SDEA May Newsletter

transcript

hr consulting training hanDBooKs auDits surVEYs coMPEnsation laBor nEgotiations

MAY 2010

>New Partners: SDEA & G.S. Levine Insurance Services

>California Legislation

>New CA Labor Commissioner Opinion Issued On Use Of Unpaid Interns

>Employing Minors

>Plus: New Law Extends Cobra Subsidy Yet Again& More...

888.625.SDEA888.625.SDEA

COLUMNISTS

Jennifer Jacobus, PHR-CA Jessica Zaldivar, PHR

SDEA PrESIDENT

Ed Fairhurst

SDEA BOArD OF DIrECTOrS

Rufino AutusAutus Financial Group

Terry Elrod

Juli JacobsonSan Diego Blood Bank

Stacey McKibbenActionCOACH

Melanie PotterWalter Anderson Nursery

Mike ScaccoALSCO, Inc.

Andy SilvermanCRES Insurance

Darby VorcePacific Safety Council

SDEA Counsel

Mike DalyDaly Law Firm

Honorary Life MemberTom Murch

DESIGNwww.ChabotDesigns.com

ADVErTISING AND ArTICLE SUBMISSION INFO

This newsletter is published monthly by the San Diego Employers Association.

We welcome the submission of articles by our members on topics of interest related to HR. Date for submission of materials and advertising is the 15th of the month prior to publication.

If you are interested in submitting an article please email it to: jjacobus@sdea.com.

If you are interested in advertising rates please send an email to: mblackford@sdea.com.

SDEA is a not-for-profit employer’s association that pro-vides HR advice and consulting to its members in an ef-fort to promote and maintain employer/employee rela-tionships. We are not attorneys and do not render legal advice. Please contact your company’s legal counsel if you need legal advice on any issue. If you do not have an attorney with employment and/or labor relations ex-perience, we would be happy to provide you with refer-rals.

888.625.733212255 PArkwAY CENTrE Dr. POwAY, CA 92064

IN THIS MONTH05.2010

>FEATUrES

3 cannon and Wendt to Pay $100K to settle EEoc national origin Discrimination/retaliation suit

6 new ca labor commissioner opinion issued on use of unpaid interns

6 new law Extends cobra subsidy Yet again

7 california legislation

8 Employing Minors

8 DlsE Publishes guidelines on salary Deductions

>DEPArTMENTS

4 sDEa training

7 Presidents Message

9 group Purchasing organization

9 hr strange But true

NEw PArTNErS: SDEA & G.S. LEVINE INSUrANCE SErVICESpg. 2

www.sdea.com • 888.625.7332 • San Diego Employers Association 1

2 San Diego Employers Association • 888.625.7332 • www.sdea.com

Poway, CA (April 26, 2010) – With the continued growth of internet content, getting accurate information from “the expert” is more important than ever. Employers can easily get lost in the sea of information; not knowing if the Blog they just read is fact, opinion, interpretation or outright fiction. The team at the San Diego Employers Association has been known locally as the resident experts for Human Resources policies, best practices and facts. In this new age the San Diego Employers Association is looking to be more to their members. As a result, they have recently partnered with G.S. Levine Insurance Services to expand their database of local experts to provide information to local businesses. This partnership is designed to provide San Diego Employers Association members with direct access to San Diego’s community focused premier insurance agency. When San Diego Employers Association members need the facts about insurances, coverage, and costs; G.S. Levine Insurance Services will be available to help them.

G.S. Levine Insurance Services, Inc. was established in 1987. They provide insurance and risk management solutions for Corporate Programs, Small or Family-Owned Businesses, Employee Benefits & Financial Services Planning & Administration and VIP Home, Auto and Life protection. The San Diego Business Journal ranks G.S. Levine Insurance Services, Inc. the 5th largest insurance agency in San Diego County and the 3rd largest locally owned independent agency in San Diego County.

