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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Q. Our company gives eight hours of sick leave per month to nonexempt employees. We’ve been told that, under the FLSA, exempt employees are to be paid whenever they are sick. So our exempt employees have virtually an unlimited sick-leave balance. Is this a correct way to interpret the FLSA? Should we have some type of sick-leave accrual and tracking for our exempts?
The 20-month-long American Crystal Sugar lockout is finally over. In April, 55% of the members of the Bakery, Confectionery, Tobacco Workers and Grain Millers Local 167G ratified a contract that closely resembles a deal they rejected on four previous votes.
A class of 1,245 exotic dancers will split an $8 million settlement resulting from claims that the Penthouse Executive Club in Manhattan’s Hell’s Kitchen neighborhood misclassified them as independent contractors.
The U.S. Supreme Court on June 26 ruled the Defense of Marriage Act (DOMA) unconstitutional, a decision that has already set in motion a sweeping rewrite of federal rules affecting employee benefits administration and payroll operations.
The Affordable Care Act provision that allows adult children to remain on their parents’ health insurance policies through age 26 shifted at least $147 million in health care costs from patients and hospitals to insurance companies in 2011, according to a RAND Corp. study.
Here’s some good news: As long as you are willing to accommodate an employee’s medical condition, you won’t face liability for unemployment compensation if she quits. And the employee has to tell you she needs that accommodation. If she just quits, she won’t be eligible.
With North Carolina owing over $2.5 billion to the federal government, Gov. Pat McCrory signed a bill reforming the state’s unemployment insurance system shortly after he took office in January. The law applies to new unemployment claims filed on or after July 1, 2013.
A company that contracted to provide gate attendants for oil fields has won its battle with the DOL over whether the workers are em­­ployees or independent contractors. The decision represents a big loss for the DOL, which sought repayment of more than $6 million in back wages—and has engaged in a nationwide campaign to force more employers to recognize independent contractors as employees.
It may be time to talk to your fund administrator about adding a new feature to your organization’s portfolio of retirement benefits: the option for employees to transfer 401(k) funds into a Roth 401(k).
Q. Our company policy states that we give one week of paid vacation after one year of employment and two weeks of vacation after two years. But some employees when hired have been given two weeks of paid vacation right away. Is this legal and proper? Also, are we required to pay for unused vacation time upon termination or resignation?
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