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Compensation & Benefits

Court serves up good news for firm sued for waiters’ tip snafu

10/15/2010

A three-judge panel of the California Court of Appeal for the 2nd Appellate District has upheld a lower court’s decision to dismiss a lawsuit against an accounting firm working for a celebrity-owned restaurant. The court held that the firm, Gumbiner Savett, can’t be accused of negligence for allegedly overreporting the incomes of servers who were forced to pool tips while working for Ago Restaurant.

Meal break rule doesn’t apply to public employees

10/15/2010
California Labor Code provisions specifying when and where employees should take their meals don’t apply to public employees, only to private-sector employees.

‘Service charge’ or tip? Pay attention to local laws in addition to state and federal regs

10/15/2010

California employers may incorrectly assume that if they abide by the federal Fair Labor Standards Act (FLSA) and the California Labor Code, they have met their obligations to workers. That may not be true. Local municipalities can also regulate some aspects of wage-and-hour laws.

When class-action wage lawsuit looms, handle employee ‘opt-out’ phase with care

10/15/2010

Employees who think they have been misclassified as exempt under the Fair Labor Standards Act and the California Labor Code may sue on behalf of themselves and all similarly situated current and former employees. Generally, if the case is approved as a class-action lawsuit, those current and former employees will get a chance to opt into the lawsuit for the FLSA claims and opt out of the state case. How employers react can affect how the court handles the opt-out process.

Can worker who is out on unpaid leave suspend payments to her 401(k) loan?

10/15/2010
Q. We have an employee out on an unpaid leave of absence. She has informed us she would like to suspend payment on a loan she took out against her 401(k). Is that permitted?

What’s the downside of employee leave pools?

10/15/2010
Q. We would like to set up an employee leave-sharing program in which employees would contribute unused paid time off to a “pool” that could then be used by other employees who have run out of paid time-off hours. Are there any issues we should be aware of in setting up an arrangement like this?

Cash out or carry over: Can we offer employees that choice for accrued paid time off?

10/15/2010
Q. Our policy lets employees carry over up to 100 hours of unused paid time off from year to year. We would like to change the policy to permit employees the choice between cashing out paid time off and carrying it over into the next year in order to encourage them to reduce their paid time-off accruals. Is this a problem?

Benefits primer: How to stop worrying and love your 401(k) plan

10/15/2010

Admit it. Administering your company’s retirement plan is probably one aspect of the job you wish you could leave behind. But it’s an important one. A retirement plan is a legally binding document that gives enforceable rights to plan participants. Failing to follow plan terms can be a headache—and costly! Fortunately, a few easy steps can help keep your retirement plan on track and in compliance.

The 4 key factors to keep ’em happy & in their seats

10/14/2010

The “at least I have a job” feeling is starting to wear off among employed Americans. After years of taking on new duties at their old pay, many are feeling overworked, underpaid and underpromoted. Two in five of them are seeking new jobs. Here are four key things your employees will look for elsewhere if you’re not providing it:

When is it legal to round pay to nearest 15 minutes?

10/14/2010
Q. We have an hourly employee who consistently arrives late—about seven to 10 minutes each time. Can we cut her pay to the nearest quarter hour? We would, of course, pay her for staying later.