Minnesota Labor & Employment Law Blog : Minnesota Employment Lawyers & Attorneys : Abrams & Schmidt Law Firm : Unfair Labor Practices, Workplace Investigations : Minneapolis, St. Paul, Twin Cities

Last December, I wrote about the 9th Circuit Court of Appeals case between the City of Ontario, California and its employee, Police Sergeant Jeff Quon which was appealed to the United States Supreme Court. On June 17, the U.S. Supreme Court issued its decision (pdf).

The question before the U.S. Supreme Court was whether or not the City’s review of text messages sent and received on an employer issued pager violated Sergeant Quon’s Fourth Amendment’s protection against unreasonable search and seizure? Sergeant Quon argued, he had a reasonable expectation of privacy in the text messages he sent and received.

The Court acknowledged, we

“…must proceed with care when considering the whole concept of privacy expectations in communications made on electronic equipment owned by a government employer. The judiciary risks error by elaborating too fully on the Fourth Amendment implications of emerging technology before its role in society has become clear. . . .Prudence counsels caution before the facts in the instant case are used to establish far-reaching premises that define the existence, and extent, of privacy expectations enjoyed by employees when using employer-provided communication devices. . . .At present, it is uncertain how workplace norms and the law’s treatment of them, will evolve.”

The U.S. Supreme Court did not address whether Quon had an expectation of privacy, but instead stated, “[t]he case can be decided by determining that the search was reasonable even assuming Quon had a reasonable expectation of privacy.” The Court in choosing to dispose of this case on narrower grounds, assumed several propositions arguendo: (1) Quon had a reasonable expectation of privacy in the text messages sent on the pager provided by the City; (2) The City’s review of the transcript of the text messages constituted a search within the meaning of the Fourth Amendment; and (3) The principles applicable to a government employer’s search of an employee’s physical office apply with at least the same force when the employer intrudes on the employee’s privacy in the electronic sphere.

The Court held, “[b]ecause the search was motivated by a legitimate work-related purpose, and because it was not excessive in scope, the search was reasonable. . .Petitioners did not violate Quon’s Fourth Amendment rights.”

Because the Court chose to decide this case on very narrow grounds, which are very fact-specific, not much guidance was provided to other employers dealing with technology issues. What employers need to continue to do is:

1. Make sure policies are updated and cover all your current technology.
2. Policies should clearly outline employees’ expectations concerning personal use of technology and equipment.
3. Insure your policies are being followed and not contradicted by management.
4. Train employees on all policies, including new or revised policies.
 

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Just like Dorothy following the yellow brick road to Oz battling lions, tigers, and bears, the path to determining the right classification for summer employees, interns, independent contractors, and volunteers can be hazardous. Mischaracterizing a worker can lead to sanctions and fines for Employers. Due to current economic challenges, concerns are being raised that Employers are misclassifying workers as interns, volunteers and independent contractors to save from paying wages, benefits, and taxes. The Department of Labor is paying close attention and auditing workplaces.

There is a presumption anyone performing work for a “for-profit” enterprise is an employee.  In Minnesota, the nature of the employment relationship is determined by using the same tests, and in the same manner as employee status is determined under both workers’ compensation and unemployment insurance law. Compensation of Minnesota employees is determined under Minn. Stat. § 181.722, Subd. 3, and the federal Fair Labor Standard Act.  Dorthy Gale had to stay on the yellow brick road to try to avoid the wicked witch and her flying monkeys.  As an Employer the path to proper classification of workers will avoid the ire of the Department of Labor.   Correctly assessing a  worker as an employee, student/intern, independent contractor, or volunteer is critical.   

Employee: An employee is someone who works for hire in the services of another. The existence or non-existence of an employment relationship between two parties is a question of fact.   To the extent the facts lead to a conclusion the parties have an employment relationship, the Employer is responsible for state and federal taxes, workers’ compensation, and unemployment insurance. 

