11 top workplace stressors

Thirty percent of survey respondents to a recent CareerCast survey listed deadlines as a top workplace stressor. Continue reading this blog post for more of the top workplace stressors.


With workplace stress leading to lower productivity and increased turnover, an important tool in an employer’s pocket is a working knowledge of what workplace stressors exist and how to help workers manage them. A new survey from CareerCast, a job search portal, finds these following 11 factors represent the most common stressors in any given profession.

The CareerCast Job Stress survey had 1,071 respondents who selected the most stressful part of their job from one of the 11 stress factors used to compile CareerCast’s most and least stressful jobs report.

11. Environmental conditions

2% of respondents say this is a leading contributor to workplace stress.

10. Travel

3% of respondents say this is a leading contributor to workplace stress.

9. Meeting the public

4% of respondents say this is a leading contributor to workplace stress.

8. Hazards encountered

5% of respondents say this is a leading contributor to workplace stress.

7. Life at risk

7% of respondents say this is a leading contributor to workplace stress.

6. Growth potential

7% of respondents say this is a leading contributor to workplace stress.

5. Working in the public eye

8% of respondents say this is a leading contributor to workplace stress.

4. Physical Demands

8% of respondents say this is a leading contributor to workplace stress.

3. Competitiveness

10% of respondents say this is a leading contributor to workplace stress.

2. Life of another at risk

17% of respondents say this is a leading contributor to workplace stress.

1. Deadlines

30% of respondents say this is a leading contributor to workplace stress.

For the full CareerCast report, click here.

SOURCE: Otto, N. (5 May 2017) "11 top workplace stressors" (Web Blog Post). Retrieved from https://www.employeebenefitadviser.com/slideshow/11-top-workplace-stressors?tag=00000151-16d0-def7-a1db-97f03af00000


Creating a Culture of Recognition

Are you recognizing your employees for their hard work? Businesses can experience a rise in engagement, productivity and retention when employees are recognized for their work. Read on to learn more.


When employees are recognized for their work, employers can see gains in engagement, productivity and retention.

But such efforts must be more than a one-time event; to really enjoy the benefits, employers need a culture of recognition, experts say. This has to start at the top and include clearly defined company values.

Live the culture you want

"A purposeful, positive, productive work culture doesn't happen by default — it only happens by design," S. Chris Edmonds, founder of The Purposeful Culture Group, told HR Dive via email.

And while HR can influence culture, a recognition culture must start at the top, experts say. And it must be part of an employer's performance management strategy.

Management can signal what's important, what it needs employees to care about, Scott Conklin, VP, HR at Paycor, said. "You have to live your words," he told HR Dive, adding that "if not seen at all levels, people aren't going to do it."

Senior leaders must create credibility for these "new rules" by modeling valued behaviors and coaching on them every day, Edmonds said. Coaching means senior leaders must praise aligned behaviors everywhere they see them and redirect misaligned behaviors in the same way. Only when senior leaders model these behaviors will others understand that these new rules aren't optional, Edmonds said.

In addition, Edmonds said, the organization must measure how well leaders are modeling the valued behaviors. This measurement often comes in the form of a regular values survey, generally twice a year, where everyone in the organization rates their boss, next-level leaders and senior leaders on the degree to which those leaders demonstrate the company's valued behaviors. Only by rating leaders on valued behavior alignment can values be as important as results, Edmonds said.

And only when everyone — from senior leaders to individual team members — demonstrates valued behaviors in every interaction will the work culture shift to purposeful, positive and productive, Edmonds said.

Create an industrial constitution

Many employers don't communicate their values well, Conklin said.

The path to great team citizenship can be clearly defined by creating an organizational constitution that includes a servant purpose statement explaining how the organization specifically improves quality of life for its customers — and defines values and measurable valued behaviors, strategies and goals, Edmonds said.

If company values don't explicitly define exactly how you want people to behave, they'll struggle to model your values, Edmonds continued. If an organization values integrity but doesn't define it in measurable terms, people won't know exactly how they're supposed to behave, he explained.

Find what works

Traditional models of employee recognition are good, but they're becoming outdated in some cultures, Conklin noted. Your recognition program has to fit your culture, he said.

