Archive for January, 2010

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CPEhr Welcomes Joshua Sable, Esq., as its Corporate General Counsel

Thursday, January 28th, 2010

CPEhr is pleased to announce the appointment of Joshua Sable, Esq. as its General Counsel. Mr. Sable has close to 20 years of experience handling legal matters for business owners and he brings another layer of experience and expertise to CPEhr’s Human Resources infrastructure which provides employment support and human resources services to its hundreds of clients and over 15,000 worksite employees.

“Josh Sable is a consummate professional and a gifted attorney,” says Faith Branvold, CPEhr’s President. “He balances a strong understanding of labor and employment law with an appreciation for providing business owners with practical and cost-effective solutions.”

Prior to joining CPEhr, Mr. Sable was most recently a partner at Bryan Cave, LLP, a business and litigation firm with 19 offices worldwide. At Bryan Cave, Mr. Sable headed the Santa Monica, CA, labor and employment law practice. He is an experienced trial lawyer, having litigated various matters in both State and Federal court. While in private practice, Mr. Sable focused on employment discrimination, wage and hour, trade secrets, non-compete and union matters. He also has experience in the defense of class action lawsuits and has represented clients in unfair labor action proceedings before the National Labor Relations Board. Prior to joining Bryan Cave, Mr. Sable was also a Partner at Foley & Lardner in Los Angeles.

“I am delighted to be joining my long-standing client, CPEhr,” says Sable. “I have worked with this organization for over a decade, and am always amazed by the quality of the services and the professionalism demonstrated by each and every employee. I truly believe CPEhr’s business model is the perfect platform for handling the HR needs of small to mid-size businesses.”

Mr. Sable graduated in 1993 from UCLA Law School and currently resides in Los Angeles, California, with his wife Larae and his daughter Charlotte Grace.

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Increased Litigation and Enforcement Predicted for 2010

Monday, January 25th, 2010

Guest post by: Stephanie R. Thomas, Ph.D.

According to Fulbright’s 6th Annual Litigation Trends Survey Report, companies are seeing a litigation wave that is expected to continue to swell in 2010.  That expectation is based on experiences during 2009, when 83% of respondents reported that new litigation has been commenced against their organizations, up from 79% in 2008.  Stephen C. Dillard, head of Fulbright’s global litigation practice, states:

Generally, litigation rises in an economic downturn as regulators tend to step up enforcement, laid-off workers head to court, and companies need to file more suits in order to collect money owed.

Employment litigation is expected to increase in 2010.

The poor economic conditions and increased layoffs, coupled with new laws and expansion of existing laws, are likely to lead to an increase in claims filed.  According to Rich Meneghello, the managing partner in the Portland, Oregon office of Fisher & Phillips, “all signs point to the trend [of increased litigation] continuing into 2010, especially as job growth remains stagnant and out-of-work individuals seek rewards through litigation”.

Increased enforcement by the Department of Labor.

Experts are also anticipating an increase in enforcement by the Department of Labor.  Secretary Solis said in a release, “In early 2010, the department will launch a national public awareness campaign titled ‘We Can Help’ to inform workers about their rights…  We will not rest until the law is followed by every employer, and each worker is treated and compensated fairly.”  The Department of Labor is scheduled to receive $13.3 billion in funding for 2010, an increase of $121 million from the previous year.  According to a DOL press release, “with these increases, [DOL’s] worker protection agencies will be able to vigorously protect wages and working conditions of the 135 million workers in more than 7.3 million workplaces.”

Additionally, the EEOC is slated to receive $367 million in funding for 2010.  This represents an increase of $23 million from the previous year.  The increase in funding may lead to more lawsuits alleging discrimination based on age, gender, race, color, national origin, religion, or disability.  The EEOC’s proposed regulation to implement the ADA Amendment Act of 2008 would make several significant changes to the definition of ‘disability’, greatly expanding who is covered by the statute’s provisions.


Be proactive to reduce the risk of lawsuits.

While no one can be certain what 2010 will bring, employers should prepare for litigation and for increased enforcement actions.  Experts are recommending a proactive approach.

  • Employers should have a thorough understanding of what laws and regulations apply, and review their policies and procedures to ensure they are in compliance.
  • Internal audits should be conducted to identify any potential problem areas, and corrective action should be taken where appropriate.
  • Revisiting documentation and document retention practices is vital; having appropriate documentation can, in some circumstances, prevent litigation, and will be critical should the employer be faced with litigation.

For more information on protecting your company, contact CPEhr, a Human Resources Outsourcing and Professional Employer Organization.

Guest post by Stephanie R. Thomas, Ph.D.

Dr. Thomas heads the Equal Employment Advisory and Litigation Support Division of Minimax Consulting. The Division provides consulting services, dispute resolution support, and expert testimony to Fortune 500 companies, major law firms, and local, state, and federal governments and agencies.  The Division specializes in labor and employment issues in both advisory and litigation contexts.

