Employees

In Muldrow v. City of St. Louis, the Supreme Court tackled a very important question: under Title VII (the federal civil rights law), when is a job transfer discrimination? The Background Title VII makes it unlawful for an employer “to fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual’s race, color, religion, sex, or national origin.”  42 U.S.C.S. § 2000e-2(a)(1) (emphasis added). Under Title VII, certain job transfers fall within the “otherwise to discriminate” catch-all. But not all job transfers are illegal. Most circuit courts have read in the requirement that a job transfer be “significant.”  This standard yielded some surprising results: An engineering technician is transferred to a new job site— a 14-by-22-foot wind tunnel. The court rules the transfer does not have a “significant detrimental effect.” Boone v. Goldin, 178 F.3d 253 (4th Cir. 1999). A shipping worker is transferred to a night shift position; a court decides the assignment does not “constitute a significant change in employment.” Daniels v. UPS, 701 F.3d 620 (10th Cir. 2012). A school principal is forced into a non-school-based administrative role supervising fewer employees; a court again finds the change in job duties was not “significant.” Cole v. Wake County Board of Education, 834 F. App’x 820 (4th Cir. 2021). The Ruling In Muldrow, Muldrow alleged she was transferred to a lesser position because she is a woman.  Both parties agree that the transfer implicated “terms” and “conditions” of Muldrow’s employment, changing the what, where, and when of her police work. The lower courts ruled the job transfer was not discrimination because the changes were not “significant.” The Supreme Court rejected the lower court’s analysis—asserting that “significant” is not statutorily derived and, therefore, is an improper inquiry. Moreover, “neither [the Statute] nor any other [law] say anything about how much worse [the transfer must be].  There is nothing in the provision to distinguish, as the courts below did, between transfers causing significant disadvantages and transfers causing not-so-significant ones.” What did the Supreme Court offer in the place of “significant?” The Court explained, “[t]o make out a Title VII discrimination claim, a transferee must show some harm respecting an identifiable term or condition of employment.” With the stroke of a keyboard, the past 60 years of common law was vacated, and Muldrow’s case remanded. What This Means Underlying this case is the concept that illegal discrimination must involve not only discrimination, but discrimination that causes harm. Lower courts will now duke it out over what is “some harm.” However, the result is clear: it is no longer safe to assume job transfers rarely cause any “harm.”  If you are considering transferring an employee who may claim discrimination, you should evaluate the “harm” caused by the transfer. Brody and Associates regularly advises management on complying with the latest local, state and federal employment laws.  If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560

Last month, the Boston Regional Office of the National Labor Relations Board (the “NLRB”) ruled that members of the Dartmouth men’s basketball team are employees and as such have the right to unionize. Wasting no time, yesterday, the Dartmouth men’s basketball team voted 13-2 to unionize.  Many educational industry onlookers saw this as the necessary next step in granting employment status to all college athletes – not just the national powerhouses. Although the decision is expected to be appealed, there is no doubt the decision, if upheld, will mark a seismic shift in collegiate athletics.  Why?  Because if Dartmouth men’s basketball players are employees, then arguably all collegiate athletes, both men and women, in all divisions, should also be considered employees eligible for unionization and maybe even compensation. Why Does this Sound Familiar? For those of you who follow college athletics closely or who happen to be closet labor and employment law buffs, you will know the recent Dartmouth NLRB decision is not unprecedented.  In fact, a similar ruling was issued nearly a decade ago when the Northwestern football players were determined (by a different Regional Office of the NLRB) to be employees and able to unionize. However, back then, a unanimous NLRB overturned that decision. One of the reasons the NLRB overturned the lower decision was because the NLRB only has jurisdiction over private employers. Although Northwestern is a private school it competes in the Big Ten athletic conference, which, except for Northwestern, was comprised exclusively of public universities at that time.  The NLRB found it should not exercise jurisdiction over the matter because permitting one school in the conference to collectively bargain (and therefore pay their athletes) and not the others would be detrimental to college athletics because the playing field would no longer be level among different schools.  While some found this argument weak, it carried the day. What’s Next? Fortunately for the Dartmouth men’s basketball team, the above argument will not be an issue this time as Dartmouth competes in a conference composed entirely of private schools, the Ivy League. Likely even more important, the NLRB’s General Counsel (chief prosecutor), Jennifer Abruzzo, has previously come out strongly in favor of student-athletes being treated as employees protected under the National Labor Relations Act. Despite all of this, the process will not be a slam dunk for the basketball team (sorry, we could not help ourselves).  While the next step is a hearing before a pro-union, Biden-appointed NLRB, the following step(s) will be the federal courts and what happens there is uncertain. Both Dartmouth and the NCAA have come out strongly against the decision insisting that their athletes are not employees but rather unpaid amateur students. The NCAA also predicts dire consequences for college athletics if athletes become subject to the NLRA (and other federal and state employment laws). For example, if athletes are “employees” under the wage and hour laws, they are entitled to pay- which is a direct violation of the NCAA’s prohibition against “pay for play.” As a result, we expect an exhaustive legal battle that will take years to play out.  Unfortunately for Dartmouth and the NCAA, these legal challenges will work their way through a court system that recently delivered a major win to college athletes in an antitrust case that went all the way to the Supreme Court.  If that is where this latest case ends up, it will be heard before many of the same justices who unanimously found against the NCAA when it decided the NCAA’s imposition of strict limits on compensation for student-athletes for education-related benefits violated antitrust law. While the appeal is pending,  we expect to see an influx of other petitions filed by other student-athletes to have their teams unionized. Union activity on college campuses is already high; this decision will likely just make it higher. If the student-athletes are ultimately successful, these actions could lead to a complete upheaval of athletic programs on college campuses. Imagine if colleges can give their star athletes massive salaries. The smaller programs will almost never be able to attract top talent which means only the richest few will be competitive.  We may have seen our last Cinderella story. Closing Thoughts The time seems right for the NLRB to act on this issue. With the strong pro-labor tailwinds currently in Washington, D.C., it seems likelier than not that this ruling will be upheld by the NLRB.  What happens on appeal to the federal courts is anyone’s guess and could ultimately be decided by who wins the White House later this year. We will monitor this issue closely and provide our readers with updates as they become available.  Brody and Associates regularly advises its clients on union-related matters and provides union-free training.  If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560.

