Chapter 11 Benefits
Mandatory benefits
SS, unemployment ins, WC, FMLA, COBRA
Customary benefits
life ins, disability ins, health ins, retirement plan
Optional benefits
work-life benefits, free food, workout facility, domestic partner benefits, flexible spending account, nonfinancial benefits, creative benefits.
presenteeism
If employees continue to work because they have to, not because they want to
Unemployment insurance
The Social Security Act of 1935 also established unemployment insurance to provide temporary income during periods of involuntary unemployment.
Social Security
The Social Security Act of 1935 provides retirement income to qualified workers and their spouses after working a certain number of hours.
total compensation
The combined value of direct and indirect compensation is an employee's
Employee benefits
are nonwage compensation or rewards given to employees. Benefits are sometimes referred to as indirect compensation in contrast to pay, which is considered direct compensation.
Customary benefits
are those that are so commonly provided that employees view them as an entitlement. For example, sick leave and vacation days have come to be expected by most employees.
Defined contribution retirement plans 401K
do not promise a specific benefit level at retirement. In a defined contribution plan, the employer, the employee, or both contribute to the employee's individual account, and the tax-deferred contributions are invested on the participant's behalf.
The Family and Medical Leave Act of 1993
of 1993 (amended in 2008) requires most employers to provide employees up to 12 weeks of unpaid leave for the following reasons: 1. The birth and care of the eligible employee's child, or placement for adoption or foster care of a child with the employee; 2. The care of an immediate family member (spouse, child, or parent) who has a serious health condition; and 3. The care of the employee's own serious health condition.
Workers' compensation
pays for medical costs—and sometimes time off—if an employee suffers a job-related sickness or accident, and pays survivor benefits in the case of an employee's death.
Defined benefit retirement plans- pension
promise participants a monthly benefit at retirement, either a specific amount (such as $2,000 per month) or an amount determined by a formula that considers salary and tenure.
