States, Companies Continue to Expand Paid Leave Benefits Throughout US

States, Companies Continue to Expand Paid Leave Benefits Throughout US

Though the United States is one of just a handful of countries around the world that does not require organizations to grant their employees paid parental leave by law, recent years have seen more US states pursue mandates of their own, while a growing number of large, nationwide employers have voluntarily adopted more robust policies for working mothers and, increasingly, fathers and caregivers as well.

These trends have been driven by the public conversation and advocacy around parental leave, by a growing body of research showing the various benefits of parental leave to working families, and also by business considerations, as organizations struggle to attract and retain workers (particularly women) in a tight and competitive labor market. The latest research into what employees and candidates value, including Gartner’s Global Talent Monitor, shows that flexibility and work-life balance are becoming more and more important to the workforce. As millennials grow up and start families, this massive generational cohort is voicing a clear expectation that employers will support them—both moms and dads—in balancing career and family obligations.

Several developments have taken place in this area over the past month that employers should be aware of, as they illustrate the accelerating pace at which paid leave benefits are transforming from nice-to-have features to essential—and in a growing number of jurisdictions, mandatory—components of the employee value proposition.

Read more

New York City Bans Pre-Employment Testing for Marijuana

New York City Bans Pre-Employment Testing for Marijuana

In April, the New York City Council passed a bill that would prohibit employers from requiring candidates to undergo testing for marijuana as a condition of employment, becoming one of the first jurisdictions to grant employment-specific protections to marijuana users. Mayor Bill de Blasio, who expressed support for the bill, did not sign or veto it within 30 days of its passage, so it became law on May 10 and will come into effect a year from that date, according to Seyfarth Shaw’s marijuana law blog.

The new law includes exemptions for certain safety-sensitive occupations, including law enforcement, construction, medical and child care, and jobs requiring a commercial driver’s license. It also does not apply to federal and state employees or contractors, nor does it override federal regulations governing transportation workers such as truck drivers and pilots. Employees can still be subjected to marijuana testing if they appear intoxicated at work.

New York State legalized marijuana for medicinal use in 2014; recreational use of the drug remains illegal, but the state legislature is considering a legalization bill, which governor Andrew Cuomo has said he intends to pass and sign in this legislative session. In New York City, De Blasio supports legalization, while the NYPD announced last year that it would stop arresting most people caught smoking marijuana in public. Given that this pledge was central to Cuomo’s re-election campaign platform in 2018, it is likely that New York will soon join the growing number of US jurisdictions where recreational marijuana is legal, including Alaska, California, Colorado, Maine, Massachusetts, Michigan, Nevada, Oregon, Vermont, and Washington state, as well as Washington, DC.

Read more

Brexit Extension Is No Relief for UK Employers

Brexit Extension Is No Relief for UK Employers

Business leaders in the UK may have breathed a sigh of relief last month when the country’s deadline for leaving the EU, originally scheduled for March 29, was pushed back until October 31. The extension is good news insofar as it gives the UK government more time to finalize an agreeable Brexit plan and avoid crashing out of the union, with potentially devastating economic consequences. Likewise, it gives British organizations more time to shore up their own Brexit plans, if they had not done so already. For these organizations, however, and particularly for their HR functions, the extended Brexit deadline is a decidedly mixed blessing, and it would be a mistake to treat it as a reprieve.

One of the most disruptive effects Brexit has had on the UK for nearly three years now has been to introduce major uncertainty into the business environment. Not knowing whether, or when, or how Brexit would finally happen has made it difficult for organizations to make long-term plans that depend on the outcome of this process. It would be one thing if the UK and the EU had decided that Brexit would definitely take place at the end of October, under a finalized deal and with a specified transition plan. The extension agreed upon in April did none of that; instead, it gave the UK government another six months to try and accomplish what it has been unable to do thus far and rally majority support in Parliament around either the deal Prime Minister Theresa May made with her European counterparts last year, or some alternative arrangement that the EU would also accept.

In other words, the uncertain environment that has prevailed since 2016 remains in place: Organizations still don’t know when Brexit will happen and whether it will be orderly or chaotic. As Steve Hawkes, deputy political editor at the Sun, remarked when the extension was announced, another six months of unpredictability “is possibly the worst outcome for business.”

If the UK ratifies the Brexit deal before October, the UK may leave the EU at the start of the following month. If the country fails to hold elections to the European Parliament at the end of this month, it will crash out with no deal on June 1. If Parliament still can’t pass a deal by the new deadline, the country faces the prospect of a no-deal Brexit in November or an additional extension, assuming the EU is willing to grant one. The delay has even amplified uncertainty around whether it will ultimately happen at all, though the government remains committed to achieving Brexit — and organizations must continue preparing for it.

To that end, businesses in the UK cannot afford to slow down their contingency planning for the various Brexit scenarios that may come in the next six months. This is especially true for HR, as Brexit’s impact on workforce planning, retention, and employee engagement are some of its most significant consequences for organizations. While the overall picture of the future remains cloudy, there are a few things of which HR leaders can be sure, at least in terms of what risks they need to plan against. Here are some things UK businesses should be thinking about as they move ahead with their post-Brexit talent strategies:

Read more

April Jobs Report Shows Lowest US Unemployment in 50 Years

April Jobs Report Shows Lowest US Unemployment in 50 Years

The latest jobs numbers from the US Department of Labor, released on Friday, show that the US economy continues to create jobs at a robust pace despite historically low levels of unemployment. According to the April report from the Bureau of Labor Statistics, 263,000 jobs were created last month, overshooting analysts’ predictions in the range of 185,000-190,000. The unemployment rate fell to 3.6 percent, a level not seen in the US since December 1969.