“We spent several months researching local insurance brokers. While there are many great organizations out there, G.S. Levine Insurance Services spoke to us. We share common values. G.S. Levine will be there for our members. In interacting with their team, the commitment to their clients is clear and the organizations overwhelming dedication to the San Diego community is inspiring” said Ed Fairhurst, President of the San Diego Employers Association.

The San Diego Employers Association members are already reaping the rewards of this new found partnership. With Health Care Reform just signed on March 23rd, employers were left to figure out what they have to do to comply. The San Diego Employers Association worked with G.S. Levine Insurance to present “It’s the Law: Health Care Reform” on April 20th. At this event, attorneys of Paul, Plevin, Sullivan and Connaughton LLP and a representative of Blue Shield of California told employers what they needed to know about this new legislation. G.S. Levine Insurance Services wanted to make sure that their

clients and the San Diego Employers Association members were educated about their responsibilities. This event gave over 125 employers the essential information to appropriately plan for upcoming compliance deadlines.

“We are so excited about our relationship with G.S. Levine Insurance Services” said Fairhurst. “Our members are lucky to have the direct access to the G.S. Levine team. I know that our members will benefit from the new relationship over and over.”

For more information regarding G.S. Levine Insurance Services, contact their office at (800) 451-0517 or go online www.gslevine.com.

> NEw PArTNErS SAN DIEGO EMPLOYErS ASSOCIATION AND G.S. LEVINE INSUrANCE SErVICESPress Release by SDEA

Did you miss SDEA’s

?HEALTH CARE HEALTH CARE

reform

it’s the law:

Some changes are effective immediately (March 30, 2010.)

Some changes are effective in 6 months (October 1, 2010.)

Then, there are more changes for 2011, 2012, 2013 & 2014!

Find out what you missed!

To order your video simply go to www.SDEA.com or by calling 858-679-7332.

It’s the Law: Health Care Reform VideoOnly $39.95

Includes Shipping & Handling & PowerPoint Pres.

PHOENIX -- The U.S. Equal Employment Opportunity Commission announced today that it has settled a national origin discrimination and retaliation lawsuit against Cannon & Wendt Electric Co., Inc., one of the oldest and largest electrical contractors operating in Phoenix, Ariz., for $100,000 for Victor Cortez and a comprehensive consent decree, signed by Federal Judge Earl H. Carroll.

The lawsuit was filed in U.S. District Court for the District of Arizona in Phoenix, accusing Cannon & Wendt Electric Co., Inc. of discriminating against Victor Cortez when it subjected him to racist statements and then retaliated against him by terminating him after he complained about the unlawful discrimination.

According to the EEOC’s suit, EEOC v. Cannon & Wendt Electric, Co., Inc., CV-07-1710 PHX/EHC, employee Victor Cortez was unlawfully harassed because of his national origin by his immediate supervisor, Mark Ghose. The harassment included comments by Ghose, such as “I hate all Mexicans,” “they are worthless,” and “I hate Mexican music.” It was also alleged that Ghose openly stated his belief that Cortez was “useless” and he wanted to “get rid of him.” The EEOC also alleged that when Cortez complained to Cannon & Wendt’s then owner, Albert Wendt, Wendt failed to take any action except to ask “so, what do you want me to do about it?” The national origin harassment continued after Cortez’s complaints. Soon after he complained about the unlawful discrimination, Cannon & Wendt fired Cortez.

The EEOC obtained $100,000 for Cortez as damages for lost wages and benefits as well as compensation for the emotional distress. By entering into the consent decree, Cannon & Wendt agreed also to give Cortez an apology; subject Ghose to certain training; an injunction against national origin harassment and retaliation; reporting to the EEOC; the posting and distribution of a notice; change its anti-discrimination policies; and conduct extensive training for its supervisory and managerial workforce over the next three years.

