Active Job Seeking Remains Low

ARLINGTON, Va. – WEBWIRE – Thursday, December 12, 2019

U.S. employers are offering less of a compensation increase to attract talent and lure workers from their current jobs, according to Gartner, Inc. While historically companies have extended, on average, a 15% pay increase to get people to switch jobs, the latest data from Gartner’s 3Q19 Global Talent Monitor report shows this compensation premium has declined over the past six months to approximately 13%.

Gartner’s most recent Global Talent Monitor report also shows that only one-third of currently employed U.S. workers indicated they were actively looking for a new job in 3Q19 — well below the global average of 40%. This U.S. number represents a significant drop from a high of 41% in 1Q19, while the international average has remained steady over the same time period.

Additionally, for the second consecutive quarter, 51% of U.S. workers reflected their intent to stay with their current employer. This figure is well above the international average of nearly 40%.

“The dramatic decline in active job seeking that we witnessed in the second quarter did not rebound much in the third quarter, even as employee business confidence and perceptions of the job market remained stable,” said Brian Kropp, chief of research for the Gartner HR practice. “This coupled with companies paying less to entice workers to switch jobs demonstrates additional signs of a tighter U.S. labor market from both the employer and employee perspectives.”

In 3Q19, the number of U.S. workers reporting high discretionary effort on the job — or going above and beyond their regular duties — remained at 21% as in the previous quarter, higher than the global average of 17% and staying above the 20% mark in back-to-back quarters for the first time since 4Q17 and 1Q18.

What Employees Want

Gartner data reveals that compensation has ranked as the No. 1 reason why U.S. employees leave an employer since 1Q18, a trend that continued in 3Q19. Future career opportunities and people management came in as the second and third reasons, respectively, employees cited for leaving a job.

Although wage increases have remained somewhat stagnant over the past few years, companies have an opportunity to retain talent by providing their workforce with new experiences and development programs to help them learn new skills and strengthen their employability. Managers play a vital role as well; by creating environments in which employees feel better connected to the organization, they help strengthen the bond between the company and workers — and create higher performers.

“Faced with less than ideal compensation increases, U.S. workers are looking for other benefits and value they can extract from their jobs,” said Mr. Kropp. “Gartner data shows that even if wage increases remain low, workers will stay on with companies that develop programs which enhance their skills and invest in their professional growth within the company.”

Workplace Strategies to Retain Talent

The unemployment rate remains under 4% with more jobs openings than there are people to fill them. To attract talent and increase the number of workers who intend to stay in their current positions, companies need to develop programs that increase employee satisfaction and engagement, offer programs that workers value most, and deliver rewards that acknowledge workers’ efforts and successes.

Companies can differentiate themselves within the labor market by developing a strong Employee Value Proposition (EVP) that identifies the workplace elements employees desire from their employers, including compensation and benefits, personal development, corporate culture and work-life balance. When companies invest in developing and delivering a strong EVP, they better position themselves to attract talent and heighten employee engagement.

“Talent is a company’s greatest asset and employees the greatest advocates,” Mr. Kropp added. “Developing a compelling EVP that shows true dedication to their workforce’s wants and needs enables companies to boost employee engagement and decrease annual employee turnover by just under 70%. Additionally, a strong EVP also can increase new hire commitment by nearly 30%.”

Global Talent Monitor data is drawn from the larger the Gartner Global Labor Market Survey that is sourced from nearly 30,000 employees in 40 countries and regions. Conducted quarterly, the survey reflects market conditions during the quarter preceding publication.

About the Gartner HR Practice

The Gartner HR practice brings together the best, relevant content approaches across Gartner to offer individual decision makers strategic business advice on the mission-critical priorities that cut across the HR function. Additional information is available at https://www.gartner.com/en/human-resources. Follow news and update from the Gartner HR Practice on Twitter and LinkedIn using #GartnerHR.

About Gartner

Gartner, Inc. (NYSE: IT), is the world’s leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities today and build the successful organizations of tomorrow.

Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We are a trusted advisor and objective resource for more than 15,000 organizations in more than 100 countries — across all major functions, in every industry and enterprise size.

To learn more about how we help decision makers fuel the future of business, visit gartner.com.

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Source: WebWire

https://www.webwire.com/ViewPressRel.asp?aId=251605https://www.webwire.com/ViewPressRel.asp?aId=251605

Tuesday, December 3, 2019

The IRS has not yet finalized the ACA reporting forms (i.e., the 1094-B/C and 1095-B/C) for the 2019 tax year, so it is no surprise that the IRS issued guidance this week extending the deadline to furnish the forms to employees and covered individuals (see Notice 2019-63). In addition to extending the deadline to furnish the forms, the IRS also issued transition relief for “B Form” filers that would waive penalties for failure to furnish the B Forms if certain conditions are met.

