Benefits
As a result of the employment relationship, employees are entitled to certain benefits as a matter of law, such as retirement and disability compensation. In addition, once an employer offers a pension or health insurance, federal law requires the employer to provide the benefits offered, without interference.
Federal and state law do not require employers to pay employees for time away from work, such as vacation, holiday or sick time off. When employers offer paid time off from work, state law typically answers questions of employee entitlement to paid time off benefits. Similarly, certain compensation benefits, such as incentive plans and stock option plans, are primarily creatures of state contract law and depend on what the employer chooses or agrees to offer. Incentive and stock option plans may, however, have serious federal tax consequences.
Statutory Benefits
Statutory benefits, meaning benefits required by law, include:
- retirement and disability benefits, like social security;
- unemployment compensation benefits; and
- workers compensation benefits.
Employers are not required to provide retirement and disability benefits. However, federal law requires private employers, and state law requires public employers, to collect, match and remit a certain percentage an employee's payroll to the federal or state treasury to fund the retirement and disability benefits.
Welfare Benefit Plans- ERISA
Employers may, but do not have to, provide pension, health insurance, disability insurance and severance benefits. Employers who provide benefits under a plan are free to modify or terminate the plan. However, under the Employee Retirement Income Security Act of 1976 (ERISA), employers who provide such plans must provide the designated benefit to the covered participant upon the happening of the specified event. For example, once a covered employee becomes seriously ill, an employer cannot refuse to provide health insurance coverage. Similarly, ERISA prohibits an employer from terminating an employee for the specific purpose of preventing or interfering with the employee's use of the plan. ERISA also imposes fiduciary obligations on certain administrators and sponsors of ERISA plans.
Vacation, Holiday and Paid or Sick Time Off
Employers likewise have no obligation to provide paid time off from work. For those that do, state law answers questions about vacation, holiday or paid or sick time off, such as:
- when and how an employee accrues paid time off; and
- whether an employee is entitled to accrued but unused time off at termination; and
In Ohio, for example, courts do not impose vacation, holiday or paid or sick time obligations on employers. However, if an employer has a policy of providing time off, Ohio courts will hold the employer to it, even if the employer did not include the paid time off policy in an employment agreement.
Compensation Benefits
Employers may also offer employee incentive plans, stock option plans or other forms of non-wage compensation. State contract laws govern most compensation benefits and the employer's plan, or an agreement between the employer and employees, controls the timing, amount and conditions of payment of compensation benefits.
Stock option plans are subject to federal tax laws that discourage stock option awards at strike prices below the underlying stock's fair market value at the time of the stock option award. See Guidance Under § 409A of the Internal Revenue Code.
Relationship between Employee Benefits and Leave Rights
Employee benefits such as disability insurance, vacation or other paid time off, provide an employee with compensation or other valuable benefit when he or she is away from work. A related but different employee right is to restoration to his or her job when he or she is ready to return to work. An employee's restoration rights are found primarily in the Family and Medical Leave Act, the USERRA Military Leave Act and similar state laws.
As a result, an employee's absence from work often implicates two separate sets of law. Specifically, one set of laws will determine what, if any, benefit the employee may receive while he or she is on a leave of absence. The other set of law determines what rights, if any, an employee has upon his or her return to work. Benefit and restoration questions arising out of an employee's absence from work while on leave are thus some of the thorniest and confusing questions faced by employees and employment lawyers.
Articles (69)
Employee Benefits Overview
As a result of the employment relationship, employees are entitled to certain benefits, such as retirement and disability compensation, as a matter of law. In addition, once an employer decides to off...
applies to All States
Severance Package
A severance package describes the pay and benefits an employee receives when involuntarily separated from a company. Severance packages are voluntary in the United States, so employers do not have a l...
applies to All States
Who should have to pay back overpaid Unemployment Benefits in North Carolina?
The majority of contested NC unemployment benefits cases we handle involve the following situation: The Claimant (former employee) files for unemployment benefits. The Employer gives the Division of E...
applies to North Carolina
Overview of the Constructive Discharge Doctrine
A constructive discharge describes an employee's decision to resign because the employer made the terms and conditions of employment so miserable that reasonable people would resign. Under those circu...
applies to All States
Severance Pay can reduce Ohio Unemployment Compensation Benefits
Severance pay in Ohio can reduce or eliminate an employee's unemployment compensation benefits for the weeks that the severance pay is received. If an employer pays severance pay in a lump sum, the Oh...
applies to Ohio
Military Employment Leave: Uniformed Services Employment and Reemployment Rights
Federal USERRA The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) was signed into law on October 13, 1994. USERRA clarifies and strengthens the Veterans' Reemployment Right...
applies to All States
Closing the Severance Pay Negotiation with Non-economic Terms
The amount of severance that an employer is willing to pay an employee, though usually the single most important item addressed in severance negotiations, is only one severance issue. Additional issue...
