Canadian HR Reporter

CANADIAN HR REPORTER May 15, 2017 18 INSIGHT GRAMMAR FIGHTS BACK PORTLAND, MAINE — The placement of a comma can have definite ramifications, as seen re- cently in a case involving dairy driv- ers in Maine. ey were looking for more than four years' worth of overtime pay, claiming some of the work they did should not have been covered by exemptions, according to the New York Times. "For want of a comma, we have this case," said judge David Barron in his 29-page court decision in the United States Court of Appeals for the First Cir- cuit. At issue? e Oxford or serial comma. In Maine's state law, over- time rules did not apply to: "e canning, processing, preserving, freezing, drying, marketing, stor- ing, packing for shipment or distri- bution of " certain products. If there was a comma after "shipment," it might have been clear the law ex- empted the distribution of perish- able foods. But the court sided with the drivers, saying the absence of a comma produced enough uncer- tainty to rule in their favour. DRIVE-THRU HERO HARBORCREEK TOWNSHIP, PA. — A quick-thinking McDon- ald's employee helped police nab a killer recently in Pennsylvania. Af- ter taking an order for chicken Mc- Nuggets and fries, the worker rec- ognized the driver of the white Fu- sion from news reports, according to CNN. e customer was Steve Stephens, the suspect in the mur- der of Robert Godwin in Cleveland, who posted a video of the killing on Facebook, leading to a nationwide manhunt. The McDonald's em- ployee called police and to delay his departure, Stephens was told his fries would take a few minutes. Not keen to wait, he drove off, but was surrounded by police. He later died. PLAYING IT COOL KANSAS CITY, MO. — Also playing it cool was a cashier at a sandwich chain in Kansas City. Jimmy John's employee Tuker Murray was taking a customer's order when the man suddenly pulled out a gun and pointed it at him, demanding money. But it felt like "amateur hour," said Murray, in talking to the BBC. "I just looked at it and looked back at him. And he cocked the gun and told me to open the drawer quietly, whis- pered it to me. And I just stared at him. And he said it again, he's like 'Open the drawer quietly.' I still just stared at him. at's when he put (the gun) in my face and told me to 'Open the f---ing drawer.' I hon- estly didn't want to do it… but my manager was behind me, he was like 'We'll give it to you, we'll give it to you.'" Fifty-four-year-old sus- pect Terry Rayford is now facing a sentence of 10 years in prison, hav- ing allegedly committed several other robberies. HUMANS FIGHT BACK UNITED STATES — With delivery drones and self-driving cars, fears about robots taking over the world have multiplied. But humans may not let it happen without a fight, according to CNN. at was seen recently when a drunken man al- legedly tipped over a 300-pound security robot in Mountain View, Calif. Knightscope, maker of the tall, egg-shaped robot, said it's had three bullying incidents since debuting its first prototype three years ago. One person attempted to tackle the robot and another tried to spray paint it until the robot sounded an alarm (and cap- tured the culprit's licence plate on camera). And in 2014, two Cana- dian academics sent a robot on a hitchhiking adventure as a social experiment, but when it got to Philadelphia, "Hitchbot" was badly mangled. With robots coming out of factories and joining the pub- lic, makers of these machines will have to figure out how to protect their automatons. W EIRD ORKPLACE THE Vol. 30 No. 9 – May 15, 2017 PUBLISHED BY Thomson Reuters Canada Ltd. One Corporate Plaza 2075 Kennedy Rd. Toronto, ON M1T 3V4 ©Copyright 2017 by Thomson Reuters Canada Ltd. All rights reserved. CANADIAN HR REPORTER is published 21 times a year. Publications Mail – Agreement # 40065782 Registration # 9496 – ISSN 0838-228X Director, Media Solutions, Canada: Karen Lorimer - (416) 649-9411 karen.lorimer@thomsonreuters.com EDITORIAL Publisher/Editor in Chief: Todd Humber - (416) 298-5196 todd.humber@thomsonreuters.com Editor/Supervisor: Sarah Dobson - (416) 649-7896 sarah.dobson@thomsonreuters.com News Editor Marcel Vander Wier - (416) 649-7837 marcel.vanderwier@thomsonreuters.com Employment Law Editor: Jeffrey R. 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Address changes and returns: Send changes and undeliverable Canadian addresses to: SUBSCRIBER SERVICES Canadian HR Reporter One Corporate Plaza 2075 Kennedy Rd. Toronto, ON M1T 3V4 CUSTOMER SERVICE Call: (416) 609-3800 (Toronto) (800) 387-5164 (outside Toronto) Fax: (416) 298-5082 (Toronto) (877) 750-9041 (outside Toronto) Email: customersupport. legaltaxcanada@tr.com LETTERS TO THE EDITOR todd.humber@thomsonreuters.com CHRR reserves the right to edit for length and clarity. Todd Humber Editor's Notes Please, taxman – give us back gift cards I t was the night before the tax deadline, and all through the house, not a creature was stir- ring — not even a T4. As I write this, I'm fresh off filing my 2016 taxes — as sure things go, it's still a touch better than death. But tax season also brings up my biggest pet peeve when it comes to employee recognition: Why can't I hand out a gift card for a job well done? Truthfully, nothing is stopping employers from sending staff on shopping sprees at