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PPC Newsletter
Current HR Trends – Fall 2016
FLSA/Overtime Update
On 9/28, the House of Representatives passed a bill to delay the effective date of the new overtime regulations by 6 months due to concerns about cost and potential layoffs. However, despite this and the fact that lawsuits have been filed by 21 states and numerous business groups challenging the new overtime rule, employers are being advised to prepare for the December 1st implementation with experts believing that the new Department of Labor (DOL) revisions will prevail. Contact Linda at PPC for an audit checklist or if you need further assistance to prepare for the December 1 deadline to comply with the new OT regulations. See PPC News Alert on the Overtime Ruling at www.payandpeople.consulting for further information.
Pay History Legislation
On August 1st, Massachusetts became the first state in the nation to ban employers from asking for salary history. The law, which will take effect in 2018, is an effort close the gender gap and make it unlawful for employers to pay men and women different rates for “comparable work”. The new law will require hiring managers to state a compensation figure upfront — based on what an applicant’s worth is to the company, rather than on what he or she made in a previous position. The new law in MA also bans salary secrecy, blocking employers from keeping their employees from talking about pay with each other. New York and California passed similar laws banning salary secrecy in the last year. In related news, in June, 28 major corporations including Gap, Pepsi and American Airlines, signed an Equal Pay Pledge to conduct annual audits of pay by gender across all job categories.
Given the continued press on this issue, PPC recommends that organizations begin to set up a process to review pay practices to ensure pay equity – in compensation decisions, salary offers, performance evaluations and promotion decisions, and specifically in MA, review job applications and recruiting processes to comply with the new law. PPC can assist in this review.
Do Your Managers Think that Updating Job Descriptions is a Waste of Time?
Think again. Job description updates, often reviled by managers, are critical to an organization’s HR lifecycle, although almost 50% of organizations indicate that their JDs are either outdated or inaccurate. Job documentation is critical for an organization – starting with the recruiting process (in order to hire employees with the right skills), through training and development programs, performance assessments, compensation programs, succession planning, compliance (with FLSA and ADA requirements), and to investigate workplace complaints. Ideally, job descriptions (JDs) should be updated annually as part of the performance review process.
PC assists organizations in reviewing and updating job descriptions and ensuring compliance with ADA and FLSA requirements. In addition, through our strategic partner, we offer state-of-the-art software to manage and store JDs. Please contact us for further information.
Attracting Talent Requires Building a Stronger Employer Brand
At a time when companies are facing increased competition for talent, it is imperative that employers send a clear message to the hiring market about who they are and what they stand for. As covered in a recent SHRM Expert Panel communication, talented candidates in today’s world are seeking companies that have a culture that reflects the fundamentals of a great place to work. While this may mean many different things to people, the key branding ingredients seem to be the following: a social responsibility platform, technological advances and support of virtual offices, workforce inclusion, transparency/trust with senior leadership, employee safety and security, a strong atmosphere of civility and respect and compensation and benefits that reflect the needs of today’s multi-level generations. This topic should be at the top of the list for top executives in any strategic business discussions. Contact PPC should you wish to explore this topic in more detail.
The PPC Newsletter is produced by Pay and People Consulting, LLC. PPC is a consulting firm specializing in issues related to human resources; https://www.payandpeople.consulting. Contact Linda Ulrich (413-262-6739) to discuss pay or Garrett Ulrich (413-531-8870) to discuss people needs. This publication is for information only and does not constitute legal advice; consult with legal, tax, and other advisors before applying this information within your organization. If you do not wish to receive the PPC Newsletter, please reply to this email with “unsubscribe” in the subject line.