Thursday, November 19, 2009

WSJ: Showdown Set for Health Bill

Editor's Note: The following article ran in the Wall Street Journal on Thursday.

WASHINGTON -- Senate Majority Leader Harry Reid set the stage for a climactic debate in the Senate over health care by unveiling a 10-year, $848 billion bill that would extend insurance to 31 million Americans without coverage.

Mr. Reid's proposed legislation, 2,074 pages, is the Senate's answer to a bill that narrowly passed the House Nov. 7. The two bills have differences on taxes, abortion coverage and a public-insurance plan and would require considerable work to reconcile if Congress hopes to pass some form of health care overhaul -- the centerpiece of President Barack Obama's domestic agenda.

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Wednesday, November 18, 2009

Tim's Talking about GINA, Swine Flu and Last Month's Poll Results

Drop Shadow Global Conversation
DON'T LOOK NOW ...

Just when you thought you've experienced everything in the world to worry about complying with in operating your business you get GINA!

 
The Genetic Information Non Discrimination Act (GINA) will go into effect on November 21, 2009. 


This law will prevent discrimination against individuals based on genetic tests.  It of course requires a new poster.

 
This is good news for the poster companies.

DARN THAT SWINE
....

Can you operate with 25%-50% of your employees off work with the flu?  That's a worry of the H1N1 crowd.  But did you know that absences due to seasonal influenza may qualify for unpaid leave under FMLA?  And that making inquires about an employee's health condition or that of a family member can cause ADA legal problems?


So what's the answer?
 

The pros say encourage employees to stay home if they are sick;  leave work and go home if they get sick;  wash your hands a lot;  sneeze in your armpit;  cross train employees;  and minimize face to face contact.

Feel better?

MANUFACTURING MYTH
...

America no longer makes things.  You hear this all the time.  In a previous "Corner Stool" we put some numbers together to dispute this myth.

Now consider these: According to the 2009 Economic Report of the President:

  1. Total manufacturing output in the U.S. hit and all time high in 2007.
  2. 2007 output was 8% higher than 2000,  69% higher than in 1990,  81% higher than 1987,  184% higher tan in 1980 and ...
  3. Manufacturing output as measured by the
    Industrial-Production Index was 213% higher in 2007 than it was in 1967!
          
The lesson here is that manufacturing as a share of gross domestic product is down 30% since 1987 not because of less manufacturing but because of substantial growth of construction and services.

OVERLOAD IMPACTS OFFICE PRODUCTIVITY
...
The average worker that sits in front of a computer all day will:
  • Check e-mail 50 times
  • Instant message 77 times
  • Visit 40
    web-sites
  • Take 24 minutes to get back to work after checking e-mail
  • Score 10
    points lower on IQ tes
    t
They call this person an "electronically distracted worker" I call it crazy.
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Editor's Note: While those procrastination statistics may be alarming, there are two sides to the argument.

This column in Wired magazine argues that people actually are problem solving when they mindlessly wonder the Web.

Now I don't know about the statistic with the IQ test, I can't find where Tim got that one, But there's at least some food for thought.

Tip of the Month: Understand Your Billing Rate

The computation of the hourly billing rate that Staffing Services charge can sometimes be misleading.  Consider these examples:


Example 1: 
  • Pay rate = $10.00/hour
  • Staffing service quotes a 50% markup of the pay rate
  • Final bill rate is $15.00/hour (10x 1.5) simple enough right?
 Example 2:
  • Pay rate = $10.00/hour
  • Staffing service quotes a 33 1/3% markup
  • Final bill rate is $15.00/hour
How can 50% and 33 1/3% produce the exact same bill rate you ask?  Semantics. . . . or as we use to say in the 60's, Tom Foolery!


calculator
The first example utilizes a pure mark up formula.  The second utilizes a retail marketing gimmick to make themselves look cheaper. 

