< E-NEWSLETTER: Volume 8, Issue 2 (June 2006) EMS Survey Results Special thanks to the business owners who recently participated in the survey distributed by your EMS HR Specialists. The survey was intended to help us better understand the value of the benefit programs currently being utilized and your company’s needs. We have recognized the results and are using your responses to improve future benefit programs and the renewal packages EMS offers. Summary of results: 67% of owners identified that the EMS benefit offerings help them attract and retain top employee talent; 42% offer the EMS plans to remain competitive in their markets. 65% of owners identified that the EMS benefit strategies helped contain their healthcare costs. Additionally, they are interested in doing more, such as participating in the EMS educational programs regarding alternative options, like the Health Savings Accounts (HSAs), for themselves and their employees. 76% of owners value the multiple options and plan choices offered by EMS that have helped them lower insurance costs, like contribution modeling, triple option coverage and HSAs. 66.7% of owners are interested in the EMS initiatives and wellness programs, such as surcharges and health assessments, to help contain healthcare costs and encourage their employees to make healthier lifestyle choices. EMS Advisory Council EMS recently organized the EMS Advisory Council, which will serve as an idea exchange forum for business owners in various industries, whose common desire is continuous improvement. The information and feedback provided by Council members will ensure that EMS is making service decisions that are needed and wanted by you, our clients. Meetings will be held quarterly and each session will focus on a different important aspect of your needs and desires. Membership is by invitation only and is for a 12-month term. The first meeting, which was held on May 17, 2006, addressed employee benefits – trends, best practices and the competitive advantage. Discussion topics scheduled for future Council meetings will focus on Managing Your Human Capital, Employment Strategies and Issues in Small Business. We would like to thank those individuals who joined the EMS Advisory Council. If you are interested, contact Lisa Lickert, Director of HR Services, at lisa.lickert@emshro.com. Identity Theft By Jennifer Howell, Corporate Unemployment Manager “The crime of identity theft undermines the basic trust on which our economy depends.” -- President George W. Bush As defined by the Social Security Administration (SSA), identity theft occurs when a criminal uses another individual’s personal information such as your name, address, Social Security number, bank or credit card account number, or other identifying information without your knowledge to commit theft or fraud. On May 10, 2006, President Bush ordered the creation of a new federal task force to battle identity theft. The task force anticipates coordinating the work of several federal agencies to help victims of identity theft and catch identity thieves. EMS is working to combat identity theft and other fraud-related crimes with the implementation of the following programs: Positive Pay was introduced in the May newsletter as a valuable fraud-prevention tool that protects both your company and EMS from financial deception. Positive Pay not only inhibits the ability to cash checks using only the account number and/or the names of your clients and employees, but also prevents criminals from altering the check’s amount or other personal information, which may have been improperly obtained. In an effort to protect members from identity theft, Anthem1 has removed Social Security numbers from the policyholder identification cards and other policy-related documents that are mailed to members. Anthem uses randomly generated alpha-numeric characters to create a unique ID (UID) versus using the participants Social Security number as an identifier. EMS maintains separate records that are protected and confidential. These records include: medical certifications, re-certifications, medical histories, and other employment and benefit materials that contain Social Security numbers or protected health information. The EMS staff is trained on the Health Insurance Portability and Accountability Act (HIPAA), the employer’s responsibilities to hold the information confidential, as well as the privacy rules associated with employer data. EMS takes reasonable steps to destroy reports, forms and information that include confidential data. EMS has outsourced this function to experts that manage the recycling and shredding of confidential documents. The Federal Trade Commission (FTC) has a wealth of information for consumers who find they are victims of identity theft. Individuals can file a complaint with the FTC at 1-877-FTC-HELP or www.ftc.gov. Other ways to protect yourself and your business can be found at www.consumer.gov/idtheft. USERRA2 Facts, Questions & Answers [From The Society of Human Resource Management (SHRM) - October 2000, Revised June 2002] What job position is an employee returned to after military leave of absence? Except with respect to persons whose disability occurred in or was aggravated by military service, the position into which an employee is reinstated is determined by priority, based on the length of military service. The rules are: Service of one to 90 days: (a) in the job the person would have held had he or she remained continuously employed (possibly a promoted position), as long as the person is qualified for the job or can become qualified after reasonable efforts by the employer or (b) if the person can not become qualified, in the