Student/Intern: The use of student/interns in the workplace has increased over the years. This group of workers is currently the subject of close scrutiny by the Department of Labor.  Student/interns are not considered employees under both state and federal law, if their use in the workplace generally passes six tests offered by the Department of Labor. The tests are:

1. The training experience is similar to what is provided at school;
2. The training experience is for the benefit of the student/interns;
3. The student/interns do not displace regular employees;
4. The employer providing the training receives no immediate advantage from the activities of the trainees;
5. Student/interns are not necessarily entitled to a job at the conclusion of the training; and
6. The employer and the student/interns understand the work is unpaid training. (Note: a reasonable stipend may be permitted)

 Independent Contractor: Independent contractors are hired to perform special services of a limited scope and duration, and they typically perform the same services for a variety of businesses. The standards in Minnesota to be considered in determining whether or not an individual is an employee or an independent contractor include: 

1. The right to control the means and the manner of performance;
2. The mode of payment;
3. The furnishing of materials or tools;
4. The control of the premises where the work is done; and
5. The right of the employer to discharge the individual. 

Generally, the more control an Employer has over the individual performing the work, the work site, and the nature, quality, and manner in which work is performed, the more likely the relationship is an employer-employee relationship vs. an independent contractor arrangement.

Volunteer: Volunteers freely offer services to non-profits, charitable organizations, and churches at no charge without expectation of compensation. “…Any individual who renders service gratuitously for a nonprofit organization,” is not considered an employee. Minn. Stat. § 177.23 Subd. 7 (7).   Volunteers at a non-profit organization are not subject to workers’ compensation or unemployment benefits. Someone performing work on behalf of a for-profit enterprise, is presumed to be an employee.

Properly classifying workers, including summer workers, is important to your business. Minn. Stat. § 181.722 prohibits the misrepresentation by an Employer of the nature of an employment relationship with its workers, including not requesting a worker enter into an agreement, or sign a document which results in misclassification of a worker’s status. An Employer may be subject to penalties for improperly classifying workers. Be sure to intentionally follow the yellow brick road to avoid the lions, tigers and bears along the way. OH MY!

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Do you have employees? Do your employees enjoy sports? Well, this week there is a trifecta of major sporting events going on. Game 6 of the Stanley Cup Finals is televised tonight, tomorrow is Game 4 of the NBA Finals and Friday is the kick-off concert for the World Cup. It seems there is something for every sports fan. What does this mean for your business? Well, that depends on how you address workplace distractions.

Mr. Daniel Schwartz with the Connecticut Employment Law Blog has some excellent points about the opportunities and distractions which can accompany various sporting events, in particular this year’s World Cup, which will be televised between 8:00 a.m. – 5:00 p.m for the next month.

I agree with Mr. Schwartz suggestions and recommend you plan ahead.

• Remind employees about your policy on using computers for “personal use.”
• Review your PTO or vacation policy and decide how much flexibility you are able to use to address employees’ requests for time off.
• Encourage employees to watch during their lunch hour, and allow some flexibility in scheduling breaks and lunch hours to accommodate game time.
• Encourage professional behavior in the workplace.

These tips can also be applied to any other high profile televised events which may be distracting to your employees and affect productivity at your workplace.
 

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Many firms have blogged about the most recent U.S. Supreme Court decision, Lewis v. City of Chicago No. 08-974 (May 24, 2010) including Ford & Harrison and Jackson Lewis.

In Lewis, the City of Chicago gave a written examination to applicants seeking positions with the city as firefighters. After the examination, the applicants with passing scores were categorized as “well qualified” or “qualified.” More than a year after receiving notice of the examination results, several African-American applicants who had been categorized by the City of Chicago as “qualified,” but had not been hired, filed discrimination charges with the Equal Employment Opportunity Commission (EEOC). Federal law required EEOC charges be brought within 300 days after the unlawful employment practice occurred. Lewis and others then filed suit against the City alleging, the City’s practice of selecting only applicants who scored 89 or above, categorized as “well qualified,” had a disparate impact on African-Americans in violation of Title VII. The City objected claiming the petitioners had not filed the EEOC charges within the required 300 days.

The issue before the U.S. Supreme court was, “[w]hether a plaintiff who does not filed a timely charge challenging the adoption of a practice – here, an employer’s decision to exclude employment applicants who did not achieve a certain score on an examination – may assert a disparate-impact claim in a timely charge challenging the employer’s later application of that practice.” The U.S. Supreme Court held, a plaintiff may timely challenge an employer’s later application of a practice, as long as he alleges each of the elements of a disparate-impact claim.

