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Compensation & Benefits

2011 state laws regulating direct deposit and pay cards

04/28/2011
Most states prohibit employers from mandating that employees receive their pay electronically—whether through direct deposit or pay cards. Many states also forbid employers and banks from charging a fee if employees decide cash out all their pay with one transaction. Here’s a brief summary of state laws affecting direct deposit and pay cards.

No unemployment after quitting to take job that never happened

04/25/2011
Employees who lose their jobs through no fault of their own are generally en­­titled to unemployment compensation benefits. But if an employee simply re­­­­­­­signs from one job to take a better one that never materializes, he can’t collect.

Generics, mail delivery cut drug benefit costs

04/25/2011
Pennsylvania-based 84 Lumber has cut its prescription benefit costs—for the company and for employees—by offering incentives to workers who use generic medicine and have it delivered via mail to their homes. Total plan costs dropped 13% from the prior year as the use of a home de­livery service increased 83.4%.

Baltimore salon styles benefits rare in industry

04/21/2011
At most hair salons, stylists are on their own when it comes to time off and health benefits. But the owners of Studio 921 Salon & Day Spa in Balti­more are different, offering one paid week of annual leave to employees who have worked a year, a 401(k) plan with a 3% match and group health insurance.

What’s the law on granting time off for workers who want to attend kids’ school activities?

04/20/2011
Q. Several of our employees have requested time off for their children’s end-of-year school events. What is our obligation to grant workers this time off?

L.A. employee unions sue over 2010 furloughs

04/20/2011
The International Union of Operating Engineers and Local 721 of the Serv­ice Employees International Union are suing the city of Los Angeles in the wake of last summer’s mandatory furlough of thousands of municipal employees.

California Supreme Court: Employees get hearing before arbitration

04/20/2011
The California Supreme Court has ruled that arbitration agreements are not enforceable if they require employees to arbitrate wage claims before they have a nonbinding administrative hearing before the State Labor Commissioner.

For 24-hour employees, unpaid uninterrupted sleep is OK

04/20/2011
Employers and employees can agree that up to eight hours of uninterrupted sleep time does not have to be paid.

Employees miss breaks? You owe for each one

04/20/2011

A recent Court of Appeal of California case clarifies that employers that fail to provide appropriate rest and meal breaks must pay a penalty—referred to as a premium payment—for each missed break each day. An employer had argued it only had to pay one penalty per day.

Meal breaks: You must make them available; you don’t have to force employees to eat

04/20/2011

The Court of Appeal of California has ruled that employers are only required to make meal and other breaks available to employees. They don’t have to force employees to take those breaks or eat a meal. Your only obligation: Make sure that no work is required to be performed during scheduled break time.