On February 21, 2024, the National Labor Relations Board (“NLRB”) ruled that Home Depot violated the National Labor Relations Act (“NLRA”) by terminating an employee who refused to remove the hand-drawn letters “BLM” (Black Lives Matter) from their work apron. This employee was one of several employees who concurrently drew BLM on their work aprons. Notably, the employees began drawing BLM on their aprons after complaining about racial discrimination at Home Depot. The NLRA protects employees’ right to partake in “concerted activities” aimed at “mutual aid or protection,” irrespective of union representation. In this case, the Board decided the employee’s refusal to remove BLM markings constituted a “concerted” action. The Board emphasized that the BLM markings were in response to allegations of racial discrimination at Home Depot. Because of this, the BLM markings were viewed as an effort to communicate collective grievances to Home Depot management. Given that racial discrimination affects all employees’ working conditions, the action was deemed “for mutual aid or protection.”   The Whole Foods Counterexample In contrast to this case, in May 2020, Whole Foods informed its employees that wearing BLM attire violated the company’s dress code and was not permitted. In this case, the Board ruled that wearing BLM attire did not constitute legally protected activity. Why? The BLM attire lacked a direct link to efforts aimed at enhancing employees’ working conditions. The judge highlighted, “There is no evidence indicating any employee concerns, complaints, or grievances regarding ‘racial inequality’ or racially-based discrimination at Whole Foods Market before or during the adoption of BLM messaging . . . . The evidence convinces me that the employer simply sought to avoid controversy and conflict within its stores, which it believed would arise from BLM messaging.”   Now what?          Employers aiming to uphold uniform or clothing regulations should exercise careful consideration. When employees unite behind a symbol to voice their workplace grievances, regardless of its broader political implications, that symbol is likely protected under the NLRA. Conversely, if employees wear a symbol entirely unrelated to the workplace that is merely social commentary, employers can prohibit such conduct.   Brody and Associates regularly advises management on all issues involving unions, staying union-free, complying with the newest decision issued by the NLRB, and training management on how to deal with all these challenges.  If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560.  

