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biz brief 1

Associated Industries announces 2010-2011 recipients of A.I. Bright Promise Program scholarships, and new award category

In late May, the Associated Industries Bright Promise Program Selection Committee confirmed this year’s scholarship recipients. To be a recipient, students must attend one of the Spokane Community Colleges or be a transfer student from one of the Community Colleges to Eastern Washington University and meet several other criteria. Each scholarship covers approximately one half the tuition cost for the 2010 - 2011 school year.

2010-2011 A.I. Bright Promise Program Recipients

Community Colleges of Spokane: Robert Browning Kenneth DeGroot Terra Donley Cody Harder Trang Le Tiffany Letnes Brandon Martin Thong Nguyen Melissa O’Neal	Sandra Powell Kathleen Rauch John Smith Joseph St. Laurent Jennifer Widell Jaime Williams Kristin Youmans	Eastern Washington University: Laura Baump Jamal Bodey-Burks Brenda Devine Autumn Kisner Monica Lazarte Sandra Lund Guadalupe Sadler Elizabeth Severin

Additional scholarship award announced

The A.I. Bright Promise Program scholarship committee also extended three additional awards this to the EWU School of Business “Dean’s Leadership Scholarship” program designed to recognize outstanding students within the department, which had faced very significant cutbacks due to budgetary constraints.

Associated Industries “Dean’s Leadership” Scholarship Recipients

Ariel Dykstra
Brandon Derning-Hieby
Heather Brandt

“I am exceptionally proud of the work A.I. and the Selection Committee have done,” said DeWalt regarding the new award. “But as I have said before, the need is still strong. I would encourage others – whether a business or an individual – to consider what they might do to help ensure that our region continues to have the talented and skilled workers it needs for years to come.”

Mayor Mary Verner applauds the Associated Industries Bright Promise Program

"It is my pleasure to personally congratulate you on receiving the Association of Washington Business 2010 Community Service Award.

Your commitment to provide tuition scholarships to students attending Eastern Washington University of The Community Colleges of Spokane is commendable. Your generosity will help develop the skill workforce we need to support Spokane's businesses."

– Mary Verner
Mayor of Spokane, WA

biz brief 2

Associated Industries Open House fetes two long-term employees
as they retire
Two long-time Associated Industries employees retire this summer. They are: Linda Helwege of Associated Employers Trust benefits division, and Judy McMillian of the Retrospective Rating and safety division.

Linda and Judy have been a part of Associated Industries for a combined total of more than 30 years. Associated Industries is working hard to make this transition as seamless as possible for all its members.

On Thursday, July 1st Associated Industries had an Open House in their honor. Many of Associated Industries members and the duo's friends in the community stopped by Associated Industries to wish them well.

biz brief 3

A.I. Membership Appreciation BBQ and Cruise will soon be under weigh

Associated Industries annual Membership Appreciation BBQ and Cruise is almost upon us, and it is an event members return for year after year.

Be sure to mark your calendar for Friday, August 6^th from 5-9pm in Coeur d’Alene.

Weather forcasts are predicting sunshine and fair winds.

 

 

biz brief 4

August only: Refer a new member to Associated Industries, and receive a FREE on-site HR audit

Throughout the month of August if your business refers a new member who signs up for Associated Industries Services, your business will receive a free HR audit.

During the on-site HR audit Val Fields, our HR Manager will meet with you at your location and review all aspects of your HR paperwork and processes and follow up with a report of recommended changes, procedures and updates. This is a $600 value.

For more information:
Contact Val Fields, HR Manager
at 509.342.2182 or 800.720.4291 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it

biz brief 5

Seeking input regarding an Executive Compensation survey for 2010

 

Every three to four years, Associated Industries conducts a detailed survey of executive compensation. It includes CEO, CFO and all other top executives, with salary, bonus, incentive, and other compensation elements correlated with the annual sales volume of your business. We have received requests to conduct the research again in 2010. (Our last A.I. ExecuComp Survey was completed in 2008.)

To determine interest, we need your input. Would a compensation report be of value to you, and would you be willing to participate? Prices vary, see below.

A.I. Member:	Survey Participants: $350	Non-Participants: $500
Non-Member:	Survey Participants: $500	Non-Participants: $950

For more information:
Contact Bill Sweigert, Vice President Training & Development
at 509.777.2658 or 800.720.4291 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it

biz brief 6

CNBC ranks Washington State among the top 15 for business

Utilizing 40 measures of competitiveness in business, with input from business groups including the National Association of Manufacturers, a recent CNBC Special Report ranked Washington State among the top 15 states for business. Categories in the ranking included cost of doing business, workforce, quality of life, education, business friendliness, and five other attributes. Idaho narrowly missed the top 25, coming in 26^th while Hawaii, Rhode Island and Alaska filled the last three slots.

