Labor and Insights April 2016 eNewsletter
Labor and Insights April 2016 eNewsletter


Feature Article
Unemployment Audits – Take Control of Your UI Costs

Unemployment costs are beginning to come down from all time highs over the last 6 or 7 years, but they are still one of the most expensive employer costs.  Why then, do most employers take for granted that their tax rates and the charges to their Unemployment Insurance (UI) reserve accounts are correct?  Honestly, it is because most employers do not know that many of these charges (and therefore, their UI tax rate) are incorrect.

Currently, depending on the state in which you are doing business, between 6 and 14 percent of all charges to your UI account are incorrect – with most of those mistakes being overcharges.  These errors lead to higher UI tax rates (or for reimbursable employers – higher direct costs) that are calculated in error.  With this kind of error rate, should you simply trust that no mistake was made to your account?

Read on.

Tip of the Month
Remember, Managers Are Employees Too

Disengaged managers have disengaged employees.

According to Gallup’s State of the American Manager report, managers account for at least 70% of the variance in employee engagement scores across business units. Sadly, the percentage of engaged managers is only slightly higher than the percentage of engaged employees. Pretty scary when you consider that only 30% of today’s U.S. workforce is engaged.

Most organizations understand the importance of engaging their employees. Unfortunately, efforts often largely focus on the engagement of its workforce and what managers can do to help grow their satisfaction. But, what’s being done for the managers who are first and foremost an employee too?

Read on.

Q & A
The Attention Span of Generation Y Employees


Am I imagining this or do Gen Ys have one-second attention spans?  How do you get and keep their attention?


According to Bridging the Generation Gap authors Linda Gravett and Robin Throckmorton, many Gen Ys do come across looking like they are unable to keep focused for a period of time. However, the true issue is that we are unable to keep their interest.  Because of the fast-paced, high-tech world in which they grew up, many Ys do require a great deal of mental stimulation and find it challenging to focus.

Read on.

Legal Updates
Increased Litigation Of Worker Misclassification Cases Should Place Employers On Notice Of Potential FLSA Violations

Worker misclassification violations under the Fair Labor Standards Act (FLSA) continue to be at the forefront of the U.S. Department of Labor's (DOL) enforcement priority list and of the plaintiffs' bar, which has filed lawsuits on behalf of workers who are allegedly misclassified as non-employees (i.e., independent contractors) or as exempt from overtime compensation. Two recent cases highlight the need for employers to review their workforce in order to prevent or mitigate potential damages resulting from such lawsuits and DOL investigations. In Arunin v. Oasis Chicago, Inc., a federal judge in the Northern District of Illinois held that delivery drivers for a company that operates restaurants in the Chicago area are entitled to unpaid wages because they were misclassified as independent contractors under the FLSA and Illinois Minimum Wage Law.


Read more.

Update on Publication of the New FLSA Overtime Regulations

The final overtime rule is edging closer to release: the U.S. Department of Labor (USDOL) has sent its final changes for determining which workers are eligible for overtime pay to the Office of Management and Budget (OMB) for an administrative review. Procedurally, this is the final step before a new regulation is published as a final rule. OMB's final review could take several months or just a few weeks. Once complete, the final rule will be published in the Federal Register and take effect within 60 days of publication.

Commentators believe that the final rule will work its way quickly through OMB and most likely be published by July 7, meaning it would take effect on Labor Day, Sept. 5. That has obvious symbolic meaning.


Read more.

Volume I
Issue XI
April 2016
In This Issue

Unemployment Audits –
Control Your Costs

Remember, Managers Are
Employees Too

> Q & A
Attention Span of
Generation Y

Worker Misclassification
Cases Should Place
Employers On Notice

Publication of the New
FLSA Overtime Regulations

Request and Employee

Contact Us

The Arnold Group

Corporate Office
530 S. Topeka
Wichita, KS 67202
t: 316.263.9283


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