SPECIAL ALERT
COBRA Subsidy Extension Requires Employer and Group Health Plan Administrator Action
Earlier this week President Obama signed the Department of Defense Appropriations Act, 2010, (the "Act") which, among other things, extends the eligibility period for and the length of the COBRA premium subsidy (the "Subsidy"). Introduced earlier this year in the American Recovery and Reinvestment Act of 2009 ("ARRA"), the Subsidy aided "assistance eligible individuals" ("AEIs") who were involuntarily terminated by requiring an AEI's former employer (or insurer, as applicable) to pay 65% of the AEI's portion of the COBRA premium for continued group health plan benefits for up to nine months. ARRA defined an AEI as an individual who is eligible for COBRA coverage because of an involuntary termination from employment that occurred during the period from September 1, 2008 through December 31, 2009. Enacted just before the year's end, the Act makes important changes to the Subsidy and its administration.
First, the Act extends the eligibility period for the Subsidy for an additional two months to include qualified beneficiaries who are involuntarily terminated through February 28, 2010. Notably, the new rule does not require that COBRA coverage begin by February 28, 2010 but that the AEI must experience an involuntary termination of employment by February 28, 2010 to be eligible (even if the COBRA coverage does not begin until March 1, 2010).
Second, the Act provides a longer Subsidy period. Under ARRA, an AEI who continued to qualify could receive the Subsidy for a maximum of nine months. The Act increases the maximum period for receiving the Subsidy to 15 months, which gives AEIs an additional six months of the Subsidy.
Third, an AEI who already reached the end of his or her Subsidy period (a maximum nine months) prior to the enactment of the Act can take advantage of the extension and has additional time to pay the reduced premium under the Subsidy to retroactively continue COBRA coverage. In order to continue COBRA coverage, an AEI has until the later of February 17, 2010 (60 days after the enactment of the Act), or 30 days from the date of the required plan administrator notice, to pay 35% of the premium cost and continue coverage. For example, an individual whose nine months under the Subsidy ran out on November 30 and who did not elect to pay the full premium (without the Subsidy) for December now may pay his or her 35% share of the December premium in January and receive retroactive COBRA coverage for December. In addition, an AEI who continued COBRA by paying the full premium after exhausting initial eligibility for the Subsidy must be reimbursed or given credit for the excess payments (i.e., the additional 65% of the COBRA premium).
Fourth, the Act imposes new notice obligations on plan administrators. On or before February 17, 2010, a plan administrator must send a notice explaining the Act and the changes to the Subsidy to any individual who: (i) qualifies as an AEI on or after October 31, 2009, (ii) experiences a COBRA qualifying event (consisting of termination of employment) on or after October 31, 2009, or (iii) previously qualified as an AEI but either did not timely pay the premium for any period of coverage after the individual exhausted the Subsidy or paid the full premium to continue COBRA coverage after the Subsidy ended. A plan administrator must provide a notice explaining the Act and the changes to the Subsidy to those individuals who experience a qualifying event after December 19, 2009 within the normal time frame applicable to COBRA qualifying event notices.
Employers and group health plan administrators should become familiar with the specifics of the Act and be prepared to provide the requisite notices on or before February 17, 2010. Additional clarification on the Act and the implementation of these changes is expected from the Department of Labor (and possibly the Internal Revenue Service) in the coming weeks.
EmployNews, ParkerPoe, December 22, 2009
Wednesday, December 23, 2009
Sunday, December 13, 2009
9 Steps in Developing an Effective Hiring Process
The Whitford Report
9 Steps in Developing an Effective Hiring Process
1. Define Key Results for the Position by Having Up-to-date, EEO and ADA Compliant Job Descriptions
The first step to successful hiring is always clearly defining what you need. There is nothing more important than clearly and explicitly defining what you need a new hire to do and what accomplishments and experience best prepare someone to do the job. If you aren’t sure what you are looking for; how will you know when you’ve found it?
Prior to interviewing, provide the applicant with a copy of the job description regarding the position for which they are applying. This provides information to the applicant regarding the essential functions of the job, experience and educational requirements, responsibilities and accountabilities for the position. The applicant may “self-eliminate” if the duties of the job are not what they expected. Additionally, allowing the applicant to review the job description may aid you later if the applicant claims they are unable to perform the essential functions of the job.
