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Armstrong World Sales sees sales decline

BY Ken Clark

Floors and ceilings manufacturer Armstrong World Industries reported net sales of $622.3 million in the first quarter ended March 31, down 2.1% from $636.0 million in the same quarter last year.

The Lancaster, Pa.-based company reported net earnings of $3.0 million, down from $18.2 million in last year’s first quarter.

"We delivered first-quarter results in line with the expectations we outlined earlier this year, despite a continued choppy commercial market environment," said Matt Espe, pPresident and CEO. "We also achieved a significant milestone toward our growth initiatives in China as we commenced operations at our homogenous flooring and ceilings plants. Collectively, I’m proud that construction of these plants was completed with a perfect employee safety record and the plants were brought online as scheduled and on budget." 

Sales were negatively impacted by approximately $9 million due to the sale of the Patriot wood flooring distribution business, which occurred in the third quarter of 2012. The sales decline was also driven by lower commercial volumes, which more than offset gains in new residential construction that resulted in strong volume growth in the Wood Flooring business. Price and mix were both positive, but only partially offset the impact of lower volumes. 

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Navigating the leave-management maze

BY Joanne Sammer

When an employee requires a period of leave because of a medical issue or disability, the situation is not always straightforward, and the best way to manage it is not always clear. Adding to the confusion is that employers face an ever-changing alphabet soup of federal and state laws and regulations, starting with the Family and Medical Leave Act (FMLA).

Employees may become disabled or need to act as the primary caregiver for a disabled spouse, child or parent for an indefinite period, leaving them unable to return to work after they have used all of the legally required FMLA leave — generally a total of 12 workweeks during any 12-month period — in addition to whatever paid or unpaid leave their employer provides. Terminating that worker’s employment, however, is fraught with legal implications. 

Developing a game plan

“Leave management is not cut and dried anymore,” said Mike Bailey, vice president of HR consultancy Aon Hewitt in Philadelphia. Before taking action, therefore, companies need to consider carefully whether a particular employee’s situation is covered by any laws and regulations. No matter what the circumstances, employers should consult with legal counsel to make sure their actions comply with the law.

For example, the Americans with Disabilities Act (ADA), after the 2008 enactment of the somewhat confusingly named Americans with Disabilities Act Amendments Act (ADAAA), now considers extended leave to be a reasonable accommodation for disabled employees. “Employers must develop and follow a clear process to make sure that any discussions they are having with the employee are focused on identifying opportunities for the employee to come back to work and, where appropriate, making accommodations to get those people back to work,” said Bailey.

In this environment “effective leave management requires a game plan and some understanding of the basic rules that apply,” added Marc Mandelman, senior counsel at law firm Proskauer Rose LLP in New York. More important, organizations need to avoid common misconceptions about what they can and cannot do when an employee is out on leave.

Mandelman noted that companies may think they have the option of terminating a worker who has no more leave time available under the FMLA and is unable to return to work. Or employers may want to set a policy that limits the amount of available leave, with the implication that any employee who exceeds that amount will be dismissed. In both cases these actions run afoul of one or more of the laws that govern employee leave.

For example, the policy statement limiting available leave is likely to be considered an inflexible leave policy that the Equal Employment Opportunity Commission (EEOC) has deemed unlawful. In addition to the ADA and the ADAAA, other federal and state laws and regulations can affect employer actions when it comes to managing leave, and the situation is particularly complex in California.

Developing a leave-management structure

Obeying the letter of the law is not all an organization needs to do when it comes to managing employee leave. In general, employers should have a strong, well-documented policy that everyone in the organization knows about and understands.

Such clearly documented policies and procedures should be readily available to supervisors and employees. This way, when a worker goes out on leave, there is a clear road map for both the employee and the supervisor to follow.

“This can be a tough time for employees who are dealing with their own disability or sickness or that of a family member,” said Chuck Lamonica, a principal at HR consultancy Mercer in Philadelphia. “It is important to provide employees with a clear picture of what’s going to happen during what is an uncertain and stressful time.”

