Quick Hits - January 31, 2024 - American Society of Employers - ASE Staff

Quick Hits - January 31, 2024

Is AI being used by HR yet? Unlikely.  According to HRE’s annual What’s Keeping HR Up at Night? survey nearly two-thirds of HR teams have yet to embrace artificial intelligence in their operations. More than 60% of respondents shared that HR teams at their organizations aren’t using AI and its counterpart, gen AI, for any functions, including talent sourcing, interviewing, onboarding, learning, and managing employee leave. Despite holes in the HR tech stack, slow adoption of the newest technologies isn’t a focus for most professionals surveyed. Less than 9% consider “managing HR technology, including gen AI and related new rules” one of their top challenges over the past year. Hiring and retaining key talent still reigns as the supreme concern for HR leaders.  Source:  HR Executive 1/5/23

Hiring companies prefer older employees over new graduates: A December 2023 survey from Intelligent.com revealed that 38% of 800 U.S. managers, directors, and executives avoid hiring recent college graduates in favor of older employees. In fact, 46% of them said they are willing to hire an overqualified older employee just so they could avoid working with someone younger.  According to the survey, 60% said they are offering more benefits to attract older workers to avoid working with recent college graduates. Other measures they use include: paying higher salaries to attract older workers (59%) and letting older workers work remotely or in hybrid (48%).  Market research firm McCrindle previously forecasted that this generation of employees are expected to make up 27% of the workforce by 2025. However, these newcomers in the workforce seem like they're not making a very good first impression to employers.  For one in five employers, recent college graduates appear to be unprepared when it comes to job interviews, according to the Intelligent.com survey. More than six in 10 of employers (63%) also called out recent college grads for being entitled. More than half also said these employees get offended too easily (58%) and are overall unprepared for the workforce (58%).  Source: HR Director 1/9/24

Want to attract part-timers, offer them limited medical fixed indemnity insurance: Employers that are looking for an affordable health plan for part-timers or lower-income employees may want to offer limited medical fixed indemnity insurance. As the name suggests, plan participants are offered a fixed benefit for day-to-day expenses that fall into three categories: the "oops," which are cuts, scrapes and bumps that aren't going to touch the deductible; "uh-ohs," which are hospital stays, newborn delivery, etc.; and "oh-noes," which are heart attacks, strokes, and other unexpected serious medical episodes. Indemnity-based products like accident, including critical-illness and hospital indemnity, cover those bases.  Although less generous than a traditional health insurance plan, coverage is available at a fraction of the price on a voluntary basis, partially paid or employer-paid. Plan designs are flexible and customizable, with options for medical, dental, vision and more. Plan participants do not have to worry about paying up front before receiving treatment or having to cut the provider a check, and they can always purchase additional coverage for dependents. Talk to your insurance agent for more information. Source:  EBN 1/3/24

EEOC complains about caps on discrimination claims:  Omaha-based Werner Enterprises, Inc. and Drivers Management, LLC must pay $335,682 to a deaf truck driver after a jury found the employers had violated the Americans with Disabilities Act by refusing to hire or provide a reasonable accommodation to the driver, the U.S. Equal Employment Opportunity Commission announced January 12th. The jury verdict, reached Sept. 1 of last year, originally levied $36 million in punitive damages and awarded $75,000 in compensatory damages for the driver. A judge reduced these amounts to $300,000 in punitive damages and $35,682 to the driver for lost wages, plus pre-judgment interest. Along with other employment discrimination laws, the ADA limits compensatory and punitive damages to $50,000 for employers with 15-100 employees, $100,000 for employers with 101-200 employees, $200,000 for employers with 201-500 employees and $300,000 for employers with more than 500 employees.  Karla Gilbride, general counsel for the EEOC, appeared to bristle at the reduction.  She believes the caps are antiquated and is pushing for the caps to be increased greatly or dropped.  If congress acts on this, expect your business and professional insurance to increase greatly.  Source: HR Dive 1/18/24

New California poster to be aware of: Government Code section 12850 and related regulations require all California employers to display the “California Law Prohibits Workplace Discrimination and Harassment” poster in a conspicuous place where employees gather. The Civil Rights Department published an updated version of this poster that includes information about protections for employees taking bereavement leave or leave for reproductive loss. It also contains information about prohibitions against discrimination based on an applicant’s use of cannabis outside of the workplace. If 10% or more of an employer’s workforce at any facility or establishment speaks a language other than English, the employer must also display this poster in that language (or languages). The updated “California Law Prohibits Workplace Discrimination and Harassment” poster and other postings required by the Civil Rights Department are available on their website, including translated versions.  Learn more about California employment law in a complimentary webinar from our sister association, the California Employers Association, on February 21st. Source: Jackson Lewis 1/16/24

Burnout and financial insecurity for the Hispanic community: The 2023-2024 Aflac WorkForces Report has been tracking the state of the American workplace, capturing trends, attitudes, needs and experiences in health care and benefits administration among both employees and employers. In particular, the report provides essential insights into the Hispanic community.  The survey underscores employees' concerns about mental health, highlighting an alarming trend in burnout among Hispanic workers, with a staggering 66% of Hispanic workers reporting that they cannot go more than a month without a paycheck. In contrast, this figure stands at 51% for non-Hispanic workers. A notable 29% of Hispanic workers turn to family or friends for assistance, as opposed to 24% of non-Hispanic workers, and 26% seek additional employment for supplemental income, a significant increase compared to 18% among non-Hispanic workers. This heightened reliance on support systems is a response to the alarming reality that 54% of Hispanic employees report high levels of anxiety about health care costs surpassing their insurance coverage, emphasizing the urgent need for accessible solutions. Hispanic workers are less likely than their non-Hispanic counterparts to be able to draw from a checking or savings account to cover unexpected medical expenses (43% vs. 53%). Additionally, 57% of Hispanic workers cannot afford $1,000 in out-of-pocket expenses compared to 50% of all employees surveyed.  Source:  Aflac 1/10/23

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