E-Verify information is updated

The United States Citizenship and Immigration Service (USCIS) has unveiled its newly redesigned website, manuals, and tutorials meant to simplify the electronic employment verification process. Use of this system is mandatory for certain federal contractors and the majority of employers in Arizona and Mississippi. Other employers may choose to use the system voluntarily. Existing passwords and user identification remain the same.

Employers may review these changes or log in to take the new tutorial at http://bit.ly/8k8MZ. Employers with questions about whether they are covered by these requirements or whether they should participate in this program voluntarily may contact our In-house Counsel.

New “green cards” issued

The USCIS has also redesigned the Permanent Resident Card, commonly called a “green card.” This type of card is proof of permanent authorization to live and work in the US. The redesigned cards are actually green and carry several enhanced security features designed to prevent fraud or alteration. The agency will replace current Permanent Resident Cards now in use with the new green cards as the old cards are renewed or replaced.

Presented below is a hypothetical fact pattern based on a compilation of questions related to discipline and termination issues received by Associated Industries’ In-house Counsel.   The information below is not a substitution for competent legal advice, nor does it create an attorney-client relationship between Associated Industries’ In-house Counsel and any readers or recipients of this information.  Additionally, this material reflects the current state of the law at the time of development.  Where specific legal issues arise, recipients or readers should seek private legal counsel.

THE DILEMMA

Jane operates a successful chain of drive-through coffee stands. Lately, she’s run into some issues with three of her baristas working at different locations.

Sarah has worked for Jane for about one year. She is not the most up-beat employee, and has a reputation of being rude to customers when the stand gets busy during morning rush hour, making errors in placing orders and making drinks, and generally not getting along well with other staff. Although Jane’s employee handbook doesn’t address these issues, it seems to Jane that accuracy, courtesy and respect for customers and other employees are simply matters of common sense. After repeated warnings about her performance without any measurable improvement, Jane terminates Sarah’s employment.

John has been another problem barista. Although he is popular with the customers and other staff and makes the best latte in town, John is consistently late to work, leaving the coffee stand short-handed during the busiest hours of the day. Jane has reviewed the employee policy regarding attendance with John on several occasions, but can’t tolerate his tardiness any longer. Although she is not happy about doing so, she terminates John’s employment.

Finding herself short two employees, Jane has just discovered that Craig, the manager of her third coffee stand, has been stealing paper cups, lids, straws, and other supplies over a three month period and falsifying his inventory reports to cover up his theft. Jane suspects he is planning to launch a competing coffee stand using her supplies, although she has no proof of this. She terminates Craig immediately upon discovery of his scam.

Each of these former employees has now applied for unemployment benefits with the Washington Employment Security Department. The department is considering each application, and Jane has received a request from the department asking her to provide information regarding the circumstances of each termination.

Will any or all of these employees be disqualified from receiving benefits?

The Answer:

The disqualification provisions of Employment Security Act are based upon fault principles and are predicated on an individual worker’s action, in a sense his or her blameworthiness. Where the claimant is deemed to have voluntarily quit his or her job without good reason or to have been terminated from employment due to misconduct, no benefits will be provided. As the discussion below makes clear, the definition of misconduct is often elusive.

A. Misconduct: An employee who is discharged for misconduct or gross misconduct is denied benefits. The fact that the employee’s acts might have been sufficient grounds to justify his or her discharge from employment does not mean that there were sufficient grounds to constitute statutory misconduct and thereby disqualify the employee from unemployment benefits.

The employee’s behavior must be so egregious that the unemployment is, in a sense, voluntary. This is to prevent employees from being denied benefits based on errors in judgment or incompetence. Under the Washington statute, RCW § 50.04.294, misconduct includes, but is not limited to:

• Willful or wanton disregard of the rights, title, and interests of the employer or a fellow employee;
• Deliberate violations or disregard of standards of behavior which the employer has the right to expect of an employee; or
• Carelessness or negligence that causes or is likely to cause serious bodily harm to the employer or a fellow employee or that is of such degree or recurrence to show an intentional or substantial disregard of the employer’s interests.

Wanton or willful disregard is demonstrated through acts such as:

• Insubordination showing a deliberate, willful or purposeful refusal to follow the reasonable directions or instructions of the employer;
• Repeated inexcusable tardiness following warnings by the employer;
• Dishonesty related to employment, including but not limited to falsification of company records, theft, deliberate deception, or lying;
• Repeated and inexcusable absences, including absences for which the employee was able to give advance notice and failed to do so;
• Deliberate acts that are illegal, provoke violence or violation of laws, or violate the collective bargaining agreement. Does not include participation in lawful union activity;
• Violation of a rule if it is reasonable and if the claimant knew or should have known of the existence of the rule; or
• Violations of the law by the claimant while acting within the scope of employment that substantially affect the claimant’s job performance or that substantially harm the employer’s ability to do business.

