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Changes in Human Resources: What Should we Look For in 2009?

Written by: Jennifer Loftus

Article Overview: 2009 has been promised as a year of change. How will this affect your organization, specifically in a Human Resources way? Well, in a few ways. With new FMLA laws, new amendments to the ADA law, and a talent retention crisis looming on the horizon, use this article to better prepare your organization for any change which will affect your HR department.

Changes in Human Resources: What Should we Look For in 2009?

Changes. Without them, there’s no indication of progress. As we prepare for the extensive work ahead of us to make 2009 a successful year professionally, it is beneficial to take a look at what may be in HR’s future. Keeping current with possible changes allows one to be prepared to handle any potential challenge and make adjustments smoothly. Being aware of changes in the ever evolving field of HR is important as HR impacts an organization’s livelihood and success. The Astron team has identified 4 areas of change in 2009.

FMLA Changes in 2009

Taking affect very soon – January 16, 2009 to be exact! – the Department of Labor (DOL) has issued the final regulations on the Family and Medical Leave Act (FMLA). Why are these modifications important to the HR world? Consider these facts from a recent HR article (http://hrdailyadvisor.blr.com/archive/2008/12/01/leave_policy_compliance_FMLA_family_medical_leave_act_changes.aspx):

• “An estimated 7 million employees take FMLA leave each year, and the DOL estimates that an additional 139,000 will actively seek family military leave each year.”
• “The DOL estimates that the financial impact on employees and employers will be roughly $327.2 million…with possible reoccurring costs of $244.4 million.”

No organization wants to be accused or exposed of not following such laws in court. No organization can afford to lose money from obliviousness.

Plenty of adjustments have been made to the law. They are not all easily understood. For starters, employers are required to provide newly hired employees (http://www.dol.gov/esa/whd/fmla/finalrule/factsheet.pdf) with a general notice of the FMLA (by poster, employee handbook, or on day of hire), an eligibility notice, a rights & responsibilities notice, and a designation notice. Employers will have up to 5 days to provide such notices upon hire.

There are also major adjustments in the procedures for substitution of paid leave that will permit an employer to require employees to take accumulated paid vacation, personal, family, or sick leave in conjunction with FMLA leave. However, at organizations covered by FMLA protections, an employee will always be entitled to FMLA leave whether or not they meet an employer’s qualifications for paid leave. Other changes include clarification of when medical recertification is required, changes in the process for fitness-for-duty certification, and two new leave entitlements (http://www.dol.gov/esa/whd/fmla/finalrule.htm).

Due to the importance of these new regulations, it is imperative that we fully understand the adjustments. A solid first step is viewing the Department of Labor’s website and examining the changes (http://www.dol.gov/esa/whd/fmla/FedRegNPRM.pdf). Contacting labor and employment law firms can be useful as well. Additionally, attending seminars and workshops (http://www.ipma-hr.org/content.cfm?pageid=770) that are aimed in addressing the changes can be beneficial.


From ADA to ADAAA

Changes in the American with Disabilities Act (ADA) can be found in the new ADA Amendments Act (ADAAA). While a lot of things have not changed in this new documentation, the government used the legislation to clarify and broaden several definitions.

Some items addressed include a definition of “major life activities” (http://www.cullenanddykman.com/db30/cgi-bin/pubs/00098687.pdf). In the definition there are two non-exhaustive lists: General Activities and Major Bodily Functions. Also, episodic or remissive impairments can be considered disabilities if they limit a significant life activity. Mitigating measures can not be considered when determining if a person is disabled (http://www.gentrylocke.com/showarticle.aspx?Show=1102).

Many of these changes were brought on by previous Supreme Court decisions (http://www.bazelon.org/issues/disabilityrights/resources/99scotus.htm) such as, Sutton v. United Air Lines (1999), Murphy v. United Parcel Services (1999), Albertsons Inc. v. Kirkingburg (1999), and Toyota Motor Manufacturing Kentucky v. Williams (2002). Due to the greater clarification in the ADAAA, many more Americans will be covered than under the previous ADA.

