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June Hot Topics:
  1. Should Your Company Use Job Descriptions? The Pros and Cons of this HR Tool
    By Human Resources Professional Group
  2. The IRS and Flexible Spending Account Changes
    By Fred Patterson, lll, District Sales Manager, AmCheck
  3. Comp Claims From an Employer's Perspective
    By Eric Sheetz, Commercial Insurance Broker, The Michael Ehrenfeld Co.


Should Your Company Use Job Descriptions? The Pros and Cons of this HR Tool
By Human Resources Professional Group


As an employer, you may already know the importance of job descriptions and the reasons for using them. Still others see job descriptions as a hindrance, not wanting to create a detailed job description for any position. In this article, as we explore what a ‘job description' is and what purposes it serves, both the pro side and the con side, you will be able to better formulate whether or not a job description is a useful tool for your company.

For a Human Resources office, a job description can serve several purposes:
  • Defines responsibilities of a job
  • Functions as a mechanism for recruitment
  • Aids in training and development of employees
  • Can be used to establish legal defensibility (if need be)
  • Assists in the assignment of jobs
  • Assists in classification of jobs for FLSA purposes
  • Can benchmark company's position in salary surveys
  • Sets the framework for performance measurements
Job descriptions are a resource for individuals seeking employment with your company and are often provided to candidates during the interview process. They help the candidate be a better informed participant and assist the hiring managers to structure questions based on the job requirements. At a minimum, a copy of the job description should be given to a new employee within the first week on the job. A job description should be reviewed periodically to be sure it reflects an employee's current job responsibilities.

There are certain elements to a job description that should be understood before deciding to use and write them. A job is defined as a collection of tasks and duties; it exists no matter who is assigned to do it. There are certain elements that every job description should include. These elements are as follows:
  • A job title
  • Where job is located
  • Is job exempt or nonexempt according to the Fair Labor Standards Act (FLSA)
  • Detail the purpose of the job
  • A description of the job and any essential duties (estimating the number of hours spent in a 40-hour work week performing certain functions, making sure the percentages equal 100%, is a good way to determine responsibilities and essential duties)
  • Job qualifications should comprise expectations in regards to education, experience and necessary skills
  • Any extenuating work conditions, such as loud noise, or having to stand for long periods of time
Once you understand what a job description is and what it should include, the question becomes, do I want to use job descriptions in my company? Some see job descriptions as limiting employee growth and reducing employee contributions. At times, a detailed job description is seen as impeding an employee's development within a company. An employee may not be able to go “above and beyond” as he or she is bound to the responsibilities described in the job description, thus limiting their growth.

Others feel an employee's contributions are compromised and become stagnant as they can't always utilize additional talents they may possess if they work strictly off of the job description. Any initiative and innovative ideas he or she has may appear to be restricted as well. The company could be missing out on ideas that can improve procedures and methods if the job description is written in a way that discourages employee initiative.

Other cons to a job description discussion include:
  • Legal issues could arise involving ADA compliance, EEO, and overtime regulations
  • Refusal to take on assignments resulting from a poorly written job description
  • Potential candidates with appropriate qualifications may not apply at all due to an overly-specific job description
  • It can be a time consuming task to research and create a proper job description
Having shared the con aspect of job descriptions, there are many pros to discuss as well:
  • Job descriptions can assist an employer in identifying the amount of work that has to be done, while increasing the likelihood that an employee will understand what is expected of them.
  • They can aid in the quest to find qualified employees. Posting a detailed job description encourages qualified employees to apply which can lead to a satisfactory choice when hiring.
  • It gives employees a better understanding of what their responsibilities are, allowing employees to focus on their job without fear of encroaching on others' responsibilities
  • Job descriptions provide an outline for reviews and performance evaluations, thus giving you tools to evaluate job performances objectively.
  • They help to ensure fair wages and salary structures as well as help with decisions regarding promotions and compensation.
  • They can serve as a line of defense in regards to employment practices that concern ADA, EEO and overtime.
While there are two sides to the job description dilemma, as Human Resources professionals, we stand firmly behind the use of job descriptions – whether it is job briefs or detailed descriptions. However, it is important to remember that supervisors and managers should use job descriptions within reason. Job descriptions are not the only measurement by which an employee's capabilities and contributions should be judged. Employees should still be encouraged to demonstrate initiative and to seek out ways to do a job more efficiently.

In a continuation of June's article, keep an eye out for our July article, which will provide information on how to write a successful job description.

We invite you to contact HRPG if you would like to discuss ways that HRPG may assist your company in working through any of the HR challenges you see for 2012. Contact us at rdavies@hrpg.com or (619)421-0074.




The IRS and Flexible Spending Account Changes
By Fred Patterson III, District Sales Manager, AmCheck


On May 30th, 2012, the Internal Revenue Service (IRS) issued Notice 2012-40 providing additional guidance on health care reform's Flexible Spending Account (FSA) limit of $2,500 (pertaining to employee salary reduction contributions). Notice 2012-40 serves to clarify the effective date of the $2,500 limit, as well as the deadline for employers to amend their plans.

