Volume 16

BOTTOM LINEVolume 20S M A R T T H I N K I N G F O R S M A R T E R B U S I N E S S

ALSO IN THIS ISSUE:

Voluntary Benefits: Low Effort, High Return

Data: Big for Companies

of Every Size

Millennial Job Seekers: The Key to

Office Diversity?

Looking to Score New Talent? Follow the NFL Playbook®

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Voluntary Benefits: Low Effort, High ReturnIncreasing the success of your business could be as simple as adding voluntary benefits to your package. Find out how these cost-effective options can make the difference.

4 As Your Talent Goes, So Goes Your Business Unable to attract and retain top talent? Are you losing valuable candidates to competitors? Find out how effective talent management can influence your success.

Looking to Score New Talent? Follow the NFL® PlaybookIf you aren’t continually searching for quality recruits, you may sideline your company’s success. Take a lesson from the NFL on building the best team possible.

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Federal and State Employment Law Updates

Real Stories, Real Impact

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Anatomy of an Employment Lawsuit — How Could a Jury do That?

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Helping you stay on top of recent state and federal legislative changes.

Read how savvy ADP® users are leveraging ADP’s workforce management solutions.

9 Data is Big for Companies of All SizesThe ability to collect, process and analyze “big data” is crucial to managing the challenges of the business lifecycles. Discover how big data can help your business achieve success.

Boosting Diversity with MillennialsIncreased innovation and creativity stem from a diverse employee base, including millennials. Learn how to attract and retain a new generation of innovators.

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With employment lawsuits on the rise, businesses must take steps to reduce their chances of being sued — or better position themselves to defend a claim.

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AS YOUR TALENT GOES, SO GOES YOUR BUSINESSYour company thrives on the abilities of your employees. If you’re unable to attract and retain top talent, your loss may be your competitors’ gain. With the growing emphasis on employee engagement and satisfaction, effective talent management strategies and solutions are becoming an increasingly critical aspect of a successful business.

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ADP® can help you attract and retain top talentAt ADP, our Talent Management services feature a complete and integrated solution that includes recruiting, performance, succession, learning and compensation management.

RECRUITING MANAGEMENTTo attract the best and brightest, recruiters need more sophisticated — and integrated — tools. The right solutions incorporate built-in social and mobile technology to help you cultivate the best possible candidates and meet their expectations for a more transparent, interactive and consistent hiring process. (For more on recruiting, see “Looking to Score New Talent? Follow the NFL Playbook” on page 16.)

PERFORMANCE MANAGEMENTRealizing an employee’s full potential requires year-round performance management. With the right tools in place, your company can engage employees and align organizational goals with individual growth. To help drive performance, increase engagement and produce results, consider enhancements to:

• Automate and streamline the performance evaluation process

• Align employees’ goals with corporate initiatives

• Improve transparency about individual, team and organization-wide progress

COMPENSATION MANAGEMENTCompensation management can be challenging and expensive. That’s why it’s critical to get it right. Automated compensation management helps limit regulatory compliance risk, reduce expenses, ensure compensation equity, sustain a competitive position and attract and retain the best talent.

LEARNING MANAGEMENTLearning and development are integral to improving performance and engagement — and preparing employees for new roles and challenges within your company. That requires tools to accurately and efficiently target, manage and deliver learning activities across all levels of your organization. Successful companies use solutions that support live and online classroom training, create individual learning paths and help drive ongoing professional development.

SUCCESSION MANAGEMENTAs the pressure to perform and the talent competition intensifies, implementing succession planning and retention strategies is critical. Effective planning measures make it easier to gauge bench strength and depth, define career paths, identify key talent and nominate qualified successors. In turn, it empowers employees to create career paths that reflect their experience, skills and interests, driving their personal growth with your company.

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We’ve all seen the TV commercials with the duck promoting insurance. Whether you love or hate these ads, you may want to listen to the message.

Employee interest in voluntary benefits is gaining traction. Employees see them as opportunities to gain access to a financial protection against critical and catastrophic life events. They also value these benefits as a way to bridge out-of-pocket costs not paid by traditional coverage, such as medical insurance.

What’s interesting is that fewer employers are offering voluntary benefits, even though 64% of employees are in favor of a wider array of benefit choices, according to MetLife’s 12th annual U.S. Employee Benefit Trends Study.

Voluntary Benefits:

Voluntary benefits are generally low-cost and require minimal administrative effort, but they can result in a significant return on investment when it comes to attracting and retaining top talent. They’re quickly gaining traction — giving employees financial protection at times they need it most. And they may be a key factor in keeping your employees satisfied, engaged and on track for success.

LOW EFFORT, HIGH RETURN

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From the Employee’s Perspective Your workforce is looking to you for a wide range of benefit options they can customize to meet their personal needs. And they’re willing to pay for what they want. In fact, 60% of employees surveyed in the MetLife study said they’re willing to bear more of the cost to have benefits that meet their needs.