Mary Jo O’Neill, regional attorney for the Phoenix District Office, said, “Each of the statutes that the EEOC enforces contain a

specific prohibition against retaliating against any employee or applicant who opposes discrimination internally or files a charge of discrimination with a state or federal agency. Because there is a significant imbalance of power between employee and employer, this office will continue to vigorously enforce the statutes’ anti-retaliation provisions through its investigations and litigation. In Victor Cortez’s case, we are satisfied that he has been compensated for the egregious manner in which he was unlawfully treated.”

Janet Elizondo, acting director for the Phoenix District Office, said, “Title VII provides that employees, including Victor Cortez, are entitled to work and keep their dignity. No employee should ever have to sacrifice his or her identity in order to keep a job. This employer not only ignored Mr. Cortez’s rights to be free from discrimination, but also fired him because he complained about the unlawful discrimination. This is a particularly troubling case because the EEOC sued this particular employer for religious discrimination a few years ago. After being sued, most employers take their EEO obligations under the law seriously. It is troubling to the EEOC to see a repeat offender.”

EEOC Trial Attorney Veronica Molina said, “Cannon & Wendt’s treatment of Mr. Cortez was outrageous. If the company had not settled, this would have been a very good case for a punitive damages request from a jury.”

Cortez said, “I am very thankful to the EEOC for fighting for me. What happened to me was wrong. No one should have to experience what I did in order to support my family.”

> CANNON & wENDT TO PAY $100,000 TO SETTLE EEOC NATIONAL OrIGIN DISCrIMINATION / rETALIATION SUIT Compliments of the Newsroom

SDEA MAY TrAININGHR Overview May 4th, 20109am-4pm Presented by: Michelle Peard, SPHR Are you new to human resources? Did your company downsize and you inherited the HR responsibilities? This course is a MUST for you!

In this course you will learn major employment laws influencing personnel decisions, interviewing & hiring strategies, essentials to personnel files & record retention, an overview of employee benefits, the rules on independent contractors, and more.

SDEA Breakfast Brief: By Invitation Only: California’s ETP ProgramMay 11th, 2010 7:30am - 9:00am Presented by: Thomas D. Bright, President of Quality Training Systems

Join us to learn about California’s Employment Training Panel (ETP) and how your company can secure funds from the state to off-set the costs of training necessary to maintain high-performance workplaces. Registration for our Special May program is by Invitation Only! Please contact Mandy Blackford via e-mail at mblackford@sdea.com if you are interested in attending and did not get an invitation.

Investigations in the WorkplaceMay 12th, 20109am-12pm Presented by: Angela T. Mullins Associate at Paul, Plevin, Sullivan & Connaughton LLP

Did you know that in most lawsuits involving sexual harassing (or other forms of unlawful discrimination) the employer’s liability arises from how they handled the investigation? Was it done correctly? Was it done promptly? Are you conducting your workplace investigations to minimize your organization’s liability? This workshop covers addressing complaints, determining scope, interviewing, documenting, and presenting and evaluating findings to support informed decision-making.

Strategic Planning and Goal Setting May 18th, 2010 9am - 4pm Presented by: Lois Hall, President of Access to Leadership

Leaders and managers are responsible for formulating, articulating and communicating a compelling vision that people will aspire to and that will guide them to achieve results. This session introduces participants to long term planning, developing strategies to achieve the vision, empowering employees to act on the organizational vision, and recognize the importance of goal-alignment at all levels of the organization.

Updating Your Supervisory Skills May 19th, 2010 9am - 4pm Presented by: Dr. Lori Miller

Whether we like to admit it or not, our skills as supervisors can get worn down by the day-to-day grind of business as usual. Occasionally they need to review what it takes to be an effective, inspiring leader. Help them get motivated again and remember the joys and challenges inherent in the job. This hands-on workshop will help your supervisors lead, motivate and communicate more effectively.

