www prudential com gi employer forms

You may access hardcopy MHS forms though this link: www.standard.com/eforms/16119_645746.pdf. Upon completion, print, sign and mail the form. Children receive 50% GI. under the Forms & Plan Documents tile. employer HSA contributions will be forfeited and will not be. Loans at subsidized rate (0% to 15% annual rate) for certain employers to filing deadline for Economic substance return Form (1), for all in-scope.

Www prudential com gi employer forms -

Forms/Downloads

Forms

Registration form

This form should be completed by the employer and submitted to the Pensions Commissioner.

Where an employer provides multiple pensions schemes to its employees, one form must be completed per pension scheme. 

Opt-Out form

Each employee that decides not to join and participate in the pension scheme offered by his/her employer, must complete this form.

This form, once completed by the employee, should be submitted to the employer (not the Pensions Commissioner directly).  Once this form is submitted the employer will forward this to the Pensions Commissioner.  It is understood, by completing this form, that the employee will not be a member of the pensions scheme until they notify their employer otherwise.

Downloads

Employee Leaflet 

This leaflet provides an overview of what an employee can expect from their employer as a result of the Act coming into force.  

It is expected that all employers will provide this leaflet to its employees and encourage employees to read the information available to them via the leaflet and via these website pages.

Legislation 

Private Sector Pensions Act 2019

Private Sector Pensions Fees Regulations 2021

Источник: https://www.fsc.gi/Forms/Downloads

Short-term disability insurance can be valuable to fill income gaps and cover expenses if you can’t temporarily earn employment income. 

The unexpected often happens in life, including not being able to work after an accident-related injury or an unforeseen illness. That’s where short-term disability insurance comes in.

What is short-term disability insurance?

Short-term disability insurance pays a percentage of your salary if you become temporarily disabled, meaning that you can’t work for a short period due to sickness or injury (excluding on-the-job injuries, which workers’ compensation insurance covers). 

A typical short-term disability insurance policy provides you with 60% to 70% of your pre-disability base salary.

The National Association of Insurance Commissioners estimates that these benefits generally last between three and six months. Most short-term disability insurance policies have a “cap,” meaning you receive a maximum benefit amount per month. 

Short-term disability insurance policies also have a limit on the amount of time you can receive benefits — up to two years, according to the Insurance Information Institute.

Short-term disability insurance is often part of an employer’s benefits package. Individual short-term coverage is also available, but it’s not nearly as common as group-based coverage. 

However, some states have their own short-term disability benefits programs, including California, Hawaii, New Jersey, New York and Rhode Island.

Key Takeaways

  • Short-term disability insurance helps you get a percentage of your salary if you become temporarily disabled.
  • You can stay afloat of your bills with a short-term disability policy that provides you 60-70% of what you were making before you became disabled.
  • To qualify for short-term disability insurance, you should have purchased the policy before you’re diagnosed with a condition that makes you eligible for coverage.
  • Short-term disability benefits are taxable, and employers receive a tax break when they pay in lieu of their employees.

What qualifies for short-term disability?

A short-term disability can prevent you from working for several weeks or months. This disability must be diagnosed by a healthcare provider and can include conditions, such as:

  • Pregnancy
  • Pregnancy complications
  • Digestive disorders
  • Back and joint disorders
  • A non-work-related injury
  • Recovery after surgery 
  • A short-term illness

Some policies’ coverage may exclude certain conditions, such as mental illness and drug addiction. Intentionally self-inflicted injuries, injuries that occurred in the act of committing a crime and driving under the influence also generally disqualify you from coverage.

Ty Stewart, CEO and president of Simple Life Insure, an independent brokerage firm based in San Diego, says some chronic conditions also may prevent you from qualifying for a policy.

“Preexisting conditions that force you to stop working, such as certain kinds of cancer, arthritis, and multiple sclerosis, are prime examples that may make you ineligible for coverage, or at least limit your benefits,” he says.

How does short-term disability insurance work?

Colleen Corrigan, a health & life insurance agent with Wallace & Turner Insurance, an independent insurance agency based in Springfield, OH, says disability insurance is a key part of a family’s financial planning.

“The purpose of disability coverage is to financially protect yourself and family when illness or injury occurs. Short-term disability coverage is a great idea for a young, growing family where the concern is replacing income in the event of maternity leave, illness or injury not related to a worksite accident.”

Generally, to be eligible for short-term disability insurance, you must have a policy before you’re diagnosed with a condition that would actually qualify you for coverage. For example, you typically can’t get short-term disability benefits to cover maternity leave if you’re already pregnant.

In most states, you must have worked for at least 30 days out of the last six months before you’re eligible for benefits. You also must provide medical records to confirm your condition. 

Corrigan adds that short-term policies also come with exclusion periods. An exclusion period is the waiting period before you can begin to receive benefits after becoming eligible for a short-term disability claim.

“Typically, a benefit begins after 0, 7 or 14 days of being declared unable to work. Make sure your family is prepared to cover household expenses for those exclusion periods,” she says.

There’s also a cap on the amount of benefits you can receive and a time limit on benefits. These vary by state. 

Short-term disability coverage not through an employer

While most people can get short-term disability through their employer, self-employed individuals or part-time workers will have to shop the market for an individual plan.

If you’re in this situation, you can work with an independent insurance agent to find coverage or use an online insurance broker to compare plans and prices. Some industry associations may offer group plans, which can be much more affordable than getting individual coverage. 

For example, the Freelancers Union, a non-profit organization that serves independent contractors in various industries, gives its 490,000 members the opportunity to apply for disability coverage through Guardian Life.

Stewart says because short-term policies often end up being less effective than long-term disability policies that can last for years, it’s often best to get employer-based coverage, if possible.

“Given that cost breakdown across the years, short-term policies tend to work best when they’re part of your employer’s offered benefits. Group short-term disability’s premiums will be somewhat cheaper compared to what you’d pay if you found one individually, though you do sacrifice a little choice and policy individualization,” he says.

Does short-term disability insurance cover pregnancies? 

Short-term disability insurance typically covers you for pregnancy and childbirth if you buy the policy before you’re pregnant. A policy likely won’t cover a pregnancy if you try to buy it while pregnant. 

A short-term disability policy will often pay you for six weeks after a normal delivery and eight weeks for a C-section or twins and triplets. You may be able to get a longer benefit period for a pregnancy with complications. You could also start collecting while still pregnant depending on the policy. 

Read the policy’s fine print and ask the company if you have any questions about the benefit period. 

Is short-term disability taxable?

Whether short-term disability is taxable depends on who pays the premiums. Corrigan says it also depends on whether someone pays premiums on a pre-tax or post-tax basis.

“Short-term disability benefits are taxable if your employer pays the premiums. Employers receive a tax break when they pay on behalf of employees. It is a deductible business expense,” she says.

If an employee pays, short-term disability benefits may or may not be taxable depending on whether the employee chooses to make either pre- or post-tax payroll elections, Corrigan says. 

If the elections are pre-tax, the employee will have to pay taxes on these benefits. However, if they pay premiums with after-tax dollars, employees don’t have to pay taxes on the disability income they receive.

How to file a short-term disability claim

You can generally submit a claim as soon as seven days after you’ve stopped working. To file for short-term disability benefits, you’ll need to access your insurer’s claim form. You can obtain this form online from your insurer’s website or through your HR department if you have employer-based coverage.

Complete the entire form and have your employer fill out the relevant sections or provide a statement, if necessary. You’ll need to provide information such as:

  • The date you stopped working
  • Details on your medical condition or injury
  • When it occurred or was diagnosed 
  • Personal and contact information

Your doctor or healthcare provider also will need to sign a form confirming your condition, and you’ll need to sign a form to authorize the release of your medical records.

Once you’ve compiled all this information, you can submit the form by mail, online, or in some cases, by phone. 

After receiving your claim form, some insurers may request additional information to make an eligibility determination. Most insurers try to quickly make claims decisions — typically within one week of when they receive all your relevant documents. However, not having all your paperwork in order can delay the process, so it’s important that you contact your healthcare provider right away to complete and submit the physician’s statement insurers require and provide any other documentation your insurer asks for promptly.

How to apply for short-term disability insurance

Several insurers offer short-term disability coverage, including:

Corrigan says when shopping for a policy, it’s essential to read the fine print and consider your financial situation carefully.

“It is imperative an individual or family review any exclusions or preexisting condition clauses of a policy when comparing policy options,” she says. “Remember that prices are related to the amount of disability income. When shopping, look at your current expenses and project future expenses to make sure you apply for the appropriate dollar amount.”

While short-term disability can provide much-needed income over several weeks or months, Stewart says some people may be better served by long-term coverage.

“You must consider the importance of you as a breadwinner. If your income is the sole source of money in the household, then getting comprehensive coverage that lasts longer is in your best interests,” he says. “It just means peace of mind that you’ll have income across the years, not just a few months.”

Related Articles

Источник: https://www.insure.com/disability-insurance/short-term-disability.html

United States labor law

US laws governing employer–employee relationships

United States labor law sets the rights and duties for employees, labor unions, and employers in the United States. Labor law's basic aim is to remedy the "inequality of bargaining power" between employees and employers, especially employers "organized in the corporate or other forms of ownership association".[3] Over the 20th century, federal law created minimum social and economic rights, and encouraged state laws to go beyond the minimum to favor employees.[4] The Fair Labor Standards Act of 1938 requires a federal minimum wage, currently $7.25 but higher in 29 states and D.C., and discourages working weeks over 40 hours through time-and-a-half overtime pay. There is no federal law requiring paid holidays or paid family leave, and limited state laws. The Family and Medical Leave Act of 1993 creates a limited right to 12 weeks of unpaid leave in larger employers. There is no automatic right to an occupational pension beyond federally guaranteed social security,[5] but the Employee Retirement Income Security Act of 1974 requires standards of prudent management and good governance if employers agree to provide pensions, health plans or other benefits. The Occupational Safety and Health Act of 1970 requires employees have a safe system of work.

A contract of employment can always create better terms than statutory minimum rights. But to increase their bargaining power to get better terms, employees organize labor unions for collective bargaining. The Clayton Act of 1914 guarantees all people the right to organize,[6] and the National Labor Relations Act of 1935 creates rights for most employees to organize without detriment through unfair labor practices. Under the Labor Management Reporting and Disclosure Act of 1959, labor union governance follows democratic principles. If a majority of employees in a workplace support a union, employing entities have a duty to bargain in good faith. Unions can take collective action to defend their interests, including withdrawing their labor on strike. There are not yet general rights to directly participate in enterprise governance, but many employees and unions have experimented with securing influence through pension funds,[7] and representation on corporate boards.[8]

Since the Civil Rights Act of 1964, all employing entities and labor unions have a duty to treat employees equally, without discrimination based on "race, color, religion, sex, or national origin."[9] There are separate rules for sex discrimination in pay under the Equal Pay Act of 1963. Additional groups with "protected status" were added by the Age Discrimination in Employment Act of 1967 and the Americans with Disabilities Act of 1990. There is no federal law banning all sexual orientation or identity discrimination, but 22 states had passed laws by 2016. These equality laws generally prevent discrimination in hiring, terms of employment, and make discharge because of a protected characteristic unlawful. There is no federal law against unjust discharge, and most states also have no law with full protection against wrongful termination of employment.[10]Collective agreements made by labor unions and some individual contracts require people are only discharged for a "just cause". The Worker Adjustment and Retraining Notification Act of 1988 requires employing entities give 60 days notice if more than 50 or one third of the workforce may lose their jobs. Federal law has aimed to reach full employment through monetary policy and spending on infrastructure. Trade policy has attempted to put labor rights in international agreements, to ensure open markets in a global economy do not undermine fair and full employment.

History[edit]

Main articles: History of labor law in the United States and Labor history of the United States

Modern US labor law mostly comes from statutes passed between 1935 and 1974, and changing interpretations of the US Supreme Court.[11] However, laws regulated the rights of people at work and employers from colonial times on. Before the Declaration of Independence in 1776, the common law was either uncertain or hostile to labor rights.[12] Unions were classed as conspiracies, and potentially criminal.[13] It tolerated slavery and indentured servitude. From the Pequot War in Connecticut from 1636 onwards, Native Americanswere enslaved by European settlers. More than half of the European immigrants arrived as prisoners, or in indentured servitude,[14] where they were not free to leave their employers until a debt bond had been repaid. Until its abolition, the Atlantic slave trade brought millions of Africans to do forced labor in the Americas.

However, in 1772, the EnglishCourt of King's Bench held in Somerset v Stewart that slavery was to be presumed unlawful at common law.[15]Charles Stewart from Boston, Massachusetts had bought James Somerset as a slave and taken him to England. With the help of abolitionists, Somerset escaped and sued for a writ of habeas corpus (that "holding his body" had been unlawful). Lord Mansfield, after declaring he should "let justice be done whatever be the consequence", held that slavery was "so odious" that nobody could take "a slave by force to be sold" for any "reason whatever". This was a major grievance of southern slave owning states, leading up to the American Revolution in 1776.[16] The 1790 United States Census recorded 694,280 slaves (17.8 per cent) of a total 3,893,635 population. After independence, the British Empire halted the Atlantic slave trade in 1807,[17] and abolished slavery in its own territories, by paying off slave owners in 1833.[18] In the US, northern states progressively abolished slavery. However, southern states did not. In Dred Scott v Sandford the Supreme Court held the federal government could not regulate slavery, and also that people who were slaves had no legal rights in court.[19] The American Civil War was the result. President Lincoln's Emancipation Proclamation in 1863 made abolition of slavery a war aim, and the Thirteenth Amendment of 1865 enshrined the abolition of most forms of slavery in the Constitution. Former slave owners were further prevented from holding people in involuntary servitude for debt by the Peonage Act of 1867.[20] In 1868, the Fourteenth Amendment ensured equal access to justice, and the Fifteenth Amendment required that everyone would have the right to vote. The Civil Rights Act of 1875 was also meant to ensure equality in access to housing and transport, but in the Civil Rights Cases, the Supreme Court found it was "unconstitutional", ensuring that racial segregation would continue. In dissent, Harlan J said the majority was leaving people "practically at the mercy of corporations".[21] Even if people were formally free, they remained factually dependent on property owners for work, income and basic services.