SOURCE: Burden, L. (26 November 2018) "Creating a culture of recognition" (Web Blog Post). Retrieved from https://www.hrdive.com/news/creating-a-culture-of-recognition/542845/


It’s peak flu season. Here’s what employers should do now

Even though many businesses offer paid sick leave as a benefit to their employees, there is no federal paid sick leave law. Read this blog post to learn what proactive steps employers can take to keep the workplace healthy.


The U.S. is in the height of flu season, which means employers are likely to see an influx of employees coughing, sneezing and spreading germs in the office. Aside from passing a box of tissues, employers may be wondering what they are legally permitted to do when their workers get sick.

One benefit that is becoming increasingly relevant is paid sick leave. Several cities and states — including Arizona, California, Connecticut, Massachusetts, Chicago and others — have paid sick leave laws on the books. But while many companies offer paid sick leave as a benefit, there is no federal paid sick leave law. Paid sick leave laws may remove some incentive for sick workers to report to work, making the illness less likely to spread to the rest of the workforce.

But paid sick leave laws do place limitations on employers. For example, companies cannot make taking a paid sick leave day contingent upon the employee finding someone to cover their shift. Depending on the law, employees don’t always need to give notice of their absence before their shift begins, which could make scheduling difficult. Some laws limit an employer’s ability to ask for a doctor’s note.

Employers do, however, have some latitude when it comes to requiring employees to stay home from work or sending them home if they show signs of illness. Employers just need to be careful not to cross any lines set by the federal Americans with Disabilities Act or a state fair employment statute. This means steering clear of conducting medical examinations or making a disability-related inquiry.

According to the U.S. Equal Employment Opportunity Commission, employers should avoid taking an employee’s temperature. This is considered a medical examination by an employer, which is generally prohibited except in limited circumstances.

They should also avoid asking employees to disclose whether they have a medical condition that could make them especially vulnerable to complications from influenza or other common illnesses. Doing so would likely violate the ADA or state laws, even if the employer is asking with the best of intentions. Employers also cannot require workers to get a flu shot, according to the EEOC.

Employees could have a disability that prevents them from taking the influenza vaccine, which could compel them to disclose an underlying medical condition to their employer to avoid taking the shot. Additionally, some employees may observe religious practices that would prevent them from taking the flu vaccines. Thus, requiring an employee to take a vaccine could lead to a violation of Title VII of the federal Civil Rights Act of 1964 in addition to the ADA.

Beyond these limitations, employers can take these proactive steps to keep the workplace healthy.

Ask employees if they are symptomatic. In determining who should go home or not report to work, employers may ask workers if they are experiencing flu-like symptoms. This would not rise to the level of a medical exam or a disability-related inquiry, according to the EEOC.

Advise workers to go home. Employers can order an employee to go home if they are showing signs of the flu. The EEOC says that advising such workers to go home is not a disability-related action if the illness is like seasonal influenza.

Encourage workers to telecommute as an infection-control strategy. But keep in mind that the company could be establishing a precedent for telecommuting as a reasonable accommodation in other circumstances, such as for an employee recovering from major surgery who cannot come to the workplace.

Encourage flu shots. Employers may encourage — but not require — employees to get flu shots. For example, a company can invite a healthcare professional to the workplace to administer flu shots at a discounted rate or free.

Employers may require its employees to adopt certain infection-control strategies, such as regular hand washing, coughing and sneezing etiquette, proper tissue usage and disposal, and even wearing a mask.

The ADA, Title VII, state fair employment laws and paid sick leave statutes are also incredibly nuanced. Moreover, it’s important to balance the mandates of OSHA, which require employers to maintain a safe working environment. Before taking any significant actions, employers should consult with an employment attorney or HR professional for guidance.

SOURCE: Starkman, J.; Dominguez, R. (4 December 2018) "It’s peak flu season. Here’s what employers should do now" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/its-peak-flu-season-heres-what-employers-should-do-now?brief=00000152-14a5-d1cc-a5fa-7cff48fe0001


From HSA to 401(k) contribution limits, 11 numbers to know for 2019

Are health savings accounts (HSA), 401(k)s and flexible spending accounts (FSA) a part of your employer-sponsored benefits? Read this blog post for the 11 numbers you should know for 2019.


There are a slew of important figures companies and employees need to know regarding health savings accounts, 401(k)s and flexible spending accounts. While the IRS announced HSA changes in May, the agency only recently announced annual changes to FSAs and 401(k)s. From contribution limits to out-of-pocket amounts, here are the figures employers need to know — all of which take effect in January.

