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<p align="center"><img border="0" src="hronthejob.jpg" width="504" height="54"></p>
<h2 align="center" style="text-align:center"><font face="Verdana"><b>EMPLOYER�S
TOP LEGAL HR MISTAKES.</b></font></h2>
<p align="center" style="text-align:center"> </p>
<p class="MsoNormal"><font face="Verdana" size="2">When we perform an HR Audit
(Assessment) for employers, we usually have several recommendations to make
regarding HR practices, effectiveness and compliance with regulations. </font>
</p>
<p class="MsoNormal"><font face="Verdana" size="2">There are certain problems,
however, that seem to be consistent in their occurrence. Although every company
has different circumstances and problems, the following 6 items are among the
most common legal mistakes we find.</font></p>
<p class="MsoNormal" style="text-indent: -.5in; margin-left: .75in">
<font face="Verdana" size="2">1.</font><span style="font-style: normal; font-variant: normal; font-weight: normal; font-family: Verdana"><font size="2"> </font></span><font face="Verdana"><b><font size="2">Classifying
Non-Exempt Employees As Exempt</font></b><font size="2">. This is the single
most common mistake we find and can also be the most costly. This is the
current �hot-button� for Dept. Of Labor (DOL) audits. When DOL re-classifies an
Exempt employee as Non-exempt, all back overtime wages must be paid. Back pay,
fines and costs can break a company.</font></font></p>
<p class="MsoNormal" style="text-indent: -.5in; margin-left: .75in">
<font face="Verdana" size="2">2.</font><span style="font-style: normal; font-variant: normal; font-weight: normal; font-family: Verdana"><font size="2"> </font></span><font face="Verdana"><b><font size="2">Failing
To Complete And Properly Maintain I-9 Forms.</font></b><font size="2">
Incomplete I-9s and expired visas have cost employers as much as $100,000 in
fines.</font></font></p>
<p class="MsoNormal" style="text-indent: -.5in; margin-left: .75in">
<font face="Verdana" size="2">3.</font><span style="font-style: normal; font-variant: normal; font-weight: normal; font-family: Verdana"><font size="2"> </font></span><font face="Verdana"><b><font size="2">Failing
To Document Poor Performance Or Disciplinary Actions.</font></b><font size="2">
Supervisors do not like giving bad performance reviews or warnings, particularly
to minorities and women. When they later decide to terminate a poor performing
employee, they have no records to support their action. Many wrongful
termination suits are lost by employers simply because there is no regularity in
their performance documentation. </font></font></p>
<p class="MsoNormal" style="text-indent: -.5in; margin-left: .75in">
<font face="Verdana" size="2">4.</font><span style="font-style: normal; font-variant: normal; font-weight: normal; font-family: Verdana"><font size="2"> </font></span><font face="Verdana"><b><font size="2">Failing
To Discharge Employees When It�s Time.</font></b><font size="2"> Supervisors
tend to neglect following-up properly on warnings and probations. When an
employee will-not or cannot perform well, supervisors tend to keep on allowing
more chances long after it�s apparent that it�s fruitless. They are not only
setting a low standard that they may then have to allow to other employees but,
more importantly, the employee continues to lock-up a job that is not being
adequately performed. </font></font></p>
<p class="MsoNormal" style="text-indent: -.5in; margin-left: .75in">
<font face="Verdana" size="2">5.</font><span style="font-style: normal; font-variant: normal; font-weight: normal; font-family: Verdana"><font size="2"> </font></span><font face="Verdana"><b><font size="2">Failure
To Train Supervisors And Employees In Handling Sexual Harassment. </font></b>
<font size="2">The single most effective defense in a sexual harassment suit is
to document that you have trained your Supervisors (and employees) in the proper
identification, prevention and handling of sexual harassment.