As a quick background, the ACA reporting requirements are set forth in Sections 6055 and 6056 of the Internal Revenue Code (the “Code”). Under Code Section 6055, health coverage providers are required to file with the IRS, and distribute to covered individuals, forms showing the months in which the individuals were covered by “minimum essential coverage.” Under Code Section 6056, applicable large employers (generally, those with 50 or more full-time employees and equivalents) are required to file with the IRS, and distribute to employees, forms containing detailed information regarding offers of, and enrollment in, health coverage. In most cases, employers and coverage providers will use Forms 1094-B and 1095-B and/or Forms 1094-C and 1095-C. Highlights of the IRS’s recent guidance are provided below.

Section 6055 Transition Relief

When enacted, Section 6055 served two primary purposes: (1) to allow covered individuals to substantiate compliance with the individual mandate, and (2) to provide the IRS with information necessary to determine whether covered individuals were eligible for premium tax credits on the ACA Marketplace. Now that the individual mandate has been repealed, covered individuals no longer need documentation showing that they were enrolled in minimum essential coverage.

The IRS explained that it is evaluating whether and how the Section 6055 reporting requirements should change given the individual mandate’s repeal. In the meantime, the IRS issued transition relief for the 2019 tax year such that no penalties will be assessed against a B Form filer for failing to furnish the forms to covered individuals if two requirements are met. First, the coverage provider must post a notice on its website stating that an individual’s B Form is available and can be requested at any time. This notice must include an email address and physical address where the request can be sent and a phone number where individuals can get additional information. Second, the coverage provider must provide any requested form within 30 days of the request.

This transition relief will primarily benefit insurance companies providing coverage in the group market, non-applicable large employers, and non-employer group coverage providers (such as multiemployer plans). Applicable large employers sponsoring self-insured plans are generally required to use the C Forms, which combine the reporting obligations under Sections 6055 and 6056. The IRS explains that the transition relief does not apply to forms to be furnished to full-time employees of applicable large employers.

Importantly, the transition relief applies only the requirement to furnish the forms to covered individuals. The B Forms still must be submitted to the IRS by the deadline noted below.

Deadline Extended

As it has in the past when necessary, the IRS extended the deadline to furnish the ACA reporting forms to employees and covered individuals. The deadline to file with the IRS, however, was not extended.

	Old Deadline	New Deadline
Deadline to Distribute Forms to Employees and Covered Individuals	Jan. 31, 2020	March 2, 2020
Deadline to File with the IRS	Feb. 28, 2020 (paper)   March 31, 2020 (electronic)	NO CHANGE

The regulations issued under Code Section 6055 and 6056 allow for an automatic 30-day extension to distribute and file the forms if good cause exists. An additional 30-day is extension is available upon application to the IRS. Consistent with prior extensions, Notice 2019-63 provides that these extensions do not apply to the extended due date for the distribution of the forms, but they do apply to the unchanged deadline to file the forms with the IRS.

Good Faith Compliance Standard Renewed

The IRS also continued the interim good faith compliance standard under which the IRS will not assess a penalty for incomplete or incorrect information on the reporting forms if a filer can show that it completed the forms in good faith. As in prior years, this relief only applies if the forms were filed on time. Thus, filers would be wise to distribute and file forms, even imperfect ones, timely and should document their good faith efforts.

Those that do not file by the new deadlines have a more uphill battle to avoid penalties under Code Sections 6721 and 6722. In that case, the IRS would apply a reasonable cause analysis when determining the penalty amount for a late filer. As noted by the IRS in prior guidance, this analysis will take into account such things as whether reasonable efforts were made to prepare for filing (e.g., gathering and transmitting data to an agent or testing its own ability to transmit information to the IRS) and the extent to which the filer is taking steps to ensure that it can comply with the reporting requirements for 2019.

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Source: National Law Review

https://www.natlawreview.com/article/irs-extends-aca-reporting-deadline-and-issues-transition-relief

https://www.msn.com/en-us/money/companies/chipotle-has-nurses-check-if-workers-who-call-in-sick-are-just-hungover/ar-BBXLsjd

Theron Mohamed | 4 December, 2019 

Chipotle has nurses check whether employees who call in sick are genuinely unwell or just hungover.

"We have nurses on call, so that if you say, 'Hey, I've been sick,' you get the call into the nurse," CEO Brian Niccol said at a Barclays conference on Wednesday. "The nurse validates that it's not a hangover, you're really sick, and then we pay for the day off to get healthy again."

The Mexican restaurant chain trumpeted the policy as part of its improved food-safety practices. It suffered a norovirus outbreak among customers in Virginia in 2017, and an internal investigation found it was caused by store managers failing to follow safety procedures and an employee working while they were unwell.

"We have a very different food safety culture than we did two years ago, okay?" Niccol said. "Nobody gets to the back of the restaurant without going through a wellness check."

However, a healthy workforce isn't always enough to prevent customers from getting sick.

"There's probably people in here that might have the common cold," Niccol said at the conference. "Even if we clean up after you, and we don't use a cleaner that kills that germ, it hangs around for the next customer.

