Employer's Report: Employers Report Post

Posted by Lindsay Hill, CCP, GRP, Director of Compensation Services, Cascade Employers Associations on January 1, 2024

Tags: Employers Report

Total rewards, at a high level, are split into two categories:

1. direct compensation (i.e., salary), and
2. indirect compensation (i.e., benefits, schedule, training, development, etc.).

These two pieces work together to reward employees for performing work on behalf of the company and ideally motivate them to continue working toward the company’s goals.

What is a TRS?

A total rewards statement (TRS) is a comprehensive listing of the rewards provided, including monetary values, that holistically captures the total investment a company is making in its employees. A TRS is individualized to each employee’s benefit enrollment, salary & bonus structure, and ideally includes a letter or positive acknowledgment of the employee’s efforts to further the company’s objectives.

Not all rewards are easy to understand or conceptualize, especially when referring to intangible benefits such as flexible hours, or a hybrid or fully remote setting. How does a company put a price on working remotely? Most people see this as a privilege and a perk, but what if a remote work setting is valued differently by employee populations? Sometimes it doesn’t make sense to monetize the value of everything, but there are various categories to consider when you create a total rewards statement.

Rewards Categories

Broad categories are helpful to include as they further segment the rewards into themed areas such as Health, Work-Life, Retirement, Compensation, Paid Time Off, and more. Once you have identified categories, individual rewards can be listed. Here are sample line-item rewards within standard categories:

• Compensation
  • Annual Salary
  • Bonus
  • Commission
• Paid Time Off
  • Vacation
  • Sick
  • Holiday
  • Bereavement
  • Catastrophic Leave
• Benefits (Mandated)
  • Worker’s Compensation
  • Social Security
  • Medicare
  • FUTA Tax
• Benefits (Insurance)
  • Medical
  • Dental
  • Vision
  • Life Insurance
  • Long-term Disability
  • Short-term Disability
  • Health Savings Account
• Work/Life
  • Employee Assistance Program
  • Tuition Reimbursement
  • Training/Development
  • Wellness

Breaking it down even further, the contributions made by the company and those made by the employee can be highlighted separately and shown in a pie chart or another graphical form to demonstrate the company’s investments alongside the employee’s investments in rewards.

Showing and explaining the total investment being made in employees can create feelings of goodwill, increase trust, and help employees understand they are receiving more than their direct compensation (salary) each month or every other week on payday. Educating employees on unseen investments can be eye-opening and help the company be strategic in its investments too.

The rewards mix offered by any company is strategic and most importantly should be tailored to the company’s workforce and their needs to maximize returns on investments. You likely already have the information needed to develop statements for employees, it’s just a matter of separating the information applicable to each employee and formatting it in an understandable way.

Want to learn more?

Attend our upcoming HR Connect training on February 28, 2024, Total Reward Statements – The Answer to How Much Do I Really Make?

If any of this sounds a bit overwhelming to start on your own, or if you are short on time, let CEA’s sister association, Cascade Employers Association, develop your total reward statements for you! To welcome in 2024, we’re starting the new year with 25% off our hourly rate on total reward statement creations through March 15, 2024. Reach out to our Compensation team for a quote now.

Posted by Giuliana Gabriel, J.D., HR Compliance Director on January 1, 2024

Tags: Employers Report

Chances are, most of us have encountered difficult personalities in the workplace. However, when the behavior rises to the level of bullying this often presents a major challenge for managers and HR professionals as they navigate the best approach. One problem is that workplace bullies are often more sophisticated than your average schoolyard bully. Workplace bullies may leave you feeling gaslit-causing you to question whether they have done anything wrong in the first place. Moreover, rude, subtly disrespectful, and unprofessional behavior does not always fit neatly into a formal policy violation leaving managers feeling stuck.

What are the Signs of a Workplace Bully?

