Discussion 6.1
Read the following scenario and provide provide a viable resolution based on FMLA.
One of your nurses, Betty, displayed signs of depression, such as crying openly at work in front of staff and residents. One of her co-workers even reported to the nursing home’s administrator that Betty was becoming increasingly depressed and being overworked to the point of exhaustion. Betty became ill with diarrhea after her three consecutive shift days and called in sick for two days. On the second day, Betty informed her boss that she was also experiencing vomiting and chest pains, and was going to see her physician. The physician diagnosed Betty with clinical depression, prescribed Prozac, and advised her to take a medical leave of absence from work for two months.
Betty advised her boss that her doctor told her to stay home for two months. Betty did not disclose her clinical diagnosis, did not ask for Family and Medical Leave Act (FMLA) leave, and did not ask for leave as a reasonable accommodation under the Americans with Disabilities Act (ADA). Betty’s boss required her to produce a medical certification from her physician regarding her condition. Betty indicated that her physician was away for the holidays and would not be back for three weeks.
Two weeks later, Betty received a termination letter stating that she was being fired for failing to submit a medical certificate within 15 days of requesting leave. As a result, her leave request was being denied and her failure to come to work was being deemed a voluntary resignation.
This story was brought to your attention as the HR professional after Betty’s termination letter was sent. Now what? Remember that your resolution must be based on FMLA guidelines.
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In order to get a full grade,
1) please make sure that your initial post is at least 150 – 200 words in length
Discussion 6.2
An unhealthy work environment can lower productivity, contribute to low morale, and increase medical and workers’ compensation costs. Consider ways to improve the work environment.
Case Study 6.1 4 Pages
There are two (2) case studies per chapter. You are to respond to one (1) case from Chapter 11 and one (1) case study from Chapter 12.
Chapter 11 – Employee Benefit (Choose one case study)
Case Study 1 – Adobe’s Family-Friendly Benefits: An Unexpected Backlash, pg. 450 and answer the questions
Case Study 2 – Evaluate the Work-Life Climate in Your Company. pg. 451 and answer the questions
Chapter 12 – Promoting Safety and Health (Choose one case study)
Case Study 1 – Rambo Goes Violent, pg. 490 and answer the questions
Case Study 2 – Too Much Fatigue and Stress? You Decide, pg. 491 and answer the questions
Weekly Summary 6.1
Write 2 pages of weekly summary based on the chapter 11 and 12 PPT attached.
CHAPTER11 – Employee Benefits
Case Study 1: Adobe’s Family-Friendly Benefits: An
Unexpected Backlash
Adobe Consulting Services (ACS), a provider of HR software application systems, prides itself
on the variety of benefits it offers employees. In addition to health care, pension, and vacation
benefits, the company also offers an attractive family-friendly benefits package including
flexible schedules, child and elder care assistance, counseling services, adoption assistance, and
extended parental leave. Unfortunately, in recent months, the company’s progressive work-life
policy has experienced a backlash from several employees, as the following case illustrates.
In March 20011, Teresa Wheatly was hired by Adobe as a software accounts manager. With
excellent administrative and technical skills, plus four years of experience at Adaptable
Software, Adobe’s main competitor, Teresa became a valued addition to the company’s
marketing team. As a single mother with two grade- school children, Teresa received permission
to take Fridays off. She was also allowed to leave work early or come in late to meet the
demands of her children. Teresa is one of 11 software account managers at Adobe.
The problem for Adobe, and particularly for Janis Blancero, director of marketing, began in the
fall of 2011. On September 15, Dorothy McShee, citing “personal reasons”—which she refused
to discuss— requested a four-day workweek for which she was willing to take a 20 percent cut in
pay. When Dorothy asked for the reduced work schedule, she sarcastically quipped, “I hope I
don’t have to have kids to get this time off.” On October 3, Juan Batista, a world- class marathon
runner, requested a flexible work hours arrangement to accommodate his morning and afternoon
training schedule. Juan was registered to run the London, England, marathon in May 2013. Just
prior to Juan’s request, Susan Woolf asked for and was granted an extended maternity leave to
begin after the birth of her first child in December.
