HR Take the Wheel: Human Resource Challenges in a Transit Context

1. HR Take the Wheel: Human Resource Challenges in a Transit Context RTAC Spring Conference 2019 |Paul LaLonde, SHRM-CP

2. Why is HR so evil?

3. What exactly is HR? • Human resource management is an umbrella term that focuses on a number of major areas, including: • Recruiting and staffing • Compensation and benefits • Training and learning • Labor and employee relations • Organization development

4. SHRM BoCK

5. What exactly is HR? • For most organizations, agencies, and businesses, HR does: • Managing job recruitment, selection, and promotion • Developing and overseeing employee benefits and wellness programs • Developing, promoting, and enforcing personnel policies • Serving as a primary contact for work-site injuries or accidents • Promoting employee career development and job training • Providing orientation programs for new hires • Providing guidance regarding disciplinary actions • Who are HR professionals? • Good HR v. Bad HR

6. After this presentation, you should: Better understand why HR is important in your organization (transit context). Better understand HR laws, concepts, and trends that affect your organization. Better understand HR’s role in your organization. Better understand how your role fits into HR functions. Better understand how to partner with HR to achieve organizational success. Get some laughs in an otherwise dense presentation…. I kid… maybe.

7. The Legal Disclaimer…. The information and opinions provided in these slides are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed in these slides or through this presentation are the opinions of the individual author and may not reflect the opinions of other parties.

8. Today’s Workplace EvolvingRapidly • Significant Changes AffectingWorkplace • What AffectsWorkplace • Society • Culture • Technology • Government • Legallandscape • Generationalchanges • Increased ComplianceObligations/Requirements • Laws • Regulations

9. Risks ofNot Doing the Right Thing • Employers Face HighStakes • Civilfines • Criminalpenalties • Administrative actions – EEOC charge, unfair laborpractice • Litigation is $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ • Harm to business reputation and professionalimage • Bad publicity/negative press and socialmedia

10. Top HR Challenges for Rural Transit Systems Federal Challenges State and Local Issues Workforce Planning Employee Leave Benefits/Health/Wellness Data Security & Privacy Marijuana & Drug Testing Employee Handbooks Workplace Violence Diversity & Inclusion Transit Connections follow each challenge.

11. Challenge #1: FederalChallenges • Changing Federal Focus • Philosophical shift with Trump presidency –employer friendlypolicies • Under Obama – pro-employee sentiments, greater agencyauthority • Now, smaller role for government, decreased regulations, driving oversight tostates • Roll back agency authority – EEOC, NLRB, OSHA,DOL

12. Challenge # 1: FederalChallenges • Affordable CareAct • Obligations and uncertainty continue to burdenemployers • 39% viewed preparing for future of healthcare andACAas very or extremelychallenging • Immigration/TravelBan • Hardline stance/restrictive policies in light of increasingly diversesociety • Increased compliance obligations, I-9 audits, and raids byICE • 31% viewed hiring of workers on visas very or extremelychallenging • Conflict Federal/State MarijuanaLaws • Employers unsure how tohandle • 34% were very or extremely challenged by conflictinglaws

13. Challenge # 1: FederalChallenges • LGBT Rights • Trump administration – Title VII does not protect sexual orientation and genderidentity • Rescinding biasprotections • Protecting religious liberty at expense of individualrights • Supreme Court • Conservative Justices appointed by Trump - Gorsuch andKavanaugh • 28% viewed impact on employment law as very or extremelychallenging

14. #1 Transit Connection: FederalChallenges • What a Transit Employer Should Do • Closely monitor developments –new Congress both House and Senate2019 • Anticipate new regulations GINA, ADA,wellness,overtime • Comply with the laws and regulations that are on the books, at least until they arechanged • Comply with immigrationrequirements, especially I-9 Forms • Practice inclusion regarding LGBTrights • Maintain detailed adequate records/documentation regarding employees/employmentactions (More on that later) • Legitimate business reason for each employmentdecision

