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Compensation & Benefits

Forcing retirement at age 65 lands AFCO in legal hot water

03/01/2007

Chambersburg-based Alex C. Fergusson Inc. (AFCO) must pay $50,000 to a salesman after forcing him into retirement at age 65 …

Before reorganization, draw up a staff contingency plan

03/01/2007

Are you planning to use an early-retirement incentive to help reduce the size of your work force? If so, it’s wise to prepare contingency plans for the remaining open positions and carefully document them …

Citigroup’s Cash-Balance Plan Fails the Smell Test, Judge Says

03/01/2007

A U.S. District Court judge has called Citigroup’s cash-balance pension plan “a bold and exploitative contortion” of the fractional rule, which guarantees that pensions accrue uniformly over an employee’s career …

Do help-Desk workers qualify for the computer exemption?

03/01/2007

While the Fair Labor Standards Act says certain computer professionals are exempt employees, be ultra-cautious about applying this exemption. Courts are littered with cases of employers being punished for wrongly applying exempt status to lower-level IT workers, such as help-desk staff (aka “IT support specialists”) …

Results, not hours, are focus of Best Buy clock-Smashing plan

03/01/2007

At Best Buy headquarters in Richfield, Minn., leaving work early doesn’t trigger a guilt trip for employees, as long as their work is finished. The Results-Only Work Environment (ROWE) initiative makes it possible …

Hiring interns: The 4 steps to keeping it legal

03/01/2007

Courts view interns the same as employees: as “agents” of your organization. So should you. If you use interns or plan to, advise supervisors to manage them as closely as employees, if not more so. And apply your workplace policies to them …

New salary analysis compares 20 top jobs in 75 cities

03/01/2007

Looking for a simple breakdown of salary ranges for common jobs in different metropolitan areas? You’ll find it at www.bizjournals.com (click on the “Online Edition” tab and then “Special Reports”) …

Working alongside staff won’t erase manager’s exemption

03/01/2007

Employers today are facing a barrage of Fair Labor Standards Act (FLSA) lawsuits alleging that they’re misclassifying nonexempt employees as exempt. One main target: store managers who often work 60 to 70 hours per week for a set salary …

Settle OT disputes quickly to avoid paying ‘Triple time’

03/01/2007

When employees complain that they should be earning overtime, it’s smart to settle up quickly if it’s clear that they’re right. Reason: When you fail to properly pay overtime, the Fair Labor Standards Act allows employees to collect twice what they should have earned …

You can’t avoid overtime by paying employees daily

03/01/2007

Even if you pay employees—such as day laborers—on a daily basis, you can’t use that tactic to avoid paying overtime for hours worked beyond 40 in a week …