2. Review the Application and Resume for “Red Flags”
BEFORE interviewing any applicant, ensure the application for employment is filled out completely. That means no items left blank, work history is complete, reference information is complete (including phone numbers) and the application's acknowledgment has been signed authorizing you to verify any and all information contained on the application.
DO NOT interview from a resume in lieu of a completed application. If an applicant writes “see resume” in spaces that should contain detailed information, ask the applicant to complete those sections. If you receive “push back” from the applicant regarding this issue, here is your first “red flag”. Without a fully completed application and signed acknowledgment, you don’t have full authorization to verify the accuracy of information presented by the applicant.
3. Utilize an Interviewing Team
Have two interviewers (stake holders) sit in on the interview. One interviewer asks questions. The other one observes and listens to the candidate and asks follow up questions. After the interview, interviewers compare notes regarding the candidate’s responses, experience, energy, level of interest and demeanor.
The second interviewer often catches something that the primary interviewer missed, and vice versa.
Always have at least a first and second interview process in which the applicant is asked to come back on a different day to interview with the original interviewers or additional interviewers, whichever is applicable to your situation. You may observe differences in the candidate’s demeanor, energy, interest and consistency in their answers.
4. Conduct Structured, Behavioral Interviews
Utilize an interview questionnaire, tailored to the specific job, to ensure you are asking job, experience and performance related questions that will allow you to more accurately compare applicants. By asking the same questions of each applicant you can more easily compare apples to apples. In addition, if an applicant not selected for hire, makes a claim of discrimination you can more easily provide evidence that the interview process was fair and unbiased.
5. Ask Follow-up Questions
The first question asked should elicit the programmed response. The follow-up question gets to the facts. Simple follow-up questions, such as "How did you make that happen?" or "Can you please tell me more?", “What obstacles did you encounter and how did you overcome them?” or “Tell me about a time you …, and what was the outcome” (use an example of the types of issues the applicant is likely to encounter on the job for which you are interviewing.
Excellent candidates will provide you with specific, detailed descriptions of the steps they took with their team members to create results. Weak candidates will provide you with vague answers that lack detail.
Key: The best predictor of future behavior is relevant past behavior.
6. Reference Checks
Ask every candidate to provide you with the name and contact information of their direct supervisors listed in their job history, in addition to two to three additional references (not relatives).
Assure the candidate that references will be verified and will be one part of the decision making process.
Bear in mind, it is not your responsibility to look up phone numbers, addresses or otherwise try to locate the applicants references. A qualified applicant will come to the job interview with their complete reference information. Any applicant that cannot produce the needed information to verify their references and experience is NOT the most qualified applicant.
7. Compare Notes
Holding a discussion with other interviewers immediately or as soon as possible after conducting interviews almost always bears fruit. Insist that all interviewers take detailed notes during the interview. Ideally, within 24 hours after an interview, everyone who interviewed a candidate should meet to discuss the individual's strengths and weaknesses relative to the job being filled.
8. Follow Through
If a part of your hiring process is to verify references, conduct background checks, perform drug and alcohol screenings etc.; ensure you follow all of the steps outlined in your own “hiring process”.
You will need certain personally identifying information and a release by the applicant to perform these activities. Information such as date of birth, maiden name and social security number should ONLY be obtained once you have made a hiring decision.
ALL offers of employment should be made on the contingency of successful completion of all the steps in your hiring process. If after following your hiring process, you determine this is not the most qualified applicant, you may withdraw the offer of employment. Be sure all legal requirements regarding these steps have been followed.
If you need guidance to ensure you are in compliance with these laws, request the assistance of a highly skilled human resources professional.
9. Consistency!
Need I say more?
Please contact TheWhitfordGroup@aol.com for assistance in establishing an effective hiring process, interview script development and supervisory training.
9 Steps in Developing an Effective Hiring Process
1. Define Key Results for the Position by Having Up-to-date, EEO and ADA Compliant Job Descriptions
The first step to successful hiring is always clearly defining what you need. There is nothing more important than clearly and explicitly defining what you need a new hire to do and what accomplishments and experience best prepare someone to do the job. If you aren’t sure what you are looking for; how will you know when you’ve found it?