15. Challenge #2: State and LocalIssues • Trending and EmergingIssues • Minimum wageincreases – IL $15.00/hour by 2025. • $9.25 on Jan. 1, 2020, jump to $10 on July 1, 2020, and then increases $1 each Jan. 1 until 2025 • Chicago increases to $13 in July 2019 • Paid sick leave/paid family (parental) leave (small numberstates) • Medical marijuana (33 states and growing, expanding conditions), recreational marijuana (10+ states) • Pritzker ran on legalization platform… more on that later…. • Harassment protections increased (i.e., CA, DE, MD, NY, NYC) • Predictable/predictivescheduling (CA, OR, WA, VT, NY)

16. Challenge #2: State and LocalIssues • Trending and EmergingIssues • Salary history ban/equal pay (i.e., CA, Hawaii, Illinois, Massachusetts, New Jersey, Oregon,Washington) • Breastfeeding/pregnancy accommodations (i.e., Illinois, Massachusetts, New Jersey, Utah, SanFrancisco) • More on next slide…. • Gun laws/weapons in theworkplace • IL “No Firearms” sticker on all entrances, including vehicles!!! • Military protections (i.e., CA, IL, NJ, MA, MO, SD) • Illinois Service Member Employment and Reemployment Rights Act (ISERRA) (2019) • Domestic violence leave (i.e., VT andWA) • Ban the Box laws – IL is a Ban the Box state since 2015

17. Challenge #2: State and LocalIssues • Nursing Mothers in the Workplace Act, Illinois (Public Act 92-0068)Effective July 1, 2018 • An employer shall provide reasonable break time to an employee who needs to express breast milk for her nursing infant child each time the employee has the need to express milk for one year after the child’s birth.  • The lactation room or area cannot be in a restroom. The lactation room or area must include a chair, a table, an electrical outlet, and, where possible, a sink with running water. • The break time may run concurrently with any break time already provided to the employee. • An employer may not reduce an employee’s compensation for the time used for the purpose of expressing milk or nursing a baby. • An employer shall provide reasonable break time as needed by the employee unless to do so would create an undue hardship.   • An employer shall make reasonable efforts to provide a room or other location, in close proximity to the work area, other than a toilet stall, where an employee can express her milk in privacy.   • Tip: Have open and honest communication with the employee.

18. #2 Transit Connection: State & Local • What a Transit Employer Should Do • Carefully monitor existing/emerging state and local law developments - stay on top oftrends • Know which state/local laws apply to workplace – create comprehensive strategy to manage conflictinglaws • Determine how to handle conflicts/address state and local differences in employee handbooks/policies • Determine how to handle legalupdates • Train supervisors and employees on need-to-know state and local laws and keydifferences

19. Challenge #3: WorkforcePlanning • 21st Century Workforce Trends AffectingEmployment • Workforce planning: Process of aligning organizational needs with workforce needs to ensure legalcompliance • Internal and external factors shape recruiting, hiring, andretention • Economy and marketfactors • Laws and regulations on federal, state, and locallevel • Technology/mobile devices -Improve communications andproductivity • Increase in flex work/gig economy/alternative work arrangements -greater work/lifebalance/control

20. Challenge #3: WorkforcePlanning • 21st Century Workforce Trends AffectingEmployment • Scientific advancements - automation, robotics, artificial intelligence - challenging traditionalworkers • Changing societal demographics - Aging Baby Boomers, Millennials/Gen Z, managing multiplegenerations • Global society and globalmarketplace • Using HR data - Predictiveanalytics

21. #3 Transit Connection: WorkforcePlanning • What a TransitEmployer Should Do • HR should play an active role in shaping the evolving workforce and identifying right people for the right positions at the rightcost • Understand the unique factors affecting business and assess short and long termgoals • Align HR objectives with businessobjectives • Utilize data analytics in all phases to track progress (recruiting/hiring, performance,retention)