What is disparate impact? Disparate impact is defined as, “an unnecessary discriminatory effect on a protected class caused by an employment practice or policy that appears to be nondiscriminatory.” What is a protected class? A protected class is, “a group of people intended by a legislature to benefit from the protection of a statute.”

Since the enactment of Title VII of the Civil Rights Act of 1964, employers have known they are prohibited from discriminating against an individual based on their race, color, religion, sex, or national origin. However, as originally enacted, Title VII did not expressly prohibit employment practices that caused a disparate impact on individuals. In 1971, the United States Supreme Court first recognized “disparate impact” claims.

What does this decision mean for employers? It isn’t when a policy or practice is adopted that may start the time clock for discrimination or disparate-impact claims, but when the policy or practice is applied/used that is important.

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I have previously posted about the topic of “at-will” employees and cautioned employers that it is possible to create an expectation of job security in the documents issued to employees, thus negating the “at-will” status.

In the case Ellis v. BlueSky Charter School, A09-1205 (Minn. Ct. App. 2010) (pdf) the school director challenged his termination based on language in his employment agreement. Mr. Ellis was hired as school director for the 2008-2009 school year. An employment agreement was executed between Mr. Ellis and the school board stating, “[t]his is a general at will agreement.” It also set forth the work year as July 1, 2008 – June 30, 2009 and provided, “[p]ositions will automatically renew for one year after one year of service unless specific actions are taken by the board before April 15th of each year.” Mr. Ellis was terminated by the board on May 7, 2009.

In Minnesota, an employment contract for a fixed term is generally interpreted as terminable only for cause. The Minnesota Court of Appeals in an unpublished decision held in this case, “[t]he plain language of the “at-will” phrase overrides the general rule for construing a fixed-term contract, expressly replacing any implication that might have been drawn from the reference to start and end dates. The asserted tension between the at-will declaration and the stated dates of service does not create ambiguity.” Mr. Ellis’s position was determined to be at-will.

If you are hiring new employees, make sure their employment status is clear to them. If an employee is “at-will,” tell them so.

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April 28, 2010 was Workers Memorial Day. U.S. Secretary of Labor Hilda L. Solis issued a nice statement in honor of the memory of workers killed on the job. Employees are the life blood of most businesses. They are who get the work done and keep a business going.

Employees are injured on a daily basis in workplace accidents. When this happens it affects a business operations and finances. It causes employees to lose time from work to recover, it diverts the attention of other employees to cover the work of the injured employee, and it will affect an employer’s worker’s compensation rating.

What can you do to prevent workplace injuries?

• Make sure your employees have the proper safety equipment.
• Make sure employees have the proper training.
• Make sure employees keep their work areas clean.

If you provide a safe work environment, and train your employees, you won’t have workplace injuries affecting your company’s bottom line.

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All workplaces should have a social media policy in place which outlines behavioral expectations for employees. This includes non-profits, governmental agencies, as well as private sector businesses. It is pretty difficult to discipline an employee for spending too much time on Ebay or Facebook, or for sharing corporate news through Twitter, without specific guidelines in place.

I previously blogged about the need for social media polices in your workplace. Employers should consider the scope of their social media policy and make sure the policy fits their business model. Do you want employees to be sharing business information on social media? How does social media use by employees fit into your business public relations plan? Is it necessary to limit an employee’s use of social media? What are potential business advantages and disadvantages as a result of employees using social media? Should you exercise some type of control over social media and funnel it through one source?

If you are still not convinced you need a social media policy, the Federal Trade Commission recently posted its "Guides Concerning the Use of Endorsements and Testimonials in Advertising."   It indicates employers could be liable for false statements about their  buisness/products made by employees through social media, and that employees are required to disclose their employment relationship to your buisness when making any endorsements.

Social media policies should address your unique business needs. Many model policies are available on-line, however one size does not fit all.  You don’t need to recreate the wheel while drafting your own social media policy, you just need to tailor it to fit the needs of your business.

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Anyone engaged in business wants to increase profits, streamline efficiency, and save money. This is true if you are running a manufacturing plant, designing buildings, or installing high end fiber optics. Following good solid business practices and practicing fiscal management are key principles to business success.

The soft side to a successful business is often underestimated. I am talking about “employees” or “talent.” While employee wages and benefits can be one of the most expensive line items in a business budget, the non-cash, human element of employing workers can be grossly underestimated.

