July 9, 2009 11:00 AM EST

1. New Legislation & Its Impact on Your Selection Process: New Rules Under the Obama Administration July 9, 2009 11:00 AM EST

2. Presenters Kevin Klinvex, Co-founder of Select International Josh Ulman, Managing Principal, Ulman Public Policy & Federal Regulations • D.C. based public policy strategist and lobbyist • Over a decade of experience assisting employers, employer associations and governments with policy strategies and advocacy on workforce and immigration related issues • Frequently speaks to associations on workforce policy issue • Pioneer in talent strategy and assessment technology • Co-authored the book, Hiring Great People • Member of SIOP, SHRM, RPOA, HROA, and RPO Alliance • Frequent speaker at national conferences on talent strategy and RPO • Consults internationally on hiring and retaining talent

3. Talent strategy programs for becoming a Talent Organization • EEO and OFCCP strategy • Testing, assessment, interviewing programs • Company-wide programs for finding, hiring, and retaining talent

4. Ulman Public Policy & Federal Relations • From complex lobbying to simply providing timely and relevant Washington updates and insights. • Services include: • Strategic advice for advancing specific legislative and regulatory objectives • Direct lobbying of Congress and federal agencies • Preparing and presenting testimony and regulatory comments

5. 2009 Threat Matrix • What will get attention from Congress this year? • Employee Free Choice Act • Equal Pay Act • Paycheck Fairness Act • Healthy Families Act • Employment Non-Discrimination Act • OSHA

6. Polling Question 1 • What legislation are you most interested in/concerned about? (only choose one) • Employee Free Choice Act • Equal Pay Act • Paycheck Fairness Act • Healthy Families Act • Employment Non-Discrimination Act • OSHA

7. Employee Free Choice Act

8. Organized labor’s top legislative priority Dramatic change to NLRA Majority card signing results in bargaining unit certification by NLRB Union can make multiple attempts at signings New union can require bargaining to begin within 10 days of certification Mediation can be requested after 90 days Key Components of EFCA

9. Key Components of EFCA • Binding arbitration if an agreement is not reached in 30 days after mediation commences • Employees can lose their right to ratify the contract terms • Act provides for 3 times back pay for unlawful employment terminations during organizing • NLRB may impose a $20,000 penalty for each employer ULP during organizing • No increase in penalties for unions that engage in unfair labor practices

10. EFCA Current Status • March 1, 2007 passed the house 241 to 185 • June 26, 2007 voted to invoke cloture • Failed to pass during the 110th Congress: 60 votes were required for cloture. Actual vote was 51 to 48. • 111th Congress. Timeline unknown – supporters don’t seem to have the 60 votes.

11. For those concerned about EFCA: • Understand the EFCA • Understand the ramifications of a union to your organization and to your employees • Become a Talent Organization: • Create an environment where a union is not needed and not wanted • Build a workforce that is “company proud” verses “union proud” • Institute lawful union avoidance measures • Communicate “your side of the story” to your employees • Assess your workforce to determine if you are vulnerable to a union organizing • Train your managers and supervisors • Look at your selection procedures

12. Talent Management Index • Work Culture • Worker’s feel valued. Local leadership and HR managers are champions of a positive work culture. Leaders are held accountable for retention. • 1 – Long Way To Go 2- Almost There 3 – There 4 – Couldn’t Be Better • 2.Community Reputation • Clearly employer of choice. Highly involved in the community. Current employees are a great source of positive PR. • 1 – Long Way To Go 2- Almost There 3 – There 4 – Couldn’t Be Better • 3.Talent Philosophy • Executive leadership is educated about meta-trends and their impact on talent. Leadership supports vision for becoming a “talent organization.” (e.g., recruiting culture, retention accountability, diversity sourcing, Generation-Y-centric recruiting) • 1 – Long Way To Go 2- Almost There 3 – There 4 – Couldn’t Be Better • 4.Legal Compliance • Well researched, and validated hiring process. Characteristics include OFCCP compliance, job analysis, criterion related validity study, structured, behavioral interviewing and implementation consistency across all facilities. Maintains proper legal documentation. • 1 – Long Way To Go 2- Almost There 3 – There 4 – Couldn’t Be Better

13. Talent Management Index 5.Available Talent Abundant: Big response to job ads. Actively using a company career portal to promote jobs to internal and external candidates. Data repository of desirable active and passive job candidates. Many qualified candidates. High selection ratios. Being able to process the volume is key. 1 – Long Way To Go 2- Almost There 3 – There 4 – Couldn’t Be Better 6.Competition No direct competition for your candidates. Your people do not leave for other opportunities. 1 – Long Way To Go 2- Almost There 3 – There 4 – Couldn’t Be Better 7.Retention Retention is a top priority with clear steps taken to keep good people. HR, managers, supervisors are held accountable for retention. Candidate motivation is thoroughly evaluated in the hiring process. 1 – Long Way To Go 2- Almost There 3 – There 4 – Couldn’t Be Better