If these unexpected requests are not enough, Blancero has heard comments from senior account
managers about how some employees seem to get “special privileges,” while the managers work
long hours that often require them to meet around-the- clock customer demands. Janis has
adequate reason to believe that there is hidden tension over the company’s flexible work hours
program. Currently, Adobe has no formal policy on flexible schedules. Furthermore, with the
company’s growth in business combined with the increasing workload of software account
managers and the constant service demands of some customers, Blancero realizes that she simply
cannot grant all the time-off requests of her
employees.
Questions:
1. Do managers like Janis Blancero face a more com- plicated decision when evaluating the
personal requests of employees versus evaluating employees’ individual work performance?
Explain.
2. a. Should Adobe establish a policy for granting flexible work schedules? Explain.
b. If you answered yes, what might that policy contain?
3. If you were Janis Blancero, how would you resolve this dilemma? Explain
Case Study 2 – Evaluate the Work-Life Climate in Your Company
What is the quality of the work-life environment in your company? The following survey
provided by the Work and Family Connection will help provide a “case analysis” of the climate
in your organization. Answers to the 20 questions will provide clear insights about your
company’s position in the work-life area.
Agree or Disagree with the Following Statements:
1. My manager or supervisor treats my work-life needs with sensitivity.
2. It is usually easy for me to manage the demands of both work and home life.
3. My career path at this company is limited be- cause of the pressure of home life demands.
4. My job at this company keeps me from maintaining the quality of life I want.
5. My manager or supervisor is supportive when home life issues interfere with work.
6. My manager or supervisor focuses on results, rather than the time I am at my desk.
7. My manager or supervisor has a good under- standing of flexible work hour practices.
8. If I requested a flexible work arrangement, my manager or supervisor would support me.
9. My manager or supervisor is often inflexible or insensitive about my personal needs.
10. I believe my manager or supervisor treats me with respect.
11. My manager or supervisor allows me informal flexibility as long as I get the job done.
12. My manager or supervisor tends to treat us like children.
13. My manager or supervisor seldom gives me praise or recognition for the work I do
14. My manager or supervisor seems to care about me as a person.
15. I would recommend this company to others. 16. The work I do is not all that important to this
company’s success.
17. If I could find another job with better pay, I would leave this organization.
18. If I could find another job where I would be treated with respect, I would take it.
19. If I could find another job where I could have more flexibility, I would take it.
20. I am totally committed to this company.
For a perfect score, you should answer “Disagree” to questions 3, 4, 9, 12, 13, 16, 17, 18, and 19
and “Agree” to all the rest, 1, 2, 5, 6, 7, 8, 10, 11, 14, 15, and 20.
To score, begin by giving yourself 20 points. Then deduct one point for every “wrong” response
from the total score.
If your score is 18 to 20: Congratulations! Your organization is leading the nation in flexibility
and supportiveness.
If your score is 14 to 17: Your organization is probably more supportive and flexible than most,
but you have room to grow.
If your score is 11 to 13: You could be open to other job offers in the race for talent among
employees.
If your score is 10 or less: Your managers will need help to manage the twenty-first-century
workforce.
CHAPTER 12 – Promoting Safety and Health
Case Study 1 – Rambo Goes Violent
The facts of the case are straightforward. A shop floor dispute at an automobile parts
manufacturing plant in Hamilton, Iowa, ended with one worker killing another. At about 2:00
p.m., police responded to a report of a fight that erupted between two employees. When
members of the Hamilton Police Department’s Violent Crime Unit arrived, they found Mark
Lomas seriously injured. Lomas, 30, died three hours later at Good Samaritan Memorial
Hospital. The other employee, Thomas Waycross, was charged with second-degree murder.
During the investigation of the incident, employees noted that Lomas and Waycross often
“bickered” when working together. One employee remarked that Waycross liked to “act tough.”
Another employee claimed that Waycross had a “Rambo-type” personality. It was widely known
that management had told both employees to “learn to get along” or quit.
When asked about the incident, police spokes- person Kathy Calder remarked, “Employers must
be vigilant when monitoring for signs of potential work- place violence.” Nancy Lomas, Mark’s
wife, has filed a negligence lawsuit against the company.
Questions:
1. What are some violence indicators an employee might display?
2. What are some actions management can take to help prevent workplace violence?
3. How can employees protect themselves against workplace violence
Case Study 2 – Too Much Fatigue and Stress? You
Decide
Job fatigue and stress are significant problems faced by employees and their managers.