position the person was employed on the date of the commencement of the military service. Service of 91 or more days: (a) same as for service of one to 90 days or a position of like seniority, status and pay, as long as he or she is qualified or (b) if the person cannot become qualified, in the position the person was employed on the date of the commencement of the military service or which nearly approximates that position. NOTE: The reemployment position with the highest priority reflects the “escalator” principle, which requires that a returning service member steps back onto the seniority escalator at the point the person would have occupied if the person had remained continuously employed. USERRA specifies that returning employees must be “promptly reemployed”. What is prompt will depend on individual circumstances. Reinstatement after three years on active duty might require two weeks to allow giving notice to an incumbent employee who might have to vacate the position. 1 Anthem is the health insurance provider of CBS Holdings, LLC and Employee Management Services. 2 Uniformed Services Employment and Reemployment Rights Act (USERRA) WARNING! Local Businesses Raided For Employing Illegal Workforce To ensure compliance, EMS is currently performing a voluntary audit of each employee’s I-9 document to identify strengths and weaknesses in the current processes and manager training needs. This is one part of our continuous improvement efforts in the area of risk management. Your HR Specialist will contact you following the audit to discuss findings and ways to better manage the corrective action. The following articles regarding employment eligibility verification are excerpts from the U.S. Citizenship and Immigration Services Web site. About Form I-9, Employment Eligibility Verification (USCIS, formerly INS) PURPOSE The Immigration Reform and Control Act of 1986 made all U.S. employers responsible for verifying the employment eligibility and identity of all employees hired to work in the United States after November 6, 1986. To implement the law, employers are required to complete Employment Eligibility Verification forms (Form I-9) for all employees, including U.S. citizens. SERVICE PROVIDERS Some business entities contract with professional employer organizations (PEOs) to handle the personnel and benefit-related aspects of the business. This may include completion and retention of Form I-9. Where the business entity and the PEO are co-employers, one Form I-9 needs to be completed between the co-employers for each employee who was simultaneously hired by the co-employers. A business entity and PEO will be deemed a co-employer if, among other things, an employer/employee relationship is said to exist between the business entity and PEO on the one hand, and the individual on the other, even though the employee is only performing one set of services for both co-employers. Therefore, the authority to hire or terminate employment would have to be in the hands of both the business entity and the PEO. Since both entities are employing the individual, however, both entities remain equally responsible for meeting the Form I-9 requirements and equally liable for any failures to meet those requirements. April 20, 2006: The Department of Homeland Security (DHS) unveils comprehensive immigration enforcement strategy for the nation's interior. Goal: Build strong worksite enforcement and compliance programs to deter illegal employment Employers that knowingly and recklessly employ illegal aliens must be punished. U.S. Immigration and Customs Enforcement (ICE) has already initiated a strategic shift in the way it approaches such employers by bringing criminal charges against them and seizing their illegally-derived assets -- rather than relying on the old tactic of administrative fines as sanctions. More employers are also being charged with money laundering violations, which can result in prison sentences of up to 20 years. ICE seeks to enhance its worksite enforcement investigations with proposed additional funding. The Administration’s Fiscal Year 2007 budget request seeks $41.7 million in new funds and 171 additional agents to enhance ICE's worksite enforcement efforts Social Security abuse, which supports illegal immigration and provides a gateway for illegal aliens to obtain jobs, must be eliminated. Hundreds of thousands of workers in this country have registered “000-00-000” as a Social Security number, but millions have supplied Social Security numbers to their employers that do not match their names. DHS is currently seeking a legislative fix in Congress that would provide ICE investigators with access to Social Security data to investigate and combat this rampant fraud ICE and DHS will work with Congress to build employer compliance systems, which will provide clearer guidance to employers, who want to stay within the law Client Spotlight: Spartan Logistics specializes in outsourcing logistics for its customers. From order fulfillment, to repackaging, to dedicated fleet operations, Spartan can provide a full range of value-added storage and freight services. In 1988, Ed Harmon and Jim Ranney recognized the need for more public warehouse space in Ohio to meet the growing industrial base and to take advantage of Ohio's central location. They founded Spartan Warehouse in Columbus with one warehouse on Indianola Avenue. Growth was rapid, with over 25% sustained growth in each of the first five years. The Company added its second Columbus warehouse in 1990 and built the current location on Lockbourne Road in 1991. The Company expanded to Toledo in 1991 and now also has operations in Indiana and South Carolina. Spartan currently