14. Polling Question 2 • Overall, how would you rate your organization? (only choose one) • Long Way to Go • Almost There • There • Couldn’t be better

15. Equal Pay Act of 1963 • Employee does not need to prove discriminatory intent, unlike LLFPA • Focus is on disparity in pay for similar work • Do not need to file with the EEOC • Claimants have 2 years to file • Possibly expanded under the Paycheck Fairness Act

16. The Paycheck Fairness Act • Introduced January 2009 by then-Senator Hillary Clinton and Rep. Rosa DeLauro to strengthen the Equal Pay Act of 1963. • Proponents point to studies showing women earn 73 cents for every dollar earned by men. National Women’s Law Center • Passed by the HOR on January 9, 2009

17. The Paycheck Fairness Act • PFA will amend the Equal Pay Act • Significantly limits “bona fide factor other than sex” defense • Broadens anti-retaliation provisions of FLSA • Enhanced damages – uncapped compensatory and punitive damages • More lenient class action procedures

18. Possible Unintended Outcomes of the Paycheck Fairness Act • Compliance may take priority over reward programs • A potential win for trial attorneys: • Elimination of limits on punitive and compensatory damage, without requiring proof of intent to discriminate. • Workers are automatically made members of a class action suit, unless they opt out.

19. Employers Response to New & Proposed Pay Legislation • Compensation review • Revise record retention practices • Develop objective criteria for compensation decisions • Train managers and supervisors • Be careful with complicated reward systems

20. Healthy Families Act • Introduced May 18 in House • Priority for Senator Kennedy and the issue highlighted by the First Lady • Requires public or private employers with 15 or more employees to use an accrual system where workers earn one hour of leave for every 30 hours worked, up to a maximum of 56 hours (7 days) to care for themselves and their family’s medical needs

21. Employment Non-Discrimination Act • Prohibits discrimination in employment on the basis of an individual’s sexual orientation • Bars discrimination based on actual or perceived sexual orientation • Exempts religious organizations as defined under Title VII • No data collection or disparate impact claims

22. DOL Enforcement – Office of the Solicitor • Important role played by the Solicitor in all DOL enforcement and policy/regulatory development • M. Patricia Smith as nominee for Solicitor of Labor • Intent to nominate announced on 3/19; Senate confirmation hearing on 5/7: • Smith testified that the solicitor’s office will provide “full backing” to DOL enforcement agencies, and she will focus on “proactive enforcement”

23. DOL Enforcement – Office of the Solicitor • “New York Wage Watch” Initiative • Initiative to work with unions and community groups to monitor and raise awareness of employers who commit “wage theft” (failure to pay wages or overtime, tip stealing, etc.) • These groups can make enforcement referrals • Trade associations express concern with this effort to “sanction” community groups and unions to enforce New York labor laws (“an unprecedented and unwarranted intrusion on New York’s employer community”)

24. D OL Enforcement – FY 2010 Budget Request • DOL will shift $4.4 million from the Office of Labor/Management Standards and shift these resources to WHD, OFCCP and OSHA • OSHA: FY 2010 budget request: $564 million, an increase of $51 million (10%) over FY 2009 • Plans to hire 160 enforcement staff

25. D OL Enforcement – FY 2010 Budget Request • WHD: FY 2010 budget request $228 million, an increase of $35 million over FY 2009 • Funding to hire 200-250 investigators (including Stimulus Act funding) • OFCCP: Budget increase to hire 213 new employees

26. Pending Regulations • ADA Amendments Act • Genetic Information Nondiscrimination Act (compliance require November 21) • E-Verify for Government Contractors (Sept. 8) • Executive Orders for Government Contractors • Posting • Union Neutrality • Project Labor Agreements • Service Contract Act

27. Post-Hire Environment • Climate Surveys • Leadership Training • Safe Work Environment • Competitive Pay & Benefits • Career Planning

30. Summary A New Era: • Must be aware of new statutes • Use selection and assessment to prevent potential issues before they occur • Review policies & make necessary revisions to current procedures • Provide training for all those affected by statutes

31. Questions?Thank You for Attending! If you have any questions or would like more information about the topics discussed in today’s presentation, please contact Select International, Inc. at (800) 786-8595 or visit us on the web at www.selectinternational.com