HR Focus

July 2004--Contents

 

 

PRESIDENT’S MESSAGE

I would like to report that we had a very successful workshop on June 30 regarding the new “Fair Pay” Overtime Exemption Regulations from the Department of Labor. Bettye Lynn did an outstanding job reviewing the requirements of the new regulations after we were somewhat confused by the representative from the Dallas Area DOL Wage and Hour Office. Remember, these new regulations take effect on August 23, 2004. In my City we are in the process of reviewing our “exemptions” now.

The next TMHRA “Event” will be the Employment Law Seminar scheduled at the Plano Marriottt at Legacy Town Center, September 16-17, 2004. We have speakers lined up from two different law firms plus a Washington D.C. update from IPMA-HR Executive Director Neil Reichenberg. You should have already received publicity on the seminar or it is available on the TML Web site. Don’t miss this one.

Active TMHRA members should have received their ballots to elect next year’s officers. The nominating committee has proposed an outstanding slate of qualified candidates. Please consider your selections carefully and then be sure to mail your ballots as instructed. We depend on your cooperation to make the Association a success.

Barry Robinson
TMHRA President

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UPCOMING EVENTS

September 16-17
Employment Law Seminar

Are you wondering what is the latest with the EEOC, and discrimination in the workplace? How about e-mail and internet privacy when using city computers or dealing with the interplay of ADA, FMLA, and Workers Compensation. These are just a few of the topics that will be discussed during the annual Employment Law Seminar. Plan now to join your colleagues at the Marriott in Plano on September 16-17 to hear attorneys Bettye Lynn, Julia Gannaway, Lu Pham, Maureen Moore, and Julie Ross of Lynn Pham Moore & Ross discuss these topics as well as Bettye Lynn’s public sector legal update. See you in Plano!

October 27-29
TML Annual Conference
Corpus Christi

November 19
Human Resources Issues and Insights
San Antonio

MARK YOUR CALENDARS NOW!!!

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CONFERENCE HIGHLIGHTS

NEW FLSA “WHITE-COLLAR EXEMPTIONS” WORKSHOP
FairPay Rules: Will You Be Ready?
Written By: Shanté R. Jordan, IMPA-CP, HR Generalist-City of Allen

On June 30, 2004, 198 people gathered in Dallas for TMHRA’s FLSA workshop, overflowing the Crowne Plaza like never before for our one-day event!!! We walked into the first session with the “deer in the headlights” look on our faces, terrified to hear what the sessions would bring. TMHRA President, Barry Robinson welcomed everyone to the workshop and introduced our first speaker, Mr. Gary Edwards.

Mr. Edwards, Assistant District Director of the Department of Labor, directed everyone through various pages of his presentation and kept attendees “alert” as he discussed the new tests for exemptions, executive duties, administrative duties as with learned professional duties. Bettye Lynn provided great legal advice as with comedy relief by discussing the impact of new white-collar regulations on cities. Bettye further clarified the new tests and duties as they relate to the revised FLSA laws. It was also discovered that first responders were exempted from the “white-collar” exemption thanks to their strong lobbying force! Another insightful component of Bettye’s presentation dealt with the exceptions to the “no deduction” rule. As public entities, we are not bound only to the six exceptions to this rule, we actually have seven!!! Because of the nature of our existence (public accountability), we are allowed to deduct from an exempt employee’s pay for reasons other than the standard exceptions.

After lunch, Bettye continued her presentation on the impact of the new white-collar regulations on cities. It was recommended that HR departments do the following:

  • Assign an HR Manager with responsibility for FLSA compliance;
  • Identify currently exempt employees who earn less the $455 per week;
  • Identify employees who earn $100,000 or more;
  • Review job responsibilities;
  • Revise job descriptions; and
  • Coordinate with the payroll department.