The MetLife research is supported by other findings from voluntary benefits companies. For example, the 2014 Aflac WorkForces Report shows:

Prudential’s Eighth Annual Study of Employee Benefits: Today & Beyond reports that, increasingly, employees see the value of voluntary benefits. 71% of employees surveyed said voluntary benefits boost the value of their company’s benefits program. That’s up from 63% in the prior year. What do employees say are the biggest advantages to voluntary benefits? Prudential’s survey shows cost is number one. Group-rate premiums are generally lower than what employees will pay on the individual market. Here are some of the other reasons why voluntary benefits are valued by employees:

• Employees can choose the plans that best fill their needs.

• Premiums are paid through convenient payroll deduction.

• Coverage is portable – employees can take it with them when they retire or leave their employer.

• Coverage is guaranteed (called “guaranteed issue”) if they sign up during Open Enrollment or when first eligible.

• Employees trust plans that are provided by their employer.

of employees consider voluntary insurance to be part of a comprehensive benefits program.

80%believe their overall benefits package influences their employee engagement.

say benefits influence their productivity.

60%

53%

53%

51%

45%

Typically lower costs than if purchased elsewhere

Convenience of payroll deduction

No medical exam or statement of health

Access to a wider range of benefits

Employer endorsement

65% of women 57% of men

59% of women 49% of men

62% of those over age 50 48% of those under 50

60% of those over age 50 46% of those under 50

50% of women 40% of men

Source: Prudential Eight Annual Study of Employee Benefits: Today and Beyond.

88%

63%

WHY EMPLOYEES VALUE VOLUNTARY BENEFITS

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From the Employer’s PerspectiveDespite the popularity of voluntary benefits with employees, the percentage of employers offering these plans is on the decline. The reason? Most likely the Affordable Care Act (ACA) has been a higher priority for benefit managers.

Complying with the ACA is essential, but at the same time, there are many advantages to including voluntary benefits as part of your benefits package:

• They help enhance employee loyalty. According to the MetLife study, 44% of employees said having benefits customized to meet their needs would increase their loyalty.

• Employees who work for a company that offers voluntary benefits say they are more satisfied with their jobs and their benefits than those who work for companies not offering these plans. (Source: 2014 Aflac WorkForces Report)

• Seven in 10 employers who offer voluntary benefits believe these benefits help improve morale for existing employees and help to attract new workers.

(Source: U.S. Worksite Sales: 2014 Fourth Quarter Review, LIMRA)

• They provide employees with more cost-effective options versus what they could buy outside the workplace.

• They help maintain the competitiveness of your benefits program with little to no cost to your company.

Benefits MatterIf your business counts on having top talent to succeed (and what business doesn’t?), your benefits might play a bigger role than you think.

A 2012 study conducted by Harvard Business Review Analytic Services concluded that employee benefits have a significant impact on employee retention. For example, the study found that executives see a strong connection between benefits and employee morale and retention. And over 60% say their companies have a strong sense of responsibility regarding the financial well-being of employees and their families.

Fortunately, voluntary benefits are low-cost and require minimal administrative effort, but they can result in a significant return on investment in attracting, keeping and engaging your workforce. Enhancing your benefit offerings could be as simple as adding voluntary benefits to your package.

ADP has you (and your employees) covered ADP TotalSource® provides a comprehensive benefits package, with national carriers, competitive prices and the coverage employees want. Our client partners can choose from a range of options and these plans help employers provide the choice and variety that employees want, with little to no impact to the company’s bottom line.

THE MOST COMMONLY OFFERED VOLUNTARY BENEFITS• Critical illness insurance• Hospital indemnity insurance• Accident insurance• Cancer insurance• Disability coverage• Prepaid legal services• Identity theft coverage• Pet insurance• Dental insurance• Vision benefits• Group term life insurance

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“Big data” is everywhere — and coming at us faster than ever before. No matter where your organization falls in the business lifecycle, the ability to effectively handle the demands of big data is crucial to overcoming business challenges and taking your organization to the next level.

You probably have a smartphone, mobile device or computer. Just think back a few years and compare what your previous model could (or couldn’t) do. Individuals and businesses now produce and share vast quantities of data every day from all types of devices. Data is also coming at us from more sources and at faster speeds than ever before. The ability to collect, process and analyze “big data” is becoming a crucial factor in identifying and managing the challenges of the business lifecycles so you can lead a successful business.

is big FOR COMPANIES OF ALL SIZES

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So what is big data?In a 2001 research report1 and related lectures, industry analyst Doug Laney presented what is now the mainstream definition of big data when he articulated its three Vs: volume, velocity and variety.

Volume Volume, which increases exponentially over time, includes transaction-based data stored through the years and unstructured data streaming from sources such as social media applications. In recent years, data storage has become less of an issue. However, the sheer volume of data now presents other issues as it becomes more complex and difficult to identify relevancy within the data points, analyze the data and draw value from it.

Velocity Data is streaming and being shared at such speeds that it is becoming increasingly hard to manage and react to in a timely manner.

Variety Data today comes in all types of formats, ranging from numeric data in traditional databases to text documents, email, video, audio and financial transactions. The broad variety of data sources increases the complexity of collecting, merging and governing data.

