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The Human Resources Briefs below are a general overview of the subject matter, and are not meant to provide legal opinions regarding any specific case, matter, or set of facts, or to substitute for the professional advice of Waag and Co.

FEBRUARY 2001

ENGLISH ONLY: The federal Equal Employment Opportunity Commission (EEOC) will aggressively enforce laws regarding English-only policies in U.S. workplaces. In a recent federal district court case in Texas, the court awarded $709,284 to nine bi-lingual workers. The workers were hired for their ability to speak Spanish to assist as long distance operators. There were, however, banned from speaking languages other than English at all times in the workplace, including lunches and breaks. EEOC chairwoman Ida Castro, stated "It is imperative for employers to be aware that English-only policies, those requiring workers to speak English at all times with no exceptions, may be unlawful if they are not clearly justified by business necessity". This will be narrowly construed by the EEOC.

CUT WORKPLACE STRESS: It would benefit Human Resources to promote physical activity, producing more alert and healthy employees, and reducing absenteeism. Analysts blame high-stress jobs coupled with lifestyle amenities-from hundreds of cable channels to fast food joints-for making Americans lazier in their free time. The U.S. government Centers for Disease Control and Prevention (CDC) said just one in four adults exercised enough in the 1990's. The CDC recommends a half hour of moderate exercise, like walking, five times a week, or twenty minutes of vigorous exercise, such as running, three times a week. Being physically active in general, rather than setting aside time, is really what's important. Walk down the hallway instead of inter-office mail or telephone; take the steps to the next floor rather than the elevator; walk to the restaurant at lunch time.

STOCK OPTION TAX CHANGES: The U.S. Treasury changes plans for employment taxes on some stock options. In an about face, the IRS won't impose social security taxes, Medicare taxes, unemployment taxes or income tax withholding until 2003 on income from incentive stock options and employee stock purchase plans IRS Notice 2001-14 will allay any confusion. Internal Revenue Bulletin 2001- dated February 5, 2001 contains the new notice.

UNION MEMBERSHIP HITS RECORD LOW IN 2000: Union membership dropped to a 60 year low in 2000. The percentage of American workers belonging to unions fell to 13.5 percent or 16.3 million workers in 2000 according to Bureau of Labor Statistics. Labor leaders hope to stop the decline; aim at 1 million new members per year.

WORKERS' COMP PREMIUMS EXPECTED TO RISE: Workers' comp insurance rates will continue to escalate in 2001, with no relief in sight. According to the Association of California Insurance Companies, workers' comp insurers are paying out $1.56 in claims and other costs for every $1 they collect in premiums. And the average claim cost topped $34,000 in 1999, compared with $18,000 in 1994. What's more, it appears likely that the state legislature will pass a benefits hike for injured workers this year, which will put even more pressure on California insurers to boost rates.

ELDERCARE: AN EMERGING WORK ISSUE: The nation's population is aging and, with medical advances, living longer than before. With an aging population comes the growing pressure for eldercare and an increasing awareness of the toll that eldercare places on caregivers who work.

It is estimated that as many as one-third to one-half of all caregivers are employed outside the home. Employees can be torn between their work demands and their attempts to provide quality care. Many employees are part of what is called the "sandwich generation," people with dependent children at the same time they are caring for an elderly parent. Eldercare often tops the list of employee concerns and is beginning to get the same attention as childcare in the 1980s because, sooner or later, eldercare issues will affect almost everyone who works. Employers not only will face employees who are caring for elderly parents but also, as the baby boomer workforce ages, senior-age employees with ill spouses.

A 1997 MetLife study found that U.S. businesses lost up to $29 billion annually in productivity due to eldercare issues. Caregivers often must reduce their hours, pass up promotional opportunities or eventually quit their jobs. Caregivers also may suffer from physical ailments or depression because of their heavy burden. Caregiving can rob employees of their leisure time and deprive them of the rest they need to perform at work. Caregivers also may suffer relationship difficulties at home because of competing demands on their time. To further complicate issues, caregiving often strains an employee's finances.

What Should Employers Do? Companies with 50 or more employees must comply with the Family and Medical Leave Act (FMLA), which allows up to 12 weeks of unpaid leave to care for a seriously ill parent, spouse or child without the loss of a job. The FMLA covers both physical and psychological care, including psychological comfort and reassurance that would benefit an ill parent, even if that family member is already receiving inpatient or professional home care.

Flexible Scheduling: Employers can explore the use of flexible work hours, part-time hours, telecommuting and job sharing. Employers also may want to consider offering employees the use of vacation days, family illness days or other leave time to provide family care.

Dependent Care Accounts: Employers can offer "cafeteria style" employee benefits that allow employees to set aside pretax dollars in an account to pay for care and services for family members not covered by insurance. An added benefit for employees is that this reduces the employee's taxable income.

Information and Referrals: Employers also can provide information, resources and referrals. Employees spend a great deal of time researching their different options and trying to find long term care for their gravely ill parents. Educating employees about community resources is very important. This can include in-house workshops, providing information about seminars in the local area and other reference materials. In California, the Family Caregiver Alliance at www.caregiver.org offers information about work-related elder care issues. The alliance offers materials on caregiving and resources for caregivers, as well as links to other Web sites, and specialized materials for human resources or Employee Assistance Program (EAP) staff. The Family Caregiver Alliance can be reached at (800) 445-8106, or visit its website: www.caregiver.org.

Support Groups: Be aware of the mental toll caregiving takes on employees. Employers should encourage employees to use company EAP programs. Employers also can refer employees to local support groups provided in the community or at local hospitals. Large organizations may offer to organize an in-house support group.

Long-Term Care Insurance: Investigate this increasingly popular type of insurance, which covers portions of long-term care costs for the employee or for dependent spouses, children or parents. Long-term care insurance is expensive, but can be part of an attractive benefits package to attract and retain good employees.

Stay Informed: Awareness of eldercare issues is growing. The National Family Caregiver Support Program was signed into federal law last year to provide support for the many people who are caring for the elderly, ill or disabled. It is important for human resources professionals to stay informed about these issues, and to continue to look for creative new workplace solutions.

 


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