The day concluded with a practical application of the new regulation in which attendees reviewed “dated” rulings from DOL regarding exemption status changes and determined if DOL’s rulings would change under the new regulations. Attendees also had the opportunity to review job descriptions from local municipalities to determine if the status of the position would change under the new regulations. Overall, the session proved to be very interesting and insightful. Because of the information that was delivered in the sessions, the “deer in the headlights” looks dissipated into looks of determination as we knew what must be done to be in compliance with the new regulations!

TMHRA SPONSORS

TMHRA is grateful for the continued support of our sponsors. The sponsorships allow us to keep all events reasonably priced and affordable for all members. Thank you to the following sponsors for their support and contributions through the year:

AIG VALIC
City-County Benefit Services (C-CBS)
First Financial Capital Corporation
Gallagher Benefit Services
Great-West Retirement Services
ICMA Retirement Corporation
Justex Systems, Inc.
Texas Municipal League Intergovernmental Risk Pool
Texas Municipal Retirement System
The Waters Consulting Group, Inc.

 

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ARTICLES OF INTEREST aka NEWS YOU SHOULD USE

IS ETHICS ALWAYS A MATTER OF FOLLOWING THE RULES?
The Institute of Management Accountants
(Although this article alludes to accounting decisions, it has a much broader application)

Business people love lists of rules, from The Seven Habits of Highly Effective People to 1001 Ways to Reward Employees. This love of rules extends to business ethics because those companies with ethics programs hinge them on codes of conduct-in the final analysis, a list of rules meant to engender ethical behavior.

But despite an instinctive affinity for rules, human beings also know that being virtuous is more a matter of having the right values (appropriately flexible guidelines that treat ethical behavior as a matter of general compliance and ethical intent) than it is a matter of following lists of rules.

Thus, most people facing ethical pressures at work don't, in the heat of the moment, consult rules, policies, or regulations. If they're truly concerned about doing the right thing, they consult their "gut" feelings about what they should do. Though an organization's rules may play a role in forming the employee's sense of organizational values and expectations, rules leave holes and room for interpretation and often take a back seat to observed behavior.

Choosing among wrong and wrong, right and right, and the unknown

Is the financial officer who placed undue pressure on her team of analysts to "make the numbers" in order to save the jobs of deserving employees any less blameworthy than her counterpart who bent accepted accounting practices solely for personal gain? What torment did biblical Abraham face, ascending the mountain under orders to kill his son Isaac? Abraham's ethical conflict required determining whether the ethically appropriate action was prescribed by what he had thought was his Maker's expectation (to care for the members of his family) or by his Rule Maker's command (to kill Isaac). The value and the rule conflicted. If he followed the value, Abraham would have disobeyed a direct order; following the order (that is, the rule) would have offended a deeply held ethical value.

In business, employees frequently face novel situations for which there are no applicable rules. Potentially even more problematic than these situations are those cases in which following rules or accepted practices may produce an unethical outcome.

Can there be four steps to ethical decision making?

Because rules have limitations and ethical outcomes are rarely definitive, the standard practice in business ethics "training" programs has become the introduction of a "decision-making model"-no less than a short, step-by-step list of rules to help a decision maker reach an ethical course of action. For example:

Step 1: Identify the facts and issues.

a) Who will be affected by (who are the stakeholders of) my decision?

b) What will be the short- and long-term consequences of possible courses of action?

Step 2: Identify applicable values.

a) How will possible courses of action impact potential stakeholders?

b) What considerations should I have with regard to:

  • The rights of stakeholders?
  • Justice among stakeholders?
  • The (short and long-term) balance of good among stakeholders?
  • Stakeholders to whom I am justifiably partial?
  • My gut feeling about what is "the right thing"?
  • What I think those whom I respect for their virtue would judge to be "the right thing"?

Step 3: Seek help if needed.

a) Which courses of action might keep me awake nights?

b) Can my supervisor or the Human Resources department provide guidance?

