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EMPLOYMENT RATE – APRIL 2016

My 2 cents on the low unemployment rate: This is a simple case of supply and demand.  We are fortunate to have a thriving country and most of us are working. Conversely, in talent acquisition, we need to find ways of finding the great people.  The purple squirrels and unicorns are not going to just call us.  So we need to work our multi-prong approach to find them before your competitor does.

What does that mean? Well it means employee referrals, job boards, your talent in your ATS that you are not or cannot find, social recruiting, your network and many other ideas of recruitment mix.

Are you prepared for this lack of supply and high demand? I can help.

The numbers are looking good once again.  However, please do your due diligence and know that these numbers don’t necessarily talk about the people that have taken themselves out of the workforce or are underemployed.*

Household Survey Data

In April, the unemployment rate held at 5.0 percent, and the number of unemployed persons was little changed at 7.9 million. Both measures have shown little movement since August.

Among the major worker groups, the unemployment rate for Hispanics increased to 6.1 percent in April, while the rates for adult men (4.6 percent), adult women (4.5 percent), teenagers (16.0 percent), Whites (4.3 percent), Blacks (8.8 percent), and Asians (3.8 percent) showed little or no change.

The number of long-term unemployed (those jobless for 27 weeks or more) declined by 150,000 to 2.1 million in April. These individuals accounted for 25.7 percent of the unemployed.

In April, the labor force participation rate decreased to 62.8 percent, and the employment-population ratio edged down to 59.7 percent.

The number of persons employed part time for economic reasons (also referred to as involuntary part-time workers) was about unchanged in April at 6.0 million and has shown little movement since November. These individuals, who would have preferred full-time employment, were working part time because their hours had been cut back or because they were unable to find a full-time job.

In April, 1.7 million persons were marginally attached to the labor force, down by 400,000 from a year earlier. (The data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey.

Among the marginally attached, there were 568,000 discouraged workers in April, down by 188,000 from a year earlier. (The data are not seasonally adjusted.) Discouraged workers are persons not currently looking for work because they believe no jobs are available for them. The remaining 1.1 million persons marginally attached to the labor force in April had not searched for work for reasons such as school attendance or family responsibilities.

Establishment Survey Data

Job creation this month went down from 215,000. Total nonfarm payroll employment increased by 160,000 in April. Over the prior 12 months, employment growth had averaged 232,000 per month. In April, employment gains occurred in professional and business services, health care, and financial activities, while mining continued to lose jobs.

Professional and business services added 65,000 jobs in April. The industry added an average of 51,000 jobs per month over the prior 12 months. In April, job gains occurred in management and technical consulting services (+21,000) and in computer systems design and related services (+7,000).

In April, health care employment rose by 44,000, with most of the increase occurring in hospitals (+23,000) and ambulatory health care services (+19,000). Over the year, health care employment has increased by 502,000.

Employment in financial activities rose by 20,000 in April, with credit intermediation and related activities (+8,000) contributing to the gain. Financial activities has added 160,000 jobs over the past 12 months.

Mining employment continued to decline in April (-7,000). Since reaching a peak in September 2014, employment in mining has decreased by 191,000, with more than three-quarters of the loss in support activities for mining.

Employment in other major industries, including construction, manufacturing, wholesale trade, retail trade, transportation and warehousing, information, leisure and hospitality, and government, showed little or no change over the month.

The average workweek for all employees on private nonfarm payrolls increased by 0.1 hour to 34.5 hours in April. The manufacturing workweek and overtime remained unchanged at 40.7 hours and 3.3 hours, respectively. The average workweek for production and nonsupervisory employees on private nonfarm payrolls was up by 0.1 hour to 33.7 hours.

In April, average hourly earnings for all employees on private nonfarm payrolls increased by 8 cents to $25.53, following an increase of 6 cents in March. Over the year, average hourly earnings have risen by 2.5 percent. In April, average hourly earnings of private-sector production and nonsupervisory employees increased by 5 cents to $21.45.

The change in total nonfarm payroll employment for February was revised from +245,000 to +233,000, and the change for March was revised from +215,000 to +208,000. With these revisions, employment gains in February and March combined were 19,000 less than previously reported. Over the past 3 months, job gains have averaged 200,000 per month.