In addition, training is critical to ensuring that supervisors understand the leave-of-absence policy and process well enough to discuss them thoroughly with employees and to answer their questions. At the same time, supervisors need to be clear on what questions they themselves can and cannot ask of those they oversee. For example, it is never a good idea to ask employees personal questions, questions about the specifics of their medical condition or reasons for leave outside of what is specifically required to manage the situation, as that could run afoul of privacy rules under the Health Insurance Portability and Accountability Act (HIPAA).

Treading carefully

It is important to understand that, even within these laws and regulations, employers have some room to maneuver. “One size does not fit all,” said Mandelman. “All situations involving reasonable accommodation have to be assessed on a case-by-case basis.” For instance, if a business grants one employee an eight-month leave of absence, that does not mean that eight months is the right amount of leave for everyone. “This does not necessarily establish precedents,” Mandelman explained. Other employees may require more or less leave until they are ready to return to work.

However, employers should tread carefully when making these types of distinctions and be sure to document the situation, the reasoning behind any relevant decisions and all communications with the particular worker.

While employers may have “different leave-management processes for different classes or types of employees, such as those covered by a collective bargaining agreement, nonexempt versus exempt employees and so on,” said Bailey, “once organizations start treating people differently within those categories, they start setting themselves up for potential legal issues.”

The outsourcing option

Given the growing complexity of leave management, it is not surprising that some employers are choosing to outsource leave management to ensure access to the right kind of expertise. However, an employer should take care when choosing an outsourcing partner because how it manages these situations and deals with the individual employees involved will affect how the rest of the workforce views the organization. So even if an organization decides to outsource leave management, it still needs to stay involved.

Employers need to find an outsourcing partner that is willing to keep them apprised of any ongoing leave cases and that will allow their input on handling a situation. Even when a vendor is overseeing the day-to-day details, leave management should still reflect the employer’s values and approach to workforce management.

Joanne Sammer is a New Jersey-based business and financial writer.

©2013 SHRM. All rights reserved.

Have HR-related questions and concerns? Get access to essential forms, policies and guides, plus a live call center, aToolkitHR.com, powered by HCN and the Society for Human Resource Management (SHRM). 

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Retailer fined $40,000 for lack of emergency action plan

BY Roy Maurer

The CVS pharmacy in Red Hook, N.Y., was hit with a $40,000 fine because it did not have an emergency action plan for workers to follow if a fire or other emergency were to occur at the store. Similar violations were found in other CVS pharmacies in the past three years.

The U.S. Occupational Safety and Health Administration (OSHA) proposed the fine April 8, 2013, after inspecting the store in response to a complaint.

The inspection found that the store lacked a site-specific emergency action plan. OSHA standards require emergency action plans in workplaces with more than 10 employees and where fire extinguishers are present.

“The fact that CVS has repeatedly failed to develop emergency action plans is disturbing,” said Kimberly Castillon, OSHA area director, in a media statement. “Hazards can vary from location to location, so it is imperative that each store has and maintains an effective emergency action plan specific to that store.”

OSHA issued CVS a repeat citation, which applies to an employer that has been cited for the same or a similar violation of a standard, regulation, rule or order at any other facility in federal enforcement states within the past five years.

OSHA had cited CVS in 2010 and 2011 for similar hazards at stores in Bridgeport, Conn., and Providence, R.I.

“Hazards such as this can be prevented if employers implement and maintain an effective illness- and injury-prevention program in which management and employees work together to identify and eliminate hazardous conditions,” said Robert Kulick, OSHA regional administrator, in a media statement.

OSHA provides an interactive eTool on its website to aid management in emergency plan implementation.

The Red Cross also offers a free preparedness program to businesses through Readyrating.org. Companies may access this resource to establish or refine their emergency action plan.

Roy Maurer is an online editor/manager for SHRM. Follow him on Twitter @SHRMRoy.

©2013 SHRM. All rights reserved. 

Have HR-related questions and concerns? Get access to essential forms, policies and guides, plus a live call center, aToolkitHR.com, powered by HCN and the Society for Human Resource Management (SHRM). 

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