Long dreamed of becoming your own boss? Now may be a good time to take the plunge. Today’s tech advances make everything from marketing to invoicing more manageable than ever.

The Small Business Administration and other entrepreneur-focused groups provide a plethora of free resources to support your growth. And with interest rates on loans ticking down, borrowing cash to fund your vision is getting cheaper.

Whether you’re thinking about freelancing, consulting or opening your own restaurant, many of the initial moves you should make as you start a business are similar. By getting an understanding of what’s needed, you can preserve your financial security, avoid unnecessary headaches and set yourself up for success.

Here are the key steps to go from idea to execution.

Validate your concept

Make sure there’s a demand for your product or service.

“Know the difference between an idea the market wants or needs and an idea that is a personal passion or a hobby,” says Kira Chereé Cobb, founder of Entrepreneur Business Basics, an organization that helps entrepreneurs launch and grow their businesses.

Carolyn Katz, a mentor at SCORE, a nonprofit organization that provides free advice and resources for entrepreneurs, is a proponent of “customer discovery,” which means having open-ended conversations with potential customers.

“Instead of asking, ‘Would you like red socks or blue socks?’ or ‘Would you pay $10 or $12?,’ you ask, ‘How do you feel about your socks?’ ” she says.

Online tools such as Google Forms and SurveyMonkey are helpful for getting feedback. However, Katz recommends in-person discussions when possible. If you’re thinking about opening a food truck, for instance, hang around existing food trucks and chat with customers there.

During your research, don’t rely on friends and family for validation. Focus on those who don’t have a vested interest in your success, not people who will say, “Honey, that’s a great idea,” Katz says.

While you are investigating the viability of your concept, be sure to analyze competitors and track industry trends. One useful approach is a SWOT assessment, which helps you examine the strengths, weaknesses, opportunities and threats related to your idea.

Gavin Escolar, founder of The Chaga Company, used a SWOT analysis soon after discovering the antioxidant and anti-inflammation benefits of Chaga mushrooms during an extended trip to Alaska. Inspired by the health benefits he experienced, Escolar remained in Alaska, selling Chaga-infused foods and beverages in Juneau.

After realizing the harsh Alaskan winter weather wasn’t for him, he decided to return to San Francisco. Using the SWOT framework to evaluate the mushroom-selling potential there, he discovered a promising market. The analysis panned out, and he has been successfully running the company from there since 2018.

He sells his products at farmers markets, fungus fairs, pop-ups and corporate events, as well as online.

Review your personal finances

Even with the best idea, it can take months to make money. “Businesses that are profitable out of the gate are the rare exception,” says Katz, who has a background in banking and venture capital.

With that in mind, it’s critical to build a solid financial cushion — preferably enough to support you for a year — before you launch. At the same time, make sure your personal credit is strong, because you may need to borrow.

“Whether it’s an Office Depot store card or a business Mastercard,” loan issuers will initially rely on an entrepreneur’s personal credit record when reviewing credit applications, says Cobb, who is also an affiliate representative with the Kauffman Foundation’s FastTrac entrepreneurship education program.

Also, review the benefits your employer provides to determine what you’ll need to replace. Start by examining your pay stub or Form W-2 to get a general understanding of your income. Then, add in employer-sponsored benefits such as health care contributions and insurance discounts that you’ll pay if you’re not eligible to join a parent or partner’s plan. In addition, while employers pay a portion of your payroll tax contributions for Social Security and Medicare, self-employed workers must pay the entire 15.3% tax. (However, you can deduct half of self-employment taxes on your tax return.)

Without access to an employer-sponsored 401(k), you’ll also need to set up your own retirement plan, such as a Simplified Employee Pension (SEP) IRA or solo 401(k), to be able to save money pretax. If your employer provides a matching contribution to your workplace plan, you’ll also lose that when you leave.

Keep in mind, too, that while you are employed, you’re typically paid when you’re out for sick days, federal holidays and that annual beach vacation. When you’re running your own business, you won’t get those perks.

Cobb recommends thinking through some scenarios to fully comprehend how your finances will fare if your business doesn’t succeed. Consider testing your concept as a side hustle or part-time work before leaving your job.

Create your business plan

Think of your plan as a blueprint for what you want to achieve. It will outline how you’d like to structure, operate and expand your business. A solid plan helps you stay focused and gives potential partners, lenders and investors a clear view of your vision and business model.

Every plan is unique — there’s no exact formula — but most include an executive summary and mission statement, company description, details on products and services, market analysis, organization structure, operations plan, financial plan, and marketing strategy.

With so many elements, creating a business plan can feel daunting. But help is available. The Small Business Administration and SCORE have detailed templates that guide you through each step.

You can find the SBA template at www.sba.gov/business-guide/plan-your-business/write-your-business-plan; SCORE’s template is available at www.score.org/resource/template/business-plan-template-a-startup-business.

You can also get personalized assistance from advisers at SBA district offices, Small Business Development Centers (SBDCs) and SCORE. (For more on these resources, see the box on the facing page.)

Figure out the funding

There are numerous avenues to consider for financing your business, including self-funding (also known as bootstrapping), small-business loans or microloans, venture capital, grants, lines of credit, crowdfunding, hitting up family and friends, or a combination of these funding sources.

The SBA has a range of loan programs, but it doesn’t lend directly. Instead, it works with institutions willing to extend credit to start-ups because the SBA guarantees a portion of the loan.

Whether it’s an SBA-backed loan or a crowdfunding campaign, remember that what worked for a friend’s or colleague’s venture doesn’t mean it’s the right approach for you. The best kind of funding is very specific to the company and the situation, Katz says.

The Chaga Company’s Escolar got a $3,000 loan from his mother to launch his business in San Francisco, and he agreed to pay interest if he didn’t reimburse her within six months. He was able to pay her back in full before that condition kicked in.

Entrepreneur Arnyce Foster-Hernandez, who recently opened Featuring, a café that sells coffee, tea, pastries, natural fruit juices, and other items in the Harlem area of New York City, initially looked into securing a loan but says the process was time-consuming and disheartening. Instead, she self-funded, using $70,000 of her and her husband’s savings to open the café, and now relies on a business line of credit as needed.

In September, the Federal Reserve cut interest rates for the first time in more than four years, giving small businesses that rely on SBA loans a financial boost. Some 80% of SBA loans are tied to the prime rate, which means about 200,000 small businesses were set to see reduced loan payments starting in early October, according to the White House. While rates on SBA loans are negotiated between the borrower and the lender, the SBA caps rates based on the size of the loan. Currently, the caps range from 11% to 14.5%.

Despite falling rates, some lenders may remain cautious as they balance new loan requests with challenges such as outstanding loans from businesses that survived the COVID-19 pandemic but are now struggling financially, says Katz. Those institutions are trying to make new loans work while cleaning up old loans, which can leave them overstretched and more hesitant to lend.

A well-prepared business plan with detailed financial projections can strengthen your application. To explore your loan options, you can use the SBA’s Lender Match tool at https://lending.sba.gov/lender-match, which connects businesses with nearly 1,000 SBA-approved lenders. Those not matched to lenders are connected to a network of free advisers who can help prepare them for future approval.

Organize your business finances

To avoid legal and financial complications — and simplify record-keeping — separate your personal and business finances. That means using a dedicated bank account and credit card for your business.

You’ll also need a system to track income and expenses, such as QuickBooks or FreshBooks software, or even a well-organized spreadsheet. Cobb recommends working with a bookkeeper early, as an experienced professional can provide invaluable guidance on areas such as paying yourself, tracking profit and loss, and categorizing expenses correctly. “Instead of waiting until you have a lot of money, start with one in the first six months,” she says. “They can help you set up your finances the right way from the very beginning.”

An accountant is another expert to work with as soon as possible. A CPA can explain which expenses are deductible and help you take advantage of tax breaks. An accountant can also guide you through calculating estimated quarterly tax payments, so you’re not caught off-guard at tax time or penalized for underpayment.

“You have to be really cognizant of taxes,” says Aditi Dussault, associate administrator for the SBA’s Office of Entrepreneurial Development. “I know people who start as sole proprietors, don’t pay their taxes quarterly, and then are shocked at how much money they owe the government when they actually file.”

To find an accountant or bookkeeper, ask for recommendations from trusted sources, such as a financial adviser, your bank, or local small-business organizations. Check with peers, mentors, or members of your networking groups for suggestions, too.

Select a business name

Choosing a name for your business can be just as meaningful as naming your child — yet it comes with much more legwork. It’s fine if there are three other Emmas in your kid’s fifth-grade class. But in business, you want a unique moniker.

After brainstorming your name shortlist, run each contender through your state’s business-name directory, which is often found on the website for your state’s secretary of state, to see whether it is already taken. Also, search the U.S. Patent and Trademark Office website at www.uspto.gov to see whether anyone else has claimed the trademark.

Plug the name into Google and other search engines to see what pops up. If you plan to launch a website, see whether a domain name is available to match your preferred name. If the name you want is available, you can buy it through a domain registration company, such as GoDaddy.com. Check popular social media sites to see whether your business name is available as a username. If it is, nab it.

Decide on a business structure

Your business’s structure can affect everything from taxes to liability, so it’s essential to go about this with care and, often, some expert advice. Many entrepreneurs start as sole proprietors, but that could make you personally liable for the debts and obligations of the business, Dussault says. Operating as a limited liability company (LLC), such as a single-member LLC, can better protect your personal assets.

You can file for an LLC by completing the necessary documents on your own, using an online do-it-yourself service such as LegalZoom, or you can seek the assistance of a lawyer, accountant, or member of your local SBDC. Other structures include partnerships, S Corporations, and C Corporations. Ownership rules, liability, taxes, and filing requirements for each can vary by state.

Also, on the paperwork front, you’ll need to get the proper insurance, licenses, and permits for your business.

Build a support network

Most new business owners don’t realize how lonely working for yourself can be. “Friends and family don’t want to hear how you spent the last four days trying to figure out your point-of-sale system,” Katz says. “And you can’t really talk about the frustration of running the business to your staff or customers. So you need a support system.”

Mentors, peers, and coaches can provide needed counsel and emotional support. Although putting yourself out there can be awkward and intimidating, building a business network is crucial for success, as it can help you find potential partnerships, land new customers and develop ideas for business growth.

There are plenty of ways to build your network, from attending chamber of commerce mixers to joining LinkedIn groups in your industry. You’ll need to proactively connect with others in person, via e-mail, and on social media. “Get comfortable with being uncomfortable,” Cobb says.

There’s also a wide range of specialized support groups, Dussault notes, such as communities for women, veterans, LGBTQ people, and Asian American entrepreneurs. “You can get very specific” to find a community that suits you and your needs, she says.

