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Compensation & Benefits

Beware lawsuit if re-Org adversely affects older workers

10/01/2007

If your organization is planning an extensive reorganization or creating an entirely new subsidiary, take care to consider the impact on older workers. If, in the process of leaving one company entity or subsidiary and going to another, older workers lose substantial benefits they used to enjoy, you may be courting an Age Discrimination in Employment Act (ADEA) lawsuit …

New Jersey cracks down on employers that misclassify employees

10/01/2007

Warning! Employers that intentionally misclassify employees as independent contractors face new penalties in New Jersey. Employers that intentionally misclassify workers unfairly stifle business competition because the practice lets them reduce labor costs between 15% and 20%, according to some estimates. That leaves employers that don’t cheat at a competitive disadvantage. Plus, employee misclassification strips workers of benefits and disability protection, and cheats the average taxpayer out of revenue …

How can employers get waivers of claims from terminated employees?

10/01/2007

Q. May an employer fire an employee and then ask the employee to sign a waiver of claims or severance agreement? …

Caution when dealing with employees’ ‘protected concerted activity’

10/01/2007
Q. I recently received a memo signed by all four employees in one department asking for 5% raises. Can I have a meeting with them to let them know that there is no money for raises, that their department could easily be eliminated and that they would be smarter just to keep a low profile and do their jobs?

NC officials launch 40% more wage investigations since 2003

10/01/2007

State examiners looking into wage-and-hour violations at North Carolina businesses opened 7,665 investigations in 2006. That’s an 18% increase over the previous year and a nearly 40% increase from 2003 investigation levels, according to the North Carolina Labor Department’s 2006 annual report …

You can pro-Rate bonuses based on FMLA leave time

10/01/2007

Does your organization offer a bonus plan that rewards workers for their productivity? If so, be sure to avoid a surprisingly common mistake that’s tripped up many Indiana employers: incorrectly structuring the bonus plan—or making deductions from bonuses—in a way that violates the FMLA. A new Indiana court ruling shows how an organization can legally pro-rate an employee’s bonus …

Pay raises to stay flat in ’08 while bonus plans take off

10/01/2007

If you’re holding the line on pay raises, you’re in good company. Three new surveys agree that most employers will raise salaries between 3.8% and 3.9% for the second year in a row in 2008, halting a steady upward trend in pay raises that began in 2004 …

Class action may be price for policies that invite off-the-Clock work

10/01/2007

Does your organization have top-down policies that tacitly create incentives for hourly employees to work extra hours without pay? If so, you may be risking a class-action wage-and-hour lawsuit. That’s what happened to one large employer when a disgruntled hourly employee claimed the company practically forced him to work extra hours in order to keep his job …

This cup’s for you: The right way to test for drugs

10/01/2007

With an increasing number of employees just saying “yes” to drugs these days, you can expect more Indiana companies to develop random drug-testing programs and establish rules that allow them to fire workers who test positive or don’t cooperate with the test. One note of caution: Make sure you can demonstrate that your drug test results are accurate and reliable …

South Bend contractor hit with max fine for fall-Protection error

10/01/2007

OSHA inspectors slapped steel contractor National Store Fixtures Division of United Fixtures in South Bend with a $79,500 fine for failing to protect workers at a construction site last year. Following a tip, OSHA conducted a site inspection and found employees working more than 15 feet off the ground without fall protection while installing steel walls …