1. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® PCAHCR UNIQUE HR CHALLENGES PRESENTED BY THE MYSPACE.COM GENERATION OF WORKERS Lonnie Domonic Giamela Fisher and Phillips LLP (949) 851-2424 lgiamela@laborlawyers.com

2. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® Overview To Presentation Introduction To Generation Y Myths and Realities About Generation Y Emerging Legal Issues In The Generation Y Workforce Policies and Procedures To Review and Implement Questions and Answers Are Always Welcome! As An Introduction To Our Discussion, Let’s Enjoy A Breakfast Video

3. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ®

4. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® WHO IS GENERATION Y? Is this your faithful lawyer or your next “Cloutier?”

5. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® A. Individuals born between 1977 and 1995 1. Approximately 79.8 million Americans fall in this category 2. Also known as the “Millennial Generation,” the “Echo Boomers” or “Generation Next” 3. The primary theme of Generation Y is the balance of work and life, with the ability to still be recognized. II. Introduction To Generation Y

6. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® B. Differences between Generation X and Generation Y. 1. Generation Y is almost one-half Hispanic or Asian, with approximately 20% of Gen. Y having one foreign born parent. 2. Almost twice as many Generation Y employees still live at home compared to Generation X employees during the applicable time period. 3. Much less participation in retirement plans (approx. 31 percent of Gen. Y employees). Source: Employee Benefit News II. Introduction To Generation Y

7. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® C. Myths and Facts About Generation Y 1. Very smart; technologically savvy; predisposed to jump from job to job 2. “The most over-parented generation in American history” a.Dual-income families b.Divorces; single parents c. c. Over-compensation for “parent guilt” II. Introduction To Generation Y

8. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® D. High levels of built-in self-esteem 1. Pre-school song lyrics: “I am special, I am special, look at me, look at me...” [Sung to the tune of Frere Jacques] 2. Everyone’s a winner: “Trophies for everyone!” 3. No one’s a loser: “No more foot races on field day!” 4. Everyone’s an “honored” student: “All students are honored at East Elementary School!” II. Introduction To Generation Y

9. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® E. Characteristics 1. Marketing of self is more important than marketing of employer; (build the resume, not the employer); 2. Seek active v. passive involvement; 3. Work in teams and desire to have information now; 4. Feeling of entitlement; and 5. An ability to balance lifestyle and work. 6. Prefer to work for companies that facilitate some type of volunteerism II. Introduction To Generation Y

10. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® F. As children, Gen Y felt the sting of the employment-at- will doctrine in practice. It was their families and their friends’ families who were “down-sized,” “right-sized,” “RIF'ed” and “trimmed” in Corporate America’s quest for higher productivity. 1. Gen Y learned: “Don’t trust the company!” “Your employer doesn’t believe he owes you anything!” “There is no job security in staying with one company!” II. Introduction To Generation Y

11. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® POP QUIZ 1. What is the United States’ current unemployment rate? 2. What is the unemployment rate for individuals between the ages of 18-30, not in school? 3. What is the unemployment rate for individuals between the ages of 18-24, not in school? II. Introduction To Generation Y

12. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® What is the United States’ current unemployment rate? 9.9 % What is the unemployment rate for individuals between the ages of 18- 30, not in school? 18-20 % What is the unemployment rate for individuals between the ages of 18- 24, not in school? 52.2 % II. Introduction To Generation Y

14. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® III. Gen Y in today's workforce A. Their mindset 1. They crave mentoring; they value time with the boss; they want to help improve things. Yahoo reports 35% of Gen Y employees want to interact with their bosses “several times” a day. 2. They want autonomy in their work; they want to be able to try new things; they want to be treated as an individual; they want some authority. 3. They are the most highly educated and technologically savvy generation of workers yet. 4. They view themselves as one-person enterprises.

15. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® III. Gen Y in today's workforce B. The “Gen Y friendly” workplace 1. Offer collaborative relationships with the boss. Be prepared for “Why?” Don’t answer, “Because I said so.” Don’t answer, “Because we’ve always done it that way.” 2. Don’t expect much patience. Gen Y doesn’t want to hear, “Pay your dues” or “Wait your turn.” Don’t say, “In ten years, you can be where I am.” Gen Y isn’t much impressed with where you are after ten years.

16. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® III. Gen Y in today's workforce 3. You’d better be technologically up-to-date. Every Gen Y classroom since junior high school has been internet-connected. 4. Offer flexible schedules, career paths and compensation plans. This is not a “one size fits all” generation. 5. Must recognize this generation’s high expectations of recognition and reward from others with minimal effort on their part.

18. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® IV. The employment-at-will doctrine will be of little use or comfort to employers dealing with Gen Y employees A. They don’t expect or want to be with one employer for life even in this tough economy. B. They don’t believe they owe their employers loyalty; they don’t believe employers will be loyal to them C. They believe their education, their work experience and the knowledge they can carry with them belongs to them and is their personal ticket to career advancement

19. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® IV. The employment-at-will doctrine will be of little use or comfort to employers dealing with Gen Y employees D.Just compare slogans from the 1960’s to those of the 1990’s and 2000’s 1. “Just Do It” vs. “We never forget who we are working for” 2. “Live For Today” and “Carpe Diem” vs. “We love to fly and it shows.” E.33 percent of U.S. organizations lose 10-25 percent of their new hires within the first year while 11 percent lose up to half.

20. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® IV. The employment-at-will doctrine will be of little use or comfort to employers dealing with Gen Y employees F.What are the risks and pitfalls of using myspace, facebook and other social networking sites to do “research” on applicants or employees? 1.No law prohibits you from doing so. 2.Can have potential discrimination, harassment and invasion of privacy claims depending on how you look it. (e.g. disability, medical condition, etc). 3.You can terminate based on information unless you are using unlawful or invasion of privacy means. (is the information accurate/defamation?).

21. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ®

22. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ®

23. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® IV. The employment-at-will doctrine will be of little use or comfort to employers dealing with Gen Y employees What are the types of claims that Gen Y employees are bringing in increasing amounts? Labor Code Section 970 claims for movement from prior school or work; Wage/hour complaints for overtime and failure to pay guaranteed bonuses; Class action meal and rest period violations because Generation Y employees tend to work through lunch (both blue and white collar); and Breach of contract claims since specialized employees are frequently provided terms of contract. (e.g “justifiable cause”)

24. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® IV. The employment-at-will doctrine will be of little use or comfort to employers dealing with Gen Y employees From a legal standpoint, what can employers do to hire good Generation Y Employees and still retain their rights? 1.Condition annual bonuses on being with the company on a specific date after the bonus period. 2.Comprehensive meal and rest period policies and ensure enforcement. 3.Tuition benefits on a “pro-rata basis.” 4.At-will policy unless exceptional circumstances warrant. 5.Background checks following prior authorization (both conventional and non-conventional).

25. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ®

26. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® V. The law of unfair trade practices and the rise of individual employment contracts A. Generally, the law disfavors agreements restricting or interfering with the free movement of employees from one job to another 1. Employees are being provided access to customer lists, marketing plans, vendor lists, pricing information, copyrighted information, and intellectual property without appropriate safeguards being put in place. 2. Remember that employees not only have storage in a microvault, they also have it in their brains and are more than willing to utilize it for personal advantage. 3. These positions include entry to mid-level admin, sales and high level executives.

27. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® V. The law of unfair trade practices and the rise of individual employment contracts B. But the law in most jurisdictions limits to some degree what exiting employees can lawfully do 1. Trade secrets legislation – Now so prevalent that nearly all states have enacted some version of the Uniform Trade Secrets Act. (employers may be plaintiffs too!) 2. Laws against “white collar theft” 3. Common law duty of loyalty 4. Computer piracy – The federal Computer Fraud and Abuse Act (“CFAA”)

28. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® V. The law of unfair trade practices and the rise of individual employment contracts C. Employers can contract for extra protection 1. No-raid/No-solicitation clauses [injunctions; damages] 2. Repayment clauses supported by promissory notes 3. Contractual protection of confidential information 4. Contractual duty of loyalty

29. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® V. The law of unfair trade practices and the rise of individual employment contracts D. Consider these practical pointers 1. With notice, monitor and conduct periodic surveillance of employees’ access and use of key “play book” databases (e.g., customer sales and marketing data, research and development) 2. For sales forces, divide the customer lists and password-protect them, so that each sales person has access only to information about the customers they service personally

30. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® V. The law of unfair trade practices and the rise of individual employment contracts 3. Develop a comprehensive exit interview procedure by which you retrieve all documents and electronic records containing the company’s confidential information and secure the exiting employee’s written assurance that everything has been turned in and electronic copies permanently erased a. Laptop computers b. Blackberries c. Cell phones d. Memory sticks e. Zip drives and disks f. Home computers (where home access to information is an issue)

31. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® V. The law of unfair trade practices and the rise of individual employment contracts 4. Maintain and utilize confidentiality and inventions agreements for all employees who have access to such information. A. The agreements should contain prior invention exhibits, termination certificate exhibits, non- disparagement, confidentiality and non- solicitation provisions. B. For example, it should be a two to three page agreement with a couple of stand-alone exhibit pages.

32. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® VI. The Increase Of Workplace Romances, and Their Subsequent Failures, Has Resulted In An Increase In Sexual Harassment Lawsuits.

33. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® VI.Sexual Harassment The best way to see how our workplace has changed is to analyze pop culture’s treatment of sex, sexual harassment and the romantic interaction between two people. Lucy and Ricky in the 1950’s sleeping in different beds to Carrie and Miranda’s antics in Sex and the City. Comparing the depiction of the 1950’s in the movie “Pleasantville” versus the Saturday Night Live skit.

34. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® VI.Workplace Romances – Careerbuilders.com February 2008 Study of 6700 individuals 44 % have been involved in a workplace romance;44 % have been involved in a workplace romance; 20% have been involved in more than two;20% have been involved in more than two; 29% have married their “workplace sweetheart”;29% have married their “workplace sweetheart”; –“Workplace sweetheart” v. “Workplace stalker” 27% of Generation Y employees have dated a supervisor;27% of Generation Y employees have dated a supervisor; Employees between 25-29 most likely to date co- worker;Employees between 25-29 most likely to date co- worker;

35. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® VI.Workplace Romances A. California law generally prohibits employers from regulating an employee’s conduct outside of the workplace unless the employer can demonstrate that it creates a conflict within the workplace. 1. Two employees dating vs. manager dating a subordinate. 2. No longer stereotypical boss/secretary relationship; it is those employees who are working long hours together and develop a relationship. 3. Can result in harassment, discrimination and retaliation claims

36. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® VI.Workplace Romances B. Statistics Regarding Generation Y 1. 42 percent of Generation Y employees have had a “dating relationship” with a current co-worker. 2. 41 percent of Generation Y employees think a workplace romance would jeopardize job security or advancement opportunities. 3. USA Today article found 70 percent of Generation Y support workplace romances.

37. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® VI.Workplace Romances C. Yet, not all relationships turned out right, so what should the employer do? 1. Stringent Policies Against Harassment and information regarding filing complaints. SHRM and CarrerJournal.com studies found that 75 percent of HR professionals do not have a policy on workplace romance. 2. Confirm that AB 1825 training has been provided by within the required time periods. 3. Consider “love contracts”

38. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® VII. Generation Y Is More Technologically Savvy Than You And Will Show It To You By The Way They Use Workplace Technology.

39. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® VII.Usage of Technology A. Generation Y Employees utilize numerous web- sites, using an employer-issued computer, for various purposes. 1. A 2004 study conducted by Yahoo indicated that 68 percent of the American workplace either intentionally or unintentionally visited a pornographic web-site while at work. 2. Personal and professional networking sites such as myspace.com, facebook, linkedin and others.

40. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® VII.Usage of Technology B.Generation Y Employees utilize numerous web-sites, using an employer-issued computer, for various purposes. (cont.) 1.Others may check the status of their fantasy football teams, the news or any number of non-work related sites. (between 45 minutes to 2 hours a day) 2.Just as bad as visiting the site is the content that may be published in a chat room, message board or blog. 3.In total, almost seventy percent of Generation Y employees admit to accessing the internet for non-work purposes, making personal calls at work and sending personal messages and computer e-mail accounts.

41. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® VII.Usage of Technology C.Employers have responded by maintaining comprehensive computer use, anti-harassment and searches and inspections policies that will maximize their rights. 1.Prohibit display, viewing, transmission of content 2. Prohibit or restrict publishing of real-time data or entry into rooms (e.g. instant messenger). 3. AAA recently fired 27 workers for messages posted on myspace social networking site during work hours regarding co-workers’ sexual orientation, weight and discussion of slowing down response time.

42. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® VII.Usage of Technology D. Employers have responded by maintaining comprehensive computer use, anti-harassment and searches and inspections policies that will maximize their rights. 4. In Arizona, a sheriff’s department fired a 26 year old deputy for maintaining a myspace page that had a picture of him with his sheriff’s shirt and no pants and listing his interests as “breasts, swimming naked and drinking heavily.” 5. Las Vegas pro-tem judge, who was a criminal attorney, fired for listing his desire to “breaking his foot off in a prosecutor’s ass.”

43. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® VIII. The Generation Y Workforce Has The Most Diverse Portfolio Of Accommodations and Leave Requests

44. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® VIII.Leave Requests A. The increased size and backgrounds of the Generation Y workforce will lead to an increased usage of various types of leaves. 1. Medical leaves related to pregnancy based on the emphasis on starting a family at a younger age. 2. Military leave based upon Generation Y comprising a super majority of those individuals serving long- term tours of duty abroad. 3. Increased number of FMLA/CFRA leaves to care for parents in baby-boomer generation.

45. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® VIII.Leave Requests B. What can an employer do in response? 1. Ensure that handbook contains comprehensive FMLA/CFRA policies (should be pages long). 2. Review internal military leave policy and procedures to ensure that HR professionals know rules and requirements regarding providing leave and transitioning employees back from leave. (beware, regulations are about 90 pages long). 3. To limit loss of productivity, review options of telecommuting for employees on bonding leave.

46. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® VIII.Leave Requests C. Employers will also find Generation Y employees tend to abuse leave policies more 1. Phoneyexcuses.com 2. myexcusedabsence.com 3. “For as low as $14.95, we can provide you with fake doctor notes, jury notes, and fake funeral notices.”

47. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® What To Do Now? “Keep HR Neat!” Review and update of four central policies (Anti- harassment, cellphone/computer, EEO, meal and rest) Ensure Compliance With AB 1825 By Providing Harassment Prevention Training To Managers; Apply confidentiality agreements, love contracts, comprehensive drug policies and more extensive computer use policies; and Take appropriate steps to properly transition Generation Y employees in and out of the workplace.

48. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® CONCLUSION The economy coupled with the unique HR challenges presented by this generation of workers emphasizes the need to focus on four key components of preventative practice: – HR Professionals only like to eat ripe bananas. – The employee handbook should be used for something more than the wobbly table leg. Update it annually. – HR Professionals should look at the groom when the bride walks down the aisle. – Stop the snowball before it becomes an avalanche. Invest in preventative practices.

49. Fisher & Phillips LLP ATTORNEYS AT LAW Solutions at Work ® PCAHCR UNIQUE HR CHALLENGES PRESENTED BY THE MYSPACE.COM GENERATION OF WORKERS Lonnie Domonic Giamela Fisher and Phillips LLP (949) 851-2424 lgiamela@laborlawyers.com