Instead of marking up the pay rate by 33 1/3% (which would yield a $13.33/hr bill rate) they take the difference between the bill rate ($15.00) and the pay rate ($10.00) in this case $5.00/hour and divide that in to the bill rate ($5.00 / $15.00) to get the 33 1/3% markup.


Example 3:
  • Pay rate = $10.00/hour
  • Staffing service quotes a markup of 20% plus burden costs
  • Final bill rate = $16.00/hour
How can this be you ask? 
The key word here is burden. Burden is staffing service lingo for payroll tax costs.

So in this case the staffing service is trying to sell you that their payroll tax cost is 40% or $4.00/hour.  This is highly unlikely.  It really means more in their pocket.



What does this all mean? You request quotes from three staffing companies and the response if
20%, 33 1/3% and 50%.  A no-brainer right?


Now what's the tip?
 

Simple, when you send out for bids from staffing services request specific pay rates along with the  corresponding hourly bill rates.  Don't solely base your pricing decision on a "mark-up" number because as you can see they are computed differently.  You want to compare apples with apples.


And for the record, Ryan Staffing uses the first example.  We are a no tricks or gimmicks supplier.

Tuesday, November 17, 2009

SHRM Talks With Senate

On November 10, SHRM member Elissa C. O'Brien testified at the Senate Subcommittee on Children and Families hearing titled, "The Cost of Being Sick: H1N1 and Paid Sick Days".  Ms. O'Brien is Vice President of Human Resources at Wingate Healthcare in Needham, MA, and a member of SHRM's Special Expertise Panel on Labor Relations.

In her testimony, Ms. O'Brien shared the HR perspective with senators who are considering crafting a federal protection for workers during this winter's flu season.  She explained the efforts SHRM has undertaken to educate its 250,000+ members on H1N1 preparedness and described her employer's workplace flexibility and leave policies.

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Society for Human Resource Management: Congress should vote 'No' on HR 3962

The U.S. House of Representatives passed H.R. 3962 on Nov. 7. And the national chapter of the Society for Human Resources is asking its members to write their Congressman to vote "No" on the current bill.

health care reform


Here's what SHRM had to say about the bill in it's current form:

"SHRM is committed to achieving comprehensive health care reform that provides high quality, affordable health coverage to all Americans in a manner that strengthens the voluntary employer-based system.  HR professionals realize that the current system, which has health care costs rising faster than inflation, is unsustainable. That  is why SHRM has supported efforts to control costs." 

To meet this goal, SHRM supports public policy that achieves the following:

  • Strengthens and improves the employer-based health care system;
  • Encourages greater use of health prevention, promotion, and wellness programs;
  • Strengthens the Employee Retirement Income Security Act (ERISA) to ensure a national, uniform framework for health care benefits;
  • Reduces health care costs by improving quality and transparency;
  •  Ensures tax policy contributes to lower costs and greater access.
Here's a list of Northeast Ohio's Congressmen (click name to get to their electronic contact form):

Senators:
Sherrod Brown
George Voinovich

Representatives:
Charles Wilson District 6
Tim Ryan District 17
John Boccieri District 16
Dennis Kucinich District 10
Marcia Fudge District 11
Steven LaTourette District 14

Friday, November 13, 2009

CDC: 22 Million Reported H1N1 Cases

Editor's Note: The article ran in The Wall Street Journal Nov. 13 issue.

An estimated 22 million Americans have been sickened with swine flu since April and 3,900 have died, the Centers for Disease Control and Prevention said Thursday, as shipments of vaccine fell behind government predictions.

The sharply higher numbers of illnesses and deaths are the result of the CDC trying to better quantify the new H1N1 flu's impact, authorities said, and do not mean the disease has become more virulent. Most cases have been mild; of those sickened, 98,000 have been hospitalized, the CDC said.
 
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Great Interactive Graphic from WSJ.com on flu spread

Thursday, November 12, 2009

Economists say unemployment may hit 12/13 percent

Editor's Note: The following is an exceprt from the WSJ.com blog Real Time Economics.