It’s midnight. Your recycling bin is overflowing with rejected resumes. Your eyes can barely focus on the letters in front of you — and you have this uneasy feeling that you are about to invest in another candidate who just isn’t going to work out. This has been a vicious cycle over the past several years, and you find yourself asking yet again,” Why can’t I find the right salespeople?” You’ve spent an excessive number of hours and are well into six figures in budget dollars hiring, training, firing, and rehiring. You’re losing credibility in the marketplace because your customers are continually being introduced to new reps. With each salesperson that doesn’t work out, you can feel your employees questioning your leadership and the direction the company is headed. And this last candidate… they checked every single box. An ideal candidate with a promising start. Industry experience. Excellent references. High performance everywhere they went. You gave them everything they wanted only to discover they weren’t what they appeared to be. How could you have been so wrong about yet another candidate, a supposed “A-Player” who just couldn’t deliver the level of success they promised in the interview. Instead of burying yourself in another pile of seemingly perfect resumes, it might be time to take a step back. Key Article Takeaways: ·       Pitfalls that prevent A-players from performing in a new sales environment ·       How to lay out a sales roadmap to generate consistent results ·       Key sales leadership focus areas that pay dividends Time to Slow Down to Speed Up Some organizations seem to have it all figured out: low sales turnover; tremendous growth; happy employees doing what they love. Sure, when things go right, everyone is happy. But when issues continuously arise that take your top salespeople away from their outbound calls to chase down problems or they are struggling to know where to focus their effort, there’s likely a more significant issue at hand. By all means, keep searching for the best and brightest salespeople – the ones you know have the talent and desire to excel in your organization. But before you get too far in the process, take a step back and examine your sales readiness. · Are you setting your salespeople up for success right off the bat? · Are there things you know you could do better but haven’t had the time to fix? · Are you doing everything you should be to create a sales culture that allows anyone you hire the opportunity to see success? Structure: Another pitfall that can derail even the best A-Player is when an organization does not have the proper infrastructure to support its sales efforts. This encompasses a wide range of elements from staff structure to the necessary systems to measure and manage performance. For example, creating clear lines of accountability for all roles and functions that interface with the customer will bring clarity to performance expectations. This prevents time-consuming distractions and fosters a customer centric culture. Another area of structure involves the method in which your prospect and customer segments are designated and managed. This provides your customers with a consistent experience and enables your sales resources to be positioned in their areas of strength. These best practices create a solid platform for your salespeople to work from. Then, layering on the appropriate systems to capture sales activity, report on key metrics, manage sales pipeline, etc., allows you and your leadership team the critical visibility needed to keep a pulse on how the business is progressing toward its goals. As you assess your performance in this area, consider the consistency of your weekly one-on-one sales meetings for individual planning and mutual accountability. Given the reliance of the salesperson on their sales manager, powerful outcomes are produced when both sides are willing to be accountable to the other. Another important area to review is the level of value your sales meetings deliver to the team. Lastly, keep track of how often you participate in sales calls — both in-person and video calls, and how often you are creating powerful learning moments for your reps through these interactions. Are you struggling to find the time to apply this level of focus? Do you recognize there are times when you aren’t sure how to confidently lead and develop your salespeople? These common needs in small to mid-sized businesses were the driver behind my decision to transition my extensive VP Sales background to help top executives on a fractional or interim basis. If you’d like to have a preliminary discussion about the sales challenges you are facing, please feel welcome to contact me through any of these methods: 413-626-7040 , kdonovan@salesxceleration.com or book a call through my

On January 9, 2024, the Department of Labor (“DOL”) announced a six-factor test for determining whether a worker is an independent contractor or an employee under the Fair Labor Standards Act (“FLSA”). This new rule takes effect on March 11, 2024. Classifying workers as independent contractors or employees is extremely important—independent contractors do not receive the protections afforded by the FLSA such as overtime pay, minimum wage, and other requirements. The DOL’s six factor test considers: opportunity for profit or loss depending on managerial skill; investments by the worker and the potential employer; degree of permanence of the work relationship; nature and degree of control by the company; extent to which the work performed is an integral part of the potential employer’s business; and skill and initiative. In addition, the DOL utilizes a totality-of-the-circumstances economic reality approach, which allows consideration of other relevant, but not named, factors, which “in some way indicate whether the worker is in business for themself.” Consider the following checklist if your company engages independent contractors. It encompasses the Department of Labor’s (DOL) new six factors along with a series of questions posed by the DOL pertaining to each factor. Each question is accompanied by a parenthetical indicating whether it favors Independent Contractor or Employee status. Every instance where you mark a box designated as “Employee” or refrain from marking a box labeled as Independent Contractor increases the likelihood of your worker being classified as an employee. Keep in mind, this area of law is highly intricate, and the repercussions for misclassification are substantial. If you harbor any uncertainties, it is advisable to seek the guidance of competent legal counsel. The Factor Things to Consider Opportunity for profit      Can the worker negotiate the charge or pay for the work?  (Independent Contractor)      Does the worker accept or decline jobs? (Independent Contractor)  Does the worker choose the order and/or times in which the jobs are performed? (Independent Contractor) Does the worker engage in marketing or other advertising efforts? (Independent Contractor)   Does the worker make decisions to hire others? (Independent Contractor)  Does the worker independently make decisions to purchase materials? (Independent Contractor) Investments by the workers  Does the worker receive unilateral directions to purchase specific equipment? (Employee)   Does the worker have investments in a business that indicate the worker has an entrepreneurial investment their own company? (Independent Contractor) Degree of permanence   Is the worker working for the company for an indefinite period? (Employee)    Is the worker exclusively working for the company? (Employee)    Is the worker project-based or sporadic? (Independent Contractor) Nature and degree of control     Does the worker set their own schedule? (Independent Contractor)      Is the worker’s work supervised closely? (Independent Contractor)  Is the worker permitted to work for others? (Independent Contractor)    Does the worker have the right to discipline their own workers? (Independent Contractor) Does the worker get to set prices or rates for services and the marketing of the services or products provided by the worker? (Independent Contractor) Relation to employer’s business      Is the work performed by the worker “critical, necessary, or central” to the company’s primary business? (Employee) Skill and initiative     Does the worker use specialized skills for the work and “those skills contribute to business-like initiative?” (Independent Contractor)    Did the employer provide training for the worker to attain the requisite skills? (Employee)   Brody and Associates regularly advises management on complying with the latest state and federal employment laws. The subject matter of this post can be very technical. It is also an evolving area of law and very fact specific. Our goal here is to simply alert you to some of the new laws which may impact your business.  It is not intended to serve as legal advice. We encourage you to seek competent legal counsel before implementing any of the new policies discussed above.  If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560.  

