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From the Hotline: Retaining Online Job Applications

Question: How long is a small employer required to keep job applications submitted through our website? We are in the state of Ohio. Answer: Before we discuss the records retention requirements for employment applications, here is the federal Equal Employment Opportunity Commission’s definition of an applicant submitting a request for employment through a company website:  …

Trends in CEO Compensation

A recent study by Towers Watson has revealed that compensation for CEOs at the nation’s largest corporations has only increased moderately for 2011, despite improved financial results. The study also found that most companies are receiving strong support in the second year of mandatory say-on-pay shareholder votes. The Towers Watson analysis found that median annual …

From the Hotline: Negative PTO and Exempt Employees

Question: Can we deduct a negative PTO balance from an exempt California employee’s final paycheck? Answer: According to the California Chamber of Commerce website and the California government websites (DLSE Enforcement Policies and Interpretations Manual sec. 15.1.12 and Lab. Code sec. 227.3), vacation and PTO are considered “wages.” Even if the employee authorizes a deduction …

From the Hotline: Exempt Employees and After Hours Projects

Question: How should a Texas company pay exempt-level employees for project work after hours: by the hour or in a bonus format? Answer: Because the employees are exempt from overtime for their regular jobs with the company and they are volunteering to do this project after hours, the company has discretion as to how to …

From the Hotline: Unused Vacation at Time of Termination

Question: Is an Illinois employer required to pay the company owner for unused vacation and/or sick pay at time of termination? Answer: The answer to your question depends upon how your company and the ownership interests are structured. Under the Illinois statutes (820 Ill. Comp. Stat.115/5), “when an employment contract or company policy provides for …

From the Hotline: Short-Term Disablity Benefits Reductions

Question: When should we notify employees on FMLA of reductions in their short-term disability benefits? Answer: The rules surrounding maintaining FMLA benefits while the employee is on leave are specific to group health plans.  For all other benefits, employers should follow their standard practice for notifying employees of their benefits entitlements.  You know your employees, …

California Supreme Court Rules Employers aren’t Obligated to Monitor Lunch Breaks

The California Supreme court ruled Thursday that employers are under no obligation to ensure that workers take legally mandated lunch breaks. The case was initially filed nine years ago against Brinker International (Chili’s) by restaurant workers complaining of missed breaks–a violation of California labor law. The court sided with businesses-unanimously- by ruling that requiring companies …

From the Hotline: Performance Based Compensation Plans

Question: Can you provide guidelines for developing a performance-based compensation plan? Answer: Performance-based compensation plans vary by the “personality” of the organization.  What follows is a set of guidelines for designing a plan, and you will need to think about what best fits in your company.  We strongly recommend that you involve your executive management …