Depending on which survey you believe, worker dissatisfaction seems to be a problem for many workplaces to some degree. This may be attributable to a variety of factors including the economy, increased pressures at work and home, or generational differences between workers and supervisors. A general restlessness amongst employees is not good for any business. To determine if you have a problem in your business, the first step is to assess your employees current level of satisfaction.

The opposite of employee dissatisfaction is what every business owner should want, that is loyalty from its employees. Harvey Mackay, author of “Outswimming the Sharks,” is on the circuit promoting his new book about job search secrets. He identifies a common theme among job hunters as, “It’s not all about the money.” He suggests four things can breed loyalty of employees to a business or organization:

• Professional development: Employees who are challenged and learn new skills stick around longer. Mentoring is a tool to keep employees growing professionally.

• Coaching and feedback: Employees like to hear how they are doing and that their contributions matter.

• Positive work environment: Surroundings and co-workers make a difference in job satisfaction, and a little fun helps too.

• Good bosses: People don’t leave jobs, they leave bosses.

All of these will lead to increased profits, streamlined efficiency, and saving money. Loyal employees enjoy being at work, experience less absenteeism, are more productive, and they are less likely to engage in litigation against their employers.

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As the City of Detroit is learning, discrimination claims under the Americans with Disabilities Act may not result from your typical disabilities. Susan McBride, a city employee, filed a lawsuit under the Americans with Disabilities Act in 2007, claiming the City violated her rights under the ADA by failing to accommodate her chemical sensitivity. Ms. McBride claimed a life-long chemical sensitivity to scented substances such as perfume, body lotion, aftershave, cologne, hand cream, hair spray, deodorant, and various cleaning compounds. Exposure to these and other irritants caused headaches, nausea, chest tightness, cough, and rhinitis and required her to seek medical care. When a coworker refused to quit wearing perfume Ms. McBride complained to her supervisor and requested the City implement and enforce a “no-scent policy” as an accommodation to her chemical sensitivity. The City denied her request and offered no alternative accommodation.

A disability determination under the ADA (now updated and revised as the ADAAA) is to be made on a case-by-case basis. The City of Detroit filed a motion to dismiss Ms. McBride’s case in 2007, but the motion was denied. (pdf) Recently, the City of Detroit settled out of court with Ms. McBride for $100,000. It will also be putting up signs warning workers to avoid wearing scented products. Because the case was settled, it is not possible to say if her chemical sensitivity would be considered a disability under the ADA or ADAAA.

What do employers need to take away from this case? A few things spring to mind:

(1) Take employee complaints seriously.
(2) Address issues promptly to avoid unnecessary costs later.
(3) Consider if a policy might fix a problem.

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Maybe you have heard of this concept or maybe not, it is a new trend in workplaces called ROWE, which stands for Results-Only-Work-Environment. ROWE is a management strategy where employees are evaluated on their performance and productivity, and not their time or presence in the workplace. ROWE allows employees to work from home or during less conventional hours, as long as productivity goals are met. ROWE was co-founded by Cali Ressler and Jody Thompson.  According to the ROWE founders, the strategy can help a business:

• Increase productivity and efficiency
• Attract and retain talented employees
• Optimize work space
• Eliminate wasteful work processes
• Increase teamwork and morale among employees

In Minnesota, Hennepin County currently has 500 employees who participate in ROWE and an additional 1,500 county workers are being trained in ROWE. Full-time Hennepin County employees are still required to maintain a 40 hour work week.

In this time of economic uncertainty, perhaps ROWE can benefit your workplace and save you money, while increasing productivity and job satisfaction.

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The debacle of Toyota continues to play out in the media. Today, the embattled car manufacturer once touted as the most successful in the world, is the subject of U.S. government safety investigations and numerous court cases. Toyota owners are suing over the loss of value of their vehicles and families are suing over the tragic loss of at last count 34 lives, involved in crashes attributed to unexplained acceleration problems. You don’t need a crystal ball to predict Toyota stands to lose billions of dollars, or that the global impact on the manufacturer will continue for years to come.

How could this have happened to the car manufacturer? Didn’t they develop their own “lean” manufacturing and production process which has been adopted by other corporate giants trying to emulate Toyota’s success? Didn’t Toyota have a book written about their corporate climb to success called The Toyota Way, which details the 14 management principles that drove them to the top of the heap of automobile manufacturers? 