However, don�t become overzealous. Some employers actually go overboard and
establish too harsh a policy for them to support. For example, don�t state,
�all forms of harassment are forbidden�. Warning an employee for bad
performance or behavior can be determined to be �harassment�.</font></font></p>
<p class="MsoNormal" style="text-indent: -.5in; margin-left: .75in">
<font face="Verdana" size="2">6.</font><span style="font-style: normal; font-variant: normal; font-weight: normal; font-family: Verdana"><font size="2"> </font></span><font face="Verdana"><b><font size="2">Requiring
Employees To Sign Legal Documents That can�t Be Supported.</font></b><font size="2">
There are many examples of this but the main mistakes are:</font></font></p>
<p class="MsoNormal" style="text-indent: -.25in; margin-left: 1.0in"><b>
<font face="Verdana" size="2">A.</font><span style="font-style: normal; font-variant: normal; font-weight: normal; font-family: Verdana"><font size="2"> </font></span></b><font face="Verdana" size="2">Requiring
employees to sign Non-Compete agreements that are too restrictive, such as
forbidding an employee to work for any competitor within 100 miles for a period
of 2 years.</font></p>
<p class="MsoNormal" style="text-indent: -.25in; margin-left: 1.0in"><b>
<font face="Verdana" size="2">B.</font><span style="font-style: normal; font-variant: normal; font-weight: normal; font-family: Verdana"><font size="2"> </font></span></b><font face="Verdana" size="2">Requiring
employees to sign a receipt for an Employee Handbook on the first day stating
that they <b><i>have read</i></b> it. And often by employees who do not read,
write or speak English. </font></p>
<p class="MsoNormal" style="margin-left:.75in"><font face="Verdana" size="2">
Such agreements are often not held up in the event that charges are later filed.
</font></p>
<hr>
<h2 style="margin-left:.75in" align="center">
<font face="Verdana" color="#008000">Have an employment question?</font></h2>
<h3 style="margin-left:.75in" align="center"><font face="Verdana">Send it to
<a href="mailto:[email protected]?subject=From HR On The Job">
[email protected]</a></font></h3>
<p style="margin-left:.75in" align="center"><b><font face="Verdana" size="2">
Please include Company Name and Association in your e-mail. Company
identification will be kept confidential.</font></b></p>
<hr>
<table border="0" width="91%" height="376">
<tr>
<td width="100%" height="370">
<h2 align="left"><b><u><font
face="Verdana, Arial, Helvetica, sans-serif">Hitchhiking on the Information
Highway</font></u></b></h2>
<p align="left"><font face="Verdana, Arial, Helvetica, sans-serif"><b><font
size="4" color="#FF0000">Dateline: January 2004</font></b></font></p>
<p class="MsoNormal"><i><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">Note. Although we attempt to provide the HRU update on the first
of each month, we are normally delayed awaiting the release of several
monthly government statistical reports. We will hereafter update the information
as each report becomes available without waiting for all of them to be
released.</font></i></p>
<h3><u><font face="Verdana"><b>A New American Every 12 Seconds</b></font></u></h3>
<p class="MsoNormal"><font face="Verdana" size="2">Current estimates by
the U.S. Census Bureau show that the population of the United States as of
January 1, 2004 is 292.3 million. That�s a 1% increase in 2003. Will we
see a 100% increase in the next hundred years by 2104? Our population in
1900 was 76.1 million and that means that we�ve had a 400% increase in the
last hundred years!</font></p>
<p class="MsoNormal"><font face="Verdana" size="2">For 2003, that�s one
birth every 8 seconds and one death every 13 seconds. Couple this with
the net migration into the U.S. from other countries and you arrive at the
calculated figure one new U.S. resident every 12 seconds.</font></p>
<h3><u><font face="Verdana"><b>Was Santa Good To You This Year?</b></font></u></h3>
<p class="MsoNormal"><font face="Verdana" size="2">Benefit News, an
information source for employee benefit administrators, published the
following results of their survey on holiday gift giving to employees.</font></p>
<p class="MsoNormal"><font face="Verdana" size="2">Question: What did you
give employees this year (2003) for the holidays?</font></p>
<table border="0" cellpadding="4" cellspacing="4" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber8">
<tr>
<td width="20%" align="right"><font face="Verdana" size="2">40%</font></td>
<td width="80%"><font face="Verdana" size="2">A Holiday Party</font></td>
</tr>
<tr>
<td width="20%" align="right"><font face="Verdana" size="2">23%</font></td>
<td width="80%"><font face="Verdana" size="2">A Bonus And A Holiday
Party</font></td>
</tr>
<tr>
<td width="20%" align="right"><font face="Verdana" size="2">20%</font></td>
<td width="80%"><font face="Verdana" size="2">Nothing</font></td>
</tr>
<tr>
<td width="20%" align="right"><font face="Verdana" size="2">10%</font></td>
<td width="80%"><font face="Verdana" size="2">Other</font></td>
</tr>
<tr>
<td width="20%" align="right"><font face="Verdana" size="2">7% </font></td>
<td width="80%"><font face="Verdana" size="2">A bonus</font></td>
</tr>
</table>
<h3><u><font face="Verdana"><b>What Do You Pay Employees For? </b></font>
</u></h3>
<h4><font face="Verdana"><b>Exempt vs. Non-Exempt</b></font></h4>
<p class="MsoNormal"><font face="Verdana" size="2">The number one legal
mistake employers make is to misclassify their employees FLSA (Federal
Labor Standards Act) status. Are they exempt or non-exempt? Their
decision is often made by determining that employees who are paid a
weekly, monthly or annual salary are automatically exempt. All others are
hourly employees who must then be paid overtime. </font></p>
<p class="MsoNormal"><font face="Verdana" size="2">The truth is that how
you pay an employee has little to do with determining their FLSA status.
