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E-Alert Item: Bush Administration Proposes Rules on Converting to Cash-Balance Plans Without Violating Age-Bias Laws

When employers convert traditional retirement plans to cash balance plans, the conversion often results in less money for workers who are closer to retirement age. And, as a result, cash balance plans have come under fire in recent years as being unfair to older workers–and possibly illegal under federal age bias laws. But the Bush […]

News Notes: Court Applies Reasonableness Standard For Adverse Employment Actions

Francisco Vasquez, a Los Angeles County probation officer, sued the county for discrimination and retaliation after he was involuntarily transferred and a warning letter was placed in his personnel file. The federal Ninth Circuit threw out Vasquez’s lawsuit, however, finding neither act was an adverse employment action. The transfer wasn’t adverse simply because Vasquez preferred […]

E-Alert Item: Workers’ Compensation: Ratings Bureau Says Industry Is Severely Under-Reserved

Over the past year, many employers have seen a huge jump in their workers’ comp premiums—and even bigger hikes may be on the way. The Workers’ Compensation Insurance Rating Bureau has just reported that the California workers’ compensation insurance industry is under-reserved by a startling $13.7 billion. The WCIRB attributes the deficit to, among other […]

News Flash: Store Managers Win Multimillion-Dollar Overtime Settlement

Mervyn’s California has agreed to shell out $7.3 million to resolve overtime claims brought by 1,600 store managers who charged they were improperly classified as exempt from overtime. The managers contend they spent most of their time stocking shelves and performing other nonmanagerial duties. Mervyn’s previously agreed to pay $4 million to settle similar lawsuits […]

Labor Dept. Urges High Court to Accept Narrow Definition of Sales Reps

By Khristine Scholtz The U.S. Labor Department, continuing its push for a narrow definition of outside salesmen, argued in a friend of the court brief that the outside-sales exemption is limited to employees who make their own sales. At issue is whether pharmaceutical sales representatives must be paid for working overtime hours, or are exempt […]

Wage and Hour: California High Court Backs Employer on Expense Reimbursement

In an important new ruling, the California Supreme Court has approved an employer’s practice of paying increased salaries and commissions to cover employees’ mileage expenses. At issue was Labor Code Section 2802, which requires employers to indemnify employees for necessary expenditures they incur as a result of the job. The employees here had argued that […]

News Notes: Employers Boosting Work/Life Benefits, Study Finds

A new study by Mellon Financial Corp. reveals that 81 percent of employers offer employee assistance programs, up from 70 percent in 1996, and 54 percent provide family sick days, up from 42 percent. Although only 6 percent of employers offered domestic partner benefits seven years ago, 35 percent of employers do now. The study […]

News Notes: New Guidance Available On Health Care Privacy Rules

As we reported in an earlier article, the government recently released new privacy regulations under the Health Insurance Portability and Accountability Act (HIPAA). As the April 14, 2003, compliance deadline approaches, the U.S. Department of Health and Human Services has issued guidance (available on our website), including frequently asked questions, explaining significant aspects of the […]