What the Cheesecake Factory Lawsuit Means for Contractors2018 MITC

What the Cheesecake Factory Lawsuit Means for Contractors

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In a landmark case for contractors, a California court ruled that Cheesecake Factory Restaurants Inc. is jointly responsible for the labor violations of its contracted cleaning company. This ruling highlights the importance of effective workforce management tools for contractors.

An 18-month investigation found that subcontracted janitors in eight California Cheesecake Factory restaurants were denied breaks and overtime pay. The Los Angeles Times reports that each janitor “logged up to 10 hours of unpaid overtime each week because the workers were not allowed to leave after their eight-hour shift until a Cheesecake Factory kitchen manager reviewed their work.”

Cheesecake Factory and its cleaning contractor Americlean Janitorial Services Corp. are jointly liable for $4.2 million to cover the damages. Americlean’s subcontractor, Magic Touch Commercial Cleaning, is also responsible for part of the cost.

How the Ruling Raises the Bar for Contractors

The Cheesecake Factory lawsuit shows that a contractor’s workforce management shortfalls create risk for the hiring business, not just the contractor. Businesses do not want to acquire risk from a contractor. And they shouldn’t have to! But as the Cheesecake Factory case illustrates, companies cannot safely assume their contractors are upholding FLSA requirements. Since the ruling made a splash in the national headlines, businesses will be more careful about the contractors they choose.

This means you, as a contractor, must ensure your workforce management solutions are smart and efficient. Maybe you don’t mind using a poor solution to track hours and overtime, but your prospective clients will mind. Your competitors will look a lot better than you if you aren’t using effective workforce management tools!

Emphasizing Your Workforce Management Strengths

In our experience with hundreds of contractors who used all kinds of workforce management solutions, we have noticed a few trends. Successful businesses usually take three steps to strengthen their business operations.

The first step is to get rid of paper processes. These offer no visibility into your workforce. Problems that arise during the day can only be caught afterwards. But with automated solutions like time and attendance, you can receive alerts when someone hits overtime, fails to clock in/out, or anything else that matters to your business.

The second step is to enable employee self-service. With self-service, your employees can access their attendance records, pay stubs, schedules, and benefits from any web-enabled device, any time. This allows them to clock in/out onsite  If they encounter a problem at the work site (e.g. they must stay past their shifts to wait for a kitchen manager, as in the Cheesecake Factory case), they can escalate the issue to managers immediately.

The third step is to integrate time and attendance with payroll. This is a simple way to ensure your employees are correctly paid. If an employee claims you made a mistake, you can compare his or her attendance and payroll history instantly. This protects you from errors, and it has the added benefit of eliminating data entry.

Stable workforce management processes are attractive to clients. They are more likely to hire you over another contractor if you can prove you are not a risk to their bottom line. With Contractor Workforce Management solutions, you can put your best foot forward!

Contact info@mitcsoftware.com for more information on VoIP Telephone Timekeeping.

MITC Now Includes VoIP Telephone Timekeeping

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Agency Workforce Management is pleased to announce we now offer VoIP telephone timekeeping as well as analog telephone timekeeping and Web Clock! VoIP (Voice over IP) enables you to use a less expensive broadband Internet connection instead of using analog telephone lines. VoIP is available with MITC Cloud or customer-hosted solutions.

Benefits of Using VoIP for Telephone Timekeeping

  • Eliminate costs of multiple analog phone lines
  • No need to use digital to analog converters
  • Automatically restarts in the event of power outage
  • No busy signals
  • No need to buy lines for “busy” periods
  • Greater stability
  • No lines down/bringing lines up
  • No need for dedicated server
  • Dialogic Voice Processor
  • Reduced costs if using MITC Cloud
  • Per employee pricing: only pay for what you use

Agency Workforce Management will continue to support analog/dialogic telephone timekeeping, but you’ll always have the choice to switch to VoIP in the future.

Contact info@mitcsoftware.com for more information on VoIP Telephone Timekeeping.

