Smokers cost employers money, there’s no doubt about that. Some estimates say smokers cost about 15% more than nonsmokers. The U.S. Centers for Disease Control and Prevention estimates smoking costs the United States more than $193 billion every year, between medical expenses and losses in productivity.

Some employers are not putting up with it any longer. Last year, nationwide retailer Macy’s started charging employees who smoke $35 per month for health coverage. Smokers can have the cost deferred if they enroll in a free smoking cessation class. After six months, their progress is reviewed and if they’ve quit, great. If not—the surcharge starts again.

And Macy’s isn’t the only company to charge smokers a fee. PepsiCo and Gannett both charge smokers extra health insurance fees. But some go further. Union Pacific and Scotts Miracle-Gro, for example, will not even consider hiring smokers. The Cleveland Clinic requires all job candidates to have their blood tested for nicotine.

Starting in 2018, health reform legislation will require companies with health plans that significantly exceed the average to pay an additional federal tax. Many companies will have no choice than to do what’s necessary to cut healthcare costs—including reducing the number of smokers on the payroll.

Most employers have smokers on their staffs. And while most workplaces prohibit smoking indoors, smokers who light up only at home can still have a negative effect on a company. Employers may choose to encourage smokers to quit through positive methods, such as quit-smoking classes or cash incentives, or through punitive measures, such as fines and surcharges.

Or, the entire company could shift its entire focus to better health. Helping employees lose weight, increase their fitness levels and quit smoking can increase morale while lowering health insurance costs. By showing that they care about the health and well being of all employees, as well as their families, employers can affect real, lasting change.

The question remains: is it still better to hire the best possible candidate, even if he or she smokes?

Employee retention is an issue for every employer, at one time or another. For some, turnover is a constant problem. And it could be on the rise. After a few years of economic troubles, cutbacks and demands for more productivity, today’s workers are burned out.

A few recent surveys show some numbers that back up that remark:

• Fewer than one in three employees are engaged in their work.
• Only 45% of workers say they are “satisfied” with their jobs.
• Approximately 32% of employees hope to find a new job within the next year.

And just because employees are “satisfied,” it doesn’t necessarily mean they are happy. Besides costing you money, turnover affects morale and productivity. And even if your employees are staying put, if they’re not happy, they won’t be as productive.

Engaged employees are pleasant to be around. They treat customers and co-workers well, and excel in job performance. Engaged employees are not content with simply doing what’s expected—they’d rather go the extra mile so that the organization’s goals are met.

Creating a culture of engagement requires some work. Employers and managers in any business can improve employee engagement with these tips:

• Involve employees in decision-making, by keeping lines of communication open.
• Inspire trust by being truthful and transparent, taking blame for their mistakes and doing what they say they will do.
• Give employees the chance to learn new tasks, along with a path for advancement.
• Take the time to recognize employees’ efforts.

While no company will ever have 100% engaged and happy employees, most could use some improvement in this area. While these ideas won’t work miracles overnight, they will create a foundation for progress.

If you’re lucky, you have good employees, who are honest and hard working. They don’t steal from you and you can always count on them to tell the truth. Or can you? How do you know for sure if employees are hiding the truth or outright lying, unless you catch them in the act?

Here are some examples of less-than-honest behavior that almost always seem to come to light:

• An employee sees another worker taking office supplies home, but does nothing.
• An employee mistakenly breaks a piece of equipment, but he doesn’t admit it or bring it to your attention.
• An employee sends out a post on Twitter that contains incorrect information, realizes her mistake, but covers it up and doesn’t tell you.

When employees lie or hide the truth, does the problem lie with them or with you? Perhaps it’s a good time to take a long, hard look at your company, and ask a few questions:

• Why don’t your employees feel safe admitting mistakes or letting you know you’re being cheated?
• What is your company culture really like?
• How have these types of situations been handled before?
• Are employees in fear of retaliation, termination or ridicule?
• Have you demonstrated trust in your employees?
• Does management view these types of incidents as the cost of doing business, or as big problems?

If you can honestly say that your company has an open and respective culture, where errors are understood and employees are used to giving and receiving feedback, then these types of incidents might be more of an employee problem.

How would you handle each of the above employee scenarios? The first thing to do is to have a talk with your employee. Clarify what really happened and why she reacted the way she did. If no one was notified, why not? Did she not know the correct procedure? Was she afraid? Explain the acceptable behavior and ask for a commitment that she will follow procedures should another incident occur.

Company cultures are living things that need care and feeding. It’s not enough to simply establish a culture and expect everyone to follow and embrace it forever. Keep working on instituting mutual respect, tolerance and communication to prevent lies and secrets from harming over your company.

A worker fired from her job at a Christian university in Lakewood, Colo. has filed a lawsuit against her former employer. She claims she was let go after administrators asked if she were “living in sin” with her boyfriend.

The woman said she was “shocked” that the school was concerned enough about her personal life to fire her over it. After administrators refused to communicate with her about the issue, she decided to file the suit.

