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.

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The Court of Appeals of North Carolina has ruled that employees who seek workers’ compensation have to show that their employer was a covered employer. That means they must show that the business had three or more regular employees.

On paper, internships are good for everyone. Interns learn a business and make connections in organizations where they hope to one day get jobs. In turn, businesses pay nearly nothing for work that needs to be done. However, the U.S. Department of Labor recently issued a fact sheet that casts that equation into doubt.

The more control an employer tries to assert over a worker it intends to treat as an independent contractor, the more likely that worker is actually an employee. That’s why you should make sure independent contractors have the leeway to work for others and maintain their own schedules.

The DOL is stepping up efforts to encourage and support certain types of wage-loss claims by low-income workers. Labor Secretary Hilda Solis announced this spring that the department was rolling out its “We Can Help” campaign to address this issue. If you employ relatively low-wage workers, you need to be aware of this program.

The DOL has raised the penalties for employers that violate the nation’s child labor laws. Fines for employers with workers under the age of 12 now start at $8,000. Minimum fines for hiring 12- or 13-year-olds now stand at $6,000 for each violation. In cases where 14- or 15-year-olds are illegally hired, the fines range between $6,000 and $11,000 per violation.

Which of your workers are eligible for overtime pay? Which are independent contractors versus employees? It soon won’t be good enough to guess … get ready to document and show proof.
Employers can’t use an employee’s undocumented status as an excuse for not paying minimum wage or overtime under the Fair Labor Standards Act, as the following case shows.
If you use independent contractors, make sure they have the freedom to work for other clients and largely set their own schedules. Those criteria are important for determining whether someone is eligible for unemployment.

Always prepare accurate job descriptions for each position. That way, if an employee challenges pay differences, you will be ready to show that jobs and duties that sound similar at first blush aren’t really comparable. That can come in handy if an employee claims some form of discrimination based on race or other protected characteristic.

Natalie Schroeder was seven months into a high-risk twin pregnancy when she missed a doctor’s appointment. Her boss at Advanced Neuromodulation Systems in Plano told her she had to finish a report before she could leave. Three days later she went into labor and delivered a healthy girl—and a stillborn son. Now she is suing.