Target - people picket for higher minimum wage

Target to Raise Minimum Wage to $15/hr

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Target announced last month that it is raising its minimum hourly wage to $11 starting next month. By the end of 2020, it will increase to $15. This announcement is putting more pressure on other employers to follow.

The company said the move will help recruit and retain top-quality staff. This in turn will provide a better shopping experience for its customers.

Target quietly raised entry-level hourly wages to $10 last year, from $9 from the previous year, following initiatives by Walmart and others to hike wages in a fiercely competitive marketplace. But Target’s hike to $15 per hour far exceeds the federal minimum of $7.25 per hour. It also rises above the hourly base pay at Walmart, the nation’s largest private employer, and plenty of its other retail peers whose minimum hourly pay now hovers around $10.

Millennials

Attracting and Retaining Millennials at Your Company

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According to LinkedIn’s 2015 Talent Trends Report, millennials will comprise half the workforce by the time 2020 rolls around. In less than 10 years, they will make up 75 percent of the workforce. Yet many companies, despite hiring and retention problems, have not considered the unique opportunities and problems of attracting and retaining this growing segment of the workforce. Who are millennials, and how do companies make themselves more attractive places for millennials to work?

Who Are Millennials?

There are no precise dates for when the millennial cohort starts or ends, but demographers typically agree that millennials were born between the early 1980s and the mid-1990s or early 2000s.

In reality, there are strong similarities between millennials and the generations that have preceded them: they want security and variety in their career, they want to be stretched and challenged, they want to work for a company of which they can be proud, and they have every intention of being loyal.

But there are many ways in which this growing proportion of the workforce is different. They have strong beliefs and expectations that extend to the workplace.

Where Millennials Want to Work

Data suggests millennials are driving a shift towards the public service sector. In 2010, the Journal of Business and Psychology published a study showing that this age group’s volunteer activity increased almost three times more than the volunteer activity of the overall population between 2007 and 2008. More recently, a 2014 Millennial Impact Report by consulting firm Achieve shows this generation has a high level of interest in public service. Out of the 1,514 employed millennials who were surveyed, 47 percent volunteered for a cause or nonprofit in the past month. The same study shows that 87 percent donated to a nonprofit organization in 2013.

This interest in public service bleeds into choice of work. In a recent Capital One Survey of millennials, 93 percent of respondents think it’s important that their career path that aligns with their personal values. Additionally, a 2013 survey by the National Society of High School Scholars (NSHSS) and a 2011 survey by Universum both show that they prefer to work for companies engaged in the betterment of society.

Use of Technology

Millennials are using technology at unprecedented levels. According to a 2007 survey of students born between 1983-1992, almost all of them owned a computer and a mobile phone. In addition, 76 percent used instant messaging, 40 percent got most of their news from the TV, and 34 percent got most of their news from the internet. This means that, as a generation, millennials are comfortable with technology in all areas of life.

One of the most popular forms of media among millennials is social networking. In fact, a study published in the Elon Journal of Undergraduate Research in 2010 claimed that students who tried to quit social media showed the same withdrawal symptoms of a drug addict quitting a stimulant. Millennials are very active on social networking sites such as Facebook, Twitter, and Instagram. Social media can help them create a sense of belonging, make acquaintances, and remain connected with friends.

12 Tips to Attract Millennials to Your Company

Employers can take steps to address the needs and preferences of millennials. Consider these 12 tips to ensure your company is millennial-friendly:

