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Compensation & Benefits

Analysis: Supreme Court’s landmark health care reform decision

07/24/2012
On June 28, the U.S. Supreme Court upheld the Afford­­able Care Act. But the decision does not mean that the validity of the ACA is settled once and for all. Future legal challenges, and, of course, the November elections, may determine the law’s ultimate fate, but for now, prudence is the wisest course of action. Employers should proceed as if the law is constitutional.

Reconsider if complaint that led to firing is recanted

07/24/2012
If you’re ready to fire an employee because of a co-worker’s or customer’s complaint, think twice if the complaint is recanted. Otherwise, the fired employee may sue, claiming that your stated discharge reason was false and merely an excuse to terminate.

No pay? No doubt you will face a lawsuit!

07/24/2012
Never skip a payday. That’s just asking to be sued, as the following case shows.

Weigh employee’s good-faith intentions before contesting unemployment benefits

07/24/2012

Employees don’t qualify for un­­employment benefits if they’re fired for misconduct. After all, it’s their own fault they were fired. Mis­­conduct generally includes actions that violate a so-called “reasonable employer” rule. However, employees who violate an employer’s reasonable rule because of a good-faith error in judgment can still collect benefits.

Hey, we just wanted the lease, not the legal bills!

07/24/2012
Sunset Car Wash had no idea it was about to be cleaned out when it took over the lease from Auto Spa Express. A court has ruled Sunset must pay back wages and penalties owed to Auto Spa’s former em­­ployees.

Study: Health costs continue slower growth in 2013

07/23/2012
Health care costs are expected to grow at about 7.5% next year, reflecting the sluggish economy and employer efforts to hold down expenses, says a new study by Pricewaterhouse-Coopers.

IRS clarifies $2,500 pretax limit to health FSAs

07/20/2012
The Affordable Care Act health care reform law limits employees’ pretax contributions into health flexible spending accounts (FSAs) to $2,500 for taxable years beginning after Dec. 31. The IRS has now clarified whose taxable year counted—the employee’s, the employer’s or the cafeteria plan’s.

Does sharing employees equal sharing overtime liability?

07/19/2012
Q: A client has two stores that are separate franchises. Both stores share employees, including the store manager. How can we calculate overtime when an employee works at both stores, and how do we allocate those hours between the stores?

IRS provides answers on the new 0.9% Medicare tax

07/16/2012
To pay for health care reform, high earners—single employees earning more than $200,000 and joint ­filers earning more than $250,000—will pay an additional 0.9% in Medicare taxes, for a total tax rate of 2.35%, beginning Jan. 1, 2013. The IRS has issued “Questions and Answers for the Additional Medicare Tax” to provide guidance.

State-by-state 2012 short-term child-care leave laws

07/14/2012

The federal FMLA doesn’t cover employees who take time off for school visits or to care for kids who aren’t seriously ill but who must stay home from school. Some state laws do. The chart below summarizes state short-term leave laws.