Labor is prior to and independent of capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration ... The prudent, penniless beginner in the world labors for wages awhile, saves a surplus with which to buy tools or land for himself, then labors on his own account another while, and at length hires another new beginner to help him. This is the just and generous and prosperous system which opens the way to all, gives hope to all, and consequent energy and progress and improvement of condition to all. No men living are more worthy to be trusted than those who toil up from poverty; none less inclined to take or touch aught which they have not honestly earned. Let them beware of surrendering a political power which they already possess, and which if surrendered will surely be used to close the door of advancement against such as they and to fix new disabilities and burdens upon them till all of liberty shall be lost.

—Abraham Lincoln, First Annual Message (1861)

Like slavery, common law repression of labor unions was slow to be undone.[22] In 1806, Commonwealth v Pullis held that a Philadelphia shoemakers union striking for higher wages was an illegal "conspiracy",[23] even though corporations—combinations of employers—were lawful. Unions still formed and acted. The first federation of unions, the National Trades Union was established in 1834 to achieve a 10 hour working day, but it did not survive the soaring unemployment from the financial Panic of 1837. In 1842, Commonwealth v Hunt, held that Pullis was wrong, after the Boston Journeymen Bootmakers' Society struck for higher wages.[24] The first instance judge said unions would "render property insecure, and make it the spoil of the multitude, would annihilate property, and involve society in a common ruin". But in the Massachusetts Supreme Judicial Court, Shaw CJ held people "are free to work for whom they please, or not to work, if they so prefer" and could "agree together to exercise their own acknowledged rights, in such a manner as best to subserve their own interests." This stopped criminal cases, although civil cases persisted.[25] In 1869 an organisation called the Knights of Labor was founded by Philadelphia artisans, joined by miners 1874, and urban tradesmen from 1879. It aimed for racial and gender equality, political education and cooperative enterprise,[26] yet it supported the Alien Contract Labor Law of 1885 which suppressed workers migrating to the US under a contract of employment.

Industrial conflicts on railroads and telegraphs from 1883 led to the foundation of the American Federation of Labor in 1886, with the simple aim of improving workers wages, housing and job security "here and now".[27] It also aimed to be the sole federation, to create a strong, unified labor movement. Business reacted with litigation. The Sherman Antitrust Act of 1890, which was intended to sanction business cartels acting in restraint of trade,[28] was applied to labor unions. In 1895, the US Supreme Court in In re Debs affirmed an injunction, based on the Sherman Act, against the striking workers of the Pullman Company. The strike leader Eugene Debs was put in prison.[29] In notable dissent among the judiciary,[30]Holmes J argued in Vegelahn v Guntner that any union taking collective action in good faith was lawful: even if strikes caused economic loss, this was equally legitimate as economic loss from corporations competing with one another.[31]Holmes J was elevated to the US Supreme Court, but was again in a minority on labor rights. In 1905, Lochner v New York held that New York limiting bakers' working day to 60 hours a week violated employers' freedom of contract. The Supreme Court majority supposedly unearthed this "right" in the Fourteenth Amendment, that no State should "deprive any person of life, liberty, or property, without due process of law."[32] With Harlan J, Holmes J dissented, arguing that the "constitution is not intended to embody a particular economic theory" but is "made for people of fundamentally differing views". On questions of social and economic policy, courts should never declare legislation "unconstitutional". The Supreme Court, however, accelerated its attack on labor in Loewe v. Lawlor, holding that triple damages were payable by a striking union to its employers under the Sherman Act of 1890.[33] This line of cases was finally quashed by the Clayton Act of 1914 §6. This removed labor from antitrust law, affirming that the "labor of a human being is not a commodity or article of commerce" and nothing "in the antitrust laws" would forbid the operation of labor organizations "for the purposes of mutual help".[34]

Throughout the early 20th century, states enacted labor rights to advance social and economic progress. But despite the Clayton Act, and abuses of employers documented by the Commission on Industrial Relations from 1915, the Supreme Court struck labor rights down as unconstitutional, leaving management powers virtually unaccountable.[35] In this Lochner era, the Courts held that employers could force workers to not belong to labor unions,[36] that a minimum wage for women and children was void,[37] that states could not ban employment agencies charging fees for work,[38] that workers could not strike in solidarity with colleagues of other firms,[39] and even that the federal government could not ban child labor.[40] It also imprisoned socialist activists, who opposed the fighting in World War I, meaning that Eugene Debs ran as the Socialist Party's candidate for President in 1920 from prison.[41] Critically, the courts held state and federal attempts to create social security to be unconstitutional.[42] Because they were unable to save in safe public pensions, millions of people bought shares in corporations, causing massive growth in the stock market.[43] Because the Supreme Court precluded regulation for good information on what people were buying, corporate promoters tricked people into paying more than stocks were really worth. The Wall Street Crash of 1929 wiped out millions of people's savings. Business lost investment and fired millions of workers. Unemployed people had less to spend with businesses. Business fired more people. There was a downward spiral into the Great Depression.

This led to the election of Franklin D. Roosevelt for president in 1932, who promised a "New Deal". Government committed to create full employment and a system of social and economic rights enshrined in federal law.[44] But despite the Democratic Party's overwhelming electoral victory, the Supreme Court continued to strike down legislation, particularly the National Industrial Recovery Act of 1933, which regulated enterprise in an attempt to ensure fair wages and prevent unfair competition.[45] Finally, after Roosevelt's second overwhelming victory in 1936, and Roosevelt's threat to create more judicial positions if his laws were not upheld, one Supreme Court judge switched positions. In West Coast Hotel Co v Parrish the Supreme Court found that minimum wage legislation was constitutional,[46] letting the New Deal go on. In labor law, the National Labor Relations Act of 1935 guaranteed every employee the right to unionize, collectively bargain for fair wages, and take collective action, including in solidarity with employees of other firms. The Fair Labor Standards Act of 1938 created the right to a minimum wage, and time-and-a-half overtime pay if employers asked people to work over 40 hours a week. The Social Security Act of 1935 gave everyone the right to a basic pension and to receive insurance if they were unemployed, while the Securities Act of 1933 and the Securities Exchange Act of 1934 ensured buyers of securities on the stock market had good information. The Davis–Bacon Act of 1931 and Walsh–Healey Public Contracts Act of 1936 required that in federal government contracts, all employers would pay their workers fair wages, beyond the minimum, at prevailing local rates.[47] To reach full employment and out of depression, the Emergency Relief Appropriation Act of 1935 enabled the federal government to spend huge sums of money on building and creating jobs. This accelerated as World War II began. In 1944, his health waning, Roosevelt urged Congress to work towards a "Second Bill of Rights" through legislative action, because "unless there is security here at home there cannot be lasting peace in the world" and "we shall have yielded to the spirit of Fascism here at home."[48]

Although the New Deal had created a minimum safety net of labor rights, and aimed to enable fair pay through collective bargaining, a Republican dominated Congress revolted when Roosevelt died. Against the veto of President Truman, the Taft-Hartley Act of 1947 limited the right of labor unions to take solidarity action, and enabled states to ban unions requiring all people in a workplace becoming union members. A series of Supreme Court decisions, held the National Labor Relations Act of 1935 not only created minimum standards, but stopped or "preempted" states enabling better union rights, even though there was no such provision in the statute.[49] Labor unions became extensively regulated by the Labor Management Reporting and Disclosure Act of 1959. Post-war prosperity had raised people's living standards, but most workers who had no union, or job security rights remained vulnerable to unemployment. As well as the crisis triggered by Brown v Board of Education,[50] and the need to dismantle segregation, job losses in agriculture, particularly among African Americans was a major reason for the civil rights movement, culminating in the March on Washington for Jobs and Freedom led by Martin Luther King Jr. Although Roosevelt's Executive Order 8802 of 1941 had prohibited racial discrimination in the national defense industry, people still suffered discrimination because of their skin color across other workplaces. Also, despite the increasing numbers of women in work, sex discrimination was endemic. The government of John F. Kennedy introduced the Equal Pay Act of 1963, requiring equal pay for women and men. Lyndon B. Johnson introduced the Civil Rights Act of 1964, finally prohibiting discrimination against people for "race, color, religion, sex, or national origin." Slowly, a new generation of equal rights laws spread. At federal level, this included the Age Discrimination in Employment Act of 1967, the Pregnancy Discrimination Act of 1978, and the Americans with Disabilities Act of 1990, now overseen by the Equal Employment Opportunity Commission.

Although people, in limited fields, could claim to be equally treated, the mechanisms for fair pay and treatment were dismantled after the 1970s. The last major labor law statute, the Employee Retirement Income Security Act of 1974 created rights to well regulated occupational pensions, although only where an employer had already promised to provide one: this usually depended on collective bargaining by unions. But in 1976, the Supreme Court in Buckley v Valeo held anyone could spend unlimited amounts of money on political campaigns, as a part of the First Amendment right to "freedom of speech".[citation needed] After the Republican President Reagan took office in 1981, he dismissed all air traffic control staff who went on strike, and replaced the National Labor Relations Board members with pro-management men. Dominated by Republican appointees, the Supreme Court suppressed labor rights, removing rights of professors, religious school teachers, or illegal immigrants to organize in a union,[52] allowing employees to be searched at work,[53] and eliminating employee rights to sue for medical malpractice in their own health care.[54] Only limited statutory changes were made. The Immigration Reform and Control Act of 1986 criminalized large numbers of migrants. The Worker Adjustment and Retraining Notification Act of 1988 guaranteed workers some notice before a mass termination of their jobs. The Family and Medical Leave Act of 1993 guaranteed a right to 12 weeks leave to take care for children after birth, all unpaid. The Small Business Job Protection Act of 1996 cut the minimum wage, by enabling employers to take the tips of their staff to subsidize the minimum wage. A series of proposals by Democrat and independent politicians to advance labor rights were not enacted,[55] and the United States began to fall behind most other developed countries in labor rights,[56]

Contract and rights at work[edit]

See also: UK labour law, Canadian labour law, Australian labour law, European labour law, German labour law, French labour law, Indian labour law, and South African labour law

Contracts between employees and employers (mostly corporations) usually begin an employment relationship, but are often not enough for a decent livelihood. Because individuals lack bargaining power, especially against wealthy corporations, labor law creates legal rights that override arbitrary market outcomes. Historically, the law faithfully enforced property rights and freedom of contract on any terms,[58] whether or not this was inefficient, exploitative and unjust. In the early 20th century, as more people favored the introduction of democratically determined economic and social rights over rights of property and contract, state and federal governments introduced law reform. First, the Fair Labor Standards Act of 1938 created a minimum wage (now $7.25 at federal level, higher in 28 states) and overtime pay of one and a half times. Second, the Family and Medical Leave Act of 1993 creates very limited rights to take unpaid leave. In practice, good employment contracts improve on these minimums. Third, while there is no right to an occupational pension or other benefits, the Employee Retirement Income Security Act of 1974 ensures employers guarantee those benefits if they are promised. Fourth, the Occupational Safety and Health Act 1970 demands a safe system of work, backed by professional inspectors. Individual states are often empowered to go beyond the federal minimum, and function as laboratories of democracy in social and economic rights, where they have not been constrained by the US Supreme Court.

Scope of protection[edit]

Workplace protection cases

United States v Silk, 331 US 704 (1947)

NLRB v Hearst Publications, Inc, 322 US 111 (1944)

Golden State Bottling Co Inc v NLRB, 414 US 168 (1973)

South Prairie Co v Local No 627 IUOE, 425 US 800 (1976)

NLRB v Yeshiva University, 444 US 672 (1980)

Lemmerman v AT Williams Oil Co, 350 SE 2d 83 (1986)

Community for Creative Non-Violence v Reid, 490 US 730 (1989)

Nationwide Mut. Ins. Co. v Darden, 503 US 318 (1992)

Castillo v Case Farms of Ohio, 96 F Supp. 2d 578 (1999)

Clackamas Gastroenterology Ass v Wells, 538 US 440 (2003)

Christopher v SmithKline Beecham Corp, 567 US __ (2012)

See US labor law and inequality of bargaining power

See also: Worker, Employee, and Inequality of bargaining power

Common law, state and federal statutes usually confer labor rights on "employees", but not people who are autonomous and have sufficient bargaining power to be "independent contractors". In 1994, the Dunlop Commission on the Future of Worker-Management Relations: Final Report recommended a unified definition of an employee under all federal labor laws, to reduce litigation, but this was not implemented. As it stands, Supreme Court cases have stated various general principles, which will apply according to the context and purpose of the statute in question. In NLRB v Hearst Publications, Inc,[59] newsboys who sold newspapers in Los Angeles claimed that they were "employees", so that they had a right to collectively bargain under the National Labor Relations Act of 1935. The newspaper corporations argued the newsboys were "independent contractors", and they were under no duty to bargain in good faith. The Supreme Court held the newsboys were employees, and common law tests of employment, particularly the summary in the Restatement of the Law of Agency, Second §220, were no longer appropriate. They were not "independent contractors" because of the degree of control employers had. But the National Labor Relations Board could decide itself who was covered if it had "a reasonable basis in law." Congress reacted, first, by explicitly amending the NLRA §2(1) so that independent contractors were exempt from the law while, second, disapproving that the common law was irrelevant. At the same time, the Supreme Court decided United States v Silk,[60] holding that "economic reality" must be taken into account when deciding who is an employee under the Social Security Act of 1935. This meant a group of coal loaders were employees, having regard to their economic position, including their lack of bargaining power, the degree of discretion and control, and the risk they assumed compared to the coal businesses they worked for. By contrast, the Supreme Court found truckers who owned their own trucks, and provided services to a carrier company, were independent contractors.[61] Thus, it is now accepted that multiple factors of traditional common law tests may not be replaced if a statute gives no further definition of "employee" (as is usual, e.g., the Fair Labor Standards Act of 1938, Employee Retirement Income Security Act of 1974, Family and Medical Leave Act of 1993). Alongside the purpose of labor legislation to mitigate inequality of bargaining power and redress the economic reality of a worker's position, the multiple factors found in the Restatement of Agency must be considered, though none is necessarily decisive.[62]