While connecting with new mentors and advisers can be invaluable, networking with fellow entrepreneurs can help you to find resources, such as competent, affordable legal and bookkeeping services.

“So many people feel as if they have to do it on their own in order to be a real entrepreneur. And that is not true,” Dussault says. “You want to protect your secret sauce and not give out that recipe, but trading notes on advisers and other resources can help accelerate your growth.”

Promote your brand

Thanks to relatively easy-to-use design platforms such as Canva, DIY web platforms such as Wix and Squarespace, and the ability of artificial intelligence to create everything from logos to social media posts, there is an abundance of marketing resources for today’s entrepreneurs. The trick is to focus on what works best for you and your goals.

“You need to have a strategy that’s organic to you and that works with your business and with your style,” says Katz.

When Escolar decided to launch his Chaga mushroom company in San Francisco, he sought out his target audience, which led him to the local Mycological Society of San Francisco Fungus Fair. His products sold out, validating his idea.

“I’ve been a small business ever since,” he says.

In addition to those in-person sales, Escolar has a website that offers everything from Chaga-infused chocolate to tea. He’s also active on Facebook and Instagram.

Although not every owner needs to be on social media, some sort of digital presence is crucial. You don’t have to be a digital marketing guru or spend thousands of dollars to get your message out there, says café owner Foster-Hernandez.

“You can Google ‘How do I market my business on social media?’ and you will find all of these free resources that will guide you step by step,” she says.

Foster-Hernandez set up free business accounts on Instagram, Facebook, and TikTok. In addition, she took advantage of free business tools, such as listing her business on Google Maps and Apple Maps so that her café comes up during a search. She’s learning about Google ads and experimenting with boosting social media content through paid promotions.

“A lot of marketing is fairly simple if you just have patience with yourself,” she says.

Adapt and grow

From the moment your business idea first comes to you until your very last day running your business, you’ll need to continually pivot to respond to market trends, customer desires, new opportunities, and your own professional and personal goals. You’ll likely outgrow certain clients, need to make staff changes, and revise and revamp your marketing. It’s all part of the entrepreneurial journey.

“It’s okay to pivot,” says Cobb. “You might need to change a client, shift your service offerings or realize what you initially wanted to do isn’t what you want now.”

It’s much better to find the courage to change course than to stick with a concept that no longer works.

“A lot of businesses hold on to this first dream, but then they go down with the ship because the idea may have been good at the moment, but it’s not what the market wants in another five years,” she says, citing the collapse of video rental store Blockbuster after digital competitors entered the market.

Dussault echoes this advice, saying it’s often best to cut your losses early rather than hang on. Sticking with a failing idea just because you’ve invested a lot of money and time in it can ultimately cost you more in the long run.

“You’re going to make mistakes, and you’ll never be fully prepared for every type of failure,” Dussault says. “Having self-compassion is really important. Forgive yourself and move on.”

Celebrate your successes

Being an entrepreneur is often one of the toughest career paths you can take. Late nights and early mornings are common. On any given day, you can juggle the roles of administrative assistant, sales executive, marketing manager, and CEO.

With so much at stake, it’s crucial to recognize and honor all the wins. “As business owners, we celebrate the major things, like landing a big contract. But we often forget to appreciate the small accomplishments, like filing your taxes on time,” says Escolar.

“Running a small business is a marathon. If you celebrate yourself, it will help you and, ultimately, your business as well, since you are a reflection of your business."

Don't go it alone

There’s a wealth of free and low-cost resources for budding small-business owners. Here are a few to get you started.

Small Business Administration (www.sba.gov). The SBA provides a wide range of support, from financial assistance to marketing and sales strategies. Go to www.sba.gov/local-assistance and enter your zip code to find support in your area. Each state has SBA district offices that can assist with planning, starting and expanding a small business. For more info, contact the SBA Answer Desk at 800-827-5722 or answerdesk@sba.gov.

SCORE (www.score.org). Since its founding in 1964, SCORE has assisted millions of entrepreneurs. Originally known as the Service Corps of Retired Executives, it provides one-on-one mentoring, along with workshops and other resources through its network of 10,000 volunteers.

Small Business Development Centers (www.sba.gov/sbdc). SBDCs offer counseling, training, technical assistance and more. There are more than 900 locations across the U.S. — often at colleges and universities.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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Since 1993, the Family and Medical Leave Act (FMLA) has protected employees who need to take time off from work to care for themselves or others. The federal law requires employers to provide workers up to 12 weeks off for medical leave, for the birth of a child or placement of a child for adoption or foster care, or to care for an immediate family member with a serious health condition. The law also covers a spouse, child or parent who takes leave to care for a military member with a serious injury or illness or to make certain arrangements (such as for child care) while a service member is deployed. Your employer isn’t required to pay you for the time off, but the law protects your job, and your employer must continue to provide your benefits, such as health insurance.

Michelle Paggi, a gerontologist and licensed psychologist in New York City, remembers how helpful the FMLA was for her mother when her grandmother was diagnosed with terminal lung cancer. Paggi’s mom, a health unit coordinator at a hospital, needed to take time off to care for Paggi’s grandmother and feared losing her job. “It was very aggressive cancer, and my grandmother had a lot of appointments. She needed my mom there as her primary caregiver,” says Paggi. “My mom was only in her fifties, so she needed the health insurance and was in no position to quit her job.”

Paggi’s mother found out about FMLA protections from a coworker, and she started accumulating overtime hours so she could continue to get paid when she took time off from work. “The FMLA gave her the flexibility to take care of my grandmother and still be able to hold on to her job,” Paggi says.

While many people know they can use the FMLA to take time off after having a baby, they don’t realize that it can also help when caring for a sick or aging relative. The law “recognizes the fact that there are over 53 million Americans providing on-going complex care for a loved one with a serious illness or disability or who is aging and requires care,” says Jason Resendez, president and CEO of the National Alliance for Caregiving. “According to our data, over 60% of family caregivers are working while providing care. Of those employed caregivers, over 50% are working full-time. There’s a balancing act between providing care and needing to put food on the table and stay in the workforce. FMLA provides a basic safety net for those caregivers.”

FMLA leave is not guaranteed to everyone. You’re eligible only if you work for a public agency of any size or a private company with 50 or more employees, you have worked there for at least 12 months, and you worked at least 1,250 hours during that year (about 24 hours per week). That covers about 56% of employees, says Molly Weston Williamson, senior fellow at the Center for American Progress.

People who care for extended family members are also excluded. For example, the law doesn’t cover time off to care for an aunt or grandparent, Resendez says. When Catherine Collinson, CEO and president of the Transamerica Center for Retirement Studies, was in her forties, she asked her employer about using the FMLA to help care for her grandmother, who had suffered a stroke (her mother had passed away years earlier). That’s when she discovered that caring for a grandparent isn’t covered by the FMLA.

Fortunately, she was able to make a flexible work arrangement with her employer so she could keep her job while caring for her grandmother, and the company’s employee assistance program helped her find backup care. Her grandmother lived for five years after having the stroke.

If you aren’t eligible for FMLA protections, talk about your situation with your employer and find out whether it offers any benefits. “Learn what is available to you,” says Collinson.

State programs

Because of the FMLA’s limitations, many states have attempted to fill in some of the gaps. Some states have required smaller employers to offer the leave or expanded eligibility to workers who need to care for siblings, grandparents, in-laws and sometimes domestic partners, says Usha Ranji, associate director for women’s health policy for KFF, a nonprofit health-policy research, polling and news organization.

More significantly, a growing number of states have implemented paid-leave programs. Thirteen states and Washington, D.C., have passed laws that guarantee paid family and medical leave, which typically include the needs covered by the FMLA, Weston Williamson says. The programs in four of those states take effect in 2025 or 2026. (KFF provides a list of the states at https://tinyurl.com/y2twjss9.) The types of care that are covered can vary by state. Some states offer paid benefits only for medical leave, or for caregiving leave and/or parental leave, but not all three.

You typically apply for paid family leave through your state’s department of labor or paid family leave agency. Workers and employers usually pay into an insurance system, which covers the benefits when workers take leave, Weston Williamson says. You may get a percentage of your salary, up to certain limits — 60% to 80% is typical, says Ranji.

How to take family leave

Start by contacting your employer’s human resources department. Although in many cases the need comes up at the last minute, you generally must provide advance notice of 30 days for scheduled events, such as a new baby or planned surgery.

A health care provider typically must complete medical certification to support the need for leave, which can be for several weeks at a time or up to the equivalent of 12 weeks per year. The law allows employees to take intermittent blocks of time for a single reason, such as flare-ups of chronic conditions or recurring caregiving responsibilities, says Maria Medina, HR knowledge adviser for the Society for Human Resource Management. Examples of situations in which the FMLA can be used continuously include a serious medical condition that requires recovery time, pregnancy that entails bed rest, or inpatient treatment for mental health conditions. For more information, see the Department of Labor’s FMLA resources at www.dol.gov/agencies/whd/fmla.

More Help: Some states offer paid family caregiver programs

In response to the COVID-19 pandemic, the federal government allowed states to use Medicaid funds to pay family caregivers, says the National Alliance for Caregiving's Resendez. More than 40 states expanded their ability to provide direct compensation to family members, although some scaled back their programs after the COVID public health emergency ended.

The person receiving the care generally needs to be eligible for Medicaid, and the family member may need to register with a home health agency to get paid for providing the care, says Alice Burns, an associate director of the Program on Medicaid and the Uninsured for KFF, a nonprofit health-policy research organization.

Eligibility varies by state. Some states cover care only for family members with developmental disabilities, while other states limit the program to relatives age 65 and older or with physical disabilities.

For more information, go to www.kff.org/medicaid or contact your state Medicaid program. Burns also recommends contacting an Area Agency on Aging near you to find out about state programs for older relatives. You can search by your zip code or city and state at https://eldercare.acl.gov.

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

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Thinking of unretiring? You're not alone. Returning to work after calling it quits is still part of the regular routine for many older adults. In 2024, 37.3% of people age 55+ were employed, up from 31.5% in 2000. So much for basking away the hours under the sun.

By comparison, in 1983 the labor force participation rate for people age 65 or over was just 19%, according the the U.S. Bureau of Labor Statistics (BLS).

Today, however, older workers are re-entering the workforce at unprecedented numbers. Although the reasons vary, we can thank inflation, the rising cost of living, current market volatility and overall uneasiness over what the future may hold — among other things.

LinkedIn quoted a recent un-retiree as saying, “Depending on when you plan to retire, you may have another 30, 40, 50 or more years of life — and that’s a long time to drift aimlessly,”

What are the motivating factors? 

First, people are living longer. According to a United Nations estimate, the world had just 27,000 centenarians in 1970. Now, global centenarians top 722,000 and could reach 3.5 million in 2050. Advances in medicine, improved public health measures, better nutrition and healthier lifestyles all likely contribute to a long life.

