

WORKPLACE

MAY 8, 2020

Amid COVID-19, Let's Rethink Workplace Flexibility

BY SHANNON MULLEN O'KEEFE

STORY HIGHLIGHTS

• The coronavirus has exposed new fault lines in the workplace
• Consider how to better accommodate employees' whole lives
• Increasing flexibility will increase employee satisfaction and productivity

Here's the deal: There are always problems to be solved.

The pandemic underscored this on a dreadful scale. It quickly exposed fault lines for teams that weren't previously apparent -- with a gigantic highlighter pen. In other cases, it created new fault lines.

Whatever the case, the future is standing right in front of everyone, and even as leaders take charge of the problems they face now, they can begin to rethink how things can be even better.

They can do this by anticipating what's next to ensure managers "don't skip a beat" as they work to continue to engage their teams.

So, what's next?

Before the crisis, employees were already demanding a new focus on life.

Workplaces faced constant change before the pandemic -- and there's more to come. But one thing won't change: human nature -- it doesn't ever change that much. Gallup research shows that, before all of this, people were already demanding a renewed focus on their life anyway.

Their specific ask? That work not be just a job -- but that their employers consider their whole life.

In fact, many are literally asking questions about this issue already. In a recent Economist interview, Kristalina Georgieva, managing director of the International Monetary Fund, was asked by a reporter whether the bank would "loosen up" after all of this. In reply, she opined about some of the things she envisions could change in the future, such as more online connections and less global travel, and more flexibility in dress codes --"no jeans in the boardroom" rules change quickly when board meetings shift to joining a Zoom meeting from home.

Just as Georgieva was asked to imagine what might change, leaders can explore that idea now, too. There are some obvious things to anticipate now, like that question of workplace flexibility.

Leaders should take this opportunity to address workers' needs for flexibility that are now surfacing -- and consider how better to accommodate their lives.

3 Opportunities for Leaders to Create More Flexibility

Flexibility will look different in each workplace because culture is as unique to an organization as DNA is to a person. It's up to leaders to identify and brand the pattern of flexibility that works for their employees and their business needs. Leaders should consider the following types of flexibility that many employees are beginning to seek:

1. Flexibility in work schedule.

Certain jobs require employees to be physically present. However, there is an opportunity for leaders everywhere to examine policies to determine if they can better incorporate flexibility overall. When working mothers were asked how well their employers met their needs to change their schedule when needed, nearly four in 10 (38%) couldn't say "very well."

Addressing this problem will not only meet employees' needs but also attract a diverse pool of top talent. Female job seekers are just one example: 60% rated a greater work-life balance and better personal wellbeing as a "very important" attribute in a new job.

Flexibility will look different in each workplace because culture is as unique to an organization as DNA is to a person.

2. Flexibility in work location.

Leaders should prepare now to be asked whether their workforce can continue working from home when public health restrictions are no longer necessary.

A Gallup article published in early April indicated a shift already as, "three in five U.S. workers who have been doing their jobs from home during the coronavirus pandemic would prefer to continue to work remotely as much as possible." And from the same Gallup Panel survey at that time, 41% said they would prefer to return to their workplace or office to work, as they did before the crisis.

Long before this crisis, Gallup's Women in America: Work and Life Well-Lived report pointed out that, among employed women with children, 33% rated their workplaces "very poorly" when asked about "allowing you to work from home when needed."

Flexibility shouldn't change performance goals, but in addition to the "when," leaders should consider if the "where" for workers can change, too. Full-time remote work isn't the only solution. Leaders should reimagine what work lives can look like for their teams and ask themselves if employees could work from home more frequently if some desire to do so.

To support leaders, team managers can ask their teams how they can partner together for this effort to be successful. For some teams, this may mean different shifts of people need to be in the office at different times, or they trade off week-by-week, individual-by-individual.

For other teams, this may mean they primarily follow a work-from-home setup -- but with a regular in-person connect each week. And for other teams still, working from home may not be possible. The point is to consider what is possible as you also strive to ensure the best employee experience for your teams.

3. Flexibility to dress for the day.

Jeans in the boardroom may not be appropriate for your work culture. But leaders should consider the who, what, when, where and why relative to casual work attire that may be appropriate for their teams. In just the same way that one's workspace, or having an appropriate physical environment, is a psychological necessity for getting work done -- please note, a supportive work environment should give employees the freedom to work in the ways they feel are best for them, with spaces to collaborate or work privately, depending on the task at hand -- there is also an opportunity to consider things like your dress code. At a minimum, things like your dress code shouldn't get in the way of engaging teams, when they don't need to.