Common law agency tests of who is an "employee" take account of an employer's control, if the employee is in a distinct business, degree of direction, skill, who supplies tools, length of employment, method of payment, the regular business of the employer, what the parties believe, and whether the employer has a business.[64] Some statutes also make specific exclusions that reflect the common law, such as for independent contractors, and others make additional exceptions. In particular, the National Labor Relations Act of 1935 §2(11) exempts supervisors with "authority, in the interest of the employer", to exercise discretion over other employees' jobs and terms. This was originally a narrow exception. Controversially, in NLRB v Yeshiva University,[65] a 5 to 4 majority of the Supreme Court held that full time professors in a university were excluded from collective bargaining rights, on the theory that they exercised "managerial" discretion in academic matters. The dissenting judges pointed out that management was actually in the hands of university administration, not professors. In NLRB v Kentucky River Community Care Inc,[66] the Supreme Court held, again 5 to 4, that six registered nurses who exercised supervisory status over others fell into the "professional" exemption. Stevens J, for the dissent, argued that if "the 'supervisor' is construed too broadly", without regard to the Act's purpose, protection "is effectively nullified".[67] Similarly, under the Fair Labor Standards Act of 1938, in Christopher v SmithKline Beecham Corp,[68] the Supreme Court held 5 to 4 that a traveling medical salesman for GSK of four years was an "outside salesman", and so could not claim overtime. People working unlawfully are often regarded as covered, so as not to encourage employers to exploit vulnerable employees. For instance in Lemmerman v AT Williams Oil Co,[69] under the North Carolina Workers' Compensation Act an eight-year-old boy was protected as an employee, even though children working under the age of 8 was unlawful. However, in Hoffman Plastic Compounds v NLRB,[70] the Supreme Court held 5 to 4 that an undocumented worker could not claim back pay, after being discharged for organizing in a union. The gradual withdrawal of more and more people from the scope of labor law, by a slim majority of the Supreme Court since 1976, means that the US falls below international law standards, and standards in other democratic countries, on core labor rights, including freedom of association.[71]

Common law tests were often important for determining who was, not just an employee, but the relevant employers who had "vicarious liability". Potentially there can be multiple, joint-employers could who share responsibility, although responsibility in tort law can exist regardless of an employment relationship. In Ruiz v Shell Oil Co,[73] the Fifth Circuit held that it was relevant which employer had more control, whose work was being performed, whether there were agreements in place, who provided tools, had a right to discharge the employee, or had the obligation to pay.[74] In Local 217, Hotel & Restaurant Employees Union v MHM Inc[75] the question arose under the Worker Adjustment and Retraining Notification Act of 1988 whether a subsidiary or parent corporation was responsible to notify employees that the hotel would close. The Second Circuit held the subsidiary was the employer, although the trial court had found the parent responsible while noting the subsidiary would be the employer under the NLRA. Under the Fair Labor Standards Act of 1938, 29 USC §203(r), any "enterprise" that is under common control will count as the employing entity. Other statutes do not explicitly adopt this approach, although the NLRB has found an enterprise to be an employer if it has "substantially identical management, business purpose, operation, equipment, customers and supervision."[76] In South Prairie Construction Co v Local No 627,[77] the Supreme Court found that the DC Circuit had legitimately identified two corporations as a single employer given that they had a "very substantial qualitative degree of centralized control of labor",[78] but that further determination of the relevant bargaining unit should have been remitted to the NLRB. When employees are hired through an agency, it is likely that the end-employer will be considered responsible for statutory rights in most cases, although the agency may be regarded as a joint employer.[79]

Contract of employment[edit]

Employment contract cases

JI Case Co v National Labor Relations Board, 321 US 322 (1944)

Torosyan v Boehringer Ingelheim Pharma, Inc, 662 A2d 89 (1995)

Demasse v ITT Corp, 984 P2d 1138 (1999)

Asmus v Pacific Bell, 999 P2d 71 (2000)

Stark v Circle K Corp, 751 P2d 162 (1988)

Foley v Interactive Data Corp, 765 P2d 373 (1988)

Alexander v Gardner-Denver Co, 415 US 36 (1974)

14 Penn Plaza LLC v Pyett, 556 US 247 (2009)

See US labor law and inequality of bargaining power

See also: United States contract law

When people start work, there will almost always be a contract of employment that governs the relationship of employee and the employing entity (usually a corporation, but occasionally a human being).[80] A "contract" is an agreement enforceable in law. Very often it can be written down, or signed, but an oral agreement is also a fully enforceable contract. Based on the reasoning that the party with less bargaining power benefits from having the range of acceptable contracts limited to a set that has been vetted to exclude allegedly exploitative terms, and the fact that employees have unequal bargaining power to almost all employing entities, most employment contracts are "standard form".[81] Most terms and conditions are photocopied or reproduced for many people. Genuine negotiation is rare, unlike in commercial transactions between two business corporations. This has been the main justification for enactment of rights in federal and state law. The federal right to collective bargaining, by a labor union elected by its employees, is meant to reduce the inherently unequal bargaining power of individuals against organizations to make collective agreements.[82] The federal right to a minimum wage, and increased overtime pay for working over 40 hours a week, was designed to ensure a "minimum standard of living necessary for health, efficiency, and general well-being of workers", even when a person could not get a high enough wage by individual bargaining.[83] These and other rights, including family leave, rights against discrimination, or basic job security standards, were designed by the United States Congress and state legislatures to replace individual contract provisions. Statutory rights override even an express written term of a contract, usually unless the contract is more beneficial to an employee. Some federal statutes also envisage that state law rights can improve upon minimum rights. For example, the Fair Labor Standards Act of 1938 entitles states and municipalities to set minimum wages beyond the federal minimum. By contrast, other statutes such as the National Labor Relations Act of 1935, the Occupational Safety and Health Act of 1970,[84] and the Employee Retirement Income Security Act of 1974,[85] have been interpreted in a series of contentious judgments by the US Supreme Court to "preempt" state law enactments.[86] These interpretations have had the effect to "stay experimentation in things social and economic" and stop states wanting to "serve as a laboratory" by improving labor rights.[87] Where minimum rights do not exist in federal or state statutes, principles of contract law, and potentially torts, will apply.

Aside from terms in oral or written agreements, terms can be incorporated by reference. Two main sources are collective agreements and company handbooks. In JI Case Co v National Labor Relations Board an employing corporation argued it should not have to bargain in good faith with a labor union, and did not commit an unfair labor practice by refusing, because it had recently signed individual contracts with its employees.[89] The US Supreme Court held unanimously that the "very purpose" of collective bargaining and the National Labor Relations Act 1935 was "to supersede the terms of separate agreements of employees with terms which reflect the strength and bargaining power and serve the welfare of the group". Terms of collective agreements, to the advantage of individual employees, therefore supersede individual contracts. Similarly, if a written contract states that employees do not have rights, but an employee has been told they do by a supervisor, or rights are assured in a company handbook, they will usually have a claim.[90] For example, in Torosyan v Boehringer Ingelheim Pharmaceuticals, Inc the Supreme Court of Connecticut held that a promise in a handbook that an employee could be dismissed only for a good reason (or "just cause") was binding on the employing corporation. Furthermore, an employer had no right to unilaterally change the terms.[91] Most other state courts have reached the same conclusion, that contracts cannot be altered, except for employees' benefit, without new consideration and true agreement.[92] By contrast, a slight majority on the California Supreme Court, appointed by Republican governors, held in Asmus v Pacific Bell that a company policy of indefinite duration can be altered after a reasonable time with reasonable notice, if it affects no vested benefits.[93] The four dissenting judges, appointed by Democratic governors, held this was a "patently unfair, indeed unconscionable, result—permitting an employer that made a promise of continuing job security ... to repudiate that promise with impunity several years later". In addition, a basic term of good faith which cannot be waived, is implied by common law or equity in all states. This usually demands, as a general principle that "neither party shall do anything, which will have the effect of destroying or injuring the right of the other party, to receive the fruits of the contract".[94] The term of good faith persists throughout the employment relationship. It has not yet been used extensively by state courts, compared to other jurisdictions. The Montana Supreme Court has recognized that extensive and even punitive damages could be available for breach of an employee's reasonable expectations.[95] However others, such as the California Supreme Court limit any recovery of damages to contract breaches, but not damages regarding the manner of termination.[96] By contrast, in the United Kingdom the requirement for "good faith"[97] has been found to limit the power of discharge except for fair reasons[98] (but not to conflict with statute[99]), in Canada it may limit unjust discharge also for self-employed persons,[100] and in Germany it can preclude the payment of wages significantly below average.[101]

Finally, it was traditionally thought that arbitration clauses could not displace any employment rights, and therefore limit access to justice in public courts.[102] However, in 14 Penn Plaza LLC v. Pyett,[103] in a 5 to 4 decision under the Federal Arbitration Act of 1925, individual employment contract arbitration clauses are to be enforced according to their terms. The four dissenting judges argued that this would eliminate rights in a way that the law never intended.[104]

Wages and pay[edit]

Wage regulation sources

West Coast Hotel Co v Parrish, 300 US 379 (1937)

Fair Labor Standards Act of 1938, 29 USC §§201-211

ILOMinimum Wage Fixing Convention 1970 (no 131)

Walling v Jacksonville Paper Co, 317 US 564 (1943)

Auer v Robbins,

Long Island Care at Home Ltd v Coke,

Jewell Ridge Coal Corp v UMW,

Anderson v Mount Clemens Pottery Co,

Armour & Co v Wantock, 323 US 126 (1944)

Steiner v Mitchell, 350 US 247 (1956)

FLSA 1938, 29 USC §§203-207

Walling v Helmerich and Payne Inc, 323 US 37 (1944)

Christensen v Harris County,

Portal to Portal Act of 1947, 29 USC §§251-262

Consumer Credit Protection Act of 1968, 15 USC §§1671-1675

Skidmore v Swift & Co,

See US labor law and Fair Labor Standards Act of 1938

Main articles: Fair Labor Standards Act, Minimum wage in the US, List of U.S. minimum wages, Executive pay in the US, and Income tax in the US

While contracts often determine wages and terms of employment, the law refuses to enforce contracts that do not observe basic standards of fairness for employees.[105] Today, the Fair Labor Standards Act of 1938 aims to create a national minimum wage, and a voice at work, especially through collective bargaining should achieve fair wages. A growing body of law also regulates executive pay, although a system of "maximum wage" regulation, for instance by the former Stabilization Act of 1942, is not currently in force. Historically, the law actually suppressed wages, not of the highly paid, by ordinary workers. For example, in 1641 the Massachusetts Bay Colonylegislature (dominated by property owners and the official church) required wage reductions, and said rising wages "tende to the ruin of the Churches and the Commonwealth".[106] In the early 20th century, democratic opinion demanded everyone had a minimum wage, and could bargain for fair wages beyond the minimum. But when states tried to introduce new laws, the US Supreme Court held them unconstitutional. A right to freedom of contract, argued a majority, could be construed from the Fifth and Fourteenth Amendment's protection against being deprived "of life, liberty, or property, without due process of law". Dissenting judges argued that "due process" did not affect the legislative power to create social or economic rights, because employees "are not upon a full level of equality of choice with their employer".[107]

After the Wall Street Crash, and the New Deal with the election of Franklin D. Roosevelt, the majority in the US Supreme Court was changed. In West Coast Hotel Co v ParrishHughes CJ held (over four dissenters still arguing for Freedom of Contract) that a Washington law setting minimum wages for women was constitutional because the state legislatures should be enabled to adopt legislation in the public interest.[109] This ended the "Lochner era", and Congress enacted the Fair Labor Standards Act of 1938.[110] Under §202(a) the federal minimum wage aims to ensure a "standard of living necessary for health, efficiency and general well being".[111] Under §207(a)(1), most employees (but with many exceptions) working over 40 hours a week must receive 50 per cent more overtime pay on their hourly wage.[112] Nobody may pay lower than the minimum wage, but under §218(a) states and municipal governments may enact higher wages.[113] This is frequently done to reflect local productivity and requirements for decent living in each region.[114] However the federal minimum wage has no automatic mechanism to update with inflation. Because the Republican Party has opposed raising wages, the federal real minimum wage is over 33 per cent lower today than in 1968, among the lowest in the industrialized world.

People have campaigned for a $15 an hour minimum wage, because the real minimum wagehas fallen by more than 33% compared to 1968. In "tipped" jobs, some states still enable employers to take their workers' tips for between $2.13 and the $7.25 minimum wage per hour.

