Category: Uncategorized

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FLSA Exemptions: How Many Workers Must Report to a Working Foreman to Make Him or Her a ‘Supervisor’?

We have a lot of production workers, several “working foremen,” and a few supervisors. A foreman has said that because of the number of people working under him (10 employees), he should be paid as a supervisor. So now we’re trying to sort out the distinction between workers, working foremen, and supervisors. Is there a […]

Employee Leaves: What Should I Do When Managers Don’t Want to Reinstate Employees Who Went Out on FMLA/CFRA Leave?

We’re having problems with people coming back from FMLA/CFRA leave. Two particular situations worry us. In one case, the manager says, “I’ve redistributed the work and there’s no job anymore.” And in the other, the manager says, “We’ve hired a temp who is much better—we don’t want the person back.” Don’t we still have to […]

Bulletin: U.S. Supreme Court rules on ERISA case

In a unanimous decision favorable to employees, the U.S. Supreme Court recently ruled that individual 401(k) plan participants can sue plan administrators under the federal Employee Retirement Income Security Act (ERISA) for breach of fiduciary duty. James LaRue had initiated the lawsuit after his employer failed to follow his investment instructions, which he said resulted […]

U.S. Supreme Court Set To Rule On ERISA Case

As of press time, the U.S. Supreme Court was set to rule on a case that could redefine the claims and remedies allowed under the federal Employee Retirement Income Security Act (ERISA). The lawsuit arose after a 401(k) plan participant asked the plan administrator, which was his employer, to change his elections. The participant claimed […]

IRS Notice Provides Relief Regarding Non-Qualified Deferred Compensation Plans

The IRS recently issued Notice 2007-100, which gives employers an opportunity to correct unintentional operational mistakes concerning nonqualified deferred compensation plans. Internal Revenue Code Section 409A, which covers these plans, specifies the manner in which they must be reported to avoid premature taxation. The notice gives employers the opportunity to self-correct unintentional operational errors—the failure […]

DOL Proposes Rule To Reveal 401(K) Plan Fees

The U.S. Department of Labor (DOL) has issued a proposed rule that would force 401(k) plan administrators to report compensation they derive directly and indirectly from their services. In addition, the rule would require plan administrators to disclose in writing potential conflicts of interest to plan fiduciaries, namely employers. The regulation’s main purpose is to […]

Retirement Benefits: EEOC Allows Employers to Coordinate Retirees’ Health Benefits with Medicare

A new U.S. Equal Employment Opportunity Commission (EEOC) rule gives employers some relief regarding their ability to reduce or eliminate retirees’ healthcare benefits once they become eligible for Medicare. Such a reduction or elimination will not violate the Age Discrimination in Employment Act (ADEA), the federal statute that prohibits age-based discrimination, the new rule states. […]

Wage Disputes: Time Limit to Recover Waiting-Time Penalties Clarified

A waiting-time penalty is assessed when an employer willfully fails to pay a worker the compensation he or she is entitled to on termination of employment. A California appeals court recently ruled that when a worker seeks waiting-time penalties but not unpaid final wages, his or her claim is subject to a one-year statute of […]