Second, Social Security benefits. Working in retirement may help put a little extra cash in your pocket. That is unless you exceed $23,400 per year in 2025 (up from $22,320 in 2024) and you're under full retirement age (FRA), per the Social Security Administration. That means, if you go back to work and you haven't reached your FRA, for every $2 in earnings above the $23,400 limit, $1 in benefits is withheld.

This is called a retirement earnings test exempt amount. However, this only applies if you are under your full retirement age (FRA). If this is the case, one of two different exempt amounts apply — a lower amount in years before the year you reach your FRA and a higher amount in the year you attain FRA.

On the plus side, any benefits withheld while you continue to work are not lost. Once you reach your FRA, your monthly benefit will increase permanently to account for any benefits withheld.

Third, money. More than half, or 53% of respondents of a 2024 CNBC and SurveyMonkey poll say they are behind on retirement planning and savings. In a recent update from Resume Builder, one in eight retired seniors are likely to return to work in 2025. The top reason? An increase in the cost of living. And, although you might be able to live off Social Security as your only source of income, it probably won't be enough to replace your pre-retirement standard of living.

Fourth, making connections. Financial planner Judith Ward said many retirees consider rejoining the workforce because it’s a “powerful way to make social connections and reestablish a sense of purpose.” George Jerjian echoed her sentiment. “Sure, money is a concern, but the biggest retirement challenge that no one talks about, in my experience, is finding purpose.”

Where are unretirees working?

Mark Walton said in his book “Unretired: How Highly Effective People Live Happily Ever After,” that older workers are part of a big change in the American economy. While many can afford to retire, many seniors have no interest in powering down their ambitions to play pickleball, garden, go on a cruise or dabble in hobbies for the next 30 years. Instead, they are finding work in less physical and less stressful jobs. And, employers are benefiting as well from the deep expertise that comes with years of experience.

Most of the 60.3% of baby boomers who held a job in the last year were employed full-time, according to LinkedIn data. The remainder (39.7%) were self-employed. Many boomers also found jobs in the Sun Belt — a favorite region for retirees with sunshine and low taxes that stretches across the southern U.S., from Florida to California.

Besides location, AARP Vice President Carly Roszkowski says, “Many older Americans are “starting their own businesses or driving for Uber or DoorDash — jobs that didn’t exist 15 to 20 years ago.”

As far as mobility, 30% of seniors who have returned to work or are considering going back to work say they would prefer to be fully remote, while 4% would rather do hybrid work and 31% say they would prefer to work in-person. The remaining 35% have no preference.

Proceeding with caution

Retirees who decide to return to work, however, must be careful with their Medicare coverage. That’s because both Medicare Part B and Part D premiums are based on your income. Your premium costs could increase if you begin making more money.

Medicare coverage also comes into play if you go back to work for a company that offers a health care plan that qualifies as primary coverage. If so, you can drop your Medicare Part B and re-enroll later without penalty. Once you're done working, you have eight months to re-enroll or you may incur a late enrollment penalty.

It may also be possible to have both Medicare and private health insurance through your new employer — one will be your primary coverage, and the other will be secondary. If you do have both, you can't put money into a health savings account (HSA) through your employer without facing a tax penalty.

Another consideration before unretiring is the possibility of changes in your taxes. The extra cash you make may push you into a higher tax bracket. This is especially true for anyone with additional income from a pension, retirement account or Social Security.

According to Kiplinger, there are ways around this. You can consider converting some of your tax-deferred retirement accounts into Roths, You'll pay taxes upfront, but you won't pay income tax when you withdraw your money because you already paid the tax on your contributions.

You also don’t have to take minimum distributions from these accounts. That means you aren’t unnecessarily adding income that might push you into a higher tax bracket. A financial adviser may be able to help you understand the big picture while also finding ways to lower your tax burden should you decide to unretire.

How to unretire

If you’re one of the many retirees going back to work, but you're not sure where to start, Kerry Hannon, a workplace author and columnist, recommends focusing on upskilling and cultivating your network. “Getting your wider community involved in your job search — not just family or close friends — will help the most,” she said. “It’s the people who participate in your same hobbies who you don’t know as well who might keep you in mind when they hear of opportunities.”

Unfortunately, getting your foot in the door can be a little more daunting when you're older. "Many older workers fear age discrimination will hurt their chances of landing a role," AARP’s Roszkowski said. “Include your credentials, but don’t include college graduation dates.”

You might also consider semi-retiring, or inching into retirement slowly. You can keep working, but also spend more time on those activities you enjoy. If done well, semi-retirement can be beneficial both financially and psychologically, and it gives you a chance to take a step back and ease into retirement rather than stopping abruptly.

Does the workforce need older workers?

Baby boomers and some of the eldest members of Gen X, who turned 59 1/2 beginning on July 1, 2024, bring a lifetime of experience and skills to the table. Boomers are the generation least likely to feel burned out on the job, according to a recent LinkedIn survey. A separate survey from Bain research showed that they feel more loyal to their employers than other generations. And teams that span generations can generate stronger overall performance and more productive collaboration than those that don't, according to research featured in Harvard Business Review.

Recent findings from LinkedIn’s Workforce Confidence survey also show that more than half of Gen Zers and millennials in the U.S. say they could use a mentor at work. Mentoring relationships can help mentees develop their careers and allow mentors to cultivate a greater sense of purpose and meaning. A win-win for everyone.

Note: A version of this item first appeared in Kiplinger Retirement Report, our popular monthly periodical that covers key concerns of affluent older Americans who are retired or preparing for retirement. Subscribe for retirement advice that’s right on the money.

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Robyn Dochterman has owned a chocolate shop in Marine on St. Croix, Minn., since 2010 and has spent a lot of those 13 years putting chocolate in molds and flipping them out. 

This repetitive motion has damaged her hands, and although she has had a few procedures and an operation to fix the problem, it keeps returning. For the past several years, Dochterman, 61, has been trying to figure out how she can keep working and manage her pain. 

“I own my own business and if I had to be here till 2 a.m., no big deal,” she says. “But now I have to dole out the hours to myself and make sure I don't overwork because I can't come back from that. It’s a sort of asset management.”

Many older workers are facing the same dilemma as Dochterman. Those 55 and over now make up 24% of the workforce, up from 12% 25 years ago, says Richard Johnson, a senior fellow at the Urban Institute think tank. According to a 2022 study in the journal Research on Aging, one in four workers who are still healthy in their mid-fifties will experience a disability in the next few years, making working more difficult. This includes both blue- and white-collar employees.

The disability can be caused by a sudden medical problem, such as a heart attack, a neurological disease such as Parkinson’s, mental health challenges or, like Dochterman, chronic wear and tear.

The journal study also found that three-fourths of workers with new disabilities in their late fifties or early sixties left the workforce before full retirement age; that compares to one-third of those who didn’t have a disability.

But many can’t or don’t want to give up their jobs. So how can they cope with their disability and continue working?

Support for disabled employees 

Under the Americans with Disabilities Act, employers must provide “reasonable” accommodations to those with substantial impairments, which include problems hearing, seeing, speaking, breathing, performing manual tasks or caring for oneself. Reasonable is defined as not causing “undue hardship” for the company. Companies with fewer than 15 employees, religious organizations and private clubs are exempt from the law’s requirements.

Accommodations can include modifying equipment—even something as simple as a different chair, desk or keyboard—or changing work schedules or  job restructuring. More information is available on the website of the U.S. Equal Employment Opportunity Commission. Click on the tab for employees and job applicants and over on the right, under the section for “discrimination by type,” select “disability.” 

About half of workers with disabilities receive accommodations from employers, Johnson says, but “a lot of people don’t pursue it. To get accommodation, self-advocacy is really important. You have to be aggressive and pursue an accommodation with an employer.”

One great boon for workers with disabilities has been the move toward remote work since COVID. That is true for Peter Winkelstein, 66, a pediatrician who suffers from a degenerative muscular disease called inclusion body myositis, for which there is no treatment.

Winkelstein, of Buffalo, N.Y., received the diagnosis when he was 60 and now walks with crutches; it is likely he will be in a wheelchair within 10 years. His hands are getting weaker, making it more difficult to type. He runs out of energy much sooner than he used to.

While the diagnosis was devastating, the timing was fortunate. Winkelstein had recently retired from clinical practice to become the chief medical informatics officer for Kaleida Health, the largest health system in western New York. He is also the executive director of the University at Buffalo Jacobs School of Medicine and Biomedical Science Institute for Healthcare Informatics.

“There’s no way I could do clinical practice now,” Winkelstein says.

Then COVID hit, and remote became the new norm. It stayed that way for Winkelstein after the pandemic waned. 

“It takes me a long time to get ready in the morning, and although I can still drive, if I had to go in to work full-time, it would be really hard for me,” he says. 

Working with your employer 

Winkelstein decided to tell his human resources department early about his disability — before it was obvious — and was glad he did. He got support, and the company received information that, in certain circumstances, could be life-saving. For example, if there is  a fire in the building, there is now a plan for how to get him out since he wouldn’t be able to use the stairs.

No one is legally required to disclose a disability to their company unless requesting a workplace accommodation, says Ellen Dichner, a New York City labor lawyer. There are pros and cons to telling human resources, managers or colleagues about health challenges, experts say. Many people fear teasing or harassment, or that their coworkers and bosses will view them differently and that their career may stall. 

When people can hide their disabilities — such as mental health issues — they often do, but that can become an emotional burden. Before his health challenge became obvious, Winkelstein says, he was reluctant to ask his colleagues for any kind of accommodation—even simply for a higher chair in a meeting room to make it easier for him to sit down and stand up.

But once it was more public, Winkelstein says, it proved a relief. 

“You start discovering all the other people who have invisible disabilities who want to talk to you,” Winkelstein says. “So it's kind of a mini-support network.” He has also started a general support group for inclusion body myositis in the upstate New York area, which has been very helpful, he says. 

Trying to keep workers on the job

Of course, some people want or need to leave their jobs due to their infirmities; this is often where Social Security Disability Insurance comes into play. 

But there are numerous restrictions, and monthly payments average just $1,489. If you are able to work, you can earn $1,049 monthly on top of the disability payment, but most people don’t work, Johnson says.

“The disability procedure is complicated and only half the people who apply are accepted on the first round,” he adds. “And because the process is so long, once people are on, they don’t try to come off.” In other countries, he notes, people can be considered partially disabled and receive payments, but in the U.S. it is all or nothing.