"Even though our team member did nothing wrong, there was nothing wrong with our food, we have to hold ourselves to a higher standard to make sure that the dining room gets sanitized in a way that it hasn't been in the past," he said.

Chipotle has a solution: "We've got cleaner that actually kills norovirus when you clean the tables in the dining room," Niccol said.

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Source: MSN.com

https://www.msn.com/en-us/money/companies/chipotle-has-nurses-check-if-workers-who-call-in-sick-are-just-hungover/ar-BBXLsjd

November 26, 2019 07:12 ET | Source: Yoh

PHILADELPHIA, Nov. 26, 2019 (GLOBE NEWSWIRE) -- American worker confidence hit a record high in Q3 2019, surpassing its previous all-time high set in Q1 of this year. Following a mid-year fall in Q2 2019, the national Worker Confidence Index™ (WCI) rose 11.8 points to 116.7 in Q3 2019. The Worker Confidence Index™ is a survey of U.S. workers from HRO Today Magazine and Yoh, the leading international talent and outsourcing company owned by Day & Zimmermann, which gauges workers’ perceptions of the four key aspects of worker confidence: perceived likelihood of job loss, perceived likelihood of a promotion, perceived likelihood of a raise, and overall trust in company leadership.

Overall, the index grew from 104.8 Q4 2018 to 116.7 in Q3 2019. This is the largest quarter-over-quarter increase the index has seen in its nearly five-year history. Of the WCI’s four indices, the job security index was the only index to report a quarterly decrease. The remaining three – likelihood of a promotion, likelihood of a raise and trust in company leadership indices – all increased. Compared to the same time last year, those same three indices were higher overall, with the Job Security Index being the only index to fall, down by 2.7 points.

Americans’ perceived likelihood of a promotion saw the biggest jump quarter-over-quarter, rising from 110.1 in Q2 2019 to 133.9 in Q3 2019. Perceived likelihood of a raise saw the second-largest increase, going from 104.4 in Q2 2018 to 121.1 in Q3 2019. Both of these were the largest such increases quarter-over-quarter for these indices in the history of the WCI. Perceived job security and trust in company leadership saw minor falls and rises, respectively.

“With the WCI showing worker confidence at an all-time high and unemployment numbers remaining historically low, it shows companies are investing strongly in the most important part of any healthy business – their talent,” said Kathleen King, Senior Vice President, Enterprise Solutions, Yoh. “However, this good news does present a challenge. With high confidence and high unemployment, it means hiring managers, HR and businesses in general need to work that much harder to identify candidates and fill their employment gaps. Only by working with the best staffing partners and taking advantage of the most up-to-date recruiting technology can companies truly keep up in today’s competitive talent landscape.”

Other takeaways:

• Workforce data from the Bureau of Labor Statistics (BLS) remains consistent with findings regarding job security.
  Despite a slight fall from 104.3 in Q2 2019 to 101.5 in Q3 2019, the job security index remains high. This follows workforce data from the BLS, which found that by the end of Q3 2019, there were 1.1 percent more workers than at the end of 3Q 2018, bringing the total number of people in the U.S. workforce to over 117.2 million. Americans, overall, are getting more jobs and keeping them longer.
  
  
• Worker Confidence Index suggests the Consumer Confidence Index (CCI) will increase at the end of 2019.
  The WCI has correctly predicted the direction of consumer confidence for the next quarter’s end in 14 of the last 18 quarters. An increase in the WCI in the prior quarter would suggest an increase in the CCI at the end of the next quarter.
  
  
• Millennials anticipate a promotion more than any other age group.
  Millennials (those under 35 in the WCI) were the most inclined to anticipate a promotion compared to other age groups, with about 45% reporting a promotion is likely over the next 12 months. Those aged 35-44 (38.2%), 45-54 (20.8%), 55-64 (12.5%), and 65+ (3.7%) are all less confident in an upcoming promotion.

To view the entire study, please visit, http://www.yoh.com/hro-today-employee-well-being-study.

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Source: GlobeNewswire, Inc.

https://www.globenewswire.com/news-release/2019/11/26/1952538/0/en/U-S-Worker-Confidence-Index-Hits-Record-High-in-Q3-2019-Led-by-Increases-in-Perceived-Likelihood-of-a-Promotion-Raise-and-Trust-in-Company-Leadership.html

ROCKVILLE, Md. (November 12, 2019) — Institutional Shareholder Services Inc. (ISS), the leading provider of end-to-end governance and responsible investment solutions to the global financial community, today released updates to its 2020 benchmark proxy voting policies. The updated policies will generally be applied for shareholder meetings on or after Feb. 1, 2020.

To ensure its global voting policies take into consideration the changing views and needs of its institutional investor clients and the perspectives of companies and the broader corporate governance community, ISS gathers input each year from institutional investors, companies, and other market constituents worldwide through a variety of channels and over many months. The updates announced today have been informed by the careful consideration of the many inputs received.