Step 4: Reach the best decision based on the available information.

a) Is my decision legal and within organizational policy?

b) Do organizational values and my personal values support my decision?

But four steps (or rules) and eight questions can't lead a person in each and every ethical dilemma to the "right" decision. When a person reaches the end of Step 4 and the answers to the questions, respectively, are "yes" and "no" then the person merely knows what he or she already knew-that he/she has a serious ethical dilemma on his/her hands. With regard to significant ethical dilemmas that presumably put the professional integrity of an IMA member at stake, the IMAs Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management ominously state:

"If the ethical conflict still exists after exhausting all levels of internal review, there may be no other recourse on significant matters than to resign from the organization and to submit an informative memorandum to an appropriate representative of the organization."

Clarifying the problem, not the solution

In general, what should an individual do (prior to the extreme step of resignation) when faced with a legitimate situation in which his or her values conflict with the rule or accepted practices or there are no rules to apply? Should he/she rely solely on ethical instincts, trusting that the employer will always appreciate attempts to be ethical, even if he/she violates the rules or accepted practices in doing so?

Absolutely not. Even in the most compassionate corporate culture, an employee certainly can be blamed for not following the rules or even for following them to the letter while failing to consider the spirit. Bending accepted accounting practices, even for apparently ethical reasons, is, at best, shortsighted and, at worst, potentially destructive.

On the other hand, the organization that places rules and practices over ethical outcomes isn't likely to retain the loyalty of its employees or its other stakeholders. In the decision-making process, ethical values should serve as ethically legitimate "wiggle" room within which to interpret rules-not to rationalize unethical behavior but to exercise appropriate discretion to reach an ethically acceptable outcome.

The beneficial outcome of following a structured ethical decision-making process is less often the "right" answer and more often the ability to think clearly about the dilemma at hand. Being able to articulate your decision-making rationale and, where applicable, your rationale for wanting to break a rule or practice is a valuable quality that can lead to decision-making progress. Possessing this quality can help an employee ascertain whether or not he/she works for an employer that shares his/her ethical values.

A negative answer will raise a dilemma of a different kind: whether he/she should work for (and further the interests of) that organization at all.

About the Authors

Lawrence A. Ponemon, CMA, CPA, CIA, CFE, Ph.D., is partner and global leader of Compliance Risk Management for PricewaterhouseCoopers. larry.ponemon@us.pweglobal.com

Christopher Michaelson, Ph.D., is a manager in the Business Ethics Advisory Services practice within Compliance Risk Management at PricewaterhouseCoopers. christopher.michaelson@us.pweglobal.com

Curt Verschoor is the Ledger & Quill Research Professor, School of Accountancy, DePaul University.

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POLICIES NEEDED!!

In our continuing efforts to serve our members, TMHRA has now made available on-line policies and procedures manuals to our member cities. The Board thought it would be a great idea and would provide a benefit to all members. Those new to HR will have a valuable resource when writing policies, or, if someone needs to update policies, they will have access to best practices from around the state with just a few clicks of the mouse.

To assist us in expanding the existing resource or policy manuals, we are asking that you send a copy of your policies and procedures to be included in the password protected “members only” section of TMHRA’s Web site. The policies need to be sent electronically to Petrena Barnes (pbarnes@tml.org). They are to be in a Word document format. If you have a problem with that format, please call Petrena at 512-231-7454.

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A LITTLE HR HUMOR

Performance Evaluation Comments

The following are from actual performance evaluations:

