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Compensation & Benefits

Even with economy on the mend, comp & benefits will lag

03/17/2010

We’ve all heard the good news about the economy: that the recession is crawling to a resolution and things will slowly get back to normal. Most of the executives I know don’t believe it. Now that we have reduced our workforces, frozen salaries, eliminated bonuses and suspended 401(k) matches, the question remains: When the recovery does occur, is any of that going to change?

Virginia state employees compete in healthy lifestyle contest

03/17/2010

Virginia Gov. Bob McDonnell has set a weighty goal for the commonwealth’s 1,500 employees: lose 10 pounds each in 13 weeks. During the challenge, which began Feb. 15 and ends in mid-May, employees of the state of Virginia who choose to participate will compete on four-person teams and weigh in weekly.

DOL: Filing of Form 5500 goes all electronic

03/16/2010

The Employee Benefits Security Administration has converted to a total electronic system for online filing of the Form 5500 and the new Form 5500-SF. Filers must submit the annual form electronically through the so-called EFAST2 system at www.efast.dol.gov.

The health care affordability gap continues to rise

03/15/2010

According to Towers Watson’s 2010 Health Care Cost Survey of 552 employers, health costs (insurance and out-of-pocket expenses) are outpacing inflation at record-high levels. The average employee will pay $400 more for health insurance this year than in 2009, bringing the annual average total to $2,487. Employers are paying more to offer health benefits, too.

Suspect sick leave abuse? Set strong policy to stamp it out–and allow legit FMLA leave

03/12/2010

Unplanned absences can disrupt even the best-run workplaces. Of course, you don’t want truly sick employees to come to work if they have some contagious illness. Nor do you want to discourage employees from taking legitimate FMLA leave. Your challenge as an employer: Craft and enforce an attendance policy that allows or even encourages legitimate sick leave use while discouraging abuse.

Under PTO policy, must we pay out unused leave upon employee’s termination?

03/12/2010

Q. We offer employees a set number of paid time off (PTO) days per year, which they may use for any reason, including vacation and sick days. Must we pay out all earned but unused PTO days upon termination?

Workers ‘illegal’? You still have to pay them

03/12/2010

Employees can always sue if they haven’t been paid for their work—even if they’re in the country illegally and not eligible to work in the United States. Employers can’t use their undocumented status as an excuse for not paying minimum wage and overtime under the FLSA.

After military leave, does employee get across-the-board raise instituted while he was gone?

03/12/2010

Q. Last month we reinstated an employee who was on military leave for six months. It’s the same position, with the same pay he received before he went on military leave. Effective Jan. 1, 2010, all employees in his department received a 4% pay raise in recognition for their hard work in 2009. Does the law require us to pay him at this increased rate?

Mayo Clinic, General Mills make Fortune’s ‘best’ list

03/11/2010

Two Minnesota icons have been named to Fortune magazine’s “100 Best Companies to Work For” list. Employees claim the Mayo Clinic provides the best possible care for its patients and has the same attitude toward its employees. Food conglomerate General Mills just made the list at No. 99—the magazine cited the company’s expanding infant day care program.

No unemployment for man who quit over costly health insurance

03/11/2010

Alfonzo Harlin took a job with the New Hope Emergency Food Shelf Network in late 2008. He claimed his new employer told him his health insurance premiums would be about $285 per month. When he found out the premiums would actually be more than $700 per month, he quit. Then he filed for unemployment benefits.