H. Mark Adams, Editor; Jennifer L. Anderson and Jennifer Faroldi Kogos, Associate Editors
Jones Walker

Vol. 15, No. 10
January 2007

HR Trends

Employees worried about employer response to flu pandemic, survey shows. If a flu pandemic strikes, half of the employees surveyed by the Harvard School of Public Health believe their workplace would stay open even if public health officials recommended that some businesses in their community should shut down.

In the survey, 74 percent of employed people believe they could miss seven to 10 days of work without suffering serious financial harm, but the comfort level decreases when employees were asked if they could stay out of work longer. Fifty-seven percent said they would have serious problems if they had to miss a month of work, and 76 percent think they would suffer if they needed to stay away from work for three months.

The survey also showed that only 19 percent of working people were aware of any plan at their workplace to respond to a flu pandemic, and 22 percent were very or somewhat worried that their employer would make them go to work if they were sick. Just over one-third (35%) of workers said they think they would get paid if they stayed home from work because of the flu.

Report examines what makes entry-level employees effective. What makes your entry-level, low-income employees the most productive and satisfied with their jobs? A new analysis indicates that offering those employees at least some of the same perks that higher-level employees get can pay off for employers.

The Families and Work Institute has issued a report titled How Can Employers Increase Productivity & Retention of Entry-level, Hourly Employees? According to the analysis, when low-wage employees have access to jobs that provide employees with more responsibility, accountability, and support, it makes a bigger difference than when those kinds of support are provided to more advantaged employees.

Often, however, low-wage employees don't receive the same perks as those earning higher wages. For example, 39 percent of the low-wage employees were found to receive some amount of paid time off for illness, compared with 79 percent of their higher-income counterparts. Also, 45 percent of low-wage employees reported having a high level of on-the-job learning opportunities, compared with 64 percent of mid-wage employees and 81 percent of high-wage employees.

401(k) plans mark milestone. As the increasingly popular 401(k) retirement plan passes its 25th anniversary, a study shows that the defined contribution savings plans make up the nation's leading private retirement plan with 47 million active participants. That compares to 21 million who participate in private-sector defined benefit pensions.

The study by the Investment Company Institute shows that 401(k) plans held $2.4 trillion in assets in 2005, compared to $1.6 trillion in assets in all private-sector defined benefit pensions. Other findings include the following:

• While 401(k)s were first offered as supplements to traditional pensions, today 90 percent of 401(k) plans are the only retirement plan offered by employers.
• Mutual funds account for roughly half the assets in 401(k) plans.
• The Pension Protection Act, passed in August 2006, offers the potential to dramatically increase 401(k) participation.

Copyright 2007 M. Lee Smith Publishers LLC

LOUISIANA EMPLOYMENT LAW LETTER does not attempt to offer solutions to individual problems but rather to provide information about current developments in Louisiana employment law. Questions about individual problems should be addressed to the employment law attorney of your choice. The State Bar of Louisiana does not designate attorneys as board certified in labor law.