For the full report: http://www.bls.gov/news.release/pdf/empsit.pdf

May 2016’s Newsletter

It would be very remiss of me to not dedicate this edition to my favorite musical artist of all time, Prince and the passing of a genius this past month. A man full of controversy throughout the last 4 decades was one who did it his way.  For this there was always speculation of who he was and what he stood for.  One thing for sure, he will be missed for the amazing talent he was and the influence he left.

For this I will use as the platform and theme if you will for this edition around diversity and inclusion as his song Controversy is what it is all about.  The words as they rang out from this song, “am I straight or gay? Am I black or white…” is indeed what we look at in diversity and inclusion on the mere surface.

And in the spirit of Prince, I also suggest reading a book on his biography around the Purple Rain era…or rather the time when everyone new every word to every song.  The book itself is controversial, but always remember he did it his way while overcoming the “conventional way”, the “right way” or even “the way it’s always been done”.

There is no perfect way.  Nor does right come in a color or a gender.  Believe in you.  You may be controversial, but at the end of the day, you get to smile…Let’s go crazy!

Mahalo!

This Month’s articles:

WORKPLACE BULLYING: FIVE WAYS EMPLOYERS CAN PREVENT IT

by Beth Zoller | October 2, 2015

Here is a topic that has gotten under my skin since junior high school.  I go way back then because this is where it all starts, if not before.  Discrimination comes in all flavors as like the vehicle of the way one discriminates. Bullying can be passive or darn right in your face.  Regardless of how it comes out, it needs to quit.  The article below is a few months old, however it touches on a strong point of discrimination and in fact it is timeless.  ~The Organic Recruiter

October marks National Bullying Prevention Month, so it is a good time for employers to take notice of how serious an issue workplace bullying can be.

According to a 2014 Workplace Bullying Institute survey, almost a third of all workers have suffered serious bullying and abusive conduct at work and 72 percent are aware that workplace bullying occurs. Employers need to understand that everyone is a potential target and no one is immune as bullying affects individuals of all races, ages, and sexes and occurs in all industries.

What’s more, bullying carries severe risks for employers and can have a negative effect not only on the workplace, but also on an employer’s business and professional reputation. It can lead to decreased productivity and workplace morale, increased absenteeism, increased healthcare and workers’ compensation costs and potential lawsuits for negligent hiring, internal infliction of emotional distress, assault and battery. Here are five key tips to prevent and address workplace bullying:

1. Understand that Bullying Takes Many Forms

It is critical for an employer to understand that bullying is hard to define and can take many forms. It covers a wide range of threatening and/or offensive physical, verbal and written behavior. Simply put, bullying is any activity intended to diminish or disempower another individual and any use of aggressive, hostile, abusive or unreasonable conduct against a co-worker or subordinate that is intended to interfere with their work.

Bullying may include:

  • Creating unrealistic demands;
    • Taking credit for another’s work;
    • Excluding an individuals from meetings or lunch; or
    • Spreading rumors about another, or blatantly ignoring or putting down a co-worker.

Bullying differs from ordinary workplace incivility and rudeness because it is intentional, frequent, repetitive and severe, often resulting in a pattern of abusive and offensive behavior.

  1. Implement and Enforce an Antibullying Policy

An antibullying policy is essential to preventing workplace bullying by putting employees on notice that abusive and offensive behavior will not be tolerated. The policy should clearly define acceptable and unacceptable behavior and provide clear examples.

It should also provide for a multichannel complaint procedure and allow employees to report incidents without fearing retaliation. Employees should feel confident that all complaints with be addressed and investigated by the employer. This policy should be firmly communicated to employees in the employee handbook and on the employer’s intranet.

  1. Provide Antibullying Training

An employer must provide comprehensive training to all employees and supervisors on the employer’s antibullying policy and educate employees on the dangers of bullying and how it is detrimental to the workplace.

The training should review the policy and coach employees on sensitivity, tolerance and a mutual respect for others. Training should be interactive and present hypotheticals to encourage employees to think about their interactions with co-workers.

Supervisors and employees alike should be trained to identify bullying conduct and bring it to the employer’s attention since victims may fear bringing a complaint. Employees should be warned that joking, teasing, horseplay and usual workplace banter can quickly escalate and lead to workplace bullying.