$19,000: 401(k) pre-tax contribution limits

The IRS in November said it is increasing the pre-tax contribution limits for employees who participate in a 401(k), 403(b) and most 457 plans to $19,000 from $18,500. That limit also applies to the federal government’s Thrift Savings Plan.

$6,000: 401(k) catch-up contribution limit

For participants ages 50 and over, the additional 401(k) catch-up contribution limit, which is set by law, will stay at $6,000 for 2019.

$6,000: IRA contribution limits

IRA contribution limits are being raised to $6,000 from $5,500 — the first time the IRS has increased the limits since 2013. The catch-up contribution limit for people 50 and over will still be $1,000.

$3,500: Annual HSA contribution limit for individuals

The 2019 annual health savings account contribution limit for individuals with single medical coverage is $3,500, an increase of $50 from 2018.

$7,000: HSA contribution limit for family coverage

For HSAs linked to family coverage, the 2019 contribution limit will rise by $100, to $7,000, above the family cap set for 2018.

$1,350: HDHP minimum deductible for individual

The minimum deductible for a qualifying high-deductible health plan remains unchanged for 2019: $1,350 for individual coverage.

$2,700: HDHP minimum deductible for family

The minimum deductible for a qualifying high-deductible health plan remains at $2,700 for family coverage.

$6,750: HDHP maximum out-of-pocket amounts (individual)

Deductibles, copayments and other amounts that do not include premiums will have a maximum limit of $6,750 for individual coverage next year, up $100 from 2018.

$13,500: HDHP maximum out-of-pocket amounts (family)

Deductibles, copayments and other amounts that do not include premiums will have a maximum limit of $13,500 for family coverage, up $200 from 2018.

$1,000: HSA catch-up contributions

Individuals 55 years or older can contribute an extra $1,000 to their health savings account in 2019. The amount remains unchanged from 2018.

$2,700: FSA contribution limit

The health flexible spending account contribution limit for 2019 is $2,700 — an increase of $50 over the 2018 limit. The increase also applies to limited-purpose FSAs that are restricted to dental and vision care services, which can be used in tandem with health savings accounts.

SOURCE: Mayer, K. (6 December 2018) "From HSA to 401(k) contribution limits, 11 numbers to know for 2019" (Web Blog Post). Retrieved from https://www.benefitnews.com/list/from-hsa-to-401-k-contribution-limits-11-numbers-to-know-for-2019


Happier Holidays, the HR Way

A significant percentage of respondents in a new survey featured in HR Dive reported feeling the greatest sense of belonging in their workplace. Continue reading this blog post to learn more.


Most people, according to a new survey featured in HR Dive, have the greatest sense of belonging in their own homes. That may not be surprising news, but what is interesting is that one-third of respondents felt the greatest sense of belonging in their workplace. A significant percentage, 40 percent, attribute that feeling to actions their colleagues and managers take to check in on them, both personally and professionally. Belonging improves employee retention and productivity, certainly, but it requires acknowledgment of diversity and efforts at inclusion.

This critical sense of belonging can be deepened, or hampered, during the holiday season. Beyond secular or national holidays like Thanksgiving and New Year's, the fall and winter months are full of faith-based holidays beyond Christmas. The Society for Human Resource Management has some tips as well as a list of celebrations for the coming months intended to help companies create inclusive workspaces for people of more faiths and cultures. When employees feel valued and known, they are more engaged.

Mutual respect is not only good for morale, but it’s also good for productivity. Some tips include sharing more about holidays in internal communications, creating luncheons that feature traditional dishes or are mindful of dietary restrictions or fasting practices, or sponsoring a service or volunteer day.

Read more:
One-third of workers report feeling a sense of 'belonging' in the workplace
Ask an HR Expert: How Can We Foster Inclusivity Among Our Multifaith Workforce This Holiday Season?

SOURCE: Olson, B. (27 November 2018) "Happier Holidays, the HR Way" (Web Blog Post). Retrieved from http://blog.ubabenefits.com/happier-holidays-the-hr-way


Facebook Unveils New Career-Development Portal

Social networking company, Facebook, recently revealed that they are launching a career-development portal that provides accessible, relevant content to entry-level job seekers. Read on to learn more.