So, consider: Are there certain teams within your culture that more casual work attire makes sense for? Even in this case, there may still be a need for "business attire" days when clients are in town or for certain celebrations. The "where" a team is matters, too. Policies like this can be flexible, too. For example, when hosting clients, business dress is a "yes," when working with teammates every day it's a "no."

For still other cultures, formal attire may make sense. The point is to ensure that you are creating an employee experience that is engaging and productive.

This, by the way, is not an exhaustive list of ways to enhance workplace flexibility, it's just a start.

In the end, now is an opportunity to consider how you can be flexible within the range of variables that exist for your teams. When you consider how to increase flexibility in your work culture now, your employees (who are yearning for it) will be grateful that you did.

Ultimately, keep in mind performance outcomes, employee wellbeing and your employment brand as you make final decisions about what's right for you and your teams.

But also, make sure that "the way you've always done things" isn't holding you back from "the way you could do things" in the future -- especially if it could be even better.

Now is the time to turn the problems that have surfaced into opportunities and rethink how things can be even better in the future.

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Source: Gallup

https://www.gallup.com/workplace/310214/amid-covid-let-rethink-workplace-flexibility.aspx

May 4, 2020

Willis Towers Watson survey also reveals companies are boosting financial wellbeing initiatives

ARLINGTON, VA, May 4, 2020 — A majority of U.S. companies are making it easier for employees to access their 401(k) plans’ assets even as some companies are cutting matching contributions amid the COVID-19 pandemic. These findings are according to the latest pulse survey by Willis Towers Watson (NASDAQ: WLTW), a leading global advisory, broking and solutions company. The survey also revealed companies are increasing their emphasis on financial wellbeing resources to help workers cope during the crisis.

Many employers are making adjustments to their 401(k) plans as a result of the CARES Act, the law designed to help protect American workers from the economic impact of COVID-19. Almost two-thirds of respondents (65%) increased access to in-service distributions from participants’ 401(k) accounts while 16% either plan to or are considering doing so this year. Nearly as many (64%) are now allowing participants to defer loan repayments while 48% increased the maximum amount available for plan loans. Another 17% are planning or considering making either adjustment this year.

“These are difficult times emotionally and financially for many employees,” said Robyn Credico, managing director, Retirement, Willis Towers Watson. “Making cash available from defined contribution plans is an easy, relatively inexpensive way to provide much needed assistance to employees. This comes at a time when some organizations are having to reduce their own spending on retirement benefits. The more distressed companies cut contributions to their plans in an effort to reduce costs, similar to what we saw during the financial crisis of 2008.”

Just 12% of employers suspended their matching contributions, but 23% are either planning to or considering doing so this year. Interestingly, significantly more companies in hard-hit industries, including retail and business services, made cost-cutting changes. One-quarter of these companies (26%) suspended their matching contributions; nearly a third (32%) either will or may do so this year.

Recognizing that the economy may be hitting their employees hard, one-third of survey respondents (33%) cited supporting their employees’ financial wellbeing as one of their top three benefit priorities for the next six months. And many of them are taking action.

More than six in 10 (63%) said they promoted existing financial counseling resources, including 401(k) vendors and investment advisors for their employees; another 20% will or may do so. About half (49%) raised awareness of emergency cash sources, such as loan products, defined contribution hardship withdrawals and loans, and health savings accounts; another 29% will or may do so. Nearly one in 10 (9%) has introduced new financial counseling resources, and about a quarter (26%) plan to introduce or are considering new resources in 2020.

“The health and economic crisis caused by COVID-19 is prompting companies nationwide to step up their efforts to help employees reduce high levels of stress and anxiety,” said Shane Bartling, senior director, Retirement, Willis Towers Watson. “By promoting their existing tools and resources to manage finances and providing options to get through a period of economic hardship, employers can not only demonstrate their concern for the financial wellbeing of their employees and families but also provide meaningful assistance.”

About the survey

A total of 816 employers participated in the COVID-19 Benefits Survey, which was conducted during the week of April 20, 2020. Respondents employ 12 million workers.

About Willis Towers Watson

Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 45,000 employees serving more than 140 countries and markets. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance. Together, we unlock potential.

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Source: Willis Towers Watson

https://www.willistowerswatson.com/en-US/News/2020/05/amid-COVID-19-more-employers-are-easing-access-to-401k-assets-than-cutting-matching-contributions

New research shows the advantages of offering well-being benefits to the multigenerational workforce.

By Wendy Edgar

The rise of the multigenerational workforce brings a variety of opportunities for organizations and employees alike, especially when it comes to benefits offerings. What’s more, amid the current COVID-19 pandemic, people are looking to their companies for tools and resources to support their lives both inside and outside of work.