The Occupational Safety Health Administration (“OSHA”) and the National Labor Relations Board (“NLRB”) recently joined forces through a new Memorandum of Understanding (“MOU”). Their goal, to further enhance collaboration between the two agencies during investigations and enforcement actions against employers. The move is expected to further blur the lines between the two agencies and the laws they look to enforce. The likely result is increased unfair labor practice charges filed with the NLRB and citations from OSHA. In a joint press release, the agencies hailed the MOU because many worker efforts to improve safety and health in their workplaces are protected under both the Occupational Health and Safety Act (“OSH Act”) and the National Labor Relations Act (“NLRA”, the NLRA and OSH Act, collectively referred to as the “Acts”). The NLRB and OSHA have historically engaged in cooperative efforts and have entered into formal Memoranda of Understandings to engage in interagency coordination since 1975. Last month’s MOU allows the agencies to more broadly share information, conduct cross-training for staff at each agency, partner on investigative efforts within each agency’s authority, and enforce anti-retaliation provisions. Specifically, the MOU expands upon a previously proposed OSHA rule that allows employees to select an outside third party to accompany an OSHA compliance safety and health officer (the “CSHO”) during on-site inspections. Current regulations limit this choice of who can accompany the CSHO to only current employees or a third party with specialized safety knowledge.  However, the newly proposed rule will significantly broaden who is permitted to attend such an investigation by allowing any third-party representative “reasonably necessary” for the inspection. Does this mean any union representative is “reasonably necessary?” Time will tell, but you can be sure that is the union’s interpretation.   What does this mean to you and your Business?   It means, among other things, employees could designate a union official to attend the inspection as their third-party representative even if the employees are not currently unionized, and even if the union representative has no safety experience.   The MOU encourages the exchange of information between the agencies, including the referrals of complaints, as well as investigative files. Further, the MOU guides OSHA to advise employees who miss OSHA deadlines for claims (which are only a matter of days) to file a ULP with the NLRB instead (and use their six-month deadline).  This collaboration even goes as far as fostering cross-training each agency’s employees to enforce the other’s statute.   Additionally, the MOU goes on to have the NLRB and OSHA commit to coordinating investigations and inspections to “facilitate enforcement actions.”   This last piece is a real concern for employers as it poses the risk that the NLRB may be provided with information beyond its usual reach, which could lead to the potential of simultaneous filing of ULP charges and OSHA complaints.   For companies currently dealing with union activity, the MOU heightens the need to stay vigilant regarding workplace safety.  Companies with active or potential union engagement may witness employees leveraging OSHA as an additional pain point for owners.   We encourage all employers to familiarize themselves with their rights under both Acts and seek competent employment law counsel to best navigate and defend a coordinated investigation should one arise.   Brody and Associates regularly advises its clients on union-related matters and provides union-free training.  If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560.      

