How New Legislation is Fighting for Equal Pay

New legislation passed in Massachusetts will change the hiring game for HR professionals in 2018.  On August 2016, Governor Charlie Baker signed the “Act to Establish Pay Equity,” making it illegal for employers within the state to inquire about job applicant’s previous compensation or ask salary-related questions prior to a job offer.  The law was enacted to end the gender gap while paying men and women equal wages for “comparable work.” The Massachusetts law was the first of its kind at the state level, however municipalities like New York City have already instituted similar legislation, and lawmakers are working to institute it nation-wide.

In NYC, a mandate banning federal agencies from asking job candidates about benefits, wages or other compensation prior to a job offer went into effect on December 4th 2016-signed by Mayor Bill de Blasio through executive action.  Democratic lawmakers on Capitol Hill are also working to make changes on the federal level, introducing a new bill to the House of Representatives titled, Pay Equity for All Act of 2016 (H.R. 6030). The authors of the bill also wrote a letter to President Obama asking him to sign an executive order preventing all employers, not just federal contractors, from asking about salary history.

“Even though employers may not intentionally discriminate against applicants or employees based on gender, race or ethnicity, setting wages based on salary history reinforces the wage gap.  Members of historically disadvantaged groups often start out their careers with unfair and artificially low wages compared to their white male counterparts, allowing any disparities to be compounded from job to job.” 

With Obama’s term ending in less than 2 weeks, it is unlikely he will sign the executive order into law.  However, if H.R. 6030 is signed into law through the legislative process, the U.S. Department of Labor could fine employers up to $10,000 who violate provisions that include asking job applicants about their wage history.  The bill is expected to be re-introduced during the upcoming congressional session starting January 2017.

The Truth About Video Interviewing & Discrimination

video interviewing

Is it true that video interviewing will open the door for discrimination? Companies looking to incorporate it into their hiring process will often pose this question.  The topic of virtual interviews and discrimination is nothing new, yet in recent times it has reemerged as businesses look for better recruitment strategies.   For those compliant to EEO-1 and OFCCP laws, it’s important to understand how video fits into the hiring equation without risking legal trouble.

In the 1960’s and 70’s, two federal agencies [Equal Employment Opportunity Commission] (EEOC) and [Office of Federal Contract Compliance Programs] (OFCCP) were founded to enforce employment discrimination laws and ensure workers were never denied opportunity to work based on things like race, religion, disability and gender.  In 2015, a study found that 11.7% of businesses based in certain states faced higher risk of lawsuit due to workplace discrimination.  New Mexico had the highest rate with a 66% chance compared to the national average and Washington D.C. was close behind with 65%.  The reason for these particular states having an increased risk is due to local state laws that build upon federal discrimination law.

“Many of the higher-risk states observed in the study have laws that go beyond U.S. federal guidelines, creating additional obligations and risks for employers. It is important for companies, especially those operating in these high-risk markets, to be keenly attuned to any legal developments that may affect their exposures.” – Bertrand Spunberg, practice leader for Executive Risks Hiscox, USA.

Understanding the importance of keeping up with state and federal law, businesses regulated by EEO and OFCCP standards must be vigilant when it comes to introducing new interview strategies like video.  In 2010, the EEOC was asked directly to respond to the inquiry. In response, an informal discussion letter was released to the public by Carol R. Miaskoff, an Assistant Legal Counsel representing EEOC:

“The EEO laws do not expressly prohibit the use of specific technologies or methods for selecting employees, and therefore do not prohibit the use of video resumes.  The key question under the EEO laws is how the selection tools are used.”

As with in-person meetings, employers were reminded of the usual EEO standards while using video such as restrictions on asking applicants about disabilities prior to employment offers and to be sure candidates are not rejected based on visible religious garb.  Some experts believe using video platforms actually reduces the risk for discrimination.  Video provides transparency and is a source of proof when it comes to compliance.   Content remains consistent and ensures that certain candidates are not asked different questions from others.  It can also remove any chance of having off-topic discussions with applicants that could possibly lead to claims of discrimination down the road.  For OFCCP compliant employers, video provides a great system of record keeping and is effective in managing the required 2 year limit of storing applicant interview data.