The suit states that an innocent incident of getting coffee with a married male coworker led to the plaintiff being questioned by a university vice president about an “alleged relationship” with the man, as well as questions about her personal life. She claims no relationship existed, but was told she had been seen “laughing and joking” with him. The vice president allegedly went on to say that the fired worker was a distraction to the coworker’s marriage, which would hinder her career at the university.

The university flatly denies the allegations, stating that she was let go “for purely business reasons because she wasn’t doing her job.”

Not so, says the lawsuit. It states that the plaintiff was also retaliated against for her medical problems. She suffered from various issues that required her to request leave under the Family Medical Leave Act. When she met with the human resources department, the director asked her questions directly related to her private life, including whether she lived with and was having sexual relations with her boyfriend. The director stated this would be “potential grounds for termination.”

The employee was approved for FMLA, which she claims is another reason for her dismissal. She also claims the university violated state law for terminating her for lawful activity off premises during nonworking hours (the “living in sin” part).

This could be an uphill battle for the plaintiff; the Supreme Court generally upholds religious institutions’ hiring and firing decisions, based on their beliefs. We’ll keep an eye on this case and report any progress.

Across the U.S., the economic downturn has been negatively affecting state and local law enforcement budgets. Police and sheriff’s departments have cut staff; jails are laying off guards and prisons are releasing prisoners early because of overcrowding.

For employers who are hiring workers, an increase in ex-convicts in the local population could mean a different type of job applicant. Perhaps this is a good time to review criminal background check procedures.

A variety of state laws make it difficult for regional and national employers to stay compliant, but smaller businesses need to be concerned only with their local and state laws, as well as Equal Employment Opportunity Commission (EEOC) guidelines, before deciding what is appropriate for their situation.

The EEOC’s concern is that criminal background checks have a disparate effect on minorities’ hiring history. According to the EEOC, studies show that “some employers make selection decisions based on names, arrest and conviction records…all of which may disparately impact people of color.”

The important thing is that employers are vigilant about doing pre-employment screening and background checks, and to conduct them fairly, as a higher number of unemployed, former convicted criminals are presumably looking for work. Establishing a justifiable business need is the first step. Obtaining applicants’ approval, per the Fair Credit Reporting Act, prior to conducting employee credit checks is also vital to staying within the letter of the law.

Balance your need to keep your other employees, customers and business safe from harm with the rights of your applicants, and exercise good judgment. Remember, 36 states hold employers liable for the negligent hiring of individuals with violent backgrounds.

You can be assured of compliance when you use a reputable, professional employee screening company, such as CriminalData.com. Our extensive experience, secure processes and excellent reputation for professional service mean you may screen prospective employees with confidence.

This week, the U.S. Equal Employment Opportunity Commission (EEOC) issued updated guidelines regarding employers’ use of arrest and conviction records in employment decisions. The ruling was made pursuant to Title VII of the Civil Rights Act of 1964.

The new guidance updates and clarifies the EEOC’s previous policy, in an effort to help job seekers, employees and employers. The report discusses how using criminal history reports could violate Title VII, how federal court decisions analyzing Title VI as applied to criminal records, compliance with other federal laws that restrict or prohibit employing individuals with certain criminal records, and the differences between treatment of arrest and conviction records, among other topics.

While little of the guidance document is new, it does consolidate a series of documents in one place. One HR group spokesperson said it does not appear “to impose a one-size fits-all set of rules” and seems to consider employers’ disparate needs and concerns when using criminal background checks for pre-employment screening.

However, there appear to be potential conflicts between this document and state laws that require criminal background checks in certain industries and positions.

Among the groups showing support for the new guidance include civil rights law groups. One issued a statement saying that it will “greatly reduce the misuse of criminal history background checks to deny employment to persons of color,” because the guidance strengthens enforcement efforts against employers who are not using criminal background checks properly.

A Q and A page on the EEOC’s Enforcement Guidance can be found here. It reinforces that Title VII does not prohibit employers from obtaining criminal background reports on job applicants.

California employment laws have long stated that employers must provide employees with a meal break. But the law was unclear regarding whether employees are prohibited from performing work during that time, or if they may work if they choose to.

A San Diego Superior Court decided that they may indeed engage in work during their meal breaks. The court ruled that employers fulfill their obligation when they give employees a 30 minute break and relieve them of all duties, give up control of their activities and when the employer gives a “reasonable opportunity to take an uninterrupted break, and does not impede or discourage them from doing so.”

If the employer does all that, and employees still want to work, they have the right to do so. The unanimous ruling was seen as a victory for employers. Another part of the decision specifies that employees must get one meal break for every 10 hours of work, rather than a break for every five hours, as some employee advocate groups had argued.

Employers will no longer be required to “babysit” employees, say some. As long as they make meal breaks available and encourage employees to take them, they are not liable for claims brought by employees that they didn’t receive them.

Employers are not allowed to apply pressure or provide incentives to work without breaks. And they must pay employees for any work performed. However, they are liable only for straight pay, not overtime pay—unless the extra 30 minutes puts the employee in an overtime situation.

The ruling came as a result of an eight-year legal battle against the company that owns Chili’s restaurants, for allegedly requiring employees to work through meal and rest breaks. Employees claimed that they were made to clock out for breaks, but to continue working through them.

