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Compensation & Benefits

Make sure ‘executive exemption’ fits, or you could be liable for huge FLSA damages

01/13/2009

Don’t make one of the most common mistakes HR managers do when classifying employees as exempt—by relying on the so-called “executive exemption” for employees you call managers and supervisors. Unless you can back up your claims with solid proof, your organization could be on the hook for an expensive jury award.

The $640 million question: Do you know how to comply with the FLSA?

01/13/2009

Oops! Wal-Mart’s paying the largest settlement ever for Fair Labor Standards Act (FLSA) violations—a whopping $640 million! Even small employers can be liable for huge penalties if they violate the wage-and-hour law. That’s why HR Specialist’s upcoming Labor and Employment Law Advanced Practices Symposium features a session titled “Wage & Hour Litigation Rages On—The 10 Most Common Mistakes (and How to Avoid Them)." Meanwhile, here’s a primer on FLSA compliance.

Several locations? Beware accidental OT trap

01/13/2009

Here’s a trap you may fall into accidentally: If you have multiple locations, each operating independently, watch out for wage-and-hour violations involving employees who work at more than one location. Here’s why.

Wal-Mart settles Minnesota W&H lawsuit for $54 million

01/13/2009

Wal-Mart agreed Dec. 9 to pay $54.25 million to settle a seven-year class-action lawsuit with roughly 100,000 current and former hourly employees in Minnesota. All things considered, that was a bargain.

Are employees obligated to keep wages and salaries confidential?

01/12/2009

Q. Can an employer prohibit employees from sharing confidential wage information with each other, such as rates of pay or the amount of wage increases?

Remind employees: Honesty required when applying for health insurance benefits

01/09/2009

Remind employees that they must be honest when filling out health insurance sign-up forms. Otherwise, they—and your company—may be sued later to recover the medical costs associated with undisclosed pre-existing conditions.

Review contract language before changing benefits

01/09/2009

If your organization has a collective-bargaining agreement with a union, you must make sure you check with counsel before you make any changes to benefits. In some cases, promises made in past contracts—such as a promise to provide retiree health benefits—may be a binding, vested promise that cannot be undone.

Buying a company’s assets? Liabilities may be included

01/09/2009

If your organization is in good fiscal shape in these tough times, top brass may be looking to snap up the assets of failed companies at bargain prices. Remind management that it may end up picking up liabilities such as unemployment insurance claims if it doesn’t structure the deal correctly.

Workers’ comp for unpaid interns?

01/09/2009

Q. A local college has asked our company to allow a student to work at one of our plants for credit this summer. The student would not be paid, which sounds like a great deal for the company. However, we are concerned about what would happen if the student were injured while interning. Would we be liable?

Control, payroll big factors in who pays for injury

01/09/2009

Sometimes, employees of one company may end up temporarily doing work for another company. If they are injured during the course of that work, who picks up the tab? Generally, the employer that carries the employee on the payroll and that controls the way the work is done.