Exam 3 Study Guide Flashcards
benefits
non monetary pay
rewards given for membership
job security
legally required benefits
social security unemployment insurance unpaid family/medical leave COBRA workers compensation
why do companies offer benefits?
legally required
attract and retain employees
spending money before saves lots of money later
social security
comes from the social security act of 1935
retirement income: can choose when to start receiving retirement income (62 or 70 are options)
disability: strict definition of disability - must last one year or result in death (avg. check in 2013 was $1132/mo.)
medicare: health insurance coverage for 65+, which is usually 1.455 of a paycheck
survivor benefits: for a deceased employee’s surviving family members. Average survivors check was $1214 in 2013
unemployment
temporary income when involuntarily unemployed
to qualify, must meet requirements showing they had been employed, be available and actively looking for work, and involuntary unemployment (laid off)
Usually lasts around 26 weeks.
unpaid family and medical leave (family and medical leave act)
companies with 50+ employees must provide up to 12 weeks unpaid leave
Birth or adoption of a child
Care for sick family member: spouse, child, or parent
Own serious health needs
Active duty (e.g., family member injured in active duty – 26 weeks)
Many do not take the whole three months if they can help it
worker’s compensation
Medical care, continuing income and rehab expenses for those injured at work; survivors of those who die from the job
No-fault system
Amount paid depends on risk for an occupation, frequency/severity of injury, and specific injury
Roughly 2/3rds of salary at the time of injury
HR’s role in WC: safety and training, audit workers’ comp claims, and redesign jobs to lower risks
injury is a cost of doing business
covers employer’s: assumed employment risk, negligent co workers, and contributory negligence *employees agree not to sue company in exchange for worker’s comp
covers employees: cost of injury, temporary, partial, or permanent disability, and survivors insurance
health insurance
Health care coverage for employees & dependents
Medical, dental, vision, wellness programs, employee assistance programs, mental health & counseling
Patient & Affordable Care Act (PACA) of 2010 aka “Obamacare” - Aims to provide more affordable and consistent health care for Americans
Employers with 50 or more full time equivalent (FTE) employees are required to provide health coverage to full-time employees or else pay a tax penalty
Since health care is so expensive, companies are making employees pay more out of pocket, going for group discounts, and promoting employee health.
health insurance continued
Medical insurance terminology
COBRA - Allows employees to keep being enrolled in their health insurance 18-36 months after separating from company. “Qualifying event” = termination (not gross misconduct), reduced hours, employee death (in which case, survivors can start paying for it)
Health maintenance organization (HMO) - In-network coverage; need referrals to see specialists and pay out of pocket for those services. Costs less, but has limited access to services
Preferred provider organization (PPO) - Has in-network AND out-of-network coverage; more expensive but more flexibility and providers accessible under coverage
Employee wellness program - Aimed to reduce specific health risks (e.g., BP, obesity) via education, fitness facilities, and/or counselors.
voluntary benefits
insurance (life or long-term disability)
paid time off - sick leave, vacations, severance, and paid holidays
employer services - counseling, child care, elder care, gyms, foods, discounts
voluntary benefits: retirement
Defined Benefits (pension) plans: Fixed dollar amount of retirement income (based on salary in last 3-5 yrs). “Defined” in this context means you know what will be paid out to you upon retirement. Usually, the employer contributes everything in a defined benefits plan
Employment Retirement Income Security Act (ERISA) - Sets minimum standards for most voluntarily established pension and health plans to provide protection for individuals in these plans Vesting & portability
Created the Pension Benefit Guarantee Corporation (PBGC) - Insurance for retirement benefits; guarantees a basic benefit during employer’s financial difficulties
Major shift from defined benefits (pension) to defined contribution plans over the past few decades.
defined contribution plan
Contributions = Payments made for retirement from company, employee, or both.
“Defined” in this context means you know what is going into the retirement account now (e.g., 8%), but no guarantee on what will be there when you retire (due to investment risks, etc.).
