| Are
Wal-Mart Laws Now Dead
? |
| The anti-Wal-Mart
agenda was dealt what should be a final blow to
efforts to force the world's largest retailer to
pay health care benefits according to the
agenda's ideas of fairness. Maryland passed
legislation that would require large employers
in the state to spend an amount equal to at
least 8% of total payroll on healthcare for
their employees or pay the difference in the
form of a special tax. The criteria were set in
such a way that only Wal-Mart would be subject
to the requirements of the law. It quickly
became known as the ‘Wal-Mart Law’. The new law
was struck down as unenforceable by a Maryland
district court shortly after it was passed on
the grounds that it preempted ERISA, the federal
statute governing employee benefits for
healthcare. This month the U.S. Court of Appeals
upheld the ruling of the Maryland court putting
an end to what was sure to be a ‘Balkanization’
of healthcare regulation as other jurisdictions
from counties to states moved to pass their own
versions of the ‘Wal-Mart Law’. |
| |
| It won’t be long
before the ‘Employee Guide’ will take up as much
shelf space as the complete works of Winston
Churchill. Legislation, regulations and court
rulings governing HR practices provide what
seems to be a never ending stream of “gotcha’s”
for employers large and small. The latest target
is the ‘bully-boss’ as eleven (11) states move
legislation giving ‘abused workers’ the right to
sue for damages caused by the bully-boss. How
slippery is this slope? It is very slippery
indeed according to the Employment Law Alliance
that released the results of a nationwide poll.
Over 64% of American workers want the right to
sue for damages caused by workplace abuse.
Forty-four percent (44%) say they have worked
for an abusive boss. Better start adding that
new chapter to your Employee Guide before
distributing the latest
edition. |
| |
The final changes to
the regulations governing non-qualified deferred
compensation arrangements (Section 409A of the
Internal Revenue Code) were issued by the
Treasury Department on April 10. These changes
and clarifications are broad in scope. They
cover some areas of compensation that employers
don’t normally think of as deferred compensation
such as severance plans and arrangements and
annual bonus payments among others. All such
arrangements must be updated for compliance with
the new regulations by December 31 of this year.
The penalty for non-compliance for the
individual is 20% of the deferred compensation
included in income as a result of
non-compliance. The employer may also be subject
to penalties associated with tax withholding and
reporting. Click
here for a comprehensive discussion of the new
regulations.
|
| |
| ANSWERS
FROM THE
HELPLINE |
HOW TO PAY YOUR EMPLOYEES
PROPERLY
Q. How
often do we need to pay our employees?
A. Exempt
employees can be paid monthly, but must be
within 21 calendar days of the end of the pay
period. Of course exempt employees can be paid
more frequently.
Non-exempt employees
can be paid:
- Daily – wages must be paid no later than 24
hours after the day in which they were earned.
- Weekly – wages must be paid no later than
seven days after the period in which they were
earned.
- Semi-monthly or Bi-weekly – wages must be
paid no later than 13 days after the period in
which they were earned. A pay schedule such as
the 15th and the last day of the month is
acceptable.
Q. Our
company is moving in the direction of direct
deposit payroll. Some of our employees want to
continue receiving a regular paycheck; can we
require our employees to go direct deposit?
A. No, an
employer can only pay an employee by direct
deposit if the employee designates the bank or
financial institution they wish their funds to
go to. If the employee refuses to designate
where their pay should be deposited, you cannot
pay by direct deposit, and thus, must pay by
check or cash.
Q. At the
time of termination, when does an employee need
to be presented with their final paycheck?
A. Immediately if
possible, but not later than the next regular
payday. In other words, the employer does not
have to run a special payroll for a terminated
employee, but simply needs to make sure that
their final check is issued no later than if
they had continued working for the company.
Q. Can we hold
the final paycheck until all company property is
returned?
A. No part of
final compensation can be withheld while waiting
for an employee to return company property.
However, an employer may collect a deposit prior
to issuing company property with an employee’s
written consent. This deposit would then be paid
back to the employee when the property is
returned.
Q. Our company
policy states that an employee must work one
year before they are eligible to take 2 weeks
vacation time. If an employee quits after
working only 6 months, do I have to pay them any
vacation pay?
A. The Illinois
Wage Payment and Collection Act states that any
earned unused vacation pay must be included as
part of final compensation. Employers are
required to pay pro rata vacation pay to
employees whose employment is terminated before
completing the period of time necessary to earn
a full vacation. The Illinois Department of
Labor calculates pro rata on the basis of
completed months of service. Therefore, in the
above example, the employee would be entitled to
1 week paid vacation or 6/12 of 2
weeks. |
| |
The U.S. House of
Representatives has overwhelmingly passed the
‘Genetic Information Nondiscrimination Act’
which would make it illegal to use genetic
information in hiring, firing or promotion
decisions. It would further ban using such
information to deny healthcare insurance
coverage or set higher premiums based upon a
genetic predisposition to a disease. This action
by the House will likely pass in the Senate and
the White House has also expressed support for
the legislation.
|
| |
June 21, 2007
Holiday
Inn Mart Plaza,
Chicago
The Illinois
Chamber presents the most important healthcare
conference to be held in Illinois in 2007! The
featured speaker will be the former governor of
Florida, Jeb Bush. Governor Bush’s appearance is
sponsored by CIGNA. Agenda
topics include:
- The Future of the Healthcare Marketplace in
Illinois
- Latest Trends in Consumer-Driven Healthcare
- Cost and Quality Concerns for Employers and
Healthcare Providers
- Wellness Programs and Their Return on
Investment
- How Technology is Changing Healthcare
- Healthcare Costs and Employers’ Legal Rights
- The Role of Supplemental Benefits in
Employee Compensation
Register Now
Online |
| |
| Knowing what you
can and can't do will help you prevent costly
mistakes. Call our staff of HR experts. Let
Pam Holleman help you deal with problems safely
and avoid disputes. You can reach the Helpline
toll-free at 800-322-4722. |
| |
Your membership in the
Illinois Chamber pays! We offer valuable
programs and services to our members at special
discounts. Click
here for our growing list of outstanding
seminars, workshops and programs that will help
you with your everyday business needs.
|
| |
| The Chamber urges all
Illinois employers to recognize their Guard and
Reserve employees by signing and displaying the
ESGR Statement of Support. To get yours, simply
complete an online form and you will receive a
personalized certificate that demonstrates your
support. Also visit the SBA Veteran's Business
Development web site for assistance to small
business owners that have employees activated in
the Guard or Reserves. |
| |
The
HR Exec - Copyright © 2007 The Illinois
Chamber
Wood
S. McComb, Editor
Pam
Holleman, Manager, Human Resource
Information
|
