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Compensation & Benefits

Don’t mandate direct deposit of employees’ pay

12/01/2003
Issue: Some state rules seem to clash with federal rules over whether you can require employees to accept pay via direct deposit.
Risk: By following your state law, in some …

Be careful how you answer pleas for overtime pay

12/01/2003
Issue: If you’re sued for unpaid overtime pay, your damages can mount quickly if the court sees a “willful” violation. Risk: The FLSA enables courts to award employees up to …

You can’t make employees contribute to charity

12/01/2003

Q. Is it legal for us to strongly encourage our employees to have money withheld from their paychecks to support a charity drive, like the United Way? —L.M., Texas

Don’t discriminate against short people

12/01/2003
A well-publicized study could raise skepticism (and, potentially, legal complaints) by short people about your pay practices. The study, to be published in the Journal of Applied Psychology, found that, in …

Don’t try to ‘explain away’ overtime errors

12/01/2003
Counsel your managers to treat overtime complaints with respect, and avoid any cavalier statements or excuses about why someone hasn’t been paid overtime. Reason: You face big risks by making such …

Schools aren’t exempt from wage-and-Hour laws

12/01/2003

Q. At our university, the special-events supervisors must occasionally hire people. We currently don’t pay for their time involved in interviewing job candidates. I think we should pay them for that time, but I was told education institutions are exempt from pay laws. Is that true? —D.D., West Virginia

Employees comparing pay? Don’t try to muzzle them

12/01/2003
Issue: About a third of all organizations prohibit employees from discussing pay with one another. Risk: Such confidentiality policies likely violate …

Enlist employees’ help to win the health-cost battle

11/01/2003
Issue: Strong communication with employees is a vital part of controlling health care insurance costs.
Benefit: Employees who understand the forces driving up their premiums are more likely to play …

Outsource strategically; don’t follow the crowd

11/01/2003
Issue: More organizations are jumping into outsourcing, but many aren’t impressed with the results. Risk: Farming out the wrong functions can actually lower HR efficiency. Action: Determine which functions …

Brush up on dental benefits: DR plans growing

11/01/2003
Issue: Direct reimbursement (DR) dental plans are becoming more popular.
Benefit: DR plans can slash your dental-plan admin costs. You can even eliminate the middleman …