Unfortunately, when a case of depression arises as a result, trying to resolve the problem may be
difficult—sometimes leading to conflict—as this case illustrates.
Donald Knolls was an air traffic control super- visor for International Gateway Airport (IGA), an
airport serving a major metropolitan area. In 2011, Donald began to experience depression-
related problems largely due to severe stress and fatigue on the job. A few months later, he
requested and was granted a disability leave for treatment of his illness. After eight months, his
personal physician, an expert in depression treatment and a licensed consulting psychologist,
agreed that he was sufficiently improved to return to his former position.
IGA then sent Donald to the physician it had used when Donald first requested his disability
leave. After an extensive evaluation, the doctor concluded that while Donald had made
considerable strides in overcoming his depression, he should not be immediately returned to his
former supervisory position because the conditions of the job had not changed and he was apt to
find the stress too great. Instead, he recommended that Donald be returned to a non- supervisory
position on a six-month trial basis, with the case to be reviewed at the end of that time. IGA
followed the advice of its doctor and did not return Donald to a supervisory position. Donald,
angered by management’s decision, filed a grievance through IGA’s alternative dispute
resolution procedure, a procedure that could end in binding arbitration.
During several meetings between Donald and management, the employer maintained that it had
the right to rely on the medical opinion of “a fair and impartial” doctor who had determined that
Donald should not be returned to the position that was the cause of his original stress-related
emotional problems. Additionally, management pointed out to Donald that IGA’s disability leave
provision states that it “may require appropriate medical documentation if it believes an
employee is not fit to return to his or her former position.”
Donald responded, through an attorney he hired to represent his position, that the disability leave
provisions were clear but, nevertheless, biased against an employee because they completely
disregarded the opinion of his physician and psychologist. According to Donald, “Why bother to
get expert medical opinions if they are dis- missed?” He further noted, “I have never felt better.
I’m really ready to get back to my job.” Finally, Donald’s lawyer contended that Donald was the
victim of discrimination based on his former state of depression: “What happened to Donald
would not have happened if his illness had been a more conventional physical injury.”
Questions:
1. When conflicting medical opinions are presented, should the advice of a medical expert count
more heavily than the opinion of a general physician? Explain
your answer.
2. Is the charge of discrimination presented by Donald’s lawyer relevant to this case? Explain
your answer.
3. If you were presented with this case, what decision would you reach? Explain.
Chapter 1
2
Promoting Safety and Health
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Learning Outcomes
Summarize the general provisions of the Occupational Safety and Health Act (OSHA)
Describe the measures managers and employees can take to create a safe work environment
Identify ways to control and eliminate various on-the-job health hazards
Describe the programs organizations utilize to build better health among their workforces
2
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Occupational Safety and Health Act (OSHA)
General provisions
Assure safety and health of America’s workers by setting and enforcing standards
Provide training, outreach, and education
Establish partnerships
Encourage continual improvements in workplace safety and health
OSHA’s coverage
Private sector employees
Public employees in state and local governments
3
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3
OSHA Standards
Employers need to:
Become familiar with those standards that are applicable to their establishments
Ensure that their employees use personal protective gear when required for safety
Enforcement of the Act
OSHA is authorized to:
Conduct workplace inspections
Issue citations
Impose penalties on employers
4
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4
OSHA’s System of Inspection Priorities
5
Inspection of imminent danger situations
First Level
Investigation of catastrophes, fatalities, and accidents that result in hospitalization of five or more employees
Second Level
Investigation of valid employee complaints of alleged violations of standards or of unsafe or unhealthful working conditions
Third Level
Special-emphasis inspections aimed at specific high-hazard industries, occupations, or substances that are injurious to health
Fourth Level
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5
Citations and Penalties
6
Violation that has a direct relationship to job safety and health, but one unlikely to cause death or serious physical harm
Other than serious
Violation for which there is substantial probability that death or serious physical harm could result
Serious
Violation that the employer intentionally and knowingly commits
Willful
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6
OSHA Consultation Assistance
Onsite consultation
Consultants from the state government or private contractors help employers identify hazardous conditions and determine corrective measures
Cooperative programs
Alliances
Strategic Partnership Programs (SPPs)
Voluntary Protection Programs (VPPs)
Safety and Health Achievement Recognition Program (SHARP)
7
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7
Responsibilities and Rights Under OSHA
Employers’ responsibilities and rights
Inform all employees about the safety and health requirements of OSHA