Relief is now provided for non-calendar year plans that currently exceed the $2,500 limit for employee contributions. Meaning, if an employer has an FSA with a plan renewal date of July 1, 2012 and a year cap of $4,000, the employer may keep that plan in place for the 2012/2013 plan year without being penalized; and, as long as the plan is amended to reflect the $2,500 limit at some time prior to the end of calendar year 2014 (i.e., July 1, 2013).

Additionally, in the case of a plan providing a grace period (which may be up to two months and 15 days), unused salary reduction contributions to the health FSA for plan years beginning in 2012 or later that are carried over into the grace period for that plan year will not count against the $2,500 limit for the subsequent plan year; and, relief is provided for certain salary reduction contributions exceeding the $2,500 limit that are due to a reasonable mistake and not willful neglect and that are corrected by the employer upon discovery.

Finally (believe it or not), the notice requests comments (from you - the
Tax payer) on whether or not to modify the use-or-lose rule, with respect to health FSAs, which is currently set forth in the proposed regulations.

Here are a few further highlights:

  • The IRS Notice 2012-40 <http://www.irs.gov/pub/irs-drop/n-12-40.pdf> answers the question: "What defines a tax year in applying the Health FSA $2,500 limit?" The notice specifically states the cafeteria plan year is the "tax year". The notice determines that an "off calendar year" can fall into
    2013 and still have an unlimited Health FSA amount.
  • The 2.5 month claim filing extension can also be continued even though the employer's plan may end sometime in 2013.
  • If an employee and spouse work at the same company, they are allowed to enroll for $2,500 each. Notice 2012-40 addresses this question on page 5. Furthermore, spouses who work at different companies can each elect $2,500.
  • The $2,500 Health FSA limit does not apply to premium conversion a.k.a. Premium Only Plans (POP), and other various options in a cafeteria plan; such as Dependent Care.
  • Amendments to plan documents are required for the $2,500 limit for all plans that start in 2013.
Keep your eyes open for more updates from the IRS!

For more information or questions regarding your payroll processes, please contact Fred Patterson III, District Sales Manager for AmCheck, a payroll solutions firm with offices throughout the United States. Fred may be reached at fred.patterson@amcheck.com. (619) 595-7900.




Quick Tips on Handling Work Comp Claims From An Employer's Perspective
By Eric Sheetz, Commercial Insurance Broker, The Michael Ehrenfeld Co.


Act Quickly!
It's important for all parties concerned that a worker's compensation claim is acted upon as a priority. Never should it be put in the office “In Box” and then buried under a stack of papers. For the whole process to work, it has to go through a series of stages, starting with the Accident Reporting Stage, and ending with Payment from the Insurance Carrier. If there is any delay, this could jeopardize necessary payments to the employee that could, in turn, lead to problems and probable investigation by a Workers Compensation Lawyer. As an employer, start the ball rolling for the injured party by ensuring quick scrutiny and passing on any claims immediately.

Hasten Any Open Claims
As an employer, it's always a good idea to try to follow up regularly on any claims that remain open. It's good to know when your employee is likely to return to work from both a financial and a business standpoint. You will need to keep yourself apprised as to when an injured party might return to work, especially when they have remained off work for long periods of time. Crucial to your business's success is the establishment of a Return to Work program. This will also help to keep down insurance costs.

Fair Treatment
Any workers compensation attorney will tell you that dealing with a worker's comp claim, from an employer's perspective, is a little daunting. It can be just as daunting for an employee. Making certain that an injured worker is treated fairly means that an employee will have the necessary treatment to facilitate a quick return to work. It sends a message to the injured party that you are taking an active concern in their welfare, while at the same time minimizing productivity costs, by trying to get them back to work quickly. This also goes for the rapid follow up of any closed claims. Any claims that linger on unnecessarily tend to make costs spiral out of control, which will have a direct effect upon your annual insurance renewal premium.

Present Safe Environment
The most cost effective solution to workers compensation claims is PREVENTION. The best way to prevent accidents from happening is to prevent an unsafe working environment. By doing so, an employer should decrease the amount of accidents and inevitably reduce the cost on their premium. A team of workers compensation attorneys explained the most common causes of work related accidents are through slip and fall, or trip and fall incidents. By taking regular floor walks of the workplace, an employer should be able to spot any potential dangers. Also, by drumming the ‘safety and health' issue home to your staff, while getting them actively involved, can and will lead to them taking action.

As you can see, dealing with workers compensation claims in a positive manner is the key to running a good business. Accidents can and will happen, thus creating the need to take a personal interest in the welfare of the injured party. Another must is to actively pursue when their return to work will be. Workers compensation lawyers are on hand should problems arise, but if you want to keep workers compensation claims to a bare minimum, safety must be a priority.


For more information or questions regarding your companies risk exposure, please contact Eric Sheetz, Property and Casualty Insurance Broker for The Michael Ehrenfeld Co. at ESheetz@ehrenfeldinsurance.com, (760) 809-8510.




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