Will your 2008 pay increase keep pace with the rising price of gasoline? Probably not. According to a study by Mercer Human Resource Consulting, American employers plan 2008 average pay raises of 3.8% for management and professional staff, 3.7% for office and technical employees, and 3.6% for production, trade, and service workers.  The very top “star” performers could see raises of as much as 5.7%, with average employees finding 3.5% more in their paychecks, and lower performers 1.7%.  The trend toward providing more compensation through incentive pay also continues.

Discrimination lawsuits are expensive.  Class action suits, in which a small group of plaintiffs represents a large class of employees regarding discrimination issues and conduct applicable to the group, are outrageously expensive. We’ve seen an explosion of wage and hour (e.g., overtime) class actions over the last decade.  Recently one of the largest ever ($200 million) gender discrimination cases has been filed.  In the case, female sales reps at Novartis Pharmaceuticals contend that they have systematically been discriminated against through compensation, performance appraisal, and promotion practices. They also allege widespread pregnancy discrimination Plaintiffs point to both statistical evidence, that shows lower appraisal scores and pay given to females, and also to anecdotal evidence of discriminatory practices.  This case serves as a reminder for all employers to periodically examine their key HR practices to ensure that there are no widespread, systemic patterns of discrimination, either intended or unintended.  Additionally, pregnancy discrimination cases are on the rise.  Do your managers understand employees’ rights in this area?

It has been a tough couple of weeks, at least regarding employment law, for New York celebrities.  A federal jury has ordered the owners of the New York Knicks professional basketball team to pay $11.6 million to a former team marketing executive who alleges she was sexually harassed by, and retaliated against for complaining about, Knicks president/coach and former Detroit Pistons NBA star Isiah Thomas.  The jury agreed with the plaintiff’s allegations that Thomas called the woman degrading and insulting names but later proposed a romantic liaison to her.  Part of the evidence used against the Knicks was the fact of a player’s affair with a team intern, used to show that the team had a “frat house” mentality rather than that of a professional work environment.  In other New York news, other women in New York have sued the company owned by New York Mayor Michael Bloomberg, alleging he “fostered, condoned and perpetuated” discrimination against female employees.  The plaintiffs allege that females, notably pregnant women, were denied employment opportunities at the Mayor’s company.  Bloomberg also was sued for pregnancy bias and sexual harassment in 1997, a case that was later settled.

Back now from its August Summer recess, the United States Congress has planned a busy Fall legislative agenda, considering a number of issues that will impact employment law and those who must deal with it. The Senate has passed a bill requiring parity of sorts in mental health benefits provided to employees. Another parity bill with differing provisions is pending in the House of Representatives. The House has held hearings on a bill precluding, on a national basis, job bias based on actual or perceived sexual orientation. This bill is not likely to pass this year, but may get new life depending on the outcome of the 2008 elections. Also pending are a bill prohibiting employment discrimination based on genetic status (passed by the House and pending in the Senate, where it likely will pass), a bill eliminating the use of arbitration in employment disputes and a bill seeking to overturn a Supreme Court case that imposed a rigid deadline on when gender wage discrimination lawsuits can be filed (this passed the House but President Bush says he will veto it). No further news regarding federal action on immigration reform, but watch for this to be a hot topic in various state legislatures. Past updates have discussed the new Department of Homeland Security regulations on what an employer should do when getting notice that an employee’s Social Security number does not match the government’s database. These have not yet gone into effect, due to a holding order issued by a federal judge presiding over a lawsuit challenging the legality of the regulations.

A New Jersey court has ruled that a union protester can be prohibited from hoisting a ten foot balloon in the shape of a rat during a labor protest. The court held that the town ordinance at issue was still enforceable even though it allowed large inflatable balloons at store grand openings, but not labor protests. The dissenting judge pointed out that the opinion was flawed, because a new Disney store could display a ten foot balloon rat to promote the movie “Ratatouille” but the same rat would be illegal at a labor protest. When told of the court’s opinion, the disappointed balloon-hoisting labor protester reportedly exclaimed, “Rats!”

For the second consecutive year HRN Management Group has been named by the Mountain West Capital Network as one of the top 100 fastest growing companies in Utah. HRN placed 81st in 2006 and we are looking to improve upon that ranking in 2007. Final results will be announced on October 22nd at an awards luncheon taking place at the Grand America Hotel in downtown Salt Lake City.

The Office of Federal Contract Compliance (OFCCP)  recently published its final rule implementing amendments to the Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA).  If you are an affirmative action employer you’ll want to take note.  The amendments made several changes and will apply to government contracts entered into on or after December 1, 2003.   The threshold government contract which is subject to VEVRAA has been raised from $25,000 to $100,000.  Additionally the amendments changed the categories of veterans protected and altered the required job listing requirements.  For more information go to the OFCCP website at:  http://www.dol.gov/esa/ofccp/index.htm.

According to a Salary.com survey employees say they waste as much as 20% of their workday.  Personal internet use (35%) was the biggest time waster among employees, followed by talking to coworkers (20%), or handling personal business (17%). Over 20% of employees said they wasted time because they didn’t have enough work to do, 14% indicated it was because of the long hours worked, 12% because they weren’t paid enough, and 11% because they weren’t challenged on the job.  Employees in their twenties wasted more time than any other age group.