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Can I still be fired if I already resigned.
Most employers want employees to give them a two week notice before resigning. Sometimes, though, employers accept a two week notice immediately, in effect firing employees two weeks before the employ...
applies to Ohio
Overview of American At-will Employment
American employment law is built on the foundation of at-will employment. Before any meaningful body of employment law existed, employment in America was at-will. Based in state contract law, at-will ...
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The Role of Seniority in Employment Law
The concept of seniority has a high level of importance in employment law. For example, if there is a conflict between a bona fide seniority system and an agreement to settle a discrimination claim, i...
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USERRA Overview
Federal USERRA The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) was signed into law on October 13, 1994. USERRA clarifies and strengthens the Veterans' Reemployment Right...
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Families First Coronavirus Response Act - An analysis of House Bill 6201
On March 19, 2020 the Senate passed the Families First Coronavirus Response Act to address some employment impacts of the coronavirus and COVID-19. It was a much smaller version of the Act that passed...
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Overview of COBRA Health Insurance Continuation Rights
COBRA is a federal law that requires group health plans to continue covering an employee after the employee's employment has ended. COBRA stands for the Consolidated Omnibus Budget Reconciliation Act,...
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Lilly Ledbetter Fair Pay Act
The Lilly Ledbetter Fair Pay Act amends the enforcement provisions of Title VII and the Age Discrimination in Employment Act to permit suits by Plaintiffs who file a charge of discrimination challengi...
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Negotiating Severance Agreements
Parties bargaining to reach a mutually acceptable outcome must, as with any negotiation: Have a shared desire to resolve the dispute; Identify the interests at stake; Invent options for mutual gain; S...
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Guide to Employer FMLA Notices with DOL Approved FMLA Forms
A. Employer Notices The 2008 FMLA regulations require four separate types of Employer notices: “General notice,” which means the poster listing employees’ FMLA rights, plus a new a requirement t...
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American Public Policy Exception to Employment at-will
In states that adopt the public policy exception to employment at will, public policy warrants an exception to the employment-at-will doctrine when an employer discharges or disciplines an employee fo...
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Promissory estoppel exception to at-will employment
In general, under the employment-at-will doctrine, the employment relationship between employer and employee is terminable at the will of either. See At-will Employment . In Mers v. Dispatch Printing ...
applies to Ohio
Family and Care Giver Discrimination, Harassment and Discharge
Family responsibility discrimination is an emerging area of discrimination law. Although no specific law designates a family care giver as a protected class, a number of laws protect people with famil...
applies to Florida
Florida Whistleblower's Act Protects Employees of the Government and Companies that Contract with Florida Governments
The Florida legislature enacted the Florida whistleblower's Act, Fl. Stat. 112.3187 in 1986 to prevent state and local government agencies ("Agencies,") and the companies that contract with Agencies (...
applies to Florida
Rights of an Ohio Employee who is a Minority Shareholder
A special exception to employment at-will doctrine applies to employees who are minority shareholders of close corporations. In their case, majority shareholders cannot terminate their employment with...
applies to Ohio
Overview of Unlawful Employment Discrimination
Unlawful employment discrimination means adverse treatment of employees motivated by the employees' age, sex, race, creed, religion, national origin, disability, veterans status or other protected cla...
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How to Value Claims for Severance Negotiations
This article describes a process for employment lawyers to use to place a value on a severance pay offer. It involves identifying claims, identifying the damages associated with those claims, discount...
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Illinois State Overtime Law
This page is article is devoted to Illinois law. It presumes you have a basic knowledge of the Federal Law. But for more information on the Federal Overtime Law please visit our FLSA page at http://ww...
applies to Illinois
New York Non-competition Law
New York state courts enforce post-employment non-competition agreements under certain circumstances, but their examination of restrictive covenants is rigorous. New York courts adhere to a strict app...
applies to New York
Executive Orders affecting Unions issued by the Obama Administration.
President Barack Obama signed a series of executive orders in his first month in office favorable to organized labor. They include: Notification of employee rights under federal labor laws ; Economy i...
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WARN Act Requires 60 Days Notice for Plant Closings and Mass Layoffs
The Worker Adjustment Retraining and Notification Act ("WARN") requires employers to provide 60 days advance written notice of a "plant closing" and "mass layoffs." This article defines a mass layoff ...