The issue of keeping workers with health issues on the job is a major concern to both employees and employers; so much so that the U.S. Department of Labor’s Office of Disability Employment Policy launched a pilot program, RETAIN (Retaining Employment and Talent after Injury/Illness Network), in 2018 in a handful of states. The goal is  to investigate early intervention strategies to ensure mid-career workers with disabilities can stay at or return to work.

One impetus for the program, says Yonatan Ben-Shalom, a principal researcher with the research and consulting organization Mathematica, is the lack of coordination between medical providers, employees and employers to ensure that as much as possible, people can return to work even with some sort of health problem.

While staying at a current job may be difficult in the long run for those with progressive disabilities, it’s important to figure out what aspects of your occupation you enjoy and might be able to pursue in the future. Winkelstein knows there will be a time when he will have to leave his present position, so he is taking a one-year course to earn a leadership coaching credential, something he can see doing part-time and fully remote. 

A challenge for small business owners 

Since Dochterman, as a small business owner, is boss, employee and human resource department rolled into one, she has turned to a career coach for help thinking through how to continue working with a disability.

The coach challenged Dochterman to work 20 hours a week for three or four months. Dochterman’s usual work week is 50 hours, up to 70 hours during the holiday rush, which can last from December to May and includes Christmas, Hanukkah, Valentine’s Day and Mother’s Day.

She managed to scale down to 30 hours during the slower summer season and learned to say, “My  thumb says ‘enough.’ I’ve got to go home.” As easy as this may appear, she says doing it was a challenge. “I cannot overstate how difficult it is to make that switch in my thinking.”

She has one full-time employee and a few part-timers, and she says she is training them to help in more ways than in the past.

“When you're a small business owner, it’s pounded into you, you can do it all. But I can't hold that mindset anymore,” she says. “Not only can I not do it all, but it would be a bad business decision to try to do it all.”

What you can do if you have a disability

If you have any type of physical or mental health challenge that is affecting your work:

Research what your rights and options are 

A good place to start is with the Job Accommodation Network. Go to the tab at the top labeled “individuals,” and you’ll find a wealth of resources about how, if and when to ask for accommodations as both a job seeker and employee. It also provides helpful information for employers that you can share.  

Find out more about the federal Family and Medical Leave Act 

With some restrictions, the law requires an employer to give 12 weeks of unpaid leave for a serious health condition. Eleven states—California, Colorado, Connecticut, Delaware, Massachusetts, Maryland, New Jersey, New York, Oregon, Rhode Island and Washington—and the District of Columbia offer paid leave, and some companies do as well. For more information on the federal law, go to www.dol.gov/agencies/whd/fmla. 

Weigh the pros and cons of informing your employer 

Consider telling your human resources department or a trusted manager about your situation. Remember that hiding a disability can be an emotional as well as a physical drain. 

Find others in your situation 

Joining an online or in-person support group for your particular disability can provide much-needed information and advice. Start one if one doesn’t exist in your area. Peter Winkelstein, the pediatrician with the degenerative muscular disease inclusion body myositis, first called the The Myositis Association to ask if there was a support group in his geographical area. When he discovered there wasn’t one, he asked if he could start one. The association offered him some training and support; he figured out the rest through his own research. 

Note: This item first appeared in Kiplinger Retirement Report, our popular monthly periodical that covers key concerns of affluent older Americans who are retired or preparing for retirement. Subscribe for retirement advice that’s right on the money.

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Diversity, equity and inclusion (DEI) efforts have been around since the 1960 civil rights movement, but DEI became a major focus across many industries in the past few years. In the summer of 2020, protests against racial injustice following the murder of George Floyd prompted employers and employees alike to put a focus on equity throughout hiring processes and in the course of daily work.

DEI trainings were held, and in some cases, DEI leaders and professionals were hired to help maintain a standard amongst corporations, businesses, and office structures. According to Glassdoor, there were 55% more DEI job openings in August 2020 as compared to June 2020. 

However, as early as 2021, efforts were already beginning to deteriorate in the workplace. DEI positions were being eliminated at a faster rate than other roles, according to Revelio Labs. Despite this drop off, most Americans still agree DEI is important in the workplace, but the numbers reveal fewer workers believe it’s important in their workplace.

How do employees feel about DEI efforts?

According to a February 2023 survey conducted by the Pew Research Center, 56% of employed Americans say that increasing DEI efforts is a good thing. That’s just a little over half of the 4,744 workers polled, and the opinion varies drastically depending on gender, race, age and other factors. 

While workers agree overall that DEI efforts in the workplace are a good thing, just 32% of the same people polled said that it’s personally important to them to work in a place that hires an ethnically diverse mix of employees. When it comes to how old their coworkers are, 28% said it’s important to them to have a variety of people from different generations of ages in the workplace. 

Answers vary based on gender and ethnicity.

Overall, women are more likely to value DEI efforts at work than men. About 61% of women polled said increasing DEI efforts at work was a good thing, as opposed to 50% of men who said the same thing. Around 78% of those polled who identify as Democrats or Democrat-leaning said DEI efforts at work were a positive thing, whereas 30% of Republicans polled shared the same sentiment. 

The value of DEI efforts is most greatly seen as a positive in the workplace by Black employees. Some 78% of Black employees polled said a focus on DEI is a good thing, with 72% of Asian workers and 65% of Hispanic workers also in agreement. Fewer than half of white employees polled (47%) overall said that it was a good thing. 

Black workers are also the most likely to value DEI efforts in their personal workplace, as 53% of Black workers polled said it was “extremely or very important” to them to work in a place where this was commonplace. In comparison, 43% of Asian workers, 39% of Hispanic workers, and 35% of white workers agreed.

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As they recover from the economic fallout from the pandemic and seek to attract and retain employees, 97% of large companies are planning to boost salaries. The average raise is expected to be 3% next year, up from 2.7% in 2021, according to a survey by Willis Towers Watson, a human resources consulting company.

Executives, management and professional employees should expect to see an average salary increase of 3%, and the average increase for a production and manual labor employee is expected to be 2.8%. Pay hikes will also vary by industry. While salary increases in the oil and gas industry are expected to be significantly lower next year, increases will be higher in media, health care and financial services. Employees at high-tech, pharmaceutical, manufacturing and semiconductor companies will see the largest average increase, Willis Towers Watson projects.

As the labor market tightens, the actual raises may be even higher than the projected amount, says Adrienne Altman, managing director of Willis Towers Watson. Nearly one-third of companies are expected to increase their projections, the survey found.

Negotiate for a bigger raise. The increase in pay raises comes at a time when many workers believe they’re not paid enough. More than three-fourths of workers think they’re underpaid, according to a survey by Business.org, a website targeted at small businesses.

If you fall into that category, there are several strategies that could help you negotiate for a bigger paycheck. Consider asking your employer for a cost-of-living adjustment to your salary, says Andres Lares, managing partner of Shapiro Negotiations, a company that helps clients negotiate business transactions. That’s an effective tactic because it points to an objective standard, Lares says. You’ll also want to consider whether the company has faced economic difficulties, such as a drop in revenues.

Being flexible may also help. If you’re willing to take a bonus instead of a salary increase, let your employer know that’s an option. And while it’s important to have a number in mind when you make your request, you may want to avoid mentioning a precise figure until you’ve talked about your performance, Lares says.

The fall open enrollment season for employees is upon us, which means millions of American workers will need to make a number of complex decisions when it comes to their benefit selections. In fact, typically the average employee may have to make decisions on over 17 benefits.

(1)

That’s a lot of decision-making responsibility — especially when you add the stress of trying to protect the financial well-being of your family as the pandemic continues.

Plus, this process will likely not get any easier this fall, as many employers plan to make changes to their benefit line-ups as a result of COVID-19. Therefore, to help navigate the maze of decisions employees will need to make during open enrollment, below are four tips to help maximize your workplace benefits.

Tip No. 1: Don’t be scared off by high-deductible health plans

The two most common types of health plans that employees have access to through their employers are preferred provider organization (PPO) and high-deductible health plans (HDHPs). The PPO option typically has a lower deductible with higher premiums, while the HDHP option typically has higher deductibles with lower premiums and is commonly paired with a tax-advantaged health savings account (HSA) — a powerful savings and spending vehicle.

To help understand why American workers choose the health plans they do during open enrollment, Voya launched a study last fall in partnership with SAVVI Financial. Interestingly, the research reveals employees often have a bias against HDHPs when compared to more traditional PPO health plans. In one part of the study, participants were presented with two different plans and told to think of them as identical in quality of care, access to care and all other features beyond cost. The only differences in the HDHP vs. PPO plans were the premiums and deductibles. Almost two-thirds of study participants (65%) selected the PPO plan — despite the fact that the study was purposefully designed so the HDHP would always be the optimal financial choice. As a result, depending on how much they used their benefits, the average employee was overspending on their health care plan by $500 to $2,500 through the year — which is money a person could be saving for retirement or putting aside for an emergency.

The study identified several reasons why employees are biased against HDHPs, and interestingly the naming of the health plan had a big impact. For example, participants were almost twice as likely to choose a PPO plan over an HDHP when the words “high deductible” were used in the plan name (65% PPO vs. 35% HDHP). This preference noticeably lessens when the plan names are unbranded (53% PPO vs. 47% HDHP).

The bottom line is that when it comes to selecting the best health plan for your family, there’s never a universal, one-size-fits-all solution. Therefore, it’s important to keep an open mind — or you could potentially end up overspending on your health plan.

Tip No. 2: Tap into the power of HSAs

COVID-19 has underscored the need for American workers to be better prepared for health expenses. A health savings account can offer several benefits for both short- and long-term health care savings. For anyone enrolled in a high-deductible health plan, HSAs can help you address immediate health costs as well as the ones you’ll have later in life when you retire.

Faced with a short-term, unexpected need — such as paying for an ER visit — many people might be tempted to dip into their retirement savings. Fortunately, funds in an HSA can double as an emergency savings account for qualified health care expenses. HSAs have the potential to offer triple tax benefits:

• Contributions are not taxed.
• Investment gains are not taxed.
• And withdrawals for qualified medical expenses are not taxed, either.

Plus, when enrolled in a HDHP and HSA, you can choose to leave your funds in your HSA and, instead, cover a medical bill “out of pocket.” This strategy is one way HSAs can serve as a potential emergency savings vehicle for unexpected health care costs in the future. Additionally, since HSA funds roll over each year, many HSAs offer the opportunity to potentially grow your account balance by investing in long-term investment funds, such as stocks.

As a result of these features, HSAs have increased in popularity during the pandemic. Industry research shows that assets in HSAs increased 25% and the number of new HSAs increased 6% in 2020 — which brings the total number of HSAs to approximately 30 million in the U.S. For 2022, the IRS has also increased HSA contribution limits to $3,650 per year for individuals and $7,300 for families. Individuals who are 55 and older are eligible for an additional $1,000 catch-up contribution.