Despite developing corporate principles covering philosophy, people, process, and problems, Toyota fostered a culture that prevented reporting of the acceleration malfunctions. Toyota’s fall from grace can’t be attributed to just one thing. Instead it should be viewed as a series of events including:

• poor supplier control,
• lack of leadership,
• employing too many “yes” people,
• failing to see an automobile as the sum of its parts,
• human resources problems,
• procrastination, etc.

Intervention at a variety of individual points in the chain of events could have prevented this corporate train wreck. Unfortunately, in the words of an old Japanese saying, “The nail that stands out was not encouraged to be different, but instead it was pounded down to conform.”

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Under the Occupational Safety & Health Act of 1970, businesses and employers are responsible for providing safe and healthy workplaces for employees. OSHA is assigned to enforce these standards, provide training, education, and assistance.

OSHA is proposing to revise its Occupational Injury and Illness Recording and Reporting regulation by restoring a column for identifying work-related musculoskeletal disorders on the OSHA form 300. The existing requirements on when and under what circumstances employers must record musculoskeletal disorders on their illness/injury logs remains the same.

If you want to provide input on the regulation you may submit comments about the proposed rule electronically prior to March 15, 2010. A public meeting on the proposed rule will be held on March 9, 2010.

We will keep you posted on these regulatory changes.
 

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Many times employees are promoted to management positions because they are great producers. Unfortunately, the skills needed to be a star employee, do not translate to being a great boss.

Linda Hill wrote an article in the Harvard Business Review titled, “Becoming the Boss.” She suggests, new bosses mistakenly think the road to success lies in ordering subordinates around. There is nothing further from the truth. Authority and leadership emerge as a result of the operation of time, the establishment of credibility, and the demonstration of character, competence, and influence. Hill suggests new bosses need to be armed with realistic expectations about supervision, and actively seek out opportunities for coaching and mentoring.

Lighter reading for a new boss may be a review of the submissions for the Internet contest sponsored by Heliotrope Books. The independent publisher is compiling psycho boss stories for inclusion into a new book titled, “Jobs of the Damned.” Rate Your Boss websites are another popular source for horror stories about workplace bullies and poor managers. Learn from their mistakes and do the opposite.

Watching Michael Scott at the helm of the Dunder Miflin Paper Company on the television show “The Office,” is yet another learning tool. Do exactly the opposite of Michael Scott and you may succeed in your new management role. Michael Scott describes his management philosophy as, “I'm friends with everybody in this office. We're all best friends. I love everybody here. But sometimes your best friends start coming into work late and start having dentist appointments that aren't dentist appointments, and that is when it's nice to let them know that you could beat them up.”

You’re the boss, not their friend. Your job is to create a successful team, maximize positive change, and assist employees to reach their peak performance. Your new role as a boss is, after all, about managing people.

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Marylee Abrams and I attended an excellent seminar yesterday presented by Jay Larson, about the FISH Philosophy. The FISH Philosophy was developed or maybe more accurately, discovered by ChartHouse Learning, a documentary film company, who made a film about the Pike Place Fish Market in Seattle. What they discovered was a group of fish mongers who took a tedious and dirty job selling dead things from the ocean, and made it fun and entertaining. By doing so, not only have they made work more enjoyable, but customers and browsers alike have a wonderful experience and return for more. The result has been increased sales and great public relations for the Pike Place Fish Market.

The FISH Philosophy has four principles, designed to provide a different way to show up to work.

1. Play: Make work fun. Encourage creativity. Be enthusiastic. Anything can be boring if you make it boring, so make the commitment to make your workplace more fun and more like play. Tap into natural creativity. Be child-like, not childish.
2. Make Their Day: Find special ways to connect with everyone you encounter for no reason than to brighten their day. Share a cup of coffee, ask about someone’s weekend, share a joke. If employees love their job it is going to show through to others. Encourage your employees to interact and connect with the people who come to your place of business, whether it is the mailperson, delivery person, customers or other coworkers.
3. Be There: Be physically and emotionally present for people, especially when they need you. It’s a powerful message that strengthens relationships. Be present in the moments you are dealing with customers, employees, or others.
4. Choose Your Attitude: No matter the situation, take the responsibility for consciously choosing how you want to show up in the world. Every person has the choice each minute of each day to choose their attitude. Choose a good attitude.

