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• Hillary Clinton Scheduled to Meet with Libyan Rebels

In an effort to promote democracy, Secretary of State Hillary Rodham Clinton will meet with Libyan rebel leaders next week during her travels to Tunisia and Egypt. Her announcement comes as the United States declares it is suspending relations with the Libyan embassy in Washington.

Clinton says that the State Department has been reaching out to the rebels’ provisional council, both directly and through intermediaries. These upcoming meetings are the administration’s highest-level contact with those hoping to replace Col. Moammar Gadhafi.

“I intend to convey strong support of the Obama administration and the American people that wish to be a partner in the important work that lies ahead as they embark on a transition to a genuine democracy,” said Clinton.

• Enter Huffington Post, Exit AOL Staffers

AOL announced today that it’s laying off 20% of its workforce—approximately 1,000 employees—including journalists and support staff. With the recent Huffington Post acquisition and the overlap with AOL properties, the company’s difficult decision may potentially save $20 million.

The chief executive of AOL, Tim Armstrong, attributes the layoffs with the change in the company’s business plan.“The changes we are making are not easy, but they are the right changes for the long-term health of the company, the brand and for our employees,” said Armstrong, in a memo to employees.

Armstrong notes the company is healthier now than it was a year ago and will “be much more healthy by the end of the year.”

• Etta James’ Son and Husband Squabble Over Her Estate

While Etta James remains bedridden in her California home-—suffering from leukemia, dementia, kidney problems and various other ailments—the legendary singer’s son and husband are fighting over her assets.

The family feud started in November, when James’ husband and tour manager, Artis Mills, filed a petition to get access to the 73-year-old’s bank accounts, which have an estimated total of approximately $1 million. Mills claims the access would assist with payments towards James’ business affairs and increasing medical costs—approximately $30,000 in private medical care costs.

Donto James, Mills’ step-son, questions the current care system set in place for his mother.

A month after Mills filed the petition, Mr. James asked the court to appoint an independent administrator to look over his mother’s finances, in addition to guardianship over her estate. Mills claims the songstress was in no shape to give her son those rights.

Her court-appointed attorney, Dennis Sandoval, remarks James is incapable of making any rational decisions at this point and aware of the ongoing finger-pointing.

“There are a lot of allegations flying around,” said Sandoval.

(Illustration by David Leonard)

Brittany Miller seems to have it all: a well-paying job as a finance specialist with a leading communications company (complete with a promotion and two raises this year), a brand new condo in Washington, D.C., and enough time and money with which to jaunt around the country. (Her favorite trip of 2009? Celebrating her cousin’s birthday in Las Vegas.) While the 24-year-old go-getter enjoys both her career and her free time, Miller admits she can’t help carrying a bit of guilt along for the ride.

After seeing some hundred people laid off from her department, seven of her close friends search for work, and her own sister pink-slipped last year, Miller is feeling more than a little bad about her success. “I feel guilty for not being able to share what they’re going through,” she admits. “It’s disheartening to tell my big sister, ‘If you want to come home for the holidays, I can put the money in your account.’ And I feel bad doing things when I can’t invite certain friends because I know they can’t afford to go.”

Success can even breed resentment in others. For example, Miller’s first raise of the year nearly ended some of her relationships. “I sent an announcement to my e-mail group when I got a raise, and one girl asked me not to share when some members didn’t have jobs. She said I was being ‘too boastful.’” Hurt and confused, Miller retreated from the group altogether and kept further successes to herself.

Surprisingly, Miller isn’t the only one feeling a twinge of guilt. A recent study from Leadership IQ, a research company in Atlanta, polled more than 4,000 people who have kept their jobs after corporate cutbacks and found that 62% of them feel guilty, anxious, and angry following company layoffs. “When you are affluent while so many are not, you might feel guilty that you’re not suffering the way everyone else is,” says Alduan Tartt, a psychologist in Decatur, Georgia. “But you worked hard for your success; you should feel blessed that you’re in a position to help.”

Though your first instinct may be to pull away, Tartt says that the best way to allay your guilt is to reach out to your loved ones. “Guilt is caused by a lack of a sense of power. But you do have power,” he says. “You have the power to help [others] by reviewing résumés, introducing them to people in your network, inviting them with you to networking events, and brainstorming with them.”

