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.
You may have heard that the Department of Labor has been focusing some of its enforcement efforts on low-wage service industries, particularly restaurants and fast- food outlets. That’s true. But federal courts are also stepping in to ensure that low-wage employees get every penny they are entitled to. That’s what recently happened when the 5th Circuit Court of Appeals ruled in a tip-pooling case that the employee who makes coffee in the back (the barista) should not be participating in the restaurant’s tip pool.
Ordinarily, owners of a business aren’t required to participate in the unemployment compensation system and don’t need to pay unemployment tax. Neither are they eligible for unemployment benefits if they lose their jobs. But that doesn’t mean it’s OK to simply create a partnership, have each “partner” contribute a token amount, and then treat them as employees.