Wages & Benefits Center
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Pensions are an important part of the wages and benefits employees receive. As the baby-boom generation ages, and as workers become increasingly anxious about the continued stability of the Social Security system, pensions sponsored by an employer will become even more important to employees. Federal law regulates the operation of most pension plans. These laws are extremely complicated. If you have questions about the operation of your pension plan, or about the benefits to which you are entitled, you should contact an attorney who is knowledgeable in this area of the law.
Frequently Asked Questions about Wages and Benefits
Q: How often does the minimum wage increase?
A: No regular increase schedule exists. The federal minimum wage was $5.15 per hour for 10 years until raised by Congress on July 24, 2007, to $5.85 per hour. Congress scheduled additional 70-cent increases for the same day each in 2008 and 2009. Most states have enacted their own minimum-wage provisions, several of which are higher than the federal rate. In any given state, the higher of the state or federal rate will apply to workers covered under both schemes and the state rate will apply to employees not subject to the federal law.
Q: What is the prevailing wage?
A: Federal laws and those in most states require that private employers with government contracts pay their employees working on these public contracts the prevailing wage, meaning no less than the usual wages and benefits that comparable workers in the locality are paid. The prevailing wages for workers employed under government contracts are determined by government laws or regulations.
Employees may need counsel and guidance with regard to benefits when employers threaten to disregard their rights under the Family and Medical Leave Act, ERISA (regarding insurance coverage and COBRA), unpaid accumulated vacation hours, and other related matters.
Overtime Pay, Medical Leave
To schedule a free initial phone consultation with an experienced Ohio employment lawyer regarding employee compensation and benefits issues such as overtime pay or military leave benefits in or around the Cincinnati area, contact The Law Office of Marc Mezibov.
Wages and Benefits - An Overview
The laws and regulations that govern wages and benefits in employment are complicated and difficult to understand, often involving federal, state and even local requirements. An employment law attorney can help you cut through the confusion and clarify your rights.
Wages
Originally designed to curb oppressive working hours and decrease poverty among Depression-era workers, the Fair Labor Standards Act of 1938 (FLSA) is still today the main federal legislation regulating minimum wage and overtime pay. Each state also has its own wage-and-hour laws that sometimes provide added advantage and protection to workers.
The FLSA minimum-wage or overtime provisions do not apply to all workers and the legal question of determining who benefits from these federal protections can be complex. An overly simplified view is that most private and public employers are required to apply FLSA standards to employees paid by the hour. Broadly, categories of workers exempt from the FLSA requirements include trainees; independent contractors; volunteers; particular people with disabilities; student learners; executive, administrative and professional employees (so-called white-collar exemptions); certain computer programmers; and outside sales people. The FLSA also exempts employers within certain industries and some small family businesses. Additionally, other laws usually apply to government-contract workers.
For employees to whom the FLSA applies (nonexempt employees), the federal minimum wage is $5.85 per hour, with 70-cent increases scheduled to take effect in late July each in 2008 and 2009. Employees falling under the overtime provisions must be paid time-and-one-half for hours worked over 40 in a workweek. Almost all states have set their own minimum-wage rates and overtime standards that apply when workers do not fall under the federal law or when the state law is more generous than the federal.
Unfortunately, many employers fail to comply with wage and hour laws. Common violations include:
- Not paying the minimum wage
- Paying the lower rates allowed for trainees or workers with certain disabilities to workers who should be paid the regular rate
- Not paying overtime
- Making employees work off-the-clock or wrongly classifying them as volunteers and not paying them for their work
- Deducting more for tips than the employer is allowed
- Excessively deducting for wages customarily paid in kind, such as meals or housing
Benefits in the employment context broadly encompass things that an employer does for or gives to its employees, other than wages. Some benefits may be required by law, depending on the size and type of employer, conditions of employment or the applicable state laws, including:
- Medicare and Social Security contributions
- Unemployment compensation taxes
- Workers' compensation
- Time off to vote
- Time off for jury duty
- Temporary disability benefits
- Leave for military service
- Unpaid family or medical leave
- Time off for religious observance
- Severance pay for factory closure
If you are an employee covered by a law that requires a certain benefit, such as leave for certain purposes, your employer must allow you to take advantage of that benefit with no penalty to you.
Employers usually provide additional benefits voluntarily to attract and retain good employees. Large employers usually have pre-established benefit packages, but if you are an executive or going to work for a relatively small employer, you may have some room to negotiate for benefits. The government encourages the provision of some types of benefits, such as medical insurance, by providing tax incentives to employers.
In addition to medical benefits, other types of optional benefits may include:
- Dental insurance
- Vision insurance
- Pension plans or other retirement benefits
- Legal services insurance
- Discounts on employer goods or services
- Discounts on consumer goods or services
- Educational benefits
- Paid or unpaid time off for holidays, vacations, sickness, funerals or professional accreditation activities
- Life insurance
- Short-term or long-term disability insurance
Most of these types of optional benefits are heavily regulated by complex federal and state laws and may not be administered in a discriminatory fashion.
Conclusion
Understanding your rights under the laws that govern wages and benefits is not an easy task. The rules are complicated and easily violated, even unintentionally. An attorney with experience in employment law can educate you about what you are entitled to receive and about what laws impact your optional benefits.
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