Tartt also says it’s important to comfort those who have lost their jobs. “When friends are let go, contact them immediately, set up lunch dates, and help them think about what their next move is going to be. Remember: Friends don’t want your guilt, they want your support.”

That’s advice Miller is now following, even as she balances reprioritizing her finances with enjoying the fruits of her labor. She’s reconnecting with her friends and even returned to the e-mail group, where she critiques résumés and posts job listings. She also says things are improving around her––three of her friends have new jobs and her sister is exploring her entrepreneurial side. In the end, Miller offers her own advice: “It’s OK to feel good about yourself and at the same time feel bad for others. Just don’t allow guilt to take over your happiness.”

Who me? Yes, you.

Feel a twinge of envy about someone else’s success? Quash the green-eyed monster by focusing inward. “Work on improving your own situation,” suggests Tartt. “Be grateful for being forced to do something different. The money hasn’t disappeared; it’s just moved somewhere else. The challeneg is to find it.”

This article originally appeared in the October 2009 issue of Black Enterprise magazine.

When an employee is furloughed, he/she is required to take a day off without pay. Although furloughs don’t always save as much money as layoffs, they prevent employers from terminating members of a skilled and valuable workforce. With the number of unemployed in the U.S. reaching 14.5 million in May, news that a company will require its employees to take time off without pay may be inconvenient, but compared to a pink slip it is welcome news to most.

Nathaniel Alston, a former national president and a founder of the National Association of African Americans in Human Resources, thinks that furloughs create less dissension than pay cuts and that employees feel like furloughs are temporary. “‘Furlough’ even sounds better than ‘pay cut,’” says Alston, CEO of the Horizons Group, a Maryland-based human resources consulting firm. With a pay cut, he explains, employees are left with the feeling that they’ll never get their previous salary back.

Stillman College designated two furlough days in March, and employees will also be furloughed for two days near the July 4 holiday weekend. This strategy will allow the school to dramatically reduce its energy consumption and the campus will be closed for several days during the hottest time of the year. McNealy anticipates that the July furlough will save $500,000. The furloughs along with other cost-saving methods (utilities abatement and reduced travel) will allow the school to fill a $1 million shortfall.

Take note of Alston’s advice to employers and employees on how to smoothly and effectively implement a furlough program.

ADVICE TO EMPLOYERS

Communicate. Explain to your employees that after calculating all of the options, a furlough is the best decision. McNealy and Stillman College’s chief financial officer spoke with the chairs of the academic departments and staff managers to keep the HBCU’s workforce apprised of the college’s financial situation.

Define the terms of the furlough and make sure that employees have an opportunity to ask questions. “Involve your senior human resources person and the head of the company,” says Alston. “Tell them that instead of laying off 50 people, we are going to furlough 200 people but everyone will keep their jobs, and tell them how we’re going to accomplish that.”

Consider a tiered furlough system. Try to reduce the economic burden on lower paid employees by implementing a tiered furlough system that will give higher salaried employees more days off without pay. “Usually, the people who are highly compensated can make out [okay] on a furlough,” says Alston.

Give ample notice. Try to plan furlough days well in advance to give employees enough time to prepare financially, advises Alston. Spread the furlough days across a period of time instead of insisting that they all be taken during one pay period. McNealy alerted his staff and faculty about the furlough plan in February and scheduled furloughs in March and July, which allowed for a break between decreased pay periods.

Don’t force employees to work. Employers must make sure that they abide by the federal Fair Labor Standards Act (FLSA). Non-exempt (hourly) employees can be easily furloughed, but exempt or salaried employees are entitled to full weekly salaries for any week they perform work, even if it is less than a day’s work. As such, employers can only furlough exempt employees for an entire week, not day by day.

Despite the law, some employers make employees feel obligated to work on a furlough day. Alston highly recommends that HR departments enforce furloughed days within FLSA guidelines and reduce the risk of workers compensation problems.