Happy New Year – and may 2023 be a prosperous and fulfilling year for you and yours! With that aspiration in mind, I’d like to pose an important question about goals, a big question we make a habit of sharing with our clients at this time of year. Every December, it seems, we set goals for ourselves (sometimes also known as “resolutions”) in a well-meaning effort to create sustainable positive change in our lives. And every January or February (or maybe March in a good year), most of us look back on those goals with a mixture of stress, denial, and regret because we know we didn’t follow through on them in the way we’d hoped we would. So the big question is, how do we break that cycle and set goals that stick? Here are seven powerful goal-setting tips we share with our clients that turn “resolutions” into results.   Tie the goal to something truly important to you as a person. (Spoiler alert: It isn’t money.) Each of us has at least one unique life goal that means a great deal to us on a deeply personal level. I don’t know what that goal is for you: it might be a trip around the world, a significant charitable contribution that helps you honor the memory and legacy of a loved one, a fabulous new present you and your significant other can enjoy together all year long – something you know will bring you closer together. The possibilities are endless. I do know, though, that we all work harder for our personal goals than we work for somebody else’s. This year, let’s make a change. Instead of setting a goal based on depositing a certain amount of money, instead of setting a goal based on attaining a business goal that someone else has set for you, why not take the time to identify a goal that motivates you personally in a profound way? Then you can find a way to connect that powerful personal goal to a financial or business goal. For instance: Don’t just make the goal to earn your bonus; make the goal to earn the bonus so you can take that trip around the world that’s on your bucket list. Take a well-rounded approach. There’s nothing wrong with financial goals, of course. All the same, it’s important to set goals in several different areas of your life. Think of multiple goals that will motivate you to change the status quo for the better in terms of sales, health, spirituality, work, creativity, friends, mindset, and family. And once you have a sales goal that motivates you, you will also want to consider setting sub-goals that support your larger sales goal (such as daily behavioral and activity goals, account management goals, upselling goals, and cross-selling goals). Do this for each of the categories. Take some time to create a list of goals that goes both wide and deep! Once you’ve set a specific goal, break it into actionable, measurable chunks. Breaking the goal into smaller numbers allows you to identify the activities necessary to achieve it and track your progress toward attaining it. For example: To make my bonus, I want to secure twelve new clients, each with an average sales of $X. That means I need three such clients each quarter, which, based on my current numbers, I need to talk to Y number of new decision-makers each week and deliver Z number of presentations each month. Write your goals down and speak about them often. This simple step dramatically improves the statistical likelihood that you will achieve the goal. Build accountability. Once you have identified goals that genuinely matter to you, it’s a good idea to share your list with others you trust and discuss it with them. You may also want to consider creating an accountability-partner relationship with someone willing to share their goals with you, hold you accountable, and be held accountable in turn. Adjust as necessary. If you reach a point where you’ve exhausted your motivation and willingness to attempt to reach the goal, or if you find the goal you set was unrealistic, revise your goal. In the present tense, what you’re after is a goal that makes you feel that you are working toward something important. Find a goal that inspires you and that yields measurable signs of progress over time. Reward yourself. Sheryl Crow once sang, “Making miracles is hard work – most people give up before they happen.” Those words are essential reminders that much effort goes into achieving a meaningful goal. When you hit one, be sure to do something to celebrate! Follow these simple guidelines, and your experience with ineffective New Year’s “resolutions” that start fading on January 1 will be completely transformed.

As we’ve discussed in previous posts, quiet quitting is a phenomenon that’s here to stay. This workplace trend has inspired millions of employees to “act their wage,” which is to say, setting boundaries and choosing not to go above and beyond their basic job description. Evidence shows that quiet quitting is common, and that it’s resulted in a significant erosion of engagement, productivity, and morale. But while managers and HR leaders may not have the power to end this phenomenon, there is much they can do to address it proactively. How to Address Quiet Quitting 1) Talk to your people. There are any number of reasons why employees might disengage, but often it boils down to the feeling that leaders don’t really care about them or don’t do enough to support them. Start by simply asking employees how work is going, and how the company can better support them. One-on-ones, town halls, and employee surveys may all be appropriate forums. Help employees to see that you care. As employees present problems or frustrations, it’s important that you show them that their concerns aren’t falling on deaf ears. You may not be able to solve every problem, but you can often provide greater resources. You can also invite employees to collaborate with you, working together to arrive at creative solutions. Again, the point isn’t so much to fix every problem. The point is to help employees feel seen, heard, cared for, and engaged in decision-making. 2) Recognize employees. Employees can feel disengaged when they feel like their contributions to the team aren’t seen or aren’t celebrated. We’d recommend creating a culture of celebration, where you take time on a regular basis to have team leaders and managers acknowledge the good work their personnel are doing. And when the whole team scores a big win (completing a major project, bringing in a huge new client, exceeding sales benchmarks), that’s definitely an occasion for a team lunch or some treats around the office. 3) Provide mentorship opportunities. Still another reason why employees succumb to “quiet quitting” is the feeling that their career trajectory is stalled, or that the organization doesn’t support their development or advancement. Creating an environment where each individual feels valued is paramount to a business and the level of success it achieves. Leadership who understands this and executes a strategy that pulls the best of each generation together, fitting it into the purpose of the organization, will become an employer of choice in the marketplace. A simple way to address this is by creating a mentorship program in your company that allows for a younger employee to learn from the more senior employee and through reverse mentoring relationships that allows for the younger employee to mentor a more experienced employee. The result often leads to a deeper personal connection and a more meaningful professional relationship between the employees. Take Action Against Quiet Quitting These steps may not put an end to the quiet quitting phenomenon, but they can go a long way toward keeping a majority of your team members fully engaged. Questions? We’d love to talk further about this. Reach out to WhiteWater Consulting today and pickup a copy of our book “Unprecedented” to learn more.  