Although there is a federal minimum wage, it has been restricted in (1) the scope of who it covers, (2) the time that counts to calculate the hourly minimum wage, and (3) the amount that employers' can take from their employees' tips or deduct for expenses. First, five US Supreme Court judges held in Alden v Maine that the federal minimum wage cannot be enforced for employees of state governments, unless the state has consented, because that would violate the Eleventh Amendment.[115]Souter J, joined by three dissenting justices,[116] held that no such "sovereign immunity" existed in the Eleventh Amendment.[117]Twenty-eight states, however, did have minimum wage laws higher than the federal level in 2016. Further, because the US Constitution, article one, section 8, clause 3 only allows the federal government to "regulate Commerce ... among the several States", employees of any "enterprise" under $500,000 making goods or services that do not enter commerce are not covered: they must rely on state minimum wage laws.[118]FLSA 1938 §203(s) explicitly exempts establishments whose only employees are close family members.[119] Under §213 the minimum wage may not be paid to 18 categories of employee, and paying overtime to 30 categories of employee.[120] This include under §213(a)(1) employees of "bona fide executive, administrative, or professional capacity". In Auer v Robbins police sergeants and lieutenants at the St Louis Police Department, Missouri claimed they should not be classed as executives or professional employees, and should get overtime pay.[121]Scalia J held that, following Department of Labor guidance, the St Louis police commissioners were entitled to exempt them. This has encouraged employers to attempt to define staff as more "senior" and make them work longer hours while avoiding overtime pay.[122] Another exemption in §213(a)(15) is for people "employed in domestic service employment to provide companionship services". In Long Island Care at Home Ltd v Coke, a corporation claimed exemption, although Breyer J for a unanimous court agreed with the Department of Labor that it was only intended for carers in private homes.[123]

Second, because §206(a)(1)(C) says the minimum wage is $7.25 per hour, courts have grappled with which hours count as "working".[126] Early cases established that time traveling to work did not count as work, unless it was controlled by, required by, and for the benefit of an employer, like traveling through a coal mine.[127] For example, in, Anderson v Mount Clemens Pottery Co a majority of five to two justices held that employees had to be paid for the long walk to work through an employer's Mount Clemens Pottery Co facility.[128] According to Murphy J this time, and time setting up workstations, involved "exertion of a physical nature, controlled or required by the employer and pursued necessarily and primarily for the employer's benefit."[129] In Armour & Co v Wantockfirefighters claimed they should be fully paid while on call at their station for fires. The Supreme Court held that, even though the firefighters could sleep or play cards, because "[r]eadiness to serve may be hired quite as much as service itself" and time waiting on call was "a benefit to the employer".[130] By contrast, in 1992 the Sixth Circuit controversially held that needing to be infrequently available by phone or pager, where movement was not restricted, was not working time.[131] Time spent doing unusual cleaning, for instance showering off toxic substances, does count as working time,[132] and so does time putting on special protective gear.[133] Under §207(e) pay for overtime should be one and a half times the regular pay. In Walling v Helmerich and Payne Inc, the Supreme Court held that an employer's scheme of paying lower wages in the morning, and higher wages in the afternoon, to argue that overtime only needed to be calculated on top of (lower) morning wages was unlawful. Overtime has to be calculated based on the average regular pay.[134] However, in Christensen v Harris County six Supreme Court judges held that police in Harris County, Texas could be forced to use up their accumulated "compensatory time" (allowing time off with full pay) before claiming overtime.[135] Writing for the dissent, Stevens J said the majority had misconstrued §207(o)(2), which requires an "agreement" between employers, unions or employees on the applicable rules, and the Texas police had not agreed.[136] Third, §203(m) allows employers to deduct sums from wages for food or housing that is "customarily furnished" for employees. The Secretary of Labor may determine what counts as fair value. Most problematically, outside states that have banned the practice, they may deduct money from a "tipped employee" for money over the "cash wage required to be paid such an employee on August 20, 1996"—and this was $2.13 per hour. If an employee does not earn enough in tips, the employer must still pay the $7.25 minimum wage. But this means in many states tips do not go to workers: tips are taken by employers to subsidize low pay. Under FLSA 1938 §216(b)-(c) the Secretary of State can enforce the law, or individuals can claim on their own behalf. Federal enforcement is rare, so most employees are successful if they are in a labor union. The Consumer Credit Protection Act of 1968 limits deductions or "garnishments" by employers to 25 per cent of wages,[137] though many states are considerably more protective. Finally, under the Portal to Portal Act of 1947, where Congress limited the minimum wage laws in a range of ways, §254 puts a two-year time limit on enforcing claims, or three years if an employing entity is guilty of a willful violation.[138]

The federal income tax rate for high earners was dramatically cut, while it has remained relatively high for the lowest workers.[139]

Working time and family care[edit]

Main articles: Public holidays in the United States, Maternity leave in the United States, and Work–family balance in the United States

People in the United States work among the longest hours per week in the industrialized world, and have the least annual leave.[141] The Universal Declaration of Human Rights of 1948 article 24 states: "Everyone has the right to rest and leisure, including reasonable limitation of working hours and periodic holidays with pay." However, there is no general federal or state legislation requiring paid annual leave. Title 5 of the United States Code §6103 specifies ten public holidays for federal government employees, and provides that holidays will be paid.[142] Many states do the same, however, no state law requires private sector employers to provide paid holidays. Many private employers follow the norms of federal and state government, but the right to annual leave, if any, will depend upon collective agreements and individual employment contracts. State law proposals have been made to introduce paid annual leave. A 2014 Washington Bill from United States House of Representatives member Gael Tarleton would have required a minimum of 3 weeks of paid holidays each year to employees in businesses of over 20 staff, after 3 years work. Under the International Labour OrganizationHolidays with Pay Convention 1970[143] three weeks is the bare minimum. The Bill did not receive enough votes.[144] By contrast, employees in all European Union countries have the right to at least 4 weeks (i.e. 28 days) of paid annual leave each year.[145] Furthermore, there is no federal or state law on limits to the length of the working week. Instead, the Fair Labor Standards Act of 1938 §207 creates a financial disincentive to longer working hours. Under the heading "Maximum hours", §207 states that time and a half pay must be given to employees working more than 40 hours in a week.[112] It does not, however, set an actual limit, and there are at least 30 exceptions for categories of employee which do not receive overtime pay.[146] Shorter working time was one of the labor movement's original demands. From the first decades of the 20th century, collective bargaining produced the practice of having, and the word for, a two-day "weekend".[147] State legislation to limit working time was, however, suppressed by the US Supreme Court in Lochner v New York.[148] The New York State Legislature had passed the Bakeshop Act of 1895, which limited work in bakeries to 10 hours a day or 60 hours a week, to improve health, safety and people's living conditions. After being prosecuted for making his staff work longer in his Utica, Mr Lochner claimed that the law violated the Fourteenth Amendment on "due process". Despite the dissent of four judges, a majority of five judges held that the law was unconstitutional. The Supreme Court, however, did uphold Utah's mine workday statute in 1898.[149] The Mississippi State Supreme Court upheld a ten hour workday statute in 1912 when it ruled against the due process arguments of an interstate lumber company.[150] The whole Lochner era of jurisprudence was reversed by the US Supreme Court in 1937,[151] but experimentation to improve working time rights, and "work-life balance" has not yet recovered.

Just as there are no rights to paid annual leave or maximum hours, there are no rights to paid time off for child care or family leave in federal law. There are minimal rights in some states. Most collective agreements, and many individual contracts, provide paid time off, but employees who lack bargaining power will often get none.[153] There are, however, limited federal rights to unpaid leave for family and medical reasons. The Family and Medical Leave Act of 1993 generally applies to employers of 50 or more employees in 20 weeks of the last year, and gives rights to employees who have worked over 12 months and 1250 hours in the last year.[154] Employees can have up to 12 weeks of unpaid leave for child birth, adoption, to care for a close relative in poor health, or because of an employee's own poor health.[155] Child care leave should be taken in one lump, unless agreed otherwise.[156] Employees must give notice of 30 days to employers if birth or adoption is "foreseeable",[157] and for serious health conditions if practicable. Treatments should be arranged "so as not to disrupt unduly the operations of the employer" according to medical advice.[158] Employers must provide benefits during the unpaid leave.[159] Under §2652(b) states are empowered to provide "greater family or medical leave rights". In 2016 California, New Jersey, Rhode Island and New York had laws for paid family leave rights. Under §2612(2)(A) an employer can make an employee substitute the right to 12 unpaid weeks of leave for "accrued paid vacation leave, personal leave or family leave" in an employer's personnel policy. Originally the Department of Labor had a penalty to make employers notify employees that this might happen. However, five judges in the US Supreme Court in Ragsdale v Wolverine World Wide, Inc held that the statute precluded the right of the Department of Labor to do so. Four dissenting judges would have held that nothing prevented the rule, and it was the Department of Labor's job to enforce the law.[160] After unpaid leave, an employee generally has the right to return to his or her job, except for employees who are in the top 10% of highest paid and the employer can argue refusal "is necessary to prevent substantial and grievous economic injury to the operations of the employer."[161] Employees or the Secretary of Labor can bring enforcement actions,[162] but there is no right to a jury for reinstatement claims. Employees can seek damages for lost wages and benefits, or the cost of child care, plus an equal amount of liquidated damages unless an employer can show it acted in good faith and reasonable cause to believe it was not breaking the law.[163] There is a two-year limit on bringing claims, or three years for willful violations.[164] Despite the lack of rights to leave, there is no right to free child care or day care. This has encouraged several proposals to create a public system of free child care, or for the government to subsize parents' costs.[165]

Pensions[edit]

Main articles: Pensions in the United States, List of largest pension schemes in the US, and Investment manager

In the early 20th century, the possibility of having a "retirement" became real as people lived longer,[166] and believed the elderly should not have to work or rely on charity until they died.[167] The law maintains an income in retirement in three ways (1) through public social security created by the Social Security Act of 1935,[168] (2) occupational pensions managed through the employment relationship, and (3) private pensions or life insurance that individuals buy themselves. At work, most occupational pension schemes originally resulted from collective bargaining during the 1920s and 1930s.[169] Unions usually bargained for employers across a sector to pool funds, so that employees could keep their pensions if they moved jobs. Multi-employer retirement plans, set up by collective agreement became known as "Taft-Hartley plans" after the Taft-Hartley Act of 1947 required joint management of funds by employees and employers.[170] Many employers also voluntarily choose to provide pensions. For example, the pension for professors, now called TIAA, was established on the initiative of Andrew Carnegie in 1918 with the express requirement for participants to have voting rights for the plan trustees.[171] These could be collective and defined benefit schemes: a percentage of one's income (e.g. 67%) is replaced for retirement, however long the person lives. But more recently more employers have only provided individual "401(k)" plans. These are named after the Internal Revenue Code §401(k),[172] which allows employers and employees to pay no tax on money that is saved in the fund, until an employee retires. The same tax deferral rule applies to all pensions. But unlike a "defined benefit" plan, a 401(k) only contains whatever the employer and employee contribute. It will run out if a person lives too long, meaning the retiree may only have minimum social security. The Pension Protection Act of 2006 §902 codified a model for employers to automatically enroll their employees in a pension, with a right to opt out.[173] However, there is no right to an occupational pension. The Employee Retirement Income Security Act of 1974 does create a series of rights for employees if one is set up. It also applies to health care or any other "employee benefit" plan.[174]

Five main rights for beneficiaries in ERISA 1974 include information, funding, vesting, anti-discrimination, and fiduciary duties. First, each beneficiary should receive a "summary plan description" in 90 days of joining, plans must file annual reports with the Secretary of Labor, and if beneficiaries make claims any refusal must be justified with a "full and fair review".[176] If the "summary plan description" is more beneficial than the actual plan documents, because the pension fund makes a mistake, a beneficiary may enforce the terms of either.[177] If an employer has pension or other plans, all employees must be entitled to participate after at longest 12 months, if working over 1000 hours.[178] Second, all promises must be funded in advance.[179] The Pension Benefit Guaranty Corporation was established by the federal government to be an insurer of last resort, but only up to $60,136 per year for each employer. Third, employees' benefits usually cannot be taken away (they "vest") after 5 years,[180] and contributions must accrue (i.e. the employee owns contributions) at a proportionate rate.[181] If employers and pension funds merge, there can be no reduction in benefits,[182] and if an employee goes bankrupt their creditors cannot take their occupational pension.[183] However, the US Supreme Court has enabled benefits to be withdrawn by employers simply amending plans. In Lockheed Corp v Spink a majority of seven judges held that an employer could alter a plan, to deprive a 61-year-old man of full benefits when he was reemployed, unbound by fiduciary duties to preserve what an employee had originally been promised.[184] In dissent, Breyer J and Souter J reserved any view on such "highly technical, important matters".[185] Steps to terminate a plan depend on whether it is individual, or multi-employer, and Mead Corp v Tilley a majority of the US Supreme Court held that employers could recoup excess benefits paid into pension plans after PBGC conditions are fulfilled. Stevens J, dissenting, contended that all contingent and future liabilities must be satisfied.[186] Fourth, as a general principle, employees or beneficiaries cannot suffer any discrimination or detriment for "the attainment of any right" under a plan.[187] Fifth, managers are bound by responsibilities of competence and loyalty, called "fiduciary duties".[188] Under §1102, a fiduciary is anyone who administers a plan, its trustees, and investment managers who are delegated control. Under §1104, fiduciaries must follow a "prudent" person standard, involving three main components. First, a fiduciary must act "in accordance with the documents and instruments governing the plan".[189] Second, they must act with "care, skill and diligence", including "diversifying the investments of the plan" to "minimize the risk of large losses".[190] Liability for carelessness extends to making misleading statements about benefits,[191] and have been interpreted by the Department of Labor to involve a duty to vote on proxies when corporate stocks are purchased, and publicizing a statement of investment policy.[192] Third, and codifying fundamental equitable principles, a fiduciary must avoid any possibility of a conflict of interest.[193] He or she must act "solely in the interest of the participants ... for the exclusive purpose of providing benefits" with "reasonable expenses",[194] and specifically avoiding self-dealing with a related "party in interest".[195] For example, in Donovan v Bierwirth, the Second Circuit held that trustees of a pension which owned shares in the employees' company as a takeover bid was launched, because they faced a potential conflict of interest, had to get independent legal advice on how to vote, or possibly abstain.[196] Remedies for these duties have, however, been restricted by the Supreme Court to disfavor damages.[197] In these fields, according to §1144, ERISA 1974 will "supersede any and all State laws insofar as they may now or hereafter relate to any employee benefit plan".[198] ERISA did not, therefore, follow the model of the Fair Labor Standards Act of 1938 or the Family and Medical Leave Act of 1993, which encourage states to legislate for improved protection for employees, beyond the minimum. The preemption rule led the US Supreme Court to strike down a New York that required giving benefits to pregnant employees in ERISA plans.[199] It held a case under Texas law for damages for denying vesting of benefits was preempted, so the claimant only had ERISA remedies.[200] It struck down a Washington law which altered who would receive life insurance designation on death.[201] However, under §1144(b)(2)(A) this does not affect 'any law of any State which regulates insurance, banking, or securities.' So, the Supreme Court has also held valid a Massachusetts law requiring mental health to be covered by employer group health policies.[202] But it struck down a Pennsylvania statute which prohibited employers becoming subrogated to (potentially more valuable) claims of employees for insurance after accidents.[203] Yet more recently, the court has shown a greater willingness to prevent laws being preempted,[204] however the courts have not yet adopted the principle that state law is not preempted or "superseded" if it is more protective to employees than a federal minimum.

