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Compensation & Benefits

Performance-Based Pay Cuts: Legal, not advisable

08/01/2006

Q. We do yearly performance evaluations, during which we review whether employees have met the expectations we laid out during the previous review. If these expectations were not met, can we legally decrease the employee’s salary as punishment? —A.L., Iowa

Online tool helps workers earn back wages

08/01/2006

The Labor Department’s Wage & Hour Division launched a new Back Wage Employee Locator online tool to help people determine if they’re owed back wages as the result of an investigation …

Texas court: Prisoners aren’t entitled to the minimum wage

08/01/2006

Compelling a prisoner to work without pay is not illegal, a federal court has ruled in considering a Texas inmate’s request. The prisoner worked in the prison laundry and claimed he should be paid at least the federal minimum wage …

Prepare to comply with new state minimum wage law

08/01/2006

Gov. Rendell signed legislation last month that increases Pennsylvania’s minimum wage by $2 per hour phased in over the next two years, but smaller businesses will have more time before having to pay the higher rates …

Don’t break wage promises to visa holders

08/01/2006

Employers who rely on the expertise of foreign scientists, engineers and nurses would be wise to review the processes they use to recruit and pay employees under H-1B visas. The EEOC has taken a keen interest in whether promises made to induce foreign talent into the United States are being honored. And more visa holders are hiring lawyers and suing for broken promises …

1099s won’t instantly create independent contractors

07/01/2006

Q. We hire seasonal temps and have them sign a policy that says their employment will end at a certain date. We’re aware of the unemployment responsibilities that come with being the last employer on record. If temps are hired with 1099 status, will our company still be responsible as the last employer on record and held liable for unemployment benefits? If we use a temp agency, are we liable? –B.B., New York

At job review, take notes on employee’s comments

07/01/2006

DuPont engineer Godwin Igwe filed a discrimination lawsuit, claiming the company denied him bonuses and promotions because of his national origin. But DuPont successfully defended the suit because its records showed that Igwe said he understood and accepted his demotion because of funding cuts in his department …

Help trim health costs by reviewing claims error data

07/01/2006

Health insurers make a surprising number of errors on claims, which can drive up your organization’s premiums and claims costs. Act now to identify money-wasting holes in your health plan with a full audit or a simpler checkup …

Consistency Erases Risk of Light-Duty Jobs

07/01/2006

Employers who use light-duty programs to cut workers’ compensation costs often make one big legal mistake: They apply their policies haphazardly, allowing some employees to take light-duty jobs, but not others. That inconsistency is the fastest way to trigger discrimination lawsuits …

Use payroll deduction to collect unpaid premiums

07/01/2006

Q. An employee went on FMLA leave, but we failed to specify the method in which he would pay his share of health insurance premiums. It’s now three months later, the employee has returned to work and he hasn’t paid a dime. We want to collect the premium. What can we do? —D.T., Texas