“This is the fifteenth year in which a broad range of institutional investors, companies and other interested market constituents globally have provided thoughtful feedback through ISS’ annual benchmark policy survey, roundtables and other meetings, and through our public open comment period on proposed changes,” said Georgina Marshall, Global Head of Research and Chair of the ISS Global Policy Board.  “ISS’ clients include some of the most sophisticated institutional investors across the world and our transparent, market-based approach to evolving the policies that are the basis of ISS’ informed, independent research and voting recommendations, continues to help support them in making considered voting decisions in any particular situation, in light of their own investment and governance philosophies, stewardship responsibilities and fiduciary duties.”

Among the changes, ISS’ policy approach for newly-public companies in the US is being updated by creating two distinct policies that address (1) problematic governance provisions and (2) multi-class capital structures with unequal voting rights, including providing a framework for addressing acceptable sunset requirements for problematic capital structures in newly-public companies.   A number of considerations will be taken into account when assessing the reasonableness of a time-based sunset provision, however sunset periods beyond seven years from the date of the IPO will not be considered reasonable. The update in this area also clarifies and narrows the focus of the policy to certain highly problematic governance structures.  Additional updates to the U.S. policy with broader application cover share repurchase programs, and shareholder proposals on independent board chairs.

In Europe, new policies are being introduced for application in Continental Europe, UK and Ireland with regard to board gender diversity. These policies will generally provide for recommending a vote “against” the chair of a company’s nomination committee (or other relevant directors on a case-by-case basis) where the company has no female directors on the board. This in line with a similar policy previously announced for 2020 in the U.S.  Also, as many EU member states are implementing the EU Shareholder Rights Directive II that prescribes a shareholder vote on remuneration policies and reports, policy updates are being introduced for European companies that consider the responsiveness of companies to significant shareholder dissent on pay-related votes, and how remuneration committees use and explain their use of discretion in managing executive pay, including how relevant environmental, social, and governance (ESG) matters have been taken into account when determining executive remuneration outcomes. Such factors may include workplace fatalities and injuries, significant environmental incidents, large or serial fines or sanctions from regulatory bodies and/or significant adverse legal judgments or settlements. A policy change on maximum director election terms is also being announced for European companies that will take effect beginning in 2021. Following the one-year transition period, the policy update will expand to all Continental European markets the expectation that votes on directors’ elections will be for terms of a maximum of four years .

In Japan, ISS is establishing a new policy regarding the board independence level for companies with a controlling shareholder. Under the new policy, ISS will recommend a vote against top executive(s)  at a company that has a controlling shareholder unless the board includes at least two independent directors and at least one-third of the board members are independent directors based on ISS independence criteria for Japan.

The full set of ISS benchmark policy updates for 2020 also include changes covering board gender diversity in India, director accountability for governance failures in South Korea and a price limit for off-market repurchases of shares in Singapore.

ISS is also enhancing its Pay-for-Performance model for the U.S. and Canada by incorporating the use of Economic Value Added (EVA) metrics in the model’s secondary Financial Performance Assessment (FPA) screen. EVA is a framework that applies a series of uniform, rules-based adjustments to financial statement accounting data, and aims to measure true underlying economic profit and capital productivity. EVA provides a strong framework for comparing performance across companies of varying business models and capital structures and many of the key measures in the current FPA, such as ROIC and EBITDA growth, have comparable measures under the EVA framework.

For full details of all ISS benchmark policy updates for 2020, please visit the ISS Policy Gateway. To access comments received by ISS during our public open comment period on the main 2020 policy updates, please click here.

ISS will be hosting a one-hour informational webcast on the 2020 policy updates as well as other developments in the governance landscape, on December 4 at 4:00p.m. GMT | 11:00a.m. EST | 8:00a.m. PST. To register, please click here.

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Source: Institutional Shareholder Services Inc.

https://www.issgovernance.com/iss-announces-2020-benchmark-policy-updates/

Cindy Robbins, former president and chief people officer at Salesforce, speaks at the Riveter Summit in New York City on November 6, 2019. Chuck Kennedy Photography

By Sissi Cao • 11/16/19 8:30am

In Salesforce CEO Marc Benioff‘s new autobiography Trailblazer, the billionaire entrepreneur dedicated a generous stack of pages to revisiting a career anecdote from 2015, when his president and chief people officer at the time, Cindy Robbins, lobbied him to order a company-wide compensation assessment. This subsequently led Salesforce to spend three rounds of financial boosters totaling nearly $9 million to finally close the pay gap between male and female employees at the 40,000-people company.

Since then, Salesforce has been celebrated as a role model in achieving gender pay equality, staff diversity and other cultural workplace metrics among large tech companies. And Benioff, with his high-profile philanthropic efforts and civic engagement, has earned a reputation as “the nice guy in Silicon Valley.”

But, is Salesforce’s success story replicable for the rest of the male-dominated tech industry? After all, not every boss is as pro-reform as Benioff. And, even if they are, not every CEO can afford a multi-million-dollar budget to implement drastic changes.

Earlier this month, Observer spoke with Robbins, who left Salesforce in May after 13 years, at the Riveter Summit in New York City about these topics. She also shared advice on how to negotiate a raise with a tough boss and how to push for managerial changes within a company.