By Robert J. Brody and Luis A. Torres   California passed two laws that require diversity for certain corporate boards.  The first required diversity based on gender and the second for “underrepresented communities.”  The  effective date and required amount of representation varies based on board size.  In two separate actions, each law was found unconstitutional. The underlying challenge is these laws violate the equal protection laws since each law is declaring different treatment of equal people based on sex or other protected characteristics such as national origin or ancestry.  For these laws to pass muster, they must be found to correct unlawful conduct, not merely a societal history of unfair under representation. This issue is far from over.  California’s Secretary of State has already announced these cases will be appealed.  Regardless of what happens in California, other states are likely to follow suit.  Of course, if the laws are ultimately upheld, the number of states to follow suit will likely increase dramatically.  Time will tell. Brody and Associates regularly advises management on complying with the latest local, state and federal employment laws.  If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560

May 20, 2022 By Robert G. Brody and Luis A. Torres As of July 14, 2022, New York will be launching a statewide toll-free confidential hotline that will provide counsel and assistance to individuals with concerns about workplace sexual harassment. Employers will be required to include the hotline number in any sexual harassment postings and policies. Employers should update any of their policies and materials to reference the Hotline prior to July 14. In addition to the new hotline law, New York State expanded the definition of retaliation for purposes of discriminatory practices by employers. The new definition includes employers disclosing employee files because the employee has (1) brought a claim of unlawful discrimination, including sexual harassment; (2) opposed a practice forbidden by the discrimination laws; or (3) filed a complaint, testified, or assisted in a discrimination proceeding. This law gives employees a private right of action if employers release personnel files to discredit the employee or for any other retaliatory purpose. Employers should update their policies to reflect these changes. Brody and Associates regularly advises businesses on handbooks and complying with the latest local, state and federal employment laws.  If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560

In the Great Recession, I went from being an employee in banking to being an employer and launching my own business. Upheaval has become the new normal as the pandemic led many to reevaluate their jobs and more. In the Great Resignation, 4 million workers have quit their jobs so far. This could signal a change in thinking, which might lead many to transition to being their own boss. Currently, I’m working with a 4-person management team who have been together 15-20 years; they know, like, and trust each other. The owners, Baby Boomers, are ready to retire and are looking for an exit. This 4-person team is looking to make the shift from being employees to employers.  Not every employee wants to become an employer. So, what motivates someone to become a business owner?

Join us on Wednesday, February 9 from 10-10:45am for our next free, virtual edition of our Scaling Skills Speaker Series when Jennifer Montellanico, a seasoned Business Performance Advisor with Insperity, will be talking with us about current strategies to attract and retain top talent. Please feel free to invite others, and we look forward to seeing you soon! Here is the Zoom link for the presentation:

  Prove the Rolling Stones Wrong in 2022 By Essie Escobedo, Chief Executive Angel, Office Angels   COVID-19 was the first pandemic that most of us had ever lived through. The experience taught us a lot – how to work from home, how to homeschool our children, and how to live in isolation – away from those we love. The pandemic also showed us that while you can’t always get what you want, you just might get what you need. More than a few of us took a look at the way we were living in the past two years and decided it was time for a change. A new mindset emerged – one focused on the freedom and flexibility to control your own destiny and shape your own life. The Great Resignation reached from the mailroom to the board room. Today, flexibility is the fastest-growing job requirement in the United States, and more than half of all Americans want to find themselves self-employed the next time they change jobs. These new business owners and budding entrepreneurs will need a great deal of help – now and over time – to make their dreams come true. At Office Angels, we’ve been supporting the dreams of America’s self-employed business owners and budding entrepreneurs for more than two decades – just by listening. We heard established business owners and start-up entrepreneurs say they needed administrative, marketing and financial assistance when they needed it but not on a full-time basis. We also heard the “corporate dropouts” who said they wanted to replace the demands of more-than-40-hours-a-week with a balanced work life that included time to care for young children and elderly parents. When we distilled what we heard, we saw that both sides wanted the freedom that comes with architecting how they work, who they work with and what they work on. With autonomy and control over your work, business owners, entrepreneurs and expert assistants all get what they want. All of us at Office Angels were working “as needed” long before it was fashionable. It’s gratifying to see more Americans discovering for themselves what we’ve known all along – flexibility and control over one’s work life leads to higher satisfaction and fulfillment. Apologies to the Rolling Stones for calling them out but, in this case, they are just wrong – flexibility can get you want you want and what you need. Which of your “must do” tasks would you like to offload? Call me at 770-442-9246 and I’ll scour the heavens to find just the right Angel for you. For more information, visit www.officeangels.us  

