FROM THE PRESiDENT
Vacation season is upon us and now is a good time to consider the
impact on the individual and the business.
- When all goes well the worker takes time off to pursue
interests that are different from the norm, and hopefully returns
to work refreshed and rejuvenated. This is the purpose of
vacations. Therefore encouraging everyone to take at least some of
their vacation is important. The idea of banking vacation for
future use or being paid in lieu of taking the time off defeats
the purpose of the benefit.
- Vacations allow you to see how other employees work under the
pressure of missing one team member. It is also an opportunity to
see how well cross training is working. Remember that a vacation
is a planned absence so it provides a good test of the depth of
your organization in a controlled environment. When an unexpected
absence happens as a result of accident, illness or resignation
you will have had at least some practice in handling the burden.
- I know of one small bank that insists that each employee who
has two weeks vacation take both weeks together. They use this as
an audit function, but even if you aren't in the banking business,
it will point out your opportunities for improvement.
- Since vacations can be disruptive to your business, it is
important to manage them. You certainly don't want to be at
year-end and have everyone who has time remaining request vacation
at the same time, especially if it is your busy season. We
maintain time off records for most of clients. If you need a time
off report for your group, it is always available at the HRi
website, www.hri-online.com, or you can call our payroll
department at 443.321.7702.
- Vacation is not a mandatory benefit under any state law. You
are free to decide "when and if" as long as you're consistent in
the administration of the policy. There is nothing that would keep
you from designating a specific week as vacation week for the
entire company. Nor is there anything that would prohibit a policy
that required all or some vacation to be taken in a specific
period. For example, each employee entitled to two weeks vacation
must take at least one week between July 1 and August 31.
- Remember this is a benefit and a real cost to your company. It
shouldn't be ignored. From time to time it is important to ask
yourself some questions about vacation allowances such as: why,
how much, when, etc.
- Should you have any questions about vacation policy or
administration please contact LuAnn Lessman or Judy Kennedy at
benefits@hri-online.com.
- Finally, if vacations leave you short in your office staff,
please don't forget our temporary service, TSi- Temporary
Staffing. Dawn Taylor is the VP and General Manager and personally
handles inquiries from HRi clients and friends. Dawn can be
reached at 202.466.8230, or at dtaylor@tsistaffing.com.
-Tim Schaffer, President Visit Our Website...
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| Greetings!
Welcome to the July 2004 edition of DiRECTIONS. In this
issue, Tim discusses the importance of vacation time for both
owners and their employees. Additionally, we provide some
statistics concerning vacation policies around the US.
We also revisit the revisions to the Fair Labor Standards
Act, scheduled to take effect this August.
Finally, we are proud to announce that LuAnn Lessman has
passed the Society for Human Resource Management professional
certification exam. Please join us, as we congratulate her!
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| More About Vacation...
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Do you ever wonder how your company's vacation and
paid time off benefits compare to other businesses in
the United States? Salary.com provides statistics to
help you compare your policy to National averages.
Average Vacation Days and Average Total Paid Days off
are plotted above by years of service as a quick
reference.
To find out more about Time Off statistics, click the
link below.
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| Fair Labor Standards Act
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There is a great deal of conversation about the
revisions to the Fair Labor Standards Act (FLSA) that
take effect August 23, 2004. For the most part, it is
"much ado about nothing" for most HRi clients. We have
queried our database and if you have workers who are
impacted by the change, we have already notified you to
make the requisite accommodations.
The most significant change is an exempt worker
(usually salaried) must be paid $455 per week (or
$23,660 per year) to preserve the exempt status, and
avoid the necessity of overtime. Without changing
duties, the employee can be paid less that $455 per
week, but must then be paid at 1 1/2 times the normal
hourly rate for all hours worked over 40 per week.
Don't be lulled into a false sense of security that
this is the only criteria. Simply paying someone more
than $23,660 per year does not make them exempt from the
overtime provisions of the FLSA. The SALARY BASIS TEST
and the DUTIES TEST are still integral parts of
determining whether an employee is exempt or non-exempt.
While there have been minor changes in these two arenas
they remain mired in confusion and interpretation and
the cost of misinterpretation can be high. Should you
have specific questions please call Judy Kennedy or
LuAnn Lessman in our Human Resource Department
(443.321.7700) and they will help clarify the matter.
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| LuAnn Lessman Earns Certification
as a Professional in Human Resources
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LuAnn Lessman, HRi's Benefits Manager, recently
earned certification as a Professional in Human
Resources (PHR).
The certification, awarded by the Human Resource
Certification Institute (HRCI), signifies that LuAnn
possesses the theoretical knowledge and practical
experience in human resource management necessary to
pass a rigorous examination demonstrating a mastery of
the body of knowledge in the field.
"Certification as a human resource professional
clearly demonstrates a commitment to personal excellence
and to the human resource profession," said Susan
Meisinger, SPHR, President and CEO of the Society for
Human Resource Management (SHRM). HRCI awards two levels
of certification: Professional in Human Resources (PHR)
and Senior Professional in Human Resources (SPHR).
To become certified, an applicant must pass a
comprehensive examination and demonstrate a strong
background of professional human resource experience.
HRCI is the credentialing body for human resource
professionals and is affiliated with the Society for
Human Resource Management (SHRM), the world's largest
organization dedicated exclusively to the human resource
profession. The Institute's purpose is to promote the
establishment of professional standards and to recognize
professionals who meet those standards.
We are delighted to now have three staff members with
certification through SHRM. LuAnn joins Judy Kennedy as
a Professional in Human Resources (PHR), while Tim
Schaffer has been certified as a Senior Professional in
Human Resources (SPHR) for six years.
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