Other terms often associated with big data are variability (describing data use inconsistencies and surges), veracity (referring to how data quality can vary) and complexity (since data often comes from various sources, making it harder to integrate).

Benchmarking data is especially valuable to smaller companies that find themselves competing with larger firms for attention, sales and the best new hires.

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ADP® can help you transform big dataAt ADP, our Human Capital Management services, including our dashboard solutions, can help take the complexity out of big data by organizing and presenting that information in ways that are easier to understand and digest.

1 Laney, Douglas, “3D Data Management: Controlling Data Volume, Velocity and Variety,” http://blogs.gartner.com/doug-laney/files/2012/01/ad949-3D-Data-Management-Controlling-Data-Volume-Velocity-and-Variety.pdf, February 6, 2001.

How does big data help you manage business lifecycles?Whether your company is growing, thriving and expanding, or is considered established and more stable, the ability to effectively handle the demands of big data is crucial. For most companies, big data will influence their success at all stages of the business lifecycle.

Growing Forward Your company’s ability to draw data from multiple sources and analyze it correctly can help you understand what products, services, behavior or people are producing results so your company can grow.

Thriving and Expanding Use big data to improve how you conduct business, so your company can gain an edge over your competitors, push revenue growth and expand.

Facing Headwinds As an established company, the ability to effectively manage vast amounts of data will be critical to ensure you continue to provide the level of oversight, control and analysis that your business needs.

Regardless of the lifecycle stage you’re currently in, big data is also the key to benchmarking your organization. By comparing your performance to that of your industry peers — your costs, turnover, sales volume or profit margins, for example — you can gain clarity on the improvements necessary to take your organization to the next level. Benchmarking is especially valuable to smaller companies that find themselves competing with larger firms for attention, sales and the best new hires.

Take advantage of big dataBig data places new demands on businesses that didn’t exist just a few years ago. Fortunately, there are a number of solutions and services that can help your company take control of big data and use it to identify trends and opportunities to grow your business. For example, you may want to consider shifting to cloud-based data storage, better encryption and security measures, more advanced data manipulation operations and the use of predictive analytics.

Big data isn’t just for big companiesManaging and using data matters for all businesses, not just the big boys. It helps you identify what is and isn’t working for your organization. And it helps you get the most from your most important asset – your employees. With effective data analytics, you gain valuable insight to make crucial talent management decisions.

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Not only does a diverse workforce improve the possibilities for employer branding and attract top talent to the organization, there are other tangible benefits as well. Diversity of all kinds – age, gender, race, ethnicity, sexuality, disability and more – affects the composition of a team and ensures a variety of viewpoints on organizational functions and decisions. Increased innovation and creativity stems from a diverse employee base. Additionally, a Gallup® study found that gender-diverse business units had both higher revenue and net profits.1

Innovation-focused companies that want to succeed in attracting and retaining diverse top talent should pay very close attention to the changes millennials are bringing to the workforce. This demographic is projected to comprise the majority of the workforce within the next decade. For organizations that want to recruit millennial job seekers – and every company will need to – it’s important to understand exactly what makes millennials tick.

BOOSTING DIVERSITY WITH

Millennials

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Millennial Job SeekersNot only is this generation large, it’s racially and ethnically diverse, comprised of many born outside the U.S., and/or bilingual.1 This group cares about diversity, company ethics and giving back to their communities. In fact, a study from The Intelligence Group® found that 64% of millennials would take a lower-paying job they found fulfilling, even if given the opportunity to earn more than twice as much in an unfulfilling job.2

In order to attract and retain this generation, finding ways to make work engaging will be essential. During the recruiting process, demonstrate how a position solves problems, increases efficiencies or gives back. An organization that can effectively convey a diverse organizational culture, along with traits that appeal to millennials, will be more likely to attract this demographic.

Job-hopping MillennialsMillennials often work multiple jobs in their first few years of adulthood, moving between self-employment and short stints with a variety of organizations. While job-hopping is traditionally seen in a negative light, it’s simply a fact of life for the majority of millennial job seekers, due in part to limited economic opportunities for young graduates.

According to PricewaterhouseCoopers®, millennials seek out a variety of experiences because they want to develop a diverse background of skills and capabilities in order to be more suited to the marketplace.3 Unlike generations before, millennial job seekers expect to experience a variety of positions with several companies. An organization that can offer a variety of assignments, training sessions and clear pathways to increased responsibilities will be more likely to attract – and keep – employee’s candidates.

Mobile, Social MillennialsIn addition to expecting a diverse career, millennials are also the most digitally connected generation. They are mobile, social and always on the go. Companies that can connect with candidates on a variety of platforms and maintain flexibility for their employees are more likely to draw the attention and engagement of diverse millennial candidates.

Targeting diverse groups of millennials on social media requires knowing which candidates are using certain sites. For example, according to Pew, women dominate Pinterest® as a social network, and half of all Internet-using adults between 18 and 29 years old use Instagram®.4 Twitter® is one of the most diverse social networks and is used by millennials to share their expertise and make professional connections.