The issue is decided based on the content of the work assigned to that
specific job. Currently, the federal government is preparing to make
changes in those regulations that will have a significant effect on who
gets overtime. </font></p>
<p class="MsoNormal"><font face="Verdana" size="2">But once you have made
the decision on exempt vs. non-exempt it is worthwhile to ask yourself,
�Is there a difference in what I pay an exempt vs. a non-exempt employee
for? Don�t I just pay them both to show up and work?� The answer may
help in evaluating the work of your employees.</font></p>
<h4><font face="Verdana"><b>Non-Exempt:</b></font></h4>
<p class="MsoNormal"><font face="Verdana" size="2">This is the classic
hourly worker. These employees get paid for each hour they work and 1 �
time for all hours worked over 40 hours in a workweek.</font></p>
<p class="MsoNormal"><font face="Verdana" size="2">When the non-exempt
employee reports to work, they are there to <i>surrender control of their
time to you. </i>If you give them no standing procedures, they can sit in
one spot all day long and you still have to pay them for their time.
That�s why you give them standing orders, regular procedures and even
instructions on what to do when there�s nothing to do. </font></p>
<p class="MsoNormal"><font face="Verdana" size="2">They are surrendering
control of their time to you to use as you determine. </font></p>
<p class="MsoNormal"><font face="Verdana" size="2">You would more rigidly
control their reporting time, their daily activity as well as what they do
and how they do it. </font></p>
<p class="MsoNormal"><font face="Verdana" size="2">To use non-exempt
people best, you would identify the procedures to be followed in each
specific job to the most efficient, proven methods known to you. </font>
</p>
<h4><font face="Verdana"><b>Exempt:</b></font></h4>
<p class="MsoNormal"><font face="Verdana" size="2">These employees are
always salaried because you are <u>not</u> paying them for control of
their hours. <i>You are paying them to produce an end result.</i> You
generally have less concern about their hour-by-hour activity or precisely
how they get things done. It may not always be important when they choose
to do what or how long a specific process takes. All these things may be
important, but much less so than with the non-exempt, hourly worker.