1. They publicly shame or embarrass others. Bullies often find ways to belittle others, particularly in public. Sometimes they do this in a subtle or passive aggressive manner and then suggest that they are only joking or that the other person needs to lighten up. This is different from an employee with good intentions who accidentally says something offensive or makes someone feel bad. One characteristic of a bully is the inability to acknowledge their mistakes nor see the other person’s perspective.
2. They take all the credit or fail to give credit. What lies at the heart of bullying is often underlying insecurity. Bullies typically feel the need to take all of the credit for others’ accomplishments, or they may fail to acknowledge another coworker’s hard work, or give credence to their ideas. This is an even bigger problem if the bully is in a supervisory role, leading to employee disengagement and burnout.
3. They project their behavior onto others. Oftentimes when a bully is confronted about their alleged behavior they suggest that everyone else is also engaging in the same conduct they have been accused of. This can leave managers feeling stuck in a “he said, she said” situation. It is important to pay close attention to whether they can actually provide specific examples involving others, and how they reflect on their own role in the workplace conflict.
4. They try to turn others against you. When a bully has decided to target someone-sometimes for no good reason at all-they will make attempts to turn others against that person. They may lie about the individual, take things out of context, or attempt to sabotage their work. Unfortunately, this can create a rumor circle that is difficult to overcome when allowed to spread.
5. They create an intimidating, threatening, or hostile work environment. Sometimes bullies are bold enough to venture into illegal conduct, such as by making threats of workplace violence or targeting someone based on a protected class. This is often when bullying becomes harassment and it is critical that management investigates and corrects the issue promptly, to mitigate liability and protect other employees.

How to Address Workplace Bullies

If you are dealing with an individual that checks any or all of these boxes, the first question managers should ask can include:

• Is this the first issue we have had with this person, or is it repeated behavior?
• Does it appear they are acting intentionally or are they tone deaf?
• When confronted, does this person take accountability and show an intention to change?
• Or, do they deflect or appear to only pay lip service to doing better next time?

The answers to these questions are important when assessing whether you will attempt to coach this person to success, or if you have reached the end of the road. The worst situation occurs when a manager is unsure of how to approach a bully and fails to confront the issue for a while. This is never a good idea because just one problematic employee can vastly change your work culture, and lead to employee dissatisfaction and retention issues. Unfortunately, many employees begin to assume that the bully is protected and begin to distrust management and Human Resources. Once trust is lost amongst staff, it is very difficult to gain it back.

Managers need to remember that they do not have to prove beyond a reasonable doubt that an employee is engaged in bullying. Rather, managers just need to assess whether it is more likely than not taking into account all employee reports and other evidence, that bullying occurred and a policy was violated. Rude, unprofessional, or disrespectful behavior is often a violation of an employer’s code of conduct and/or harassment and discrimination policies. Make sure to document each incident, as it may become clear the bullying behavior is adding up.

If this article rang true, consider:

• Whether your employee could benefit from CEA’s professional coaching services.
• Let us know if you need assistance in handling an internal investigation-we can walk you through all of the steps from A-Z.

Members can also nip bad behavior in the bud and find additional guidance in our Coaching and Discipline in the Workplace Tool Kit.

Posted by Giuliana Gabriel, J.D., HR Compliance Director on January 1, 2024

Tags: Employers Report

Many employers mistakenly assume they can simply pay someone a salary and classify them as “exempt,” but this is not the case. In fact, the default in California is that an employee is assumed to be an hourly (non-exempt) worker, unless the employer can demonstrate they meet the exemption standards. Not all positions are even eligible for exempt status. However, there are many advantages to classifying someone as exempt, as they are not subject to most wage and hour requirements, including timekeeping, overtime, meal and rest breaks, etc.

So what does it take to be an exempt employee? The employee must satisfy both a duties test and a salary minimum. CEA members can access our Exempt Analysis Worksheets for assistance on the duties tests. Note that exempt employees must engage in qualifying exempt duties more than 50% of the time.

• The minimum exempt salary for 2024 is $66,560/year (calculated as two times the State’s minimum wage multiplied by 2080 hours per year).

FAQs for Exempt Employees

If an exempt employee works part time or variable hours can we pro-rate or reduce their salary?

No. The hallmark of an exempt employee is that they are paid for the skills they bring to the job-not the number of hours they work. To maintain exempt status under the white-collar exemptions (i.e., executive, administrative, and professional), the employee must be paid their full salary for a workweek in which they perform any work. This is known as the “salary basis” rule. Therefore, when one of your exempt employees is absent for part of the workweek or works less hours, you should start with the assumption that they will still receive their full salary.

There are a few narrow exceptions when an employer may be permitted to make deductions from an exempt employee’s salary for qualifying full-day absences. We cover this issue in more detail in our previous blog article.

Can we require exempt employees to work specific hours?