(Economist David Rosenberg) points out that beyond those who are counted as officially unemployed, “there are the record number of people [about nine million] who got furloughed into part-time work,” plus many more who have dropped out of the labor force altogether.

Mr. Rosenberg’s call comes at a time when despite glimmers of improvement in the nation’s job market (such as a slowdown in new unemployment claims and a small uptick in job openings), unemployment continues its sharp rise. The U.S. unemployment rate hit 10.2% in October, according to the Labor Department, double the 5% rate seen just last year and the highest level since 1983.
Other economists, such as Jan Hatzius, chief economist at Goldman Sachs and Nouriel Roubini, a professor at New York University, have floated the idea that unemployment could hit or even surpass 11%, but Mr. Rosenberg is the first to predict an unemployment rate as high as 12%-13%.

“If it weren’t for the drop in the labor force participation rate… the unemployment rate would be testing the post-WWII high of 10.8% right now,” he writes. “The business sector has a vast pool of resources to draw from before they start tapping into the ranks of the unemployed.”
“Hence the unemployment rate is going to very likely be making new highs long after the recession is over — perhaps even years,” he writes. “This will undoubtedly be a major political issue.”

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Tuesday, November 10, 2009

WSJ.com: U.S. Factories Are 'Grossly Underutilized'

Editor's Note: The following article ran on the Wall Street Journal Web site on Monday Nov. 9.

U.S. manufacturing is finally on the mend — though as many factory bosses are quick to point out, when you’re in a hole this deep, everything looks up. That’s certainly true of capacity utilization.

The numbers show U.S. factories remain “grossly underutilized,” writes Daniel Meckstroth, chief economist of MAPI/Manufacturers Alliance, in a new report. Capacity utilization, which includes manufacturing, mining and utilities, has been hit hard in this recession, reaching 70.5% in September after being in the 80s for years. In the manufacturing sector, factory utilization for September ticked up to 68% — rising from a post World War II record low of 65% in June. Capacity utilization for manufacturing dropped like a rock in this recession, falling from 79% in December 2007. The problem, as Meckstroth notes, is that while any movement upward is welcome, there has to be a lot more growth to simply soak up all those idle machines and assembly lines.

Looking beyond the headline number points to another sobering reality: Some industries were hit much harder than others — and therefore have further to go to get back to more normal utilization. Capacity utilization in primary metals plunged from 86% in December 2007 to 55% currently, mainly because of collapsing demand for some types of steel, while the utilization rate in the computer and peripherals industry fell to 58%, down from 83% in December 2007.

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Friday, November 6, 2009

Wal-Mart's sick leave policy spreading H1N1?

The National Labor Committee released a report earlier this week that said Wal-Mart's sick leave policy may lead to the spread of H1N1 this flu season.

Punishing workers for taking sick leave puts Wal-Mart on track to be a major spreader of swine flu this fall.  The retail giant gives workers demerits and deducts pay for staying home when they are sick or to care for a sick child.

In interviews with Wal-Mart “associates” at stores across New York State, employees confirmed that they had no choice but to work sick.  One Wal-Mart employee from a supercenter explained:  “Plenty of girls are coughing their brains out.  But they cannot go home because of points.  Everyone comes in sick.  You cant stay home and God forbid if you leave early.”  “Associates” –including food handlers working in the grocery, meat and even deli departments—are routinely coming to work with the flu, conjunctivitis, fevers, strep throat, diarrhea and vomiting.  It is only when an employee is coughing too loudly and violently that he or she will be transferred from the food section to another department, where the sick worker will still be interacting with customers.

An experienced worker at a Wal-Mart discount store similarly confirmed that “people are coming in sick all the time.”  In fact, just last week several cashiers at her store came to work with flu-like symptoms, only staying home when they were so sick it was impossible for them to work.  (The most contagious period for swine flu is at the beginning of the illness.)

The Centers for Disease Control and Prevention (CDC) is strongly recommending that employers “advise workers to be alert to any signs of fever and other signs of influenza-like illness before reporting to work every day, and notify their supervisors and stay home if they are ill.