E.g., 401k
Employees contribute by having part of their paycheck rolled into a retirement savings account (e.g., 8% per month).
Employer may match it, double it, or contribute absolutely nothing.
employee assistance programs (EAPS)
For alcohol/drug abuse, domestic violence, emotional impact of diseases, depression, eating disorders.
Accessed in a confidential manner (e.g., toll-free number or a web site).
Employees who reach out for these services are treated privately and their issues are not addressed with the employer.
Often addresses short-term problems, and any longer-term conditions (e.g., depression, stress) are referred to the appropriate resource (like a mental health provider).
advantages of EAP’s
Reduced costs:
- Turnover, absenteeism
- Medical costs
- Unemployment insurance rates & workers’comp. rates
- Accidents
- Disability insurance
administering benefits
Flexible benefits plans or Cafeteria plans
Benefit plans that enable employees to choose the benefits that are best suited to their particular needs
A basic or core benefits package of life and health insurance, sick leave, and vacation ensures that employees have a minimum level of coverage
Employees use “credits” to “buy” whatever other benefits they need.
how to run a successful benefits program and control costs
online administration of benefits
higher deductibles
wellness programs
audit claims
1) competitive benefits information
2) allowing employee involvement
3) administering benefits
4) communicating employee benefits information
5) flexible benefits for a diverse workforce
safety and health - it’s the law
In 2015, 2.9 million private-sectors workers reported nonfatal injuries and illnesses at work
Each year, the cost these injuries and illnesses totals more than $156 billion
$1 billion per WEEK in workers’ compensation alone!
In 2016, 5,190 employees died from work accidents
Back injuries, chronic pain, respiratory problems, and so on
Laws at state and federal levels to combat these problems.
OSHA of 1970
To “assure the safety and health of America’s workers by setting and enforcing standards; providing training, outreach, and education; establishing partnerships; and encouraging continual improvements in workplace safety and health.”
coverage - All nongovernmental employers and employees; state and local government employees
standards:
Apply to general industry, maritime, construction, and agriculture
Cover the workplace, machinery and equipment, material, power sources, processing, protective clothing, first aid, and administrative requirements
enforcing OSHA standards
OSH Administration helps to enforce OSHA. Employers have to:
1) Provide a safe workplace
2) Comply with OSHA standards
3) Document workplace injuries
4) Disclose hazard information to employees
Workplace inspections Workplace inspections Citations and penalties On-site consultations Voluntary protection programs Training and education
OSHA inspection priorities
First Level - Inspection of imminent danger situations
Second Level - Investigation of catastrophes, fatalities, and accidents that result in hospitalization of five or more employees
Third Level - Investigation of valid employee complaints of alleged violations of standards or of unsafe or unhealthful working conditions
Fourth Level - Special-emphasis inspections aimed at specific high-hazard industries, occupations, or substances that are injurious to health
citations and penalties
Other-Than- Serious: A violation that has a direct relationship to job safety and health, but one unlikely to cause death or serious physical harm. OSHA may propose a penalty of up to $7,000-12,600 for each violation.
Serious: A violation where there is substantial probability that death or serious physical harm could result and the employer knew, or should have known, of the hazard. OSHA may propose a mandatory penalty of up to $7,000-12,600 per violation.
Willful: A violation that the employer intentionally and knowingly commits, or a violation that the employer commits with plain indifference to the law. OSHA may propose penalties of up to $ 70,000126,000 per violation.
incidence rate
a way to calculate the # of injuries and illnesses during a given year
why do incidents happen?
Unsafe working conditions, work schedules and fatigue, unsafe acts (e.g., Unsafe speeds, tampering with safety devices, lifting improperly), some people are more… accident prone.
creating a culture of safety
Promoting Safety Awareness:
Role of Supervisor (communicating the need to work safely)
Proactive Safety Training Program
First aid, defensive driving, accident prevention techniques, hazardous materials, and emergency procedures
Using technology to help with safety awareness and training
Regulatory instruction•OSHA’s Web-based eTools