When it all boils down to it, if employees are properly trained and knowledgeable of state and federal law, you can prevent legal issues.  Employees should understand exactly what is and isn’t appropriate to ask while interviewing job candidates, whether in person or virtually, and is the responsibility of the employer to make sure everyone is on the same page.  As Bertrand Spunberg suggests:

“Prevention is the best defense against lawsuits…simple preventative and mitigation measures…are essential to minimizing risk and protecting your business.”

In conclusion, hiring teams using video interviewing can follow the same process just as they would if meeting applicants in person.  The only difference is that video adds innovation and even reduces the risk for discrimination.  With the Equal Employment Opportunity Commission confirming it is a safe practice, businesses looking to use video as a new way to interview have the green light!

Virtual Interviews: The Future Of Recruitment

With 2017 right around the corner and job opportunities at an all time high, hiring managers are looking for better ways to improve recruitment and fill jobs fast.  Virtual interviews, also known as video recruitment, is a new trend companies are beginning to use to streamline the interview process, cut costs and speed up time-to-fill rates.  Although not a new method, more businesses are seeing promising potential to incorporating it into the hiring process for the benefit of both applicants and employers.

Video Is King Of Internet Traffic – study conducted by Cisco in 2014 estimates that 70% of internet traffic comes from video streaming.  That number is estimated to skyrocket to 90% by the year 2020.   Another source reports that 500 million people watch Facebook videos per day, while a whopping 10 billion videos are watched on Snapchat each day.  Recruiters can take advantage by creating and posting videos to free platforms like Facebook, Snapchat, Twitter and LinkedIn to reach that major source of traffic and get your videos noticed.  Video content can range from job opportunity promotion to fun and creative videos showcasing company culture and industry.  Regardless of the type of videos you choose to make, chances are high they will be viewed and shared among a world-wide audience, attracting job seekers who are best suited to work for the company.

Virtual Interviews

Source: QZ.com

 

Prerecorded & Live Video Interviews – There are two methods companies use to conduct interviews using video: Live and prerecorded.  Live interviews enable hiring teams to talk with job candidates in real time as if it were an in-person interview.   These sessions can be recorded and sent to team members to review at a later time and can be a convenient way to include busy coworkers who are a crucial element in the hiring process.  Prerecorded interviews allow applicants to answer questions posed by the employer on video and provides recruiters the flexibility to evaluate submissions on their own time.  Talent Acquisition analyst Kyle Lagunas of market research firm Brandon Hall Group commented on the benefits of incorporating video citing, “The amount of time recruiters spend scheduling and executing screening calls is exorbitant …when you automate that — especially with on-demand, so videos can be recorded and viewed at their leisure — it frees them up from spending time on the phone trying to chase candidates … [and] hiring managers [down] and get everybody’s calendar synced up just for that first call.”   

Save Money & Time – General Electric (GE) provides a great example of how virtual interviews can cut company costs and save time.  GE implemented video interviewing to their hiring process for hard to fill positions.  GE is stationed all around the U.S. and were spending a fortune on travel costs for candidates who lived far distances but were highly sought after.  Video gave them the ability to meet job candidates no matter where they were physically and hire top talent easier while saving money.  Virtual interviewing was initially implemented only for the healthcare headquarters,  but with the high demand for technology and promising results, they decided to make it a company-wide standard for interviewing new candidates. GE’s Global recruitment technology leader Shahbaz Alibaig said, “Getting the candidates and the hiring managers in one location can take weeks and months to schedule. So it [wasn’t] just the cost but [also] the cycle time of interviews which [was] a challenge.” 

Virtual Interviews can be great for businesses looking for cost-effective hiring strategies that also assist in sourcing top candidates for hard to fill positions.  Video adds innovation and forward-thinking aspects to the hiring process that will impress candidates and leave them with a lasting impression.  With video serving as the king of internet traffic and tons of free (and paid) platforms available, any company regardless of size and budget can take advantage of video and get noticed. With major companies like GE paving the way,  it is only a matter of time before competitors realize the benefits and jump on trend.  Stay one step ahead and become the first in your industry to implement video–because virtual interviews are the future of recruitment!

Yelp or Yikes?!