Thursday, November 5, 2009

Government Goes Facebook

Are you on the always growing social networking site Facebook? No, well your government is.

I happened to be on my Facebook, and saw a post from a colleague/fellow Ohio University alum who works at the Associated Press stating he was working on an article on the White House's Facebook Live feed.

It appears that Facebook users can go onto this page to watch events at the White House, and contribute to a national chat.

My question is, how many people over the age of 30 use Facebook?

Marketing research group iStrategy Labs reports that Facebook saw significant growth in the 35-54 and 55+ demographics between 2008 and 2009.

The 35-54 demo grew from about two million in Jan. 2008 to about seven million in Jan. 2009, an increase of 276 percent, according to the report.

The 55+ demo grew from 324,000 to 950,000 in that same time frame. But as Baby Boomers continue to move into retirement, will they embrace the Web to fill free time?

Also, if you're target demographics are 18-34, then Facebook kills with over 28 million users in those demographics.

Going on my post earlier today, it's got me thinking about taking Ryan Staffing's electronic marketing and advertising to that platform.

Are you buying newspaper ads?

For the past six months or so, we have increased our usage of new media in advertising job openings.

We use our Constant Contact e-mails, Craigs List and our Twitter page to get the word out on job openings. We updated our Google information and constantly put new information on this blog so Ryan Staffing becomes more attractive on Google searches.

But are tactics like this responsible for the demise of newspapers?

Newspaper publishers are running out of costs to cut, and they need to show some real ad-revenue gains soon.

Executives from major publishing chains have clung to a slight moderation in their ad revenue's year-over-year rate of decline from quarter to quarter this year as a sign of improvement.

But that probably has more to do with the mathematics of easing comparisons to last year's economic decline than it does with any actual improvements in this year's ad performance.

The reality is that newspapers are suffering severe declines in ad revenue this year on top of the double-digit percentage declines they suffered last year.

Compared with the first half of 2009, their recent performance doesn't appear to be getting much worse, but it has yet to show any real recovery.

-- Wall Street Journal
Now, because I play on both sides of the court (I am a reporter at a newspaper who's parent company currently is in bankrupcy court), I see the issue this way.

Newspapers always thought they were community institutions. They sponsored Turkey Trots, 3-on-3 tournaments, picnics and their buildings were supposed to be like city halls and court houses.

So they never changed.

With that in mind, why wouldn't companies with dwindling advertising revenues do things more efficiently with direct e-mails and more searchable Web sites?

When you want to know where to find a restaurant or what time a movie starts, do you look through the newspaper or do you go online? What about buying a car? Would you prefer to search through news ads, or go online where you can compare prices with search tools?

Although it may cost me some salary some day at my newspaper job, I cannot argue for newspapers in this regard. Online advertising is just better.

Wednesday, November 4, 2009

Ohio OKs Casino Gambling

The passing of Issue 3 Tuesday will bring four casinos to Ohio, including a $600 million casino in the section of Cleveland known as The Flats.



Here are some stories from around the Web on Issue 3 passing:

The Plain Dealer
Cleveland to get its casino; Voters OK gambling, approve Issue 3
By Reginald Fields

COLUMBUS, Ohio - Tuesday's election transformed Ohio from an anti-gambling state to one that will welcome four major casinos, including a glitzy new one in the Flats, just across from Quicken Loans Arena.

Issue 3, the constitutional amendment for casinos in Cleveland, Columbus, Cincinnati and Toledo, coasted to victory Tuesday night with 53 percent of the vote, thanks in large part to voters in Northeast and Southwest Ohio.

With Cavaliers majority owner Dan Gilbert pledging that construction of the $600 million Cleveland casino would begin no later than the second half of next year, city supporters are looking forward to thousands of new jobs and more tourism from this new form of entertainment.

"We're going to deliver something very special," said Gilbert, who declared victory shortly before midnight at a party in the Cavs' practice court on the fourth floor of the Q, a couple of hours after the Cavs' win over Washington.

