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Compensation & Benefits

Shoe’s on other foot now as Puma agrees to wage settlement

12/22/2009

Puma North America has agreed to settle a class-action lawsuit alleging that it failed to pay on time about $350,000 to hundreds of employees. Judge Valerie Baker Fairbank conditionally certified the class to include the company’s hourly, nonexempt retail store employees who received late paychecks between 2004 and 2008.

Companywide bonuses take wing at American Airlines

12/21/2009

Business and vacation travel may be down, but American Airlines says customer satisfaction is up—and is rewarding about 71,000 employees for making it happen. The Fort Worth, Texas-based airline awarded $10.6 million—about $150 per employee—to staffers who helped the organization achieve its fourth-quarter 2009 customer satisfaction goals.

Can employee on FMLA leave collect unemployment?

12/15/2009

Q. We have an employee out on unpaid FMLA leave. She said she wants to collect unemployment compensation. Is she eligible?

Will Congress bite on COBRA subsidy extension?

12/15/2009

With federal COBRA subsidies for laid-off workers set to expire Dec. 31, Congress is getting ready to consider an extension—and HR pros are getting ready for administrative headaches. Timing is everything on this issue, and when Congress decides to act will affect laid-off workers and benefits administrators alike.

Check your records! Some old pay-bias cases get new life under Ledbetter law

12/15/2009

When President Obama signed the Lilly Ledbetter Fair Pay Act nearly a year ago, some employees got an additional chance to press their pay discrimination claims. That’s because the new law covers Equal Pay Act claims pending at the EEOC or in federal court as of May 28, 2007. Tip: If you haven’t already done so, now’s the time to review your compensation program to check for hidden sex bias.

Don’t let IRS benefit from your awards program

12/14/2009

Nothing takes the shine off an employee achievement award faster than having to pay taxes on its value. However, it’s entirely possible to design a recognition program that doesn’t cause tax liability for your employees—and is fully tax deductible for your organization.

Check your pay rates! Obvious male/female disparity is probably ‘willful’ discrimination

12/14/2009

The Equal Pay Act makes it illegal to base unequal pay on gender. If an employee can show that a violation was “willful,” she has up to three years to sue after the last allegedly discriminatory paycheck; only two years if it’s not willful. Heads up: Courts will probably call any obvious wage disparity a “willful” violation.

O’Hare TSA contractor could lose more than just back pay

12/11/2009

The president and vice president of a transportation company at O’Hare International Airport are facing federal criminal charges for allegedly stiffing their employees. DOL investigators say the company owes back wages and benefits totaling at least $1.5 million to more than 120 workers. And with the TSA involved, it’s not just a civil matter; it’s a violation of the federal Service Contract Act.

Workers’ comp marijuana denial goes up in smoke

12/11/2009

After an apprentice for construction contractor Lenny Szarek Inc. fell through a hole in a second-story floor, he tested positive for marijuana and cocaine. Based on the drug test results, the company’s workers’ comp carrier denied the claim. But the Illinois Industrial Commission reinstated his claim …

Congress is considering five paid sick days for H1N1 exiles

12/11/2009

H.R. 3991 would guarantee workers with contagious diseases, such as the H1N1 flu virus, up to five paid sick days if their employer “directs” or “advises” them to stay home or go home due to the illness.