Tip No. 3: Don’t overlook group life insurance

The pandemic has caused many people — both young and old — to reflect on their own mortality. As a result, the number of life insurance policies sold during the first half of 2021 increased 8% compared to last year. This is the highest policy sales growth recorded since 1983, according to LIMRA’s Second Quarter U.S. Individual Life Insurance Sales Survey.

Unfortunately, individuals with serious medical conditions typically don’t qualify for individual life insurance, or the cost of a policy may not be affordable. Given the recent interest in life insurance coverage, this is where group life insurance provided by your employer might be a benefit worth exploring during this fall’s open enrollment period.

Since group life insurance is sponsored by your employer, it’s often a cost-effective way to help protect those who rely on your income. In many cases, it doesn’t require a medical exam for coverage — which is typically cited as a barrier for purchasing life insurance. Additionally, employees can often take their group life insurance policy with them if they leave their employer. They just need to continue paying the insurer directly for the coverage, but it will still be at a cost-effective group rate. Your spouse or kids may also be eligible, which provides another layer of protection for the entire family.

How much life insurance coverage do you need? It’s a personal decision and one that needs to be carefully considered. When calculating the amount of life insurance you want to purchase, one rule of thumb is that your death benefit should equal five to 10 times your annual income. While this is a simple formula, it’s important to remember that it doesn’t consider individual factors, and the financial protection your family may need can change over time — for example, when your children finish school or when you pay off major debt, such as your mortgage. If you need help, there are online calculators that do a great job providing personal guidance, or you can speak with a financial professional.

Tip No. 4: Voluntary benefits are becoming less ‘voluntary’

Typically, when employees prepare for open enrollment, they spend most of their time focused on their core workplace benefits: medical, dental and vision. While these benefits are important, Voya’s customer data shows that more than four in 10 retirement-plan participants (44%) have protection or insurance gaps in their coverage.

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This could put you in a challenging financial situation if you get hit with an unexpected medical expense. For example, the average cost of one day in the hospital in the U.S. is around $2,400, with the average patient staying more than four days.

(3)

Voluntary benefits offered through your employer can provide additional protection, and it’s encouraging to see that employees are now increasingly turning to their employers for solutions. New Voya research shows that the majority of working Americans (75%) want help navigating an unexpected life event, such as a critical illness or accident. Some of the voluntary benefits and services that some employers are offering include hospital indemnity insurance; critical illness insurance coverage; and student loan guidance, refinance and repayment, to name a few.

Employees should not disregard these types of voluntary coverage when selecting their workplace benefits during open enrollment. For example, if you are expecting a baby in the coming year or perhaps are worried about getting COVID-19 and being hospitalized for an extended period, hospital indemnity insurance can help, and typically costs less than what most people expect. Hospital indemnity insurance averages between $250 and $300 per year — that’s less than $1 per day.

(4)

Plus, some voluntary benefits can be particularly useful for more than medical bills. Accident insurance, for example, can be used to pay for anything from living expenses — utility bills, pizza delivery or dog walking — to rides to your next doctor’s appointment. When you experience a qualified accident, that benefit payment is yours to spend how you like and need.

Final thoughts

If we look at lessons learned from last year’s open enrollment period, a Voya consumer survey shows that nearly six in 10 American workers (56%) spent more time reviewing the benefits offered by their employer during their open enrollment period. As we enter yet another fall open enrollment season in the midst of the COVID-19 pandemic, I would strongly encourage everyone to make this time investment once again.

While I realize it might feel like a maze of decisions to navigate, if you get lost, your HR team is there to help guide you and can likely provide links to online tools and resources. Besides, you’ve already taken the important first step to putting yourself on the path to success, and that’s spending time educating yourself.

1) For illustration purposes only. Number of benefits decisions will depend on employer offering

2) Voya book of business data as of 12/31/19

3) The Kaiser Family Foundation Health Stats; Nov. 2014 study. Reviewed and updated 11/20/19

4) Voluntary Hospital Indemnity and Supplemental Medical Products SpotlightTM Report, Eastbridge Consulting Group, Inc., 2019 (average annual premium cited is for group products only)

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

When employees sign up for open enrollment this fall, many will see an expanded menu of benefits, ranging from pet insurance to legal services. A survey by consulting firm Willis Towers Watson found that 94% of employers believe that voluntary benefits—which typically aren’t subsidized but are offered to workers at a group rate discount—are important to their employees, up from 36% in 2018.

Lydia Jilek, senior director of voluntary benefits solutions at Willis Towers Watson, says the pandemic and an increasingly diverse workforce have accelerated calls for benefits that meet employees’ differing needs. And faced with a labor shortage, employers are feeling pressure to offer benefits that will attract and retain employees.

Voluntary benefits appeal to employers because “they’re able to give their employees significantly more choice than they may have otherwise had, but there is a limited out-of-pocket cost,” Jilek says.

Among the fastest-growing voluntary benefits are those that protect workers against criminals seeking to steal their personal information, Jilek says. Driven by a rise in unemployment fraud, 78% of employers surveyed will offer identity theft protection by 2022, up from 53% currently offering the benefit. Other high-growth offerings include pet insurance, legal benefits and critical illness coverage, which provides supplemental health insurance following, for example, a heart attack or cancer diagnosis.

One of my early memories is when my dad taught me how to interpret the share price tables in the business section of the newspaper. My main task was to look up prices of Oppenheimer Funds and write them down in a ledger. I learned to appreciate the simplicity of how the numbers told a story about value. Yet of deeper importance was learning how to consider patience and timing to match the funds’ performance with a life plan.

So when I was drafted by the Chicago Cubs in 1991, I had a plan for my signing bonus. First and foremost was my parents’ recommendation that I retain a broker. Soon after, I would work with an adviser at Butcher & Singer, which through many mergers became Wells Fargo Advisors. My broker was, and still is, outstanding.

But there has been some troubling news about Wells Fargo, the main home for my financial life. This news revealed a track record of deceptive dealings with its customers, including settlements for both racially driven, exploitative lending and discriminatory hiring practices. Then came insensitive comments from Wells Fargo CEO Charles Scharf that he made on a call with employees this summer, which he reiterated in a memo: “While it might sound like an excuse, the unfortunate reality is that there is a very limited pool of black talent to recruit from.”

Reaching for a future. This comment hit me hard, because wealth depends on trust in those who take care of my money. Money is not simply of quantifiable value; it has immeasurable qualitative value. It holds a future.

As a Black man, I seek more depth to leadership’s understanding of what reaching for a future truly means to a man of color. The “unfortunate reality” Scharf should have been speaking of is our nation’s legacy of systemic racism and how it has shaped opportunity.

It should matter if the returns we enjoy are reaped by discriminating against a people or if the culture that provided those returns views Black talent as charity, regardless of their qualifications.

Wells Fargo and other giants of the financial world are supposed to shun such destructive biases to allow the color of green to prevail over the color of skin. Yet they often do not. This explains the report by Citigroup that estimated that our economy lost $16 trillion over the past two decades due to discriminatory practices and sanctioned racial inequity.

We often forget that those who have power create what defines the word qualified—a word that is highly subjective, laced with nepotistic practices, and rife with compounding advantage for those of privilege. Like the success of Hamilton: An American Musical, there are countless examples of how candidates of color can be successful inside the talent blind spot of corporate hiring templates.

The real danger is having algorithms of predictive success and not understanding how much they drip with bias. This often occurs because leadership is not representative of all, and many of those in the room who represent the diversity have no real power.

We also must not assume that representation means welcoming inclusion. It is nice to get the job, but the culture around the job is more consequential to making sure that people advance fairly and are not harassed, ignored or treated as if they do not deserve that opportunity in the first place.

Scharf has apologized, saying he made an “insensitive comment reflecting my own unconscious bias.” He expressed a commitment to work for more diverse leadership. Yet I still feel compelled to consider other options for my family’s money, even with our nearly 30-year relationship. I hope Wells Fargo decides to define talent differently, not just in one image but in all of our images.

My father passed away on the day I got the 1,000th hit of my Major League career—a career that was critical to building wealth. I came to understand that inside those share prices in my portfolio are people, many of whom are people of color reflecting the dream that brought my father to the U.S. from Trinidad and my mother out of the Jim Crow South. Their legacies are important to preserve, too. And to do so, we must face some unfortunate truths about the role of racism, truths that have nothing to do with talent and everything to do with opportunity.

Doug Glanville is a baseball commentator and former player who teaches a course on sports and society at the University of Connecticut.

Across the U.S., companies that sent their workers home in March to protect them from the coronavirus pandemic are gradually reopening. Most are implementing a long list of precautions, from requiring workers to wear masks to limiting capacity on elevators. But with coronavirus cases still rising in some parts of the country—and a vaccine months away—some workers are reluctant to go back to the office.

Which raises the question: If you don’t feel safe, can your employer require you to return to work? The answer depends on a number of factors, but your individual circumstances are most important, says Alison Green, founder of the Ask a Manager website and author of Ask a Manager: How to Navigate Clueless Colleagues, Lunch-Stealing Bosses and Other Tricky Situations at Work.

If you have a medical condition that puts you at high risk should you get COVID-19 (such as diabetes, heart disease or COPD), you have some protections under the American with Disabilities Act, which prohibits employers from discriminating against employees who are disabled. According to the Equal Employment Opportunity Commission, employees with disabilities that put them at high risk for complications from the pandemic can request telework as a “reasonable accommodation” to reduce their chances of infection.

That doesn’t mean your employer is required to allow you to work from home, Green says. Your supervisor could suggest an alternative, such as putting you in an isolated part of your office. Your employer can also reject telework if you can’t perform your duties at home—if you’re a waiter at a restaurant, for example. But at the very least, the ADA requires your employer to consider alternatives that will reduce your risk of becoming ill.

Working parents whose kids’ schools remain closed are also facing challenges this fall. Your employer isn’t required to allow you to work from home to take care of your children, Green says. You have a couple of options, although they’re not ideal: The Coronavirus Aid, Relief, and Economic Security (CARES) Act stimulus package signed into law in March requires employers with fewer than 500 employees to give workers an additional 10 weeks of time off at two-thirds of their regular pay if they need to stay home to care for a child whose school is closed due to the pandemic. If you’re forced to quit to take care of a child (or children) whose school was closed due to the pandemic, you’re eligible for unemployment benefits.

Making your case. If you’re asking to work from home because you have an underlying medical condition, send an e-mail to your boss or human-resources department and put in the subject line “official request for accommodation under the Americans with Disabilities Act.” Note in the e-mail that the Equal Employment Opportunity Commission has specifically said that employees with disabilities that put them at high risk for complications of COVID-19 may request telework as a reasonable accommodation to reduce their chances of infection.