The most important rights that ERISA 1974 did not cover were who controls investments and securities that beneficiaries' retirement savings buy. The largest form of retirement fund has become the 401(k). This is often an individual account that an employer sets up, and an investment management firm, such as Vanguard, Fidelity, Morgan Stanley or BlackRock, is then delegated the task of trading fund assets. Usually they also vote on corporate shares, assisted by a "proxy advice" firm such as ISS or Glass Lewis. Under ERISA 1974 §1102(a),[207] a plan must merely have named fiduciaries who have "authority to control and manage the operation and administration of the plan", selected by "an employer or employee organization" or both jointly. Usually these fiduciaries or trustees, will delegate management to a professional firm, particularly because under §1105(d), if they do so, they will not be liable for an investment manager's breaches of duty.[208] These investment managers buy a range of assets, particularly corporate stocks which have voting rights, as well as government bonds, corporate bonds, commodities, real estate or derivatives. Rights on those assets are in practice monopolized by investment managers, unless pension funds have organized to take voting in house, or to instruct their investment managers. Two main types of pension fund to do this are union organized Taft-Hartley plans, and state public pension plans. Under the amended National Labor Relations Act of 1935 §302(c)(5)(B) a union bargained plan has to be jointly managed by representatives of employers and employees.[209] Although many local pension funds are not consolidated and have had critical funding notices from the Department of Labor,[210] more funds with employee representation ensure that corporate voting rights are cast according to the preferences of their members. State public pensions are often larger, and have greater bargaining power to use on their members' behalf. State pension schemes invariably disclose the way trustees are selected. In 2005, on average more than a third of trustees were elected by employees or beneficiaries.[211] For example, the California Government Code §20090 requires that its public employee pension fund, CalPERS has 13 members on its board, 6 elected by employees and beneficiaries. However, only pension funds of sufficient size have acted to replace investment manager voting. Furthermore, no general legislation requires voting rights for employees in pension funds, despite several proposals.[212] For example, the Workplace Democracy Act of 1999, sponsored by Bernie Sanders then in the US House of Representatives, would have required all single employer pension plans to have trustees appointed equally by employers and employee representatives.[205] There is, furthermore, currently no legislation to stop investment managers voting with other people's money as the Dodd-Frank Act of 2010 §957 banned broker-dealers

Источник: https://en.wikipedia.org/wiki/United_States_labor_law

 

 

The Essential Guide to Group Long-Term Care Insurance

 

Shortcuts

Click the links below to go to a specific section 

Introduction
Why Employers should offer LTC Insurance as a benefit
How long-term care insurance works — and typical premiums
Standalone versus combination Life/LTC plans
Product Options — Group plans versus multi-life options
Recommendations for Employers with current in-force
Group LTC plans
Voluntary LTC plans and increasing enrollment
The tax treatment of LTC Insurance
Health Savings Accounts and LTC Insurance
Executive LTC plans
Is your company a good candidate for offering coverage?

  


Introduction 

Risks to financial future.png

Most employees planning for retirement have three major concerns - an unexpected health event, outliving their income, and passing away financially unprepared. Life Insurance programs and retirement savings programs such as 401(k)'s can address two of these major concerns. Many serious health events are covered by Medicare or supplemental private health insurance policies. However, there is a large gap in most employees personal planning - the possibility of needing help due to the effects of aging or extended healthcare.

Conditions such as Alzheimer's, Parkinson's Disease, Stroke, or simply just getting older can lead to needing help with care. Care can take place at home, an assisted living facility, or a nursing home - and it can be expensive! Since Medicare won't pay the costs, it has to be funded through savings, Medicaid, or long-term care insurance.

A long-term care insurance plan can't prevent Alzheimer's or other chronic conditions that result from disease or getting older. However, it can help the family tremendously at time of crisis, by offering access to a pool of money that can be used to pay for care. For employees who plan ahead and buy LTC coverage in their working years they can typically buy comprehensive long-term care (LTC) coverage for around $100 per month.And buying through an employer offer includes several advantages we will discuss in this report.

Whether you are an employer or a benefits professional, you may have heard that group LTC Insurance is no longer available to employer groups. That is not the case! Several LTC Insurance products are available in the marketplace, from traditional LTC coverage to policies that combine life insurance and long-term care insurance in one policy.  Read on to learn more!

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Why Employers should offer LTC insurance as a benefit

Long-term care insurance is a product that has been available for over 30 years, but only a small percentage of those who say they need coverage have a plan. One reason could be that a LTC Insurance plan is not available through their employer, despite the desire of employees to have this option.  In fact, according to 2017 survey of 1,200 adults conducted by Genworth Financial, four out of five Americans want the option of buying long term care insurance at work,  68% of survey respondents would prefer to purchase LTC Insurance through an employer compared to a financial professional.

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There are many advantages to an employee buying LTC Insurance through the employer:   

  1. Premium Discounts: Insurers typically discount premiums compared to what is available in the individual market.  They can do this because offering LTC to a large number of buyers lowers their customer acquistion cost. The discount can be extended to spouses and often extended family members. 
  2. Underwriting: Another advantage for employees is often streamlined underwriting. Most long-term care products include a health evaluation - important to keep the block of business stable and combat adverse selection by the employee.  However, many carriers will simplify the underwriting process on a group case with an open enrollment period which can allow more people to access plans.
  3. Unisex rate structure: Unlike products in the individual market, employer standalone long-term care plans offer the additional advantage of gender-neutral premium rates. Because they tend to live longer and need more long term care, woman pay more for LTC in the individual marketplace - but not in the employer market.
  4. Employee buying experience: Finally, an employee buying LTC Insurance through an employer group may have a better buying experience than someone buying in the individual marketplace. A robust education and awareness campaigns available can help employees make a thoughtful decision. The product offering has been vetted by the employer, and an employee may avoid a high-pressure sales approach.  Finally, these products offer convenient online enrollment.

Employers create thoughtful programs that help employees prepare for retirement, but the best plan can be devastated by a long-term care event. Offering employees long-term care coverage can help employees protect their retirement income and lifestyle.  Want to know how LTC Insurance works?  Keep reading!

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How long-term care insurance works

At it's basic level, the concept of LTC Insurance is just purchasing access to a pool of money when care is needed. Buyers select how big that pool of money is initially and decide whether the pool will automatically increase over time to keep up with inflation. LTC Insurance will pay for care in a variety of settings, based on the policyholders individual needs.  

 how it works

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Two types of group coverage - Standalone and Life/LTC combination 

Group Long-term care Insurance programs come in two flavors - traditional "standalone" health-based LTC Insurance and group life insurance that includes a long-term care insurance benefit. There are some differences in how these plans work,  both products will pay once policyholders need assistance with either two of six activities of daily living or have a cognitive impairment requiring supervision. The benefit received by the policyholder is typically received tax-free for expenses incurred for care giving. Both policies also allow for care to be received at home, in assisted living, or at a skilled nursing facility.

The difference is that plans that combine life insurance will pay a long-term care benefit by allowing early access to the death benefit. Some products also include an extension of benefits rider once the initial benefit has been exhausted. If no long term care is needed, then the plan will pay a life insurance benefit to a family beneficiary upon death. Let's look at the advantages and disadvantages of each approach:

Advantages of Standalone LTC

  • Best value in pure LTC Benefit . Similar to term life insurance,  Standalone LTC insurance provides the most LTC benefit per premium dollar 
  • Includes Inflation Protection Options. Inflation protection options are designed to keep pace with the cost of care over time.
  • More coverage options  A Standalone LTC policy can be designed to cover either the full cost of care in the future or a portion of the care cost.
  • HSA friendly.  Employees with Health Savings Accounts can use HSA account dollars to pay LTC premiums.  

 Challenges of Standalone LTC

  • Use it or Lose it. If a policyholder never needs Long-term care there is no return of  premium or cash value.
  • Limited Carrier Options. Due to historically low interest rates and widespread pricing errors on early LTC policies, many carriers have exited the market. As interset rates stabilize, it is expected new carriers will enter or re-enter the market.
  • Standalone LTC is not for everyone. With the average premium of Standalone LTC around $1,200 annually, this benefit tends to be more appealing to employees 45 - 65 with total household incomes of $100K or more.
  • Requires some medical Underwriting.  LTC Insurance provides substantial benefits and carriers are carefully underwriting coverage to avoid past mistakes. No Guarantee Issue options are available in the standalone LTC market, however there is worksite or streamlined underwriting not available in the individiual or retail market.
  Life/LTC Combination plan Advantages
  • Guaranteed benefits Either in the form of LTC benefits or a death benefit, this product will provide a benefit to each insured who maintains the coverage
  • Provides Life Insurance and LTC. Allows insured to cover two risks with one policy.
  • Robust Market of Highly Rated Carriers.
  • Guarantee and simplfied Issue  underwriting Available. For many products, 100% of eligible employees will be accepted up to the GI limit regardless of health. Employees may have the option to purchase coverage above the GI limit with medical underwriting.
  • Affordable plan designs Life with LTC allows for a broader range of benefits and premiums that fit many budgets and needs
 Challenges of Life with LTC Benefits
  • Limited Inflation Protection Options. With most products,  total and monthly benefit of Life with LTC remain level for the life of the policy subjecting plan participants to inflation risk.
  • Smokers will have higher rates than non-smokers
  • Higher premiums per Dollar of LTC Benefit. Due to the addition of Life Insurance, the cost is higher per dollar of LTC benefit
  • Smaller pool of LTC Benefits available.  The flipside of easier underwriting is small limits on the total pool of LTC benefits available.
  • Life Insurance benefit may be exhausted by an LTC insurance event.

 

 

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The Shift from "True Group" LTC Plans to Multi-Life

For many years the only way for employers to offer standalone long-term care insurance was using group plans - a master policy was issued to the employer and each employee was issued certificates of coverage.  Participants in this market included Unum, John Hancock, Metlife, Prudential, CNA and Aetna. Plans were offered with guaranteed issue underwriting,  and premium rates were designed to remain level for the lifetime of the certificate holder.

Group coverage allowed for efficient census driven enrollment of employees, payroll deduction of premiums and coverage  based on the situs state of the employer.  Although nearly all group carriers no longer offer coverage to new employer groups, millions of American employees and retirees still have group LTC benefits through these insurers.

Now, most long-term care insurance sold at the employer is individual contracts - so-called 'mult-life' LTC.  Why did the market for standalone LTC move from group contracts to individual contracts issued at the worksite?  

  • Group carriers left the market. None of the true group carriers listed above are enrolling new groups, and some of them have stop accepting applications on existing groups as well. Because LTC Insurance was underwritten on a guaranteed issue basis and in most cases was a voluntary program adverse selection could occur as employees more likely to need care in the future may buy richer plans.  
  • Individual contracts allow for carriers to more effectively manage pricing and underwriting. By using individual contracts, carriers can ensure that the products they are placing are using the latest underwriting standards and pricing assumptions.  True group plans suffered from new entrants to the group that were subject to older rates. For example, many older group plans only offered one type of benefit that may have paid only for professional home care.   Individual plans allow new employees or late entrants to the plan to get the latest product features and premium rates.
  • More flexibility in policy benefits:  Individual multi-life products offer more flexibility in up to date product features.  For example newer plans often can offer "cash alternatives' that can pay a benefit even if an at-home spouse is doing the caregiving - a feature often not avalble on "one-size fits all" group plans.
  • Technology allows for individual products to be enrolled online:  As mentioned above, an appeal of group products was a census driven enrollment - individual contracts years ago would have required pages of paper applications.  Now, individual multi-life plans offer online applications.
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Recommendations for Employers with in-force Group LTC Plans

Over years numerous employers, both small and large, implemented group LTC plans for their employees. Some of the carriers that used to offer group coverage but are no longer writing new groups include Aetna, CNA, John Hancock, MedAmerica, MetLife, Prudential, and UNUM.

 These programs provide valuable benefits for employees and retirees, but they can present employers some challenges. Here are some of the issues: 

  1. Most of the legacy true group carriers no longer offer coverage to employees who didn't participate in the initial plan offering or new hires
  2. Numerous carriers have suspended new business sales or exited the marketplace
  3. Carriers are implementing in-force rate increases
  4. Older plans don't incorporate the latest LTC benefits, such as plans that pay for informal care at their home 

Employers in this position may need help with:

  1. Marketplace analysis (in-force coverage versus today's coverage)
  2. Help determine whether a new offering (and carrier) is suitable for employees
  3. Managing the communication of in-force rate increases
  4. Advising employees of their options for what to do when they receive a in-force premium increase 

  


 

Voluntary Long-term care insurance - an overview

More and more employers are offering voluntary insurance products including long-term care insurance. Long-term care insurance is unique in that it both augments a medical plan and also helps protect retiree savings and investments.

Once an employer has decided voluntary LTC fits into their benefits offering they'll need to work with their benefits specialist to design an effective communication and enrollment strategy. Here is a broad overview of the key aspects of a successful voluntary offering:

  1. Employer Support.  The important way to insure success is to have an engaged employer committed to a robust education campaign.  
  2. Email communications campaign.   A customized email campaign including personalized rate quotes and enrollment deadline reminders are critical for success.
  3. Live and pre-recorded webinars. While on-site meetings are still an effective way to educate employees, more and more employers, especially those with remote employees, are using webinars.
  4. On-line enrollment and education.  
  5. Call center support with LTC planning specialists
  6. Direct billing for employees. LTC Insurance is 100% portable and a product that employees and dependents take with them beyond their working years.  Payroll deduction is not necessary.
  7. Dual-enrollment strategy.  Due to the lack of awareness in LTC planning, most employees need time to determine if the benefit is right for them. An off-cycle enrollment can be complimented by offering coverage during an employer's core enrollment. This enables employees to better understand and plan for long-term care.

The above represents a list of the basics of enrollment success and each piece is part of the puzzle. In order to really encourage planning, read on....

