In this issue:

• Employees Have ADA Responsibilities Too
• Am I Required to Pay My Employees if We Close for a Blizzard?
• Three Employee Benefits Administration Best Practices
• Think Outside the Box for Voluntary Benefits
• Did You Know?

Am I Required to Pay My Employees if We Close for a Blizzard?

As an employer, you made the difficult decision to close your office due to the big (or not as big as expected) blizzard so that no one needs to cross-country ski their way in. You’ve taken into account the safety and well-being of your employees – but now you’re wondering “Am I required to pay my workforce if I made the decision to close the office?” The answer to this question typically depends on whether your employees are “exempt” salaried or not.

Exempt Employees: If your exempt employees worked any portion of the workweek, you are required by law to pay their entire salary, whether or not the workplace is closed for a natural disaster, such as snow, hurricane, or flood. FLSA regulations state, “If the employee is ready, willing, and able to work, deductions may not be made for time when work is not available.” This would include natural disasters, so if your employees are able to work after a blizzard then they must be paid even if they didn’t work any portion of the week. Additionally, if they can’t get there on time or have to leave early due to the blizzard but the office is open, you cannot deduct for any partial days they worked.

Vacation Time and PTO: You CAN deduct from their vacation time or PTO for the time taken. However, if they have no accrued vacation or PTO available, you still cannot deduct from their pay if they are exempt.

Non-Exempt Employees: If your employees are non-exempt, then you do not have to pay for the time the office is closed. However, if you take deductions from a non-exempt salaried employee it may affect the way overtime is calculated. If he/she reports to work after a natural disaster, only to find out that the workplace is closed (assuming he/she was not notified of the closure), then your state law may require some pay.

State by State: New York law and the District of Columbia law require employers to pay employees at least four hours of wages. Massachusetts and Rhode Island require three hours of pay. New Hampshire requires two hours minimum pay for showing up. New Jersey and Oregon laws require employers to pay employees at least one hour of wages. Other states that have some requirements for pay if workers report for duty as scheduled include California (2-4 hours) and Connecticut (only certain industries, 2 – 4 hours).

If you have further questions or concerns about FLSA or your specific state’s natural disaster pay requirements, please contact Jena Judd, HR Business Partner, by phone (443-321-7708) or by email (jenajudd@hri-online.com).

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Three Employee Benefits Administration Best Practices

The Affordable Care Act has caused several employers to reconsider their current employee benefits plans. Whether your business is just now being required to offer health insurance (as part of the employer mandate), or if you’ve always offered health insurance, it’s likely that recent events have brought your company’s benefits plans to the forefront of executive conversations. Here are three best practices employers should keep in mind when thinking about employee benefits administration.

1. Thinking of Benefits as Part of the Strategic Plan. If your business is considering tweaking or even redesigning its current plans, think about your benefits plan as an extension of your company’s overall strategic plan and mission – what do your plans say about your company to potential recruits? Take a moment to think about the kind of employee your organization wants to employ, and design a plan that not only attracts these employees but encourages them to stay for years to come. If you do find that a change in your employee benefits administration is in order, consider consulting with an expert third-party administrator who can tailor an employee benefits package for your company.
2. Ensuring Employees Understand Their Benefits. Creating a great employee benefits program is one thing. Explaining those benefits in a way that employees understand is quite another. If your workers don’t fully understand your company’s benefits, they won’t be able to take full advantage of them. Taking the time to educate employees on their benefits options will result in greater participation and fewer confused employees when it comes time for them to choose a plan.
3. Implementing Workplace Wellness Policies. As of 2013, almost half of all US employers offered some sort of wellness program or initiative, ranging from on-site gyms or exercise classes to simple, employee-driven initiatives like creating walking groups. Beyond serving as fun perks to current and potential employees, encouraging and incentivizing employee health has several clear advantages that can have a significant impact on your company’s bottom line. Creating a culture that promotes overall health and wellness can help decrease the number of workplace accidents, lower insurance costs, and reduce employee absenteeism.

If you’d like to discuss your current benefits offering and how it can become a talent attraction and retention tool, please contact Jena Judd, HR Business Partner, by phone (443-321-7708) or by email (jenajudd@hri-online.com).

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Think Outside the Box for Voluntary Benefits

Employers have extensive options for customizing their voluntary benefits programs. The list can include anything from employer-negotiated banking fees and travel insurance to a dry-cleaning service and discounted days at amusement parks.

Like any benefits program, the primary purpose of voluntary value-added benefits is to help employers attract and retain a talented workforce. If chosen well, voluntary benefits offerings can also help organizations build their brands.

But providing too many options may overwhelm employees. Ask workers which voluntary benefits would best meet their needs or strive to address potential trouble spots; you can do this individually or ask your HR department to conduct a survey. Some options include:

• Non-Retirement Savings: If a large number of workers are taking out loans against their 401(k) plans, they may be having financial difficulties. An employer with a large proportion of middle-income employees might offer a voluntary payroll deduction savings program that allows workers to pay for unplanned expenses, such as new appliances, vacations, or a major car repair, through individual paycheck deductions.
• Care Advisory Services: Alleviate distraction and absenteeism by helping employees to manage the health and well-being of children, elderly relatives – and themselves. Consider offering an Employee Assistance Program (EAP) which can provide support for the issues previously listed as well as substance abuse, emotional distress, and financial or non-work related legal concerns.
• Voluntary Health Offerings: In addition to your existing health, dental, and vision offerings, think about including supplemental (i.e. employee paid-for/voluntary) life insurance, long-term disability, and critical-illness plans.

For more information on how you can offer voluntary benefits to your workforce, please contact Jena Judd, HR Business Partner, by phone (443-321-7708) or by email (jenajudd@hri-online.com).