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Compensation & Benefits

Downsizing? Transfers cut unemployment claims

12/09/2009

These are tough economic times and lots of employers find themselves having to make difficult financial decisions. When those decisions include shutting down a store or branch location, employees who lose their jobs may be eligible for unemployment. But when former employees collect unemployment, unemployment insurance costs go up for employers. One way to cut your potential unemployment comp liability is to offer the employees a transfer to another location.

State unemployment fund running deeply in red

12/09/2009

The best estimates are expected to show that Minnesota’s unemployment insurance fund spent about twice what it took in during 2009. With state unemployment running at about 7.6%, the state has paid out approximately $1.6 billion in benefits in 2009, but only taken in about $850 million.

Some relatives now eligible for unemployment compensation

12/09/2009

Until recently, people employed in small businesses owned by their close relatives weren’t eligible for unemployment compensation. However, in late 2008, the Legislature changed the law to allow benefits if the relative had worked for the business for at least 16 quarters and earned more than $7,500 per quarter.

Quitting work when spouse transfers may mean benefits

12/09/2009

In the past, employees who quit their jobs because they had to relocate when a spouse was transferred were not eligible for unemployment compensation. That changed when Minnesota amended its unemployment compensation law to get more federal stimulus money.

Double-check all commission agreements! You could be liable for more than you think

12/09/2009

If you pay commissions under a written compensation plan that covers commissions earned only while the employee works for your company, be careful how you handle terminations—and discussion concerning payment of further commissions. In some circumstances, you could inadvertently create additional liability for unpaid commissions …

Insist on attendance for all—disabled or not

12/09/2009

Under the terms of the ADA, disabled employees have job protection—if they are able to perform the essential functions of their jobs, with or without accommodations. But those accommodations have to be reasonable. If you consider attendance an essential job function, courts probably won’t compel you to allow disabled employees to miss unreasonable amounts of work.

After FMLA leave, don’t presume future needs

12/09/2009

Here’s a problem to warn supervisors and managers about: When an employee with a disability returns from FMLA leave, don’t assume she can’t do her job or will need more time off. If or when the time comes, then you can decide how to handle time off. Until then, assume all is well.

How should we count FMLA leave when both parents work for the same company?

12/09/2009

Q. Our company employs a husband and his wife in different departments. Their daughter has been diagnosed with a serious medical condition that requires hospitalization for extended periods of time. The couple wants to know how much time they are entitled to under the FMLA to care for their child. Our company policy provides that spouses employed by the company can get only a combined total of 12 weeks to care for a sick child. Is that a correct application of the law, or does the FMLA prevent us from implementing such a policy?

A worker is asking us for a loan: How can we set up a legal repayment plan?

12/09/2009

Q. An employee wants to borrow $2,000 from the company to cover a family emergency, and we’re willing to make the loan. How should we structure the loan and repayment terms so we can deduct a certain amount from the employee’s bimonthly paycheck? We also want to be able to deduct the balance of the loan from the employee’s final paycheck in the event he is terminated before completely repaying the loan.

Eaton Neck Fire Department settles age discrimination suit

12/09/2009

The Eaton Neck Fire Department agreed to settle an EEOC age discrimination suit that challenged the department’s practice of not allowing the time firefighters serve after their 65th birthdays to count toward length-of-service awards. And those awards are critical to firefighters because they’re used to calculate pension benefits.