Marc Benioff told a pretty impressive story in his book about how Salesforce closed the gender pay gap. Unfortunately, not everyone has a boss like Marc Benioff. And a large portion of the workforce is employed by much smaller companies—many of which are privately held and not subject to the same level of public scrutiny as Salesforce. Do you think Salesforce’s practice is replicable at those firms at all?
Absolutely! When we are talking about rewriting the rules in the workplace, it’s no longer about the management team or the CEO rewriting the rules in the workplace. It’s about the employees. They should come together as a team and say, “Hey, we should be looking at diversity more” or “We should be looking at women in the workplace more.” It’s a bottom-up approach.

So, it’s not about finding the Marc Benioff. If there’s something that you believe you’re passionate about and you want to change in your company, try finding coworkers who feel the same. It’s more comfortable in many ways when it’s not just one person going up a hill. You’re all going up the hill together.

What about startups? I think, before we talk about closing the pay gap, one of the barriers facing minority groups at small offices is that it’s hard to prove that the pay gap exists and that it’s a systematic problem because the sample size is too small.
I’ve talked to a lot of young CEOs who are starting their companies, and what I tell them is: What an opportunity you have right now!

For a company like Salesforce, the discussion was often “would’ve, could’ve, should’ve” like back in 1999. But we didn’t know better. I believe Marc said in his book that there was no management class in college in his time that told you this is something that you should be looking at.

These CEOs who are just starting their companies have such a great opportunity to do this from the ground floor and do it now. Put together a  job architecture system that makes sense. Put together your compensation practices. Be transparent with your employees about your compensation philosophy. Because the more you can be transparent as a company, the more fulfilled your staff is going to be.

What advice do you have for women who are thinking about asking for a raise?
You always hear people say that women should speak up, that women should say this or ask that. It’s just still really hard to do, because you don’t want to be seen as the complainer or the difficult one.

My advice is, think about the questions you are going to ask or be asked. When you are asking for a raise, what are the components about why you’re asking? Is it because you feel your performance has been stellar? Is it because you talked to somebody and feel you’re not being paid in a fair way? You have to think about those questions. Don’t just say, “Well, I’m not comfortable with my pay” or “I think I should be paid more.”

When Salesforce began its effort to readjust the proportion of men and women in executive positions, Benioff set a target that there should be 30% women in a typical management meeting, based on the gender split of Saleforce’s entire workforce. Do you think that’s a good benchmark? Would 50% be more fair?
That’s a very big question. Is 30% the right number? Maybe not. Maybe it is a starting point, and then in the following years, the number should be going up. I think for any company you want to keep progressing up. You want that 30% to become 35, 40 and eventually 50.

Also, it’s not just about getting a seat in the room. As women, you need to know why you earned that seat. In my case, it’s not because I’m filling the 30% but because I’m doing well. It might be luck that got you invited to the first meeting, but then it’s your responsibility to stay in that room and get invited to the next meeting and the meeting after that.

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Source: Observer 

https://observer.com/2019/11/salesforce-cindy-robbins-interview-pay-gap-men-women/

AUTHOR

Valerie Bolden-Barrett

PUBLISHED

Nov. 14, 2019

Dive Brief:

• It's critical that HR be able to accurately price workers' skills, PayScale said in a Nov. 12 press release.
• That ability is central to the hiring process, which demands that HR professionals take both individuals' skills and geography into account when setting pay, the organization said; "it’s not enough to simply pay according to a location because pay can vary by specific jobs or industries." To that end, the company said, it will now offer a tool that aims to help employers put a price on skills by using big data and artificial intelligence.
• An understanding of the value of skills can help others, too, Heather Taylor, PayScale’s head of data products, said in the statement: When managers understand the value of skills, they can be more transparent when talking with employees about professional growth and opportunities.​

Dive Insight:

As employers move to formalize pay bands for roles and skills to ward off discrimination claims, pay transparency has risen in popularity.

According to experts, this can mean an employer encouraging workers to discuss pay information (which is permitted by the National Labor Relations Act anyway) or an employer making public its pay bands. 

Some of this has been driven by outside sources. To take the guesswork out of the equation for job seekers, for example, job boards are increasingly rolling out tools like LinkedIn's Salary Insights, which appear on job listings with an estimate of what a position is likely to pay.

But as Taylor noted, pay transparency also promises to ease some difficult discussions for managers around pay and promotion. A 2017 PayScale study revealed that employees' feelings about their organization's approach to pay fairness and transparency had a higher impact on job satisfaction than their actual pay. When managers are equipped with a deep understanding of how pay is set, they can communicate that to workers, boosting employee satisfaction and decreasing turnover.

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Source: HR Dive

https://www.hrdive.com/news/candidates-managers-need-hr-to-accurately-price-skills/567212/

By Lisa Nagele-Piazza, J.D., SHRM-SCP

November 12, 2019

NEW ORLEANS—Deregulation has been a major priority for the U.S. Department of Labor (DOL) during President Donald Trump's administration, and the federal government wants to make processes less burdensome for employers, according to DOL officials.