Management should lead by example and foster an atmosphere of diversity, inclusion and respect. The employer also should promote a safe and healthy workplace with a focus on building trust, camaraderie and positive relationships.

  1. Take Complaints Seriously and Thoroughly Investigate

An employer should be vigilant about responding to bullying allegations and promptly address and investigate complaints. This includes gathering any relevant documents, including emails, and interviewing all possible witnesses including the complainant, the alleged bully and any third parties who may have witnessed the behavior.

A thorough investigation process and detailed records may protect the employer’s interests in the event of a later lawsuit by the victim and show that the employer made every effort to respond to the allegations and remedy any abuse.

  1. Enforce the Policy

The employer should not hesitate to enforce its antibullying policy to the fullest extent and demonstrate to all employees and supervisors that bullies will be disciplined and terminated if necessary. The employer should convey that all employees will be treated equally under the policy and high-level managers and supervisors will not receive special treatment.

An employer also should make any necessary changes to the work environment to decrease instances of bullying such as separating the bully from his or her victim and changing the reporting structure. By taking these steps, an employer will make clear that abusive workplace conduct will not be tolerated.

EEOC’S CONTROVERSIAL EEO-1 CHANGE WOULD ROOT OUT PAY DISCRIMINATION

by Amanda Shelby | March 20th, 2016

Equality needs to be understood in every way possible.  From getting a fair shake at a job you are highly qualified to getting paid fairly amongst your peers that share the same job classification.   Equal pay for equal job in my opinion.  The only outlier to this is when you are paid a commission.  My belief is when in sales, you give yourself your raise every time you sell something.  But to that extent, not everyone is a sales person, are they? ~The Organic Recruiter

The EEOC’s proposed amendment to the EEO-1 would require employers with 100 or more employees to report pay data in addition to their workforce demographics.

The proposed revision to the EEO-1 would require employers with 100 or more employees to also report aggregate data on employees’ pay range and hours worked beginning with the 2017 EEO-1 report.

The EEOC has proposed using aggregate W-2 data in 12 pay bands for the 10 current EEO-1 job categories. “Employers will simply count and report the number of employees in each pay band. For example, a filer will report on the EEO-1 that it employs 3 African[-]American women as professionals in the highest pay band.” The EEOC believes this method for collecting and reporting pay data not only will be more likely than others to generate reliable data but also will be less burdensome for employers than other possible alternatives.

If this change sounds familiar, it’s because the EEOC’s proposed rule is similar to-and replaces-a rule proposed by the U.S. Department of Labor that would have required federal contractors to submit comparable pay information in their annual equal pay reports to the Office of Federal Contract Compliance Programs.

To “Assist the agency in identifying possible pay discrimination”; and To “Assist employers in promoting equal pay in their workplaces.”

Even an individual claim could be costly because it will require the employer to justify not only the employee’s pay but also the pay of all of her comparators.

If you anticipate that your company will be subject to the rule, consider asking your employment law counsel to review your pay practices and evaluate your risk before you’re forced to disclose your employees’ pay data next year.

EEOC, DOJ TAKE AIM AT NORTH CAROLINA’S ‘BATHROOM BILL’ FEDERAL LAW MAY TRUMP STATE LAW

By Allen Smith  5/5/2016

This is an article I find very interesting as it can set precedence in many ways.  I, by all means, cannot publicly take a stance on this as it is far more controversial of a road than I would like to go down.  However the precedence that can come out of it is whether transgender people have certain rights, if employers have rights, and if states have rights as the Federal Government may step in and make the decision for them.

At any rate, I am sharing this one as it is going to make a difference in your workplace regardless of the outcome.  From changes to hot topics to flared conversations.  I suggest you be prepared for whatever comes of it. ~The Organic Recruiter

Denying an employee access to a restroom that corresponds to the employee’s gender identity is sex discrimination in violation of Title VII of the Civil Rights Act of 1964, the Equal Employment Opportunity Commission (EEOC) stated in a May 2 fact sheet. “Contrary state law is not a defense under Title VII,” the commission noted, a veiled reference to North Carolina’s House Bill 2 (H.B. 2).