</font></p>
<p class="MsoNormal"><font face="Verdana" size="2">Exempts are expected to
be more focused on achieving the end results by the use of their
professional judgment, their professional knowledge, and their ability to
make choices among many learned things. </font></p>
<p class="MsoNormal"><font face="Verdana" size="2">They are expected to do
what it takes to get the job done whether that means to use better
methods, to work longer hours or to find other resources. Their job is
more focused on getting the end result accomplished.</font></p>
<p class="MsoNormal"><font face="Verdana" size="2">To use non-exempts more
efficiently you would identify the end result more clearly. You would
assure that the exempt employee is evaluated on the end result not the
process.</font></p>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber9">
<tr>
<td width="22%"><font face="Verdana" size="2"><u>Non-Exempt</u>:</font></td>
<td width="78%"><font face="Verdana" size="2">Paid to surrender
control of their time</font></td>
</tr>
<tr>
<td width="22%"><font face="Verdana" size="2"><u>Exempt:</u></font></td>
<td width="78%"><font face="Verdana" size="2">Paid to produce an end
result</font></td>
</tr>
</table>
<h3><u><font face="Verdana"><b>This New law May Make You More Productive.</b></font></u></h3>
<p class="MsoNormal"><font face="Verdana" size="2">Several surveys are
showing that some employees are spending as much as 35% of their work day
on computer activities �unrelated to their work�. 22% spend up to 15
minutes each day on Spam alone. 2% spend more than one hour!</font></p>
<p class="MsoNormal"><font face="Verdana" size="2">Although this new law
is not going to stop employees from playing solitaire or running a retail
business on E-Bay, the President did sign the new �CAN SPAM Act Of 2003�
to be effective January 1, 2004. Under the new law all unsolicited
commercial e-mails must provide you with clear Opt-Out instructions.</font></p>
<p class="MsoNormal"><font face="Verdana" size="2">Senders may not mask
their return e-mail address, use a misleading subject line or to steal
e-mail addresses from the web. </font></p>
<p class="MsoNormal"><font face="Verdana" size="2">The Federal trade
Commission (FTC) also plans to establish a �Do Not E-Mail� list later this
year.</font></p>
<p class="MsoNormal"><font face="Verdana" size="2"> </font></p>
<h2 class="MsoNormal"><font face="Verdana, Arial, Helvetica, sans-serif"><span style="text-decoration: none"><b><u>QUOTES
OF THE MONTH</u></b></span></font></h2>
<span style="text-decoration: none"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">
<p class="MsoNormal"><font face="Verdana" size="2">�For they conquer who
believe they can�</font></p>
<p class="MsoNormal"><font face="Verdana" size="2">
<i>Dryden</i></font></p>
<p class="MsoNormal"><font face="Verdana" size="2">�Let your sympathies
and your compassion be always with the underdog in the fight. This is
magnanimity. But always bet on the other one, this is business�</font></p>
<p class="MsoNormal"><font face="Verdana" size="2">
<i>Mark Twain</i></font></p>
<p class="MsoNormal"><font face="Verdana" size="2">�Even if your on the
right track, you can still get run over if you just sit there.�</font></p>
<p class="MsoNormal"><font face="Verdana" size="2">
<i>Zig Ziggler</i></font></p>
<p class="MsoNormal"><font face="Verdana" size="2">�They that give up
essential liberty to obtain a little temporary safety, deserve neither
liberty nor safety�</font></p>
<p class="MsoNormal"><font face="Verdana" size="2">
<i>Benjamin Franklin</i></font></p>
<p class="MsoNormal"><font face="Verdana" size="2">�I�m waiting to see if
my current career strategy will be successful. I told the interviewer
that if I didn�t get this job, they were going to put me to sleep�</font></p>
<p class="MsoNormal"><font face="Verdana" size="2">
<i>Steven Wright</i></font></p>
<p class="MsoNormal"><font face="Verdana" size="2">�A nation trying to tax
itself into prosperity, is like a man standing on a bucket and trying to
lift himself by the handle.�</font></p>
<p class="MsoNormal"><font face="Verdana" size="2">
<i>Winston Churchill</i></font></p>
<p class="MsoNormal"><font face="Verdana" size="2">�Motivation is like a
fire from within. If someone else has to light that fire under you,
chances are it will burn very briefly�</font></p>
<p class="MsoNormal"><font face="Verdana" size="2">
<i>Stephen R. Covey</i></font></p>
<hr width="75%">
<table border="0" width="33%">
<tr>
<td width="64%" valign="top">
<div style="border-style: solid; border-width: 1; padding-left: 4; padding-right: 4; padding-top: 1; padding-bottom: 1">
<p align="left"><font size="-1"
face="Verdana, Arial, Helvetica, sans-serif"><b>Minimum Wage:</b></font></p>
</div>
</td>
<center>
<td width="100%" valign="top"><font size="-1"
face="Verdana, Arial, Helvetica, sans-serif">$5.15/hr.</font></td>
