comp final
life insurance
3/4 of employees have it, nearly all are forfeitable upon quitting, some offer a core coverage with optional additional coverage available
DC plans
401k plan, employee stock ownership plan (ESOP), profit sharing plan
consolidated omnibus budget reconciliation act
COBRA
overtime
FLSA requires pay at one and a half times standard pay for more than 40 hours/week
health insurance portability and accountability act
HIPAA
workers compensation
a form of no-fault insurance, covers injuries/diseases arising from employment; covered by state laws
point of service plan (POS)
a hybrid plan combining HMO and PPO benefits
contemporary employers face
a skilled workforce, higher training costs, and higher benefit costs, fixed per employee
types of discrimination
access discrimination and valuation discrimination
sec rule change on executive disclosure
adopts enhanced executive compensation disclosure requirements
noncompete agreements
agree not to work for a competitor
companies respond by
altering their practices, defending their practices before the courts, or lobbying for legislative change
vesting
amount of time an employee must work before employer contributes to the plan
COBRA
applies if 20 or more employees
FMLA
applies if 50 or more employees
individual retirement accounts (IRA)
are a tax favored retirement savings plan that individuals can establish themselves
portability
becomes an issue from employees moving to new organizations
defined benefit plans
benefit amount takes average earning of last 3-5 years, and pays about half, or 30-80% adjusted for seniority
other exemp info
blue collar workers and first responders are not exempt
unemployment benefits
charged against the most recent employer causing their unemployment insurance rate
administrative exemption
compensated by salary not less than $455 per week
executive exemption
compensated by salary not less than $455 per week
computer employee exemption
compensated either $455/week salary, or $27.63/hour
creative professional exemption
compensated on salary/fee of not less than $455/week
professional exemption
compensated on salary/fee of not less than $455/week
contributory
costs are shared with employee
short term disability (STD)
covered by PTO; pays a percentage of an employee's salary for temporary disability
fair labors standards act
covers all employees of companies engaged in interstate commerce or in the production of goods for interstate commerce
securities exchange act 1934
created the securities and exchange commission
fair labor standards act
created time and a half overtime pay. benefits linked to pay increase correspondingly with those overtime hours
outside sales exemption
customarily engaged away from employer's business
HIPAA
designed to prevent discrimination on the basis of health
changes in minimum wage
directly effects workers and indirectly raises everyone's base pay, and the spillover effect
executive order 13665
directs regulators to develop financial industry specific rules
executive exemption
directs the work of at least two full time employees
theories of discrimination behavior
disparate treatment and disparate impact
computer employee exemp
employed as a skilled worker in the computer field
cost effectiveness of benefits
employee benefits are not taxable, group based benefits come at a lower cost
financial accounting standards board statement 123 R
employee stock options must be expenses or financial statements
general requirements of ERISA
employees are eligible from age 21 but may require one to three years of service
ESOP
employer makes a tax deductible contribution of stock shares or cash to a trust; the trust allocates stock to employees based on earnings
noncontributory
employer pays total cost
defined benefit plans
employer provides a pension in either a fixed dollar, or a percentage of earnings, seniority
lilly ledbetter fair pay act
employers liable for pay loss resulting from discrimination
pension benefit guaranty corporation (PBGC)
employers must buy insurance from the PBGC who guarantee payment of vested benefits
COBRA
enacted in 1985
family and medical leave act (FMLA)
enacted in 1993
HIPAA
enacted in 1996
federal trade commission
enforces antitrust laws
equal pay act 1963
equal pay for men and women doing "substantially similar" work
factors influencing employee
equity fairness in what others recieve, personal needs as linked to age, sex, marital status, dependents
SEC
executive compensation rules
sarbanes oxley act 2002
executives cannot retain bonuses or stock if they mislead the public
worker economic opportunity act
exempts stock options and bonuses from overtime pay calculations
skill
experience, training, education, and ability as measured by job performance requirements
COBRA
extends health coverage during certain events
walsh healey public contracts act 1936
extends prevailing wage to suppliers of governement contracts
governments interests
fair pay, safety nets for the unemployed, and protecting employees from exploitation
unemployment insurance
financed by employers federal and state unemployment insurance tax
defined benefit plans
financed by following a formula, making investments now that yield the future pension benefit
troubled asset relief program, american recovery and reinvestment act
financial institutions receiving TARP funds must meet all restrictions on compensation, prohibits several pay programs
major requirement of ERISA
general requirements, vesting and portability, pension benefit guaranty corporation, pension protection act of 2006
other exemption information
highly compensated employees who earn $100,000/year are exempt
outsourcing
hiring vendors to administer the benefit program
cash balance plan
hybrid, a cash account grows from annual employee and employer contributions
dodd frank wall street reform and consumer protection act
increases SEC requirements on stock and executive compensation
civil rights act of 1991
increases burden of proof on employers; covers international
professional exemp
knowledge gained by specialized instruction
professional exemp
knowledge must be in a field of science or learning
davis bacon act 1931
laborers on public construction must be paid "prevailing wage"
3 branches of federal government
legislative branch, executive branch, and judicial branch
HIPAA
lessen denial for preexisting condition
health maintenance organization (HMO)
limited group of providers at agreed upon rates
valuation discrimination
looks at the pay women and minorities receive for the jobs they perform
preferred provider organization (PPO)
lower rates for employer selected providers
26 weeks
maximum number for unemployment
mental health act 1997
mental illness covered the same as other medical conditions
effort
mental or physical, the degree of effort actually performed on the job
living wage
minimum wage tailored to living costs at local levels ; popular, backed by unions and churches; speculated objective is to reduce cost savings from outsourcing