Misconduct is not:

• Inefficiency, unsatisfactory conduct, or failure to perform well as the result of inability or incapacity;
• Inadvertence or ordinary negligence in isolated instances; or
• Good faith errors in judgment or discretion.

An employee found to have committed misconduct is subsequently denied benefits for ten weeks following termination and until the claimant has earned ten times the suspended weekly benefit amount in covered employment. RCW § 50.04.294.

Employees discharged for commission of a felony or gross misconduct lose wage credits for that job or six hundred and eighty (680) hours, whichever is greater.  RCW § 50.20.066.

The statute makes clear the fact that misconduct must be work-related. RCW §50.20.066.

In determining whether off-work actions are work related, our courts will determine whether there is a connection between the misconduct and the employment. The Washington State Supreme Court established the following test:

• The act has some connection with the employee’s work;
• Which resulted in harm to the employer;
• Violated behavior contracted for between the employer and the employee; and
• Was done with intent or knowledge the employer’s interests would suffer.

Nelson v. Employment Security Department, 98 Wn.2d 370 (1982). The “behavior contracted for” need not be a written agreement or formal contract.  It may take the form of reasonable rules or policies of the employer of which the employee is aware and expected to follow.

B. Gross Misconduct: Employees who commit gross misconduct are not eligible for benefits. Gross misconduct refers to the commission of a criminal act in connection with an individual’s work for which the individual has been convicted in a criminal court, or has admitted committing, or conduct connected with the individual’s work that demonstrates a flagrant and wanton disregard of and for the rights, title, or interest of the employer or a fellow employee. RCW § 50.04.294(4).

C. Misrepresentation: A claimant who knowingly makes a false statement or representation of a material fact to the Department of Employment Security in order to obtain UI benefits is disqualified from receipt of benefits for that week and for an additional twenty-six weeks beginning the Sunday of the week the determination is mailed or delivered. RCW § 50.20.070.

In this case, Sarah will likely receive benefits, John may receive benefits, and Craig will likely be denied benefits.

While Sarah may be incompetent at customer service and have poor interpersonal skills, her work performance does not reach the level of willful or wanton misconduct that would disqualify her from receiving unemployment benefits. She has not violated any specific work rules, engaged in deliberate violations of work standards, or committed gross misconduct or misrepresentation. She simply has a bad attitude and lacks the requisite skills to work for Jane. Although Jane was well within her right to terminate Sarah’s employment, her reasons for doing so do not rise to the level of statutory misconduct. Sarah will likely receive benefits.

John, on the other hand, may or may not receive benefits. John was terminated for repeated failure to arrive at work on time, a violation of Jane’s written attendance policy. Despite Jane’s repeated warnings, John was unable or unwilling to correct his behavior, and continued his pattern of tardiness. Whether an individual has engaged in conduct that renders the employee (or former employee) ineligible for benefits is a mixed question of law and fact. The Department could consider John’s repeated tardiness as “willful and wanton” conduct, resulting in benefit disqualification. On the other hand, if John has a reasonable excuse for his tardiness, or if the department finds that Jane did not provide John with sufficient warnings regarding the likelihood that he would be terminated for his repeated tardiness, the department may decide to grant John benefits.

Finally, given Craig’s egregious and dishonest behavior, the department should deny his benefit application. Craig’s theft of company property and subsequent falsification of inventory records squarely constitutes willful and wanton disregard of the employer’s rights. This behavior falls within the statutory parameters for disqualifying behavior, under RCW § 50.04.294, and Craig will not be eligible for unemployment benefits.

Enroll now in the 10-part course "Interactive Leadership" today!

Employee morale has never been as important as it is right now. Empower your leaders and managers to not only develop their skills and confidence but to also create a positive impact on all your employees.

Along with steps to enhance employee morale, those who participate will gain greater confidence and effectiveness, stronger employee relations and powerful tools for high-stakes challenges, including: performance intervention, conflict resolution, planning, problem-solving meetings, performance reviews and much more.

DATE: Fridays, September 24 - December 3
TIME: 8:30am - Noon
INVESTMENT: $950 per-person
$850 if two or more are from one company
$1,300 for Non-Members
LOCATION: Associated Industries
1206 N. Lincoln Suite 200,
Spokane WA 99201
RSVP: Clydene Franklin at 509.326.6885 or
800.328.6832 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it

50 Ways to Leave “Some Lumber”

By Lisa Disselkamp
DataPro Solutions, Inc.