If you conclude you can’t throw fish, shout out customer orders, or play jokes at your business, you are missing the point. The four principles are all about engaging employees, providing exceptional service to customers, and exploring how to make your business more successful. The principles can apply to any business with a little thought and creativity.

By encouraging your employees to follow the four principles of the FISH Philosophy you are likely going to see increased productivity, happier employees, and happier customers, which can result in more $$$$$ and business growth.

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CBS rolled out its’ new reality television show “Undercover Boss,” right after the Super Bowl Sunday evening. In the first episode, Waste Management President and COO, Larry O’Donnell, went undercover for one week performing entry level positions in his own company. A camera crew followed him under the guise they were filming a documentary on entry level positions.

President O’Donnell was filmed working the conveyor belt and picking out cardboard from other recyclables, learning to clean out portable toilets, picking up paper at a worksite, following an overworked administrative assistant/payroll clerk/ truck weigher, and riding along with a female garbage hauler.
 

Overlooking the manufactured drama of reality television, O’Donnell seemed to really learn from his experience performing the entry level positions. He learned one of his recycling plants implemented his 30 minute lunch rule, by docking employees 2 minutes for each minute they were late returning from their limited lunch break. This punishment was never his intention, not to mention the possible FLSA problem it may pose to reduce an employee’s earned wages this way.
 

O’Donnell also learned the female garbage hauler was forced to drive a route which does not permit her to stop and use a restroom, so she carries along a can in her truck to use when she needs to urinate. He admitted maybe his company was not too female friendly and he vowed to make necessary changes. He was surprised to find the employee who cleans out the portable toilets had a cheerful attitude and worked hard at his given tasks. O’Donnell wondered how he could translate that work ethic and attitude to more of his employees.
 

The big lesson for O’Donnell was making the connection between his management policies and the impact they had on his front-line employees. It was an eye-opening experience and O’Donnell vowed to be a better boss based on the experience.  What kind of boss are you?

Stay-tuned for next week’s expose where the CEO of Hooters goes undercover as a management trainee. He uncovers a Hooters manager requiring the waitresses to perform a reindeer dance which looks a lot like sexual harassment.
 

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Tiger Woods was silent for almost a week amidst wide-spread media coverage of his suspicious late night car accident. For months Toyota was not only silent about the real problem with their gas pedals, they tried to initially blame the acceleration problem on floor mats. Both stories continue to have intense media coverage which includes reports on every new twist or detail, while rehashing the basic facts over and over again.

In contrast, David Letterman self-reported his sexual trysts with female staffers on his own terms, in his own words, ahead of a threatened blackmail scheme. Media coverage of Letterman’s trysts has dried up and the matter is now considered a non-story. What is the difference and what can businesses learn from these major news stories?

Self-reporting of problems helps to control the message and the timing, and seems to shorten the media life of a story. Coming clean can help a business move on past the initial media flurry, return to business as usual faster, and hopefully preserve sales and reputation. Businesses should consider credibility and accountability, and the perception of the public. Admitting mistakes and accepting responsibility is more than just something your mother tried to teach to you. It applies to businesses, sports superstars, and celebrities as well.

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Cindy Hanson and Kali Wilson Beyah of “Corporate Counsel” magazine and blog, warn employers to stop using credit reports and criminal background checks to weed out job applicants, or risk being embroiled in an EEOC lawsuit.

EEOC has taken the position that, due to the disproportionate conviction and arrest numbers of African American and Hispanic people as compared to white people, blanket policies regarding employment decisions based on arrest and conviction information are presumed to have a disparate discriminatory impact on African American and Hispanic applicants.

Until the issues are resolved by the courts, employers should make sure background checks are job-related for the position in question and are consistent with business necessity.

I agree with the authors suggestions for employers to;

• Apply testing criteria in the same way to all individuals.

  
• Audit hiring pools to determine if there is a disparate hiring impact on any one group of applicants.

  
• Tailor the type of the background check conducted to the nature of the position.

  
• Document the rationale for the type of the background check conducted.
   

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As the New Year dawns, it is the perfect opportunity to do a check-up of your current business practices and determine if any changes are in order. Everyone needs a check-up every now and then, and this includes your business. A business check-up will help you reach your 2010 goals to increase revenues and productivity.