Wages also rose, albeit more modestly than economists would expect to see in such a tight labor market: Average hourly earnings were up 0.2 percent month-to-month for a 3.2 percent increase over the last 12 months. While this was nearly the best year-over-year growth figure since the end of the Great Recession in 2009, it doesn’t make up for years of stagnation, while inflation wiped out a significant portion of those gains, Vox highlighted in its coverage of the jobs report:

The latest pay data suggests that workers and labor unions will continue to strike to force businesses to boost wages. Slow income growth has been the weakest part of the US economy in its recovery from the Great Recession. Wages have barely kept up with the cost of living, even as the unemployment rate dropped and the economy expanded. April’s 6-cent average hourly wage hike suggests more of the same, despite a surprising 10-cent jump in February.

Over the past year, the cost of food and housing has gone up, so paychecks have had to stretch further. But because of recent falling gas prices, the annual inflation rate has fallen to 1.9 percent, compared to a high of 2.4 percent in 2018 (based on the Consumer Price Index). So when you take inflation into account, workers’ real wages only grew about 1.3 percent within the past year.

There are also reasons to hesitate before celebrating the decline in the unemployment rate, the New York Times pointed out, noting that “the factors behind it aren’t as hopeful as the headline number itself”:

Read more

Two Studies Suggest Incentives May Not Drive Participation in Wellness Programs

Two Studies Suggest Incentives May Not Drive Participation in Wellness Programs

A new study by researchers at the University of Chicago and Harvard, recently published in the Journal of the American Medical Association, sheds new light on the impact on increasingly popular workplace wellness programs on employees’ actual health outcomes. The effectiveness of these programs has not been extensively researched, as they are relatively new and rely on an evolving set of strategies and technologies, and studies so far have drawn mixed conclusions. The new research, Kaiser Health News senior correspondent Julie Appleby explains, had a more sophisticated design than many past studies in this area: The researchers randomly chose 20 BJ’s Wholesale Club outlets to offer a wellness program to all their employees, then compared their results with 140 other stores with no program, covering a total study group of almost 33,000 employees.

Unfortunately, the researchers found no significant correlation between the introduction of the wellness program and a strong improvement in employee health:

After 18 months, it turned out that yes, workers participating in the wellness programs self-reported healthier behavior, such as exercising more or managing their weight better than those not enrolled. But the efforts did not result in differences in health measures, such as improved blood sugar or glucose levels; how much employers spent on health care; or how often employees missed work, their job performance or how long they stuck around in their jobs.

The BJ’s wellness program offered small incentives for participation: Employees could receive about $250 in small-dollar gift cards for taking courses on nutrition, exercise, and other wellness topics. Around 35 percent of eligible employees completed at least one course throughout the duration of the study. One wellness program vendor commented to KHN that the limited impact of the program may have come down to the incentives being too small:

Jim Pshock, founder and CEO of Bravo Wellness, said the incentives offered to BJ’s workers might not have been large enough to spur the kinds of big changes needed to affect health outcomes. Amounts of “of less than $400 generally incentivize things people were going to do anyway. It’s simply too small to get them to do things they weren’t already excited about,” he said.

Read more

State and Local Minimum Wage Hikes Continue This Year Throughout the US

State and Local Minimum Wage Hikes Continue This Year Throughout the US

A consistent trend in the US business environment over the past three years has been a shift from federal to state and local governments as the main source of regulatory pressure on employers. Even as federal regulations stall or are rolled back under the Trump administration, businesses are facing higher minimum wages, paid leave mandates, and other new regulations at the state and local level. This trend has continued so far in 2019. While the new Democratic majority in the House of Representatives plans to push for an increase in the federal minimum wage from $7.25 to (eventually) $15 an hour, their intent is largely to put political pressure on Republicans with regard to labor issues, and the effort is unlikely to bear much fruit as long as Republicans control the Senate and the White House.

Meanwhile, however, the patchwork of state and local wage floors is rising and growing more complex. Minimum wages are going up this year in at least 22 US states plus Washington, DC, as well as a number of cities and counties. Most of these increases reflect automatic increases or inflation indexing built into the states’ minimum wage laws, while a few are the result of legislation or referenda passed last year.

Read more

Google Will Require Full Benefits for its Contractor Workforce by 2022

Google Will Require Full Benefits for its Contractor Workforce by 2022

Google revealed on Tuesday that it was phasing in a policy that will require its outside suppliers to provide health insurance, paid parental leave benefits, and a $15 minimum wage to employees working for the tech giant on a temporary or contract basis. The announcement was made in an internal memo issued to all employees and shared with the Hill:

Google will now require that the outside companies employing the workers provide them with comprehensive health care, a minimum wage of $15 per hour, 12 weeks of parental leave and a minimum of eight days of sick leave.

Google is beginning the efforts in the U.S., where there are not specific regulations around paid parental leave or comprehensive health care. Other countries in which the company operates have specific legislation around paid parental leave and other benefits. The company said it made sense to start in the U.S. because Google is setting a standard.

Google is giving the “suppliers” — companies that employ the temporary workers and contractors — until January to institute the minimum wage requirements. A Google spokesperson said it will give suppliers until 2022 to institute comprehensive health care benefits.

Google has faced increasing pressure from its “TVC” (temporary, vendor, and contractor) workers, as well as an activist community of its full-time employees, to improve the conditions under which TVCs work for the company. A day before the memo was issued, the Guardian reported on a letter signed by more than 900 Google workers calling for significant changes in the way the company deals with its contingent workforce. The letter originated from TVCs working on the global “personality team” responsible for crafting the voice for Google Assistant, most of whom had their contracts abruptly and unexpectedly shortened in early March:

Read more