Yes! Many employers assume that because an exempt employee is not paid by hours worked, that you cannot require a specific schedule. That is untrue. Employers are free to assign designated work shifts and/or required hours of availability to exempt employees. For example, if your business operations are Monday-Friday, 9am-5pm, you can require your exempt employees to be present and working during these hours. You can also call them to work outside of these hours, and you do not have to worry about overtime as long as they are properly classified.

Do we have to pay expense reimbursements to exempt employees?

Yes. Although exempt employees are exempt from most wage-and-hour requirements, they are still subject to a few. Business expense reimbursement is one of them. Labor Code section 2802 requires employers to reimburse all employees for all reasonable and necessary business expenses required to perform their job (e.g., office supplies, cellphone, internet, etc.). Also, don’t forget about reimbursing exempt workers for mileage when they use their personal vehicle for business travel as well!

Can we classify someone as a “salaried non-exempt” worker?

Not really. While the Labor Commissioner permits employers to pay non-exempt employees on a salaried basis, they are still hourly employees subject to all wage-and-hour requirements, to all wage-and-hour requirements, including at least earning the minimum wage for all hours worked, overtime, meal and rest breaks, etc. The number of hours they work must still be included on their paystub. This means that salaried, non-exempt employees need to track the time they work to ensure they are paid properly and that documentation is compliant. This arrangement can often complicate the regular rate of pay for calculating overtime. Due to the administrative burdens and additional confusion, it is typically not recommended to pay non-exempt employees on a salaried basis.

Additional questions? Members can contact our wage-and-hour experts at 800.399.5331.

Posted by Giuliana Gabriel, J.D., HR Compliance Director on January 1, 2024

Tags: Employers Report

The Department of Industrial Relations (DIR) has updated their Frequently Asked Questions page to answer some of our questions regarding the new paid sick leave law (SB 616). They also updated the mandatory Paid Sick Leave poster, and Wage Theft Notice for hourly workers.

For additional information on SB 616, refer to our previous blog article here.

Ensuring Compliance by January 1, 2024:

Many employers have had questions regarding how to ensure their paid sick leave policy is compliant for the increase from 3 days/24 hours to 5 days/40 hours effective January 1, 2024. The DIR’s FAQ #15 and #16 provide helpful clarification for the accrual method, as well as when the lump sum method is based on an employee’s anniversary date:

“15. If an employer uses an accrual method and capped an employee’s yearly use of leave at 3 days or 24 hours, what must an employer do to comply with the law on January 1, 2024?”

If an employer uses an annual start date other than January 1 and implements a 12‑month use cap, that cap must change to 40 hours or 5 days on January 1, 2024. For example, if an employer uses the 12-month period of May 1 – April 30 and implements a cap and an employee used 24 hours or three days before January 1, 2024, the employer must allow the employee to use an additional 2 days or 16 hours before April 30 if the employee has accrued that additional leave.

“16. If an employer utilized the ‘up-front’ method prior to January 1, 2024 and provided an employee with 3 days or 24 hours of leave on the employee’s anniversary date during the year, what must an employer do to comply with the law on January 1, 2024?

The employer has the choice to frontload the two additional days on January 1, 2024 or move the measurement of the yearly period to January 1, 2024 and frontload five days.  For example, if an employee started on May 1, 2021 and the employer used that anniversary date to frontload 3 days or 24 hours on May 1, 2023, the employer may either provide 2 days or 16 hours on January 1, 2024 and keep the May 1 date to frontload or can “reset” the frontload date to January 1, 2024 and provide the employee 5 days or 40 hours then.”

Local Paid Sick Leave Ordinances

The DIR reminds employers that if they are subject to a local paid sick leave ordinance that requires more than what the State requires, they must ensure compliance with the local ordinance. Of note, however, is that as of January 1, 2024, “local ordinances cannot contradict the state paid sick leave law” on specific topics, including: “the lending of paid sick leave, paystub statements, calculation of paid sick leave, providing notice if the leave is foreseeable, timing of payment of paid sick leave, and whether payment of sick leave is required upon termination.”

CEA members may access information on local paid sick leave ordinances in this fact sheet.

Wage Theft Notice

As a reminder, at the time of hire, employers must provide each non-exempt (hourly) employee, with a written notice regarding pay rates and intervals, the designated payday, paid sick leave information, and more for the employee to acknowledge and sign. When there are changes to this information, the employer must provide an updated written notice within seven (7) calendar days of the effective date of the change. The notice must be in the language the employer normally uses to communicate employment-related information to the employee.