Website: Minimax Consulting

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Enhancing Employee Performance Through Rich Benefit Plans

Wednesday, January 20th, 2010

Even as companies begin hiring again, it will take some time before the workforce is back to pre-recession levels. What this means for the average business is that managers are trying to maximize productivity with a smaller workforce. The inevitable result is a more stressful work environment as both employees and management struggle to find a healthy balance between productivity and the decreased manpower. Employers will be required to find new ways of incentivizing and motivating their workforce to maintain a positive attitude while managing increased workloads.

According to the Bureau of Labor Statistics (BLS), prospective employees value benefits second only to pay when considering a new job. And for good reason – the BLS reports that benefits account for 30% of employers’ total compensation costs. What this means to employers is that they must give serious consideration to providing a range of benefits to maintain a happy and committed workforce.

The challenge, however, is investing the time to research, plan, and roll-out benefit plans. With small employer resources already strapped, finding the manpower to implement a benefit program can prove overwhelming.


PEOs Enhance Performance with Health Insurance and Voluntary Benefits.

Professional Employer Organizations (PEOs) provide small employers the unique opportunity to offer their staff a rich and comprehensive array of employee benefit programs that are typically available to only the largest corporations. These robust offerings include a wide range of major medical plans and voluntary benefit offerings. The PEO provides these benefit packages to hundreds of clients, and has the experience to research and procure these top-rated plans for their clients. When joining a PEO, clients merely select they plans they intend to offer, and the PEO takes over from there. From open enrollment, to addressing employee questions, to administering the monthly billing, all the plan management is the responsibility of the PEO.

Most large PEOs offer the following range of benefits:

  • Multiple health insurance coverages
  • Dental insurance
  • Vision insurance
  • Life insurance
  • Disability and alternative insurance
  • 401 (k) Retirement Plan
  • Pre-tax Cafeteria 125 Plans
  • Flexible Spending Accounts (FSA)
  • Employee Assistance Programs
  • Credit Union and financial services

PEO clients are assigned a benefits manager to address all employee inquiries and to manage any related administrative issues. Clients can literally sit-back, and let the PEO manage the process.

Containing Benefit Costs Through Economies of Scale

While most employers recognize the need to offer rich benefits to their staff, the ever-increasing cost of health insurance is forcing them to think twice before rolling out a new plan. Luckily, in  a PEO relationship, small employers can offer the scope and pricing of their large competitors. By pooling hundreds, and even thousands of businesses, PEOs aggregate health benefit plans, retirement plans, workers’ compensation insurance, and legal expertise. The PEO establishes relationships with large regional insurance companies and can offer better plan selections with lower premiums.

Another benefit of working with a PEO is that it provides the insurance carriers greater stability by offering insurance coverage to employees in a broader employee base. The pooled employees come from different industries and geographic areas which stabilize the premiums over the long-term. This provides the PEO greater negotiating power at renewal, thus typically keeping renewal rates below market averages.

There is little question that in today’s economy, employers must  offer their staff a rich benefit plan to maintain morale and commitment. PEOs have become a serious option for small business looking for ways to roll-out robust plans, quickly and cost effectively.

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Employee Training and Development – a Business Must-Have to Survive in 2010.

Tuesday, January 19th, 2010

Even now, in difficult economic times, while employers continue to look for ways to keep costs down and reduce overhead, owners and entrepreneurs see value in employee and management training. Employers realize that educational development and training is a crucial investment for a motivated workforce. An intelligent, well-trained workforce is central to worker productivity and key to a company’s success.

Surveys support the need for management training.

Ken Blanchard Companies recently conducted a poll of over 1,700 executives and managers in their “2009 Corporate Issues Survey”. In the survey, the executives were posed the question, amongst others: “What tactics will your firm implement to cope in a down economy?” The overwhelming response by close to 2/3 of respondents was “Invest in productivity and performance maximizing strategies”.  These businesses recognize that the most promising way to weather tough economic times is to have skilled talent help grow the organization. Additionally, numerous surveys directly link employee training with lower turnover, lower accidents, and increased performance and productivity. Successful companies embrace training as a central part of their philosophy.

Outsourcing training to a Professional Employer Organization

According to the American Society of Training and Development (ASTD) over $134 billion was spent on employee learning and development in 2008. In their 2009 State of the Industry Report, the ASTD reveals that over $45 billion was allocated to external services such as workshops, vendors and external events. Businesses recognize the value of accessing external resources to train and develop their staff, as opposed to creating and implementing these programs internally.

A Professional Employer Organization offers a wide range of employee training and management development courses, often built into their standard services, or for an additional nominal fee. This training goes  hand-in-hand with additional Human Resources support services, to round out a company’s corporate policies to ensure a safe, compliant, and positive work environment.

Robust Course Offering

PEOs offer a complete range of training, but the most common ones appear below. CPEhr provides over 40 customizable trainings that can be delivered via the internet, or live, on-site at the client’s workplace.

