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August 2008 Archives

August 7, 2008

ELT Study Reveals Gaping Holes in Wage & Hour Compliance: Employers Uncertain of Time Reporting, Complaint Handling and Defensive Training

$24.4 million - that's the average settlement award for a lawsuit alleging violations of state wage & hour laws. [1] 250 percent - that's how much federal Fair Labor Standards Act (FLSA) complaint filings have increased since 2003. [2] The numbers are staggering, but House Democrats are vowing for even stricter enforcement standards of wage and hour laws.[3]

2009 is shaping up to be a grim year for employers.  And the wage and hour war continues to wage (pun intended) on.

ELT just wrapped up a survey of more than 2,000 legal, ethics, and HR professionals and the results are eye opening.  60 percent of respondents reported that either their employees were not accurately reporting all hours worked, or they didn't know if they were.  More than 40 percent of respondents were not confident that their employees even knew how to file a wage and hour complaint - a gaping hole that drastically increases liability, and that the plaintiff's bar is eager to jump in.

While 60 percent of respondents in an earlier ELT survey reported providing extensive harassment and discrimination training to their workforces, most employers are surprised to learn that there are now more wage and hour class action lawsuits than class actions arising from all other forms of discrimination, combined.   Despite the growing tidal wave of risk exposure, less than a quarter of respondents reported providing any kind of wage and hour training to their employees.

The survey really underscores that employers are only just beginning to realize most wage and hour violations are easily preventable. With proper policies and training, employees and managers will understand and follow critical time keeping policies - eliminating the most common violations. As importantly, employers who conduct comprehensive training can use it to help establish an affirmative 'good faith' defense in litigation, reducing their potential liability by as much as two-thirds.[4]  That makes training a no-brainer – the ROI justification is black and white.

Another benefit of broad scale wage and hour education? Consistent training of all employees can help to fight class action status certification - a phenomenon that is fueling the most high profile, and the most costly, wage and hour lawsuits.

If you haven’t already, check out ELT's online Wage and Hour course.  It educates employees and managers about the basics of both federal and state wage and hour laws, as well as each employer's unique policies. The most powerful feature? The program intelligently configures its content based on the state location of each learner --  a critical component given the important differences among state wage and hour laws, which drive more litigation than their federal counterparts.

And stay tuned for more benchmarking studies from ELT – with the 2009 harassment re-training year around the corner, we’ll have some interesting data to share soon.

[1] Measuring the Value of Class and Collective Action Employment Settlements: A Preliminary Assessment, a study published in December 2007 by New York University School of Law Profession Samuel Estreicher, available at:
http://lsr.nellco.org/cgi/viewcontent.cgi?article=1065&context=nyu/plltwp

[2] Judicial Business of United States Courts, 2007, Table C-2A, available at: http://www.uscourts.gov/judbus2007/contents.html
[3] See http://www.elt-inc.com/blog/2008/07/dol-needs-to-step-up-enforceme.html
[4] See http://www.elt-inc.com/docs/Training_Damages_and_ROI.pdf

August 29, 2008

What The Movies Teach Us About Harassment Training

Ahhhh... The movies. Whether you’re in the comfort of your home or at the theater, there's so much to see, and a lot to ponder.
 
Like what makes certain flicks so successful, even when they're seemingly "fringe” or in-your-face offensive.  Take Borat: Cultural Learnings of America For Make Benefit Glorious Nations of Kazakhstan and Harold & Kumar (Movie 1: Go To White Castle and Movie 2: Escape From Guantanamo Bay).   The latest in this line of blockbusters?  Tropic Thunder (which I've heard so much buzz about, I have to catch it this weekend, and let the honey-do list just continue to fester ...).
 
These movies have all been surprise hits, and amassed pseudo cult followings. Their model for success? Take every stereotype and politically inappropriate scenario you can dream up, push it one step further, and call it entertainment. (Don’t worry working readers, the links above send you to Wikipedia, not the official movie sites.)
 
A lot of people see these movies as baseless vehicles for tasteless humor - pandering to the lowest common denominator.  But others have a different point of view that leans in the direction of intellectual satire.  If you take it to the extreme and put our most shameful behaviors right in the viewer's face, you force them to confront humanity's dirty laundry and potentially start a meaningful dialogue about prejudice, diversity and why we all seem to be capable of treating each other like crap. And maybe, just maybe, the people who paid $10 for their ticket and another $12.50 on assorted snacks and beverages, will see how preposterous and outlandish racism, sexism and all the other "isms" are. Hey - that's what the New Yorker staff thought when they published a cover last month that satirized Barack Obama and his wife Michelle.
 
I think the audience for these movies really does fall into two separate camps.  The folks who love offensive, racially tinged toilet humor for exactly what it is, and those who see the irony of these films, and even value them for speaking up about the things nobody wants to face head on.  The comedy at least provides a vehicle for confronting reality.
 
But when it comes to training your employees about sensitive issues, the Borat approach is a sure-fire recipe for complete disaster. Sure, satire and humor can get people talking, but they’re not the right vehicle for creating a constructive dialogue about issues like race, gender, sex, sexual orientation, religion, and national origin.  Similar problems arise when you go to extremes to make a point. Training programs that hit learners over the head with outlandish examples of harassment and clear-cut violations of policy are hard to take seriously, and don't really help employees navigate today's workplace.
 
And let’s be honest, life is really much more nuanced and subtle than what we see on the big screen. The issues we face as employees and managers each day land us smack dab in the middle of a gray zone- where answers aren't so clear.
 
I’ve heard complaints so many times from clients about training products that use blatant and over-the-top examples.  For the most part, employees get the obvious “come-on-baby-you-know-you-want-it” stuff is not acceptable. When it comes to issues like race, religion, national origin, gender, age, and sexual orientation, it's hard to find that “sweet spot” where people can talk openly without offending each other, and can learn what it means to be respectful and sensitive without feeling like they’re being persecuted or blamed.
 
But that’s exactly what your harassment training must be able to do. Which means you need a program that is sophisticated and intelligent enough to tackle the tough issues, present them in a thought-provoking manner, shine a light on the gray areas, and engage your employees- without going over the top or offending them in the process.
 
It's a tall order, but it's the best way to ensure that your employees understand the rules and hear your message loud and clear.  
 
With an AB 1825 re-train year around the corner, it’s probably time to assess your harassment prevention programs, and see if they’re up to snuff for another round training.  Have they been updated to hit recent hot-button issues like sexual favoritism, bullying, gender identity and gay marriage?  Are they fresh enough to teach your employees something new, and avoid the anarchy that may ensue if you make people take the exact same thing, again?
 
A lot to tackle, but perhaps after the holiday.  
 
So what movie are you planning to catch this Labor Day weekend?...
 

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About August 2008

This page contains all entries posted to Sexual Harassment Training : ELT, Inc. : AB 1825, Employment Law, Online Harassment, Compliance, and Harassment Training in August 2008. They are listed from oldest to newest.

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