Facebook is jumping into the learning market in a big way, announcing the launch of Learn with Facebook at its New York offices yesterday, a big step toward the social-networking giant’s recently stated goal of equipping 1 million business owners in the U.S. with digital skills by 2020.

Learn with Facebook is a career-development portal that offers introductory, free-of-charge courses in both hard and soft skills. It’s aimed at people hoping to re-enter the workforce after a period of absence as well as those wishing to acquire skills that will help them compete for entry-level jobs in the digital economy, says Fatima Saliu, Facebook’s head of policy marketing.

“We’re facing a major skills gap in this country, and Learn with Facebook is our attempt to address that,” she says. Learn with Facebook has already been launched in France and Germany, says Saliu, and will expand to other markets as well.

Learn with Facebook is a direct move into LinkedIn’s territory, although Facebook representatives denied yesterday that it was seeking to compete directly with the business-focused social network. LinkedIn has steadily built up its own learning offerings since it acquired Lynda.com in 2015 and rebranded it as LinkedIn Learning. Last week, Harvard Business Publishing announced a new partnership with LinkedIn that will allow customers of HBP to access its content directly via LinkedIn Learning’s platform.

The courses currently available on Learn with Facebook include tutorials on digital marketing as well as resume writing and job interviewing. Facebook is working with the Goodwill Community Foundation to develop course material and adapt it to the needs of local communities, says Saliu. “Our goal is to provide accessible, relevant content to entry-level jobseekers,” she says.

Facebook is also enhancing its Jobs on Facebook services by allowing businesses to share their job postings on Facebook groups as well as on their own pages and newsfeeds. The company says more than 1 million people have found jobs via Facebook since it launched the service last year.

Facebook is also making updates to its Mentorship tool, which is designed to make it easier for members of Facebook groups to connect with others who have specific experience or expertise. Users will now be able to sign up to share information on what they’re offering or looking for, making it easier for other Group members to find and connect with them on their own rather than going through a Group administrator first, says Michelle Mederos, Facebook Mentorship product designer.

Facebook Groups have enabled people working in high-stress, low-prestige occupations such as certified nursing assistant obtain mentoring and support, says Seth Movsovitz, founder of a Facebook Group called CNAs Only.

Although LinkedIn currently remains the dominant social-media player in the jobs space, it’s clear that Facebook is determined to be a big player as well. For employers that are desperate to fill jobs in a tight labor market, more competition between the two can only be a good thing.

SOURCE: McIlvaine, A. (15 November 2018) "Facebook Unveils New Career-Development Portal" (Web Blog Post). Retrieved from http://hrexecutive.com/facebook-unveils-new-career-development-portal/


Don't Mistake Perks for Corporate Culture

Employee perks are great but they shouldn't be mistaken for corporate culture. Read on to learn about the difference between great perks and great culture.


Too often, companies confuse perks and culture. Leaders think that to create a great culture, they should go purchase ping-pong and pool tables, get a keg for the office or offer four-day workweeks. But these are all perks, not culture, which are two very different things. If a company only focuses on adding flashy perks, they may attract an employee, but they won’t retain them.

Don’t get me wrong, perks are great, but if there are beanbag chairs and no one likes each other, that doesn’t accomplish much. Allowing your employees to bring dogs to work is a perk. Texting an employee after they had to put their dog down is culture.

Culture is made up of emotion and experiences. It’s the intangible feelings created by tangible actions. It’s about caring for your people and creating a sense of community that allows employees to feel connected to something bigger than their individual role. It’s allowing them to feel comfortable to be themselves. Culture is creating an experience that employees wouldn’t otherwise be able to have. It’s spending the time to actually listen and support them in their personal lives, both good and bad. It’s about asking for their opinion and then acting on the feedback.

Perks are short-term happiness. They will attract talent, but if companies aren’t investing in professional and personal development, if they’re not willing to spend the time listening and gauging individual motivators, if there is a lack of empathy for an employee who is struggling with a personal issue, the employee will leave as soon as they are offered a higher paycheck elsewhere. It’s like a relationship: If all you get are flashy gifts from your significant other without any emotional investment or support, it will fizzle.