Some things you should review and questions to ask:

• Employee handbook or policy manual - Are all policies current? Do your actual business practices follow these policies or do they conflict? Do you need to add any new policies?
• Rental leases – Is everyone living up to the lease? Is an extension in order?
• Business contracts – Are there any changes needed in any vendor or supplier contracts?
• Insurance policies – Is your insurance coverage adequate to protect your business?
• Marketing practices - Did each effort bring in new business as expected? Why did you choose certain marketing options, was it to stay in front of clients or to try to get your name out to new clients? Do you feel your efforts were successful?
• Membership in Associations – Does this membership serve your business plan?
• Office technology – Do you have a replacement schedule? Do you need to upgrade or replace any office furniture or technology?

Often businesses can get stuck in a rut. There is no better time to kick start new ideas or to stop wasting time and money than the start of a new year. Take the time to do a check-up on your business practices and kick-start 2010.

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The economic recovery is slower and more sluggish than most expected. While hiring new employees may be on the back burner right now, this is the perfect time to tune up the hiring process at your business in anticipation of better times ahead.

Resources abound to help you develop a sound hiring process which should include creating specific job descriptions, conducting back-ground checks, and reviewing resumes/cover letters. Many businesses today are screening candidates over the phone, and electing to use behavioral interviews to select the best candidate for the job.

What is clear is that your hiring process should have a standardized format so you are able to compare and contrast candidates: apples to apples. When you do begin hiring again, it is important to not overlook obvious red flags.

• 1st Red Flag: If candidates don’t use common sense during the hiring process, there is a really good chance they won’t use common sense on the job. A candidate I interviewed for a paralegal position gave a very good 45 minute interview, and made the first cut. When I left the office, I found the candidate sitting in his car in the parking lot with a dead battery. He had been outside in below freezing temperature for 2 hours, waiting for a friend to jump his car battery. Someone who doesn’t know to come in out of the cold is not the right candidate for a high pressure, deadline oriented position.
• 2nd Red Flag: If candidates don’t use good manners during the interview, they won’t use good manners on the job. Another paralegal candidate answered her cell phone during the interview and carried on a conversation with her spouse over who should pick up the kids. She was cut mid-interview based on the telephone call.
• 3rd Red Flag: If your workplace has a formal business dress code and the candidate shows up for the interview in a polo and khaki pants, pass on the candidate. Everyone knows or should know to dress your best for a job interview. Impressions do count.
• 4th Red Flag: How the candidate speaks to your staff when scheduling the interview, responding to follow-up requests to supply references, or even to the receptionist the day of the interview speaks volumes about how they would fit into your workplace. If a candidate is rude and demeaning during the hiring process, take a pass and look for someone else.

In conjunction with having a standardized hiring process, considering whether or not a candidate raises any obvious red flags will insure you select the right candidate for the job.
 

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In December 1843, Charles Dickens wrote a novella he originally called a “Ghost Story of Christmas.” In the story we all know as “A Christmas Carol,” Ebenezer Scrooge is visited by four ghosts, including his deceased business partner Jacob Marley, followed by the ghosts of Christmas past, present, and future.

The ghost of Christmas past takes Scrooge back to the time he was a young man working at Fezziwig’s Warehouse. The Warehouse is closing Christmas Eve, in preparation for a rousing party with dancing and sumptuous food. The ghost of Christmas present reveals to Scrooge the poverty of his sole employee at the Scrooge & Marley Counting House, Bob Cratchit, and the plight of his family.

Comparing your workplace to Scrooge’s Counting House or Fezziwig’s Warehouse is more than just a fanciful holiday exercise. It is designed to get you thinking about the tone and personality you have set at your business. If the goal is to raise productivity of employees, generate new business, and increase revenues, it is worth a look at what type of workplace you have created to accomplish those goals. There is no better mirror for this type of business assessment than the eyes of your employees.

Fezziwig’s Warehouse and the Scrooge & Marley Counting House were two very different workplaces. The differences lie in the philosophy and values of the business owners themselves, and how these values were communicated to employees. Which one best describes your philosophy and your workplace?

Employers set the tone for workplaces. Determine your business philosophy and be sure to share it with your employees.
 

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