All Entries in the "Employment" Category
Personnel Practices: Hiring Basics
by C. Alexander Chiulli, Esq. and Kristen M. Whittle, Esq.
As the first step in the employment relationship, the hiring process is also one of the most important. It is an opportunity for both parties to lay the groundwork for a successful relationship, but employers should take certain steps to ensure that the process is completed properly. In addition, employers should be aware of pitfalls for liability, such as claims of discrimination, breaches of privacy, and violation of laws and regulations governing, for example, drug testing and social media. Even prospective employees, who are not ultimately hired, may present claims in this regard. The following do’s and don’ts are intended as best practice tips to guide employers through the hiring process.
DO avoid questions related to a candidate’s membership in protected classes (e.g., race, gender, age, religion, sexual orientation, or disability). Employers should also generally refrain from including this information, such as an applicant’s gender or date of birth, on an employment application. Unless an employer is subject to affirmative action requirements (and most employers are not), hiring decisions should be made based on a candidate’s merit, and not on his or her membership in a protected class. Instead, employers should focus on determining whether applicants are qualified for a position by probing their education, experience, and skill-level. Through fashioning qualification-based questions, employers will not only obtain more useful information for making hiring decisions, but may avoid potential discrimination claims.
DON’T overlook compliance with industry-specific screening procedures. In areas such as healthcare, child care, aviation, and education, among others, certain screening procedures are mandated by law and essential to protecting the public interest. Failure to complete the required screening procedures can potentially give rise to liability on the part of an employer.
“Through fashioning qualification-based questions, employers will not only obtain more useful information for making hiring decisions, but may avoid potential discrimination claims.”
DO, however, proceed with caution when conducting background checks. While an employer may generally inquire about applicants’ background information during the interview process, employers are not typically permitted to run background checks without applicants’ consent. In addition, a recently-enacted Rhode Island law prohibits employers from inquiring about an applicant’s criminal convictions prior to the first interview. This law, known as “ban the box” because of the prohibition on a check-box on job applications concerning an applicant’s criminal history, provides that it is unlawful for most employers to ask job applicants about arrests, charges, or criminal convictions (including any verdicts or findings of guilt, guilty pleas, or pleas of nolo contendre) on any employment application. Employers who do not use formal job applications are similarly prohibited from asking about these topics until at least the first interview.
DON’T forget to comply with Rhode Island’s drug testing statute, if drug testing is part of the application process. Rhode Island has enacted one of the strictest laws in the nation concerning employee drug testing, and violations can lead to criminal liability. If pre-employment drug testing is not required by an industry-specific law or regulation, employers should consider whether to engage in this practice at all.
DO use only publicly available information about job applicants when conducting screening or due diligence research on social media. The Rhode Island General Assembly recently enacted legislation prohibiting employers from requiring applicants to provide access to their social media accounts or to add the employer as a contact on their social media accounts. In other words, an employer may not require an applicant to connect with the employer on a social media site as a consideration in the hiring process.
By creating a culture of compliance in the hiring process, employers may avoid liability down the road. When in doubt, however, employers should always contact a seasoned professional to help navigate this process.
Putting New Jobs Incentive To Work
by Governor Gina M. Raimondo
This past month has been full of exciting new developments for companies in Rhode Island. We are working hard to make it easier to do business in Rhode Island, encouraging companies to expand and create more high-skill, high-wage jobs.
I want to share the story of one of those businesses with you. Greystone is a manufacturer that was started here in Rhode Island in 1932. They make a variety of machined and plated products, have two locations in Rhode Island and opened a facility in Virginia in 1992. So, when they were thinking about expanding, they started to compare the pros and cons of business climates in Rhode Island and Virginia.
This sounds like a story you’ve heard before, right? The bitter memories of companies uprooting their offices here in favor of more business-friendly states are still fresh in our minds. But this time, the story has a different ending.