americans with disabilities act 1990
must accommodate a person able to fulfill essential elements of a job
other exemp info
must comply with state laws if they are more strict than federal law
executive exemption
must have authority to hire or fire other employees
employer
must pay social security, unemployment and workers compensation taxes on wages and salaries, unless the worker is an independent contractor
social security
nearly every american worker is covered, money for benefits comes from employees, employers, and self-employed
unions
negotiation rights acquired from wagner act 1935; pension plans, unemployment, vacation plans, and guaranteed annual salary started here
financing benefits
noncontributory, contributory, employee financed
4 factors in labor cost model
number of employees, hours worked, cash compensation, benefit costs
benefits under social security
old age or disability, dependents, surviving family members, and lump sum death payments
worker economic opportunity act 2000
overtime pay does not have to include stock plan income
miscellaneous benefits
paid time off, maternity leave, companies switching from TTO to PTO, child care, elder care, domestic partner, legal insurance
employee benefits
part of the total compensation package, other than pay for time worked, provided to employees in whole of in part by employer payments
employee retirement income security act (ERISA)
passed in 1974, does not require a pension plan
pregnancy discrimination act 1978
pregnancy must be covered as a medical condition
computer employee exemp
primary duty consist of application of systems analysis techniques/procedures; design, development, testing, etc. of systems/programs; design, testing etc. of machine operating system programs; and a combination of these duties
outside sales exemption
primary duty is making sales or obtaining orders
administrative exemption
primary duty is office or non manual work
professional exemption
primary duty is work requiring advanced knowledge
creative professional exemp
primary duty is work requiring invention or original talent
executive exemption
primary duty must be managing
cost containment opportunities
probationary periods, benefit limitations, copay, administrative cost containment, deny service, outsourcing
pension plan
problems may be worse, government underfunds
title vii of civil rights act of 1964
prohibits discrimination on basis of race, sex, color, religion, or national origin
executive order 11246 of 1965
prohibits federal contractors from discriminating on the same basis as above
age discrimination in employment act 1967
protects employees 40 and older from age discrimination
the pension protection act of 2006 (PPA)
protects retirement income and transfers responsibility from employer to employee and identifies at risk plans that are less than 70% funded
minimum wage
provides an income floor for workers in society's least productive jobs
human resource planning system
reduces hasty hiring, and a benefit administrator should audit pre-layoff behavior and compliance with UI requirements
factors influencing employer
relationship to total comp, costs relative to benefits, competitor offerings, role of benefits, legal requirements
employee benefit communication
revolves around 4 issues, most common method is benefit handbook; e-benefits
financial accounting standards board
rules governing executive and employee compensation
laws enforced by agencies through
rulings, regulations, inspections, and investigations
private sources of disability income
salary continuation plans and long term disability plans
401k
savings plan where employees can defer pretax income; match 50 cents on the dollar
prevailing wage laws
set pay for work done to produce goods and services contracted by the federal government
fair labor standards act 1938
sets minimum wage, hours worked, overtime; prohibits child labor
wage and price controls
started in WW 2 and korean war; strict limiations on wage increases led unions and employers to provide benefits
eligibility for unemployment insurance
states require a "base period" and unemployed through no fault of their own
long term disability (LTD)
take over when short term plans expire; usually underwritten by insurance, provides 60 to 70 percent of pay for two years, up to life
IRS
tax and rules for executive pay
responsibility
the degree of accountability required in the job performance
access discrimination
the denial of particular jobs, promotions or training opportunities to qualified women or minorities
defined contribution plans
the employer sets up an investment account for each participating employee
government defined prevailing wage
the minimum wage that must be paid for work done on covered government projects or purchases
working conditions
the physical surroundings and hazards of a job; inside/outside, heat/cold, and poor ventilation
profit sharing plan
this can be considered a DC pension plan if the distribution of profits are delayed until retirement
portal to portal act
time spent on activities before beginning the principle activity is not compensable
arbitration
to resolve individual disputes
employer impetus
traced to pragmatic concerns about employee satisfaction and productivity, benefits slowly became a costly entitlement
defined benefit plans and defined contribution plans
two generic pension plans
ERISA
two goals: to protect 100 million active participants, and to stimulate the growth of such plans
child labor
under 18 cannot work hazardous jobs; under 16 cannot work in jobs involving interstate commerce, except for a parent; unions publicize child labor overseas
controlling unemployment taxes
unemployment benefits, human resource planning system, government actions
FMLA
up to 12 weeks of unpaid leave
family and medical leave act 1993
up to 12 weeks of unpaid leave for family/medical emergencies
administrative exemption
uses discretion and independent judgement in the job
Growth in employee benefits
wage/price control, unions, employer impetus, cost effectiveness, government impetus
four issues of employee benefit communication
what is communicated, to whom, how it is communicated, and how frequently
claims processing
when an employee asserts an event has occurred and demands the employer pay
their contributions, employer contributions, and any gains in stock investments
when employee retires with a defined contribution plan, the pension is based on
reverse discrimination
when men receive less than women when adjusted
setting up a benefit package
who should be protected or benefited, how much choice should employees have, how should benefits be financed, are benefits legally defensible
legally required benefits
workers comp, social security, unemployment compensation, FMLA, COBRA, HIPAA
government impetus
workers compensation, unemployment, social security
benefits for contingent workers
working through a temp agency, for a contract company, on call, as an independent contractor