  1. Focus job postings on the greater good. Putting your company’s work in the context of the global good will help emphasize your mission. Focus your job postings on their importance to the organization and society.
  2. Keep in touch. Keeping in touch with millennials is key, whether it’s during the recruiting process or while they’re employed with your organization. According to LinkedIn’s Talent Trends Report, 95 percent of millennials want to hear what you thought about them after the interview. Keep an open line of communication through email or text and provide post-interview feedback opportunities.
  3. Use technology. While older employees may be more comfortable with paper timesheets and schedules, millennials prefer to use technology whenever possible. To appeal to their preferences, post timesheets, schedules, documentation, benefits, and training online. Use automated digital alert systems like next shift reminders, review notifications, or birthday and anniversary greetings to connect with them. Businesses that appear unwilling to adopt technology will not be attractive places for millennials to work.
  4. Be a mentor. Offering guidance is a way to create trust with millennials. Send regular updates from the hiring manager to people in the application process. If your company has a mentorship program, call attention to that during the interview process.
  5. Document your procedures. For some, part of the learning process is to learn by doing — to figure out a process that others in the organization already know. But millennials have a different approach to problem solving. They don’t want to “go figure it out” if someone can tell them how to do it more quickly. Set aside the perception that 10 minutes of downloading information is laziness. Allowing them to take it forward will challenge and excite them.
  6. Make work fun and challenging. For millennials, work is supposed to be fun. Keep your employees engaged by giving them more responsibilities so they feel like they are moving somewhere. Millennials love change, so mix it up for them. Also keep in mind that a millennial’s time frame for completing goals is 18 months or less – anything beyond that may not motivate them.
  7. Provide frequent feedback. Millennials enjoy instant gratification, which means they’re always on point to deliver rapidly. As a manager, provide frequent feedback to fill this need.
  8. Promote collaboration and creativity. Both culture and space can contribute to collaboration. In a collaborative culture, managers may encourage staff members to propose new ways of doing things. A collaborative space may be smaller to make interaction easier (e.g. a cozy conference room versus a 20-person boardroom).
  9. Offer individual recognition. While teamwork is meaningful, millennials still want individual attribution. They will embrace the challenge of a single-person task that is part of a larger team project. When they are successful, call them out for a job well done.
  10. Create a work environment that allows a healthy work-life balance. This is one of the things this young generation desires most. Emphasize benefits like PTO. Improving the quality of life both in and out of the office — with social events, benefits, and flexible schedules — will appeal to people looking for more than just a salary.
  11. Avoid an excessively rigorous hiring process. Millennials are informal. Your company may be weeding out high-potential employees on a regular basis. To avoid this, try to loosen things up a bit. In place of the usual two- or three-round interviews, you can hold professional development classes, host open days, conduct informational sessions, or show potential candidates around the facilities. That way you can let the candidates decide for themselves whether they fit your company’s culture or not.
Making Decisions at Your Company

Does Your Company Have a System for Making Decisions?

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An organization can miss wonderful opportunities if it struggles to make decisions. And yet, many businesses do not have the tools or policies to make decisions effectively.

A few influential business owners have surprising ways to foster a culture of healthy decision making. In an interview with The Wall Street Journal, the new CEO of Coca-Cola Co. said that he is hoping to “shake off a culture of cautiousness” within the company and encourage his team to “make mistakes.” Amazon founder Jeff Bezos once noted that when making decisions with his team, he relies on one philosophy: “disagree and commit.” This means that if the leadership team does not reach a consensus, it still makes a decision. Then, Bezos asks each member of the leadership team to make his or her objections known. After that, everyone commits to the chosen plan, whether they like it or not. This allows the organization to move ahead without consensus, and it allows everyone to have a voice.

Both of these leadership philosophies revolve around the idea that failure is a necessary piece of any business. Think about it: in a competitive market, sustainable businesses are always developing new services and diversifying revenue streams. However, not every new idea works — and that means that failure is an inevitable part of market-driven strategy. Therefore, businesses that embrace failure are more likely to foster a healthy atmosphere for decision-making.

Why businesses fail to make decisions

Some organizations fail to act in the face of new challenges or opportunities. This causes their market position to erode and their cash reserves to dwindle. They either fail to decide on a plan or they do not implement their plan in a timely manner. Why does this happen?

This is where it gets complicated. Often it is because the contractor doesn’t have the workforce management tools to accurately analyze the business’s posture and to manage new projects well.

