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Compensation & Benefits

Supreme Court allows employees to sue for 401(k) losses

04/01/2008
In a decision that could spark more lawsuits against retirement plan administrators, the U.S. Supreme Court ruled on Feb. 20 that participants in 401(k) plans could sue to recover losses if they think their accounts were mismanaged …

Michigan sues Tyco over state pension fund losses

04/01/2008
 The state of Michigan is suing Tyco International, its auditors and four former executives for $50 million, the amount lost to state pension funds when a multibillion-dollar accounting fraud case sent the company’s stock prices plummeting in 2002 …

Sunflower Market hit with $125,000 back-Wage bill

04/01/2008
Sunflower Market has agreed to pay $125,310 in back wages to workers in four states for unpaid overtime. The U.S. Labor Department also levied $10,670 in fines against the grocery chain for violations of the child labor laws …

Wage-and-Hour suits are hot

04/01/2008
Wage-and-hour lawsuits are growing exponentially, according to the fourth Annual Workplace Class Action Litigation Report from national law firm Seyfarth Shaw LLP. New York was among the states experiencing the sharpest growth in wage-and-hour claims …

Explain work schedule during interview, not after hiring

04/01/2008
Does your organization operate on shifts or have unusual work hours? If so, it’s fair to both job applicants and the organization to be ultra-clear about what hours new hires should expect to work. The best approach is to ask about work availability up front—right on the application …

Retain new hires with quick pay raises

04/01/2008
The more your organization’s employees learn on the job, the quicker their value skyrockets in the marketplace. Retain new hires by raising their salaries as they gain experience …

Carefully justify pay differential between women and men

04/01/2008
The Equal Pay Act (EPA) requires employers to pay the same to male and female employees who perform jobs requiring equal skill, effort and responsibility. The EPA allows employers to adjust pay rates for legitimate business factors “other than sex.” To use experience as the reason for different pay rates, the employer should create a compelling record showing exactly what kind of experience it considered …

Wage-and-Hour suits are hot

04/01/2008
Wage-and-hour lawsuits are growing exponentially, according to the fourth Annual Workplace Class Action Litigation Report from national law firm Seyfarth Shaw LLP. The U.S. District Courts for the Southern and Middle Districts of Florida led the way with more wage-and-hour filings than any other federal jurisdictions …

Drywall company faces class action suit

04/01/2008
Eight Hispanic workers have filed a class action lawsuit against drywall company Mulcahy Inc., of Mahtomedi, alleging the company paid them less than minimum wage and denied them overtime pay, breaks and health benefits. Because they say they fear retaliation, the workers are suing under the pseudonym “John Doe” …

OK to consider qualifications that aren’t in job description when setting pay

04/01/2008
Setting compensation for a highly skilled job applicant may mean having to offer more money than currently paid to employees performing the same type of job. But what if a current employee sues, alleging the pay disparity constitutes some form of discrimination? Can you avoid liability? …