Restricting Second Jobs
Restricting Second Jobs | Human Resource Executive Online
California workers -- coping with mandatory four-day instead of their regular five-day work weeks -- were frustrated when their employer reminded them that taking on a second job might conflict with the departmental policies. While sending out the message could have been handled better, experts say, HR leaders should make sure that such communications are undertaken, nevertheless.
By Tom Starner
With pay cuts and recession-based furloughs on the rise, is it a good idea for employers to keep their workforces informed about "second job" guidelines and policies?
Yes, say legal experts.
Yet, when the California Department of Public Health sent a memo to furloughed employees on that very issue, a local TV news station reported that some employees were not very happy about it.
The
July 31 memo
outlined and clarified the department's policies on second jobs, as its workforce is under a "Friday Furlough" situation (all nonessential California state employees are working a four-day workweek).
The memo listed specific types of prohibited conduct for second jobs, including an employee leveraging his or her state position for private gain, influence or other considerations. It also required that employers of the second jobs not be subject to inspection or enforcement by the state health department; required that second-job hours not make the employee less efficient at the state job and required that second jobs not involve the use or transfer of confidential state information.
According to the report from KGO Channel 7, the ABC affiliate in San Francisco, employees were angered and insulted by a portion of the memo that suggested they look for extra work at retailers such as Kohl's, Target or Macy's.
The employee frustration is understandable, but, experts say, it was probably misplaced in this case.
Michael Young, a Los Angeles-based partner in the labor and employment practice at Alston & Bird, a global law firm, says the news story did not reflect the memo's intent and contents.
"It seems the department was just trying to educate employees about the rules when they are looking for secondary employment," says Young. "Employers have a duty to explain what the rules are, so employees can avoid conflict-of-interest situations.
"It's hard to say why [there was] such a negative reaction, but my guess is employees are simply angry that they are getting furloughed in the first place," he says.
Shannon McDonough, a shareholder and employment attorney at the Minneapolis law firm of Fafinski Mark & Johnson agrees, noting the memo "in and of itself" is not inappropriate because the state has such a policy.
And having such a policy "is not uncommon," she says. "Many employers have conflict of interest guidelines in their policy and employee handbooks."
To forestall a negative reaction -- which in this case may have also been prompted by the state suggesting retailers as potential second-job employers -- the state could have used more generic suggestions, such as market segments or industries.
In addition, McDonough says, it might have been a good idea for the HR department to have invited workers with questions about the policy to get in touch, so they could discuss each situation individually.
With pay cuts and furlough use on the rise, that advice may prove even more important today, according to a new study by Hay Group, a global management consultancy based in Philadelphia.
About one-third (35 percent) of 100 U.S. companies surveyed are using furloughs as a method of cost control or have a furlough policy in place at their organizations, says Tom McMullen, Hay Group's U.S. reward practice leader.
The study also found that half of respondents using furloughs anticipate using them as a cost-cutting measure for six to 12 months.
McMullen says that's a significant number for the "white-collar world," which previously did not view furloughs as a viable option for controlling labor costs. As a result, it is probably a good time for HR leaders to dust off the conflict-of-interest policies for their organizations.
HR executives should learn "how to best communicate and manage the information," based on the actions and reactions in the situation that occurred in California, McMullen says.
Whether a company institutes furloughs or pay cuts, it's a good practice for employers to have conflict-of-interest policies in place regarding second jobs, McDonough says.
"Plus, it's a good idea to remind people of them regularly," she says. "You don't want to overly restrict people if you are cutting back their hours in this economy, because they need the income. But you also have to protect your organization."
August 24, 2009 Copyright 2009© LRP Publications
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