HR Roundtable May 21st, 2010 11:30am - 1:30pm

Top 10 Wage and Hour Mistakes Presented by Wilson Turner Kosmo LLP See www.sdea.com for more information.

Conflict ManagementMay 25th, 2010 9am - 12pm Presented by Janis Whitaker, President of JP Whitaker & Associates

Congratulations! You are still in the race! The Human Race! We all have to deal with conflict, personality differences & lots of Stress. Avoiding conflict DOES NOT WORK. Find out your conflict management style. Learn strategies to use when you have a challenging situation or a difficult person to deal with. Get past challenges and into problem solving!

GO FROM CASH SLOW TO CASH FLOW

P r e s e n t s

TO BE COVERED:

I Like Your Style: How Your Personality Impacts Your Collection Rate

Matching the appropriate personality for the roles in your collections department!

Bill For Collection SuccessHow to recognize and eliminate ineffective

techniques that waste valuable time!

How To Recognize The “Pre-Bankrupt” Customer

Changes to implement to avoid aloss of dollars from a legal strategy!

Plus A Few More Suprises For You In This Interactive, Fun, Informative Session

Stop Sabatoging Your Collection Effects!:Your Version of Good Cop, Bad CopSales force verse credit department!

A FEW FACTS ABOUT LINDA HULLLinda Hull has 25 years of experience in the credit and collections industry.As CEO of ARMCO, she created proprietary tools and systems which are utilized by her international and national clients to create a faster and more effective process to collect receivables. Elected twice by her peers as the chairperson of the leisure furniture group, Linda was recognized by Credit Managers Associa-tion of Southern California for her leadership abilities.

Linda Hull, CEO,

of ARMCO is our

featured expert!

Questions?www.sdea.com888.625.7332info@sdea.com

Linda Hull, CEO,

of ARMCO is our

featured expert!

May 14th, 2010 9am - 12pm

A content rich session thatwill increase your collection

effectiveness!

At SDEA12255 Parkway

Centre DrivePoway, Ca 92064

WHO SHOULD ATTEND BESIDES CREDIT DEPARTMENT STAFF?• Entrepreneurs and Solopreneurs who are operating as their own credit department.

• Company executives who want to take their collections to the next level!• Collection managers who want to increase their cash flow!

Questions?www.sdea.com888.625.7332info@sdea.com

REGISTER TODAYwww.sdea.com or call 888.625.7332

On April 7, 2010, the California State Labor Commissioner issued a 17-page opinion letter explaining how her office will be addressing the growing use of unpaid interns by employers in California. This opinion comes within only a few weeks of the U.S. Department of Labor’s (DOL) announcement that the agency is stepping up its enforcement efforts against employers that are allegedly using unpaid interns to perform work that does not meet the requirements of the Fair Labor Standards Act.

The Opinion Letter confirms that California intends to follow the federal regulations with respect to this issue and that there is no basis in either statutory or case law to find that California has adopted any higher standard in making such determinations. Noting that the DOL, long ago, derived a six-factor test to be applied, the California Labor Commissioner found no justification for the state to continue to apply a unique 11-facotr test it had previously been using.

As one would suspect, this “new” Labor Commissioner interpretation is very narrow in its application of the specific facts of the case presented in the 33-page request letter that is posted along with the Opinion Letter at www.dir.gov/dlse_OpinionLetters.htm (2010.04.07). However, aside from the apparent adoption of the federal six-factor test, this Opinion Letter goes further in setting forth an interpretation of a particularly important one of the six factors. That factor is federal criteria number four which provides that “The employer derives no immediate advantage from the activities of trainees or students, and on occasion the employer’s operations may be actually impeded.”

The Labor Commissioner has determined that in making this required determination of “immediate advantage,” in otherwise bona fide internship programs, the employer may offset any advantage of minor or occasional “non-integral” business work being performed, with proof of increased overall costs related to the internship program. These “costs” include the costs of additional “substantiated supervision” and other “impediments to the employer’s operations in both time and economic costs.”

