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Compensation & Benefits

Document solid business rationale for all salary increases and cuts

10/21/2009

Employees who discover their colleagues are making more money for doing the same work often conclude that there can be only one reason—discrimination. Next stop: an attorney, who will try to confirm the pay bias by comparing the employee’s paychecks with his co-workers’. That’s why you have to be proactive, consistently keeping good records that show why you’ve made every compensation decision.

Working-conditions study presents compliance tune-up opportunity

10/20/2009

According to a recent working-conditions survey, many employers are not doing the routine maintenance they should to keep their labor and employment compliance in tip-top shape. There’s no guarantee that tuning up your workplace policies like you do your car will avoid lawsuits. But, some routine preventive maintenance will go a long way to ensuring better compliance and fewer problems.

Your compensation & benefits questions answered

10/20/2009

Here’s a roundup of timely questions posed by readers of HR Specialist’s Compensation & Benefits newsletter. You’ll find answers on such hot topics as health insurance opt-out bonuses, differing pay structures for similar work, unemployment benefits for furloughed workers and paying for travel time.

Time on your side: Learn FLSA ’rounding rule’

10/20/2009

The FLSA allows employers to round off an hourly employee’s arrival or departure time to the nearest five minutes, tenth of an hour or quarter of an hour. But your rounding practices can’t always favor the employer. Rounding must be neutral or it must favor the employee. That means if you round down, you must also round up. You have several ways to make rounding fair:

Consider specific circumstances when weighing whether to pay for before- or after-work time

10/20/2009

These days, class-action claims for unpaid work time are becoming common—and can get very expensive. That’s one reason to make absolutely sure you properly pay employees for the work they do. Take a careful look at your hourly employees’ workdays—when they start and when they’re done for the day.

The un-COLA: In some states, no inflation leaves a bitter taste in workers’ mouths

10/20/2009

Several states peg the minimum wage to the cost of living. For decades, inflation has meant cost-of-living adjustments (COLAs) that delivered regular pay raises. But what’s happening now that the cost of living has declined 1.3% so far this year?

‘Invisible Bracelet’ is Oklahoma’s newest benefit

10/16/2009

During open enrollment in October, state employees in Oklahoma had a chance to register for a new benefit that shares their health information with medical providers during an emergency via an "Invisible Bracelet." A handful of Oklahoma businesses are also signing up employees for the Invisible Bracelet as part of their health benefit.

Bonuses advanced and then rescinded: Does that threaten MFLSA exempt status?

10/15/2009

Q. Our bonus plan states that employees eligible to receive bonus pay will receive bonus advances with each paycheck based on year-to-date performance results. Last year, we were on track to meet the maximum bonus throughout most of the year, but the last few months of the year were slow and we didn’t meet our target goal. As a result, we deducted certain amounts from the last few paychecks of salaried employees. Do these deductions threaten the exempt status of the salaried employees?

Don’t guess on need for FMLA leave! Insist employees follow usual notification procedures

10/15/2009

Employees sometimes think that just calling in sick is enough to put their employers on notice that they need FMLA leave. That’s simply not the case. In the following case, the 8th Circuit concluded the new language in the FMLA means employers aren’t obligated to guess about an employee’s need for FMLA leave based on behavior.

Use a shared tip jar? You must divide the money by shift

10/15/2009

If your counter service employees share tips customers leave in a tip jar, how you divvy up the money is important. A new case makes it clear that those tips must be counted at the end of each shift and shared among the employees who worked that shift.