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Compensation & Benefits

You have the go-ahead: Fire employee if you discover problems during FMLA leave

09/11/2009

When an employee takes FMLA leave, chances are you’ll have to replace him with a temporary employee or assign the work to others. What happens if the fill-in worker discovers that the employee currently out on FMLA leave wasn’t doing as good a job as you thought? Can you then fire the employee while he’s on FMLA leave?

Chicago investment guru ‘stripped’ of $50 million

09/11/2009

The U.S. Department of Labor has obtained a $50 million judgment against Chicago investment advisor John Orecchio for using money from six union pensions for his own private business interests. According to the SEC, Orecchio used pension assets to pay for private jet travel, Super Bowl tickets, construction at his Michigan horse farm and renovations to a Detroit strip club he owns.

Minnesota cracks down on workers’ comp cheats

09/10/2009

Technological breakthroughs have enabled Minnesota’s Department of Labor and Industry to identify and fine more employers that fail to carry the proper workers’ compensation coverage. Preliminary figures show that the department fined 516 Minnesota employers for having insufficient coverage in fiscal year 2009, up from 210 in FY ’07.

Don’t let FMLA request stop legit discipline

09/10/2009

Employees sometimes think taking FMLA leave—or even just asking for the time off—protects them from being disciplined or discharged. Not so. Employers are free to discipline or discharge employees if they can show they would have taken the same action even if the employee never asked for or received FMLA leave.

How does disability leave work with the FMLA?

09/10/2009

Q. We have an employee out on a medical leave who is collecting short-term disability benefits. We have also designated the leave as FMLA leave. Our FMLA policy allows us to require the employee to use accumulated paid leave benefits concurrently with FMLA leave. Can we reduce this employee’s paid leave bank for the FMLA time he is taking?

Tread carefully when factoring employee travel expenses into pay calculations

09/10/2009

Here’s a wage-and-hour problem that may trip up Minnesota employers: Employees who have to pay their own travel expenses may end up making less than minimum wage. Allowing this to happen when the expenses exceed $50 may also violate Minnesota’s prohibition on deducting more than that amount for employee expenses.

Reduced hours for exempt employees: Should they continue to fill out time sheets?

09/10/2009

Q. As a cost-saving measure, our company reduced the salaries of exempt employees by 10%. Employees get their salaries regardless of the number of hours they work. We have always asked our employees, though, to fill out a time sheet on which they write down 40 hours every week. Now we will ask them to record just 36 hours on this time sheet. Any problems with this?

The 3 health care reform changes most likely to survive this fall

09/08/2009

After a summer spent getting an earful from vocal constituents, Congress is back in session and grappling with comprehensive health care reform legislation. If President Obama has a bill to sign by the end of the year, it will almost certainly include these three elements that will affect HR pros.

2009 is ‘year of employee benefits’; more in the pipeline for 2010

09/08/2009

Employee benefits have been in the national spotlight right from the start of 2009. From the new FMLA and ADA rules that took effect in January to today’s white-hot health care debate, employers are dealing with important changes and “could-be” changes. Let’s look back at the year in benefits and ahead to what could be coming.

Rebound? Pay on the rise, but health insurance could lag

09/08/2009

A survey by consulting firm Watson Wyatt indicates more employers are loosening the compensation purse strings, even as employees will probably bear higher health benefits costs. According to the survey conducted in August, 44% of employers plan to reverse pay cuts made during the economic downturn.