64% of millennials would take a lower-paying job they found fulfilling, even if given the opportunity to earn more than twice as much in an unfulfilling job.2

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(1) U.S. Census Bureau, 2014; (2) The Intelligence Group, 2014; (3) PricewaterhouseCoopers, 2014; (4) Pew Internet Research, 2014.

Organizations that want to attract millennials need to have an online presence and, more importantly, one that is compatible with mobile platforms. Mobile-optimized career sites and text message communications with a legally compliant opt-in method are keys to getting millennials to apply. Companies that stay ahead of the curve for social and mobile engagement will have access to a broader range of diverse millennial candidates.

Encourage Diversity, Foster InnovationDiverse, innovation-driven cultures don’t spring up overnight. Success requires dedication and buy-in at all levels. A recruiting strategy focused on diversity might attract

millennial hires, but they won’t stay long if the company’s policies and procedures don’t also reflect an ongoing commitment to diversity. Companies that develop a reputation for being diverse employers are more likely to attract the top talent that will take them to the next level in the years to come.

Innovation-focused companies should pay very close attention to the changes millennials are bringing to the workforce.

ADP® understands what’s important to millennialsLeverage our Talent Management solutions to attract — and keep — a diverse, engaged and productive workforce.

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When it comes to hiring the best and brightest, talent recruiters may want to take a look at how the NFL recruits its players. Each of the 32 NFL teams invests heavily in its talent pipeline and is ready at a moment’s notice to fill a position of need.

NFL teams wouldn’t consider signing a player unless they have a high degree of confidence that he will make a contribution to their team. And it shows on the field. The teams that are the best talent evaluators are generally the ones that win championships.

It’s a recruitment model that could work well for your business, especially as the race for talent heats up.

LOOKING TO SCORE NEW TALENT? FOLLOW THE NFL® PLAYBOOKIn the National Football League®, the teams that are the best talent evaluators are generally the ones that win the most games. So as the talent race heats up, the need to proactively seek out the top talent in your industry is more critical than ever. Take a lesson from the NFL’s proven recruitment model to help your business build the best team possible.

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LOOKING TO SCORE NEW TALENT? FOLLOW THE NFL® PLAYBOOK

“Next Man Up”Recruiting specialists divide potential candidates into two groups:

Active applicantsThese individuals are actively seeking new opportunities. They may or may not currently be in the workforce.

Passive applicantsThese candidates have jobs and are generally not looking for a new position, or are just casually looking. Today, your future hire might be working for a competitor or in a similar industry. Even if they aren’t actively searching for a new employer, many are open to learning about new opportunities.

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Passive candidates have a few things in common that recruiters should take into consideration:

1They usually don’t have a resume ready to go, so you’ll need to create other ways of learning more about their qualifications,

such as a simplified online application.

2Your current employees are a great resource for identifying qualified passive applicants among their networks of

former coworkers, industry contacts, friends, family and neighbors.

3Because passive applicants aren’t active in the job market, they probably aren’t talking with your competitors. Gain

the advantage by identifying and proactively seeking them out first.

SCOREBOARD WATCHING: PASSIVE APPLICANTSLinkedIn, the business social networking site, reports as many as

of job candidates are passive applicants and defines them as such:

75%

• Tiptoers: Engaged in a low level of job hunting

• Not looking: Not actively pursuing a new job, but willing to discuss it

• Super passive: Not at all interested in changing jobs

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In the Huddle: Turn Passive Applicants into New HiresUnlike the NFL, most companies don’t have a draft or free agency to fill positions in need. So where do you find qualified applicants?

POLISH YOUR BRANDNo matter how large or small the company, new talent is attracted to your talent brand and your corporate brand. Your talent brand is your image as a good place to work. And 77% of talent acquisition leaders say that a good talent brand significantly increases their ability to hire good talent.3

However, your company’s customer-facing image is equally important to new hires. Often a recruitment manager and marketing manager will work together to define a brand that will attract the best available candidates. The impression a potential recruit has about your company is usually formed well before they apply for a job.

BE OPEN TO THE NON-TRADITIONAL A traditional resume can tell you a great deal about a candidate’s past experience, but not a lot about their personality. Video resumes are on the rise and some organizations are requesting them as part of the screening process.

Video technology is also expanding into the interview process. Since you’re not limited by geography, it enables you and colleagues in other offices to interview long distance. And you can provide candidates with video and web links to review and discuss during an interview. While it’s not a replacement for in-person interaction, video interviewing can help you screen candidates before investing in a live meeting.

STAY SOCIAL AND GO MOBILEMaintaining a presence on job websites, such as Indeed and CareerBuilder, plus social networks like LinkedIn, Twitter and Facebook, is essential. An overwhelming majority (83%)1 of those looking for work use LinkedIn and Facebook to find opportunities.