Eliminating paper timecards is, after all, about more than saving trees – it's about getting at the root of problems. Most of the problems are people related and the things they do or don't do. In business we have to manage the people. For years the vehicle for recording, reporting and reconciling paying people has been on paper. It's time to change that paradigm and save a tree or two.

The last time I heard “50 Ways to Leave your Lover” – that whimsical 1975 song by Simon and Garfunkel – I had to chuckle as I related it to what we witness every day, the many ways employees tend to sneak around the workplace and surreptitiously manipulate their work day, mislead employers and ultimately inflate their paycheck. All of it made so much easier when the processes are on paper.

So take a "trip" (‘70’s pun intended) with me and explore how you might save some lumber.

“Just slip out the back Jack”
That's an easy one with paper timecards. Leaving the workplace early and neglecting to report the shortened work day is going to happen in a paper system. Let's face it - paper timesheets are the "ultimate fail" as my teenagers would say, when it comes to validating information and ensuring rules are followed. If you don't want someone to know what you're doing - like the song says - paper is your method of choice.

Oh but "paper is cheap'. Not so! Automated timekeeping systems cost more than a ream of paper but the control and savings they harvest give the employer a significant return on investment that paper never can.

"Make a new plan Stan"
That's all about the rules and policies and Stan is out there every day to make certain the plan is in his favor. With paper based processes an employer cannot sufficiently manage the compounded impact of not adhering to policy and regulation. Stan's new plan may be putting your company at significant compliance risk when he tries to meet his budget by refusing to pay overtime to employees who have actually worked the hours. Many employers are under the gun today for failing to manage meal breaks - as well as overtime - and the penalties will be very high financially. Paper makes it possible.

"You don't need to be coy, Roy"
Oh but he is. A good example is the abuse of rounding rules. To make things easy employers often allow employees to round their time to the nearest quarter hour or ten minutes. Which way do you think the dial is going to point when an employee comes in after the top of the hour? He's going to write down on that paper timecard that he arrived at 8:00 a.m. Paper fails again when it comes to putting down the actual time an employee arrives and departs the workplace. If that late arrival results in an extra 15 minutes of time and it happens a few times throughout the work week - it adds up quickly. If your workers are paid just slightly more than minimum wage, say $8.00 an hour, that ¼ of an hour = $2.00 in added cost. That paper based process starts costing quite a bit.

"Hop on the bus, Gus"

For some employers, not everyone in their employee population is using their automated time and attendance system. Exempt (salaried) employees are often excluded from the perceived bondage of having to swipe in and out at a time clock. After all, these employees are often professionals and feel entitled to not have to record their actual time. It's a modern business myth that requiring exempt employees to clock in and out is “illegal” or prohibited. The Department of Labor has no such ruling. After contacting nearly every state none reported back that they expressly prohibit such a policy (although employers in states like California should be careful).

Managing professional exempt employees is a supervisor issue. It's their job to make certain the work gets done and employees are where they are supposed to be. Including exempts in a real-time labor management system allows the employer to better manage productivity through activity based tracking, sophisticated scheduling, and absence management. Did you know the average employees takes three days of unreported time off? Requiring these employees to report to work via the time clock can tighten down on that unreported time off. That's a real savings. So it's time to get Gus on the bus.

“Just drop off the key, Lee”
Paper gives you very little security or much of an audit trail (unless your payroll department is staff with handwriting experts and forensic scientists checking finger prints and dating ink blots). Timesheets are an extension of your corporate checkbook. They are invoices due upon receipt and ensuring their validity is crucial to avoiding overspending.

Today's time and labor management systems include biometrics which prevent “buddy punching”, voice validation for phone reporting, and password security and user identification for anyone who logs into the system. There are reports that log all of the changes and inputs in the system. Employers can see who, what, when and where. Adequate security around labor spending provides visibility and validity you just can get with paper.

“She said it grieves me so to see you in such pain
I wish there was something I could do to make you smile again
I said I appreciate that and would you please explain
About the fifty ways...”

Well, we covered just a few of the ways to “leave some lumber” so far. How your company can eliminate the paper associated with workforce management will be unique. Here are just a few of the offending papers that the right time and labor management system should help you eliminate.

• Timesheets
• Time off request forms
• Exception forms
• Adjustment forms
• Premium pay forms
• Time re-allocation forms
• Schedule requests
• Schedule planners
• Schedule rosters
• Calendars
• Attendance cards

It's pretty obvious that paper timecards are as old as that 1975 hit song. And like most old things they aren't as efficient, as earth friendly, or as effective at managing your business. Sometimes it takes a trek down memory lane to remind us of how far things have come.

DataPro Solutions, Inc. For assistance or additional information on this topic, email Tony Cook at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or call (888) 658-6881 or (509) 532-3530 ext 315.Used with permission. Copyright © DataPro. All rights reserved.

Associated Industries announces informative new website for inova.