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Take that Vacation! Why Vacation Time is the Ultimate Productivity Hack
Taking a vacation is the ultimate hack to recharge both mind and body, fostering renewed creativity and productivity upon return. It’s a transformative pause that fuels personal growth and revitalizes work performance. However, according to a new Pew survey, only 46% of employees are utilizing all of their vacation time. Take that vacation!
By Heather Nezich, courtesy of SBAM-approved partner, ASE
Benefits of utilizing vacation time include:
Restoration of Mental and Physical Well-being
Vacation time offers a vital opportunity for employees to recharge both mentally and physically. Continuous engagement in work-related tasks without breaks can lead to burnout, heightened stress levels, and decreased job satisfaction. Taking time off allows employees to step away from the daily grind, promoting relaxation and stress reduction. Engaging in activities they enjoy, spending quality time with loved ones, or simply relaxing in a different environment can work wonders in rejuvenating their minds and bodies.
Enhancement of Creativity and Innovation
Stepping out of the routine work setting and exposing oneself to new experiences can significantly boost creativity and innovation. Traveling to new places, trying out different cuisines, or immersing in diverse cultures can broaden employees’ perspectives. This exposure can lead to fresh ideas, unique problem-solving approaches, and a renewed enthusiasm when they return to their roles. A well-rested and creatively inspired workforce contributes to a more dynamic and forward-thinking organization.
Strengthening Work Relationships
Vacations not only benefit employees individually but also play a pivotal role in strengthening work relationships. By taking time off, employees encourage collaboration and teamwork within their departments. Colleagues learn to depend on one another in their absence, fostering a sense of trust and interdependence. Moreover, sharing vacation experiences and stories can create bonding opportunities, facilitating a more supportive and cohesive work environment.
Prevention of Burnout
Burnout is a growing concern in today’s high-pressure work culture – especially with many remote employees working longer hours. Utilizing vacation time helps prevent burnout by allowing employees to detach from work-related stressors. A well-planned break provides the necessary distance to regain perspective and return to work with renewed energy and focus.
Increased Productivity and Efficiency
Contrary to the belief that taking time off hampers productivity, studies have shown that employees who utilize their vacation time are more likely to be productive and efficient. Regular breaks lead to improved concentration, enhanced decision-making, and increased overall job performance. When employees return from a vacation, they often display a higher level of engagement and commitment, which positively impacts their contributions to the organization.
The Organizational Benefits Too
Organizations that encourage and support employees in utilizing their vacation time reap substantial benefits. Reduced turnover rates, enhanced employee loyalty, and improved job satisfaction are just a few of the positive outcomes. Companies that prioritize employee well-being through a healthy work-life balance also tend to attract top talent in the industry, thereby bolstering their reputation and competitiveness.
Source: Axios
Big Changes for Companies Working With Independent Contractors
A new bill working its way through the Michigan House of Representatives seeks to drastically change the meaning of the term “independent contractor” and impose steep penalties on businesses that misclassify workers.
Note: SBAM’s advocacy team is actively engaged on this important issue. You can learn more here.
By Frank Mamat and Erik Bradberry
A new bill working its way through the Michigan House of Representatives seeks to drastically change the meaning of the term “independent contractor” and impose steep penalties on businesses that misclassify workers.
A New Definition of “Independent Contractor”
Countless Michigan companies, large and small, enlist the help of independent contractors to conduct business. Generally, an independent contractor is “one who, carrying on an independent business, contracts to do work without being subject to the right of control by the employer as to the method of work, but only as to the result to be accomplished.”[1]
House Bill 4390 would change that definition considerably. Under the new bill, an independent contractor is “an individual who performs work” and to whom the following three conditions apply:
- The individual is free from control and direction of the payer in connection with the performance of the work, both under a contract and in fact.
- The individual performs work that is outside the usual course of the payer’s business.
- The individual is engaged in an independently established trade, occupation, or business of the same work performed by the individual for the payer.
The new definition mirrors the “ABC Test,” which was popularized in California and contains three requirements: (1) that the worker is free from the control and direction of the hiring entity, both under contract and in fact; (2) that the worker performs work that is outside the usual course of the hiring entity’s business; and (3) that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.[2]
Like the ABC Test in California, if all three conditions defining an “independent contractor” under House Bill 4390 are not met, a company’s “independent contractor” could actually be its “employee.”
Severe Consequences for Misclassification
House Bill 4390 would prohibit employers from classifying an employee as an independent contractor. If a company were accused of misclassifying an employee as an independent contractor, the company—not the worker—would have the burden of proving that it did not improperly classify, report, or treat the employee as an independent contractor.
Employers that fail to carry that burden may find themselves ordered to pay wages to the employee, along with fringe benefits, a penalty matching the wages and fringe benefits due to the employee, exemplary damages of up to three times the amount of wages and fringe benefits due to the employee, and attorney fees.
Additionally, employers found to have misclassified “employees” as “independent contractors” may find themselves ordered to pay a civil fine of up to $10,000.00. Employers found to have acted with an “intent to defraud” may even be charged with a misdemeanor, fined up to $1,000.00, and/or imprisoned for up to one year.
Takeaways for Small Businesses
As with any proposed legislation, whether HB 4390 will be enacted in its current form is difficult to predict. However, preparation is key to avoiding the pitfalls some businesses will experience if the bill becomes law.
This article serves as a general informational summary and does not constitute legal advice. Please contact the authors with any specific questions.
About the Authors:
Frank Mamat is a partner at Dinsmore & Shohl LLP who focuses his practice on labor and employment. Frank is prepared to respond when employers face complex issues, and he understands the importance of addressing these matters in a timely, efficient manner. You may reach Frank at frank.mamat@dinsmore.com or (248) 203-1635.
Erik Bradberry is an attorney at Dinsmore & Shohl LLP whose practice emphasizes labor and employment matters, as well as commercial litigation. You may reach Erik at erik.bradberry@dinsmore.com or (774) 773-4075.
Images courtesy of SBAM