And not being mobile-friendly could hurt your recruitment. If your job posting isn’t easy to access on a mobile device, you could be missing out on qualified candidates – 43% of job seekers are looking for work using a mobile device. Yet, 59% of recruiters don’t invest in mobile career sites.2

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Building Your Best TeamAsk any recruiter about their biggest challenge and they’ll tell you it’s “finding quality talent.” Unlike the NFL where the teams that finish last get the first shot at top draft picks, companies that aren’t continually looking for quality employees may find themselves sitting on the sidelines.

ADP® Recruitment PhilosophyCandidates have increased their demands for a hiring process that is more transparent, interactive and consistent. They are seeking “experiences” over “transactions” and increasingly expect to interact through mobile and social channels. Employers, in turn, are attempting to meet these demands with more strategic employment branding and marketing initiatives by using a greater variety of interactive communication channels. ADP offers comprehensive human capital solutions and products that can help you recruit, engage and manage workers so that you can attract and maintain the best team possible.

1 Jobvite, 2014 Social Recruiting Survey, page 2.2 Jobvite, 2014 Social Recruiting Survey, page 16.3 LinkedIn Talent Solutions, US Recruiting Trends, 3 Must-Know Talent Acquisition Trends for 2015, 4th Annual Report, page 22.

CONSIDER BOOMERANG RECRUITSThe best person for the job may be someone who did the job in the past. “Boomerang” employees offer a number advantage:

• They already know your business and culture• They require little training since they’re familiar with the position• They can bring fresh ideas from their previous employer(s), plus the know-how to

implement them for your company• You regain your investment in valuable human capital • Since both parties are familiar with each other, the hiring process goes faster and

costs less

However, before hiring a former employee, it’s important to address the reason why he or she left in the first place.

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Recent statistics released by the federal government show that the number of lawsuits filed in federal district courts under the federal labor laws has increased by approximately 4%, with claims under the Fair Labor Standards Act (which governs employee pay) and the Family and Medical Leave Act (which governs leave for employers with 50 or more employees) up significantly from the prior fiscal year.

Employment lawsuits are continuing to increase. And it’s not just big businesses that are being sued. According to a recent study, a business in the U.S. with at least 10 employees has a 12.5% chance of having an employment claim filed against it. Now more than ever, businesses must take preventive steps to reduce their chances of being sued and, if they are sued, to put themselves in the best position to defend the claim.

HOW COULD A JURY DO THAT?

ANATOMY OF AN EMPLOYMENT LAWSUIT –

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Recent statistics from the U.S. Equal Employment Opportunity Commission (EEOC) show that nearly 90,000 bias charges were filed with the agency in the last fiscal year. Notably, retaliation claims accounted for the highest percentage of charges ever. An employee may claim retaliation when they engage in protected activity (such as making a complaint of harassment or discrimination) and believe their employer took a negative action against them because of the complaint.

The EEOC also made record recoveries in the last fiscal year, including one $240 million jury verdict, the largest in the agency’s history.

Jury VerdictsIt’s no surprise that the significant claims activity discussed above results in jury verdicts in favor of current and former employees. According to a 2014 study of jury verdicts by Thompson Reuters, on average a current or

former employee has nearly a 50% chance of winning a jury verdict. The median jury award nationwide in federal court for all categories of discrimination and harassment was $192,138. Drilling down on those numbers, the median jury award for retaliation was $147,000, for whistle blowers it was $276,000, for disability discrimination it was $216,000, and for race discrimination it was $250,000. 44% of jury verdicts were against service/retail businesses and 10% were against manufacturing/industrial businesses. Also, jury verdicts in state court tend to be higher than those in federal court.

What’s more, most employment laws have “fee shifting” provisions, meaning the employer pays the former employee’s attorney’s fees if the employer loses at trial. As a result, a $150,000 jury verdict can easily cost $400,000 to $500,000 once the cost of paying the employee’s attorney and the company’s attorney are included.

The number of lawsuits filed under the Family and Medical Leave Act in fiscal year 2014

increased 26% over last year.

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The chances of being sued increase significantly if the business operates in

California (42% higher chance than the national average) or the

District of Columbia (32% higher).

How could a jury do that?“The plaintiff does not have any evidence that I’ve done anything wrong. It’s my word against his, so how can he possibly have a case? Plus, this is an at-will state. I can terminate him for any reason, right?” That is what many small business owners will say – and mean it. The reality is that it does not matter, at least not as much as you might think.

For starters, discrimination and harassment are exceptions to the at-will doctrine that were created by Congress and many states. Consequently, the reality is that the at-will defense is rarely an effective defense.

Equally important, a plaintiff does not need “smoking gun” evidence that an employer acted unlawfully. Courts understand that discrimination is normally much more subtle and difficult to prove. As a result, courts allow plaintiffs to use circumstantial evidence to prove their case. Depending on the type of case, examples of circumstantial evidence include:

• The timing of a termination (for example, was it close in time to a recent medical leave?).

• Stray remarks that may seem innocent on their face (such as, “we need a more vibrant and energized workforce”).

• Evidence of how others have been treated in similar circumstances.