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As an advisor, your role is to help clients prepare to exit their business, yet many people resist thinking about the future because it involves so many unknowns, decisions, and choices.  And emotions typically complicate matters further, sometimes derailing the process altogether.  Here are some questions that can help you establish rapport with your clients, learn more about their concerns, and move the conversation forward. How are you feeling about your work/profession/business these days? Which aspects of work are you still enjoying, and which are you ready to leave behind? Do you envision retiring from work at some point, or are you contemplating an encore career? What part of planning for your future feels most challenging? How do you imagine your life in retirement will be different from how it is now? What process are you using to figure out what you’ll do next after you retire? What would you like to see happen with your business long term? What options have you considered for the transfer of your business? What steps have you taken to make your business more attractive to a potential buyer? What are your concerns about transitioning your firm to new ownership? What would be your ideal scenario for transitioning out of your company? What topic(s) have we touched on today that we should put on our agenda to revisit? So, what happens after you pose a few of these questions and your clients open up about emotional matters?  Remember, the most helpful thing you can do is to listen attentively.  You’ve created a valuable opportunity for them to talk about things they may not share with other advisors.   Here are some tips for managing the conversation when clients raise emotionally loaded topics: Don’t try to “fix things” by immediately offering suggestions. Doing so sends the message that you’re uncomfortable hearing their concern.  You can offer suggestions but do so later. Don’t say anything that conveys the message that their feeling or concern is unwarranted. “There’s really no need to feel that way” or “I’m sure it will be just fine” may sound reassuring to you but could be experienced as dismissive by your client. Don’t immediately offer a logical counterpoint to your client’s emotion. Remember, feelings don’t have to make sense; they’re “as is”.  Put another way, if feelings made sense, they would be thoughts. People report concerns and characterize their feelings differently from one another, so it’s in your best interest to seek amplification and clarification by inquiring as follows . . . “I want to make sure that I understand exactly what you mean by ___.  Can you tell me more?” “People sometimes mean slightly different things when they talk about ___.  What does ___ mean for you?” “Before I suggest anything, I’d like to learn more about it from your perspective.” It’s possible that during early conversations your client may hint at mixed feelings about exiting their business.  That’s perfectly normal, but you need to bring it out into the open.  You want to foster an atmosphere such that your client keeps you apprised about where they’re at.  If they keep their ambivalence to themselves, it has greater potential to blindside you and complicate the sale.  You can say: “In my experience, it’s normal to have some mixed emotions about selling.  Those thoughts may not always be top of mind, but when they do pop up let’s be sure to talk about them.  Believe it or not, they can help inform our process and alert us to aspects of the sale that are important to you.” You may also find that your client is overly risk averse.  If so, consider saying the following: “Our work together won’t be comprehensive if we only plan for what could go wrong.  That’s just half the equation.  It’s fine to be conservative and err on the side of caution, but to be truly realistic we should also consider a range of possibilities both good and bad.”   Author’s Note:  The concepts in this article are derived from Robert Leahy’s book, Overcoming Resistance in Cognitive Therapy.  New York:  Guilford

For five decades, the southern United States has been an attractive location for automakers to open plants thanks to generous tax breaks and cheaper, non-union labor. However, after decades of failing to unionize automakers in the South, the United Auto Workers dealt a serious blow to that model by winning a landslide union victory at Volkswagen. In an effort to fight back, three southern states have gotten creative: they passed laws barring companies from receiving state grants, loans and tax incentives if the company voluntarily recognizes a union or voluntarily provides unions with employee information. The laws also allow the government to claw back incentive payments after they were made. While these laws are very similar, each law has unique nuances. If you are in an impacted state, you should seek local counsel. In 2023, Tennessee was the first state to pass such a law. This year, Georgia and Alabama followed suit. So why this push? In 2023, the American Legislative Exchange Council (“ALEC”), a nonprofit organization of conservative state legislators and private sector representatives who draft and share model legislation for distribution among state governments, adopted Tennessee’s law as model legislation. In fact, the primary sponsor of Tennessee’s bill was recognized as an ALEC Policy Champion in March 2023. ALEC’s push comes as voluntary recognition of unions gains popularity as an alternative to fighting unions. We recently saw this with the high-profile Ben & Jerry’s voluntary recognition. Will this Southern strategy work to push back against growing union successes? Time will tell. Brody and Associates regularly advises its clients on all labor management issues, including union-related matters, and provides union-free training.  If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560.  

I once had the thrill of interviewing Jerry West on management. He was “The Logo” for the NBA, although back then they didn’t advertise him as such. Only the Laker followers knew for sure. In 1989 the “Showtime” Lakers were coming off back-to-back championships.  Pat Riley was a year away from his first of three Coach of the Year awards. 

