Idomeneo » Newsletter – June, 2011
Newsletter – June, 2011
In this Issue:
- A Message From The CEO
- Love Child, Unfortunate Affair or Sexual Harassment?
- Alerts
- Did You Know
- Site To See
- The Reading Corner
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A Message From The CEO
I was recently invited to a screening of Pirates of the Caribbean, On Stranger Tides.
LA movie screenings are an interesting animal, and they come in a variety of shapes and sizes. It may be a screening by the studio to see how audiences will like the story, ending, characters etc. (a sort of focus group); it may be a screening to build ‘buzz’; it may be a screening for influential members of the entertainment industry (i.e. writers, directors etc.) to show off and garner an award nomination; it could be a screening for family and friends of the actors/director/producer etc.; or it could be a screening/premiere to introduce the movie with a big PR splash.
Each type of screening has its own culture and ‘rules’. As you might guess, the most rule-bound is the focus group screening. By definition, it opens the movie up to viewing by the general public prior to release, may or may not be the final incarnation of the movie that will be released to theaters, and is most at risk for pirating behaviors.
Because of all of the above, security is tight – you must wait in line at minimum 2 hours before, a thorough search of your person is conducted (these people would put the TSA to shame), and nothing with a camera is allowed, in fact, no phones of any type. For this reason, I was without my cell phone for appx. 5 hours that evening. In the general scheme of things that isn’t an issue – I am proud to say, I find it fairly easy to turn my phone off when I’m out for the evening.
So, imagine my surprise when I realized that being forced to actually leave my phone behind (even though it doesn’t have a camera…yes, I’m still in the dark ages!), bugged me for most of the night. It wasn’t that I needed my phone, it was that I might need it, and the option had been taken away from me. And, it wasn’t just me; my friends and I discussed it, and we really felt somehow limited.
We as consumers demand options – and from those options, we select the best for our needs. It is true, the internet has driven much of this behavior, but even in the days of the Yellow Pages we would browse the plumbers and their features before selecting the one that was right for us. It may just be part of our DNA, but we all want to have the best arrangement for our needs, and the ability to change that arrangement as our needs change. If you doubt that, remember how you first felt when your cell carrier said you would have to get a new 2 year contract with a termination penalty for that new, bright, shiny phone.
All this got me to thinking – how do we give our clients choice? There is a fine line between offering a variety of options, and over customizing. A company must be able to scale, or your profit margin will go right out the window when each new customer comes along and wants something other than your base offering. But, it is critical that we look at our customer’s needs and offer a range of products and services from which they can chose. And don’t forget, this is where technology comes in – how can you leverage technology so above the water line the product looks totally customized to that client, but below the water line you are following a standardized, repeatable process.
In this month’s newsletter we update you on some ‘below the water line’ items such as staying ahead of the Department of Labor on the overtime issue, and a primer on employee related insurance policies. Our Site to See will help you protect your eMail content, and the Reading Corner selection will help you recapture the excitement, passion and enthusiasm you felt when you started your business.
By the way – I found out later that one of my friends had her phone on her the whole time….aarrraaagghhh!
Vicky Brown
CEO
Idomeneo Enterprises, Inc.
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Love Child – Unfortunate Affair or Sexual Harassment?
During a recent Anti-Harassment class I was teaching, one of the participants asked about the ‘Arnold Love Child’ situation, and wondered if that constituted sexual harassment. I loved this question; first it proved that everyone was still awake and paying attention, second it brought the subject forward in a ‘ripped from the headlines’ kind of way. The class had a lively debate, some holding the viewpoint that it wasn’t harassment because it was consensual, some saying that it could not be considered consensual because he was her employer.
A few of the arguments put forth by the class:
Arnold was Mildred’s employer, and therefore held control over her keeping her job
She had a child and kept it quiet
She lied to her husband, so it was clearly just an affair, in which she participated fully
She worked there for 20 years, so it couldn’t have been sexual harassment
Clearly, there were more anti (it’s not sexual harassment) arguments than pro (it is sexual harassment) arguments. However, the one pro argument can easily hold sway over the others. The power exerted by Mildred’s employer, the power to terminate her employment, could be the reason she never said anything, lied to her husband, and as a result was able to keep her position – and no, how long she kept the position doesn’t matter. Obviously, this isn’t a legal opinion, but practically speaking there could be an argument that Arnold is guilty of sexual harassment (in addition to a few other dastardly deeds). Even if that was not his original intent, it is easy to see how Mildred’s counsel could make the argument.
The takeaway, aside from the obvious one of don’t cheat on your spouse and have a love child – keep in mind that even a seemingly consensual relationship between work unequals, can in fact be argued as sexual harassment because of the power held by the superior member of the relationship. You should make sure that if any such relationship exists in your company, the person in the superior role has no say in the other person’s assignments, promotion opportunities, compensation or other terms of employment. As a matter of best practice, they should not be in the same management line.
What do you think – was it, or wasn’t it?
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Alerts
There’s An App For That?!
Are your overtime eligible (non-exempt) employees taking both of their daily breaks? Are they taking their minimum 30 minute meal period? Are you rounding their clock in/clock out time up or down? It has always been important to know the answers to these questions, but now it is imperative.