Again, employers are cautioned to note the very limited application of this newly-issued position of the California Labor Commissioner to employer’s use of any unpaid interns. It is strictly limited to cases in which there is a bona fide independently supervised, no-cost training program that is tied to formal education credits and in which the employers can show that the

> NEw CALIFOrNIA LABOr COMMISSIONEr OPINION ISSUED ON USE OF UNPAID INTErNSBy: Robert A. Jones, Ogletree, Deakins, Nash, Smoak & Stewart, P.C.

actual economic costs to them of providing these internships far outweighs any incidental perceived benefit the employer receives. Of course, the employer also must be able to show that it meets all the criteria set for the in the six-factor test.

It is important to note that while the DOL has not specifically stated that it intends to follow the same interpretation of the no “immediate advantage” factor that has been adopted by the California Labor Commissioner, there is support in both prior DOL Opinion Letters and federal case law for their interpretation.

>NEw LAw ExTENDS COBrA SUBSIDY YET AGAINBy: Lisa Frank and Brenda Casper, Paul, Plevin Sullivan and Connoughton

Late last week, President Obama signed legislation that extends

the eligibility period for the federal COBRA premium subsidy for

an additional two months, through May 31, 2010. Without this

extension, employees involuntarily terminated after March 31,

2010 would not have been eligible for the subsidy. Follow links to

see HR 4851 and relevant portions of Senate Amendment 3721.

Future extensions of the premium subsidy remain likely. Indeed,

Congress continues to consider legislation that will extend the

eligibility period through the end of 2010.

This E-Update was authored by Lisa Frank and Brenda Kasper.

For more information, please contact Ms. Frank, Ms. Kasper or

any other Paul, Plevin attorney by calling (619) 237-5200.

A couple of bills that SDEA will keep their eyes on in the near future and be sure to update our members on:

Employment Training Fund “Lock Box” Being Considered (AB 1804)California law specifies that moneys in the Employment Training Fund are generally to be used only for particular purposes relating to employment training, but it also authorizes these funds to be used for loans to the General Fund and other identified purposes. This bill would amend the Unemployment Insurance Code to prohibit Employment Training Funds to be used for any other purpose, including to shore up the General Fund.

Workplace Flexibility Act of 2009 Introduced (SB 1335)California law requires, with very narrow exceptions, that employers pay overtime for more than 8 hours worked in a day and more than 40 hours in a workweek. The California Labor Code (section 511) permits employees to adopt alternative workweek schedules whereby they would be exempt from overtime if they worked more than 8 but less than 10 hours in a day, but the election process for such schedules is often very hard to satisfy (ex. requiring a 2/3 vote of employees in a work unit). This bill would relax these requirements by permitting an individual non-exempt employee to request an employee-selected flexible work schedule providing for workdays up to 10 hours per day within a 40-hour workweek, and would allow an employer to implement this schedule without an obligation to pay overtime compensation.

The Workplace Flexibility Act could open up a lot of doors for both employers and employees—stay tuned as SDEA follows the progress on this.

Thank you to the law firm, Wilson Turner Kosmo www.wilsonturnerkosmo.com for this Legislative Update.

> CALIFOrNIA LEGISLATIONBy: Wilson, Turner & Kosmo

>SDEA PrESIDENT’S MESSAGEDear Membership:

I’d like to thank you all for your continued support. You may have noticed that SDEA is spreading there wings into a broad range of subject matters that we hope will assist our membership in navigating the complex issues that are HR related and those that effect other departments in your organization.

SDEA was one of the first to bring you an overview on “Health Care Reform”. A rather sizable group heard from attorney’s Rich Paul and Melissa Listug Klick of Paul Plevin Sullivan and Connoughton and Don Sullivan of Blue Shield. As the Federal government formalizes new regulations, SDEA will be introducing a series of comprehensive seminars focusing on defining timelines, expected costs, and help in providing you the minutia to administer these new requirements.

