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EL Today Masthead
August 25, 2009

IN THIS ISSUE:

 

1. Feature Story: Cut Staffing Costs Without Cutting Staff


2. Cathie's Corner: Applicants Are People, Too


3. Overtime Policy Has Disparate Impact On Employees With Disabilities

4. Free Report: U.S. Supreme Court's 2008-2009 Employment Law Decisions

5. HR Soapbox: New Website Creates Total Transparency In The Hiring Process…Or Does It?

AHI's We Couldn't Make This Up 

Individuals seeking information about their unemployment benefits on the Brazilian Labor Ministry's website were forced to type in the words "bum" and "shameless" as passwords. The Labor Minister blamed the tasteless prank on a private company with which the Ministry contracted to maintain the site's security. The contract with the company has since been terminated, and the offensive words have been deleted as passwords.

1. FEATURE STORY:
WIRELESS DEVICES TIED TO ILLEGAL PAY PRACTICES

 

Although some pundits say that the economy is starting to turn around, things are still pretty tight for most organizations. Everyone is looking for additional ways to cut costs. Since payroll is the biggest expense in many organizations, it makes sense to direct your attention there.

 

Here are some ideas that law firms and other companies are successfully using to cut their staffing costs. See if you can adopt one or more of these cost-cutting measures for your organization.

  • Defer start dates: After recruiting the cream of the crop, some law firms are telling new hires they won't be able to start work for six months or a year, often without any pay until the start date. It's a risky move for both parties, though: The deferred hires might very well accept another offer during that time, and the employer might decide, after the waiting period is up, that it can't afford to add any new hires after all and withdraw the job offer altogether. On the other hand, it's a good safety net for new hires, knowing they have a reasonable chance of employment waiting for them while they take advantage of the time off to travel or volunteer, and employers know that, if things pick up economically in a year's time, they've got some qualified new hires on hand, raring to work.

  • Offer reduced-pay sabbaticals: One major law firm reportedly offered certain lawyers the option of taking a one-year sabbatical, during which they would be paid one-third of their regular salary and keep their medical benefits. The firm did not guarantee that these lawyers would definitely be able to return to work at the end of that year, but it left the door open for that possibility. Meanwhile, because the sabbatical was deemed "unrestricted," participants were free to seek employment elsewhere during that time.

  • Prohibit non-exempts from working overtime: Paying workers time-and-a-half quickly adds up to a major expense that is not always necessary for smooth business operations. If overtime is occasionally necessary, make sure workers are required to obtain permission from their manager before working overtime. (Remember, however, that you are required by law to pay workers for time worked, whether or not they received permission first.)

  • Implement furloughs: This seems to be a favorite cost-cutting measure amongst local, state, and federal government agencies. For an in-depth look at the payroll aspects as they relate to the Fair Labor Standards Act (FLSA), see our ELT article from 5/19/09.

2. CATHIE'S CORNER: APPLICANTS ARE PEOPLE, TOO


Whether you agree that the current economic crisis is winding down, I think there's one thing we can probably agree on: There are a lot of people out of work, which means there are a lot of people applying for jobs. If you post an opening, you're likely to get far more applications than you have time to process....Continue the story. 

3. OVERTIME POLICY HAS DISPARATE IMPACT ON EMPLOYEES WITH DISABILITIES  

 

A policy denying the opportunity to work overtime to anyone placed on light or limited duty has a disparate impact on employees with disabilities because they are more likely to be assigned light duty, said the Equal Employment Opportunity Commission (EEOC)....Continue the story.

4. FREE REPORT: U.S. SUPREME COURT'S 2008-2009 EMPLOYMENT LAW DECISIONS 
 

Check out the Free Report, "U.S. Supreme Court's 2008-2009 Employment Law Decisions," which summarizes each of the Supreme Court's eight employment-related decisions issued during its 2008-2009 term, and what they mean to employers. The rulings cover everything from reverse discrimination, to age discrimination, to retaliation, to pregnancy discrimination, to benefits, to unions and mandatory arbitration agreements.

5. HR SOAPBOX: NEW WEBSITE CREATES TOTAL TRANSPARENCY IN THE HIRING PROCESS...OR DOES IT?

 

Imagine if a job candidate could be a fly on the wall inside an organization, privy to all kinds of "insider" information — employees' salaries, the day-to-day work environment, even the exact questions they'll be asked during their upcoming interview...Continue the story.

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