The US Department of Labor (DOL) has advanced with the times, and now offers an app to employees for their mobile devices, to track their work time. This electronic timesheet tracks hours of work, breaks and meal periods. Once the employee enters their pay rate, the amount they should be paid on their check is calculated so that they may easily compare it against what they have actually been paid. As stated in the DOL press release, this information “could prove invaluable during a Wage and Hour Division investigation when an employer has failed to maintain accurate employment records.” The app also links to a glossary, info on wage and hour laws and DOL contact info.
A number of issues are troubling about this app in it’s current incarnation.
There is no check mechanism to ensure employees are logging in and out of the app at the same time they are logging in and out of the company’s timekeeping system. Also, it does not accommodate rounding. So, if your timekeeping system rounds (the employee is due in at 9:00am, clocks in at 8:56am, and the system ’rounds’ the clock in time to 9:00am), the total time you pay and the time the app reports will not reconcile.
Also keep in mind, using the app at work may be considered a protected activity under the Fair Labor Standards Act, so discuss the situation with your labor counsel before prohibiting use of the app, or app devices, at the workplace.
It’s Commencement Time!
Effective June 1, Florida will have a new minimum wage rate of $7.31 per hour ($4.29 per hour for tipped workers).
Effective May 16, all employers are required to use the ‘new’ I-9 Work Authorization form. You can tell it is the new one if it has an expiration date of 8/31/12. In addition, check out the list of approved documents carefully, they have been changed – and you may no longer accept expired documents.
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Did You Know
Insurance – when you started your business, was it the last thing you thought about; after selecting a name, completing the incorporation paperwork, opening a bank account, finding space, getting people to work for you, then.. “Oh yeah, I better get some insurance.” And if you are like me, that thought was quickly followed by, “What kind of insurance do I need?”, only to be displaced by “What kind of insurance is there?”.
The answer is, there are a variety of insurance types a business owner needs to consider. Some are required, but not everything will be right for every business. There are basically two types of insurance you need to understand – insurance related to the business itself, and insurance related to being an employer. This month, we will focus on employer insurance (we’ll cover business insurance next month).
The cost of employees extends beyond salary. There are a number of insurance plans required by law, including Unemployment Insurance, Worker’s Compensation Insurance and Disability Insurance. All employers (no matter how small) are required to maintain this coverage for all employees. In addition, you may wish to offer insurance as an employee benefit (such as employee medical, dental, life insurance).
Unemployment Insurance
What is it?
UI provides income assistance to individuals who have lost their job through no fault of their own.
How much will it cost?
The amount you are required to pay is determined by a number of factors, including the UI claims against your company. Different states may handle UI slightly differently, and rates will vary year to year. In California the 2011 rates are between 1.5% and 6.2% of wages paid. The state will notify you annually of your company’s specific rate.
How do I get it?
Employer payments are part of the company paid state taxes attached to payroll.
Worker’s Compensation Insurance
What is it
Worker’s Comp provides income assistance to individuals who are injured on the job, and as a result are unable to work. It pays both salary replacement as well as medical costs.
How much will it cost?
Worker’s comp rates are deregulated in California, so they vary from carrier to carrier. If you have difficulty obtaining coverage from a private company, the State Fund is a good alternative.
How do I get it?
Employers can obtain insurance in 3 ways, self-insurance (usually large employers and government agencies), private insurance from any of the state’s approved insurance companies, and the State Fund, a non profit California entity that competes with private insurers.
Disability Insurance
What is it?
Disability Insurance provides income assistance to individuals who are disabled and as a result are unable to work. The disabling event need not be work related (i.e. pregnancy).
How much will it cost?
The 2011 rate is 1.2%, however rates may vary year to year. The state will notify you annually of your rate.
How do I get it?
Employer payments are part of the company paid state taxes attached to payroll. Also note, you may also elect to purchase Short Term Disability (STD) and Long Term Disability (LTD) from an insurance company. These policies supplement the state disability program and are an excellent enhanced employee benefit.
Employee Benefits Insurance Plans
These plans provide coverage directly to the employee, and include such plans as medical, dental, life, vision and long term care insurance. All such plans are considered ‘group’ plans when offered by the employer, and are subject to various state and Federal guidelines. Your benefits insurance broker will guide you through the plan options, and help you design a package that meets compliance regulations, as well as your business needs.
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Site To See
A recordless messaging service that allows you to send an eMail that doesn’t leave a trail, cannot be forwarded, downloaded, copied, printed, saved etc. Once the screen displaying the message is closed, the content is ‘vaporized’. If you have a critical need to have ultra private conversations online, this may be a valuable tool for you. But keep in mind, the recipient also needs to have a vaporstream account. They offer a free 30 day trial, then the service costs $7.50 per month.
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The Reading Corner
Starting Something: An Entrepreneur’s Tale of Corporate Culture
Wayne McVicker
A wonderfully engaging read that chronicles the birth, and rapid growth, of a dotcom darling from the inside out. If you are just getting started, this will remind you that you are not alone in the trials you are facing. And for those of us who have been around the block once or twice, it will take you back to the heady days of start up excitement, and slaying the dragons. A good summer read.
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