They say word of mouth is the most efficient way to spread consumer opinion about a product, but in the digital age, this is slowly passing the torch. Now that we have a tiny box called a smartphone that can tell us anything and everything at the tap of a finger. There is no reason to shop at a boutique with bad sales people, eat mediocre food, or sleep in a hotel that has ever had bedbugs, right? People can easily read reviews to ensure that this does not happen.  Smartphone and website applications such as Yelp, Trip Advisor, Amazon, and even Facebook make it easy for both satisfied and displeased consumers to publish their opinions to the web, designed to inform and assist prospective consumers in choosing the best services and products. However, this can be a double edged sword for some businesses, as unlimited feedback can result in making or breaking a company’s reputation.

Review sites are a platforms that allow customers to express opinions about a particular restaurant, store, hotel, or other type of business for other internet users to see.  These are becoming increasingly easy to use, and therefore increasingly popular.  When ordering an item from Amazon, reading the reviews can be imperative to ordering the correct size or style to meet specific needs. When looking to try Indian Cuisine for the first time, reviews can be important to decide on an authentic restaurant with fair prices.  According to BrightLocal’s consumer survey, 74% of people believe that having positive reviews makes them trust a business, so if a particular place has shining reviews on their page, it is almost sure that business is booming. On the contrary, isolated incidents or small mistakes that angered a customer all the way to Yelp reviews can be the first step to a swift downfall.

When a smartphone user is traveling or looking for something new, sites like Trip Advisor can be key to searching for a business that is perfect for specific needs.  If a person is trying to be frugal, these sites can help them find the “best bang for their buck” within a few miles of their current location. Everyone is guilty of doing some research for “best chicken parm in New York City” and trying out the first menu that is shown on their iPhone screen, but there are extensive weaknesses that come with such a technology.

The major flaw in the concept of sites that allow free flow of reviews is that they ignore the fact that every person is entitled to their unique opinion. It is human nature to “judge a book by its cover” but when it comes to online reviews, consumers are surrendering to the influence of people they have never even met and according to BrightLocal, 84% of people trust them just as much as a personal recommendation.  A reader does not know the personality, mood or taste of the reviewer, therefore the reader could be influenced by misinformation stemming from an emotional customer, rather than legitimate experience that would have resulted in an opposite experience. For example, a person researching reviews for hotels could decide against one after reading a negative review about the indoor pool not being clean – but unbeknownst to the reader – the reviewer was a total germaphobe.

A company with a strong Marketing and Human Resources team can normally defend itself against unhappy clients. There will always be dissatisfied clients, but it’s about how the company reacts and attempts to fix things that keeps their image positive. With free flow of customer opinions over the internet, companies are at the mercy of accusations, negative reviews and unhappy customers. Firstly, they would have to go out of their way to view the negative connotation pertaining to their company.  Also, their arguing with consumers via internet comments could be looked upon as unprofessional and even nasty when it comes to the public eye.

On the contrary, companies can bribe customers to write positive reviews even if they had a bad or average experience. For example, at many restaurants, a customer must like the company Facebook page before they can access free wifi or waitresses will offer a free drink for anyone at the table that can present a positive Yelp review. 7 out of 10 people surveyed will leave a review when asked. This means that even some positive reviews are giving customers the wrong idea about a company and affecting business positively, when in reality, some changes may be necessary. Amazon recently banned customers from accepting money for reviews. The team at Amazon understands that people will write positive things for a bit of bribery, so they are stopping this problem in order to have raw, real reviews of their products.  Hopefully, other review sites will follow in these footsteps and control comments in order to save certain business reputations.

Consumer survey and review websites are changing the way consumers select who they do business with as a whole. Whether reviews are positive or negative, they will take part in the company’s public reputation and persuade them when it comes to where new customers will take their business. Review sites can be a double edged sword for businesses; a positive business review can generate unlimited business, but a negative review from an emotional customer can deter possible customers from ever trying something new.

When looking for a new place to visit, make sure to read carefully and weed out bogus comments on review websites. Read as many reviews as time allows and take note of whether they were all in a certain timespan.  Also, owners and employees change often (especially if customers are unsatisfied) so sometimes it is worth it to give a business a chance despite a few bad reviews. In conclusion, personal experience is the best indicator of how successful a business deserves to be; maybe even write a helpful and detailed review of your own!