Culture is transparency, and that is a two-way-street. If leaders expect their staff to be transparent, they too have to be transparent with their staff. They stand up in front of their co-workers and share their mistakes that have cost money, damaged confidence and produced tears and heartache. They share mistakes to show employees, new and old, that if you are running 100 mph, mistakes will happen, but the future success will overshadow them. That you can learn from them.

What about the companies that have their core values of integrity and honesty painted on their walls, but when influential employees go against them, they’re not penalized? That’s fake. Culture is when leadership removes someone from the organization who is bringing others down regardless of them being the company’s top producer. They are dismissed because that is the right thing to do for the team.

Culture is holding people accountable. Pushing them to be better. Training them to learn how. Developing their skills and then allowing them to execute the directives. When people are challenged and pushed and they become better, you are establishing culture.

Building a culture is hard work. It’s not a one-month or one-year initiative. The truly great places to work—the ones that get all the recognition and accolades—didn’t start investing in employees for the awards. The awards were ancillary.

An employee who thinks of jumping ship can compare perks easily, but culture is much harder to evaluate. Instead of focusing on temporary benefits, leaders should focus on creating an environment which makes your company hard to leave.

SOURCE: Gimbel, T. (14 November 2018) "Don't Mistake Perks for Corporate Culture" (Web Blog Post). Retrieved from https://blog.shrm.org/blog/dont-mistake-perks-for-corporate-culture

Originally posted on LaSalle blog.


3 trends and 4 survival tips for managing millennials in 2019

Millennials are America's most diverse generation and will be the prime engine of the workplace for years to come. Read this blog post for survival tips for managing millennials.


If anyone knows more about millennials than an actual millennial, it’s Brian Weed, CEO of Avenica. Founded in 1998, Avenica’s personnel services are focused exclusively on recent college graduates and the companies who are looking for such talent.

“Our goal is to place recent college graduates on the right career-track, finding entry-level positions for them at companies offering strong professional growth,” Weed says.

Millennials have been given “kind of a bad rap” by being overly stereotyped and studied. “Millennials are America’s most diverse generation. They hold more college degrees than any other generation, and they’ve experienced economic and political turmoil. They’re savvy, educated, skeptical, and on top of it all, they’re idealists. All of this has led to vast changes in the ways today’s workforce views business, engages with their organizations and leaders and makes decisions about their careers,” he says. And yet, just as with any generation, one must be cautious about assuming one profile fits all.

However one feels about this generation, there’s the fact that millennials are going to be the prime engine of the workplace for years to come. “The truth is that companies have to adapt to them, not the other way around,” he says.

Given the company’s focus and its tenure of service, BenefitsPRO asked Weed to identify three top millennial worker trends for 2019. Here’s his list:

1. Shifting motivations

Salary and culture continue to rank high on the list for attracting millennial and Gen Z candidates, but the following factors are increasingly important:

Flexibility: They expect more control over where and when they can work, with the ability (enough PTO and work-life balance) to travel and have other life experiences.

Mission driven: They are more in touch with the environment, society, and the future of both. They feel they are not only representative of their organization, but their organization also represent who they are as individuals and want to be a part of organizations that share similar views. They look for leaders who will make decisions that will better the world, not just their organizations, and solve the problems of the world through their work.

Development and training opportunities: Because millennials have seen such dramatic shifts in the economy, they seek to have more control over the future of their careers. Not only to “recession proof” but also to “future proof” their careers by constantly learning and developing.

2. Declining levels of loyalty and increased job hopping

These phenomena, well-known to employers or millennials, are largely due to:

Shifting motivations (outlined above): The key to managing this group is understanding the shifting motivations and finding ways to meet those needs/wants will help organizations attract and retain top talent.

Higher value placed on experiences, constantly wanting to try and learn new things: Managers need to give these employees opportunities to grow and develop in their roles is essential, but also opportunities to explore different fields and disciplines is also key. Keeping the work and the environment interesting and diverse will keep millennial employees engaged for longer.

Less patience, with a desire for frequent indicators of career progress (higher pay and/or promotions): Job hopping often allows the quickest opportunity to make more money and climb the career ladder. As a result, organizations are building in a quicker cadence for promotions and pay raises.