</center>
</tr>
</table>
<table border="0" width="99%">
<tr>
<td width="13%" valign="middle" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-top-style: solid; border-top-width: 1"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>Average
Hourly Income:</b></font></td>
<td width="67%" style="border-left-style: solid; border-left-width: 1">
<table border="1" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber4" height="76">
<tr>
<td width="100%" height="76">
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber5">
<tr>
<td width="50%" align="center"><b><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">Hourly</font></b></td>
<td width="50%" align="center"><b><font size="-1" face="Verdana, Arial, Helvetica, sans-serif">Weekly</font></b></td>
</tr>
</table>
<table border="1" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber6" height="50">
<tr>
<td width="25%" height="50">
<p align="center"><u><font size="-1">December</font></u><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><u>
2002</u><br>
$15.26</font>
</td>
<td width="25%" height="50">
<p align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><u>
December
2003<br>
</u>$15.51</font></td>
<td width="25%" height="50">
<p align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><u>
December
2002</u><br>
$520.37</font>
</td>
<td width="25%" height="50">
<p align="center"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><u>
December
2003</u><br>
$523.34</font>
</td>
</tr>
</table>
</td>
</tr>
</table>
</td>
<td width="20%">
<table border="0" width="99%" height="78">
<tr>
<td width="100%" height="40">
<p align="center"><font size="-1"
face="Verdana, Arial, Helvetica, sans-serif"><b><u>Family of<br>
Four</u></b></font>
</td>
</tr>
<tr>
<td width="100%" height="30">
<p align="center"><font size="-1"
face="Verdana, Arial, Helvetica, sans-serif">$64,000 (annual)</font>
</td>
</tr>
</table>
</td>
</tr>
<tr>
<td width="13%" bgcolor="#C0C0C0" style="border-left-style: solid; border-left-width: 1; border-right-style: solid; border-right-width: 1; border-bottom-style: solid; border-bottom-width: 1"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>Federal<br>
Poverty Level:</b></font></td>
<td width="67%" bgcolor="#C0C0C0" style="border-left-style: solid; border-left-width: 1"> </td>
<td width="20%" bgcolor="#C0C0C0">
<p align="center"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">$17,650 (annual)</font>
</td>
</tr>
</table>
<hr noshade color="#000000">
<table border="0" width="99%">
<tr>
<td width="100%" style="border-style: solid; border-width: 1">
<h3><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1"><b><u>Benefits <br>
</u></b><i>as a Percentage of Payroll</i></font></h3>
</td>
</tr>
</table>
<table border="0" width="100%" height="275" style="border-collapse: collapse" bordercolor="#111111" cellpadding="2">
<tr>
<td width="31%" height="45" valign="top" bordercolor="#000080" bgcolor="#C0C0C0">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>1997</b></font></p>
</td>
<td width="5%" height="45" valign="top" align="left" bordercolor="#000080" bgcolor="#C0C0C0">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>24.8%</b></font></p>
</td>
</tr>
<tr>
<td width="31%" height="46" valign="top" bordercolor="#000080" bgcolor="#C0C0C0">
<p><font size="-1"><b><font face="Verdana, Arial, Helvetica, sans-serif">
1998</font></b></font></p>
</td>
<td width="5%" height="46" valign="top" align="left" bordercolor="#000080" bgcolor="#C0C0C0">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>23.4%</b></font></p>
</td>
</tr>
<tr>
<td width="31%" height="46" valign="top" bordercolor="#000080" bgcolor="#C0C0C0">
<p><font size="-1"><b><font face="Verdana, Arial, Helvetica, sans-serif">
1999</font></b></font></p>
</td>
<td width="5%" height="46" valign="top" align="left" bordercolor="#000080" bgcolor="#C0C0C0">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>22.8%</b></font></p>
</td>
</tr>
<tr>
<td width="31%" height="46" valign="top" bordercolor="#000080" bgcolor="#C0C0C0">
<p><font size="-1"><b><font face="Verdana, Arial, Helvetica, sans-serif">
2000</font></b></font></p>
</td>
<td width="5%" height="46" valign="top" align="left" bordercolor="#000080" bgcolor="#C0C0C0">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>26.1%</b></font></p>
</td>
</tr>
<tr>
<td width="31%" height="46" valign="top" bordercolor="#000080" bgcolor="#C0C0C0">
<p><font size="-1"><b><font face="Verdana, Arial, Helvetica, sans-serif">
2001</font></b></font></p>
</td>
<td width="5%" height="46" valign="top" align="left" bordercolor="#000080" bgcolor="#C0C0C0">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>27.1%</b></font></p>
</td>
</tr>
<tr>
<td width="31%" height="46" valign="top" bordercolor="#000080" bgcolor="#C0C0C0">
<p><font size="-1"><b><font face="Verdana, Arial, Helvetica, sans-serif">
2002</font></b></font></p>