The ADA doesn’t protect you if you want to work from home because someone in your household has an under­lying medical condition, Green says. But that doesn’t mean you can’t ask to telework. “Try to negotiate with your employer to see if there’s something you can work out,” she says.

You might be reluctant to return to the office even if you don’t have an underlying medical condition, child care responsibilities or a vulnerable member of your household. A survey by Morning Consult, a market research firm, found that nearly one-third of workers would prefer to work at home until a COVID-19 vaccine is available. (The survey also found that three-fourths of workers would like to continue working from home at least a couple of days a week even after the pandemic is under control.)

If you fall into that category, speak up, Green says. Ideally, get together with other coworkers who share your concerns, she says, because there’s strength in numbers.

If you’ve been working from home for several months, you’ve got a track record you can point to in making your case, Green says. Show your employer what you’ve accomplished while working from home to prove that your productivity won’t suffer. Although many workers now say they’d like to work from home permanently for at least a few days a week, you’ll probably have better luck suggesting a temporary telework arrangement.

Worried workers can take some consolation in the knowledge that many employers, both large and small, are in no hurry to require employees to return to the office. Companies ranging from Twitter to Zillow have announced policies allowing employees to work from home permanently. In a recent e-mail to the 118 employees of Kiwanis International and the Kiwanis Children’s Fund, executive director Stan Soderstrom said working from home would be the global volunteer organization’s primary work arrangement “for the foreseeable future.” In particular, Soderstrom says, employees who believe they or someone in their household is at risk, or need to stay home to care for their children, have been encouraged to continue working from home.

“We have people who have worked for us for more than a decade,” he says. “They’ve demonstrated their loyalty to us, and I’m going to return that same loyalty.”

Lauryn Williams is a certified financial planner with Worth Winning, in Dallas, and an adviser for Student Loan Planner, which provides consulting and refinancing services for borrowers. She is a three-time Olympic medalist in track and field and the two-woman bobsled, and the first U.S. woman to medal in both the Summer and Winter Games.

What led you to become a certified financial planner? I didn’t get the kind of service I wanted from either one of the two financial advisers I had during my time as an Olympian. They didn’t help me with my budget. We didn’t have conversations about my short- or long-term goals or savings. I was earning more than $200,000 in sponsorships before I was old enough to drink. I knew I needed more information to be better equipped to handle my finances. As I started educating myself, I thought I could help other people.

What got you interested in finance? I was always in­terested in math and very entrepreneurial. And I was always looking for a way to earn money. I raked leaves, sold candy in sixth grade, worked at a catering company on the weekends when I was 8, and started working at Wendy’s on my 16th birthday. When I got to college and browsed through majors, I asked someone about finance. They said that it dealt with math and money, and I love both of those things. So it was easy from there.

African Americans take out student loans at higher rates and have higher default rates than their peers. What can be done to close the wealth gap, not just for borrowers but for African Americans in general? A lot of African American students are the first in their family to go to college. Their parents may not be familiar with all of the options available to fund higher education. Students are signing on the dotted line for loans because they don’t know the difference between loans, grants and scholarships, but they know education is important to continue to move forward in the future. Technical schools that prey upon low-income students shut down and leave the borrower high and dry. High school students need to have discussions with their parents about the most cost-effective way to receive an education before making a decision about where to go to school. If student loans are a part of the decision, they need to discuss how they’ll pay them back.

What can the financial industry do to bridge the racial wealth divide? We’re in a unique time in history right now in which the conversation on race, racism and the racial wealth divide is happening at a level that has never happened before. And we’ve started having conversations about diversity in the financial industry. The financial planning industry right now is only made up of 3.5% people of color, of which 2.2% are African American. Financial advisers should consider going into diverse high schools to get students interested in financial planning.

Mentoring people of color currently in the financial industry is important, too. If you’re an employer hiring African Americans, create an environment where they can flourish and feel welcome. You can’t just hire a minority planner to check a diversity box. You need a plan and strategy to retain them.

For small business owners who scored a loan through the Paycheck Protection Program (PPP), not having to pay back what they borrowed is a huge bonus. Under the CARES Act (as modified by the Paycheck Protection Program Flexibility Act (PPPFA) in June), the PPP lets small businesses borrow up $10 million without collateral, personal guarantees, or fees. The loan doesn't have to be repaid to the extent it's used to cover the first 24 weeks (eight weeks for those who received their loans before June 5, 2020) of the business's payroll costs, rent, utilities and mortgage interest. However, at least 60% of the forgiven amount must be used for payroll. Small-business owners have until August 8, 2020, to apply for PPP loans and until December 31, 2020, to use the funds.

To have their PPP loans forgiven, small-business owners must first submit an 11-page application to the bank or lender that approved their initial loan request. The application, along with other recently released guidance from the SBA, answers a lot of questions about repaying loans that were on the minds of small-business owners. Here are 8 important tips and warnings on PPP loan forgiveness gleaned from the application and new SBA guidance. Hopefully, this information will help prop up the bottom line for a lot of small businesses.

Since the 24-week covered period doesn't always align with a business's payroll cycle, the SBA is offering an "alternative payroll covered period" for borrowers with a biweekly or more frequent payroll schedule. As a result, borrowers may calculate eligible payroll costs using the 24-week period that begins on the first day of the pay period after loan disbursement, rather than the first day of disbursement.

Example: If a hair salon received its PPP loan proceeds on Monday, June 8, and the first day of its first pay period following its PPP loan disbursement is Sunday, June 14, the first day of the alternative payroll covered period is June 14 and the last day of the alternative payroll covered period is Sunday, November 29.

Borrowers are eligible for forgiveness of payroll costs paid and incurred during the 24-week covered period (or the alternative covered period). However, payroll costs incurred, but not paid, during the borrower's last pay period of the 24-week period are eligible for forgiveness only if they're paid on or before the next regular pay period.

Eligible non-payroll costs must be paid or incurred during the 24-week coverage period. For expenses incurred but not paid during this period, they must be paid on or before the next regular billing date, even if that date is after the 24-week period. That said, the SBA has reiterated that no advance payments of interest on mortgages will be eligible for loan forgiveness, but it hasn't specifically addressed whether the prepayment of payroll costs, rent, and utilities are forgivable.

The CARES Act defines the term "payroll costs" broadly to include compensation in the form of salary, wages, commissions, or similar compensation. As a result, employee bonuses and hazard pay are eligible for loan forgiveness as payroll costs, as long as the employee's total compensation does not exceed $100,000 on an annualized basis. These payments constitute a supplement to salary or wages and, therefore, are a similar form of compensation.

The amount of a PPP loan that is forgiven is generally reduced if the borrower cuts back on the number of "full-time equivalent" (FTE) employees during the 24-week covered period. However, the CARES Act does not define an FTE employee.

Since this is an important omission, the SBA has determined that an FTE employee is an employee who works 40 hours or more, on average, each week.

For employees who were paid for less than 40 hours per week, borrowers can choose to calculate the full-time equivalency in one of two ways. First, borrowers can calculate the average number of hours the worker was paid per week during the 24-week covered period and divide the number by 40. For example, if an employee was paid for 30 hours per week on average during the 24-week period, the employee would be an FTE employee of 0.75. Second, a borrower can elect to use a full-time equivalency of 0.5 for each employee who on average worked less than 40 hours per week during the 24-week period. Borrowers can select only one of these two methods and must apply it consistently to all their part-time employees.

There are a few exceptions to reduction of loan forgiveness when a small business decreases the number of FTE employees during the 24-week covered period. First, according to the SBA, a borrower will not be penalized for FTE reductions for employees who were fired for cause, voluntarily resigned, or requested a reduction of their hours.

A borrower is also exempt from the loan forgiveness reduction rules if it lowered FTE employee levels between February 15 and April 26, 2020, but restored the FTE employee level by December 31, 2020, to the level that existed during the pay period that included February 15, 2020. Employees that are laid off after April 26, 2020, will result in an FTE reduction even if they are rehired by the end of 2020.

There's also an exemption based on employee availability that runs from February 15 to December 31, 2020. Under this exemption, the FTE reduction is eliminated if a business can document, in good faith:

• An inability to either rehire former employees or hire similarly qualified employees for unfilled positions by December 31, 2020; or
• An inability to return to the same level of business activity at which it was operating before February 15, 2020, because of compliance with OSHA, CDC or HHS guidance during the period beginning on March 1, 2020, and ending on December 31, 2020.

Finally, small businesses will not see a reduction in the loan amount forgiven if workers turn down their old jobs. To qualify for this exemption, the borrower must "have made a good faith, written offer of rehire, and the employee's rejection of that offer must be documented by the borrower." Within 30 days of an employee's rejection of the offer, a business seeking loan forgiveness must notify state unemployment offices of the worker's refusal to return to work.

There's another way that loan forgiveness can be limited – by a reduction in paid salaries or wages of more than 25%. However, there's an exception to this rule.

If there are salary or wage reductions of greater than 25% between February 15 and April 26, 2020, the borrower is exempt from the loan forgiveness reduction rule if the salary or wage reductions are restored by December 31, 2020.

The SBA announced that it can review PPP loans of any size at any time. Borrowers must retain their PPP documents for at least six years after the date the loan is forgiven or paid in full.

The coronavirus has become a sneak attack in slow motion on the American workforce. Fear has become the operative word, not only of falling ill, but the impact this virus is having on our economy, on jobs.

Employment law attorneys are swamped by calls from business owner clients, wondering what they are allowed to do in an effort to keep their employees safe and their doors open.

I ran the following questions by two attorneys in Bakersfield, Calif., who specialize in employment law: Dan Klingenberger and Jay Rosenlieb. They provide a global perspective to these issues challenging American businesses today.

Can a business require workers and/or customers to wear masks?

Question: I believe wearing a mask should be a personal choice. I don't believe in them myself, and I don't want people telling me what to do. Can I refuse to wear a mask?

Rosenlieb: With respect to employees, in the absence of a medical condition or religious objection, which is subject to reasonable accommodation with alternative PPE, an employer can require the wearing of a face mask. Customers can be required to wear masks and other PPE. These requirements are based on current CDC, OSHA and EEOC guidance.

Klingenberger: You can make your personal choices based on your beliefs after you leave work. While you are on the clock, your employer can set rules and expectations at its discretion so long as the employer is within the bounds of the law. Beware, however, that even off-duty conduct can sometimes have work-related consequences.

A forklift operator named Antoine from Troy, Mo., can attest to that. You may have seen video of a huge Memorial Day pool party at Lake of the Ozarks in Missouri attended by crowds of partiers, most of whom were not wearing masks. Antoine — who was interviewed on the Today show the Friday after the party and asked that his last name not be used — was at that party. Now his employer has told him to stay home from work for 14 days to quarantine ... without pay.