22. #3 Transit Connection: WorkforcePlanning • What a Transit Employer Should Do • Hiring • Focus on industry experience, skills, competencies,talent • Keep budget/business goals inmind • Consider gig and contractworkers • Utilize technology and mobile apps inrecruiting • Remember new laws (salary history, ban thebox) • Training • Focus on professional development/education and building long termskills • Provide leadership opportunities/mentoring/support to move into higherposition • Highlight key competencies and how they can benefitorganization

23. #3 Transit Connection: WorkforcePlanning • What a TransitEmployer Should Do • Performance • Who will conduct reviews and howoften • Consider goals of performance reviews/what toaccomplish • Engagement/Retention • Assess who the employer is losing andwhy • Identify risks • Consider how to retain (increased compensation/benefits/work-lifebalance) • Managing Generations • Consider retirement options for Baby Boomers – packages/benefitsoffered • Account for unique skills/talents of younger generations – Millennials and GenerationZ • Retain older workers in changedcapacity • Succession planning!

24. Succession Planning • Succession planning takes a global look at the organization. • Historically focused only on high-level positions, • Give attention to selecting successors for positions throughout the organization. • Makes sense in the highly aggressive talent competition. • Know who your top players are at every level—and what positions you can’t go for long without having filled. • Succession management is a comprehensive process that starts by identifying possible successors and creating a development plan for each person identified. • Goal of a successful succession plan is to have a pipeline of highly developed leaders across the organization who are prepared (or are preparing) to fill vacancies as they arise. • Ongoing planning process, periodic discussions to assess talent and determine development needs for those identified as high performers with the ability to move up in the organization.

25. Succession Planning • But be aware: Succession management can be made too complicated by elaborate forms and processes. The process dominates the discussion rather than the focus being on the potential employees under discussion. The most effective succession processes are flexible, open, inclusive, and owned by top management and the employees with HR support. • For best results: • Consider that an integrated process that links succession planning with leadership development • Provide a competitive advantage to forward-thinking organizations. • Incorporating succession management into your culture helps to build strong leaders and can also be a recruitment and retention advantage. • The bottom line: By providing an opportunity for employees to learn and grow, you are feeding a significant need most people have—to see that potential is realized. Succession management is a huge investment in building a successful organization—one that can be sustained over time.

26. Challenge #4: EmployeeLeave • Various Types of Leave Now LegallyRequired • Expanding federal, state and local level leavelaws • Federal - FMLA, ADA,USERRA • State and local level - Paid sick (Cook County), military, domestic violence, bereavement,organdonor, school activities, emergency responder, crime victim leave – (new – NYC proposal paid timeoff) • Managing their complexinterrelationship • Consider leave as abenefit/perk

27. Challenge #4: EmployeeLeave • Intersection of LeaveLaws • Injured employee may be subject to FMLA and/or ADA – workerscompensation • Sick employee may be subject to State and local paid sick leave laws -ADA • Pregnant employee/new parent may be subject to FMLA, state family leave laws, paid familyleave • insurance • Military employee may be subject to USERRA – ADA, family military leave, state military leavelaws

28. Challenge #4: EmployeeLeave • Illinois Employee Sick Leave Act (2017) • Requires employers to allow employees to use at least a portion of the sick leave time that is already available to them, under certain existing employer policies, to care for certain relatives “for absences due to an illness, injury, or medical appointment of the employee’s child, spouse, [domestic partner], sibling, parent, mother-in-law, father-in-law, grandchild, grandparent, or stepparent, for reasonable periods of time as the employee’s attendance may be necessary, on the same terms upon which the employee is able to use sick leave benefits for the employee’s own illness or injury.”

