SAN DIEGO — If standing room only in a breakout session is any indication, human resources professionals attending CUNA's HR/TD Council Summit were very concerned about labor law. Nearly half of all 200 attendees crowded into a mini-workshop to hear Palo Alto, Calif. based attorney Mary LaVigne-Butler discuss current labor law issues. The lawyer counsels $772 million Stanford Federal Credit Union, also based in Palo Alto.

LaVigne-Butler said misclassification of employees…determining whether they are exempt or non-exempt…has become a bigger concern for employers than discrimination issues. Outside sales and computer professionals are the most common positions that present classification issues.

Government job classifications are grossly outdated, she said, which further complicates classification.

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"We're seeing this even more than discrimination cases right now, and I think it's because it's a big money maker for lawyers and government agencies," she said.

When determining whether or not an employee should be exempt, LaVigne-Butler advised human resources professionals to review the job description and determine which exemptions the position qualifies for under FLSA guidelines.

"If there is any question, err on the side of caution. If it's a close call, the judge will side with the employee," she said.

When asked about the classification of business development officers, a credit union's outside sales force, LaVigne-Butler said she has not studied the position enough to make a recommendation whether such employees should be exempt or non-exempt. She suggested credit unions ask others how they have classified business development employees, or carefully review the job description and make an honest assessment to determine whether or not the employee meets exempt requirements.

One attendee asked about the continued exempt status of loan officers, given the increased popularity of automated loan approval decision-making. Independent decision making ability is required in order to classify an employee as exempt.

"If that employee no longer has decision making ability, that employee is no longer exempt," LaVigne-Butler said.

With the 2006 election results giving Democrats control in congress, the attorney said to expect more employee-friendly legislation to be introduced before the 2008 presidential elections.

She predicted that a mandatory sick leave bill will be introduced, or even passed, before the 2008 elections. In the city of San Francisco, mandatory sick leave for employees was recently voted into law, awarding employees one hour of sick leave for every 30 worked, she said.

LaVigne-Butler also touched on a popular topic among summit goers: pandemic illness preparation. Fewer than half those in attendance raised their hands when asked if they had such a plan in their credit unions.

The lawyer said county health departments are a great source for pandemic preparation information, and predicted employers will become increasingly proactive in developing such plans.

"I wouldn't be surprised if, on a state level, we start seeing states mandate something like this," she said.

To keep abreast of labor law, LaVigne-Butler suggested human resources professionals join professional HR organizations like SHRM (Society for Human Resource Management). Credit unions should have a working relationship with a labor law attorney, just in case.

"Employment law is one of those areas where even just a little bit of knowledge is very helpful, because it can potentially prevent serious problems," she said. –[email protected]

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