Can a business order employees NOT to wear masks?

Question: Believe it or not, my employer doesn't want workers to wear masks. We have been told it makes customers uncomfortable and that it projects the wrong image. What should I do?

Klingenberger: You may want to have a one-on-one discussion with your boss to express your concern. It is likely other employees share your concern. Masks are so common these days that I don’t think wearing a mask makes others feel uncomfortable, but your boss is entitled to her/his opinion. You could show your employer information regarding the use of masks that have been published by the CDC and OSHA, but that is a judgment call you will have to make on your own.

Rosenlieb: Employers must follow the directives of local and state public health authorities.

Can my boss monitor me when I’m working from home?

Question: I'm working from home and have learned through the grapevine that my company is using some kind of tracking software to monitor me and my co-workers. There are rumors that they are even accessing the cameras on our company laptops. Is that legal?

Rosenlieb: Maybe. The subjects of privacy and monitoring of communications, movements and productivity (in the traditional office setting and in the “work at home” setting) are much debated and sometimes hotly contested. Restrictions and prohibitions on monitoring of employees vary from state to state and are subject to the federal National Labor Relations Act. An employer, outside of an investigation of suspected criminal activity, will find the greatest success in these areas by advising employees in advance of steps that are being taken to monitor all forms of communication (e.g. emails, voicemails, phone conversations), movement (e.g. GPS trackers on delivery vehicles), and productivity (e.g. software that tracks productivity). All of these steps are generally legal, subject to restrictions. Policy announcements, acknowledged by employees, are generally the best form of communication. Employees should never learn of these issues through the “grapevine.” This is a complex area and employers are well-advised to consult with legal counsel in their state before moving forward.

Klingenberger: Employers have the right to monitor the use of business equipment, computers and vehicles, as well as the use of employee time. Most, but not all, privacy rights individuals enjoy outside of work do not exist at work. However, statutory and constitutional rights regarding privacy have been imposed and upheld in some instances by the courts. Those rights will vary from state to state. To the extent an employee has an expectation of privacy, whether well-founded or not, employers can reduce or eliminate that expectation by implementing clear policies that communicate to the workforce that the employer reserves the right to surveil, search, track and/or monitor. Privacy issues can become more complicated for employers who telework. A colleague recently showed me a picture of her long-retired mother’s home computer with a piece of paper taped over the camera lens. Apparently, she is nervous about an unknown source spying on her through the camera. Doing something similar on your computer might make Zoom meetings less interesting but could flush out the IT folks as to whether the camera is being used without your knowledge. That’s not legal advice, just random musing.

I want to keep working from home: Can I insist?

Question: The company I work for is opening up again. I've been working from home for weeks and can do my job fine from there. I want to keep working from home (mostly for convenience, but also because I'm nervous about the virus), but my boss is requiring me to come back to the office. Can I refuse?

Rosenlieb: Assuming that public health authorities have cleared the specific place of work for re-opening, absent an underlying medical condition (supported by a note from a health care provider) or specific childcare/school issues, an employer can require employees to return to their regular place of work. Teleworking may be considered to be a reasonable accommodation of a disability. This is a complex area, and employers are well-advised to consult with legal counsel in their state when a request for teleworking is made by an employee because of a disability.

Klingenberger: It is nice that you have enjoyed working from home, but all good things must come to an end. On the bright side, the request to return to work in the office is likely a sign of optimism that your region is past the worst of the pandemic. I agree with Jay that the employer has the right to require an employee to work at his/her normal work location. Employers must keep in mind that the protections included in the Families First Coronavirus Response Act (FFCRA) continue to apply through the end of 2020, including time off for COVID-19 related medical conditions and the need to care for others for COVID-19 related reasons. The FFCRA also authorizes the employer to obtain verification that the employee is taking time off for reasons allowed under the statute. Although it is understandable why people continue to be nervous, given the number of illnesses and deaths that have occurred across the country, that nervousness is not enough to insist on continuing to work from home. As employees are brought back to work, employers are well-advised to implement COVID-19 related safety protocols in the workplace. Many recommendations have been published by the CDC and OSHA on the subject.

Do workers have a right to be provided with protective equipment on the job?

Working at home is not an option in my line of work. My employer isn’t providing the workers with gloves or masks: We have to bring our own. Do workers have a right to be provided with protective equipment on the job?

Rosenlieb: Yes. The federal OSHA General Duty Clause requires that an employer provide their employees with a workplace free from recognized hazards likely to cause death or serious physical harm — this includes injury from infectious diseases such as COVID-19. (OSHA-approved state plans will have similar or more protective standards.) Employers are obligated to provide their workers with personal protective equipment (PPE) needed to keep them safe while performing their jobs. It should be noted that an employee cannot demand specific PPE or PPE that is not deemed appropriate for the exposure.

Klingenberger: The OSHA general duty clause certainly creates an obligation for employers to provide a safe workplace and to provide necessary personal protective equipment (PPE). However, it is not entirely clear how those obligations apply in the context of the COVID-19 pandemic. An employer’s obligations may vary depending on the work being performed. Health care workers, for example, likely need a higher level of protection than a retail worker, although both are extremely important and both are providing services in a critical time.

Guidance from OSHA during the past few weeks recognizes that difference in protection needed for various industries. The OSHA COVID-19 Guidance for Retail Workers provides tips for employers “in the retail industry (e.g., pharmacies, supermarkets, and big box stores)” to “help reduce your employees’ risk of exposure to the coronavirus.” The tips include: “Allow workers to wear masks over their nose and mouth to prevent them from spreading the virus.”

Why did OSHA choose the word “allow” rather than “require” in the tips for retail workers? The choice likely reflects several considerations:

• First, very few masks or face coverings would actually filter out coronavirus. Masks and face coverings primarily serve the purpose of avoiding spread by the person wearing the mask. Assuming that is true, masks, and perhaps gloves, may protect the customers, but would not accomplish the objective of protecting the employee and, therefore, may not be PPE.
• Second, other practices are better served to protect the employee, e.g. social distancing, frequent hand washing, do not touch face, and disinfecting work area.
• Third, obtaining masks and gloves for employees may be very difficult due to high demand.

I don't feel safe at work: Can I speak up without worry?

The company, where I work, doesn’t seem to be taking this crisis seriously enough. There have been no real efforts made to ensure social distancing in the workplace, other than some signs and tape marks on the floor, which are not enforced. It doesn’t feel safe, but I fear retaliation if I speak up. What should I do?

Rosenlieb: An employer is obligated to take such steps as are required by OSHA or an OSHA approved state plan, not more. In other words, an employee who doesn’t “feel” safe has little basis to demand further protection if, in fact, the employer is fully compliant with its state and federal safety obligations. In the event that the employer has policies in place, but the policies are not followed, the employee will have a basis for a complaint.

Klingenberger: I agree. Oftentimes employees would like to see more done by an employer when the employer is actually fully compliant. As has been said many times, these are unprecedented times. Business owners and each of us as individuals are making decisions in a world of uncertainty. On a personal, local and national scale we are asking, have we done enough? Sometimes, there is strength in numbers. If some of your co-employees share your concerns, consider going with another employee to express those concerns about safety in a professional manner to your employer. Offering ideas on solutions may help the conversation.

Can I refuse to work overtime?

I’m in an industry where demand is currently skyrocketing, and workers are being pushed to the brink. Can I refuse to work overtime?

Rosenlieb: No. There are, however, a couple of exceptions. First, if a lack of sleep or fatigue creates demonstrable safety concerns, the employee may refuse to work if he or she has a good faith belief that the conditions create an imminent risk of serious injury or death. Second, if the employee is part of a workplace covered by a collective bargaining agreement, the employee may be excused from working “mandatory” overtime.

Klingenberger: Jay’s answer is spot on. Unfortunately, we are in situation where some employees are working far more than they would like and others who would love to be back at work in any capacity.

Can your employer force you to go to work?

Klingenberger: The answer would depend on the circumstances. If there has been evidence of spread in the workplace, for example, someone has it, an employer could not force the other employees to come to work in that environment, as there is a direct threat of contamination. But with no evidence of exposure, or the exposure does not impact all employees, then, the employer can insist that people come to work.

Rosenlieb: In the event of an immediate or imminent danger, the Occupational Safety and Health Administration (OSHA) provides that an employee can refuse to work. Further, the National Labor Relations Act (NLRA) protects concerted activity by employees. Concerted activity includes a refusal to work because of unsafe working conditions.

Can you be fired/disciplined if you refuse to go to work?

I asked, “What if there is no legitimate reason to not come to work, but an employee still refuses to show up. Could this result in discipline?”

Klingenberger: Yes, that is possible, but in today’s COVID-19 environment, an understanding employer could tell an employee, ‘If you do not want to come to work for the time being, you may use vacation, sick leave or other time-off benefits,’ if that is a benefit the employer offers. The employer also has to balance other considerations, such as fairness to other employees and the need to get the work done.

Rosenlieb: While an employer could take more serious action, those who care about their employees should work with them to address their concerns and find alternatives to being present at the office, if possible. And we are seeing that with a large increase in people working from home, telecommuting.

What should you do if an employee comes to work sick because they need the money?

Klingenberger: If an employee comes to work who is obviously ill and showing symptoms of coronavirus, the employer should send the employee home because of the risk to others. If the employee misses work because of having the virus or must be quarantined, many states, including California, have made unemployment insurance benefits available for days missed or reduced hours that might not normally be available.

Rosenlieb: An employee who presents at work with symptoms of a contagious illness can be sent home. The employer is not obligated to provide work to an employee who presents with symptoms of a contagious disease. On the other hand, an employer cannot send an employee home simply because the employee is a member of a high-risk group — someone who is 65 years old and older or has underlying health conditions. This would be discrimination on the basis of protected class status.

Can you turn away a customer who is coughing?

Both lawyers agree there is no obligation to serve everyone, unless you are avoiding someone for clearly illegal reasons, such as race, religion or national origin. They equally believe a polite way of dealing with a customer who is coughing would be for restaurant employees to say, “We are concerned, given what is going on with the coronavirus. If you will please step outside, I will bring you the food.”

Do you have a legal responsibility to inform people you have come into contact with if you later test positive?

While neither attorney was aware of a legal obligation to personally inform people that you have been tested positive, they observed that health departments ask every person infected to list all the people they have been in close contact with.

And while I do not know of a legal duty in the United States of self-reporting to others, it is not much of a stretch to compare their silence now with that of people who have been jailed for knowingly spreading herpes and AIDS.

To me, knowingly exposing those around you to the virus could be seen as an assault and battery. History proves that correct with the story of Typhoid Mary, an Irish cook believed to have infected 51 people with typhoid fever, several of whom died.

If you are not familiar with her story, it is worth looking up, as you will find a cast of characters right out of a horror movie, including Mary herself, who was aware of the danger she posed to others and yet continued to work as a cook, literally killing people.

She was the first person in the United States identified as an asymptomatic carrier of the disease. Considering they did not have disability insurance in place in those years to give her an income, she could not stop working as a cook — exposing others to the disease. She was twice forcibly isolated by authorities, and died after a total of nearly three decades in isolation.

What is your legal responsibility if you start to get an inkling that you are getting symptoms?

Klingenberger: I am not aware of a requirement in OSHA or various federal safety laws where someone is required to make this disclosure. Employees are always encouraged to disclose those things, and especially on-the-job injuries. There can be ramifications if they don’t. For example, they hurt their back and do not disclose it for six months, their workers’ compensation claim could be denied for a failure to report it in a timely fashion.”

Rosenlieb: While not a violation of a law, if the company had a policy requiring employees who become ill with the flu, even the common cold, to report this to HR, and if that were violated, it could result in discipline for violation of an order.

What happens if the governor or president orders you to shut your business? Do you have any options other than to follow the order?

Note: Not only has the president issued executive orders, which have shut down many businesses in the country, but state governors are also issuing similar mandatory orders. Constitutional lawyers will tell you that the government has an inherent power and duty to protect the population, especially in areas of health.

Klingenberger: The imposition of quarantine, shelter in place and business closure orders are examples of the state’s ability to exercise its police power. Failure to comply may be a misdemeanor and subject the company to fines. Time will tell whether tax and other forms of relief will be granted to help deal with the enormous financial losses.

Rosenlieb: There is no choice but to follow those mandatory orders or face fines.

Say you are ordered to stay home – quarantined – by the health department. What would happen if you disobeyed?

Both attorneys agree that the employee could face termination.

What if you know people who are doing risky things on the job, exposing co-workers to harm. Do you have a responsibility to do something about it?

And, once more, there was agreement by both Klingenberger and Rosenlieb as to what employers and employees need to do when faced with a co-worker who cares little for his or her colleagues.

“We all should hope that concerned co-workers would report dangerous behavior of whatever type, physical or health-wise,” commented Klingenberger.

“Today we all have a duty to each other to act prudently and safely. Any employee who puts co-workers in harm’s way should face potential termination. Our country is facing one of its greatest health threats in over a century. We need to watch out for each other more so than at any other time in memory,” Rosenlieb strongly maintains.

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

You’ve just discovered that an employee has been stealing cash and you want every cent back. To recover that money, several options are available, but one could get you in big trouble. We’ll tell you what it is in a moment, but first meet “Jill,” who runs her own résumé-writing service in a Northern California university town.

“Most of our clients are about to graduate and need a reasonably priced, attention-getting résumé. Our $75 ‘Builder’ package lets them complete a questionnaire, select a style, and walk out with a CD Rom or flash drive containing a one-page résumé , cover and thank you letters, all that is needed for entry-level job applications,” she explained.

“We are cash only. Seeing hundreds of dollars pass through her hands was too great a temptation for ‘Taylor,’ who worked for us about two years and comes from a prominent family that can trace its roots to the founding of the university.

“CCTV security video shows Taylor repeatedly stuffing customers’ cash into her purse, and our data reveals no accounting entry for dozens of résumés which were created during a one-month time frame when she was the only person working. The loss comes to $3,500.

“She lives with her parents and I want to send her and them a letter, along with a CD rom video clip, giving an opportunity to repay the loss or I will go to the police. My boyfriend reads your column and felt it best to ask you before doing anything.”

Where common sense collides with the law

We ran our reader’s question by Jane and Riley Parker, both California licensed private investigators. “If Jill sends that letter,” Jane warns, “she opens herself up to being charged with blackmail, or extortion as it is sometimes called, which is a felony.”

“Blackmail?” you are probably thinking, “Isn’t blackmail like threatening to expose someone’s affair unless they pay up? Jill is just giving the girl or her family a chance to make it right before going to the police. That’s fair, it’s the right thing to do, and it’s just plain common sense, so how could it be blackmail?”

“Yes,” Riley agrees, “You would think that it is common sense, but in this instance, common sense and the law collide. It is the first thing private investigators warn clients not to do when employee theft is discovered,” adding, “They are usually frustrated and find this to be counter-intuitive, until we read them the legal definition of blackmail.”

All states define blackmail and extortion just about the same way. In California, Penal Code section 518 makes it illegal to use force or threats to compel someone to give you money or other property. This includes threats to accuse the targeted person of a crime, to reveal a secret or to expose the person to embarrassment.

Go to the police - Just don’t threaten to unless paid

So, Jill can go to the police and request that criminal charges are filed against Taylor, but she cannot use that as leverage to get the embezzler to cough up the $3,500. Think of this another way; you have the legal right to do something, but can’t threaten to do it unless your money or property is returned.

Let’s say that Jill wants to give Taylor a chance to make things right. What could she — or better yet, her lawyer — state in such a letter to Taylor and not get in trouble?

“In our experience, we’ve found that an embezzling employee isn’t going to be motivated by a phone call or letter from the employer. Instead, an attorney’s letter advising of legal consequences should the money not be repaid bring this to a higher level in the crook’s mind and is always worth the small expense,” the Parkers strongly maintain.

Be careful whom you tell

A moment ago you just read the words, “in a letter to Taylor.” We did not say, “To Taylor and her family.” Why?

“Dennis, you do not want to be the victim of embezzlement and then sued by the former employee for defamation, but we have seen this happen far too often. What if the employer is wrong? What if there is a reasonable explanation for what looked like theft?

“Do not contact family, friends and neighbors. Unless instructed by your attorney, you should not discuss your investigation with other employees as you might not know their relationship. And whatever you do, don’t offer special favors to co-workers if they will snitch on the suspected embezzler.

“We have seen employers who sought to crush a former employee instead be forced to pay fortunes to defend themselves. Some battles are not worth fighting,” Jane and Riley Parker concluded.

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Are you counting on a public pension and Social Security to fund your retirement? In the past, retirees with a public pension were not entitled to receive their full Social Security benefit, but that has changed with the passage of new legislation.

The passage of the Social Security Fairness Act ensures that when you retire, you'll get your public pension, and your full Social Security benefit.

Who are the retirees entitled to both a public pension and Social Security? Typically, those who had two careers, having worked both for the government and for the private sector. Perhaps, in one job, you were a government employee whose earnings were exempt from the Social Security payroll tax. In another job, you worked in the private sector, paying into the Social Security system. As a result, you were entitled to a pension and Social Security Benefits. But previously that would have meant that your benefits would have been reduced, due to the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).

Legislation to fully repeal the WEP and the GPO, H.R.82 - Social Security Fairness Act of 2023, was signed into law on January 5, 2025, and applies retroactively to benefits payable for months after December 2023. So far, 85% of eligible retired public sector employees or 2.4 million retirees have received their retroactive payment to reflect higher benefits owed for 2024/2025 and saw their monthly benefit increase take effect in April when they received their March payment.

The repeal comes with a price tag. The Old-Age and Survivors Insurance (OASI) Trust Fund is less than 10 years from insolvency. The Congressional Budget Office (CBO) expects that the bill will advance the exhaustion date for the combined trust funds (the OASI and Disability Insurance (DI) Trust Funds) by roughly a half a year, according to its Cost Estimate of the legislation. In total, the CBO estimates that repealing the WEP would increase off-budget direct spending by $101 billion over the 2024-2034 period.

"At a time when we’re already borrowing $2 trillion a year and retirees are already slated to see a 21% benefit cut – an average of $16,500 for a newly retiring couple in 2033 – in just nine years, why would we make it a 22%, $17,300 cut in eight and a half years instead?" said Maya MacGuineas, president of the Committee for a Responsible Federal Budget.

The CBO did identify some savings coming from the repeal. It projected that increased benefits for some recipients would disqualify them for the Supplemental Nutrition Assistance Program (SNAP) and decrease on-budget spending by by $2 billion over the 2024-2034 period.

How the Social Security Fairness Act of 2023 works

Previously, the WEP reduced benefits for retired or disabled workers with fewer than 30 years of employment in which they paid into the social security system, if the workers also received non-covered pensions. A non-covered pension is a pension paid by an employer that does not withhold Social Security taxes from your salary, typically, state and local governments.

The GPO reduced the spousal or surviving spousal benefits of people who receive pensions based on non-covered employment. The Social Security Fairness Act has repealed both reductions.

Social Security benefits are calculated by applying three different percentages to a person's lifetime average indexed monthly earnings (AIME) and adding them up to obtain the worker's monthly benefit (primary insurance amount (PIA) at full retirement age. The WEP PIA replicates the regular PIA but scales down the first percentage from 90% to 40% in increments of five percentage points for workers with less than 30 years of paying into the SS system.

The Social Security Fairness Act repeals the WEP PIA that would reduce monthly benefits for non-covered employees and raises the first factor to the standard 90% for all workers.

The public pension "penalty" has been eliminated

To understand how the WEP worked, you need to know how Social Security calculates benefits. Social Security looks at the average monthly earnings for the years a person paid into the system. Benefits are intended to replace a percentage of a worker's pre-retirement earnings. Lower-income workers get a larger percentage of their earnings replaced than higher-income workers.

Until the mid-1980s, the Social Security Administration used a formula that treated government employees, who may have contributed to the system for only a few years, as low-wage workers. As a result, public employees received a disproportionately large Social Security benefit — plus their government pension. In 1983, Congress ended this windfall.

However, the windfall provision never applied to government pensioners who paid into the Social Security system for 30 years or longer. Nor did it apply to workers who received a military pension or a private pension.

Also, a government pensioner who applied for a spousal or survivor benefit based on his or her spouse's Social Security earnings record will face cuts thanks to the Government Pension Offset (GPO). Typically, a spousal benefit is about 50% of a husband or wife's benefit if that's more than the spouse would receive based on his or her work record. A survivor generally receives 100% of a deceased spouse's benefit. When the government pension offset applied, your Social Security spousal or survivor benefit would have been reduced by two-thirds of your government pension.

How much more money can you expect?

The CBO estimates that eliminating the WEP would increase monthly benefits in December 2025 by $360, on average, for 2.1 million Social Security beneficiaries, or about 3 % of all Social Security beneficiaries.

By eliminating the GPO, the CBO estimates monthly benefits in December 2025 will increase by an average of $700 for 380,000 spouses and by $1,190 for the 390,000 surviving spouses.

Where to find more details

Read Social Security Fairness Act Payments Checklist: Nine Things to Know to find out more about the payments and go the dedicated SSA webpage for updates.

If you are receiving a public pension and are now interested in filing for benefits, you may file online or apply in person.

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