Required to keep certain records and post an annual summary of work-related injuries and illnesses
Provide employees with protective equipment when necessary and ensure it is used
Provide workers with safety training and be prepared to discipline employees for failing to comply with safety rules
8
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Incidence Rate
The number of injuries and illnesses per 100 full-time employees during a given year
Same formula can be used to compute incidence rates for:
Number of workdays lost because of injuries and illnesses
Number of nonfatal injuries and illnesses without lost workdays
Cases involving only injuries or only illnesses
9
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9
Employee’s Responsibilities and Rights Under OSHA
Required to comply with all applicable OSHA standards
Report hazardous conditions
Follow all employer safety and health rules and regulations
Right to demand safe and healthy conditions on the job without fear of punishment
Right-to-know laws: Require employers and manufacturers to give employees information about the toxic and hazardous substances
10
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Promoting a Safe Work Environment
Creating a culture of safety
Interviewing for safety and fitness-for-duty tests
Fitness-for-duty evaluations: Determine an employee’s physical, mental, and emotional fitness
The key role of the supervisor
Communicate to an employee the need to work safely
Proactive safety training programs
Safety and health training is legally required
11
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11
Enforcing Safety Rules
Ways to involve and engage employees in company safety programs
Jointly set safety standards with managers
Participate in safety training
Help design and implement special safety training programs
Establish safety incentives and rewards
Be involved in accident investigations
12
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12
Investigating and Recording Accidents
Recordable case: Any occupational death, illness, or injury to be recorded in the log
Recordable accidents
Death
Days away from work
Restricted work or transfer to another job
Medical treatment beyond first aid
Other problems include loss of consciousness or diagnosis of a significant injury or illness by a healthcare professional
13
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13
Figure 12.3 – Guide to Recording Cases under the Occupational Safety and Health Act
14
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Safety Hazards and Issues
Fatigue
More of a problem in organizations that operate around the clock or have night shifts
May not result in life or death consequences for most jobs
Distracted driving
Employer can be penalized for giving workers incentive to engage in distracted driving
15
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15
Safety Hazards and Issues
Workplace violence – Any physical assault, threatening behavior, or verbal abuse occurring in the work setting
Beatings and stabbings
Suicides
Shootings
Rapes
Near suicides
Psychological traumas such as threats
Obscene phone calls
16
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16
Safety Hazards and Issues
Reducing violence in the workplace
Management commitment and employee involvement in preventing acts of violence
Analyzing the workplace to uncover areas of potential violence
Preventing and controlling violence by designing safe workplaces and work practices
Providing violence prevention training throughout the organization
Evaluating violence program effectiveness
17
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17
Figure 12.4 – Violence Indicators: Know the Warning Signs
18
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Safety Hazards and Issues
Workplace emergencies
Floods
Hurricanes
Tornadoes
Fires
Toxic gas releases
Chemical spills
Radiological accidents
Explosions
Civil disturbances and terrorism
19
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19
OSHA requires companies to have emergency action plans to deal with incidents
Emergency action plans
Procedures for reporting a fire or other emergency
Evacuating a facility
Accounting for employees after an evacuation
20
Safety Hazards and Issues
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Safety Hazards and Issues
Crisis management teams
Composed of hourly and managerial employees
Work in conjunction with HR to conduct initial risk assessment surveys
Develop emergency action plans
Perform crisis intervention during emergency events
Mandate
Gather facts about threat
Decide if organization should intervene
Determine most appropriate method
21
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Figure 12.5 – Calming an Angry Employee
22
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Figure 12.6 – Key Elements for a Successful Ergonomics Program
23
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Creating a Healthy Work Environment
Health hazards and issues
Cumulative trauma disorders: Injuries of the muscles, nerves, tendons, ligaments, joints, and spinal discs caused by repeated stress and strains
Computer workstation issues
Visual difficulties
Muscular aches and pains
Job stress
24
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24
Creating a Healthy Work Environment
Chemical hazards
Material safety data sheets (MSDSs): Document that contains vital information about hazardous substances
Smoking and tobacco smoke
Organizations initiate smoking policies specifying when and where smoking will be allowed
Bloodborne pathogens
In industries where employees may come in contact with blood or other body fluids, employers are required to follow OSHA’s bloodborne pathogen standards
25
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Building Better Physical and Emotional Health Among Employees