29. #4 Transit Connection: EmployeeLeave • What a Transit Employer Should Do • Determine which leave laws apply to each workplace and how laws worktogether • Provide proper notice of leave laws - policies and procedures, employee handbooks,notices/posters. • Review all paid time off, vacation, or other paid leave policies and reasonable accommodation policiesto determine if other policies may need to becreated. • Avoid blanket policies – leave room fordiscretion • Trainsupervisors- handling leave requests,tracking, key words • Understand how different leave related lawsintersect • FMLA/WC/ADA • Decide if you will go beyond legal requirements – may reduce turnover/absenteeism and increase productivity/retention/morale • Avoid wrongfully denying leave request – could lead to employerliability

30. Challenge #5:Benefits/Health/Wellness • Important to Have Happy & HealthyEmployees • Advantages • Benefits can help attract/retainemployees • Increase employeeengagement • Provide competitiveadvantage • Decreaseabsenteeism/tardiness/WC cases • Challenges • Compliance with medical legislation, i.e. ACA, HIPAA,GINA • Effectively communicating to workforce/understandingrequirements • Ability to afford such benefits • Consistent application

31. #5 Transit Connection:Benefits/Health/Wellness • What a TransitEmployer Should Do • Evaluate benefits – Competitive? Latest trends? Match organizational needs? Generationalneeds? • Offer creative benefit options (beyondhealth/dental/vision) • Tuitionreimbursement • Flexible worktime • Jobsharing • Commutingbenefits • Gymmembership • Concierge services (child care, pet care, drycleaning), • Student loanassistance • Financialplanning • Assess vendors and offerings, redesign, or eliminate if notworking

32. #5 Transit Connection:Benefits/Health/Wellness What a Transit Employer Should Do Consider supplemental and voluntary options/ personalization andcustomization Comply with ACA reporting requirements/obligations in accurate and timelymanner Understand increased use of technology and mobile applications, telemedicine,AI Effectively communicate benefit options toworkforce Focus on employee wellness and employee assistance programs (not easilydetected) Make sure that any wellness programs arecompliant

33. Employee Wellness - #MentalHealthMatters • There is a Mental Health Crisis in the US – a closer look at the numbers:* • Approximately 1 in 5 adults in the U.S. – 43.8 million, or 18.5% – experiences mental illness in a given year. • Approximately 1 in 25 adults in the U.S. – 9.8 million, or 4.0% – experiences a serious mental illness in a given year that substantially interferes with or limits one or more major life activities. • Approximately 1 in 5 youth aged 13 - 18 (21.4%) experiences a severe mental disorder at some point during their life. For children aged 8 - 15, the estimate is 13%. • 6.9% of adults in the U.S. – 16 million – had at least one major depressive episode in the past year. • 18.1% of adults in the U.S. experienced an anxiety disorder such as posttraumatic stress disorder, obsessive-compulsive disorder, and specific phobias. • Among the 20.2 million adults in the U.S. who experienced a substance use disorder, 50.5% – 10.2 million adults – had a co-occurring mental illness. *https://www.nami.org/learn-more/mental-health-by-the-numbers

34. Employee Wellness - #MentalHealthMatters • Consequences of Lack of Treatment – a closer look at the numbers:* • Serious mental illness costs America $193.2 billion in lost earnings per year. • Mood disorders, including major depression, dysthymic disorder and bipolar disorder, are the third most common cause of hospitalization in the U.S. for both youth and adults aged 18 - 4. • Individuals living with serious mental illness face an increased risk of having chronic medical conditions. Adults in the U.S. living with serious mental illness die on average 25 years earlier than others, largely due to treatable medical conditions. • Suicide is the 10th leading cause of death in the U.S.,and the 2nd leading cause of death for people aged 10 - 34. • More than 90% of people who die by suicide show symptoms of a mental health condition. • Each day an estimated 18 - 22 veterans die by suicide. *https://www.nami.org/learn-more/mental-health-by-the-numbers

35. Employee Wellness - #MentalHealthMatters What a Transit Employer Should Do: Create a culture that supports mental health Increase awareness: Give employees access to education and resources Offer trainings to managers, such as Mental Health First Aid Training – www.mentalhealthfirstaid.org. Encourage “Work Life Balance” or “Work Life Integration,” “Work Life Blend” whatever the term. Develop Mental Health Policies, such as ones to prevent bullying that further the stigma. Treat people fairly and empathetically. Provide screening resources, or ensure your medical insurance covers mental health services. Monitor employee engagement.