In an effort to better understand benefit preferences and how offerings resonate across generations, Ernst & Young LLP (EY US) conducted a survey of 1,000 employed Americans and 1,000 undergraduate college students. While the Better You research was completed before the current crisis, one thing was clear: Dedicated emotional well-being programs are significant priorities for professionals and students alike.

In light of increased interest and demand, there is an opportunity for HR leaders to provide new offerings to employees to help them better understand and manage their health and overall well-being. In both times of economic prosperity and times of uncertainty, it’s equally important that employees are equipped with knowledge and resources to encourage them to meet their full potential.

However, the research found that nearly one-third (29 percent) of the employed workforce is not taking full advantage of their company’s benefits offerings. What’s more, 37 percent of this group admit they are not sure they even understand all of the benefits available to them.

As HR and talent professionals grapple with the pandemic and the “new normal” that follows, they would be well served to recognize the evolving needs of employees today. Here are some of the top research findings that may help guide these decisions.

1. Mental health and mindfulness matter, especially for Generation Z. When it comes to workplace benefits that matter most, employed adults prioritize a competitive salary (61 percent) and a generous healthcare benefits package (60 percent). Mental health and mindfulness in the workplace have become increasingly important to Americans of all ages, as well. In fact, belonging to a company that supports mindfulness is important to 87 percent of adults.

As mental health and mindfulness continue to take the workplace by storm, ensuring that benefits are constantly evolving to meet the needs of employees is key to recruiting and retaining top talent. Healthcare benefits packages can include mindfulness practice as well as access to therapy and mental health services.

EY’s employee assistance program, EY Assist, provides counseling and live support for individuals on topics including financial support and guidance, relationship and medical issues, and mental health and well-being. This tool has been invaluable to employees as they navigate different aspects of the COVID-19 crisis.

2. Mental health days take precedence, even over traditional vacation days and time off. While almost one-third (29 percent) of employed adults do not use all of their company’s allotted paid time off (PTO), 40 percent have taken a mental health day. More than half (56 percent) of college students have done the same.

Despite workers not using all of their PTO days—with millennials stating this is because they want to demonstrate their dedication to their careers—mental health does not fall to the wayside. With workers feeling conscious about perceptions and optics in the workplace, organizations can take a top-down approach to reassure their people that taking time off can improve performance at work, instead of impairing it.

In times of uncertainty, people are less likely to take time off over fear of losing their jobs. Leaders can encourage employees to take time for themselves to focus on their well-being and have an opportunity to recharge to prevent burnout.

3. Employed adults—even those who have recently graduated college—don’t want learning to end at the classroom. Just over half of employed adults (52 percent) feel they are taking advantage of their company’s professional development opportunities, and 57 percent of employed Gen Z workers are too. Given this, HR leaders can consider providing skills-based training/credentials programs for learning future-focused skills, on-site coaching, formal continuous education offerings, and mentorship programs.

Not only does this upskilling have a positive impact on the individual, but new learnings can benefit a company too by equipping their people to better serve their clients, advance their skills, and address new business challenges. Since the start of the COVID-19 crisis, EY has seen a nearly 40 percent increase in usage of digital learning programs.

The way businesses ran just one quarter ago is different than how they are being conducted today, and the states of people’s lives are just as variable. As employees continue to look to companies for mental health and wellbeing support, HR and talent leaders have an opportunity to evolve their benefits to meet employee needs. While a challenging exercise, now might be the best time to introduce new offerings as the industry as large evolves into a new normal.

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Source: HRO Today

https://www.hrotoday.com/news/engaged-workforce/benefits/mental-health-check-2/

May 5, 2020

The Department of Labor (DOL) and other federal regulators released updates and clarifications related to employee benefits, including updates to model COBRA notices and an extension of certain statutory deadlines intended to minimize the possibility of participants and beneficiaries losing benefits during the COVID-19 pandemic. This article highlights the DOL’s recent changes and updates relating to Consolidated Omnibus Budget Reconciliation Act (COBRA).

Updated COBRA Notices

On May 1, 2020, the DOL released the first updates to its model COBRA Notices since 2014. The models are for the (i) general or initial notice (provided to employees and covered spouses within the first 90 days of coverage under the group health plan), and (ii) the election notice (provided to qualified beneficiaries within 44 days of the qualifying event resulting in a loss of coverage). The notices inform plan participants and other qualified beneficiaries of their rights to health continuation coverage upon a qualifying event. The release of these updated model COBRA notices is an important reminder for employers to ensure that plan participants receive timely and adequate information about their COBRA rights.

More Information about Medicare:  The primary update to the DOL model notice is a new Q&A section, “Can I enroll in Medicare instead of COBRA continuation coverage after my group health plan coverage ends?”, with similar content in a companion FAQ about COBRA and Medicare options.