• What company policies say or do not say.• Whether the plaintiff was qualified for the

position.• Was the plaintiff replaced by someone

outside of the protected category.• Whether the plaintiff had received good

performance reviews.

A jury is permitted to rule in favor of a plaintiff based entirely on inferences they draw from such circumstantial evidence. Therefore, if a jury concludes that an employer’s story “does not line up with the facts” or otherwise did not justify the action taken, they are free to rule in favor of the plaintiff and conclude the real reason for the employer’s action was unlawful discrimination or harassment.

Lastly, a plaintiff’s burden of proof in court is relatively low. A plaintiff need not prove “beyond a reasonable doubt” that an employer unlawfully engaged in discrimination or harassment. Rather, a plaintiff need only prove that an employer more likely than not discriminated against him or her. In hard numbers, this means that a plaintiff who proves his or her case by a mere 50.1% can win. Do you want a lawsuit against your company to be

42% HIGHER 32%

HIGHER

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ADP® clients can rely on the expertise of their designated Human Resource Business Partner or Relationship Manager to navigate many complex areas of the law to help them avoid claims of discrimination and harassment.

decided by the same odds as a coin toss?When employers understand a plaintiff’s

50.1% burden of proof and a jury’s ability to rely exclusively on inferences drawn from circumstantial evidence, the jury verdicts discussed above become less surprising.

What Can You Do?Though employers are not likely to change the judicial system, they can focus on what they do control:

• Employers must apply their policies consistently and treat similarly situated employees the same.

• Employers must document performance and disciplinary problems.

• Employers must continue to monitor, train and manage their workforce in an ongoing effort to prevent discrimination and harassment.

• Employers should consistently administer company policies and procedures, especially in disciplinary actions and terminations.

• Employers should review their compensation and evaluation systems to make sure there is not a disparate impact on women or minorities.

• Employers should review other policies and practices, such as leave policies, to determine whether they might adversely impact women, minorities or employees with disabilities.

• Employers should promptly and effectively investigate complaints of harassment when they are received. Simply conducting harassment training and having good written policies are not enough.

• Employers should consider effective use of severance agreements at the time of termination.

The number of lawsuits filed under the Fair Labor Standards Act

increased nearly 9% over the last year.

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Federal and State Employment Law Updates

FEDERAL EMPLOYMENT LAW UPDATES:Final Rule Issued for Federal OSHA Recordkeeping and Reporting RequirementsThe federal Occupational Safety and Health Administration (“OSHA”) has issued a final rule for Occupational Injury and Illness Recordkeeping and Reporting Requirements. Under the final rule employers in several new industries are now required to keep OSHA injury and illness records. Additionally, OSHA has revised its reporting requirements for severe injuries and will make an employer’s report of all fatalities, hospitalizations, amputations, or eye losses publicly available on the OSHA website.Effective Date: Federal Plan States, currently in effect. State OSHA Plans will announce their dates independently.

Supreme Court Ruling Validates DOL’s 2010 Interpretation of the APAThe U.S. Supreme Court has held that the U.S. Department of Labor (“DOL”) did not violate the Administrative Procedure Act (“APA”) when it failed to provide the public with notice and an opportunity to comment before it changes its position on the application of the Fair Labor Standards Act’s administrative exemption to loan officers, finding them newly non-exempt. Perez v. Mortgage Bankers Association, et al.Effective Date: Currently in effect.

STATE UPDATES:District of Columbia Increases Protections for Pregnant WorkersA new District of Columbia law will require employers to provide reasonable accommodations to employees affected by pregnancy, childbirth, breastfeeding, and related medical conditions and prohibit employers from requiring an employee to take leave if it is possible for the employee to continue working with reasonable accommodation. The law also requires employers to post and provide employees with a notice of rights.Effective Dates: Currently in effect. Regulations implementing the Act, including procedures for an employer to prove undue hardship, are required within 60 days of the effective date (but may take longer).

District of Columbia Wage Theft Amendment ActThe D.C. Wage Amendment Act’s broad changes to the District of Columbia’s wage and hour laws greatly increase employer obligations, potential penalties, and liability, while creating a cumbersome administrative hearing process. Most significant for many employers are the enhanced timekeeping requirements for non-exempt employees and wage statement requirements for all employees, including exempt employees. The D.C. Mayor’s office has released a model notice which should be provided to employees.Effective Dates: Currently in effect. Employers are required to issue a written notice to each employee within 90 days of the Act’s effective date. Thereafter, employers must provide the notice to all employees at the time of hire or any time the employer’s or employee’s information changes.

Maine Employers Must Provide Sexual Harassment Policy AnnuallyMaine law requires employers to annually provide their employees with notice of the employer’s sexual harassment policy. The employer’s policy must contain, for example, the definition of harassment (with examples), the employer’s internal complaint mechanism, the Maine Human Rights Commission’s complaint process, and an anti-retaliation statement.Effective Date: Currently in effect.

