Q. While one of our employees was on workers’ compensation leave, she received disability payments. Due to a clerical error, we failed to take her off the payroll during that time, and she continued to receive her regular paychecks while on leave. The employee now refuses to sign an agreement to return the money on a payment schedule we were willing to set up. As a result, we would like to dock her pay for the overpayments. Are we allowed to do so?
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.
If your business relies on hiring casual laborers and you routinely pay a set price for a day’s work, don’t assume your workers are independent contractors. If one of them falls or is injured, chances are a court will conclude he’s an employee due workers’ compensation benefits. If you don’t carry workers’ comp insurance, you’ll be on the hook for big bucks.
The Equal Pay Act (EPA) makes it illegal to base unequal pay on gender. Employees have up to three years to sue after the last allegedly discriminatory paycheck if their employer’s violation was “willful,” and two years if it was not. Unfortunately, any obvious wage disparity is probably willful.
Do you have a progressive disciplinary system? Don’t short-circuit it!
Disciplining employees often requires making tough calls, especially when the disciplinary action is based on the word of co-workers. You may be forced to choose whom to believe. Don’t be tempted to ignore the complaint just because you can’t be sure who’s right. As long as you are honest, courts will be reluctant to second-guess you.
Beware breaking wage-and-hour laws if you employ drivers who cover expenses for the vehicles they use to make deliveries. If your hourly rate minus those expenses yields a figure lower than the minimum wage, you may be violating the Fair Labor Standards Act.
As you gear up for a new year, here are some key to-do’s that will minimize the risk of lawsuits: Make sure your company has considered how a potential flu pandemic could affect your operations ... Get to know GINA ... Keep an eye on the feds ... Beware hasty terminations ... Watch wage-and-hour issues ... Make the ADA interactive ... Focus on union issues ... Manage social media ...
If your organization uses independent contractors, watch out: Starting in February, the IRS will begin intensive audits of 6,000 randomly selected employers. One key target: identify employers that are improperly misclassifying employees as independent contractors. If your company is selected for audit, follow good IRS examination management practices:
Our friends at the law firm of Fisher & Phillips LLP recently published this entertaining look at the employment law year that was. From A (the American Recovery and Reinvestment Act) to Z (zealously), 2009 was a busy year for those who track employment law trends.
The cost cutting and headcount reductions might not be over yet, but as the economy begins its slow recovery, HR pros are reporting fewer layoffs, a renewed focus on retention—and even a talk of pay raises! Still, the flush workplace of 2006 isn’t likely to rush back into vogue. Here are 12 lingering adjustments—all with comp and benefits implications—that could outlast the recession: