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Compensation & Benefits

Don’t set automatic deadline for workers returning from disability leave.

10/01/2001
Make sure your medical leave policy doesn’t automatically terminate employees after a certain number of days. Blood Systems Inc. recently agreed to pay 23 employees a total of $650,000 after the …

You Can Restrict Use of Personal Days

10/01/2001

Q. If a company provides both personal and vacation days for its employees and does not define what a personal day is, can that be used for anything outside of vacation time? —E.H., Utah

Lack of time records voids exemption argument

10/01/2001
No matter how long it took Tracy Klinedinst to paint a car, he was paid based on a standard industry estimate used by auto repair shops and insurance adjusters. While his …

Beware of sick leave policies that allow pay reduction of exempt

10/01/2001
To protect employee exemptions from overtime, make sure your sick leave policy defines which classifications would not be subject to pay deductions. In 1997, the U.S. Supreme Court said employees …

… and they’re planning to leave

10/01/2001
In a separate survey by Walker Information, only 24 percent of workers say they are committed to their employer and plan to stay for the next two years. The Indiana-based …

Raise Doesn’t Prove Employee Was Succeeding

10/01/2001

Q. About three months ago, we gave a marginal employee who is pregnant a pay raise in hopes that it would improve her job performance by boosting her morale. Unfortunately, her performance has gone from bad to worse. If we fire her for poor performance, can she successfully argue that the recent raise indicates that she was performing well and that our reason for terminating her was discriminatory? —H.K., Illinois

Put ‘unwritten rules’ in writing

09/01/2001
Interstate Brands Corp. had an unwritten policy that required a doctor’s note to confirm all absences caused by a work-related injury. When Cynthia Bausman didn’t produce …

Consider leasing staff; PEO market is evolving

09/01/2001
Look into turning your back-office duties over to a professional employer organization (PEO). New trends and fresh players have heightened competition among PEOs, which serve as a “co-employer” and handle recruiting, …

Beware OT Calculation When It Involves Bonus Pay

09/01/2001

Q. We have an add-on to wages of $100 if an employee who’s not scheduled to work gets called in within 72 hours. The employee gets paid for the hours worked at his normal wages, with time and a half if it adds up to overtime. The $100 is then added for the hours worked, and taxes are calculated on these earnings as usual. Is this a legal way of rewarding employees for coming in on short notice? –J.S., Oklahoma

Mental health benefits: Know federal, state parity laws

09/01/2001
When Congress reconvenes, one of the hottest issues will be whether to add new teeth to a five-year-old federal mental-health parity law. Under the law, companies offering mental health coverage …