Getting Ready for Winter- Developing Your Inclement Weather Policy By Maggie Johnson Winter will soon be here with all of the snowstorms, blizzards, and freezing weather that come with the season. Keeping a business running effectively during harsh weather can be challenging, but having an inclement weather policy can provide guidelines to employees about when they are expected to report to work and how they will be paid when stormy weather hits. Here are some things to consider when creating your inclement weather policy: Notifying Employees These days, we often receive accurate, advance weather reports. This allows us to plan if there is a predicted storm. Even though we are informed by various news media, it is advisable for employers to have an established notification system for employees to know whether the company will close or if there will be a delayed opening. One way to advise employees is to implement a Weather Hotline. This can simply be a specialized phone number or extension that employees call to find out when and if they should report to work. Paying Employees Under federal law, employers are only obligated to pay their hourly (non-exempt) employees for actual hours worked. NOTE: There are certain states (i.e., New York, California, New Jersey, Rhode Island, Massachusetts, Connecticut, Washington, DC, New Hampshire and Oregon) that require non-exempt employees to be paid a certain minimum amount if they report to work as scheduled, and then are sent home, before work actually is performed or started. It’s important to be familiar with your state law. However, many employers go beyond federal and state pay requirements and pay employees for the time between normal start time and a delayed opening or up to a certain number of hours or even for an entire day when it’s storming outside. Usually, there are a few rules that go along with this. For example, if the company gives notice of a delayed opening, but an employee doesn’t report to work at all for the day, that employee will not receive the benefit of pay. Although the employee may be paid from his or her accrued vacation or paid time off balance. In accordance with the federal Fair Labor Standards...
Read MorePlanning for Open Enrollment By Maggie Johnson As we go into the fall, most companies will begin the process for Open Enrollment. Open Enrollment for many employers will be held in November and sometimes into December of 2019 for the 2020 plan year. To ensure your Open Enrollment goes smoothly, here are some suggested tips. Employee’s Share of Premium Most employees share the cost of the premium for health insurance coverage with their employer. For 2020, it is predicted by the Mercer National Survey of Employer-Sponsored Health Plans that the total health benefits costs per employee will increase by 3.9%. According to AON Consultancy’s 2020 Global Medical Trend Rates Report, healthcare benefit cost is expected to rise by 6.5% in the US. However, whether a health insurance plan is self-insured or fully-insured, the company’s claims experience is normally reflected in that company’s healthcare premium rates, and may be less or greater than the aforementioned predicted 2020 healthcare cost increases. Therefore, if your employees are facing a considerable increase in their healthcare premium contribution, you might consider mitigating that increase by taking on more of the premium cost share by your company, or implementing a salary-banded contribution system, so that lower-paid employees pay less than managers and highly-compensated executives. One of the biggest complaints made by employees is that their annual wage increase is not in alignment with the premium contribution cost increase for healthcare coverage, and they fall further behind financially each year. Regardless of your decision, it is always best to communicate to your employees about any upcoming premium increase early, preferably before Open Enrollment begins, and the reasons for the cost increase. Help Your Employees to Make Informed Choices Many employees are inclined to make the same benefit election as they made in the previous year. However, this may not be the best current choice for themselves and their families. It is important to provide them with education about each of your benefit plan offerings, so they can choose the best one for their particular situation. Education may be provided in Open Enrollment in-person meetings with representatives from your insurance carrier and/or your insurance broker, or through online education tools. In your written materials, such...
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