Many DOL regulations have "literally not been updated since the 1950s or 1960s, and yet we all know that the workplace has changed dramatically," said Solicitor of Labor Kate O'Scannlain during a Nov. 8 session of the American Bar Association's 13th Annual Labor and Employment Law Conference.

The DOL is looking for ways to lower compliance costs for employers, O'Scannlain said, but there are regulations that the department is not willing to change, such as safety standards.

Cheryl Stanton, the DOL's Wage and Hour Division administrator, noted that the department is still focused on enforcement. "We have not changed our commitment to low-wage workers who are in vulnerable situations," she said. The division is also focused on community outreach, she said, to help employers comply with rules and regulations and to ensure that workers understand their rights.

Here are some of the DOL's top priorities, according to O'Scannlain and Stanton.

1. Defending the New Overtime Rule

The DOL issued its highly anticipated federal overtime rule in September. Under the final rule, employees who make less than $35,568 must be paid overtime premiums starting Jan. 1, 2020. Among other changes to the federal Fair Labor Standards Act's (FLSA's) "white-collar" exemptions from overtime pay, the new rule also raised the salary cutoff for highly compensated employees.

Worker advocates have argued that the threshold still isn't high enough. "I am happy that it went up, obviously," said Michele Fisher, an attorney with Nichols Kaster in Minneapolis. But the federal level is so low that many states are working to increase their minimum exempt salary even higher, she said. "What you are going to see from the plaintiffs' bar … is us bringing state actions."

O'Scannlain said the department carefully crafted the regulations and is confident about the final rule. "We are ready to defend them," she said.

2. Expanding Apprenticeship Programs

In June, the DOL announced a proposed rule to expand apprenticeship programs and help close the skills gap, O'Scannlain noted. The rule would create a process to establish industry-recognized apprenticeship programs (IRAPs), which are customizable apprenticeship models that the DOL has called "major milestones in the continuing effort to expand apprenticeships in the United States."

The proposed apprenticeship programs would be available to certified industry groups, schools, nonprofits and unions, and would be largely free from regulatory oversight, but would not change any requirements of the current DOL-regulated apprenticeship programs. 

3. Updating Fluctuating Workweek Rules

The DOL is also working on proposed updates to the fluctuating workweek method of calculating overtime. Employers can use the fluctuating workweek method under the FLSA to calculate overtime pay for salaried nonexempt employees who work hours that vary each week. The recently released proposal would cover more workers and provide employers with greater flexibility by letting them pay bonuses and other incentive-based compensation under this method. The public may submit comments on the proposal by Dec. 5.

4. Changing Tip-Sharing Rules

On Oct. 7, the DOL announced a proposed rule about tip sharing under the FLSA. The proposal would make it easier for employers to require "front-of-the-house" employees—such as servers and bartenders—who earn at least the minimum wage and customarily receive tips to share those gratuities with cooks, dishwashers and other "back-of-the-house" workers who aren't usually tipped. The proposed rule would prohibit employers from keeping employees' tips and is open for public comment until Dec. 9.

5. Updating the 'Regular Rate' Calculation

Another proposed FLSA update would change the definition of the "regular rate" of pay, which is used to calculate overtime premiums. The regular rate includes hourly wages and salaries for nonexempt workers, most bonuses, shift differentials, on-call pay, and commissions. However, it excludes health insurance, paid leave, holiday bonuses and other discretionary bonuses, and certain gifts. 

Many employers aren't sure if certain perks must be included in the regular rate of pay. So instead of risking a lawsuit, some are choosing not to offer competitive benefits. Employers may feel more comfortable offering additional rewards if the proposed changes are finalized.

6. Clarifying the Joint-Employer Rule

The DOL also proposed a multifactor test to determine whether businesses are joint employers and share liability for FLSA wage and hour violations. The proposal aims to provide clarity for businesses, which likely won't be deemed joint employers if they stay out of the day-to-day employment decisions of their contractors and franchisees.

7. Allowing Online Benefit Plan Disclosures

An Employee Benefits Security Administration proposal would allow employers to provide benefit plan disclosures online rather than by mail. O'Scannlain said this change could result in a cost savings of about $2.5 million over 10 years. The rules would apply to plan disclosures required by the Employee Retirement Income Security Act, and the DOL has posted a fact sheet on the proposed e-disclosure safe harbor. The comment period closes on Nov. 22.

Stanton said the DOL wants to hear from employers and workers on these proposals because comments help the department shape regulations. 

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Source: Society for Human Resource Management (SHRM) 

https://www.shrm.org/ResourcesAndTools/legal-and-compliance/employment-law/Pages/Labor-Department-Officials-Discuss-Priorities-for-2020.aspx

By Cortney Moore | FOXBusiness | November 7, 2019

Chipotle Mexican Grill announced it will provide both mental healthcare and financial wellness benefits to its employees to help them keep up with the fast food grind.