The DIR recently updated their sample notice for employers to use for 2024. Keep in mind that in addition to updating hourly employees regarding the new PSL, you should also update the employee on any pay rate changes (e.g., increased minimum wage). As an aside, there is also a new requirement for 2024 that California employers notify new hires regarding applicable emergency or disaster declarations in their area (AB 636). The DIR also addresses this issue in their updated sample notice.

2024 Labor Law Poster

The DIR updated their mandatory paid sick leave poster for 2024. As a reminder, the PSL poster is just one of many required state and federal notices that must be conspicuously posted in the workplace.

If you need an all-in-one poster that includes all required notices for 2024, CEA has the 2024 poster available on our store here.

Members can call us with PSL questions at 800.399.5331!

Posted by Kim Gusman on January 1, 2024

Tags: Employers Report

While minimum wages are increasing, the IRS gave employees who drive for company business another present this holiday season: an increase in the standard mileage rate to 67 cents/mile (up from 65.5 cents/mile) effective January 1, 2024!

On December 14, 2023 the agency announced the following rates for 2024 business travel:

• 67 cents per mile driven for business use, up 1.5 cents from 2023.
• 21 cents per mile driven for medical or moving purposes for qualified active-duty members of the Armed Forces, a decrease of 1 cent from 2023.
• 14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2023.

These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles.

Why This Matters  

California’s Labor Commissioner has found that the IRS mileage reimbursement rate is “reasonable” for purposes of complying with Labor Code Section 2802. LC 2802 requires employers to reimburse employees for all reasonable and necessary business expenses, such as using one’s personal vehicle for work purposes.

We encourage employers to use the standard mileage rate to pay tax-free reimbursements to employees who use their own vehicles for business, as an alternative to tracking actual costs for operating an automobile for business use.

Remember, expense reimbursements apply to salaried and hourly employees alike. For your hourly workers, note that business travel beyond their normal commute is also compensable work time. This is separate from the mileage reimbursement they receive for use of their personal vehicle for work purposes.

Next Steps

• Review your expense reimbursement policies.
• Utilizing the IRS mileage reimbursement rate for your employees is smart and easy because it covers all expenses including gas, insurance, and vehicle maintenance.
• Notify your controller, bookkeeper or whomever facilitates your expense reimbursements of this new 2024 increase.
• Review your remote worker policy-is it time for an update? Have you clearly designated and documented your 100% remote employees vs. hybrid employees?
• It’s important that you are accurately paying your employees not only for their drive time but also for any business expenses incurred on behalf of your company.

More questions? Members can call us or email us at no charge: 800.399.5331 or CEAinfo@employers.org.

Posted by Kim Gusman on January 1, 2024

Tags: Employers Report

And just like that, another year has come and gone! I hope you had some time to relax over the holiday season and spend some time with friends and family. I know that spending time with my daughters and family definitely helped to fill up my bucket.

As we head in to 2024, I want to thank you for your CEA membership. We are grateful for our members because they are committed to making their workplace more effective and their employees more successful. We are privileged to be one of the resources that allows your business to thrive.

As a leader in your company, you have a lot on your plate such as providing critical support and direction to your employees during economic uncertainty, successfully navigating the challenges of remote work, and preparing your organization for emerging issues such as the use of artificial intelligence in the workplace.

CEA has an incredible team of experts here to help you stay ahead of all these shifts in the workplace landscape and to elevate your overall member experience. We have created new programs to help you stay in compliance with the new 2024 labor laws and designed new trainings to make you aware of trending topics in Human Resources.

Check out the new trainings, resources and toolkits under our HR Answers tab. Upon request, we’ve also created certificate programs that provide a deeper dive into topics and offer more professional development for you and your team, including:

• HR 101-HR Compliance Essentials
• Leadership Excellence and Development (LEAD)
• Elevate Your Expertise: An Upskilling Training Series
• Workplace Investigations (more to come on this March course)

One of the biggest highlights for CEA in 2023 was our move to new office space in Sacramento. We are thrilled to be able to offer members a contemporary space and have enough room to train up to 35 people. Register for our first event, a 2024 Labor Law Update *Sponsored by Central Valley Community Bank scheduled for February 1!

When it comes to relationships and memberships, you only get out of them what you put into them-so please reach out to us often with your questions and suggestions! Since 1937 we’ve been working to lighten your load and our mission is simple, to provide you with Peace of Mind as you work to achieve your goals.

Here’s wishing you a very prosperous and Happy New Year!

Kim