Maryland Ban-the-Box Laws Limit Private Employers’ Criminal Background InquiriesNew ordinances in Montgomery and Prince George’s Counties, Maryland, limit an employer’s ability to inquire into an applicant’s criminal history. The Montgomery County ordinance covers employers who have at least 15 full-time employees and do business in the County including County government. The Prince George’s County ordinance covers employers with at least 25 full-time employees in Prince George County. Effective Dates: Currently in effect.

Massachusetts Parental LeaveAn amendment to the Massachusetts Maternity Leave Act (MMLA), extends leave to males as well as females. Further, the MMLA now also covers leave for the placement of a child with an employee pursuant to a court order. This policy, which is only applicable if the company has or recently had six (6) or more employees nationally, must be applied to Massachusetts employees. Additional leave may be required as a reasonable accommodation. The company may wish to incorporate language regarding procedural issues, such as notice of leave. Eligibility is separate and distinct from eligibility for FMLA leave. Effective Date: Currently in effect.

North Carolina General Assembly enacts House Bill effective for taxable years beginning on or after January 1, 2014.Under this new law, all taxpayers will pay a lower rate and be granted a higher standard deduction. Taxpayers may no longer claim a personal exemption for themselves, their spouse, children, or any other qualifying dependents. Additionally, many deductions and tax credits that impact North Carolina withholding tax are no longer available for tax years beginning on or after January 1, 2014. As a result of this Act, every employer must have all employees provide a new Employee’s Withholding Allowance Certificate, either Form NC-4 EZ or Form NC-4. The new form must be completed by the employee and provided to the employer so the correct amount of state income tax is withheld for any payment periods beginning on or after January 1, 2014. Effective Date: Currently in effect.

New Seattle Washington Minimum Wage and Wage Theft OrdinancesTwo new Seattle ordinances imposing significant workplace changes on employers with employees in the City took effect on April 1, 2015. The highly anticipated and much-discussed Seattle Minimum Wage Ordinance (SMC Ch. 14.19) increases the minimum wage for all employees who perform work within Seattle’s geographic boundaries. The equally significant, but less-publicized, Seattle Wage Theft Ordinance (Ch. 14.20 SMC) addresses employee complaints of nonpayment of wages and tips. Effective Date: Currently in effect.

This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP® is not rendering legal advice.

ADP® assists clients in meeting their compliance challenges. Timely communication, clear action plans and helpful resources allow ADP clients to focus on their business objectives while mitigating risk associated with employment law compliance. A summary of recent significant state and federal HR compliance developments follows below.

Bottom Line26

Mobile entertainment manufacturer saves money and enhances employee productivity James Crutchfield, director of human resources at Insight Industries, recognized the need to create a world-class HR experience for his employees. At the same time, Insight Industries needed to control the time and money it spent on HR administration.

“Our payroll and HR processes involved an awful lot of paper and manual work,” he says, “which impacted productivity organization-wide.”

ADP’s web-based solution gives Invision employees access to a team of specialists across the HR spectrum, paired with integrated tools and technology to respond to inquiries and support changing payroll, HR and benefits administration requirements. According to Crutchfield, “The best part is the ability it gives employees to go online and do things on their own. Self service turned out to be very user-friendly and an outstanding way to improve productivity.”

TO READ MORE, CLICK HERE.

Client:Invision Industries Celebration, FL

Description:Mobile entertainment equipment manufacturer

Workforce:About 160 employees

Why ADP®? • Integrated tools and

technology• Web-based hosted

management solution • User-friendly self service

James Crutchfield, Director of Human Resources

“ ADP saved us considerable money. In our first year, we saved up to $300,000 in our payroll-related costs. We even cut our administrative expenses for time collection in half.”

For more information: 1.800.CALL.ADP www.adp.com

BUSINESS IMPACT

Invision Industries Chose ADP’s Workforce Management Solution to Save Money and Enhance Employee Productivity

COMPANY BACKGROUNDInvision Industries was established in 2003 and soon became the industry standard for rear-seat mobile entertainment equipment, such as flip-down DVD players, in autos, minivans, and sport utility vehicles. The company revolutionized the way manufacturers and new car dealers offer these increasingly popular entertainment products to the buying public. Invision’s headcount has averaged about 160 with most employees located at the company’s manufacturing facility and administrative offices in Florida.

THE CHALLENGE: Reduce the Cost of HR and Payroll AdministrationSelect a Solution that Lets You Control Both Administration and Cost“We had an arrangement with a professional employer organization that was costing us a huge amount of money,” says Invision Industries Director of Human Resources, James Crutchfield. “For one thing, our fee was based on the gross amount of our entire payroll, not on a per-paycheck or per-pay basis. Our payroll was costing us over $50,000 a month, plus an additional $2,000 just to collect, calculate, and process employee time. There was very little automation and nothing was integrated.”

THE CHALLENGE: Increase Employee Satisfaction and Productivity Engage Employees by Giving Them Convenient Access to Their Information “Our payroll and HR processes involved an awful lot of paper and manual work,” Crutchfield explains. “We had a biometric hand punch for time collection, but still had to physically ‘call in’ the payroll for processing. Personnel actions were also part of the overall paper flow. If an employee needed an answer about his or her pay or wanted to change marital status, or needed a copy of a W-2 or previous pay stub, it involved a phone call or written request that was time-consuming.