3. An increasing lack of basic professional skills/awareness

Many of these talented young people lack essential knowledge about what to wear, how to act and how to/engage in an office setting. Here’s how to respond:

Managers need to be ready to guide these new workforce entries into the professional skills areas. They often don’t have a network of older (parents/relatives) professionals around them to set an example and advise on what “professionalism” looks like and means. And colleges often don’t provide education in professionalism in an office setting: aside from business schools, many colleges don’t prepare students—especially those in the liberal arts—on meeting etiquette, business apps and technology, and other everyday professional practices.

Corporate onboarding of new entry-level employees often excludes the “basics” (meeting protocols, MS Office skills, etc.). While companies typically have some type of job-specific training programs, they often assume these basic office skills are there and aren’t able to see a candidate’s potential when lack of professional skills/awareness is present. This can create a barrier for highly qualified but more “green” candidates, especially first-generation graduates. Effective companies will develop training, coaching, and mentorship programs can help once on the job.

Weed’s 4 survival tips to managers of millennials

1. Create clear and fast-moving career tracks.

  • Create distinct career tracks with clear direction on how to advance to each level.
  • Restructure promotion and incentive programs that give smaller, more incremental promotions and salary raises, giving more consistent positive reinforcement and closer goals that make it more enticing to stay.
  • Create professional development opportunities that help them advance in those career tracks and build other skills they need and want.
  • Create ways young employees can explore other career tracks without leaving the company. Millennials and Gen Z’s have a higher propensity for changing their minds and/or wanting different experiences, so consider ways that enable employees to make lateral moves, or create rotational programs that allow inexperienced professionals to get experience in a variety of business capacities and are then more prepared to choose a track.

2. Alongside competitive compensation packages that include 401k matching programs and comprehensive insurance offerings, provide benefits that allow them to have a sense of flexibility when it comes to how they work.

  • Working remotely, flex schedules/hours
  • Floating holidays–especially beneficial as the workforce becomes more and more diverse
  • Restructure PTO that gives employees more autonomy and responsibility for their work
  • Tuition reimbursement programs to increase retention and build leaders internally

3. Create a strong company culture: company culture is one of the strongest recruiting and retention tools. Go beyond the flashy tactics of having an on-site game room and fun company outings and bring more focus to the company’s mission. Create and live/work by a set of core values that represents your company’s mission. People will be more engaged and move beyond just being their role or position when they feel connected to the mission.

4. Challenge without overworking. Boredom and stress are equally common as factors for driving millennials out of a workplace. Allow involvement in bigger, higher-level projects and discussions to provide meaningful learning opportunities, and create goals that stretch their capabilities but are attainable.

SOURCE: Cook, D. "3 trends and 4 survival tips for managing millennials in 2019" (Web Blog Post). Retrieved from https://www.benefitspro.com/2018/11/13/3-trends-and-4-survival-tips-for-managing-millenni/


HRL - White - House

DOL reverses course on ‘80/20’ limitations for tipped employees

The Department of Labor (DOL) recently released four new opinion letters, providing insight into their views on compliance with federal labor laws. Continue reading this blog post to learn more.


Last week, the DOL issued four new opinion letters providing both employers and employees further insight into the agency’s views regarding compliance with federal labor laws.

While the letters touch on a variety of issues, perhaps the most notable change involves the DOL’s about-face regarding the amount of “non-tipped” work an employee can perform while still receiving a lower “tip-credit” wage.

Essentially, this new guidance does away with the previous “80/20” rule regarding tipped employees. Under the 80/20 rule, businesses were barred from paying employees traditionally engaged in tip-based work, like servers and bartenders, a lower minimum wage and taking a tip credit for the other portion of the employee’s wage up to applicable state and federal minimum wage requirements when those employees’ side work, like napkin folding or making coffee, accounted for more than 20% of the employee’s time.

In recent years, there has been an explosion of litigation across the country over the 80/20 rule, questioning whether the tipped employee’s “side work” amounted to more than 20% of the employee’s duties and time. Likewise, in many of those same suits, plaintiffs would challenge individual tasks associated with their side work, attempting to claim that those tasks were not so closely related to their tipped duties, but rather rose to the level of a completely different or “dual job,” meaning that the employer should not be permitted to take the tip credit for hours worked performing those tasks.

What followed was case after case of lawyers, courts and employers quibbling over minutes spent folding napkins, wiping counters, slicing lemons, and painstakingly calculating and arguing as to whether those tasks added up to 20% and whether those tasks were not closely related enough to be included in the 20% calculation.