Issues that workplace programs can address to help improve employee welfare
Wellness and weight issues
Increasing a person’s physical exercise
Adopting nutritional dietary programs
Job stress and burnout
Stress: Any adjustive demand caused by physical, mental, or emotional factors that requires coping behavior
26
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Building Better Physical and Emotional Health Among Employees
Eustress: Positive stress that accompanies achievement and exhilaration
Distress: Harmful stress characterized by a loss of feelings of security and adequacy
Burnout: Severe stage of distress, manifesting itself in depression, frustration, and loss of productivity
Depression: Negative emotional state marked by feelings of:
Low spirits
Gloominess
Sadness
Loss of pleasure in ordinary activities
27
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Building Better Physical and Emotional Health Among Employees
Alcoholism
Classified as a disability under American with Disability Act (ADA)
Prevalent across the sexes
Affects workers in every occupational category
Drug abuse
Abuse of illegal drugs by employees increases costs for organizations due to:
Safety risks and theft
Reduced productivity
Absenteeism
Accidents
28
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28
Figure 12.8 – Tips for Reducing Job-Related Stress
29
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29
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Learning Outcomes
Detect strategies companies use to develop benefits plans that are cost effective
Identify and explain the employee benefits required by law
Describe the types of work/life benefits that employers may provide
Describe the different types of retirement programs and pension plans and the regulations related to them
*
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Elements of a Successful Benefits Program
Many forces are weighed and kept in balance for benefits programs to succeed
Needs of employees are considered as they can differ from firm to firm
*
*
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Selecting Benefits
When designing benefit programs, company can:
Purchase detailed compensation data
Hire outside firms to aid in the designing process
Involve employees’ participation
Conduct opinion survey
Establish committees to over look the program
*
*
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Flexible Benefits
Flexible benefits plans
Enable individual employees to choose benefits best suited to their particular needs
Prevent certain benefits from being wasted on employees who have no need for them
Employees are offered core benefits package of life and health insurance, sick leave, and vacation
Give certain amount of funds to purchase other benefits needed through the plan
*
*
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Advantages of Flexible Benefits
Employees select benefits of greatest value to them
Employers manage benefits costs by limiting the dollars being spent
Employees are compensated by funds for other benefits
Prepaid legal services
Financial planning
Dental insurance
Long-term care insurance
*
*
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Administering Benefits
Program can be costly and time consuming
Managing the benefits program on an online platform becomes easier
Online benefits system is called employee self-service (ESS)
Results in significant cost savings
Feedback of different online systems being trialed, can be obtained
*
*
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Communicating Employee Benefits
Improved with passage of Employee Retirement Income Security Act (ERISA) in 1974
Requires employees to be informed about their pension and other benefits in a understandable manner
Allows suing of employers for misleading about health and welfare benefits
Using multiple media techniques
Firms mail out printed benefit statements with detailed explanation of an employee’s benefits
*
*
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Designing Benefits Information
Avoid complex language when describing benefits
Explain purpose of a benefit, its value for employees, and pros and cons of different benefit plans
Use graphics to make information understandable at a glance
Provide numerous examples illustrating how a benefit choice might affect different types of employees
*
*
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Cost Containment Strategies
Firms require employees to pay part of the cost of their benefits
Increase amounts paid for benefits in the form of premiums, copays, and deductibles
Large companies cut health care plans, formerly provided to retirees
*
*
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Containing Medical Benefits Costs
Overuse of costly health care services have lead firms turn to
Health savings accounts
High-deductible health insurance plans (HDHP)
Insurance plan characterized by high deductibles and low premiums
Amounts contributed is deducted from their earnings when paying income taxes
*
*
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Containing Medical Benefits Costs
Health care spending account (HSA) along with HDHP
Employers and employees contribute to on a pretax basis
Advantage – Funds belonging to the employee remain in the account until the end of the year, even if he or she leaves the company
Disadvantage of HDHP
On receiving a treatment, employee has to pay a deductible
Percentage of the employee’s care or all of it until a high threshold is met
*
*
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Containing Medical Benefits Costs
Health maintenance organizations (HMO) and preferred provider organizations (PPOs) serve as vehicles for reducing costs
Reason – Offer discounted rates
HMO: Organizations of physicians and health care professionals that provide a wide range of services to subscribers and dependents on a prepaid basis