He vowed not to build a walled-in, isolated compound, but something integrated with downtown Cleveland.

The promise of jobs and tourism for a city reeling from a devastating economy sold Mayor Frank Jackson, City Council and business leaders who got behind the casino plan.

Continue Reading


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The Vindicator
Ohioans OK casino gambling, but Mahoning Valley voters reject state Issue 3
By David Skolnick

Backers of the casino initiative aren’t surprised by the results in the Valley, a spokesman says.

YOUNGSTOWN — Las Vegas-style casinos are finally coming to Ohio, despite the rejection of the statewide issue in Mahoning, Trumbull and Columbiana counties.

Though disappointed with the statewide results, Mahoning County Democratic Party Chairman David Betras, a strong and vocal opponent of the issue, said he’s proud of the unity shown by voters in the Mahoning Valley against the issue.

“I’m happy the Valley residents spoke loud and clear and stood arm-in-arm and voted as a region against this,” said Betras, who opposed the issue because it didn’t include a casino for this area.

“The people of Ohio spoke and Issue 3, despite its many flaws, was passed,” he added.

With 92 percent of the statewide vote counted, the gambling issue was winning 53.08 percent to 46.92 percent, according to unofficial results from the Ohio Secretary of State’s office.

The measure received 44.39 percent support in Mahoning County, 49.44 percent support in Trumbull, and 38.17 percent in Columbiana.

Continue Reading


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The Dispatch
Ohio OKs casinos
By James Nash

Battered by a grim economy, job-hungry Ohioans approved casinos for Columbus and three other cities yesterday.

Voters broke a streak of four failed gambling measures in Ohio by approving Issue3 with about 53 percent voting yes.

The measure benefited from a strong appeal by unions and urban politicians to get voters in the four casino cities - Columbus, Cleveland, Cincinnati and Toledo - to the polls. The measure carried by large majorities in the Cleveland and Cincinnati areas, won with a smaller majority in Toledo, and lost in Franklin County.

"We're going to deliver something very special, and we're going to work very hard with a lot of people," said Dan Gilbert, owner of the Cleveland Cavaliers and owner-to-be of two of the casinos. "This is not going to be a savior by any means, but it's another brick in the wall."

Gilbert will have the rights to casinos in Cleveland and Cincinnati. His partner on Issue 3, Pennsylvania-based Penn National Gaming Inc., will develop casinos in Toledo and Columbus' Arena District. Construction could begin by late 2010, and the new facilities would open in 2012.

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Tuesday, November 3, 2009

Are you worried about H1N1?

There's been lots of talk about the H1N1 and office life. How does an office cut down on sick employees? What about sick time? Should office's be more lax on sick leave, getting sick employees away from healthy ones?





Here is a great Q&A article from Ogletree Deakins, one of America's leading labor and employment law firms.

Employment Law Q&As on H1N1 Flu
by Olgetree Deakins
Oct. 15, 2009

May an employer involuntarily send home an employee who has or is exhibiting symptoms of H1N1?

Yes. Of course, employers must be careful to apply such a practice in a manner that does not discriminate on the basis of other protected characteristics (e.g., gender, race, etc.).

May an employer send home an employee who is not exhibiting H1N1 symptoms but who has been in close contact with someone with H1N1 (e.g., a family member, close friend, etc.)?

Yes, although employers should be aware that the CDC has indicated that in general business settings (e.g., non-healthcare settings where individuals in the workplace are not at a greater risk of contracting H1N1), employees without symptoms, but with sick family members, may report to work. Employers are free to meet with employees who have been in contact with those with H1N1 to remind the employee that he or she should practice good respiratory etiquette and handwashing and should stay home if he or she begins to feel sick, for the health and safety of the employee and his or her co-workers and the continued operation of the facility. Employers should apply any "send home" policy consistently.

When may an employee who has had H1N1 or H1N1 symptoms return to work?