As employees took time during the workday to handle such matters, the process impacted productivity.”

THE CHALLENGE: Control Costs Associated with HR and Payroll-related ComplianceLeverage the Compliance Expertise of an Experienced Service Provider “Compliance costs were bundled into what we paid the PEO, so we never really saw what all of our real costs were,” says Crutchfield. “I wanted us to be able to see our costs, so we would have an opportunity to do things to control our administrative expenses. At the same time, I knew I was a ‘one-man show’ in HR. That meant I had to have affordable access to professionals and specialists whose knowledge could help us meet our compliance and budget expectations.”

THE SOLUTION: ADP Workforce Now™ Comprehensive HR The ideal administrative remedy for Invision Industries was ADP Workforce Now Comprehensive HR – ADP’s Web-based, hosted workforce management solution. “ADP Workforce Now took us from a manual, paper-based operating environment to an automated solution with much less paper and a lot of administrative control,” recalls Crutchfield.

ADP Workforce Now Comprehensive HR provides companies with access to a team of ADP specialists across the HR spectrum, paired with integrated tools and technology to respond to inquiries and support changing payroll, HR, and benefits administration requirements. “Workforce Now arrived with the ‘staff’ that I had needed all along to create a world-class HR experience for our employees.”

Through an efficient Web-based portal environment, ADP Workforce Now Comprehensive HR provides a single point of online access to information that a client company, its managers, and employees

DO MORE WITH LESS

ATTRACT AND KEEP GREAT EMPLOYEES

HELP MINIMIZE COMPLIANCE RISK*

* ADP does not give legal advice and our services are not a substitute for legal advice or your professional judgment. You should review applicable law in your jurisdiction and consult experienced counsel for legal advice.

27Bottom Line

Client: Classical Charter Schools Bronx, NY

Description: Grades K-8 charter school organization

Workforce: About 95 employees at two locations (expanding to three in August 2015)

Why ADP®? • High level of HR expertise• Efficient, single-source

solution• Fortune 500®-level benefits

coverage

Charter School better manages time and money while improving staff benefits For Classical Charter Schools, managing the administrative side of the organization — like payroll, benefits and HR compliance — was an ongoing challenge. “The fact is, charter schools don’t have the money for multiple administrators,” says Executive Director Lester Long. “Everybody wears multiple hats. When we looked at how to best handle our administrative responsibilities in a different, more efficient way, ADP TotalSource® offered the total package to fit our needs.”Under a co-employment relationship, Classical Charter Schools retains day-to-day control over its employees, while ADP TotalSource manages critical HR and employment administration. Meanwhile, the educational organization is allowed to share certain compliance risks and responsibilities with the country’s largest PEO, and access Fortune 500®-level benefits coverage.

TO READ MORE, CLICK HERE.

Samuel Wilder, Business Manager

“ We applied the savings from using ADP TotalSource to directly improve the benefits and the quality of the work experience for our employees.”

“ The ACA is a complicated subject, but from my experience, once you hear about all the changes and regulations from ADP — in the manner in which they present the information — you get it!”

Health records provider benefits from a trusted business partner’s human capital expertise Medsphere’s corporate HR director, Lisa Ebersole, needed an employee administration solution that was scalable, flexible and provided capabilities to help manage her company’s geographically dispersed staff more efficiently. “With ADP Resource®, we are able to hire and manage a workforce in a high-tech environment, using high-tech tools,” says Ebersole.

As a client of ADP Resource, Medsphere benefits from a comprehensive HR management solution that provides access to HR, payroll, compliance and employee administration tools, and the expertise of a designated HR business partner. The ADP Resource solution helps Medsphere’s HR director spend less time on administrative matters like Affordable Care Act compliance and more time on the HR-related strategic needs of the business.

TO READ MORE, CLICK HERE.

Client:Medsphere Systems Corporation Carlsbad, CA

Description:Electronic health records

Workforce:About 100 employees

Why ADP®? • Online education through

the iLearn training resource • Risk mitigation and

compliance • Secure online access to

employee information

Lisa Ebersole, Corporate HR Director

ADP HR/BPO publishes the Bottom Line free of charge. This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP® is not rendering legal advice or other professional services. ADP does not give legal advice as part of its ADP TotalSource or ADP Resource Services. While every effort is made to provide current information, the law changes regularly and laws may vary depending on the state or municipality. The material is made available for informational purposes only and is not a substitute for legal advice or your professional judgment. You should review applicable law in your jurisdiction and consult experienced counsel for legal advice.

The ADP Logo, ADP, ADP TotalSource and ADP Resource are registered trademarks of ADP, LLC. All other trademarks and service marks are the property of their respective owners. Copyright ©2015 ADP, LLC. All rights reserved. Questions: Please call ADP at (800) 447.3237 MKT275

To learn how our innovations can help power yours, call 1-800-447-3237 or go online to adptotalsource.com

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