HR PREPARATION FOR 2010

OVERALL ECONOMIC OUTLOOK IS BRIGHT BUT EMPLOYERS’ FUTURE WILL BE PARTLY CLOUDY

By Michael S. Lavenant.

For those of us who attended the Camarillo Economic Outlook Luncheon in November, 2009, we were reminded that Camarillo is a great place to work and live.  The local business economy is showing signs of rebounding and the real estate market is definitely looking bright.  The start of the new year typically brings with it some encouragement for businesses as they look forward to new opportunities for growth – coupled with a feeling of hope and optimism by consumers, customers, patrons and investors.

In addition to receiving positive news for Camarillo and our local economy, from a national perspective, there has also been some positive labor news.  In November, the US Department of Labor indicated that only 11,000 jobs were loss – 100,000 less than expected!  This report came on the heels of reports that the job loss estimates for September and October were too high – we loss 150,000 less jobs than anticipated

While the overall economic climate appears to be clearing on the horizon, the labor front always brings some clouds to employers.  In the past few years, we have had to deal with changes to the FMLA, ADA, workers’ compensation reforms, and sexual harassment prevention training.  This year, there are no big clear storms that we will have to weather.  However, that does not mean that it will always be sunny.  There are several storms brewing on the state and national level that could wreak havoc with our hopeful business growth and stabilization.  Here are few storms to consider in your forecast:

Health Care

The Obama administration and Congress are pushing for an overhaul of our present health care system.  As the plans stand at this early stage, employers may carry a large portion of the funding burden.

EFCA/Card Check

Traditionally, in order for an employer to face a union election, there has to be a secret-ballot election within 42 days only after the union has established a requisite percentage of interest by the employees.  Unions are pushing President Obama and the Democrat-majority Congress for major reforms that would eliminate the 42-day period and shorten the wait to 5-10 days.  It would also eliminate the need for a secret-ballot election.  If this law goes into effect, unions would be able to intimidate employees into signing authorization cards without giving them the complete story.  EFCA/Card Check is very bad for business.  The current systems works just fine.

Meal & Rest Periods:

The California Supreme Court is expected to reach its decision on a key case that will determine whether an employer must force an employee to take a lunch or rest break, or only make the break available.  The employers and employees desire flexibility, but plaintiffs’ attorneys are pushing for stringent rules that make it easier to file frivolous and expensive class actions for technical violations based on an employee’s voluntary decision to forego a lunch break for personal reasons, or to leave earlier in the day to spend time with their family.

FMLA/Leave Laws:

There are proposals to further amend the FMLA to require mandatory paid sick leave for up to 8 weeks, authorization for employee’s to take time off for a child’s extracurricular activities, and paid time off for doctor’s visits.

Hopefully the anticipated hurricanes of state and federal legislation fail to take fore, or at the most, become tropical depressions.  We will be updating the forecast as it develops.  Stay tune for storm watch 2010.