After working with the company and talking about their needs, we were able to convince them to expand here. Now 25 good-paying, advanced manufacturing jobs are being created in Rhode Island.
Greystone took advantage of the new Qualified Jobs Incentive. In return for tax credits, the company agreed to hire 25 new full-time employees with an average salary over $50,000, and to keep those jobs here for at least the next 12 years. Greystone will now be able to expand one of its facilities by approximately 10,000 square feet to accommodate new machinery and staff.
This is just one of the early results that shows our economic development tools are working to spark Rhode Island’s comeback. In the last month, these tools have helped three major real estate projects advance, and we’ve awarded 11 innovation vouchers to support partnerships between businesses and universities.
My jobs plan was also created with businesses in mind. Right now, Rhode Island ranks 49th in the nation in unemployment insurance taxes. The proposal would reduce UI taxes without harming benefits, saving businesses approximately $30 million in its first year alone. This will be the first time Rhode Island has moved off of the highest tax bracket since 1992.
The jobs plan also builds on the progress we made during my first year in office. Rhode Island already has the lowest corporate tax rate in New England, and last year we eliminated the commercial tax on energy and reduced the corporate minimum tax. Our state has so much to offer; we can’t give businesses reasons to miss out. Let’s work together to get this done, and let businesses thrive in Rhode Island.
Business Trend Survey by Employers Association Shows Distinctions for Northeast Region
LINCOLN, RI – With close to 900 members concentrated in Massachusetts, Rhode Island, and Connecticut, The Employers Association of the Northeast today unveiled the findings of the 2016 National Business Trends Survey conducted by the Employer Association of America.
Results from this comprehensive survey of 1,242 organizations, covering 2,814 employer locations and 45 U.S. states, indicates that the majority of executives surveyed remain optimistic for 2016, are confident they will award pay increases, will provide a heightened emphasis of recruiting, and plan to increase training budgets to focus on developing their existing employees.
“Here in the Northeast, we certainly understand that regulatory compliance is a concern and we are heartened to see more companies looking to increase staff,” stated Meredith Wise, President of the Employers Association of the Northeast. “We are also encouraged by the commitment of businesses in the Northeast to technology, processes, and people.
The top three distinctions for the Northeast from the findings appear to be:
- Regulatory compliance is a bigger concern
In comparison to the national average, companies in the Northeast view the cost of regulatory compliance as a greater challenge, both in the short term and long term. The data shows 32% of the Northeast regional responses expressing concern in the short term vs. 27% of the national responses. On a long-term basis, 42% of Northeast regional responses see regulatory compliance as a serious challenge, whereas nationally the average checks in at 34%.
- There is a greater commitment to invest in technology, processes, and people.
There appears to be a greater consensus on the part of Northeastern businesses to invest in technology equipment, lean, and other process improvements, as well as invest in training. All measures were responded to more favorably and at a higher rate than in comparison to the national norms. Overall 70% of executives surveyed in the Northeast said they would be making investments in people, facilities, and/or equipment in 2016 vs. only 62% nationally.
- More companies are looking to add staff.
While the majority of surveyed executives indicated that they would be increasing staff in 2016, a greater percentage of Northeastern executives – 59% plan on adding staff compared to the national norm of 52%.
For over 100 years, the Employers Association of the Northeast has provided resources for organizations to maximize employee engagement and retention while minimizing risk.
November Unemployment Rate Drops to 5.2 Percent
CRANSTON, RI – The RI Department of Labor and Training announced today that the state’s seasonally adjusted unemployment rate for November 2015 dropped to 5.2 percent, down one-tenth of a percentage point from the October 2015 rate of 5.3 percent. Over the year, the unemployment rate is down one and seven- tenths percentage points from the November 2014 rate. This is the lowest unemployment rate since July 2007.
The U.S. unemployment rate was 5.0 percent in November 2015, unchanged from the previous month and down eight- tenths of a percentage point over the year.
