| td> | | | | time off for vacation. Again, this is something offered, |
| Over the years, one of the most important factors | | | | not mandated by law, as most people believe. Now, |
| candidates cited in searching for employment was | | | | when it comes to receiving vacation time, if it is |
| benefits. Surprisingly this was second to salary. | | | | provided by the employer, it must be treated in the |
| Considering the high cost of healthcare and | | | | same way as wages, being earned daily, which is law. |
| prescriptions, benefits have played a vital role in the | | | | The other factors protecting the employee from |
| way people look for jobs. Unfortunately, in recent | | | | accrued vacation is that once it is earned, the |
| years, we have seen a decline in the benefits being | | | | company cannot renege by taking it back and if the |
| offered. Companies are finding it difficult to keep pace | | | | employee leaves the company, regardless of |
| with the rising costs of insurance and other employee | | | | termination or voluntary leave, he or she must be paid |
| benefits, forcing them to either reduce or eliminate their | | | | earned income. |
| offering. | | | | The examples listed below will provide you with an |
| Many believe that employees are entitled to benefits, | | | | idea of what is the employee’s right versus |
| feeling it is the company’s responsibility to offer | | | | privilege: |
| some level of support. Others believe that employee | | | | Any company with a minimum of one employee is |
| benefits are a privilege not a right. For this group, they | | | | required to provide unemployment insurance, which is |
| believe that any offering is better than nothing at all. | | | | covered 100%, meaning the employee pays nothing. |
| Adding further fuel to this hotbed issue — the | | | | Workmen’s Compensation — This |
| number one reason that people file for bankruptcy is | | | | too must be provided for any company with one |
| medical bills. So, what is the truth about employee | | | | employee to include disability income, medical benefits, |
| benefits — is it a right or a privilege? | | | | and time off, paid for by the company at 100%. |
| Let’s begin by addressing the many | | | | Pregnancy Disability Leave — For |
| inaccuracies and misconceptions relating to employee | | | | companies with a minimum of five employees, |
| benefits. Myth: For Only large companies are required | | | | reasonable accommodation must be provided, typically |
| by law to provide benefits. Truth: The truth is that while | | | | between four and eight weeks. |
| some benefits are mandated, the majority are not. | | | | Vacation — This benefit is not required |
| Standard benefits such as healthcare, holiday pay, and | | | | under current law although any vacation must be |
| vacation are routinely offered by companies of all | | | | accrued and paid out to the employee upon separation |
| sizes as part of a benefits package. While most | | | | from the company. |
| companies do offer some or many of these benefits, | | | | Sick Pay — Again, by law, this is not |
| from a legal standpoint, these benefits are not | | | | required. However, under the Federal Medical Leave |
| actually governed by the law. | | | | Act (FMLA), employees under certain circumstances |
| In a competitive marketplace, employee benefits can | | | | would be provided time off (up to 12 work weeks |
| be the deciding factor for many candidates. | | | | within a 12 month period) without pay while the current |
| Organizations offer these benefits in order to attract | | | | job is protected. FMLA would cover issues pertaining |
| and retain high quality employees. Business owners | | | | to death in the family, medical leave, adoption and |
| know that providing perks to employees is a | | | | serious health issues of immediate family members. |
| worthwhile investment to attract a higher caliber of | | | | Holiday Pay — This too is at the discretion |
| employee. Therefore, while the company has to spend | | | | of the company and not mandated. |
| significant money to provide this type of coverage, | | | | Pension and Retirement — While this would |
| they do so as an investment to growing business, and | | | | not be mandatory, any coverage provided would need |
| attracting and retaining a talented workforce not | | | | to follow strict ERISA regulations and tax laws. |
| because they are required to do so. Today’s | | | | Healthcare Insurance — Finally, health |
| world is highly competitive. Individuals who have | | | | insurance is not required by law. However, when |
| graduated with a BA or even MBA usually only work | | | | coverage is offered, it would fall under the direction of |
| for top companies. This means that for small to | | | | COBRA, Cal-COBRA, and HIPPA regulations. |
| medium size organizations to compete they have to | | | | As you can see, most employee benefits are in fact a |
| find creative ways to make the opportunities more | | | | privilege and not a right. While job seekers and |
| appealing. | | | | employees might deem it unfair or even immoral, it is |
| Another misconception is that people are entitled to | | | | what the law currently states. |