Risk of Noncompliance

Employers do not have to use the model notices, however the DOL considers using the model notices, appropriately completed, to be good-faith compliance with COBRA’s notice content requirements. Our firm recently discussed the rapid expansion of class action litigation against employers that issued COBRA election notices that failed to follow the DOL model notice in detail. We strongly recommend that employers use the updated DOL COBRA notice forms (or some enhanced version of such notices).

If the updated model notices are not used, the employer should ensure that their COBRA notices include the most current information from the DOL. Because of the significant exposure for COBRA noncompliance, and because employers retain liability for COBRA compliance even if a third-party vendor is hired for COBRA administration, employers should have their COBRA notices regularly reviewed.

COBRA Deadline Extensions

On April 29, 2020, the DOL and Internal Revenue Service (IRS) issued a Joint Notice extending certain time frames affecting a participant’s right to continuation of group health plan coverage under COBRA after employment ends. Normally, a qualified beneficiary has 60 days from the date of receipt of the COBRA notice to elect COBRA, another 45 days after the date of the COBRA election to make the initial required COBRA premium payments, and COBRA coverage may be terminated for failure to pay premiums timely. A premium is considered timely if paid within a 30-day grace period.

The Joint Notice extends the above deadlines (and many other participant-related deadlines such as HIPAA special enrollments, claim appeals and external review filings) by requiring plans to disregard the period from March 1, 2020, until 60 days after the announced end of the National Emergency (known as the “Outbreak Period”).

Election Period Extension:  once a participant receives his or her timely COBRA election notification, the applicable COBRA deadlines are now extended until after the Outbreak Period ends. For COBRA election purposes, this means if a qualifying beneficiary receives the election notice on or after March 1, 2020, the 60-day initial COBRA election period does not begin until the end of the Outbreak Period. The participant then has another 45 days after that to make the required COBRA premium payments (that still apply back to the date on which previous employer coverage ended). The more time provided to qualified beneficiaries to elect and pay for coverage retroactive to the date coverage is lost, the greater the opportunity to game the system.

As an example, if the National Emergency period is proclaimed to end on May 31, 2020, the “Outbreak Period” will be deemed to end on July 30, 2020.  If an employee was provided a COBRA election notice on April 1, 2020, that person’s initial COBRA election deadline will be extended from the original deadline of May 31, 2020 (the 60th day from date of receipt of COBRA election notice) to a new COBRA election deadline of September 28, 2020 (i.e., 60 days from the end of the Outbreak Period).  That individual then has 45 more days to make the first COBRA premium payment for all coverage back to the original date of coverage loss.

Premium Payment Extension:  Likewise, for individuals already on COBRA, the deadlines to make required monthly premium contributions are extended until 30 days after the end of the Outbreak Period, and the guidance makes clear that an employer or health insurance carrier cannot terminate coverage or reject any claims for nonpayment of premium during this period. Such coverage termination can only occur if the individual fails to make all the required monthly premium contributions at the end of the Outbreak Period.

For example, an individual previously elected COBRA and has been paying monthly COBRA premiums since March 1, 2020. That individual does not pay applicable monthly COBRA premiums for April, May, June, or July. Under the extension guidance, the Plan must allow the individual until 30 days after the end of the Outbreak Period (or, August 29, using the dates from the prior example) to fully pay all prior months of COBRA premiums to maintain the COBRA coverage.  Health plans and insurance carriers are burdened with holding all claims submitted during the extension period to know whether coverage will or won’t be paid as required.

Employer COBRA Notice Period Extension:  The Joint Notice potentially also allows plans, plan administrators, and employers to have extra time to provide the COBRA election notice but the guidance is unclear about how that extension period applies. Until further guidance is issued to add clarity, we recommend that employers, other plan sponsors and administrators continue to send the COBRA election notices based on existing law and rely on the extension only if necessary.

Complications will likely result under this new guidance, and thus we strongly recommend working with COBRA administrators to ensure proper compliance is maintained throughout the Outbreak Period and beyond.

Participant Options for Coverage

Lastly, the DOL updated its ongoing FAQ guidance for participants to know and understand their health insurance and other benefit rights and coverage options before, during, and after the National Emergency period ends. While this guidance is directed to participants and beneficiaries, employers may also find it instructive to ensure they are providing proper coverage alternatives.

More Information

Employers can find a consolidation of almost all the DOL’s recent COVID-19 related guidance about benefits on its website. 

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Source: JD Supra, LLC

https://www.jdsupra.com/legalnews/newmodel-cobra-notices-and-emergency-98133/