Prior to interviewing, provide the applicant with a copy of the job description regarding the position for which they are applying. This provides information to the applicant regarding the essential functions of the job, experience and educational requirements, responsibilities and accountabilities for the position. The applicant may “self-eliminate” if the duties of the job are not what they expected. Additionally, allowing the applicant to review the job description may aid you later if the applicant claims they are unable to perform the essential functions of the job.
2. Review the Application and Resume for “Red Flags”
BEFORE interviewing any applicant, ensure the application for employment is filled out completely. That means no items left blank, work history is complete, reference information is complete (including phone numbers) and the application's acknowledgment has been signed authorizing you to verify any and all information contained on the application.
DO NOT interview from a resume in lieu of a completed application. If an applicant writes “see resume” in spaces that should contain detailed information, ask the applicant to complete those sections. If you receive “push back” from the applicant regarding this issue, here is your first “red flag”. Without a fully completed application and signed acknowledgment, you don’t have full authorization to verify the accuracy of information presented by the applicant.
3. Utilize an Interviewing Team
Have two interviewers (stake holders) sit in on the interview. One interviewer asks questions. The other one observes and listens to the candidate and asks follow up questions. After the interview, interviewers compare notes regarding the candidate’s responses, experience, energy, level of interest and demeanor.
The second interviewer often catches something that the primary interviewer missed, and vice versa.
Always have at least a first and second interview process in which the applicant is asked to come back on a different day to interview with the original interviewers or additional interviewers, whichever is applicable to your situation. You may observe differences in the candidate’s demeanor, energy, interest and consistency in their answers.
4. Conduct Structured, Behavioral Interviews
Utilize an interview questionnaire, tailored to the specific job, to ensure you are asking job, experience and performance related questions that will allow you to more accurately compare applicants. By asking the same questions of each applicant you can more easily compare apples to apples. In addition, if an applicant not selected for hire, makes a claim of discrimination you can more easily provide evidence that the interview process was fair and unbiased.
5. Ask Follow-up Questions
The first question asked should elicit the programmed response. The follow-up question gets to the facts. Simple follow-up questions, such as "How did you make that happen?" or "Can you please tell me more?", “What obstacles did you encounter and how did you overcome them?” or “Tell me about a time you …, and what was the outcome” (use an example of the types of issues the applicant is likely to encounter on the job for which you are interviewing.
Excellent candidates will provide you with specific, detailed descriptions of the steps they took with their team members to create results. Weak candidates will provide you with vague answers that lack detail.
Key: The best predictor of future behavior is relevant past behavior.
6. Reference Checks
Ask every candidate to provide you with the name and contact information of their direct supervisors listed in their job history, in addition to two to three additional references (not relatives).
Assure the candidate that references will be verified and will be one part of the decision making process.
Bear in mind, it is not your responsibility to look up phone numbers, addresses or otherwise try to locate the applicants references. A qualified applicant will come to the job interview with their complete reference information. Any applicant that cannot produce the needed information to verify their references and experience is NOT the most qualified applicant.
7. Compare Notes
Holding a discussion with other interviewers immediately or as soon as possible after conducting interviews almost always bears fruit. Insist that all interviewers take detailed notes during the interview. Ideally, within 24 hours after an interview, everyone who interviewed a candidate should meet to discuss the individual's strengths and weaknesses relative to the job being filled.
8. Follow Through
If a part of your hiring process is to verify references, conduct background checks, perform drug and alcohol screenings etc.; ensure you follow all of the steps outlined in your own “hiring process”.
You will need certain personally identifying information and a release by the applicant to perform these activities. Information such as date of birth, maiden name and social security number should ONLY be obtained once you have made a hiring decision.
ALL offers of employment should be made on the contingency of successful completion of all the steps in your hiring process. If after following your hiring process, you determine this is not the most qualified applicant, you may withdraw the offer of employment. Be sure all legal requirements regarding these steps have been followed.
If you need guidance to ensure you are in compliance with these laws, request the assistance of a highly skilled human resources professional.
9. Consistency!
Need I say more?
Please contact TheWhitfordGroup@aol.com for assistance in establishing an effective hiring process, interview script development and supervisory training.
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