The CDC has indicated that in general business settings (i.e., non-healthcare settings where individuals in the workplace are not at a greater risk of contracting H1N1), employees may return to work 24 hours after no longer having or exhibiting signs of a fever (100° F), without the aid of fever-reducing medications (i.e., anything containing ibuprofen or acetaminophen). This is a change from the prior CDC guidance to stay out of work for seven days after the start of the illness or 24 hours after no longer having a fever (whichever is longer).

May an employer "dock" an employee for time away from work for H1N1, if he or she has exhausted vacation/PTO?

For non-exempt employees, yes. For exempt employees, it depends on whether the absence is initiated by the employer or by the employee: (a) if initiated by the employee, the employer may dock the exempt employee for full-day absences only; (b) if initiated by the employer (e.g., "you must stay home because of a sick relative, even though you are willing to come to work"), the employer may dock the exempt employee only for full seven-day absences that coincide with the employer's pay week.

Is H1N1 automatically an FMLA-covered serious health condition?

No. If H1N1 does not satisfy the regulatory definition of a "serious health condition," it is not a serious health condition, and employers should not count the absence against the employee's 12 weeks of FMLA leave. Employers should evaluate any applicable state mini-FMLAs to ensure they do not contain different or additional require-ments or provisions.

May an employer disclose an employee's actual or probable H1N1 diagnosis to others?

The EEOC has taken the position that H1N1 symptoms or an H1N1 diagnosis is considered confidential medical information which an employer can disclose to only a limited group, including supervisors (so that the supervisor can implement necessary work restrictions for public health and safety reasons), first-aid personnel, and others not relevant in the current H1N1 context. This group does not include co-workers, patients, or customers - i.e., those to whom an employer likely would want to disclose this information.

Despite this position, some (though not all) courts have held that employee voluntary self-disclosures (i.e., when the employee or his or her relative tells an employer that the employee has H1N1 or is ill) are not covered by this prohibition. Additionally, given the widespread and far-reaching nature of the H1N1 pandemic, an employer may be able to argue that its failure to disclose an employee's H1N1 status to co-workers, patients and/or customers is a direct threat to the health of co-workers, patients, and/or customers, by putting them at risk of not seeking treatment in a timely or appropriate manner, especially if any of the co-workers or customers is among the group at higher risk of developing complications from H1N1 (e.g., pregnant women, those with asthma, etc.) or is a patient in a health care setting. Because of the EEOC's stated position on this issue, employers should consult with counsel before making any disclosures of an employee's H1N1 status to co-workers, patients or customers.

Click here to read the entire article.

Here are some other links on the H1N1flu.

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Sick? Co-Workers Say, 'Don't Come In!'
Society for Human Resource Management
Oct. 23, 2009

Got an employee with a cough? His co-workers might send him packing if he doesn’t go home soon, according to a new poll.

More than 90 percent of Americans said they want their co-workers to remain at home if they are infected with the H1N1 flu, according to a survey from Mansfield Communications. Eighty-three percent of respondents say they would tell colleagues or senior management if a co-worker came to work with symptoms of the flu.

The survey interviewed 2,029 Americans Oct. 5-11, 2009.

Continue Reading

Click here to read all the SHRM swine flu articles.






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What Employers Can Do to Protect Workers from Pandemic Influenza
OSHA

During an influenza pandemic, transmission of the pandemic virus can be anticipated in the workplace, not only from patients to workers in healthcare settings, but also from customers and coworkers in general work settings. Employers can use a set of occupational safety and health controls referred to as the "hierarchy of controls" to reduce exposures to pandemic influenza in their workplaces. The types of control measures, listed from most effective to least effective, that may be used to protect yourself, your workers and your customers are:

    * Engineering controls;
    * Administrative controls;
    * Work practices; and
    * Personal protective equipment (PPE).

Most employers will use a combination of these control methods. There are advantages and disadvantages to each type of measure when considering the ease of implementation, effectiveness and cost.

Continue Reading