 

Behavioral Finance and LTC Enrollments best practices

We all have unconscious and conscious biases that direct our decision making, especially with financial decisions such as retirement and healthcare planning. As someone who works in the financial services and insurance industry you've heard about how the evolving field of Behavioral Finance is changing the way benefits are communicated. Behavioral Finance is a relatively new field combines behavioral and cognitive psychological theory with conventional economics and finance to provide explanations for why people make irrational financial decisions.

As an example, for years 401(k) plans lacked participation that would have been expected with a benefit that often provided "free" money. The breakthrough in 401(k) participation came when more employers engaged in automatic enrollment for employees.  Much of the thinking behind these "nudges" became the basis for the field of behavioral finance, led by research from economists like Richard Thaler who won the Nobel Prize in 2017 for his work.

Although auto-enrollment for long-term care coverage would be ideal, not many employers would be willing to do this on a voluntary basis. However, there are several lessons that behavioral finance teaches us that can help increase participation plan in group LTC Insurance plans.  Here are some of the most powerful:

  • Keep choices as simple as possible. Long-term care insurance can be very complicated with many moving pieces.  However, a smart voluntary LTC program will pre-package two or three choices that employees can select from, without removing their ability to customize plans if they'd like.  
  • Use stories, not statistics. Statistics, such as the odds of going into a nursing home and how long care will last, are the typical starting point for education on LTC.  However, a more powerful approach is through stories.
  • Focus on the possible gain LTC will provide instead of the possible loss. Research has shown that, just like gamblers, we all want to win, and we don’t like to think about losing. People who are considering LTCi don’t want to think about loss when planning for care, such as how their retirement savings may be depleted. Instead, focus on the fact that a small LTCi premium gives the policyholder the possibility of a big payoff in benefits. For example, a $120 monthly premium could result in $250,000 to pay for high-quality care at home.
  • Focus on “now” benefits, not the future.  It’s incredibly difficult for people to imagine aging and needing help. Instead, focus on the “now” benefits of LTCi.  The now benefits are more difficult to quantify, but they can include peace of mind, streamlined underwriting and locking into a lower premium before a birthday.
  • Forced choosing.  LTC planning is easy to delay, and people need motivations to keep them from delaying this decision. One technique is to require an eligible employee to make a decision on learning more about group LTC coverage before being allowed to complete their open enrollment. 

 

Decision Support Technology in enrollments

Most of us need guidance when purchasing voluntary products. Traditionally the most used enrollment technique has been face to face enrollers meeting with employees at the worksite.  

Although this method continues to be effective and used in some voluntary long-term care settings, there are some challenges as well:

  • Scheduling without mandating meetings
  • The rise of a remote workforce
  • The majority of LTC sales are purchased by couples - and it is challenging to meet face to face with busy families today

The good news is there are alternatives. The rise in online buying has meant people feel comfortable researching and buying products online. Helpful online coaches can help guide a decision, from plan design options to applying for coverage. 

 

Enrollment best practices and timing

A successful long-term care insurance enollment won't get 100% participation - but it should try and achieve 100% awareness.  A robust educational campaign to build awareness includes: 

  1. Emails communications that are well designed, educational, and allow for those not interested to opt out for additional reminders.
  2. Personalized rate quotes that help employees suitability of this benefit.
  3. Live and on-demand webinars 
  4. On site employee group meetings
  5. A call center of LTC planning specialists who can answer questions from employees and spouses
  6. On-line enrollment with live chat functionality

 timeline

 

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The tax treatment of LTC Insurance

With the passage of HIPAA in 1996, long-term care insurance was given similar tax treatment to health insurance - deductibles to businesses, premiums paid are not taxable to employees, and benefits for qualified long-term care services are income tax free. This unique and preferential tax-treatment is why LTC Insurance is an especially attractive group and executive benefit.   

 Here's an overview of the tax treatment of long-term care insurance:

 tax treatment

 

attained 

Benefits for LTC Insurance are received tax free - the only exception is for "cash" style benefits, which are tax-free up to a certain daily amount.

 Here's a helpful overview of the tax advantages of LTC Insurance, from the most favorable to the least.  

Hierarchy of tax preferenced methods.png

Note: This does not constitute tax advice. Nothing contained  on this webpage represents a guarantee that amounts paid for or received through LTC insurance are excludable from gross income for tax purposes. This material is provided for general informational purposes only. Consult with your LTCi advisor, attorney, accountant or tax advisor regarding tax implications of purchasing Long Term Care Insurance

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Health Savings Accounts and LTC Insurance

The growth in Health Savings Accounts over the last several years has been tremendous.  More employers and employees are becoming comfortable with the plans and the flexibility they provide. 

HSA Growth.png

Long-term care insurance premiums don't qualify as Section 125 pre-tax eligible. However, as more employees get HSA's and build balances, they will find that long-term care insurance is a natural fit. Health Savings Accounts can be used to pay LTC insurance premiums for employees and their spouses up to the annual tax limits shown above. As an example, if a 61 year old employee and same aged spouse both have LTC Insurance plans with a combined annual premium of $5,000 they can take that amount out of their plan to pay for the premiums using "pre-tax" dollars. That's because the combined limit for couples between the ages of 61 and 70 is $8,320.

What if an employee isn't able to pay their full LTC insurance premium from their HSA due to the limit associated with their existing age?  The good news is that once they advance to an older age range, they can recoup the shortfall from previous years. For example, if an employee purchased LTC with a premium of $2,000/year when they were age 60, they would only be able to use $1,560 from their HSA and would need to pay the remaining $440 with after tax dollars. The next year, at age 61, their limit goes up to $4,160. They would be able to pay the entire $2,000 premium for that year from their HSA, as well as recoup the $440 they paid out of pocket the previous year.

Since employers often provide funds to HSA for employees, those employee who wish to purchase LTC Insurance have a nice pre-tax benefit.

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Executive LTC Plans

 Executives can benefit greatly from a long-term care insurance plan. Often executives are at an age in which they are dealing with aging relatives while paying for college costs for their own children - a "sandwich" that creates stress and anxiety.  Adding LTC coverage to an executives benefit offering has several advantages, including:

  • Tax incentives.  Employer-paid LTC Insurance has the advantage of not being considered income to the employee, and benefits are received tax-free. Premiums are also deductible to companies - for more details take a look at the tax rules for LTC Insurance (provide link) Rules for hybrid life/LTC plans follow similar rules to employer paid life insurance.
  • Ability to "carve-out" class of employees. Unlike many other employer provided benefits subject to non-discrimination (ERISA) rules, this strategy enables employers to ‘carve out’ and create a class of select employees to offer long term care insurance. It works well for closely held family businesses.  It is suggested that an employer use a category such as years of service, job title, compensation or other criteria to create class and offer coverage. Often employers create a corporate resolution that spells out eligibility for the program.
  • Streamlined Underwriting. Buying LTCI for an executive class means they may have access to special underwriting concessions. And, when they leave their employer or retire these plans are 100% portable.
  • Limited premium plans.  Some LTC Insurance carriers offer accelerated premium plans such as 10 premium payments or pay to age 65. These programs all for an executive to leave or retire with a fully paid up LTC Insurance plan.  Some plans also offer a return of premium feature, so that a premature death can lead to the corporation recovering premiums paid. Limited pay plans are available for both traditional LTC and linked life/ltc plans.
  • Planning for extended family. Depending on the plan, discounts on the program may be available for extended family members - including spouses, adult age children, parents and grandparents.

 

 

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Should Your Company Offer Long-Term Care Insurance?

Offering Long-Term Care Insurance in the workplace provides numerous benefits to employees. Here are a few:

  • Timely and valuable education on the need for LTC planning. Getting old and planning for care is hard!  People have a hard time envisioning being dependent in the future. Education can have an impact - just has employer education has helped with retirement planning.
  • Addresses a significant “gap” in the employee’s financial plan and helps protect their 401(k) . The biggest risk to a well thought out retirement plan is an unplanned health or long-term care need. 
  • Simplified underwriting. Employees can often get easier underwriting than what they would be able to get on the individual marketplace. In some cases, plans may offer guaranteed issue coverage.  
  • Unisex rates and group discounts. An employer based LTC plan provides gender neutral multi-life rates that are generally lower than comparable coverage in the individual market. The rates in the individual market will be based on age, marital status, and state of residence.
  • Ability to carve out select classes of employees. LTC Insurance can be offered in creative ways. For example, C-level executives could be offered a high benefit plan paid by the employer. Other executives and managers can buy meaningful standalone coverage, while younger employees can look at payroll deduct life insurance with LTC riders. 
  • Benefits are generally received income tax-free.  
  • Employees can pay for LTC Insurance through an HSA

 

Finally, employees offered a long-term care plan buy earlier than the general buyers. That's critical because buying earlier has multiple benefits. LTC Insurance can make a huge difference in a families life.

  

 

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Источник: https://www.ltcipartners.com/the-essential-guide-to-group-long-term-care-insurance

Matching Giving

Many corporations match donations made by employees to a wide range of nonprofits, such as Quakertown Christian School. This allows them to support employee charitable giving and to extend their corporate philanthropy. Donations made for Race for Education, Giving Tuesday, and/or Year-end Giving qualify. QCS’ Tax ID# is 75-38382-7; this may be needed when submitting your donation match request. The following is a brief list of area employers who offer Matching Giving.  If you don’t see your company below, simply contact your employer’s Human Resources and ask whether your company matches employee donations.  You can also search for your employer at: http://www.matchinggifts.com/rit/

Some Area Employers


AETNA
Aetna matches donations from current employees and retirees. Click here to submit your online match gift.


Ameriprise Financial 
Ameriprise Financial matches employee donations. Donors should register their matching gift requests electronically here.


Avago
Avago Technologies matches donations made by employees to a wide range of educational organizations. Employees/donors can submit their matching donation requests by contacting HR or the community relations department.


Becton Dickinson
Becton Dickinson matches current employee’s and retiree’s donations. Employees/donors should register their matching gift requests electronically here.  Through Bristol-Myers Squibb’s Employee Volunteer Award Program, the foundation awards grants to nonprofit organizations with which employees of Bristol-Myers Squibb volunteer.  Employees should log into http://employeegiving.bms.com to access complete details on Bristol-Myers Squibb’s Employee Volunteer Award Program.HERE


Bristol-Myers Squibb  
Bristol-Myers Squibb matches donations from employees. Employees must log in and record their donations on Bristol-Myers Squibb’s employee Giving Program web site here.


Buckeye Partners  
Employees should download a copy of Buckeye Partners most up-to-date matching gift form from the company intranet by searching for “matching gifts”. If you have questions or need assistance please contact the benefits department at 866-866-2747 or [email protected]


Cardinal Health  
Cardinal Health matches donations from employees. Employees / donors should register their matching gift requests electronically here.


Charles Schwab  
Charles Schwab matches employee donations.  Employees / donors should register their matching gift requests electronically through the company intranet. Employees should search the intranet for “matching gifts” to be taken to the appropriate page.  If you have any questions or need assistance, please email [email protected] or [email protected]


CIGNA
CIGNA matches employee donations to many organizations. Basic details on CIGNA’s employee giving programs can be found at http://careers.cigna.com/CIGNApage.aspx?page=21.  The most up-to-date matching gift form can be found on the company intranet by searching for “matching gifts”.  If you have questions or need assistance, please email [email protected]


Costco
Costco’s matching gift program is designed to match contributions made by select full time salaried employees. Not all full time employees are eligible to participate. The most up-to-date matching gift form is available on the company intranet. Employees / donors should search the company intranet for “matching gifts” or email the community relations team for additional details.


Clemens Family Food Group
Clemens Family Corporation matches employee donations. Employees should download a copy of most up-to-date matching gift form from the company intranet by searching for “matching gifts”.


Exelon
Exelon matches employee donations to educational institutions. Employees should log in at https://www.easymatch.com/exelon/ to submit their matching gift requests.  If you have any questions, search the company intranet for “matching gifts” or email [email protected]


Express Scripts
Express Scripts offers a corporate employee matching gift program. Employees should submit their matching gift requests electronically through the company intranet by searching for “matching gifts”. Click here for guidelines.


GlaxoSmithKline
GlaxoSmithKline matches employee donations.  
Employees/donors can register their matching gift requests electronically here.


Hartford Steam Boiler
Hartford Steam Boiler Inspection and Insurance Company matches donations made by employees to a wide range of nonprofit organizations. Employees / donors can submit their matching gift requests by contacting HR or community relations. Click here for guidelines.


Horizon Blue Cross Blue Shield
Employees / donors should go to https://secure.horizonblue.com/employeeand then click on the link that says “Matching Gifts” to register their matching gift requests electronically.  If you have trouble submitting the form, email [email protected] for assistance.


Humana
Through Humana Foundation’s Giving Together Program, the company matches employee donations to most nonprofit organizations. Employees / donors submit their matching gift requests electronically at https://www.cybergrants.com/pls/cybergrants/eg_portal.home?x_gm_id=1798  Employees with additional questions should email [email protected] or call 888-431-HR4U


Juniper Networks, Inc.
Juniper matches employee donations to organizations. Employees / donors should register their matching gift requests electronically through the company intranet. The most up-to-date matching gift form can be accessed by searching for “matching gifts”. Juniper Networks Matching Gift Program (877) 519-1832 or [email protected] . You can also view guidelines here.


Lincoln Financial
Lincoln Financial matches donations to most nonprofits.  Donors should complete the top part of this form and mail it to the nonprofit.


Markem-Imaje
Markem-Imaje matches donations made by employees to a wide range of nonprofit organizations. Employees / donors can submit their matching gift requests by contacting HR or community relations.


McKesson
McKesson matches donations from employees to most nonprofits. Search for McKesson at http://www.matchinggifts.com/search/rit.  McKesson Employee Giving Program Administration  (800) 457-3395  [email protected]


Merck & Co.
Merck matches donation from current employees and retirees. Click here to submit your online match gift.  Through Merck’s Volunteer Grant Program, Merck provides volunteer grants when employees volunteer with a nonprofit on a regular basis. Volunteers should log their hours and register their volunteer grant requests electronically at http://www.cybergrants.com/merck/merckgivesback/.


