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Compensation & Benefits

Unemployment Insurance

01/08/2010

HR Law 101: Under the Federal Unemployment Tax Act (FUTA) and state laws, employers are obligated to pay payroll taxes to provide unemployment compensation to employees who lose their jobs. By understanding how the system works, you may be able to cut your state tax rate through efficient claims control …

OK to withhold commissions from employees who violate fiduciary obligations

01/07/2010

The Texas Payday Act allows employees to sue for commissions earned but unpaid after termination. But that doesn’t mean that employees are always owed such commissions. If they violated their fiduciary duty to their employers by disclosing confidential information to a competitor, it’s legitimate to withhold pay.

How should we reconcile competing demands of insurance plan, COBRA?

01/07/2010

Q. Our health maintenance organization contract calls for terminating coverage for anyone who moves outside the HMO service area. COBRA requires us to offer continuation coverage to qualified beneficiaries even if they move outside the HMO service area. How do I comply with these requirements?

Oil rig builder will pay $400K in back wages, OT

01/07/2010

Rife Industrial Marine, a Nederland company that builds oil rigs, has agreed to pay $401,355 in back wages to 567 welders and laborers engaged in offshore construction. A DOL investigation found that the company incorrectly classified some pay as reimbursements for employee travel expenses and failed to pay overtime on those wages.

Scotland petro firm docked for stiffing Texas workers

01/07/2010

A British company recently agreed to pay about $400,000 in back overtime pay for violating Texas labor laws. Nearly 500 contracted construction and technical workers and engineers working for the American branch of Scotland-based RBG Limited accused the company of improperly compensating them under both federal and state laws.

Can we buy pizza and soda to pay workers for a missed lunch break due to a heavy workload?

01/07/2010

Q. Occasionally, when we receive a big order, our nonexempt employees have to work through their lunch breaks. Although we do not pay them for this work, we buy pizzas and sodas for all the affected workers. Is this lawful?

IBM ponies up 100% of employee premiums

01/06/2010

Starting this month, IBM will begin paying all of its employees’ primary care health costs—with no co-pays or deductibles. At the same time, the organization is offering new cash incentives to encourage employees to eat healthier and exercise. Employees can receive up to $300 in cash a year.

Flex, time off for charity create ‘family culture’

01/06/2010

As a mother of three kids herself, Juli Spottiswood says “work and home balance is a core part of who we are” at employee incentive provider Parago. She should know—she’s president and co-founder of the firm. Parents with sick children are encouraged to stay home with them; the Lewisville, Texas, organization provides employees with the technology to access company files from home. Flexible schedules are a given.

Want to get bosses’ attention on bias problems? Remind them they can be held personally liable

01/06/2010

Here’s a powerful reason for managers and supervisors in New Jersey to understand the ins and outs of discrimination and labor laws. If they commit a discriminatory act, they could be personally liable.

Health insurance cost-shifting expected to accelerate this year

01/05/2010

Premiums for employer-sponsored health insurance rose to an average $13,375 annually for family coverage and $4,824 for single coverage in 2009, and employers are likely to pass even more of the cost to employees this year, according to an annual benchmark survey by the Kaiser Family Foundation.