36. Employee Wellness - #MentalHealthMatters

37. Challenge #6: Data Security &Privacy • Critical to Safeguard and Protect Confidential Data andInformation • Rapid pace of technological developments/omnipresent internet/mobiledevices • Positive impact mobility, communication, productivity and efficiency, but enhancedrisks • Tremendous amount of information digitally stored belonging to employer, employees,customers/clients • HR needs to take steps to minimize risk of cyber breaches/ protect confidential digitalinformation

38. Challenge #6: Data Security &Privacy • Legal Efforts to Protect Data and Information • StateEfforts • All 50 states have data security law inplace • Employers required to provide notice when personally identifiable information acquired withoutauthorization • Information extends to name, SSN, drivers license number, credit/debit card information, bankaccounts • Biometric privacylaws • Be Vigilant of Data Breeches • Employee negligence/error • Cyber attack/criminal hacker • Physical theft/exposure • Spyware/Ransomware • Phishing

39. #6 Transit Connection: Data Security &Privacy • What a TransitEmployer Should Do • Take stock of confidential information/ensure it is secureby: • Using security tools- firewalls, 2 step/biometric authentication, encrypteddata • Encouraging 3rd party vendors, partners, providers to take similar same securitymeasures • Limiting access to private/confidential data and only on a need-to-knowbasis • Work closely with IT to develop, implement and enforce policies- confidentiality, privacy, mobile devices, social media, employee conduct, businessethics • Utilize non-disclosureagreements

40. #6 Transit Connection: Data Security &Privacy • What a TransitEmployer Should Do • Conduct background screenings – look out for red flags fraudulentconduct • Train employees andsupervisors • Safety when using employer’snetworks • Suspiciousemails/links • Monitor/observe employeeactivity • Conduct exit interviews  make sure equipment/technological devices are returned, accessterminated • If breach occurs must critically assess, remediate,discipline

41. Challenge #7: Marijuana/DrugTesting • Changing Marijuana Laws and Drug Testing Key Area ofConcern • Marijuana conflict -federal law prohibits marijuana use vs. state law allows medical/recreationalpurposes • Recreational laws strictly regulate – ban public use, prohibit on the job use, do not requireaccommodation • Some users may be protected as individuals with adisability • Efficiency, safety, and productivity priority especially for safety sensitivepositions • Marijuana use leads to increased workers comp claims/insurance , absenteeism, tardiness,inattention • Drug testingimpacted • May implicate off duty conductlaws

42. #7 Transit Connection: Marijuana/DrugTesting What a TransitEmployer Should Do When it comes to Safety Sensitive employees, keep doing whatever JWax says!!! For non-Safety Sensitive Employees??? But remember…. #3 Develop/implement/enforceDrug Free Workplacepolicies -prohibit use of unlawful drugs on employer’s premises and during working time, prohibit misuse of prescription drugs, safedriving Treat drugs like alcohol prohibit on the job use because of effect on safety andproductivity Train supervisors on warningsigns – Ongoing Reasonable Suspicion training!!! Avoid quick decisions on employees who may be using drugs –ADA protections Provide reasonable accommodations,counseling Be careful about taking action based on lawful off-dutyconduct

