Compensation and Benefits
Compensation and benefits topics – whether it’s minimum wage, workers’ compensation laws, or employee pay – if properly handled, can help you retain workers and recruit new ones.
Use our advice to craft independent contractor agreements that keep independent contractors – and your bosses – happy.
Q. We hired a nonexempt part-time employee, but for several months she’s been working about 40 hours a week. Are we required by law to convert her to full-time status and offer benefits if she averages near 40 hours?
The IRS has clarified that employers can take a current-year tax deduction for a fixed amount of bonuses that will be paid to employees during the following year, even though the amount that each employee will receive, and even the identity of employees, aren’t known until after the tax year ends.
Q. An employee’s spouse has become disabled. Even though this employee is younger than 59½, he’d like to take a distribution out of his 401(k) account. Can we accommodate him?
Q. We reimburse employees for the business use of their personal cellphones. To cut down on paperwork, management has suggested that instead of having employees submit their cellphone bills, we give them a flat allowance. This sounds like we’re giving them extra pay. Would those allowances be taxable?
Do your managers have limited discretion in setting pay? If so, you may have a built-in way to prevent large class-action lawsuits over equal pay. It’s all because of last summer’s big Supreme Court decision in Wal-Mart, Inc. v. Dukes.
If your company has a top pay level for each job classification, you probably end up giving some older workers smaller raises than less-tenured employees. That’s fine as long as you can explain that the difference is because of your wage schedules, not age discrimination.
Ignoring an employee’s persistent complaints that she’s being paid less than her male counterparts may amount to a willful violation of the Equal Pay Act (EPA). And willful violations add a year onto the two years of back-pay liability.
The federal Equal Pay Act (EPA) is supposed to ensure that men and women doing the same job aren’t paid differently based on their sex. But employees can’t win EPA lawsuits simply by comparing their rates of pay and job titles. Lots of factors unrelated to gender may influence pay.
California’s Labor Code requires employers to give covered employees a 10-minute break or rest period during each four-hour work period. Many employers have wondered how far they have to go to make sure employees take their breaks ...
California employees who report to work and then are sent home are generally entitled to at least a partial payment for that day. If you regularly have mandatory workplace meetings that fall outside some employees’ regular workday, consider scheduling those meetings for a specific time period. As the following case shows, that could save some money.