The number of unemployed RI residents—those residents classified as available for and actively seeking employment— was 28,700, down 700 from the October figure of 29,400. This represents the lowest unemployment level since June 2007. Over the year, the number of unemployed dropped by 9,200.
A total of 8,093 individuals collected Unemployment Insurance (UI) benefits in November 2015,* down from 10,127 a year ago. This month, UI claimants accounted for 29.7 percent of the total unemployed.
The number of employed RI residents was 526,900, down 800 from the October figure of 527,700. Over the year, the number of employed RI residents was up 15,100 from November 2014.
The RI labor force totaled 555,600 in November 2015, down 1,500 from October 2015 but up 5,900 from November 2014.
JOBS BASED IN RHODE ISLAND: Estimated nonfarm payroll in Rhode Island totaled 486,700 in November, reflecting a gain of 2,200 jobs from the revised October estimate of 484,500. Over the past three months, Rhode Island averaged a gain of 900 jobs and has added 8,000 jobs over the year. Since the start of the year, jobs are up 7,400. Through November 2015, job growth has averaged 700 per month, compared with an average monthly gain of 500 jobs during the same period in 2014. November’s nonfarm job count marks the highest job count since February 2008.
The number of jobs in the Other Services sector rose by 600 in November, the first job increase within this sector since May. Over the year, Other Services employment is up 1,200.
The Wholesale Trade sector added 400 jobs in November recouping more than half of the 700 jobs lost in October. Jobs in this sector are down 600 jobs from a year ago. The Accommodation & Food Services sector also added 400 jobs in November, marking three consecutive months of job gains totaling 1,900. Over the past year, Accommodation & Food Services employment has grown by 2,300.
In anticipation of holiday deliveries, Transportation & Utilities employment grew by 300 in November and has risen by 300 over the year.
For the first time in 2015, the Health Care & Social Assistance sector added jobs in two consecutive months, adding 200 jobs in October and 200 jobs in November. Despite these gains, employment in the Health Care & Social Assistance sector is down 300 over the year.
Professional & Business Services and Retail Trade also added 200 jobs each in November. The Professional & Business Services added 3,600 jobs since the start of the year, and is up 3,500 jobs since November 2014. Employment in Retail Trade is down 100 from a year ago.
A gain of 100 jobs was reported in the Construction, Educational Services and Information sectors, while employment in Manufacturing, Arts, Entertainment & Recreation and Mining & Logging remained unchanged. Over the year, employment in
Educational Services, Manufacturing, and Arts, Entertainment & Recreation was up by 1,700; 900 and 800 respectively while employment in the Construction and Information sectors reported respective losses of 1,100 and 200.
Employment in Financial Activities and Government fell by 200 each in November. Financial Activities employment is up 200 over the year, while Government employment is down 600 over the year.
MANUFACTURING: In November 2015, production workers in the Manufacturing sector earned $17.81 per hour, up 23 cents from October 2015 but down 41 cents from November 2014. Manufacturing production employees worked an average of 38.2 hours per week in November, down four-tenths of an hour from October and down an hour and four-tenths over the year.
METHODOLOGY: The unemployment figures are based largely on a survey of households in Rhode Island and measure the unemployment status of people who live in the state. Unemployment rates prior to 1976 are not recognized by the U.S. Bureau of Labor Statistics as official since the methodology used at that time is not comparable to today’s methods. The establishment of employment figures is derived from a survey of businesses in Rhode Island and measure the number of jobs in the state. Rhode Island labor market information is available at www.dlt.ri.gov/lmi. Additional information on procedures for producing Current Employment Statistics (CES) estimates is available on the BLS web site at www.bls.gov/sae/cesprocs.htm. BLS will be releasing all states’ November labor force data and job counts on December 18, 2015. DLT is scheduled to release the December 2015 labor force figures and job counts on Thursday, January 21, 2016, at 2:00 p.m.