In these kinds of cases, we’d see arguments over circumstances like the server that moonlights as a “maintenance man” versus the server that changed the lightbulb or helped sweep underneath the tables.

The ultimate result: confusion, chaos and, frankly, a treasure trove for plaintiff’s attorneys who had another arrow in their quiver in which to seek additional purported wages for clients from employers that would find it difficult, if not impossible, to account for all minutes and tasks employees were performing in busy restaurants.

Following the DOL’s opinion letter, the landscape will change. Recognizing that the existing guidance and case law had created “some confusion,” the DOL expressly stated that they “do not intend to place a limitation on the amount of duties related to a tip-producing occupation that may be performed, so long as they are performed contemporaneously with direct customer-service duties...”

However, in attempting to provide additional clarity, the DOL may have instead opened up the proverbial Pandora ’s Box of uncertainty. In identifying the list of duties that the DOL would consider “core or supplemental,” the DOL refers to the Tasks section of the Details report in the Occupational Information Network (O*NET). It goes without saying that no document can provide an exhaustive list of tasks in today’s changing marketplace. While the DOL attempted to recognize the changing nature of today’s environment in a savings-type footnote, one does not have to look too far ahead to foreshadow the response from the plaintiff’s bar arguing over the related duties listed on O*NET.

While the DOL’s new position on the 80/20 rule will certainly come as a relief to many employers with tipped employees, employers should still be mindful in evaluating tipped employees’ job duties on a regular basis. Employees that are engaged in “dual jobs” are entitled to the full minimum wage, without the tip credit.

SOURCE: Kennedy, C. (15 November 2018) "DOL reverses course on ‘80/20’ limitations for tipped employees" (Web Blog Post). Retrieved from https://www.benefitnews.com/opinion/dol-reverses-course-on-80-20-limitations-for-tipped-employees?brief=00000152-14a5-d1cc-a5fa-7cff48fe0001

This article originally appeared on the Foley & Lardner website. The information in this legal alert is for educational purposes only and should not be taken as specific legal advice.


2019: A Look Forward

A number of significant changes to group health plans have been made since the Affordable Care Act (ACA) was enacted in 2010. Many of these changes became effective in 2014 and 2015 but certain changes to a few ACA requirements take effect in 2019.

 Changes for 2019 

  1. Cost-sharing Limits – Non-grandfathered plans are subject to limitations on cost sharing for essential health benefits (EHB). The annual limits on cost sharing for EHB are $7,900 for self-only coverage and $15,800 for family coverage, effective January 1, 2019.
    • Health plans with more than one service provider can divide maximums between EBH as long as the combined amount does not exceed the out-of-pocket maximum limit for the year.
    • Beginning in 2016, each individual – regardless of the coverage the individual is enrolled – is subject to the self-only annual limit on cost sharing.
    • The ACA’s annual cost-sharing limits are higher than high deductible health plans (HDHPs) out-of-pocket maximums. For plans to qualify as an HDHP, the plan must comply with HDHP’s lower out-of-pocket maximums. The HDHP out-of-pocket maximum for 2019 is $6,750 for self-only coverage and $13,500 for family coverage.
  2. Coverage Affordability Percentages – If an employee’s required contribution does not exceed 9.5 percent of their household income for the taxable year (adjusted each year), then the coverage is considered affordable. The adjusted percentage for 2019 is 9.86 percent.
  3. Reporting of Coverage – Returns for health plan coverage offered or provided in 2018 are due in early 2019. For 2018, returns must be filed by February 28, 2019, or April 1, 2019 (if electronically filed). Individual statements must be provided by January 31, 2019.
    • ALEs are required to report information to the IRS and their eligible employees regarding their employer-sponsored health coverage. This requirement is found in Section 6056. Reporting entities will generally file Forms 1094-B and 1095-B under this section.
    • Every health insurance issuer, self-insured health plan sponsor, government agency that provides government-sponsored health insurance, and any other entity that provides MEC is required to finalize an annual return with the IRS, reporting information for each individual who is enrolled. This requirement is found in Section 6055. Reporting entities will generally file Forms 1094-C and 1095-C under this section.
    • ALEs that provide self-funded plans must comply with both reporting requirements. Reporting entities will file using a combined reporting method on Forms 1094-C and 1095-C.
    • Forms Used for Reporting – Reporting entities must file the following with the IRS:
      1. A separate statement for each individual enrolled
      2. A transmittal form for all returns filed for a given calendar year.
    • Electronic Reporting – Any reporting entity that is required to file 250 or more returns in either section must file electronically on the ACA Information Returns (AIR) Program. Reporting entities that file less than 250 returns can file in paper form or electronically on the ACA Information Returns (AIR) Program.
    • Penalties – Entities that fail to comply with the reporting requirements are subject to general reporting penalties for failure to file correct information returns and failure to furnish correct payee statements. Penalty amounts for failure to comply with the reporting requirements in 2019 are listed below:
Penalty Type Per Violation Annual Maximum Annual Maximum for Employers with up to $5 million in Gross Receipts
General $270 $3,275,500 $1,091,500
Corrected within 30 days $50 $545,500 $191,000
Corrected after 30 days but before August 1 $100 $1,637,500 $545,500
Intentional Disregard $540* None N/A