has over 100 full-time employees in over 2 million square feet of industrial space with annual revenues of over $10 million. Steve Harmon, son of Ed, is a CPA and a graduate of American University. He has been active in the family business for 10 years as the Chief Financial Officer. Speaking on their relationship with PEOs, Steve explained, “We were motivated to partner with EMS because of their ability to underwrite and manage our workers’ compensation claims. Over time, we have come to value not only their workers’ compensation solution, but also their expertise in human resource and benefits management. Our company is proud of its benefits program and considers this the best way to hire and retain the best employees. Utilizing EMS for our human resources has made it possible to avoid hiring at least one more full-time person.” Spartan has utilized the services of a Professional Employer Organization (PEO) since 1996. “I do not understand why any small business would not use a PEO’s services. We have used other PEOs, but we have been confident with the professional skills of EMS as well as their financial stability. I would highly recommend EMS to any small business.” Steve Harmon Spartan Logistics Meet the Risk Management Team DEBBIE STEINLE, RISK MANAGEMENT ASSISTANT Debbie Steinle, bringing more than 10 years of experience in the insurance field, joined the Risk Management Department of CBS Personnel Services in April 2001 as Assistant to the Vice President of Risk Management. Steinle is responsible for a variety of functions in the Risk Department, which includes preparing Workers’ Compensation quotes for prospective EMS clients, working closely with the EMS HR Department and the Ohio Bureau of Workers’ Compensation (Ohio BWC) to make sure all Ohio EMS clients are in compliance with the Ohio BWC, and assisting current clients by completing their Ohio BWC Payroll Reports semi-annually. CARRIE RYAN, WORKERS’ COMPENSATION MANAGER Carrie Ryan studied Industrial & Labor Relations at Northern Kentucky University. Bringing six years of claims/insurance experience, Ryan joined EMS in May 2003 as a Workers’ Compensation Claims Specialist. In this position, she was responsible for processing workers’ compensation claims for all participating Ohio clients. In August 2005, Ryan was promoted to EMS Workers’ Compensation Manager. In her current position, she is responsible for the administration of all EMS workers’ compensation claims. Ryan is a member of the Ohio Self-Insurer’s Association (OSIA) and the Southwestern Ohio Self-Insurer’s Association (SWOSIA). JENNIFER WELLS-HOWELL, CORPORATE UNEMPLOYMENT MANAGER Jennifer Wells-Howell received an Associate of Applied Business and a Bachelor of Science in 1996 from the University of Cincinnati. In March 1999, she was hired as the Corporate Unemployment Specialist for CBS Personnel Services and was promoted to Corporate Unemployment Manager in 2001. In her current position, she oversees the unemployment program for Venturi Staffing Partners, CBS Personnel Services and Columbia Staffing — which includes Employee Management Services (EMS). From July 2003 to February 2005, Wells-Howell relocated out-of-state. During this time, she operated an Unemployment Consulting firm. Wells-Howell returned to the CBS Family of Companies in February 2005 and resumed her position as the Corporate Unemployment Manager. Wells-Howell is an active member of the National Foundation for Unemployment Compensation and Workers’ Compensation (UWC) and is taking her Professional Human Resource Certification exam in June 2006. WORKERS' COMPENSATION By Dee Baughman, EMS HR Assistant Workplace safety is a necessary part of any program to help control the cost of workers’ compensation insurance. For most employers, there are direct mechanisms that tie the cost of workers’ compensation to their company’s past losses. The most well-known and obvious mechanism is the experience modification factor, but there are others as well. The following are some measures EMS can take to improve your workplace safety and help control workers’ compensation costs. EMS is uniquely self-insured for workers’ compensation, which through underwriting and managing potential risk, a professional safety staff can significantly reduce insurance costs. Our Workers’ Compensation Claims Specialist personally manage the claims. Our internal processes and controls provide the tools necessary for our Specialists to close claims significantly faster than the Bureau of Workers’ Compensation (BWC). When combined, effectively underwriting the risk and efficient claim management enables EMS to control their client’s workers’ compensation costs. Your EMS HR Representative reviews accident and incident trends in your workplace and works with our safety team to provide recommendations to decrease risk. Additionally, our Safety Directors provide assistance with OSHA compliance, general safety and loss prevention. Workplace education is another vital part of managing costs. We recommend discussing safety at every opportunity (e.g. employee meetings, training sessions, day-to-day production meetings). EMS supports the communication efforts of our clients by including basic safety policies within the new employee orientation packet. In addition, new-hire orientations are a great way to communicate general and site-specific safety standards. By identifying the root causes, educating the workforce, following all OSHA safety guidelines, and making safety a priority, you can effectively manage the costs associated with workers’ compensation. 435 Elm Street, Cincinnati, OH 45202 • Phone: 888.651.1536 • Fax: 866.596.1530 • Site Map • Contact Us © 2010 EMS.