Can you Offer Too Many SKUs to Your Customers? The short answer is YES! A SKU, or Stock Keeping Unit, defines each different product version that you sell and keep inventory of.  There may be different SKUs of the same overall item based on size, color, capacity (think computer or cellphone memory), features, and many other parameters.  For build to forecast businesses, that number of variations can quickly explode and become difficult to manage. Your customers are busy and want ordering simplified. Of course, they may need (or want) more than one variation of a product. That is reasonable and a common aspect of business – one size does not fit all! But there is a point where too offering too many SKUs is not value added either for your customer or your business.  In his April 30, 2013 article “Successful Retailers Learn That Fewer Choices Trigger More Sales” in Forbes, Carmine Gallo discusses his experience and a study about “choice overload” by other authors. He writes about a retailer that “has discovered that giving a customer more than three choices at one time actually overwhelms customers and makes them frustrated…when the customer is faced with too many choices at once, it leaves the customer confused and less likely to buy from any of the choices!” Choice overload is well-documented in consumer studies but can apply in B2B as well. While customer satisfaction is important, another key concern is the often-hidden costs associated with a business offering and managing a large number of SKUs for a given product type. These costs include holding inventory, S&OP (Sales and Operations Planning) team time, small production runs, and scrapping inventory. Holding inventory takes up space, which may come with a cost or utilize racks that could be used for other products. Scheduled inventory counts take up employee time and may result in blackout periods when the warehouse is not shipping product.  The more SKUs there are, including extra SKUS, the greater the potential impact. The Sales team’s forecasting and the Operations team’s purchasing reviews that are part of the S&OP process can occupy more of their valuable time if they need to consider these times. If small orders or forecasts require a new production run, this could be costly and create excess inventory. Whether from this new production or past builds, eventually it will make sense to write off and scrap old inventory, another cost impact to the company. How do you know which SKUs to focus on if you wish to look at reducing your total number of SKUs? Start by examining SKUs that have: Low historic sales over a period of time Small variations between SKUs that customers do not value Older technology or model when newer option SKUs are available This requires a true partnership between Sales and Operations. It starts with educating both teams on the costs involved – neither group may be aware of the money and time impact to the company. Periodic (such as quarterly) reviews of SKUs that meet the above descriptions should become a fixed part of the calendar. A review of the data and other available for sale options should result in the identification of SKUs which may not be needed. At that point, it is helpful to have a customer friendly EOL (End of Life) Notice process by which you inform customers of last time buy requirements for this SKU and alternates available. It is usually best to provide some time for the last time buy in the interest of customer satisfaction, although that may not always be necessary. At a company that designed and sold electronics, a robust SKU rationalization process was implemented to help address these issues. A representative from the Operations team analyzed SKUs that met a version of the above criteria and suggested candidates for the EOL process. Next, a member of the Sales team reviewed them and, where appropriate, issued product change or EOL notices to customers, providing them time for last time buy orders when needed. These steps helped reduce the work involved in maintaining these SKUs while not leading to any customer complaints. A final note – sometimes it makes sense to continue offering low selling SKUs – to support customers buying other items (hopefully in larger quantities). It may be worthwhile to encourage them to keep coming back to you for all of their product needs and this may be a way to accomplish that. But it helps to understand that this is truly the case and not assume that this customer would not be equally happy with another, more popular, SKU.   Steven Lustig is founder and CEO of Lustig Global Consulting and an experienced Supply Chain Executive.  He is a recognized thought leader in supply chain and risk mitigation, and serves on the Boards of Directors for Loh Medical and Atlanta Technology Angels.

When it comes to careers, business owners are a minority of the population. In conversations this week, I mentioned the statistics several times, and each owner I was discussing it with was surprised that they had so few peers. According to the Small Business Administration (SBA), there are over 33,000,000 businesses in the US. Let’s discount those with zero employees. Many are shell companies or real estate holding entities. Also, those with fewer than 5 employees, true “Mom and Pop” businesses, are hard to distinguish from a job. The North American Industry Classification System (NAICS) Association, lists businesses with 5 to 99 employees at about 3,300,000, and 123,000 have 100 to 500 employees (the SBA’s largest “small business” classification.) Overall, that means about 1% of the country are private employers. Owners are a small minority, a very small minority, of the population. Even if we only count working adults (161,000,000) business owners represent only a little more than 2% of that population. So What? Where am I going with this, and how does it relate to our recent discussions of purpose in business exit planning? It’s an important issue to consider when discussing an owner’s identity after transition. Whether or not individual owners know the statistics of their “rare species” status in society, they instinctively understand that they are different. They are identified with their owner status in every aspect of their business and personal life. At a social event, when asked “What do you do?” they will often respond “I own a business.” It’s an immediate differentiator from describing a job. “I am a carpenter.” or “I work in systems engineering,” describes a function. “I am a business owner” describes a life role. When asked for further information, the owner frequently replies in the Imperial first person plural. “We build multi-family housing,” is never mistaken for a personal role in the company. No one takes that answer to mean that the speaker swings a hammer all day. Owners are a Minority We process much of our information subconsciously. If a man enters a business gathering, for example, and the others in the room are 75% female, he will know instinctively, without consciously counting, that this business meeting or organization is different from others he attends. Similarly, business owners accept their minority status without thinking about it. They expect that the vast majority of the people they meet socially, who attend their church, or who have kids that play sports with theirs, work for someone else. There are places where owners congregate, but otherwise, they don’t expect to meet many other owners in the normal course of daily activity. This can be an issue after they exit the business. You see, telling people “I’m retired” has no distinction. Roughly 98% of the other people who say that never built an organization. They didn’t take the same risks. Others didn’t deal with the same broad variety of issues and challenges. Most didn’t have to personally live with the impact of every daily decision they made, or watch others suffer the consequences of their bad calls. That is why so many former owners suffer from a lack of identity after they leave. Subconsciously, they expect to stand out from the other 98%. “I’m retired” carries no such distinction.       This article was originally published by John F. Dini, CBEC, CExP, CEPA on

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