One useful resource in learning about the ADAAA changes is The Society for Human Resource Management’s (SHRM) website (http://www.shrm.org/law/). In particular, the law section of the site contains many articles and completely covers the new ADAAA. Human Resource professionals will need to take special care when dealing with ADA issues, as mistakes could possibly result a variety of actions including lawsuits.

Taking note of the modifications found in the ADAAA and showing proof of acknowledgement will promote a sense of organizational awareness to employees. This may make employees feel secure in knowing their organization is fully safeguarding their rights as employees. Ways in which an organization can demonstrate awareness could be in a simple bulletin, e-mail, or paper document notifying the staff of some of the changes found in the ADAAA. Thorough training with EEO officers and other HR professionals on these changes is also highly recommended.

Enter The Employee Free Choice Act?

Astronology readers are familiar with what the Employee Free Choice Act (EFCA) (http://thomas.loc.gov/cgi-bin/bdquery/z?d110:H.R.800:) may bring. EFCA is proposed legislation that would amend the National Labor Relations Act.

Many business professionals severely oppose the EFCA as they believe it would give unions the strength to dominate collective bargaining. They also believe EFCA is only being used to heighten dipping union membership numbers (http://www.workforce.com/section/00/article/25/26/53.html). There is also expressed concern regarding the card-check system, suggesting that an employee loses their right to a secret-ballot election.

In 2007, the bill passed through Congress. In 2008, we saw both presidential candidates state their perspectives on the bill. Republican John McCain strongly opposed EFCA whereas Democratic Barack Obama supported the bill. Even though President-elect Obama has been mum about his intentions on if and when he will sign the bill after inauguration, there is a strong indication that he most certainly will commit to EFCA’s passing (http://www.huffingtonpost.com/2008/12/03/obama-team-restates-stron_n_147939.html). For this particular change in 2009, we will have to stay tuned. Now is the perfect time, however, to learn about the bill and what its enactment could mean for your organization.


2009: The Year of the Talent Retention Crisis?

Talent Retention is slowly, but steadily reaching crisis status, despite the current US economic status. Deloitte Consulting reported on the possibility of a talent retention crisis in 2005 (http://accounting.smartpros.com/x47090.xml). Their studies indicated that out of 123 respondents:

• 70% stated that incoming workers with inadequate skills pose the greatest threat to business performance by 2008
• 61% believed that Baby Boomer retirement would be the 2nd great threat to business performance by 2008
• 55% believed the inability to retain key talent was the 3rd great threat to business performance by 2008.

Now more than ever, HR specialists should review their organizations to determine if these possible threats are of genuine concern. The Taleo Corporation conducted a study in June 2008 (http://www.taleo.com/news/press/companies-face-retention-crisis-keeping-college-413.html) consisting of 2,045 adults (888 college graduates) on their first job and their first employers. Study findings include the following:

• 43% that received a job after college graduation remained at this job less than 2 years.
• When asked how their first job made them feel:
o 13% reported that they couldn’t wait for Friday
o 10% wanted to quit every day
o 8% felt it was a waste of their time.

These numbers suggest part of a larger trend that as time goes by it becomes harder for organizations to keep talent. Some reasons for this include the rocky economy and even the fast pace American lifestyle (http://ezinearticles.com/?Executive-Coaching-For-Retaining-Top-Talent---Retention-Is-A-Key-Strategic-Imperative&id=1200084). There is a growing tendency for mobilization, which results in frequent job changes. While presently this trend has slowed down (http://www.iht.com/articles/2008/12/21/americas/relocate.php), relocation is still a factor in the talent retention topic.

2009 will be a year of change. Whether your organization is able to adapt to these changes will rest solely on the willingness of the entire organization to adapt and move proactively. HR specialists play a special role in making such transitions smooth and effortless. In order to be duly prepared, it is essential to take precaution now and ensure that everyone is updated on changes. To support your organization’s success in 2009, take the time to not only be fully aware of these particular issues, but also to reflect on and create innovative strategies to make 2009 a triumphant year. We here at Astronology will do our best to support you by bringing to light pertinent topics in HR in each and every issue!

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Article Tags: act changes, blr, department of labor, designation, dol, employee handbook, estimates, family and medical leave, family and medical leave act, family medical leave, family medical leave act, financial impact, fmla, hr world, livelihood, medical leave act, money, policy compliance, starters



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