In a press release that went out Tuesday, the chain said it will extend access to these benefits to more than 80,000 workers in 2020 through Employee Assistance Programs.

"This is just the beginning of how we're strategically investing in the well-being of our employees and their families," Chipotle's Chief People Officer Marissa Andrada said in the release. "Our vision for people is to create a culture where employees can thrive and pursue their passion and by extending access to all levels and enriching our Employee Assistance Program, we are ensuring that our employees can build mental fitness and bring their best selves to work every day."

An employee rings up a customer while others prepare orders at a Chipotle Mexican Grill restaurant in Hollywood, Calif., July 16, 2013. (Patrick T. Fallon/Bloomberg via Getty Images, File)

Mental health and emotional support will be provided through in-person, phone or virtual visits with a licensed counselor. Streamlining accessibility to experts in the health industry is meant to aid Chipotle employees’ personal, professional, financial and legal concerns.

Other benefits Chipotle is adopting for next year include a mobile-friendly digital portal, a financial wellness platform, and preferred provider organization healthcare plans for hourly employees as well as gym discounts.

The benefits will also be available to the family members of Chipotle associates, according to the release.

In its own words, the fast-food chain is taking this step to “minimize the effect of mental health in the workplace.”

This news comes a month after Chipotle introduced a debt-free college tuition opportunities for select employees through the Chipotle Cultivate Education benefits program.

Chipotle isn’t the only food chain that is trying to retain talent by treating its employees well.

A view of the new Starbucks Reserve Roastery during a press conference in Shanghai, China, December 5, 2017. REUTERS/Aly Song - RC1CA10F0B00

In early September,  coffee giant Starbucks announced employee benefits that target mental health, professional development and safe transportation via ride-share options.

“Through strategic, long-term investments in labor hours, training, and streamlining tasks and processes critical to running a store, we will work to alleviate some of the pressure and stress that often limits our store managers to lead and grow,” Starbucks CEO Kevin Johnson said in a letter to company employees at the time.

Starbucks hasn’t forgotten its employees who are on the ground and providing versatile food services for customers. The chain is changing the layout to some of its stores to manage online and in-person orders.

“It was very difficult for our baristas to just try to force 80 drinks within a 15-minute window on one small handoff point, so we have extended in 200 stores across the New York, Manhattan, Financial District areas, we’ve expanded physically in that area because we know the need for convenience is growing,” Starbucks Chief Operating Officer Roz Brewer told FOX Business.

FILE - In this Thursday, April 25, 2013, file photo, a car stops at the drive-thru at a Burger King restaurant near downtown Los Angeles. Restaurant Brands International, the parent company of Burger King and Tim Hortons, reports financial results Mo

Burger King was embroiled in criticism earlier this year when it partnered with Mental Health America for an advertising campaign that encouraged customers to “#FeelYourWay” during Mental Health Awareness Month in May.

The campaign involved Burger King branded Real Meal menu item that took a direct shot at McDonald’s Happy Meal with moody declarations printed on each box. The chain also put out a corresponding video that showed difficult circumstances that can try a person’s mental health while also promoting the edgy meal kit.

Despite the creative move, the campaign received backlash from social media users and former employees who accused the burger chain of capitalizing on depression and not taking mental health seriously.

One viral tweet from a previous assistant manager cited her experience at Burger King as a challenging ordeal.

“This tweet has me feeling a type of way because when was an assistant manager at BK I was so overworked and stressed that I cried in the walk in multiple times,” Twitter user Clari shared. “Bring this energy to your regional managers, smaller franchise owners and your employees.”

Burger King✔@BurgerKing

not sure who needed to hear this today, but it’s ok not to be happy all the time. all that matters is that you #FeelYourWay. https://youtu.be/PjxRUEA0Tdo 

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5:02 AM - May 1, 2019

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In following tweets, Clari said Burger King managers can work anywhere between 60 and 100 hours per week depending on how big of an operation it is. She added that this is a common issue with the fast food industry as a whole rather than it being exclusive to Burger King.

Burger King did not immediately respond to FOX Business’ request for comment on employee benefits and whether it will follow suit with initiatives targeting mental health.

In a separate FOX Business report, the U.S. unemployment rate hit record lows – reaching 3.5 percent in September. With so many Americans working, fast food chains may very well feel it is necessary to extend health-conscious benefits or initiatives to remain competitive.

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Source: Fox Business

https://www.foxbusiness.com/markets/chipotle-adds-mental-health-benefits-for-employees

Ashlea Ebeling | Forbes Staff | Nov 6, 2019, 10:28am

How much can you save for retirement in 2020? The Treasury Department has announced inflation-adjusted figures for retirement account savings for 2020: 401(k) contribution limits are up; traditional IRA contribution limits stay the same; almost all the other numbers are up.