PPO: Network of physicians who establish an organization that guarantees lower health care costs to employers and their employees
*
*
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Containing Medical Benefits Costs
HMO and PPO are couple with tax advantaged accounts
Health reimbursement account (HRA) – Allows employees to be reimbursed by their companies for their out-of-pocket expenses
Flexible spending account (FSA) – Used by employees to pay for health-related expenses
*
*
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Containing Dental, Optical, and Mental Health Benefits Costs
Dental plans
Help pay for dental care costs
Encourage employees to receive regular dental attention
Optical benefits
Cover or offset cost of seeing an optometrist once or twice a year, cost of contacts lenses and glasses purchased periodically
Mental Health Parity and Addiction Equity Act
Requires group health plans to treat mental health benefits the same way they do medical and surgical benefits
*
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Containing Additional Costs
To combat obesity and related problems, companies offer lower health care premiums
Firms are penalizing employees for unhealthy habits such as smoking, by charging them higher health care premiums
Companies are waiving deductibles and copays if employees are travelling abroad for medical procedures
*
*
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Value-Based Health Initiatives
Focus on more than cost-cutting
Look at medical care their employees use and need
Target benefits and health programs based on those requirements
*
*
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Wellness Programs
Sponsored by employers
Designed to encourage employees to maintain and improve health and well-being by
Getting regular checkups
Eating properly
Exercising
Managing stress levels
*
*
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Disease Management Programs
Provide patients and their caregivers with information on monitoring and treating medical conditions
Coordinating communication between them, their health care providers, employers, and insurers
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Employee Assistance Programs
Services provided by employers to help workers cope with a wide variety of problems that interfere with the way they perform their jobs
Provides diagnosis, counseling, and referral for advice or treatment related to
Alcohol or drug abuse
Emotional difficulties
Financial or family difficulties
Counselling services are provided by some companies
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Employee Benefits Required by Law
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Social Security Insurance
Protect workers against the loss of earnings resulting from old age and unemployment
Amended to include disability or dependents, incase of death of the worker supporting them
Together known as Old Age, Survivors, and Disability Insurance (OASDI)
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Social Security Insurance
Supported by tax levied against an employee’s earnings
Matched by employer in each pay period
Tax revenues are used to pay major benefits
Retirement
Disability
Survivors’
Medicare
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Unemployment Insurance
Protects workers who lose their jobs through no fault of their own
Eligible workers:
Submit an application for unemployment compensation with state employment agencies
Register for available work
Willing to accept any suitable employment that may be offered to them
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Workers’ Compensation Insurance
State-mandated insurance provided to workers to defray the loss of income and cost of treatment due to work-related injuries or illness
Covers
Injuries on the job
Work-related illnesses
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
COBRA Insurance
Mandates that employers make health care coverage at the same rate the employer would pay
Available to employees, their spouses, and their dependents on termination of employment, death, or divorce
Coverage offered for 18 to 36 months depending on qualifying guidelines
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Benefits Provided by the Patient Protection and Affordable Care Act
Firms that employ fifty or more people working for thirty hours or more per week, but do not offer them health insurance are required to pay a penalty to the government
Employers must offer coverage for employee’s children until they turn twenty-six
Copays or deductibles cannot be charged to employees and dependents for preventive care related services
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Benefits Provided by the Patient Protection and Affordable Care Act
Lifetime dollar limits on key health care benefits are not allowed
Employees cannot lose insurance coverage solely because of an honest mistake made on insurance applications
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Family and Medical Leave Act (FMLA)
Employer must grant an eligible employee up to 12 workweeks of unpaid leave in a 12-month period for
Birth of and care for a newborn child
Adoption or foster care placement of a child
Care for an immediate family member
Serious health condition of the employee
On return from FMLA leave, employee must be restored to his original job or to an equivalent job
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Work-Life Discretionary Benefits
Organizations seek to create a work/life organizational climate that allows employees to balance work with personal needs
Organization are adapting work-life programs to accommodate the entrance of Generation Y employees into the workplace
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Child and Elder Care
