Horizon Point Consulting

Category: General

Horizon Point writes about dozens of leadership, career, workplace, and workforce topics. Sometimes we write whatever we want. Read this category for general blogs from the HPC team.

  • Legal Update

    Legal Update

    We are only in May and already we have seen a number of employment law updates this year that have a huge impact on employers. Johnson, Paseur, & Medley, LLC shared the info in the images below with us:

     

    Fair Labor Standards Act

    The #1 change everyone is talking about and preparing for is the recent update to FLSA. Effective July 1, 2024, the salary threshold for a position to be eligible for exempt status will increase to $43,888 ($844 per week) and will increase again effective January 1, 2025 to $58,656 ($1,128 per week). This is almost a 65% increase in the threshold and will have a significant impact on many employers and employees. In addition, the highly comped threshold will increase from $132,964 to $151,164 effective January 1, 2025. 

    As the first deadline is quickly approaching, employers should be reviewing the current salaries of all exempt staff to determine how many employees this will impact and how to proceed with each position. Below are a few things to consider:

    • If an employee’s current salary is close to the new January 2025 threshold, would it be more beneficial to increase their salary to meet the new requirement. 
    • If an employee’s current salary is between the July 2024 and January 2025 thresholds, when should you move them to a non-exempt status and how far in advance should you communicate that change to the affected employees? 
    • For those employees that you will need to convert to non-exempt, is moving them to a salary non-exempt position the right option for your organization? This means that you guarantee an employee their full salary for hours worked up to 40, but would still be required to pay them overtime for hours worked in excess of 40 per work week. 
    • When do you need to have these converted employees set up in your timekeeping system so that they can begin to track their hours, and do you need to schedule training for these employees on how to use the timekeeping system? 
    • Does your organization have highly comped employees who will be impacted by the threshold increase and if so, what is the best way to navigate that impact? 
    • And the biggest question employers must ask is what financial impact will this change have on your organization and how can you mitigate that impact? 

    Also, employers need to be prepared for the long-term effects of the most recent FLSA changes, as it also includes an increase every three years, with the next increase going into effect July 1, 2027. The rate of change has not been determined and will be calculated every three years based on current calculation methods, so the full impact of future increases is still unknown. 

    To assist employers with understanding the new FLSA rules, the Department of Labor has scheduled two webinars that employers can sign up to attend for free. 

    Non-Compete Agreements

    In April, the Federal Trade Commission (FTC) issued a ruling banning most non-competes effective September 4, 2024. This ban includes non-competes for all employees, including senior executives. Current non-competes become null and void for most employees, with the exception of senior executives. If senior executives have a current non-compete, they can remain in force if those individuals earn at least $151,164 and are policy makers. However, effective September 4th, no new non-competes can be entered into with senior executives. 

    As part of this ruling, companies who have current non-competes in place will be required to notify all employees, excluding those current senior executives, that the non-competes will be null and void effective September 4, 2024. To aid in this effort, the FTC has provided sample language employers can use. 

    While employers can no longer utilize non-compete agreements, there are alternatives to help protect proprietary information, such as a non-disclosure agreement or confidentiality agreement. In addition, Federal Trade Laws provide a great deal of protection to employers. 

    EEOC Guidance on Harassment in the Workplace

    A few weeks ago, the EEOC released final guidance for employers on the legal standards and employer liability that apply to harassment claims. This new issuance was designed to update and consolidate the previous five guidance documents issued between 1987 and 1999. Since the last guidance was issued, there have been significant changes to discrimination laws, including the landmark decision in Bostock v. Clayton County (2020) in which the Supreme Court ruled that sexual orientation and gender identity were protected under Title VII. 

    The newly issued guidance includes a significant number of examples to illustrate various forms of harassment and discrimination, not only from coworkers, but also from vendors, customers, and other third parties. It also addresses the changes in the workforce, such as remote work, increased use and modernization of technology, and social media harassment. 

    In addition to these changes, there have been some significant guidance documents released recently, as well as a significant decision by the Supreme Court that impacts discrimination claims. 

    What to Watch For

    In addition to the updates above, there are a number of items that HR professionals and business leaders should keep on their radar this year. 