Next up SDEA will venture into the realm of collections. On Friday, May 14, please help us get the word out that Linda Hull, a collections “Super Star”, will be addressing our membership in the art of getting paid for the products and services we provide. The title of this seminar is “From Cash Slow to Cash Flow”. I’ll be the guy in the front row.

Finally expect a call from our office over the coming months, we will be visiting each and every one of you. Our plan is to reintroduce ourselves and demonstrate the importance of having the San Diego Employers Association as a vital member of your team.

Thank you for your membership and continued support,

Ed Fairhurst, PresidentSan Diego Employers Association

CONNECTWITH SDEA

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www.sdea.com/blog

With all this rainy weather, it’s hard to imagine that summer is just around the corner. This is the time of year where many employers will be gearing up to hire teens who will be entering the job market--many for the first time.

If you are considering hiring a minor, whether it’s only for summer employment or anytime, there are some important rules that you should know about:

Almost all workers under the age of 18 are subject to California’s child labor laws. The California Labor Code states that a minor is any person under the age of 18 who is required to attend school. This definition excludes high school graduates under the age of 18, who are therefore not subject to the provision of the Education Code, i.e., work permits, work hour restrictions, and occupational requirements.

Employers must (when employing a minor) obtain the required work permits. Permits are required year-round, even when school is not in session. The required permits include both a Permit to Employ and Work – Form B1-4, and a Statement of Intent to Employ Minor and Request for Work Permit – Form B1-1. The school year in California begins each July 1 and ends each June 30.

Work permits are normally issued by the student’s school or, if school is not in session, by the local school district offices. The Division of Labor Standards Enforcement (DLSE) issues all entertainment industry permits.

The student’s parents or guardian must sign the Form B1-1, if the minor is not emancipated.

Make certain that both the hours t minor and while most minors are typically not permitted to work more than eight hours in a day, make sure applicable overtime rules are applied when overtime is worked.

Minor employees cannot drive automobiles on public highways or streets.

All employers who are subject to the aforementioned laws will be required to obtain a Permit to Employ a Minor as well as the Work Permit. The Permit to Employ will outline, in detail, the number of hours minors are permitted to work, exactly what hours they can work, and the restricted duties and occupations. As with many regulations pertaining to employment, there are always exceptions.

> EMPLOYING MINOrSBy Jennifer Jacobus, PHR-CA

One indicator for whether an employee has “exempt” status is that he or she is paid on a salary rather than hourly basis. Exempt employees are not entitled to overtime, meal or rest periods; and, as a general rule, they are not subject to reductions in salary for working less than a full work week. As a result, employers are often confused about how to respond when a salaried exempt employee misses a full or partial day’s work.

Occasionally, employees may be absent for significant hours of work due to personal or health reasons (other than disability). At first glance, the logical and seemingly fair resolution to this situation may appear to be that the employee should not be compensated for the hours which he or she didn’t work. However, because exempt employees are not paid on an hourly basis, failure to fully compensate such an employee due to absence equates to a reduction in salary. It is here where employers must tread lightly.

In California, an exempt employee’s salary may not be reduced for partial day absences, however, an employee’s paid-leave benefits may lawfully be reduced in partial-day increments. An impermissible deduction in salary could lead to the conclusion that an employee is not being paid on a salary basis, which may inadvertently destroy the employee’s exempt status. That employee can then seek to recover unpaid wages for meal, rest breaks or overtime. Thus, an employer may expose itself to more financial liability than if it had simply allowed the employee to take time off without consequence.

A November 28, 2009 opinion by California’s Division of Labor Standards Enforcement provides much needed guidance to employers as to how they should pay exempt employees who have not worked a full workweek. While the administrative opinion letter is not controlling legal authority, courts often treat DLSE opinions as persuasive authority in wage and hour cases.

