Retirement Benefits: How to Avoid the 10 Most Common Mistakes Employers Make When Calculating Pensions
In recent years, pension benefits have come under increased scrutiny amidst allegations that benefits are often miscalculated and thus underpaid.
Tag: benefits
Pension Plans: Two Courts Rule Cash Balance Pensions Violate ERISA; Employer to Pay $300 Million
Over the last several years, many employers have converted their traditional pension plans to cash balance plans. But according to two recent federal court decisions, these cash balance arrangements may violate the Employee Retirement Income Security Act, (ERISA), the federal law regulating employee benefits.
Employee Leasing: Battle Over Workers’ Comp Coverage Ensues When Worker Injured on Job; How to Protect Yourself
Many employers lease rather than hire employees to reduce the costs of managing employee payroll and benefits. Leasing firms usually carry workers’ comp insurance on the leased workers, which can save you money and headaches. But as one employer recently found, if you don’t administer your leasing arrangement carefully, you could face expensive legal problems […]
Mandatory Retirement: Pushing Out Older Workers Can Be Dangerous; Do You Know the Rules?
With the economy still slumping, many employers are looking for creative ways to cut costs. You may be tempted to force some of your older employees to retire—but this strategy could land you in an expensive age-bias lawsuit. That’s because, under state and federal law, pushing older workers out the door is OK in only […]
News Notes: Federal Labor Law Superseded Lawsuit Claiming Pay for Family Leave Time
Verizon employee Denise Harris was granted family and medical leave for a bad back. Under the union contract covering Harris’ employment, Verizon paid Harris sick pay benefits during the first part of her leave, but cut off her benefits when she didn’t provide a physician’s report confirming she couldn’t work. Harris sued, claiming the failure […]
Severance Pay: Court’s Ruling that Severance Package Wasn’t an Employee Benefit Plan Has Expensive Consequences for Employer
A new federal court case involves an all-too-familiar scenario. An employer acquired a new business and had to terminate the old workforce. The employer, however, needed to keep some workers around for a few months, so it offered them a severance deal. But when the employer later tried to change the severance terms, it found […]
Parental Rights in the Workplace: Legislature Pays $540,000 to Settle Lawsuit by Nursing Mother Who Was Demoted; Accommodation Guidelines
For more than 10 years, Pamela “P.J.” Harper was director of the legislative travel office, arranging air flights for Sacramento lawmakers. But shortly after returning from maternity leave, she resigned and filed suit against the State Assembly. The problem? Harper claimed she was demoted for taking time during the workday to breastfeed her infant daughter.
News Notes: Hastily Drawn Settlement Agreement Amounts To Expensive Mistake
Orange-based Bergen Brunswig Corp. dashed off a settlement offer to its former president, Donald Roden, to resolve a wrongful-discharge lawsuit. Theoffer stated only that Roden would receive a $5 million lump sum plus attorney’s fees, and his retirement and other benefits would be continued. After Roden signed the agreement, Bergen Brunswig claimed it had intended for Roden’s […]
Family and Medical Leave: New Case Looks at Your Obligation to Maintain Health Benefits for Employees on FMLA Leave
Under the state and federal family and medical leave laws, you must continue health insurance for employees who are out on leave. But do you know the rules for how much of their premiums you can require employees to pay while they’re off?
News Notes: EEOC Announces $250 Million Age-Bias Settlement With Calpers
The California Public Employees’ Retirement System (CalPERS) will pay approximately $250 million in disability benefits to more than 1,700 retired state and local safety officers to settle an age-bias lawsuit brought by the U.S. Equal Employment Opportunity Commission. The lawsuit charged that CalPERS—following a state law adopted in 1980—linked the amount of disability benefits to […]