</td>
<td width="5%" height="46" valign="top" align="left" bordercolor="#000080" bgcolor="#C0C0C0">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>
30.0%</b></font></p>
</td>
</tr>
<tr>
<td width="31%" height="46" valign="top" bordercolor="#000080" bgcolor="#C0C0C0">
<span style="text-decoration: none"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">
<b><i> In
2002, employee benefits represented 30% of the total compensation
an employee received.</i></b>
<p><b><i> Those
benefits ranked are:</i></b>
</font></span>
<p> </td>
<td width="5%" height="46" valign="top" align="left" bordercolor="#000080" bgcolor="#C0C0C0">
</td>
</tr>
<tr>
<td width="31%" height="46" valign="top" bordercolor="#000080" bgcolor="#C0C0C0">
<span style="text-decoration: none"><font size="-1" face="Verdana, Arial, Helvetica, sans-serif">
Health Care Benefits</font></span></td>
<td width="5%" height="46" valign="top" align="left" bordercolor="#000080" bgcolor="#C0C0C0">
<span style="text-decoration: none"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">
11.5%</font></span><p> </td>
</tr>
<tr>
<td width="31%" height="46" valign="top" bordercolor="#000080" bgcolor="#C0C0C0">
<span style="text-decoration: none"><font size="-1" face="Verdana, Arial, Helvetica, sans-serif">
Paid Time Off</font></span></td>
<td width="5%" height="46" valign="top" align="left" bordercolor="#000080" bgcolor="#C0C0C0">
<span style="text-decoration: none"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">
10.4%</font></span><p> </td>
</tr>
<tr>
<td width="31%" height="46" valign="top" bordercolor="#000080" bgcolor="#C0C0C0">
<span style="text-decoration: none"><font size="-1" face="Verdana, Arial, Helvetica, sans-serif">
Retirement Savings Plan</font></span></td>
<td width="5%" height="46" valign="top" align="left" bordercolor="#000080" bgcolor="#C0C0C0">
<span style="text-decoration: none"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">
8.1%</font></span><p> </td>
</tr>
<tr>
<td width="31%" height="46" valign="top" bordercolor="#000080" bgcolor="#C0C0C0">
<span style="text-decoration: none"> <font size="-1" face="Verdana, Arial, Helvetica, sans-serif"><b>Total
Benefits (As a percentage of total compensation)</b></font></span></td>
<td width="5%" height="46" valign="top" align="left" bordercolor="#000080" bgcolor="#C0C0C0">
<span style="text-decoration: none"> <font size="-1" face="Verdana, Arial, Helvetica, sans-serif"><b>
30%</b></font></span></td>
</tr>
<tr>
<td width="31%" height="46" valign="top" bordercolor="#000080" bgcolor="#C0C0C0">
</td>
<td width="5%" height="46" valign="top" align="left" bordercolor="#000080" bgcolor="#C0C0C0">
</td>
</tr>
</table>
<hr noshade color="#000000">
<b>
<table border="0" width="100%">
<tr>
<td width="37%" style="border-style: solid; border-width: 1">
<p align="left"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1"><b>IRS Mileage Allowance :</b></font></p>
</td>
<center>
<td width="63%" style="border-left-style: solid; border-left-width: 1">
<div align="left"><font size="-1"><b>37.5</b> </font><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">cents per mile<br>
</font></div>
</td>
</center>
</tr>
</table>
<table border="0" width="100%" bgcolor="#C0C0C0">
<tr>
<td width="32%" style="border-style: solid; border-width: 1">
<p align="left"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1"><b>Postage:</b></font></p>
</td>
<center>
<td width="68%" style="border-left-style: solid; border-left-width: 1"> </td>
</center>
</tr>
<tr>
<td width="32%" style="border-top-style: solid; border-top-width: 1"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">1 oz.</font></td>
<td width="68%"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">.37</font></td>
</tr>
<tr>
<td width="32%"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">Each additional ounce</font></td>
<td width="68%"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">.23</font></td>
</tr>
<tr>
<td width="32%"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1"><i>Postcards</i></font></td>
<td width="68%"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">.23</font></td>
</tr>
</table>
</b>
<hr noshade color="#000000">
<b>
<p>
<table border="0" width="38%" bgcolor="#FFFFFF" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0" cellspacing="0">
<tr>
<td width="100%" style="border-style: solid; border-width: 1"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1"><b>Where Uncle Sam got his money in 2003:</b></font></td>
</tr>
</table>
<p align="center">
<img border="0" src="../graphics/2003usrevenue.gif" width="630" height="371"></p>
<hr noshade color="#000000">
<table border="0" width="38%" bgcolor="#C0C0C0" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0" cellspacing="0">
<tr>
<td width="100%" style="border-style: solid; border-width: 1"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1"><b>Where your federal tax dollar went in 2003:</b></font></td>
