February 2008
national labor relations board allows employers to restrict employees' use of e-mail.
In December, 2007, the National Labor Relations Board (NLRB) addressed an issue relating to employee use of an employer supported e-mail system. The NLRB decided that employees have no statutory right to use an employer's e-mail system for activity protected under §7 of the National Labor Relations Act, legislation which protects an employee's right to support a union or to refrain from doing so. Register-Guard 351 NLRB 70.
The NLRB ruled that an employer's policy of prohibiting use of its e-mail system for non-job-related solicitations did not violate the National Labor Relations Act.
Private employers should take note of this decision, even if not involved with union matters, because the decision supports an employer's right to restrict use of its e-mail system. The decision allows employers to permit personal and charitable communications and solicitations in the workplace while still specifically barring union-related activities.
NEW YORK INSURANCE DEPARTMENT TO INTRODUCE RULES REQUIRING INSURANCE BROKERS TO DISCLOSE COMMISSION.
The New York State Insurance Department will be introducing rules in the upcoming year requiring insurance brokers and agents disclose to their clients the commissions earned on policies they place. The timeframe for such actions have not yet been determined. Rules governing this matter would be a complete departure from the current practice whereby insurance brokers and agents are not required to disclose commissions to their clients.
HOW ETHICAL IS YOUR BUSINESS?
A recent survey by the Ethics Resource Center regarding ethical misconduct and American businesses found that 56% of employees witnessed ethical misconduct in their workplaces in 2006. This percentage was up from 52% in 2005 and 46% in 2003. The most common types of ethical misconduct were conflicts of interest, lying to employees, and abusive behavior.
More than 40% of employees who witnessed ethical misconduct did not report it to their supervisors or top management, mainly out of fear of retaliation or a feeling that no action would be taken by the corporation with regard to the misconduct.
This issue is brought to your attention because a new federal regulation took effect on December 24, 2007, requiring federal contractors to have a written code for business ethics and conduct. Additional information is available at www.ethics.org.
MEDICARE BENEFITS TO BE ACCOUNTED FOR BY EMPLOYERS TO REDUCE THEIR HEALTH INSURANCE EXPENSES.
The Equal Employment Opportunity Commission affirmed a rule published December 26, 2007, formally authorizing employers to take Medicare into account when structuring health benefit packages provided to retired workers. Employers can reduce their health insurance expenses once the retired workers turn 65 and qualify for Medicare. This affirmation shifts a costly burden from private employers to Medicare in picking up the ever increasing health insurance costs. In effect, the Equal Employment Opportunity Commission is seeking to preserve and protect employer provided retiree health benefits, which may be more generous than Medicare, while shifting a financial burden away from the employer.
THE EFFECT OF PROPOSED FEDERAL TAX REBATES ON SMALL BUSINESSES
As recent headlines in the news have indicated, the federal government has proposed a one-time tax rebate of $150 billion to America’s families and small businesses. Businesses are expected to receive $50 billion in incentives to invest in plants and equipment. The stimulus measure would give businesses immediate tax write-offs for 50% of the purchase price of plants and other capital equipment and also permit small businesses to write-off additional purchases of equipment.
Christopher R. Poole