Child care – Provided to a child by an employee who remains actively at work
Elder care: Provided to an elderly relative by an employee who remains actively at work
Backup care program: Employer provides or subsidizes temporary care for its employee’s elders or children when their regular arrangements fall through
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Payment for Time Not Worked
Vacations with pay
Paid holidays
Sick leave
Sabbaticals
Paid (or unpaid) time away from a job for four or more weeks employees take off to renew themselves before returning to work
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Payment for Time Not Worked
Severance pay
One-time payment sometimes given to an employee who is being involuntarily terminated
Supplemental unemployment benefits (SUBs)
Plan that enables an employee who is laid off to draw, in addition to state unemployment compensation, weekly benefits from the employer that are paid from a fund created for this purpose
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Life Insurance
Provides:
Death benefits to beneficiaries
Accidental death and dismemberment benefits
Premium costs are paid by employer
Face value of the life insurance is equal to two times yearly wages of the employee
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Long-Term Care Insurance
Designed to pay for nursing home and other medical-related costs during old age
Strategic benefit to attract and retain employees
Workers caring for older parents and relatives
Advantage
Enrolled employees receive coverage automatically and need not pass physical examination
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Other Benefits and Services
Credit unions
Serve financial needs of employees and attract potential employees
Educational assistance
Proactive employers view educational assistance programs
Also called tuition aid
Business tool that supports talent management as critical human capital investment
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Retirement Programs
No law mandating retirement age in United States
Factors that influences an employee to retire
Personal/financial condition
Health
Family obligations
Satisfaction from work
Ability to meet changing job demands
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Preretirement and Phased Retirement Programs
Requires major financial lifestyle adjustment
Seminars are conducted to create awareness of kinds of adjustments required when employees retire
Phased retirement: Program that allows its employees to gradually cut their hours before retiring
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Pension Plans
Reward employees for their years of service by providing them with income when they retire
Categorized based on
Contributions made by employer
Amount of pension benefits to be paid
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Pension Plans
Contributions are made jointly by employees and employers
Contributory plan
Contributions are made solely by the employer
Noncontributory plan
Amount an employee is to receive on retirement is specifically set forth
Defined benefit plan
Establishes basis on which an employer will contribute to the pension fund
Defined contribution plan
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
401(k) Savings Plans
Allows employees to save through payroll deductions
Reduces taxable income and have their contributions matched by the employer
Depends on:
Money that goes into the plan
Rate of return on investments purchased
Stock-funded plans
Price of the company’s stock
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
401(k) Savings Plans
Shortcomings
Employees need not participate in the plans
Leaves them short on retirement income aside from social security after they retire
Employees lack investing experience and do not know the best way to invest the money in their 401(k)s
Congress passed the Pension Protection Act in 2006
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Pension Protection Act
Allows employers to automatically enroll employees in defined contribution plans
Permits higher contribution limits for 401(k) plans
Enables workers to build larger retirement holdings
Gives workers greater control over how their accounts are invested
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Cash Balance Pension Plans
Allows employer to make yearly contribution into employee’s retirement savings account
Based on percentage of employee’s pay, typically four percent
Benefits depend on employee’s age and years of service with the company
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Federal Regulation of Pension Plans
Private pension plans are subject to federal regulation under Employee Retirement Income Security Act (ERISA)
Vesting: Guarantee of accrued pension benefits to participants at retirement age, regardless of their employment status at that time
Prevents companies from laying off employees before they retire, so they are unable to collect their pensions
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Federal Regulation of Pension Plans
According to ERISA
Pension plans must provide employees with vested rights to their accrued benefits after they meet a certain minimum years of service
Minimum funding standards should be followed to ensure availability of pension benefits to employees upon retiring
Pension Benefit Guaranty Corporation (PBGC) was created
Ensures that if a plan is terminated, guaranteed minimum benefits are paid to participants
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Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Domestic Partner Benefits
Employers are granting benefits to employees who establish domestic partnerships
Can consist of both same-sex and unmarried opposite-sex couples
Require employees to sign an Affidavit of Domestic Partnership
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