ADVICE TO EMPLOYEES

File for unemployment insurance. Eligible furloughed employees can apply for unemployment benefits depending on the state they live in. Be diligent about understanding when and how to file, says Alston. In most cases, payments are not retroactive. For more information, visit your state’s unemployment office or contact the U.S. Department of Labor.

Get paid or gain experience. If it won’t strain your wallet, consider using your time off to volunteer or pursue another professional development. Take a class, obtain certification for a skill set, or volunteer your professional services to keep your faculties sharp. If money is an issue, seek out freelance, consulting, or part-time work to make up for lost income. Or use this time to start your dream business.

Relax, and conserve money and energy. For most, this isn’t a time to spend a ton of money—throwing a big backyard barbeque for all of your friends and family, or taking an extravagant three-day-weekend vacation. Alston suggests that you think of your furloughed days as a time when you will be able to save money on gas, food, and other incidental expenses that occur throughout the workday. Finally, relax and enjoy the benefit of having a day off so that you will have plenty of energy to face the mountain of tasks that will pile up while you are gone.

For those seeking financial stability after a layoff, aside from unemployment benefits and severance packages, credit cards may also be a means to supplement income. But they should only be used as a last resort.

“It’s difficult to live off of credit cards unless you can see your way out of it,” says Genevia Gee Fulbright, president and certified public accountant at Fulbright & Fulbright. “You don’t want to end up filing for bankruptcy,” she adds.

Cash reserves should always be the first line of defense, says Kevin Davis, a certified financial planner at Consolidated Financial Services.

Other alternatives include taking out a line of credit, and if worse comes to worst, tapping into your 401(k) plan.

You can set up a 72(t) account, which can set up automatic withdrawals from your 401(k) without any penalties, he says.

Here’s how it works: You rollover your 401(k) to an IRA and apply with the IRS for a 72(t). The IRS will set up a distribution method, however, once an income stream is set up, it must continue until age 59 ½ or for a minimum of five years, whichever comes last, which would be a drawback for younger people.

If you really don’t have a choice except to use credit cards, check out these tips on charging wisely:
Compare teaser rates and out-of-work time: If you’re looking for a new card, compare the introductory rates from prospective companies with how long you expect to be out of the workforce.

“If you feel like you can pay the card off in 12 months, do a 0% interest rate [if it is offered],” Davis says. Since the offer only lasts if the balance is paid down by the time the promotional rate ends this may not fit everyone’s needs. If you don’t think the balance can be paid off within the allotted time, opt for a bit of a higher rate that will remain the same so you won’t be surprised by spiraling finance fees once the introductory period is over.

Pay on time: Sure, it’s a given, but does it always happen? One missed or late payment can hike your interest rate to 18% and in some cases even 27%, says Davis. To avoid late payments Davis suggests setup up an automatic payment plan.

Determine necessity: A designer bag or HDTV is not a necessity. Credit cards should only be used to pay for staple items — food, shelter, utilities, etc. “If you lose your job the first thing you should try to do is get your expenses as low as possible. Use credit cards to pay fixed expenses,” Davis says.

Actively manage your debt: Davis recommends using a Microsoft Excel spreadsheet or other software to track your spending. “You need to know you’re building additional debt and hopefully at some point in the future you will be able to pay it off,” he says. Keep in mind that though your cash flow will pick up once back at work, you do have additional debt that you have to pay off.

Exercise caution before claiming economic hardship: Many credit card companies have hardship agreement programs that can create an affordable payment system for you. But lowering your payments this way can negatively impact your credit score, Davis says. This can hurt you when trying to buy a house, car, or even get a job. Make sure the benefits outweigh the costs if deciding on an economic hardship agreement.

Manage your interest rates: If you haven’t called your card company to talk down your interest rates, hop to it! This can be one of the quickest and easiest measures you can take to make your monthly payments more manageable. If that doesn’t work, you may want to consider a balance transfer, says Fulbright.

“Some balance transfers are permanent rates are permanent,” she says, meaning they last until the balance is paid off.

Again, compare any teaser rates with how long you think you may be out of the workforce.  If you’re backed into a corner and the teaser rate is for three or six months, talk to the creditor, let them know I’ve been laid off, can we stretch this?’” Fulbright says.

Tell us your story. Have you had to “live off your credit cards”? How did you pay them off?