Microsoft
Microsoft matches employee donations and also provides grants to nonprofits where its employees volunteer on a regular basis. Click here for more information. Click here to submit your matching gift request electronically.


Morgan Stanley
Morgan Stanley/Smith Barney matches employee donations and offers volunteer grant hours. Click here for more information on match gifts and volunteer grants.


Oracle
Oracle matches donations to most nonprofits. Oracle employees and members of the board of directors should submit matching gifts electronically at https://oracle.benevity.org/. 


Pfizer
Pfizer matches donations made by employees and retirees. Current Pfizer employees should submit their matching gifts electronically by searching for “Matching Gifts” on the company intranet or by going to http://www.pfizerplus.com/gi/give_back.aspx. If you have questions, please contact Pfizer’s employee giving team at (888) 782-3048.


PJM Interconnection
PJM Interconnection matches employee donations to most nonprofits. Employees should download a copy of the most up-to-date matching gift form from the company intranet by searching for “matching gifts”.


PNC
PNC matches employee donations to many nonprofits. Donors can register their matching gift requests electronically; read about their guidelines here.


Progressive
Progressive matches employee donations to most nonprofits. Employees / donors should register their matching gift requests electronically at https://www.cybergrants.com/progressive/employeegiving. Upon submission, the nonprofit will be notified and asked to verify the donation.


Prudential
Prudential matches donations to most nonprofits.  Prudential matches the first $100 that every employee gives at a $2 for $1 ratio. For the next $4,900, Prudential matches $1 for $1.  Prudential employees should submit matching gift requests through the Prudential CARES site. Employees can access the Prudential CARES website by logging in at https://prudential.benevity.org/.
If you have questions or need assistance please contact Corporate Engagement [email protected]


Radian Group Inc.
Radian Group Inc matches donations made by employees to a wide range of nonprofit organizations. Employees / donors should submit their matching gift requests by reaching out to HR or checking the company intranet for “Matching Gifts”. Guideline info here.


SAP America
Through SAP’s Dollars for Dollars (SAP$4$) Program, the company matches employee donations. Employees / donors should register their matching gift requests electronically at http://sap.benevity.org. Employees are encouraged to submit match requests at the time of the donation as there is an annual company-wide limit.  Through SAP’s Dollars for Doers (SAPD4D) Program, SAP provides grants to nonprofits where employees volunteer. For every hour an SAP employee volunteers, the company will provide a $20 grant.  Volunteer hours should be logged within three months of performing the volunteer work.


State Farm
State Farm matches donations from employees and retirees to schools and universities. Donors log into https://www.easymatch.com/statefarm/ to submit their matching gift request electronically. Paper forms are also available through the website.


Synchrony
Synchrony Financial matches donations from employees. Synchrony Financial’s employees should register their matching gift requests electronically through the company intranet by searching for “matching gifts” or going to the Community Relations section.  Synchrony Financial Matching Gift Program  (855) 304-0050
[email protected]


Thrivent Financial for Lutherans
Through Thrivent Financial’s Foundation, the company matches donations from employees and retirees. Click here to register your matching gift.


The Vanguard Group
The Vanguard Group matches donations from employees and retires to most nonprofits. The most up-to-date matching gift form is available on the company intranet. Employees / donors should search the company intranet for “matching gifts” for additional details. Read guidelines here.


Walmart
Through Walmart’s Volunteerism Always Pays (VAP) program, the company offers grants for Walmart employees who volunteer with nonprofit organizations.  After Walmart employees volunteer 25 hours with an organization, Walmart provides a volunteer grant of $250 to that organization.  Forms are located on Walmart’s intranet. For the most up-to-date version of the form, employees / volunteers should go to WIRE: [email protected]>Walmart Foundation>Volunteerism>Volunteerism Always Pays.


Willis Lease Finance Corporation
Willis Lease Finance Corporation matches employee donations. Employees should download a copy of the most up-to-date matching gift form from the company intranet by searching for “matching gifts”


Search for matching employers http://www.matchinggifts.com/rit/

 

Источник: https://qtownchristian.org/wp3/?page_id=11628

United States labor law

US laws governing employer–employee relationships

United States labor law sets the rights and duties for employees, labor unions, and employers in the United States. Labor law's basic aim is to remedy the "inequality of bargaining power" between employees and employers, especially employers "organized in the corporate or other forms of ownership association".[3] Over the 20th century, federal law created minimum social and economic rights, and encouraged state laws to go beyond the minimum to favor employees.[4] The Fair Labor Standards Act of 1938 requires a federal minimum wage, currently $7.25 but higher in 29 states and D.C., and discourages working weeks over 40 hours through time-and-a-half overtime pay. There is no federal law requiring paid holidays or paid family leave, and limited state laws. The Family and Medical Leave Act of 1993 creates a limited right to 12 weeks of unpaid leave in larger employers. There is no automatic right to an occupational pension beyond federally guaranteed social security,[5] but the Employee Retirement Income Security Act of 1974 requires standards of prudent management and good governance if employers agree to provide pensions, health plans or other benefits. The Occupational Safety and Health Act of 1970 requires employees have a safe system of work.

A contract of employment can always create better terms than statutory minimum rights. But to increase their bargaining power to get better terms, employees organize bbkings com unions for collective bargaining. The Clayton Act of 1914 guarantees all people the right to organize,[6] and the National Labor Relations Act of 1935 creates rights for most employees to organize without detriment through unfair labor practices. Under the Labor Management Reporting and Disclosure Act of 1959, labor union governance follows democratic principles. If a majority of employees in a workplace support a union, employing entities have a duty to bargain in good faith. Unions can take collective action to defend their interests, including withdrawing their labor on strike. There are not yet general rights to directly participate in enterprise governance, but many employees and unions have experimented with securing influence through pension funds,[7] and representation on corporate boards.[8]

Since the Civil Rights Act of 1964, all employing entities and labor unions have a duty to treat employees equally, without discrimination based on "race, color, religion, sex, or national origin."[9] There are separate rules for sex discrimination in pay under the Equal Pay Act of 1963. Additional groups with "protected status" were added by the Age Discrimination in Employment Act of 1967 and the Americans with Disabilities Act of 1990. There is no federal law banning all sexual orientation or identity discrimination, but 22 states had passed laws by 2016. These equality laws generally prevent discrimination in hiring, terms of employment, and make discharge because of a protected characteristic unlawful. There is no federal law against unjust discharge, and most states also have no law with full protection against wrongful termination of employment.[10]Collective agreements made by labor unions and some individual contracts require people are only discharged for a "just cause". The Worker Adjustment and Retraining Notification Act of 1988 requires employing entities give 60 days notice if more than 50 or one third of the workforce may lose their jobs. Federal law has aimed to reach full employment through monetary policy and spending on infrastructure. Trade policy has attempted to put labor rights in international agreements, to ensure open markets in a global economy do not undermine fair and full employment.

History[edit]

Main articles: History of labor law in the United States and Labor history of the United States

Modern US labor law mostly comes from statutes passed between 1935 and 1974, and changing interpretations of the US Supreme Court.[11] However, laws regulated the rights of people at work and employers from colonial times on. Before the Declaration of Independence in 1776, the common law was either uncertain or hostile to labor rights.[12] Unions were classed as conspiracies, and potentially criminal.[13] It tolerated slavery and indentured servitude. From the Pequot War in Connecticut from 1636 onwards, Native Americanswere enslaved by European settlers. More than half of the European immigrants arrived as prisoners, or in indentured servitude,[14] where they were not free to leave their employers until a debt bond solano county population been repaid. Until its abolition, the Atlantic slave trade brought millions of Africans to do forced labor in the Americas.

However, in 1772, the EnglishCourt of King's Bench held in Somerset v Stewart that slavery was to be presumed unlawful at common law.[15]Charles Stewart from Boston, Massachusetts had bought James Somerset as a slave and taken him to England. With the help of abolitionists, Somerset escaped and sued for a writ of habeas corpus (that "holding his body" had been unlawful). Lord Mansfield, after declaring he should "let justice be done whatever be the consequence", held that slavery was "so odious" that nobody could take "a slave by force to be sold" for any "reason whatever". This was a major grievance of southern slave owning states, leading up to the American Revolution in 1776.[16] The 1790 United States Census recorded 694,280 slaves (17.8 per cent) of a total 3,893,635 population. After independence, the British Empire halted the Atlantic slave trade in 1807,[17] and abolished slavery in its own territories, by paying off slave owners in 1833.[18] In the US, northern states progressively abolished slavery. However, southern states did not. In Dred Scott v Sandford the Supreme Court held the federal government could not regulate slavery, and also that people who were slaves had no legal rights in court.[19] The American Civil War was the result. President Lincoln's Emancipation Proclamation in 1863 made abolition of slavery a war aim, and the Thirteenth Amendment of 1865 enshrined the abolition of most forms of hsbc bank usa phone number in the Constitution. Former slave owners were further prevented from holding people in involuntary servitude for debt by the Peonage Act of 1867.[20] In 1868, the Fourteenth Amendment ensured equal access to justice, and the Fifteenth Amendment required that everyone would have the right to vote. The Civil Rights Act of 1875 was also meant to ensure equality in access to housing and transport, but in the Civil Rights Cases, the Supreme Court found it was "unconstitutional", ensuring that racial segregation would continue. In dissent, Harlan J said the majority was leaving people "practically at the mercy of corporations".[21] Even if people were formally free, they remained factually dependent on property owners for work, income and basic services.

Labor is prior to and independent of capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration . The prudent, penniless beginner in the world labors for wages awhile, saves a surplus with which to buy tools or land for himself, then labors on his own account another while, and at length hires another new beginner to help him. This is the just and generous and prosperous system which opens the way to all, gives hope to all, and consequent energy and progress and improvement of condition to all. No men living are more worthy to be trusted than those who toil up from poverty; none less inclined to take or touch aught which they have not honestly earned. Let them beware of surrendering a political power which they already possess, and which if surrendered will surely be used to close the door of advancement against such as they and to fix new disabilities and burdens upon them till all of liberty shall be lost.

—Abraham Lincoln, First Annual Message (1861)

Like slavery, common law repression of labor unions was slow to be undone.[22] In 1806, Commonwealth v Pullis held that a Philadelphia shoemakers union striking for higher wages was an illegal "conspiracy",[23] even though corporations—combinations of employers—were lawful. Unions still formed and acted. The first federation of unions, the National Trades Union was established in 1834 to achieve a 10 hour working day, but it did not survive the soaring unemployment from the financial Panic of 1837. In 1842, Commonwealth v Hunt, held that Pullis was wrong, after the Boston Journeymen Bootmakers' Society struck for higher wages.[24] The first instance judge said unions would "render property insecure, and make it the spoil of the multitude, would annihilate property, and involve society in a common ruin". But in the Massachusetts Supreme Judicial Court, Shaw CJ held people "are free to work for whom they please, or not to work, if they so prefer" and could "agree together to exercise their own acknowledged rights, in such a manner as best to subserve their own interests." This stopped criminal cases, although civil cases persisted.[25] In 1869 an organisation called the Knights of Labor was founded by Philadelphia artisans, joined by miners 1874, and urban tradesmen from 1879. It aimed for racial and gender equality, political education and cooperative enterprise,[26] yet it supported the Alien Contract Labor Law of 1885 which suppressed workers migrating to the US under a contract of employment.

Industrial conflicts on railroads and telegraphs from 1883 led to the foundation of the American Federation of Labor in 1886, with the simple aim of improving workers wages, housing and job security "here and now".[27] It also aimed to be the sole federation, to create a strong, unified labor movement. Business reacted with litigation. The Sherman Antitrust Act of 1890, which was intended to sanction business cartels acting in restraint of trade,[28] was applied to labor unions. In 1895, the US Supreme Court in In re Debs affirmed an injunction, based on the Sherman Act, against the striking workers of the Pullman Company. The strike leader Eugene Debs was put in prison.[29] In notable dissent among the judiciary,[30]Holmes J argued in Vegelahn v Guntner that any union taking collective action in good faith was lawful: even if strikes caused economic loss, this was equally legitimate as economic loss from corporations competing with one another.[31]Holmes J was elevated to the US Supreme Court, but was again in a minority on labor rights. In 1905, Lochner v New York held that New York limiting bakers' working day to 60 hours a week violated employers' freedom of contract. The Supreme Court majority supposedly unearthed this "right" in the Fourteenth Amendment, that no State should "deprive any person of life, liberty, or property, without due process of law."[32] With Harlan J, Holmes J dissented, arguing that the "constitution is not intended to embody a particular economic theory" but is "made for people of fundamentally differing views". On questions of social and economic policy, courts should never declare legislation "unconstitutional". The Supreme Court, however, accelerated its attack on labor in Loewe v. Lawlor, holding that triple damages were payable by a striking union to its employers under the Sherman Act of 1890.[33] This line of cases was finally quashed by the Clayton Act of 1914 §6. This removed labor from antitrust law, affirming that the "labor of a human being is not a commodity or article of commerce" and nothing "in the antitrust laws" would forbid the operation of labor organizations "for the purposes of mutual help".[34]

Throughout the early 20th century, states enacted labor rights to advance social and economic progress. But despite the Clayton Act, and abuses of employers documented by the Commission on Industrial Relations from 1915, the Supreme Court struck labor rights down as unconstitutional, leaving management powers virtually unaccountable.[35] In this Lochner era, the Courts held that employers could force workers to not belong to labor unions,[36] that a minimum wage for women and children was void,[37] that states could not ban employment agencies charging fees for work,[38] that workers could not strike in solidarity with colleagues of other firms,[39] and top model that the federal government could not ban child labor.[40] It also imprisoned socialist activists, who opposed the fighting in World War I, meaning that Eugene Debs ran as the Socialist Party's candidate for President in 1920 from prison.[41] Critically, the courts held state and federal attempts to create social security to be unconstitutional.[42] Because they were unable to save in safe public pensions, millions of people bought shares in corporations, causing massive growth in the stock market.[43] Because the Supreme Court precluded regulation for good information on what people were buying, corporate promoters tricked people into paying more than stocks were really worth. The Wall Street Crash of 1929 wiped out millions of people's savings. Business lost investment and fired millions of workers. Unemployed people had less to spend with businesses. Business fired more people. There was a downward spiral into the Great Depression.