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Preliminary Injunctions in Non-competition Cases
A preliminary injunction is a court order, issued at the beginning of a case, which preserves the relative position of the parties while the case is pending. It usually remains in effect until replace...
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The Role of Contracts in Employment Law
Contracts play a central role in employment law. The most basic employment arrangement, at-will employment, is purely contractual in nature. Floyd v. DuBois Soap Co. (1942), 139 Ohio St. 520, 530-531,...
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Family and Medical Leave Act 2008 Rule Changes.
The Department of Labor issued final changes to its Family and Medical Leave Act (FMLA) rules, which took effect on January 16, 2009. These changes include the new leave related to military service me...
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Tortious Interference Involving Non-Competition Agreements
In most states, a third party cannot interfere with the contractual or prospective business relationships between two other parties, absent a proper purpose. This claim is known as “tortious interfe...
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Injunctions Barring Enforcement of Invalid Non-competes
Employers who enforce non-competition agreements have long sought temporary restraining orders (TROs) and preliminary injunctions to bar employees from violating valid non-competition agreements. Cour...
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Trade Secrets Overview
A trade secret is information that is not known to the public, that its owner takes steps to keep from public knowledge and that has value because it is not known to the public. The owners of trade se...
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How to Find and Select Good Employment Lawyers
Good employment lawyers are like good mechanics. They tell you what you need, suggest the best way to get it, are skilled at their craft and present you with a reasonable bill. Good employment lawyers...
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Ohio Minimum Wage with Treble Damages and Attorneys Fees
On November 7, 2006 Ohio voters passed the Ohio Constitutional Minimum Wage , which amended Ohio’s constitution to require employers to pay a minimum wage of $6.85 per hour. The amount of the minimu...
applies to Ohio
Enforcability of Texas Non-competition Agreements.
To be enforceable under Texas law, a non-compete must be: ancillary to or part of an otherwise enforceable agreement at the time the agreement is made; to the extent it contains limitations as to time...
applies to Texas
Defamation in the Illinois Workplace
Current and former employees are sometimes targets of false statements made in the workplace. Defamation is a tort action which allows the employee who was wronged (plaintiff) to recover for harm to h...
applies to Illinois
Arbitration of Employment Disputes
The federal arbitration act (FAA), 9 U.S.C. § 1, et seq . and Ohio’s arbitration act ORC § 2711.01 et seq. , both direct a court to stay trial of a matter that is the subject of a written arbitrat...
applies to Ohio
Fortune: Annual 100 Best Companies to Work For
Fortune just published its annual 100 Best Companies to Work for. Reading this article is a breath of fresh air in the midst of layoffs and the callous elimination of severance, pension and health ben...
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benefit plan appeals
Enter your article here The Employee Retirement Income Security Act (ERISA) applies to retirement plans and "welfare benefit" plans, e.g., disability and health plans sponsored by employers or unions....
applies to New Jersey
Appealing Denial of COBRA Subsidy
Most people are now aware that if your employment is involuntarily terminated between September 1, 2008 and December 31, 2009, you may be eligible for the 65% federal subsidy for COBRA. But, what happ...
applies to Illinois
What is the ADA?
Enter your article here While the American With Disabilities Act (ADA) has several components, the portion I am going to talk about right now is Title I which pertains to discrimination in employment ...
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2 Ways Employers Sometimes Illegally Discriminate Against Veterans
While individuals who serve in the military often make great sacrifices for their country, many people do not seem to understand or appreciate their service. Oftentimes, veterans struggle to readjust ...
applies to California
How to Get the Best Virginia Workers Compensation Settlement
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applies to Virginia
Dont Let Your Employer Misclassify You As An Independent Contractor
Enter your article here The Federal Government and President Obama have announced that they with the IRS will be cracking down on enforcement of employers that misclassify their employees as 1099 inde...
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8 Main Disability Discrimination Questions
What are the 8 Main Disability Discrimination Questions? California is an at-will employment state. As an at-will employee in California, an individual may be terminated for any reason or no reason at...
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Genetic Discrimination Under GINA
Enter your article here A woman who tested positive for the breast cancer gene brought suit against her employer MXnergy for violation of the Genetic Information Nondiscrimination Act of 2008 (GINA) w...
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Is an Intern Supposed to Get Paid?
Enter your article here Many times a student intern is working for an employer without getting paid for the hours worked. In addition, when the intern is not paid as an employee, they are also not ent...