Courses typically offered can include:

•    Sexual Harassment    •    Workplace Safety   •    FMLA    •    Interviewing Skills   •    Progressive Steps of Discipline    •    Motivating Employees   •    Performance Appraisals    •    Effective Communication Skills   •    Principles of Time Management    •    Diversity in the Workplace   •    Preventing and Defusing Violence    •    Customer Service Training   •    Effective Business Writing    •    Managing Difficult Employees

FREE Webinar on the Value of Training

If you like to learn more about the benefits of training for your organization, please join on THIS THURSDAY, January 21, 2010 for a free webinar: The Business Value of Training. Register here.

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PEOs Help Streamline Operations and Simplify Complex HR Administration

Thursday, January 14th, 2010

We continue our discussion on how Human Resources Outsourcing firms and Professional Employer Organizations can significantly reduce the labor costs for small and mid-sized employers. Last post discussed the concept of economies-of-scale. Today we will look at how PEOs can streamline the HR processes within an organization, and reduce redundant employment administration.

Streamlining Operations.

PEOs can help small employers stabilize operating costs is through streamlining their internal administrative operations. By joining a PEO, businesses are able to combine multiple vendors under one roof, thereby eliminating the need to maintain relationships with multiple vendors.

A full-service PEO can provide all of the following services, often at a reduced cost:

  1. Payroll processing
  2. Tax services
  3. Governmental form submissions
  4. Safety consulting
  5. Assistance with labor law compliance
  6. Creating and reviewing employee handbooks & policies
  7. Health insurance plans & administration
  8. 401 (k) and Cafeteria 125 Plans
  9. Workers’ Compensation insurance
  10. Management Training
  11. Recruiting services
  12. Assistance with unemployment administration

Eliminate Multiple “Point People”
From the personnel and management perspective, these services result in a reduction of duplicated efforts between departments and enables them focus their time on core business functions. Often, only one “point person” is required within the client’s organization, replacing multiple positions in multiple departments.

Some companies experience such a drastic reduction in administrative functions they are able to reduce headcount. Others find more valuable, revenue-generating tasks for these employees to fill. The most successful companies will be those that focus on the core business rather than spend money and use staff resources to manage non-revenue generating tasks, such as benefits and retirement plans administration, managing HR compliance regulations, or processing payroll and taxes.

From the business-owners’ perspective, reports indicate that once HR and other operations are outsourced, employers are better positioned to focus on their core operations.

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HR Outsourcing and PEOs Enable Small Businesses to Reduce HR Costs

Tuesday, January 12th, 2010

Continuing our discussion on small business employment priorities, we will discuss the first priority mentioned in the last post, stabilizing operating costs, and how an HR Outsourcing firm or Professional Employer Organization can help to reduce those costs.

Stabilizing operating costs

As employment costs continue to grow, employers must review their primary HR-related expenses. These areas can include: health insurance premiums, workers’ compensation costs, employment compliance, payroll/tax costs, salaries and overhead relating to employee administration. An HR Outsourcing firm can help small employers successfully reduce costs in all of these areas accessing the HRO or PEO firm’s Economies-of-Scale.

Economies-of-Scale.

Economies-of-scale is the primary method through which an HRO firm can reduce a business’ operational costs. Small employers with minimal payrolls and fewer than 500 employees are often limited in the variety of health insurance plans they can offer, have limited buying-power for workers’ compensation, and overall, have less flexibility in administering these plans. In contrast, by pooling hundreds, and even thousands of businesses, HRO firms aggregate health benefit plans, retirement plans, workers’ compensation insurance, and legal expertise. The HRO firm establishes relationships with large regional insurance companies and can offer better plan selections with lower premiums.

Stabilizing insurance premiums.

Another benefit of working with an HRO firm is that it provides the insurance carriers greater stability by offering insurance coverage to employees in a broader employee base. The pooled employees come from different industries and geographic areas which stabilize the premiums over the long-term. This provides the HRO firm greater negotiating power at renewal, thus typically keeping renewal rates below market averages.

Proactive programs keep premiums down in future years.

Beyond rate negotiations, HROs possess the internal resources to support programs that can help maintain low insurance premiums into the future. In health insurance, many offer Work/Life balance programs, health and wellness incentives, or discounts to health clubs and gyms. A healthy lifestyle in and out of the workplace can make significant, positive impacts on the utilization and expense of future health insurance premiums. In regards to safety and workers’ compensation, the HRO firm conducts routine safety walk-throughs, creates effective injury and illness prevention plans, and offers safety incentives to reduce the frequency of workplace injuries. These programs ultimately result in fewer workers’ compensation losses and more competitive insurance premiums.

A more efficient system

Finally, the HRO firm can manage routine HR tasks more efficiently as the talent and infrastructure are already in place. When a small business joins the HRO firm, they simply access these existing programs at reduced rates and a minimal time investment.

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