    If you like to learn about Employment Law, you might enjoy these blogs too:

  • Cicadas, Vision Boards & The Northern Lights

    Cicadas, Vision Boards & The Northern Lights

    On Saturdays, my husband and I often go hiking. On those walks, we talk about the future, both the distant and not so distant. We are quickly approaching being empty nesters which brings on a whole new meaning to what’s next? We talk about our almost grown kids, aging parents, careers, and what 10-years down the road looks like. It seems the years go much quicker with every passing trip around the sun. This past Saturday, as the cicadas sang all around us, I thought about where I was 17 years ago (the last time they visited, when I was a mom of toddlers) and where we’ll be the next time they arrive. One recent work meeting helped me visualize what might be up next!

    The HPC team enjoyed a fun afternoon of creating vision boards during our most recent quarterly planning meeting. We were led by Lana, creator of Money & Merlot. She walked us through creating a vision board & encouraged us to dream big while also making sure our dreams were attainable. We thought through what we’d like to accomplish this year, the next few years & 10 years and beyond. We included fun pictures of successful work, time with family and friends, future homes, pets, travel, and more.

    In all honesty, I do not see myself as super creative, but the process was simple & it was so fun to dream about the future! When you are in the thick of life (raising kids and paying bills), you sometimes forget about why you do all you do & the fact that you are slowly creating the life you’ve always dreamed of. My daughter is home from college for the summer, and we all spent some time searching for the Northern Lights this past weekend. I love having all my ducks home, even if I only have a few more years of having the whole family under my roof.  With all the hustle and bustle of life, I was reminded this Mother’s Day weekend that taking time to create a vision while enjoying the present is so important.

    What are your plans for the future? Check out How to Use a Vision Board to Achieve Your Goals from verywellmind.com to learn more about vision boarding and stay tuned for the HPC team’s vision board reveal, coming June 2024!

  • Open the Door to New Experiences

    Open the Door to New Experiences

    3,098.0 miles away

    Traveling 3,098.0 miles away from my home to live with the Ward family and shadow Mary Ila and HPC surely is a completely new experience for me. Since February and until May, I have been in the United States. This is the longest time I have ever been away from home and family.

    In one of the training sessions I got to shadow Horizon Point, we did an exercise where we selected two things that motivated us at work, and two others that did the complete opposite. The two that least motivated me from the list were “being in charge” and “being in a constantly changing environment.” 

    When I showed Mary Ila my choices she looked at me and laughed, “Well, you sure kinda threw yourself into a constantly changing environment when you came here!” I answered laughing as well, “I kinda had to do it”.

    Hello I Am Leaving My Comfort Zone name tag sticker to illustrate bravery and courage in going beyond the familiar to new experiences and growth

    It’s necessary

    I am a big routine/agenda kind of girl. I like having a constant routine because that way I feel productive, but I have learned over my 17 years of life that many times we have to step out of our comfort zone to learn and remember some lessons, adapt, and also open paths for opportunities. An important and true thing to bear in mind is that most of the time those lessons and opportunities will only come to us once we are willing to take the step and experience new unknown things. 

    I am so glad that I said yes to Mary Ila’s offer to live here and shadow her and her team because I have surely learned a lot. This experience I would have never been able to have if I stayed in Costa Rica waiting for college to start. Was I scared? Yeah. When I woke up after leaving my parents and brother at the airport, did I feel weird? Sure. Did I know what was going to happen next? Oh, a hundred percent no! However, has it been worth the new experience so far? Oh a hundred percent yes!

    Before I came to the United States, Mary Ila gave me the book Dare to Lead by Brené Brown. There is a quote that I think is all about new experiences. It speaks to the importance of opening the door to new things. “The courage to be vulnerable is not about winning or losing, it’s about the courage to show up when you can’t predict or control the outcome.” You just kinda have to do it!

  • Open the Door to Communication, Encouragement & Relationships

    Open the Door to Communication, Encouragement & Relationships

    We have an active group text at HPC. It is rare for a day to go by that I’m not receiving (or sending) a text from (or to) our team. The content varies – a funny meme, a word of encouragement, a link to an innovative podcast or book, or a picture of a new pet. The subject of the messages change daily, but the intent does not. The constant stream of communication conveys how we encourage one another, share ideas and help us become a stronger team.

    As with most success stories, our team dynamic starts from the top. Our President/CEO is a servant leader who actively listens, communicates and builds relationships. I’ve often said “she makes me want to be a better person.” She truly has a heart for others and opens her home, her door, her table to everyone. The best example I can think of when reflecting on opening the door to communication, encouragement & relationships is our monthly one-on-one meetings. Those conversations are full of encouragement and enlightenment, and they always leave me feeling ready to conquer the next month along with all the projects & challenges that go along with it.