The DLSE opinion set out answers to eight different examples that are meant to illustrate California’s exceptions to the general rule prohibiting deductions from a salaried employee’s wages. Notably, the DLSE made clear that an employer may deduct from an exempt employee’s vacation or sick leave time to account for partial or full day absences without tampering with the employee’s exempt status. Under certain circumstances, (full day absence and no vacation leave available) an employer may even deduct from the exempt employee’s salary.

According to the DLSE an exempt employee’s salary can not be deducted in less than full-day increments, although deductions

> DLSE PUBLISHES GUIDELINES ON SALArYDEDUCTIONSBy: Michael M. Daly

Continued on page 9>

from paid leave benefits are permissible for partial day absences. In other words, if an employee is absent for fewer than 8 hours, his or her salary cannot be reduced, but accrued vacation benefits maybe deducted. In the event an employee misses a full-day (the equivalent of 8 hours), the salary may be reduced if there is insufficient balance remaining in the employee’s sick and personal leave banks, and if the absence falls into one of the enumerated exceptions.

If you would like a free copy of the DLSE opinion letter or have any questions, please contact attorney Michael M. Daly at the Daly Law Firm at 619-525-7000 or by email at daly@mdalylaw.com.

SDEA Group Purchasing OrganizationUsing our Collective Purchasing Power to Save our Members Money

G.S. Levine Insurance Services, Inc. is SDEA’s Insurance Provider of Choice. They provide customer-centric risk management and insurance services. This means focusing on your individual needs and providing customized solutions. They have access to all major insurance companies through which they arrange the best value possible (price, coverage, and terms.) As a client of G.S. Levine you will come to expect the following:• Thorough and continuing analysis of your

insurance needs• Specifically designed protection program

optimized for you• Selection of the company or companies best

suited to your business• Presentation of a competitively priced proposal• Fair, prompt settlement of your claims

Contact G.S. Levine Insurance Services for more information!

Contact: Ross Afsahi, President

G.S. Levine Insurance Services, Inc. Direct Line: 858-523-7560 Ross@GSLevine.com

> Hr STrANGE BUT TrUE! HOw CAN YOU GET A BIGGEr PENSION? PrACTICE, PrACTICE, PrACTICECompliments of Business & Legal Resources (HR.BLR.COM)

The old joke—How do you get to Carnegie Hall? Practice, practice, practice—has a 2010 twist in South Korea. If you want a bigger pension from the government, practice, practice, practice—especially your sit spins and triple Lutz’s! Yes, several South Korean athletes earned gold, silver, and bronze at the Vancouver Winter Olympics, but they also earned big points (in the system for national pensions), as well as big bonuses, according to the Korea Times. The article says that the Korea Sports Promotion Foundation (KSPF) has a very complicated policy to award points to athletes toward pensions. When they earn participation points up to a certain point level (110), they are eligible for a full pension. After that, bonus points for winning international medals kick in.

“Once athletes surpass 110 points, they receive one-time bonuses [for international medals], dependant on what color of medal they win,” according to the article. Gold medalist scan earn 90 pension points per month for gold ($1,307 U.S./month); 30 points for silver ($697/month), and 20 points for bronze ($434/month). And these pensions are good for 60 years.

There is even more! In addition to the pension and the bonuses, the medal winners also receive cash from the government and from South Korean International Olympic Committee member, and former Samsung Chairman, Lee Kun-hee, the newspaper reports. So, for example, Vancouver gold medalists Lee Sang-hwa and Mo Tae-bum, long-track speed skaters, and Lee Jung-su, short–track speed skater, earned enough points for a monthly pension of $871 U.S. per month for their achievements. Obviously, the queen of bonuses in South Korea is women’s figure skating gold medalist Kim Yu-Na, whose multiple international medals have earned her lots of pension points, as well as mega endorsement—and singing—deals throughout Asia—to earn her a very comfortable future.

<Continued from page 8

SDEA May Newsletter

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