Written By: Alex Goldfarb

Department Of Labor Overtime Law Delayed By Federal Judge

DOL

 

  • New Department of Labor’s overtime rule, set to go into effect on December 1st, 2016, has been delayed by a Texas Federal Judge’s ruling on November 22nd, 2016

In October we reported the legal obstacles facing the (DOL) Department of Labor’s new overtime rule, which was set to go into effect December 1st, 2016, and has now been delayed by a Texas Federal Judge.

21 U.S. states and dozens of business groups including the U.S. Chamber of Commerce launched a lawsuit to stop the new rule, which included an increase to the payment threshold of overtime for certain employers from $23,660 to $47,476 per year.  An automatic increase to the threshold would also occur every 3 years, beginning in 2020. Advocates pushing to stop the new change cited it would cost private employers millions of dollars and increase government costs by millions.

On November 22nd, 2016, Amos L. Mazzant III, a Federal Judge in the Eastern District of Texas, sided with the plaintiffs and issued a nationwide preliminary injunction, citing the DOL overstepped its authority by raising the threshold so high, and criticized the 3 year increase.  He also ruled the DOL, “exceeds its delegated authority and ignores Congress’s intent by raising the minimum salary level.”

“The DOL’s role is to carry out Congress’s intent. If Congress intended the salary requirement to supplant the duties test, then Congress, and not the DOL, should make that change.” 

The Federal Judge’s ruling delays the December 1st effective date indefinitely, and employers are not required to implement the changes as of yet.   It is unclear if the rule will be thrown out completely, or if certain parts will be salvaged and postponed to a later date.

New Form I-9 Released For Year 2017 & Beyond

Form I-9

On November 14th, 2016, the USCIS (United States Citizenship and Immigration Services) released a revised Form I-9 document to be used by all employers in 2017.  The new form can be used immediately, but businesses are not required to utilize it until January 21st, 2017.  The Form I-9 confirms the identity and work eligibility for all individuals who are hired by employers in the United States.  Federal law requires that all employers recruiting, referring for a fee or hiring new employees complete the form.

Some of the changes for the new version include:

  • Section 1 now asks for “other last names user” rather than “other names used”
  • Addition of prompts ensuring the correct information is entered
  • Ability to enter multiple translators and preparers
  • Supplemental page for the preparer/translator
  • Dedicated area to include additional information rather than adding it within the margins

Form I-9 versions dated 03/08/2013 are valid for use until the new date in January 2017.

To download the new form, click here.

 

Staying compliant is tough without an Applicant Tracking System that can automate, organize and manage the process. 

Request a demo and receive free Onboarding for the life of your contract when you sign with Pereless Systems!

Free Onboarding

 

 

Applicant Tracking Meets Onboarding – The Benefits

Onboarding Help

Applicant Tracking Systems (ATS) are best known as a Human Resource tool for automating job applications and providing a database of candidate information.  Yet, with technological innovation and change, the ATS industry has started to transform their products into dynamic recruitment and hiring platforms that do more than just record keep.  A key element that is becoming more frequently added to ATS functionality is (Onboarding) capability.  Onboarding helps employers welcome new hires, transition them to new employees quickly and train them more efficiently.  Coupled with an Applicant Tracking System, Onboarding can simplify the hiring process for companies and provide a smooth, convenient and positive experience for incoming employees.

Onboarding + Applicant Tracking = Easy Hiring & New Employee Success!

1. Centralized, Cloud-Based Portal For New Hire Documents –  All documents that are required for review and/or signature by new hires can be uploaded as an electronic document into the Onboarding portal. This provides HR a centralized database where they can upload, organize and assign documents to new hires easily.  Employers can track completion progress and manage documents at any time, using any device.

2. New Hires Can Complete Tasks & Sign Documents Electronically – New hires login to a secure Onboarding portal to read and sign important documents electronically using a desktop or mobile device. This gives new employees more time to focus on training and preparing for their new role at the company.