    How do you improve your communication skills? Check out Lorrie’s tips here:

    Make it Effective … Improve Communication Within Your Organization

    To learn more about building relationships, read insights from Jillian’s blog:

    What’s Relationshipping, & How Do I Do It?

    How do you open the door to communication, encouragement and build relationships? Check out What We Do at HPC, and let us know how we can help!

  • Focus on What You Can Control: Financial Do’s and Don’ts During the Crisis

    Focus on What You Can Control: Financial Do’s and Don’ts During the Crisis

    Our friends at Warren Averett Asset Management shared with us some Do’s and Don’ts for financially weathering the current situation we are all facing:

     

     

    Dear Clients and Friends,

    COVID-19 is not the first crisis we have endured, and it will likely not be the last. While we have not experienced the particular pain points of this virus all at one time before—like schools shutting down and grocery stores running low on items—we do have experience over the past several decades with some other pretty nasty events, including 1970’s energy crisis, 1980’s Black Monday, and 1990’s savings and loan crisis, along with the recession during the early part of that decade. Then we feared Y2K, the 2000-2002 Dot-com bubble, September 11,, 2001 and the Great Recession of 2008.

    We have been through scary times before and have come out stronger on the other side. While past results are not indicative of future performance, we believe this situation will be no different. Of course, we will likely come out on the other side with a new “normal” just as we came out of 9/11 with new airline security rules. We can’t predict what changes will be made as a result of COVID-19, but we can look back together at the financial wisdom we have gained that applied to all of the crises mentioned above and apply them today.

    You can see from the chart below that during previous crises, the market saw large drops in most decades. However, these drops typically lasted seven months, with an average drop of 36% off the S&P 500. Yes, stock prices are currently down, but history shows they should come back up again in time. We don’t pretend to know the future, but the chart below provides some historical wisdom for what returns have looked like after a bear market.

     

    S&P 500 Total Returns from January 1926 – December 2019

     

    We recommend spending time during this season focusing on what you can control. Below we have listed a few items to consider:

    Dos:

    • Do accumulate an emergency fund of cash that equals at least 3 months of living expenses if you do not have these funds set aside already. We recommend keeping these emergency funds in an easily accessible, liquid place. While protecting your emergency funds for as long as you can is ideal, keeping a small amount tucked away can help you sleep better at night. Times like these illustrate why cash is king during emotional uncertainty.
    • Do continue to save towards your financial goals, like making sure you are deferring into your 401k. Your dollars will go further in your retirement fund if you continue to contribute as you normally do.
    • Do evaluate your risk tolerance and decide whether you are taking the appropriate amount of risk (the percentage you invest in stocks vs. percentage you invest in bonds) in your investment accounts.
    • Do keep a long-term investment mindset. Leave your money invested, as this strategy will serve you better in the long-run than storing it under your mattress.
    • Do make sure you have the appropriate amounts and types of medical, life, disability, and long- term care insurance. These policies are a critical foundation of your financial plan.
    • Do have a will, power of attorney, and advance healthcare directive that reflects your current family and financial situation and that accomplish your goals and wishes.
    • Lastly, if you love someone, and I mean anyone (your family, your friends, or a partner of any kind) DO make sure you give intentional thought to the things listed above—and DO them!

    Don’ts:

    • Don’t invest money you will need in the next 1-3 years in the market. Set it aside in a more liquid account.
    • Don’t watch too much of the financial news. Bad news sells, so keep that in mind.
    • Don’t look at your account daily. We recommend monitoring periodically—either once a quarter or even once a year.
    • Don’t make emotional changes. Pick a strategy and stick to it.
    • Don’t stop saving for your goals. When the market goes down, you are buying more shares with your contributions as a result of the drop. This will help once the market recovers.

     

    All of us are spending more time in the house right now. However, consider stepping away from your newsfeed for a while (that means your phone and the television). It will reduce your stress to balance the negative input from social media with positive input like family time, time outside in nice weather, a good book, or a funny movie. Remember, we are here to talk with you if you have questions or concerns. Reach out to us anytime. We’ll all get through this situation together.

     

    Past performance may not be indicative of future results. To the extent that a reader has any questions regarding the applicability of any specific content to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. A copy of Warren Averett’s current written disclosure Brochure discussing our advisory services and fees is available upon request.

    Learn more at www.WAasset.com