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Compensation & Benefits

‘Service charges’ may be tips—And therefore must go to waitstaff

05/01/2008
When entertainment venues sell prepaid tickets, these often include a “service charge.” If the business tells inquiring buyers that the service charge is a tip, and therefore discourages them from leaving additional money, the business can’t keep the money. It doesn’t matter whether the service charge is voluntary or mandatory …

Careful what you wish for at IBM

05/01/2008
Victory wasn’t so sweet for thousands of employees who sued Armonk-based IBM claiming the company had illegally classified them as exempt. IBM agreed to reclassify them, making them eligible for overtime pay. The catch? The company cut their salaries by 15% …

Ignoring your military pay policy may be costly

05/01/2008
If, like many employers, you honor military service with special pay arrangements for those who serve their country, take note: If you don’t follow your own handbook, you may find a court ready to punish you with big damages …

Gov. Strickland ends flextime for state employees

05/01/2008
Gov. Ted Strickland has put an end to flexible work hours for thousands of state employees, citing the need to provide full staffing during the traditional business hours of 8 a.m. to 5 p.m., Monday through Friday …

Revise confidentiality policy to omit any hint it covers wages

05/01/2008
It’s considered impolite in many circles to discuss money, but don’t try to stop employees from talking about their pay. Setting a policy that prohibits employees from sharing information about hourly rates, salaries, bonuses or the terms of their employment could violate the National Labor Relations Act—even if your employees do not belong to a union …

You smoke, you’re fired! Lessons from the Whirlpool Case

04/29/2008
The dangers of smoking are well documented: heart disease and cancer, shorter life expectancy, higher health care expenses. Now add another risk: As workers in Indiana just found out, smoking could get you fired. Was their employer justified in taking action, or did it step into a legal quagmire?

New religious discrimination legislation expands NJLAD

04/28/2008
Employers, take notice: A new type of accommodation is required in New Jersey. Gov. Jon S. Corzine has signed into law an amendment to the New Jersey Law Against Discrimination (NJLAD) that makes it unlawful to discriminate against an employee because of a sincerely held religious practice or observance …

Seeking more information so employers can plan around intermittent FMLA leave

04/28/2008
Q. I’ve required employees seeking FMLA leave to have their doctors fill out the DOL’s medical certification form. Too often, though, the information I get from doctors is too vague to be much help. Is there any way I can get more detail in these forms? …

COBRA claim for employee who didn’t sign up for health insurance?

04/25/2008

Q. We offer insurance benefits that begin three months after hire. Due to changing business conditions, we had to terminate an employee after only six months on the job. It seems that the worker wasn’t signed up for the health plan on his termination date. Does he now have any claim to COBRA? …

Pennsylvania will consider paid leave bills

04/25/2008
In the wake of New Jersey’s recent passage of family leave legislation, more state legislatures are considering bills that would require paid family leave. Fourteen states, including Pennsylvania, will consider mandatory paid family leave this year …