  1. The CEO doesn’t have the right environmental or financial information to make market-oriented strategy decisions.
  2. The company does not understand either the degree of downside risk or the return-on-investment. Doing nothing can be more risky than embracing change.
  3. The organization is risk adverse because of past failures and will not approve a proposal with downside risk.
  4. The management team lacks the tools (metrics-based performance analysis, real-time project management control, and service reporting) to go from idea to service.

Tips for making decisions

Here are some rules of for effective decision making:

  • Don’t allow looming decisions to paralyze your team. Launching a new service line, agreeing to a value-based contract, investing in new technology, initiating a new merger or acquisition, creating a partnership — these are big decisions that require decisive action. Decide yes or decide no, but do not decide nothing. As Mr. Bezos said, that doesn’t mean everyone has to agree with every decision you make; but it does mean you need to actually make a decision.
  • Once you’ve made your decision, find a way to help your internal stakeholders embrace it. This includes telling your team reasons for the change, building a culture that embraces change, and developing the talent to manage change.
  • Use metrics to manage the change. Effective workforce management technology can provide these metrics. If managers do not have real-time information on time and attendance, schedules, orders, inspections, and other critical metrics in good time, problems may go undetected.
Flexible Schedules

The Benefits of Offering Flexible Schedules

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Working a fixed schedule is a relic of the last millennium. At one time, most white-collar workers were tethered to an office, and a clear line existed between work and home. But today, more employees are working flexible schedules. Time and attendance systems now let employees clock in and out by phone or internet, without necessarily coming into the office. Certain positions — such as security officers or life guards — usually cannot choose their hours. But other positions naturally allow for schedule flexibility.

Flexible schedules have four primary benefits for your business:

Increased Productivity

Flexible schedules allow employees to work when they’re at their best. If a worker is a morning person, he can work in the morning. If he fades at 2, he can take a siesta and return to work when he are more rested. In the end, a more energetic worker is a more productive worker.

Less Absenteeism

Life happens: kids get sick, the cable guy can only come between 2 and 4, and the dentist can only fit you in at 10:30. Instead of calling in sick or taking paid time off, flexible schedules let employees put in a full working day before or after they attend to personal business.

Healthier Employees

A University of Minnesota study found that employees who had flexible schedules got almost an hour more sleep during nights before work. They were less likely to work when sick and more likely to get medical attention when they needed it. Ultimately, flexible schedules improved health and energy, and decreased stress and work-family conflict, the study found.

Flexible Schedules Attract Talent

Employers who offer flexible schedules are better able to attract talent, especially millennials who value their independence and work-life balance. In fact, the Sloan Center on Aging & Work at Boston College found that employers who don’t offer a flexible work environment “may find themselves at a competitive disadvantage in recruitment of talent for their organizations.”

Sometimes, it is hard to offer a flexible schedule; service staff may need to be on duty at 9:00 sharp, for example. But you may find that many other positions lend themselves to flexibility, and increased productivity plus a happier workforce is a win-win situation.

U.S. Department of Labor - Managing FMLA

Avoid These FMLA Pitfalls

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Employers should never take a leave from dealing with the Family and Medical Leave Act’s (FMLA) requirements. The FMLA entitles eligible employees of covered employers to take up to 12 weeks unpaid, job-protected leave in a 12-month period for specified family and medical reasons. It guarantees continuation of group health insurance coverage under the same terms and conditions as if the employee had not taken leave. Read about these common FMLA pitfalls.

1. Untimely FMLA Requests

When an employee takes extended leave, managers sometimes fail to tell HR right away. This can be disastrous, because an employer cannot retroactively implement FMLA leave. If a manager waits a week to inform HR, it could delay the start of the 12-week FMLA period. This means an employee could end up taking more than 12 weeks of leave, which would impact staffing and productivity. To effectively manage FMLA, an employer must take proactive measures to properly enter and account for leave time.

Contractor Workforce Management allows employees to request FMLA like any other benefit time. If the manager fails to act on the request, Contractor Workforce Management reminds the manager and notifies HR. Employees do not receive pay for these hours, but the hours are tracked.