</tr>
</table>
<p align="center">
<img border="0" src="../graphics/2003usbudget.gif" width="632" height="402"></p>
<hr noshade color="#000000">
<table border="0" width="98%">
<tr>
<td width="34%" style="border-style: solid; border-width: 1">
<p align="left"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1"><b><u>Population:</u></b></font></p>
</td>
<center>
<td width="82%" style="border-left-style: solid; border-left-width: 1"> </td>
</center>
</tr>
<tr>
<td width="34%" style="border-top-style: solid; border-top-width: 1"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1"><b>World</b></font></td>
<td width="82%">
<p align="left"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">6.3 Billion</font>
</td>
</tr>
<tr>
<td width="34%"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1"><b>U.S.</b></font></td>
<td width="82%">
<p align="left"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">292.3 Million</font>
</td>
</tr>
</table>
</b>
<hr noshade color="#000000">
<table border="1" width="99%" bgcolor="#C0C0C0">
<tr> <b>
<td width="48%" style="border-style: solid; border-width: 1">
<p align="left"><b> <font face="Verdana, Arial, Helvetica, sans-serif" size="-1">U.S.
Workforce</font></b></p>
</td>
</b>
<center>
<b>
<td width="12%" align="center"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1"><u><b>
November 2002</b></u></font></td>
<td width="12%" align="center"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1"><u><b>
November 2003</b></u></font></td>
</b>
</center>
</tr>
<tr>
<td width="48%"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">U.S. Civilian Workforce</font></td>
<td width="12%" align="center"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1">144,807,000</font></td>
<td width="12%" align="center"><font size="-1">146,878,000</font></td>
</tr>
<tr>
<td width="48%"><font size="-1">Number Employed</font></td>
<td width="12%" align="center"> <font size="-1">136,599,000</font></td>
<td width="12%" align="center"> <font size="-1">138,479,000</font></td>
</tr>
<tr>
<td width="48%"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">Number Unemployed</font></td>
<td width="12%" align="center"> <font size="-1">8,209,000</font></td>
<td width="12%" align="center"> <font face="Verdana, Arial, Helvetica, sans-serif" size="-1">
8,</font><font size="-1">398,000</font></td>
</tr>
<tr>
<td width="48%"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1">Unemployment Rate</font></td>
<td width="12%" align="center">
<p><font size="-1">5.7</font><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">%</font></p>
</td>
<td width="12%" align="center">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">5.7%</font></p>
</td>
</tr>
</table>
<hr noshade color="#000000">
<p><b>COMPARATIVE WORLD UNEMPLOYMENT RATE FOR MID-YEAR 2003:</b></p>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber7">
<tr>
<td width="40%"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">France</font></td>
<td width="60%"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">9.2%</font></td>
</tr>
<tr>
<td width="40%"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">Germany</font></td>
<td width="60%"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">9.2%</font></td>
</tr>
<tr>
<td width="40%"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">Canada</font></td>
<td width="60%"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">7.0%</font></td>
</tr>
<tr>
<td width="40%"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">Sweden</font></td>
<td width="60%"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">6.1%</font></td>
</tr>
<tr>
<td width="40%"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">United
States</font></td>
<td width="60%"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">6.1%</font></td>
</tr>
<tr>
<td width="40%"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">Japan</font></td>
<td width="60%"><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">5.5%</font></td>
</tr>
</table>
<hr noshade color="#000000">
<table border="0" width="98%" bgcolor="#FFFFFF" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0" cellspacing="0" height="96">
<tr>
<td width="25%" style="border-style: solid; border-width: 1" height="48">
<p align="left"><font face="Verdana, Arial, Helvetica, sans-serif"
size="-1"><b>Absentee Rates (annualized)</b></font></p>
</td>
<center>
<td width="10%" align="center" valign="top" style="border-left-style: solid; border-left-width: 1" height="48"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b><u>1997</u></b></font></td>
<td width="10%" align="center" valign="top" height="48"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b><u>1998</u></b></font></td>
<td width="11%" align="center" valign="top" height="48"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b><u>1999</u></b></font></td>
