Just in Case it Matters to You
Weekly Report 14-24
- MERGER OR ACQUISITION DILIGENCE OFTEN NEGLECTS MANAGEMENT CONFLICT RISK. “The other side might bring sterling credentials – financially strong, a top-notch control system, squeaky clean legally – and still be incapable of meeting the objectives you have for the deal.” Assumptions about the other side’s ability to deliver, style of management, and likelihood for effective cultural assimilation are too often left to chance, creating exceptionally high risk for devastating post-close impacts. DCG has decades of experience in this critical factor. Don’t be penny-wise, pound foolish. [JRNL OF ACCOUNTANCY – Jun 14]
- CALIFORNIA MINIMUM WAGE INCREASES TO $9 PER HOUR JULY 1, with overtime pay at 1-½ times for over 40 work hours in any week or 8 hours on any workday. ‘Exempt’ rules are tighter than federal, particularly regarding ‘administrative’ workers, requiring that they (1) cannot be involved in making products, performing business services or routine duties; (2) must involve specialized or technical training or knowledge more than half the time; (3) must utilize “discretion and independent judgment’ affecting operations to a substantial degree”; and (4) be compensated by fixed salary level without reduction for “lack of work, poor attendance or disciplinary issues.” Substantial penalties for non-compliance, including intern hiring rules, can include double the shortfall, retroactive up to four years. Reminder: (a) ‘Interns’ must be students actually trained in a job (not just ‘learning a new skill’ or ‘professional experience’); (b) Your program must theoretically be more for the students’ benefit than the company’s and cannot replace any regular employee to cut overhead costs; (c) Employers technically cannot “derive immediate advantage” from intern efforts; (d) There is not supposed to be any chance for a post-internship job position. Unless these guidelines are met, the intern qualifies as an ‘employee’ and must be paid commensurate with job functions and state regulations.
- THE VAST MAJORITY OF CYBERSECURITY PROGRAMS FALL VERY SHORT of federal framework goals… particularly in monitoring employees, deploying event management technologies, implementing supply chain risk management programs, or employing a Chief Info Security Officer. A PricewaterhouseCoopers survey of 500 U.S. business, law enforcement & government executives also found that: “most organizations do not address 3rd party security… efforts are not keeping up with mobile technologies… and workers are not trained in good cybersecurity hygiene.” DCG can help. [BANK INFO SECURITY – May 30, 14]
- HEALTH CARE FACTCHECK ON MERS AND MRSA: MERS (Middle East Respiratory Syndrome) is a deadly virus. However, only two Americans have confirmed cases which they acquired in Saudi Arabia, worldwide only 635 cases have been identified, and the virus apparently comes from camels without easy transmission to humans. MRSA (Methicillin-Resistant Staph Aureus) is the more serious risk since it can transfer easily to human skin after living up to a week – particularly on airplane armrests, seat pockets, tray tables, shades and toilet-flush handles – causing infections of skin, lungs and bloodstream. [THE WEEK – Jun 6, 14]
- THOUGHTS FOR THE WEEK: A single cup of ice cream has more cholesterol than ten glazed donuts. /// The cable news audience average age is now close to 69, reports the New York times. /// And USA Today reports that nearly a quarter of Americans now say they have halted online shopping due to concerns over security and data breaches.
- DUITCH CONSULTING GROUP – UTILIZING GLOBAL PERSPECTIVE TO PROVIDE OPTIMAL STRATEGIC, FINANCIAL, OPERATIONS AND MANAGEMENT PLANNING & POSITIONING