The amount you can contribute to your 401(k) or similar workplace retirement plan goes up from $19,000 in 2019 to $19,500 in 2020. The 401(k) catch-up contribution limit—if you’re 50 or older in 2020—will be $6,500 for workplace plans, up from $6,000. But the amount you can contribute to an Individual Retirement Account stays the same for 2020: $6,000, with a $1,000 catch-up limit if you’re 50 or older.

So super-savers age 50-plus can sock away $33,000 in these tax-advantaged accounts for 2020. If your employer allows aftertax contributions or you’re self-employed, you can save even more. The overall defined contribution plan limit moves up to $57,000, from $56,000.

Sounds unreachable? During 2018, 13% of employees with retirement plans at work saved the then maximum of $18,500/$24,500, according to Vanguard’s How America Saves. In plans offering catch-up contributions, 15% of those age 50 or older took advantage of the extra savings opportunity. High earners are really saving: 6 out of 10 folks earning $150,000+ contributed the maximum allowed, including catch-ups.

Want to join in? We outline the numbers below; see IRS Notice 2019-59 for technical guidance. For more on 2020 tax numbers: Forbes contributor Kelly Phillips Erb has all the details on 2020 tax brackets, standard deduction amounts and more. We have all the details on the new higher 2020 retirement account limits too.

401(k)s. The annual contribution limit for employees who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan is $19,500 for 2020—a $500 boost over 2019. Note, you can make changes to your 401(k) election at any time during the year, not just during open enrollment season when most employers send you a reminder to update your elections for the next plan year.

The 401(k) Catch-Up. The catch-up contribution limit for employees age 50 or older in these plans is $6,500 for 2020. That’s the first increase since 2015 when the limit rose to $6,000. Even if you don’t turn 50 until December 31, 2020, you can make the additional $6,500 catch-up contribution for the year.

SEP IRAs and Solo 401(k)s. For the self-employed and small business owners, the amount they can save in a SEP IRA or a solo 401(k) goes up from $56,000 in 2019 to $57,000 in 2020. That’s based on the amount they can contribute as an employer, as a percentage of their salary; the compensation limit used in the savings calculation also goes up from $280,000 in 2019 to $285,000 in 2020.

Aftertax 401(k) contributions. If your employer allows aftertax contributions to your 401(k), you also get the advantage of the $57,000 limit for 2020. It’s an overall cap, including your $19,500 (pretax or Roth in any combination) salary deferrals plus any employer contributions (but not catch-up contributions).

The SIMPLE. The limit on SIMPLE retirement accounts goes up from $13,000 in 2019 to $13,500 in 2020. The SIMPLE catch-up limit is still $3,000.

Defined Benefit Plans. The limitation on the annual benefit of a defined benefit plan goes up from $225,000 in 2019 to $230,000 in 2020. These are powerful pension plans (an individual version of the kind that used to be more common in the corporate world before 401(k)s took over) for high-earning self-employed folks.

Individual Retirement Accounts. The limit on annual contributions to an Individual Retirement Account (pretax or Roth or a combination) remains at $6,000 for 2020, the same as in 2019. The catch-up contribution limit, which is not subject to inflation adjustments, remains at $1,000. (Remember that 2020 IRA contributions can be made until April 15, 2021.)

Deductible IRA Phase-Outs. You can earn a little more in 2020 and get to deduct your contributions to a traditional pretax IRA. Note: Even if you earn too much to get a deduction for contributing to an IRA, you can still contribute—it’s just nondeductible.

In 2020, the deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $65,000 and $75,000, up from $64,000 and $74,000 in 2019. For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out range is $104,000 to $124,000 for 2020, up from $103,000 to $123,000.

For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $196,000 and $206,000 in 2020, up from $193,000 and $203,000 in 2019.

Roth IRA Phase-Outs. The inflation adjustment helps Roth IRA savers too. In 2020, the AGI phase-out range for taxpayers making contributions to a Roth IRA is $196,000 to $206,000 for married couples filing jointly, up from $193,000 to $203,000 in 2019. For singles and heads of household, the income phase-out range is $124,000 to $139,000, up from $122,000 to $137,000 in 2019.

If you earn too much to open a Roth IRA, you can open a nondeductible IRA and convert it to a Roth IRA as Congress lifted any income restrictions for Roth IRA conversions. To learn more about the backdoor Roth, see Congress Blesses Roth IRAs For Everyone, Even The Well-Paid.

Saver’s Credit. The income limit for the saver’s credit for low- and moderate-income workers is $65,000 for married couples filing jointly for 2020, up from $64,000; $48,750 for heads of household, up from $48,000; and $32,500 for singles and married filing separately, up from $32,000. See Grab The Saver’s Credit for details on how it can pay off.

QLACs. The dollar limit on the amount of your IRA or 401(k) you can invest in a qualified longevity annuity contract is increased to $135,000 from $130,000. See Make Your Retirement Money Last For Life for how QLACs work.

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Source: Forbes

https://www.forbes.com/sites/ashleaebeling/2019/11/06/irs-announces-higher-2020-retirement-plan-contribution-limits-for-401ks-and-more/#5d0caea133bb