As the economy recovers, more employers will be hiring to replace those workers they’ve been doing without. If you’re dipping a toe back into the hiring pool, here are some tips that can help you do it better.

An improving job market could mean employers will be competing for the most skilled and talented workers. This is where your networking skills come in. Talk to your contacts, whether in your industry or not, to get information on the hiring scene in your area. Who were the #2 and #3 candidates for the position just filled at a peer company? Who’s now hiring for similar jobs? Can you get any recommendations from those hiring managers? Are there state or local government agencies that have cut staff lately? Find out who’s been laid off.

What is the overriding skill set needed to succeed in your organization? If you’re in a technical business, you’ll need to focus on recruiting workers with the right technical expertise. If it’s a service business you’re hiring for, it doesn’t really matter where your recruits have worked before, if the have exceptional people skills. And an employee with drive, a great attitude and integrity can be an asset to nearly every type of business.

What about job-hoppers or career-switchers? Is that a sign of boredom or great flexibility? Individuals who like new challenges are natural learners. They catch on quickly to new tasks, and could be well suited to a health care or high-tech environment.

Once you hire highly skilled employees, let them do their jobs. Allow workers to collaborate with their peers. Give them challenges that require creativity and problem solving skills, and let them grow. Letting go like this can be tough for many managers. It’s a risk, for sure, and there will be some mistakes made along the way. But in the long term, employees who feel trusted and empowered are happier and more productive.

Cultivate a culture of open discussion and shared goals. Encourage employees to keep you informed of any problems they encounter. If you look at your job as a director of resources, you can help remove roadblocks and solve problems.

Hiring highly skilled workers and keeping them engaged will go along way to making your company more successful.

We’ve been talking lately about employee theft, and how it affects employers of all kinds. In this third article in our series, we look at what to do when you’re faced with this unfortunate situation.

The most sophisticated video camera systems won’t stop an employee from stealing. And unfortunately, the evidence they contain won’t always protect you from an unlawful termination suit. Even the most blatant thieves may try to protect themselves by bringing a lawsuit—and even if you win, you’ll still have to expend a great deal of time and effort.

You cannot avoid all the unpleasantries of terminating an employee, but if someone is stealing, you cannot let it continue, either. If you fear that employees are stealing from your business, keep the following dos and don’ts in mind:

• Before you take action, take the time to do a thorough investigation. Accusing an employee is a serious charge, and you’ll need to thoroughly document your case. So don’t fire someone in the heat of the moment.
• Do have at least two people involved in the investigation to avoid false accusations by the employee of framing for retaliation or bullying.
• When conducting your investigation, don’t resort to crime-movie tactics. By law, you cannot go through an employee’s personal belongings, or use a baby monitor to listen to their private conversations.
• Be careful of what you say. Stating a fact, such as “Steven stole $600 worth of merchandise,” can subject you to accusations of slander. Do state things in terms of opinion: “We have reason to believe that Steven may have taken the merchandise.” Even if it’s true that Steven stole the merchandise, you could still be sued.
• Be sure you can prove the reasons for termination. Do terminate for performance or failing to follow company procedures, instead of for theft that could possibly be explained by the employee—however weak the explanation may be.
• If an employee admits to theft, don’t terminate until you have obtained a written statement in his or her handwriting. If the employee wishes, do allow this to happen in private, to avoid any accusation of coercion.

Legal disclaimer:

The contents of this article are intended for general information only, and should not be relied upon as a substitute for obtaining professional legal advice applicable to your situation.

Last week, we reported on employee theft in retailing, and a recent report that stated that more losses occur due to employee theft than to than to shoplifters.

Any business is vulnerable to theft by employees, whether you’re selling widgets or washing machines. You don’t even have to be in the business of selling merchandise to be victimized by employees who steal.

Here are some examples of what dishonest employees may take out the door:

Trade Secrets: Employers who build successful businesses have done so because they do things a certain way, or offer a service or product that people want. If you’ve “built a better mousetrap” by instituting procedures or systems that work, your competition will likely want to know how you did it. What better way to find out than through an employee or former employee? And often, employees leave to start their own competing businesses, built on the successful model someone else worked hard to create.

Unearned pay: Employees with access to payroll systems can falsify work records to generate higher paychecks for themselves or their buddies.

Sensitive Data: Your company files are a treasure trove for identity thieves. Sensitive information like social security numbers, credit card numbers, birthdates and family information can help identity thieves access credit and wreck your or your employees’ finances.

Money: Countless businesses are victimized by employees—from unscrupulous bookkeepers to petty thieves—who skim cash out of the bank account or cash register. Watch for issues around drug or alcohol abuse, or complaints about not getting paid enough. If an employee’s lifestyle changes, with frequent purchases of expensive items or vacations, take a close look at your books. Be careful to conduct all due diligence before making any accusations.

Productivity: If your employees are average, they may be visiting social media sites or conducting personal business on the clock, causing you a loss of productivity.

Workplace theft is a serious problem for employers. The best guards against it are strong policies and procedures that are backed up by action. Stay on top of what’s going on in your business and immediately deal with any infractions of your theft policies. When other employees see theft is not tolerated, they’ll get the message.