2. Failing to Keep Track

Another common mistake employers make when managing FMLA is failing to keep track of an employee’s use of FMLA leave, particularly when it is intermittent. As a result, an employer might give the employee more FMLA leave than he or she is entitled to. Employees can take FMLA leave in as little as 15 minute increments, so a robust, accurate system is crucial. Contractor Workforce Management allows organizations to record each employee’s FMLA leave. It tracks total hours allowed (480), hours taken, and hours remaining.

3. Missing Required Notices

Employers sometimes fail to provide required notices to employees. FMLA requires employers to provide four notices to employees seeking FMLA leave:

  • A general notice. This is a permanent notice that employees are always able to access, such as a poster on the wall or in an online employee portal.
  • An eligibility notice. When an employee requests FMLA leave, the employer must give the employee a written acceptance/denial letter within five days of the request.
  • A rights and responsibilities notice. Every time an employer gives an eligibility notice, the employer must also provide a notice detailing the employee’s rights and responsibilities.
  • A designation notice. This is a written notice that an employee’s leave is approved/unapproved under FMLA.

Employers must stay on top of these notices to comply with the law.

4. Providing Overly Broad Coverage

Sometimes employers provide FMLA leave in situations that are not covered. For example, if an employee has not worked an appropriate amount of hours in the past 12 months, he or she is not eligible for FMLA leave. An employer can easily lose track of this if employees use a paper-based time & attendance system. If an employer allows unauthorized FMLA leave by mistake, and the employee later experiences a qualifying event, the employer may deny additional leave. In this case, the employer would be violating the law unintentionally. If the employee realizes this, the employer could face legal ramifications.

5. Accepting Incomplete Certifications

In some cases, like when an employee is suffering from a severe health condition, employers require a certification to prove an employee needs to take leave. However, employers sometimes accept incomplete certifications that are incomplete. For example, an incomplete certification may not state the frequency and duration of the intermittent leave.

6. Enabling FMLA Abuse

The FMLA is ripe for employee abuse. Some employers find themselves with large numbers of employees with certified intermittent leave. Those employers need a plan to keep all employees honest with respect to their use of FMLA.

7. Overlooking the ADA

Employers sometimes fail to realize that a serious health condition that requires 12 weeks of FMLA leave may also constitute a disability under the Americans with Disabilities Act (ADA). Even after 12 weeks of FMLA leave, the ADA or state law may require more leave as a reasonable accommodation.

8. Not Having FMLA Policy

Employers can choose to implement FMLA leave on a rolling 12-month period or within a calendar year. Every organization should have a written FMLA policy that addresses this choice. This way, the employer can choose whichever option is most advantageous rather than leaving the choice up to the employee. Typically, the 12-month rolling option is best for organizations. If using the calendar period, employees can stack leave during the last 12 weeks of one year and the first 12 weeks of the new year.

9. Failing to Train Supervisors about Managing FMLA

Untrained supervisors might not handle FMLA requests appropriately, and may actually violate the law. To avoid legal ramifications, organizations should train all supervisors about managing FMLA — even those ones who do not typically administer leave.

Contractor Workforce Management FMLA Solutions

Contractor Workforce Management solutions help organizations manage FMLA requirements in every situation.

  • Employees can request FMLA from any location using any internet-enabled device. FMLA requests go to the employee’s manager for approval. On approval, non-payable records go through to the employee’s time and attendance records. If the employee is scheduled to work, their shifts are automatically re-opened.
  • Thereafter, either the manager or HR can document any additional leave the employee takes. If a manager fails to respond to the employee’s request promptly, the manager receives an automated reminder. The employee does not receive pay for these hours but the hours are tracked. Contractor Workforce Management also maintains a complete history of FMLA requests.
  • Employers can establish a balance of the allowable hours, and Contractor Workforce Management automatically updates these hours by FMLA transactions. For example, if the employee has taken 200 hours the remaining balance would be 280 hours. Contractor Workforce Management keeps a detailed record of all transactions.
  • If the employee requests more than 480 hours of FMLA, the request will be blocked.
  • HR can enter the 480 hours into the employee record when the FMLA time commences.