the Bay, Best Buy, Coach, Lowes — pick your retail poison. But many don't bother because buying a gift card comes fraught with tax obliga- tions for the employee. e Canada Revenue Agency (CRA) looks at gift cards with the same eye as cash, raining on the happy little parade of giving employees flexibility in choosing exactly what they need and want for going above and beyond. "Cash and near-cash gifts or awards are always a taxable ben- efit for the employee," according to the CRA. at includes gift cer- tificates, gift cards and items that an easily be converted to cash, such as gold nuggets, securities and stocks. Not many firms are in the business of handing out gold nuggets, but it would be nice to hand over a $50 gift card to help out with that home renovation project Jill has been discuss- ing over the water cooler for months. But the minute you do that, it goes on the T4 and — sure enough — the worker has a tax burden thanks to your generosity. And if it's taxable, it also means it is pen- sionable. Therefore, both CPP deductions and income tax apply. at really takes the edge off the thank you. But here's an HR hack. You can get away, tax-free, with handing over sports or concert tickets. To use CRA speak, tickets to an event "on a specific date and time… may not be a taxable ben- efit for the employee since there is no element of choice, if the other rules for gifts and awards are met." e rules allow some tax free- dom with "non-cash gifts and awards." Employers can go to town in this category — up to $500 per year per employee. Get too fancy with your gifts, though, and every penny above the $500 mark is taxable. Ottawa is willing to turn a blind eye to some non-cash gifts. CRA points out that coffee and tea don't have to be counted to- ward the $500 maximum. (Tim Hortons and Starbucks have good lobbyists.) Nor do T-shirts with the employer logo, mugs, plaques and trophies. I'll give him this much — the taxman is hell- bent on squashing outside-the- box thinking when it comes to employee recognition. Additional exemptions ere are some additional ex- emptions around service awards. Every five years, employers are al- lowed to give a gift — non-cash, of course — valued at $500 or less, tax-free. (e good news? It doesn't count towards the above- mentioned $500 non-cash gift cap.) "The award must be for a minimum of five years' service, and it has to be at least five years since you gave the employee the last long-service or anniver- sary award," says the CRA. "Any amount over the $500 is a taxable benefit." With an increased focused on retention, and many firms adopt- ing more frequent service awards — especially in the first couple years of tenure — Ottawa's rules aren't keeping pace. Do it sooner than five years and, bingo, you guessed it — taxable. Looking to to throw an office party? Do it on a budget because the CRA's fun regulators are watching. You can spend $100 per employee, tax-free, on social events. Go one penny over that and the entire amount magically transforms into a taxable benefit. at'll harsh the buzz — "anks for grabbing that extra beer, Paul. You put us over!" But you can order in pizza for a team meeting without incurring the CRA's wrath. "Where the purpose of the event is work-related, such as a planning or education session, or a networking session, we consider the primary beneficiary to be the employer, therefore, the event is not taxable," it says. But (yep, always a but) if the event celebrates the completion of a project or is thanks for doing a great job, it's suddenly taxable. Sigh. And it goes on. Even that 50-50 draw might end up lining Prime Minister Justin Trudeau's pockets. e CRA points out that prize draws fall outside of its gifts and awards policy, but still says that if the draw is only open to employ- ees, then the prize is "a benefit of employment and, therefore, is taxable." Collect Air Miles on your busi- ness trips? Well, if you convert the points to cash, you're obligated to declare the "fair market value of any personal rewards (you) re- ceived on an income tax and ben- efit return." Enough. We have but one plea, Ottawa. Keep your complicated tax rules in place, if you must. But give us back the humble gift card as a non-cash reward. Credit: Irina Adamovich (Shutterstock) NOT SO MAGICAL COLORADO — ey may have been considered sugary delights by customers, but Starbucks' limited-time-offer Unicorn Frappuccinos did not go over well with some of the chain's baristas, according to Reuters. One Starbucks employee called the colour-changing frozen beverage a "Frap from hell" while barista Tina Lee of Florida wrote: "Just know that every time you ask me to make this, a part of me dies." Nineteen-year-old barista Braden Burson probably made the biggest waves, with a 100-second video rant on Twitter: "Please don't get it. I have never made so many frappuccinos in my entire life. My hands are completely sticky. I have unicorn crap all in my hair, on my nose. I have never been so stressed out in my life. It has been insane." Starbucks claimed the drinks had seen "tremendous positive feedback" from customers and employees, but also said it would reach out to Burson to talk about his experience and "how to make it better," according to the Toronto Star.

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