3. Welcome Forum & Resource Center – New employees are anxious to learn more about their new place of employment, and according to a recent study, have a better chance at long-term success if properly trained.  Employers can use Onboarding as a welcome mat plus an informative portal that provides new hires with the tools they need to begin learning.   Training videos, employee handbooks, company benefits, reading materials and social media links can all be included which are accessible prior to the employee’s first day.  New hires will gain a further appreciation of workplace culture and values with a positive learning process that helps them achieve company goals in the future.

4. Communicate With The Company Team – A vital feature of Onboarding technology is team communication.   Employers can create and assign tasks to specific team members in preparation of a new employee’s arrival.  Send reminders and keep track of completion progress to make sure all team members are on the same page, and your new hire has everything they need on day one!

According to a recent study, new employees who experience a poor Onboarding experience are 8 times more likely to become disengaged at work. These same employees are 11 times less likely to refer individuals to their workplace.  Request a demo below to receive a quality Onboarding portal free when you sign with Pereless Systems 

Onboarding

Legal Challenges For New Overtime Rule

overtime

The Department of Labor’s new overtime rule for employers is facing legal obstacle after 21 states filed a motion to temporarily halt the change; set to go into effect December 1st, 2016.  Opponents argue the new rule violates the 10th Amendment of the Constitution, resulting in an invasion of state sovereignty.  Supporters for the rule expect everything to go as planned, despite the legal challenges that are assumed for the sole purpose of postponement.

The new overtime rule increases the overtime payment threshold for exempt workers from $23,660 to $47,476 per year.  That translates to a $913 per week from $455.   Simply put, certain employers will now be legally required to pay employees time and a half if employees work over 40 hours in a week and make less than $47,476 a year.  With the DOL’s new change, the FLSA overtime exemption for employees working in administration, executive, and professional niches was  removed.  The rule is expected to affect 4.2 million American workers.

Some employers are skeptical of the new rule, claiming it will result in decreased hourly wages and work schedules to account for the new change.  Others predict employers will give pay raises equaling to or above the new limit in effort to avoid paying overtime.

With recent legal challenges in place, it is unclear if the effective date will be postponed to a later date.

 

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OSHA Anti-Retaliation Provisions Delayed

OSHA

For a second time this year, OSHA (Occupational Safety & Health Administration) has postponed the effective date for anti-retaliation provisions in handling employee complaints under the Affordable Care Act (ACA).  A recent legal challenge in the U.S. District Court for Northern District of Texas has resulted in the delay.  The new date is set for December 1st, 2016.

Within the ACA, employers are forbidden to retaliate against workers who report alleged violations of the act’s health coverage reforms.  Under the new OSHA provisions, certain employers will be required to do the following:

•    Educate employees of their right to report work-related injury and illness without fear of retaliation
•    Include a guide employees can reference for reporting work-related injuries and illnesses without discouraging them from reporting
•    Retaliation against employees for reporting alleged fault is prohibited

Incentive programs pertaining to safety-related activities are allowed, however employers must be careful not to create programs deterring workers from reporting injuries or illnesses (i.e. rewarding employees for low reporting rates).  Regarding automatic post-injury drug testing, unless employers have a reasonable suspicion and are following state or federal law, this can now be viewed as a retaliatory action.

 

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New EEOC Federal Law Changes For Employers

legal-new-law_shutterstock_178151513The Equal Employment Opportunity Commission (EEOC) announced a new Federal Law, requiring most private employers with 100 employees or more to submit summary pay data and total hours worked for the year as part of the annual EEO-1 report.  The new law is designed to help avoid pay disparities based on gender, race, or ethnicity.

What To Expect:

  • The new annual deadline for EEO-1 reports will now be March 31st, 2018.   (Originally September 20th).  EEO-1 reporting will not be due in the 2017 year.
  • The new “Workforce Snapshot Period” will be October 1st – December 31st.  (Originally July 1st – September 30th)
  • Federal contractors and subcontractors with 50-99 employees will not be required to submit wage summaries on their EEO-1 reports
  • Per usual, employers with 99 employees or less, and Federal contractors/Subcontractors with 49 employees or less, are not required to complete an EEO-1 report.
  • View the newly updated EEO-1 Form here

 

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EEOC