43. Challenge #8: EmployeeHandbooks • Essential to Implement and Update Your Employee Handbook • Communication tool between employer andemployees • Sets forth policies/standards for employee behavior, workplace conduct and performanceexpectations • Used by managers/supervisors as a guide to handle commonissues • Incorporate an employer’s goals and mission as well as keypolicies • Provides fairness and consistency acrossboard • Assists in enforcing policiesbyshowing employeeconsent • Important tool in preventing and defending againstlawsuits

44. #8 Transit Connection: EmployeeHandbooks • What a TransitEmployer Should Do • Monitor developments at federal, state, local level – understand which lawsapply • Be aware emerging issues– EEO, accommodations, leave, smoking, predictable scheduling, equalpay • Update handbook on annual or semiannualbasis • Take right approach for particular workforce- multistate/multijurisdictionalemployer • Handbook based on federal requirements, provide statesupplements • Use separate handbooks for eachstate • One handbook with uniform policies across states providing greatest benefits toall

45. #8 Transit Connection: EmployeeHandbooks What a TransitEmployer Should Do Draft in clear/concise/unambiguousmanner Do not infringe upon Section 7 right to engage in protected concertedactivity Careful about policies - social media, contact with media, confidentiality, investigations,communications Make sure readable, relevant, interesting- provide anecdotes/examples/narratives andcolor/visuals/graphics Require employees to acknowledge receipt, consent and understandpolicies Provide frequent training on handbookpolicies

46. Challenge #9: WorkplaceViolence • Need to Minimize Risk and Prepare for Active Shooter/WorkplaceViolence • Current events mass shootings, bomb threats, terroristattacks • Need to implement procedures to take in case of active shootersituation • Recognize employer duty to protect under OSHA General DutyClause • Prepare employees and supervisors mentally and physically to respond to crisis and manageaftermath • Understand complex set of varying state gun laws and impact on employer weaponpolicies • Increase awareness of workplace violence and work toprevent • Recognize connection between workplace violence and domesticviolence

47. #9 Transit Connection: WorkplaceViolence What a TransitEmployer Should Do Ensure proper policies in place addressing workplace violence, visitors, weapons, domesticviolence Conduct audit to identify gaps in safety and security such as broken locks and securitysystems Institute controls and make it more difficult to accessworkplace Conduct thorough background screenings but be careful about ban the box/criminal historylaws Implement clear complaint procedure to reportincidents Communicate procedures to take in case of violence or activeshooter

48. #9 Transit Connection: WorkplaceViolence • What a Transit Employer Should Do • Provide workplace violence prevention training and drills including informationon • Safe spots to take duringincident • How to recognize sound of gunshots and react togunfire • Understand when and where to call911 • React to lawenforcement • Adopt survival mindset duringcrisis • Designate a team to respond to workplace violenceincidents • Develop emergency response plan to secure premises, contact police, notify employees and families, address media and providecounseling • Assemble crisis kits containing radios, floor plans, personnel lists,flashlights • Train supervisorsto recognize potential signs of a violent employee (i.e., paranoid,depressed)

49. Challenge #10: Diversity andInclusion • Goes Beyond TraditionalNotions • Race/color, sex, age, religion, national origin,disability • Gender identity/sexualorientation • Politicalaffiliation • Work experience • Learningstyle • Education • Family/caregiverstatus • Physicalcharacteristics • Pregnancy/lactation • Medical marijuanauser

50. Challenge #10: Diversity andInclusion • Studies have consistently shown that more diverse workplaces perform at a higher, more productive level than less diverse ones. • Benefits of Diversity in an Increasingly GlobalWorld • Obtain best talentpossible • Improve employee productivity andefficiency • EEO compliance/reduce legalclaims • Improved internal and publicimage/brand • Increased customerloyalty/engagement • Increasedsales/profits • Creativity, innovation and new ideas – viewpoints/perspectives • Opportunities for learning, growth, development,challenges • Increased adaptability/flexibility - changing marketplace/globalworld • Employee retention/less turnover, mutual understanding/respect • More civil workplace –fairness, decrease conflict and reducecomplaints