<td width="11%" align="center" valign="top" height="48"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b><u>2000</u></b></font></td>
<td width="11%" align="center" valign="top" height="48"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b><u>2001</u></b></font></td>
<td width="11%" align="center" valign="top" height="48"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b><u>2002</u></b></font></td>
<td width="11%" align="center" valign="top" height="48"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b><u>3rd
Quarter<br>
2003</u></b></font></td>
</center>
</tr>
<tr>
<td width="25%" style="border-top-style: solid; border-top-width: 1" height="48">
<font face="Verdana, Arial, Helvetica, sans-serif" size="-1">Men equal
approximately 1/3 of all absenteeism<br>
Women approximately 2/3</font></td>
<td width="10%" align="center" valign="top" height="48"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1">2.0%</font></td>
<td width="10%" align="center" valign="top" height="48"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1">2.6%</font></td>
<td width="11%" align="center" valign="top" height="48"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1">2.4%</font></td>
<td width="11%" align="center" valign="top" height="48"><font
face="Verdana, Arial, Helvetica, sans-serif" size="-1">2.9%</font></td>
<td width="11%" align="center" valign="top" height="48">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">2.1%</font></p>
</td>
<td width="11%" align="center" valign="top" height="48">
<p><font size="-1">3.6</font><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">%</font></p>
</td>
<td width="11%" align="center" valign="top" height="48">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">1.9%</font></p>
</td>
</tr>
</table>
<hr noshade color="#000000">
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber3" bgcolor="#C0C0C0">
<tr>
<td width="100%">
<h4><b><font size="2" face="Verdana, Arial, Helvetica, sans-serif">PRODUCTIVITY
OF THE AMERICAN WORKFORCE</font></b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br>
(The amount of goods produced, divided by the number of work hours
it took to produce it)</font></h4>
</td>
</tr>
</table>
<p>
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="AutoNumber2" bgcolor="#C0C0C0">
<tr>
<td width="32%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>1992</b></font></p>
</td>
<td width="68%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">3.7%</font></p>
</td>
</tr>
<tr>
<td width="32%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>1993</b></font></p>
</td>
<td width="68%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">0.5%</font></p>
</td>
</tr>
<tr>
<td width="32%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>1994</b></font></p>
</td>
<td width="68%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">1.3%</font></p>
</td>
</tr>
<tr>
<td width="32%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>1995</b></font></p>
</td>
<td width="68%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">0.9%</font></p>
</td>
</tr>
<tr>
<td width="32%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>1996</b></font></p>
</td>
<td width="68%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">2.5%</font></p>
</td>
</tr>
<tr>
<td width="32%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>1997</b></font></p>
</td>
<td width="68%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">2.0%</font></p>
</td>
</tr>
<tr>
<td width="32%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>1998</b></font></p>
</td>
<td width="68%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">2.6%</font></p>
</td>
</tr>
<tr>
<td width="32%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>1999</b></font></p>
</td>
<td width="68%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">2.4%</font></p>
</td>
</tr>
<tr>
<td width="32%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>2000</b></font></p>
</td>
<td width="68%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">2.9%</font></p>
</td>
</tr>
<tr>
<td width="32%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>2001</b></font></p>
</td>
<td width="68%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">1.1%</font></p>
</td>
</tr>
<tr>
<td width="32%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1"><b>2002</b></font></p>
</td>
<td width="68%">
<p><font face="Verdana, Arial, Helvetica, sans-serif" size="-1">4.7%</font></p>
</td>
</tr>
<tr>
<td width="32%"> </td>
<td width="68%"> </td>
</tr>
</table>
</font></span>
<h3 align="center"><span style="text-decoration: none">
<font face="Verdana, Arial, Helvetica, sans-serif" size="2"><b>UP
8.1% IN THE 3<sup>rd</sup> QUARTER OF 2003</b></font></span></h3>
</td>
</tr>
</table>
<p><font face="Verdana" size="2">� 2004 William J. Cook</font></p>
</body>
</html>