ESTA, ESTA - Read All About It!
ESTA, Michigan’s Earned Sick Time Act continues to raise questions for employers, particularly smaller employers who offer limited paid sick time.
For example:
• If you have 10 or more employees (including full-time, part-time, and temporary employees), you are required to provide at least 72 hours paid sick time
• If you have less than 10 employees, you still need to offer 72 hours, but only 40 of those hours need to be paid.
• Employees can use the paid time off in amounts equal to "the smallest increment of time used by the employer's payroll systems for absences.
February isn’t that far away, so what should we be doing to prepare?
Should employers be evaluating their current time off policies and comparing them to the new requirements?
Absolutely, this is the time to look at what you do and what changes you should be making.When should we implement these changes?
Our thought about this in August was that the law was not likely to be a priority for lawmakers during election season and probably would not change. However, there’s been significant lobbying since then, so we are encouraging our customers to hold off on any changes until the end of the year to see what develops.What should I be looking for in my policy?
If you have 10 or more employees, you should be making certain that you provide 72 hours of paid time off, that you provide for employees to take that time for the reasons listed in the Act (Domestic violence, sexual assault, care for family members, etc.) and that they are able to accrue and carry over up to 40 hours of unused time into the next year. Want more details? The state has published a helpful page of FAQ’s for employers who are working to plan ahead for the new law. We’ll continue to keep you posted as the news on this law evolves. Questions? Our team is only a call away!
Kevin Brozovich
SPHR | CHIEF PEOPLE ADVISOR
Meet Kevin Brozovich, energetic entrepreneur, people-focused team-builder and HR practitioner-turned consultant. For almost 10 years, Kevin was Founder and Chief People Officer of HRM Innovations, a Kalamazoo-based Human Resources consulting firm many would consider the top in the region. After pulling his hair out making daily decisions about running the business (does it matter where the coffee comes from?), Kevin joined forces with the Rose Street Advisors team so he could solely focus on what he loves most: working with clients.Interested in more?
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While leaders inevitably complain about having to do reviews, they also say that they want to develop their employees. How do those two concepts coexist?
Think of it like this: Reviews are foundational.
If you don’t have good base information, you can’t develop a plan to encourage change and growth. To get that base, you need more than what a basic performance evaluation provides. After all, if the only information you share about an employee is whether they meet expectations, exceed them, or shouldn’t be working here, it’s hard to develop a targeted plan for their future.
We encourage leaders to start with an evaluation process that includes the most important aspects of the job and provides behavioral examples of completing those successfully. Once you know how an employee compares, you can start the conversation about the knowledge, skills, and abilities they need to develop by looking at examples of what it would require for them to take their performance up a notch. A best practice is to schedule regular touchpoints to monitor progress and encourage their growth throughout the year.
That opens the door to individual development plans and succession planning. Those are key to long term employee success and retention.
Comfortable with the system you have now? When’s the last time an employee shared with you that their review was impactful in a positive way? If that’s not what you’re hearing, it may be time to reevaluate your process.
Want to learn more about ways to evaluate performance that can be used as a basis for developing employees? The HR Consulting team at Rose Street is ready to help!
Tuesday, April 23, the Department of Labor announced the new rule for a minimum salary threshold for exempt employees. Effective July 1st, 2024, the annual salary threshold for exempt employees will increase to $43,888. This is an increase of $8,320 from its current level of $35,568.
Why is this important? The annual salary threshold is the minimum amount an employee can earn and still be classified as exempt.
To be exempt from overtime eligibility, there are other requirements that still need to be met under the duties test, but this is a straightforward baseline minimum.
Comfortable that your exempt employees earn more than $43,888? Hang onto your hat, the threshold will increase again on January 1st, 2025, to $58,656.
Not certain if your employees are properly classified or need to move some employees back to a nonexempt status? Let us know, we can help.
Want to learn more? You can read more about the Department of Labor announcement at:
Over the last couple of years, we have had more and more conversations around how to increase employee participation in 401(k) plans from an employer standpoint. As a plan sponsor, HR professional, and/or business executive, it’s important to educate employees on the benefits offered and provide the right tools and resources to help employees save for retirement.
From the employee’s perspective, some of the questions employees have been asking are:
• "If I choose a deferral percentage, what is the actual amount I am contributing?”
• "How much will be taken out of my paycheck?"
• "If I increase my contribution 1%, how will that affect my paycheck and my retirement account?"
These types of questions are just a couple of examples that show that retirement savings is not the easiest thing to understand. Without fully understanding the specifics of their retirement benefits offered, employees are less likely to participate.
The question then becomes: what can you do as the employer, to show employees the benefits you are offering to them and the value it can bring to their future if they choose to participate? Encouraging employees to save for retirement is crucial for their long-term financial freedom and well-being. As a guide to retirement for employers, an employer may consider the following to achieve this goal:
Picture this. You’re a new employee at your organization and on your first day, they give you the employee handbook.
What’s your reaction:
Is it written in a way that you might actually read it?
Does it represent the kind of culture described during the recruiting process?
Is it up to date with the latest legal requirements?
During 2023, there have been several legal changes, for example:
• The Elliott-Larsen Act was amended to include protections against discrimination based on sexual orientation and gender identity.
• The CROWN Act was passed and further modified Elliott-Larsen.
• The NLRB has added additional guidance that impacts employee rights and work rules.
If you’re not proud to share your handbook, or you haven’t updated it this year, it’s time to give us a call.
We’re happy to help.