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5 Ways Employers Can Discriminate Against Workers
5 Ways Employers Can Discriminate Against Workers Employers can, unfortunately, find different ways to discriminate against their employees. Particular classes of people and different characteristics ...
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What Are My Employment Rights if I am or Become Pregnant?
As society continues to advance, Americans are living longer, maintaining their car eers, and deciding to have children a little later in life. Most adults today want it all and employment laws, espec...
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What is sexual orientation harassment or discrimination?
An Employment Lawyer is an attorney who may represent an employee against their employer in a situation where he or she was treated poorly at work based on their sexual orientation. But what is sexual...
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New York Sexual Harassment Protections
What is workplace sexual harassment? Sexual harassment in the workplace covers unwelcome physical contact, demanding sexual favors for employment benefits, and hostile work environments. Hiring manage...
applies to New York
3 Ways You May be a Victim of the Retaliation and Constrictive Discharge Hybrid
In a perfect world, employees could go to work knowing they would not be mistreated by their employer or superiors. However, we don’t live in a perfect world and employees are subjected to unspe...
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10 Signs You might be a Victim of Sexual Harassment at Work
1. You feel uncomfortable Sexual harassment , to a degree, is measured subjectively and takes the expression “bad vibes” to a whole new level. Although the workplace is to remain professio...
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3 Types of Issues Employment Lawyers May Handle
From suing a dry cleaning service for losing a pair of pants to filing for the return of a kidney, people today will sue for the craziest things. In order to sue for all of these wacky claims, there n...
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Can my employer ask about my race?
Can an employer ask an employee or an applicant about their race? The short answer is technically no. In some states, it is legal for an employer to inquire about an employee or an applicant’s r...
applies to California
What is sex or gender discrimination?
In general, there are certain types of people or people with certain characteristics who are protected by the law when it comes to discrimination in the workplace. There are state and federal laws in ...
applies to All States
7 Things You Didn’t Know About Medical Leave Of Absence From Work
Currently, a majority of employees in California struggle with work-life balance. An individual may be striving for that promotion at work, finding time to go to their kid’s soccer game, praying...
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4 Things an Employee Should Know About Filing a Disability Discrimination Claim
“You’re too slow for this job”, “people like you are lazy”, “you’re a freak”. Americans with disabilities endure all kinds of hateful treatment, but wha...
applies to California
3 Ways You May be a Victim of the Retaliation and Constrictive Discharge Hybrid
In a perfect world, employees could go to work knowing they would not be mistreated by their employer or superiors. However, we don’t live in a perfect world and employees are subjected to unspe...
applies to All States
9 Things Job Hunters With a Disability Should Know
1. Where do my rights come from? When it comes to disability discrimination , there are a few different sources of rights an employee may use to defend himself or herself from mistreatment. Depending ...
applies to California
5 Employees who are Targets of Discrimination and/or Wrongful Termination
5 Employees who are Targets of Discrimination and/or Wrongful Termination Employees in California are considered at-will employees . This means if you are employed in California, unlike other States, ...
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10 Signs You might be a Victim of Sexual Harassment at Work
1. You feel uncomfortable Sexual harassment , to a degree, is measured subjectively and takes the expression “bad vibes” to a whole new level. Although the workplace is to remain professio...
applies to All States
5 Important Questions Asked about Disability Discrimination and Wrongful Termination
Some employees enjoy being challenged in their work while others find pleasure in doing work that doesn’t feel like work at all. But what about employees who feel like they are being set up for ...
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3 Ways Sexual Harassment Claims May Lead to Other Claims
A Work Attorney has many types of cases that end up on their desk, but the most common is sexual harassment. Sexual harassment within the workplace is against the law, yet remains a common issue. Vict...
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5 Ways an Employer May Be Liable For Disability Discrimination
Employment laws in America encourage employees with disabilities and their employers to work in harmony in the workplace. Whether an individual with a disability is applying for a job or a current emp...
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4 Ways You May Become a Victim of Wrongful Termination
4 Ways You May Become a Victim of Wrongful Termination Wrongful termination is where an employer fires an employee for an illegal reason. Some illegal reasons may be if an employer fires an employee b...
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4 Situations Where an Employer May Retaliate
4 Situations Where an Employer May Retaliate Retaliation is a type of practice that is deemed unlawful under employment laws. An employee may experience retaliation when he or she makes a complaint ab...
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Applicants and Temporary Employees are afforded the Same Rights as Regular Employees Under FEHA
A decrease in unemployment rates leaves job-applicants vulnerable to sexual harassment . In June 2017, California’s Employment Development Department reported that the unemployment rate dropped ...
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