And on May 4, the Department of Justice (DOJ) was even blunter, writing to North Carolina Republican Governor Pat McCrory to inform him that H.B. 2 violates Title VII and Title IX. The letter asks the state to respond no later than May 9 about whether it will remedy these violations of the law.

“If North Carolina does not respond by May 9, 2016 affirming that it will not comply with HB 2, it could face losing federal funding—state public schools receive $861 million in federal funding,” said Todd Solomon, an attorney with McDermott Will and Emery in Chicago.

In addition, “The EEOC’s fact sheet has been issued in direct response to H.B. 2 and other anti-LGBT [lesbian, gay, bisexual and transgender] legislation, such as in Mississippi,” said Michelle Phillips, an attorney with Jackson Lewis in White Plains, N.Y.

North Carolina’s H.B. 2 provides that transgender individuals are permitted only to use bathrooms that correspond with the gender listed on their birth certificate, Solomon noted. The law affects North Carolina state government employers but does not cover private employers, he added.

Based on the language in the EEOC’s fact sheet, “an employer will have a very difficult, if not impossible, time trying to defend the imposition of restroom usage based on biological sex if a charge is filed with the EEOC on these grounds,” Phillips said.

“Transgender workers don’t stand alone, even when they are in the crosshairs of discrimination,” said Peter Renn, staff attorney with Lambda Legal, which advocates on behalf of LGBT individuals, in Los Angeles. “They have the support of the federal government behind them.”

Lambda Legal and the American Civil Liberties Union (ACLU), an organization that defends civil liberties, have filed a lawsuit challenging the legality of H.B. 2. The lawsuit has been filed on behalf of Joaquin Carcaño, a University of North Carolina (UNC) employee; Payton McGarry, a UNC-Greensboro student; Angela Gilmore, a North Carolina Central University law professor; Hunter Schafer, a student at University of North Carolina School of the Arts High School; and Beverly Newell and Kelly Trent, a married same-sex couple in Charlotte, N.C.

Unlawful Sex Discrimination

The fact sheet is intended to educate people that from the EEOC’s perspective, denying transgender individuals access to common restrooms is unlawful sex discrimination, said Elizabeth Gill, a senior staff attorney with the ACLU’s LGBT and HIV Project in San Francisco, a project that seeks equal expression and association for LGBT individuals.

The EEOC notes in its fact sheet that the commission held in Lusardi v. Dep’t of the Army last year that an employer:

  • Cannot condition a transgender employee’s right to equal access to a common restroom on the employee undergoing or providing proof of surgery or any other medical procedures.
  • Cannot avoid the requirement to provide equal access to a common restroom by restricting a transgender employee to a single-user restroom instead.

The EEOC fact sheet also observes that the 4th U.S. Circuit Court of Appeals reached a similar conclusion in a Title IX case last month. In that case (G. ex rel. Grimm v. Gloucester Cty. Sch. Bd.), the court deferred to the Department of Education’s position that Title IX’s prohibition against sex discrimination requires educational institutions to allow transgender students access to the restroom that is consistent with their gender identity.

“The fact that other employees may be confused, uncomfortable or anxious about the transgender employee’s use of the restroom is not a sufficient basis to prevent the transgender employee’s access to the restroom,” Phillips said. “The timing of the publication of the EEOC fact sheet is not an accident. The EEOC and other federal agencies have clearly signaled their intention to fight LGBT discrimination in the workplace.”

“With its recent lawsuits and fact sheets, the EEOC is reminding states that it can and will prosecute employers that discriminate on the basis of transgender status and sexual orientation,” Solomon said.

Follow Federal Law

“Ultimately, state employers in North Carolina are put in a difficult position where they must determine whether to follow state or federal regulation on this issue,” he remarked. After all, the EEOC’s position has not been extensively tested in the courts. But employers may not want to take the time and expense of fighting the EEOC on this.

Renn asserted that the EEOC’s announcement makes clear that H.B. 2 directly conflicts with, and violates, federal law, in the commission’s view. “Because federal law controls over contrary state authority, employers should follow the EEOC’s guidance for applying Title VII and not H.B. 2,” he said.

Allen Smith, J.D., is the manager of workplace law content for SHRM. Follow him @SHRMlegaleditor.