**Intentional disregard penalties are equal to the greater of either the listed penalty amount or 10 percent of the aggregate amount of the items required to be reported correctly. 

Expected Changes

  1. Health FSA Contributions – Effective January 1, 2018, health FSA salary contributions were limited to $2,650. The IRS usually announces limit adjustments at the end of each year. This limit does not apply to employer contributions or limit contributions under other employer-provided coverage.
  2. Employer Shared Responsibility Regulations – The dollar amount for calculating Employer Shared Responsibility 2 penalties is adjusted for each calendar year. Applicable large employers (ALEs) must offer affordable, minimum value (MV) healthcare coverage to full-time employees and dependent children or pay a penalty. If one or more full-time employees of an ALE receive a subsidy for purchasing healthcare coverage through an Exchange, the ALE is subject to penalties.
    • Applicable Large Employer Status – ALEs are employers who employ 50 or more full-time employees on business days during the prior calendar year.
    • Offering Coverage to Full-time Employees – ALEs must determine which employees are full-time. A full-time employee is defined as an employee who worked, on average, at least 30 hours per week or 130 hours in a calendar month. There are two methods for determining full-time employee status:
      1. Monthly Measurement Method – Full-time employees are identified based on a month-to-month analysis of the hours they worked.
      2. Look-Back Measurement Method – This method is based on whether employees are ongoing or new, and whether they work full time or variable, seasonal or part-time. This method involves three different periods:
        • Measurement period – for county hours of service
        • Administration period – for enrollment and disenrollment of eligible and ineligible employees
        • Stability period – when coverage is provided based on an employee’s average hours worked.
      3. Applicable Penalties – ALEs are liable for penalties if one or more full-time employees receive subsidies for purchasing healthcare coverage through an Exchange. One of two penalties may apply depending on the circumstances:
        • 4980H(a) penalty – Penalty for not offering coverage to all full-time employees and their dependents. This penalty does not apply if the ALE intends to cover all eligible employees. ALEs must offer at least 95 percent of their eligible employees’ health care coverage. Monthly penalties are determined by this equation:
          1. ALE’s number of full-time employees (minus 30) X 1/12 of $2,000 (as adjusted), for any applicable month
          2. The $2,000amount is adjusted for the calendar year after 2014:
          3. $2,080 – 2015; $2,160 – 2016; $2,260 – 2017; $2,320 – 2018
        • 4980H(b) penalty – penalty for offering coverage – ALEs are subject to penalties even if they offer coverage to eligible employees if one or more full-time employees obtain subsidies through an Exchange because:
          1. The ALE didn’t offer all eligible employees coverage
          2. The coverage offered is unaffordable or does not provide minimum value.
          3. Monthly penalties are determined by this equation: 1/12 of $3,000 (as adjusted) for any applicable month
            1. $3,120 – 2015; $3,240 – 2016; $3,390 – 2017; $3,480 – 2018

Contact one of our expert advisors for assistance or if you have any questions about compliance in the New Year.

SOURCES: www.dol.gov, www. HHS.gov, https://www.federalregister.gov/documents/2018/04/17/2018-07355/patient-protectionand-affordable-care-act-hhs-notice-of-benefit-and-payment-parameters-for-2019, https://www.irs.gov/e-fileproviders/air/affordable-care-act-information-return-air-program