  • I would not allow this employee to breed.
  • Works well when under constant supervision and cornered like a rat in a trap.
  • When she opens her mouth, it seems that it is only to change feet.
  • He would be out of his depth in a parking lot puddle.
  • This young lady has delusions of adequacy.
  • He sets low personal standards and then consistently fails to achieve them.
  • This employee is depriving a village somewhere of an idiot.
  • This employee should go far, and the sooner he starts the better.
  • Got a full 6-pack, but lacks the plastic thing to hold it all together.
  • A gross ignoramus -- 144 times worse than an ordinary ignoramus.
  • He doesn't have ulcers, but he's a carrier.
  • I would like to go hunting with him sometime.
  • He's been working with glue too much.
  • He would argue with a signpost.
  • He brings a lot of joy whenever he leaves the room.
  • When his IQ reaches 50, he should sell.
  • If you see two people talking and one looks bored, he's the other one.
  • A photographic memory but with the lens cover glued on.
  • A prime candidate for natural de-selection.
  • Donated his brain to science before he was done using it.
  • Gates are down, the lights are flashing, but the train isn't coming.
  • Has two brains: one is lost and the other is out looking for it.
  • If he were any more stupid, he'd have to be watered twice a week.
  • If you give him a penny for his thoughts, you'd get change.
  • If you stand close enough to him, you can hear the ocean.
  • It's hard to believe that he beat out 1,000,000 other sperm.
  • One neuron short of a synapse.
  • Some drink from the fountain of knowledge; he only gargled.
  • Takes him 2 hours to watch 60 minutes.
  • The wheel is turning, but the hamster is dead.

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FACT IS STRANGER THAN FICTION

Actual events from various interviews:

  • "He wouldn't get out of the chair until I made him an offer."
  • "Pulled out a Polaroid camera and snapped a picture of me. Said he collected photos of everyone who interviewed him."
  • "Candidate asked me if I would put on a suit jacket to ensure that the offer was formal."
  • "Brought his mother into the room for the interview."
  • "Said he wasn't interested in the position because it paid too much."
  • "When I refused to make a job offer, he tried to hit me."
  • "I'm not actually overqualified. My resume is full of lies."

Actual statements from resumes:

  • Job Objective: "?"
  • "Passed the CPA exam the first time. I am considered to be one of the most creative and imaginative accountants."
  • "Hobby. Collecting money."
  • "Memberships: Florida Institute of CPA's; Diner's Club; Elvis Presley Fan Club; American Airlines Admiral's Club."
  • "Subscriptions: The Wall Street Journal; Washington Post; Forbes; Business Week; Playboy and Penthouse (for the articles, of course)."
  • "Reason for leaving: Anxious to improve my personal relationships."
  • "1979-1990 XYZ Corporation. Internal Auditor. Reason for Leaving: Temporary job."

Excerpts from actual cover letters

  • "I have lurnt Word Perfect 6.0 computor and spreasheet progroms."
  • "Received a plague for Salesperson of the Year."
  • "Failed Bar Exam with relatively high grades."
  • "You will want me as Head Honcho in no time."
  • "I am loyal to my employer at all costs. Please feel free to respond to my resume on my office voice mail."
  • "I have become completely paranoid, trusting completely no one and absolutely nothing."
  • "Wholly responsible for two (2) failed financial institutions."
  • "I have an excellent track record, although I am not a horse."
  • "As indicated, I have over five years of analyzing investments."
  • "Note: Please don't construe my 14 jobs as 'job-hopping.' I have never quit a job."
  • "Marital status: Often. Children: Various."
  • "Reason for leaving last job: They insisted that all employees get to work by 8:45 every morning. I couldn't work under those conditions."
  • "References: None. I left a path of destruction behind me."

From the website of yourhireauthority.com

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NEWSLETTER INPUT NEEDED!!!

This is YOUR newsletter and we want to ensure it provides you with a valuable source of information from TMHRA. If you have any ideas, articles, or information you would like to see included in future newsletters, please submit them to the Newsletter Committee.

Newsletter Chair
Bonita J. Hall
903-237-1206 (phone)
903-237-1248 (fax)
bhall@ci.longview.tx.us

   
 
©2010 Texas Municipal Human Resources Association, 1821 Rutherford Lane, Suite 400, Austin, TX 78754; 512-231-7400; (fax) 512-231-7494; tmhra@tml.org