This led to the www people daily com of Franklin D. Roosevelt for president in 1932, who promised a "New Deal". Government committed to create full employment and a system of social and economic rights enshrined in federal law.[44] But despite the Democratic Party's overwhelming electoral victory, the Supreme Court continued to strike down legislation, particularly the National Industrial Recovery Act of 1933, which regulated enterprise in an attempt to ensure fair wages and prevent unfair competition.[45] Finally, after Roosevelt's second overwhelming victory in 1936, and Roosevelt's threat to create more judicial positions if his laws were not upheld, one Supreme Court judge switched positions. In West Coast Hotel Co v Parrish the Supreme Court found that minimum wage legislation was constitutional,[46] letting the New Deal go on. In labor law, the National Labor Relations Act of 1935 guaranteed every employee the right to unionize, collectively bargain for fair wages, and take collective action, including in solidarity with employees of other firms. The Fair Labor Standards Act of 1938 created the right to a minimum wage, and time-and-a-half overtime pay if employers asked people to work over 40 hours a week. The Social Security Act of 1935 gave everyone the right to a basic pension and to receive insurance if they were unemployed, while the Securities Act of 1933 and the Securities Exchange Act of 1934 ensured buyers of securities on the stock market had good information. The Davis–Bacon Act of 1931 and Walsh–Healey Public Contracts Act of 1936 required that in federal government contracts, all employers would pay their workers fair wages, beyond the minimum, at prevailing local rates.[47] To reach full employment and out of depression, the Emergency Relief Appropriation Act of 1935 enabled the federal government to spend huge sums of money on building and creating jobs. This accelerated as World War II began. In 1944, his health waning, Roosevelt urged Congress to work towards a "Second Bill of Rights" through legislative action, because "unless there is security here at home there cannot be lasting peace in the world" and "we shall have yielded to the spirit of Fascism here at home."[48]

Although the New Deal had created a minimum safety net of labor rights, and aimed to enable fair pay through collective bargaining, a Republican dominated Congress revolted when Roosevelt died. Against the veto of President Truman, the Taft-Hartley Act of 1947 limited the right of labor unions to take solidarity action, and enabled states to ban unions requiring all people in a workplace becoming union members. A series of Supreme Court decisions, held the National Labor Relations Act of 1935 not only created minimum standards, but stopped or "preempted" states enabling better union rights, even though there was no such provision in the statute.[49] Labor unions became extensively regulated by the Labor Management Reporting and Disclosure Act of 1959. Post-war prosperity had raised people's living standards, but most workers who had no union, www prudential com gi employer forms job security rights remained vulnerable to unemployment. As well as the crisis triggered by Brown v Board of Education,[50] and whats 1st person point of view need to dismantle segregation, job losses in agriculture, particularly among African Americans was a major reason for the civil rights movement, culminating in the March on Washington for Jobs and Freedom led by Martin Luther King Jr. Although Roosevelt's Executive Order 8802 of 1941 had prohibited racial discrimination in the national defense industry, people still suffered discrimination because of their skin color across other workplaces. Also, despite the increasing numbers of women in work, sex discrimination was endemic. The government of John F. Kennedy introduced the Equal Pay Act of 1963, requiring equal pay for women and men. Lyndon B. Johnson introduced the Civil Rights Act of 1964, finally prohibiting discrimination against people for "race, color, religion, sex, or national origin." Slowly, a new generation of equal rights laws spread. At federal level, this included the Age Discrimination in Employment Act of 1967, the Pregnancy Discrimination Act of 1978, and the Americans with Disabilities Act of 1990, now overseen by the Equal Employment Opportunity Commission.

Although people, in limited fields, could claim to be equally treated, the mechanisms for fair pay and treatment were dismantled after the 1970s. The last major labor law statute, the Employee Retirement Income Security Act of 1974 created rights to well regulated occupational pensions, although only where an employer had already promised to provide one: this usually depended on collective bargaining by unions. But in 1976, the Supreme Court in Buckley v Valeo held anyone could spend unlimited amounts of money on political campaigns, as a part of the First Amendment right to "freedom of speech".[citation needed] After the Republican President Reagan took office in 1981, he dismissed all air traffic control staff who went on strike, and replaced the National Labor Relations Board members with pro-management men. Dominated by Republican appointees, the Supreme Court suppressed labor rights, removing rights of professors, religious school teachers, or illegal immigrants to organize in a union,[52] allowing employees to be searched at work,[53] and eliminating employee rights to sue for medical malpractice in their own health care.[54] Only limited statutory changes were made. The Immigration Reform and Control Act of 1986 criminalized large numbers of migrants. The Worker Adjustment and Retraining Notification Act of 1988 guaranteed workers some notice before a mass termination of their jobs. The Family and New canaan homes for sale Leave Act of 1993 guaranteed a right to 12 weeks leave to take care for children after birth, all unpaid. The Small Business Job Protection Act of 1996 cut the minimum wage, by enabling employers to take the tips of their staff to subsidize the minimum wage. A series of proposals by Democrat and independent politicians to advance labor rights were not enacted,[55] and the United States began to fall behind most other developed countries in labor rights,[56]

Contract and rights at work[edit]

See also: UK labour law, Canadian labour law, Australian labour law, European labour law, German labour law, French labour law, Indian labour law, and South African labour law

Contracts between employees and employers (mostly corporations) usually begin an employment relationship, but are often not enough for a decent livelihood. Because individuals lack bargaining power, especially against wealthy corporations, labor law creates legal rights that override arbitrary market outcomes. Historically, the law faithfully enforced property rights and freedom of contract on any terms,[58] whether or not this was inefficient, exploitative and unjust. In the early 20th century, as more people favored the introduction of democratically determined economic and social rights over rights of property and contract, state and federal governments introduced law reform. First, the Fair Labor Standards Act of 1938 created a minimum wage (now $7.25 at federal level, higher in 28 states) and overtime pay of one and a half times. Second, the Family and Medical Leave Act of 1993 creates very limited rights to take unpaid leave. In practice, good employment contracts improve on these minimums. Third, while there is no right to an occupational pension or other benefits, the Employee Retirement Income Security Act of 1974 ensures employers guarantee those benefits if they are promised. Fourth, the Occupational Safety and Health Act 1970 demands a safe system of work, backed by professional inspectors. Individual states are often empowered to go beyond the federal minimum, and function as laboratories of democracy in social and economic rights, where they have not been constrained by the US Supreme Court.

Scope of protection[edit]

Workplace protection cases

United States v Silk, 331 US 704 (1947)

NLRB v Hearst Publications, Inc, 322 US 111 (1944)

Golden State Bottling Co Inc v NLRB, 414 US 168 (1973)

South Prairie Co v Local No 627 IUOE, 425 US 800 (1976)

NLRB v Yeshiva University, 444 US 672 (1980)

Lemmerman v AT Williams Oil Co, 350 SE 2d 83 (1986)

Community for Creative Non-Violence v Reid, 490 US 730 (1989)

Nationwide Mut. Ins. Co. v Darden, 503 US 318 (1992)

Castillo v Case Farms of Ohio, 96 F Supp. 2d 578 (1999)

Clackamas Gastroenterology Ass v Wells, 538 US 440 (2003)

Christopher v SmithKline Beecham Corp, 567 US __ (2012)

See US labor law and inequality of bargaining power

See also: Worker, Employee, and Inequality of bargaining power

Common law, state and federal statutes usually confer labor rights on "employees", but not people who are autonomous and have sufficient bargaining power to be "independent contractors". In 1994, the Dunlop Commission on the Future of Worker-Management Relations: Final Report recommended a unified definition of an employee under all federal labor laws, to reduce litigation, but this was not implemented. As it stands, Supreme Court cases have stated various general principles, which will apply according to the context and purpose of the statute in question. In NLRB v Hearst Publications, Inc,[59] newsboys who sold newspapers in Los Angeles claimed that they were "employees", so that they had a right to collectively bargain under the National Labor Relations Act of 1935. The newspaper corporations argued the newsboys were "independent contractors", and they were under no duty to bargain in good faith. The Supreme Court held the newsboys were employees, and common law tests of employment, particularly the summary in the Restatement of the Law of Agency, Second §220, were no longer appropriate. They were not "independent contractors" because of the degree of control employers had. But the National Labor Relations Board could decide itself who was covered if it had "a reasonable basis in law." Congress reacted, first, www prudential com gi employer forms explicitly amending the NLRA §2(1) so that independent contractors were exempt from the law while, second, disapproving that the common law was irrelevant. At the same time, the Supreme Court decided United States v Silk,[60] holding that "economic reality" must be taken into account when deciding who is an employee under the Social Security Act of 1935. This meant a group of coal loaders were employees, having regard to their economic position, including their lack of bargaining power, the degree of discretion and control, and the risk they assumed compared to the coal businesses they worked for. By contrast, the Supreme Court found truckers who owned their own trucks, and provided services to a carrier company, were independent contractors.[61] Thus, it is now accepted that multiple factors of traditional common law tests may not be replaced if a statute gives no further definition of "employee" (as is usual, e.g., the Fair Labor Standards Act of 1938, Employee Retirement Income Security Act of 1974, Family and Medical Leave Act of 1993). Alongside the purpose of labor legislation to mitigate inequality of bargaining power and redress the economic reality of a worker's position, the multiple factors found in the Restatement of Agency must be considered, though none is necessarily decisive.[62]

Common law agency tests of who is an "employee" take account of an employer's control, if the employee is in a distinct business, degree of direction, skill, who supplies tools, length of employment, method of payment, the regular business of the employer, what the parties believe, and whether the employer has a business.[64] Some statutes also make specific exclusions that reflect the common law, such as for independent contractors, and others make additional exceptions. In particular, the National Labor Relations Act of 1935 §2(11) exempts supervisors with "authority, in the interest of the employer", to exercise discretion over other employees' jobs and terms. This was originally a narrow exception. Controversially, in NLRB v Yeshiva University,[65] a 5 to 4 majority of the Supreme Court held that full time professors in a university were excluded from collective bargaining rights, on the theory that they exercised "managerial" discretion in academic matters. The dissenting judges pointed out that management was actually in the hands of university administration, not professors. In NLRB v Kentucky River Community Care Inc,[66] the Supreme Court held, again 5 to 4, that six registered nurses who exercised supervisory status over others fell into the "professional" exemption. Stevens J, for the dissent, argued that if "the 'supervisor' is construed too broadly", without regard to the Act's purpose, protection "is effectively nullified".[67] Similarly, under the Fair Labor Standards Act of 1938, in Christopher v SmithKline Beecham Corp,[68] the Supreme Court held 5 to 4 that a traveling medical salesman for GSK of four years was an "outside salesman", and so could not claim overtime. People working unlawfully are often regarded as covered, so as not to encourage employers to exploit vulnerable employees. For instance in Lemmerman v AT Williams Oil Co,[69] under the North Carolina Workers' Compensation Act an eight-year-old boy was protected as an employee, even though children working under the age of 8 was unlawful. However, in Hoffman Plastic Compounds v NLRB,[70] the Supreme Court held 5 to 4 that an undocumented worker could not claim back pay, after being discharged for organizing in a union. The gradual withdrawal of more and more people from the scope of labor law, by a slim majority of the Supreme Court since 1976, means that the US falls below international law standards, and standards in other democratic countries, on core labor rights, including freedom of association.[71]

Common law tests were often important for determining who was, not just an employee, but the relevant employers who had "vicarious liability". Potentially there can be multiple, joint-employers could who share responsibility, although responsibility in tort law can exist regardless of an employment relationship. In Ruiz v Shell Oil Co,[73] the Fifth Circuit held that it was relevant which employer had more control, whose work was being performed, whether there were agreements in place, who provided tools, had a right to discharge the employee, or had the obligation to pay.[74] In Local 217, Hotel & Restaurant Employees Union v MHM Inc[75] the question arose under the Worker Adjustment and Retraining Notification Act of 1988 whether a subsidiary or parent corporation was responsible to notify employees that the hotel would close. The Second Circuit held the subsidiary was the employer, although the trial court had found the parent responsible while noting the subsidiary would be the employer under the NLRA. Under the Fair Labor Standards Act of 1938, 29 USC §203(r), any "enterprise" that is under common control will count as the employing entity. Other statutes do not explicitly adopt this approach, although the NLRB has found an enterprise to be an employer if it has "substantially identical management, business purpose, operation, equipment, customers and supervision."[76] In South Prairie Construction Co v Local No 627,[77] the Supreme Court found that the DC Circuit had legitimately identified two corporations as a single employer given that they had a "very substantial qualitative degree of centralized control of labor",[78] but that further determination of the relevant bargaining unit should have been remitted to the NLRB. When employees are hired through an agency, it is likely that the end-employer will be considered responsible for statutory rights in most cases, although the agency may be regarded as a joint employer.[79]

Contract of employment[edit]

Employment contract cases

JI Case Co v National Labor Relations Board, 321 US 322 (1944)

Torosyan v Boehringer Ingelheim Pharma, Inc, 662 A2d 89 (1995)

Demasse v ITT Corp, 984 P2d 1138 (1999)

Asmus v Pacific Bell, 999 P2d 71 (2000)

Stark v Circle K Corp, 751 P2d 162 (1988)

Foley v Interactive Data Corp, 765 P2d 373 (1988)

Alexander v Gardner-Denver Co, 415 US 36 (1974)

14 Penn Plaza LLC v Pyett, 556 US 247 (2009)

See US labor law and inequality of bargaining power

See also: United States contract law

When people start work, there will almost always be a contract of employment that governs the relationship of employee and the employing entity (usually a corporation, but occasionally a human being).[80] A "contract" is an agreement enforceable in law. Very often it can be written down, or signed, but an oral agreement is also a fully enforceable contract. Based on the reasoning that the party with less bargaining power benefits from having the range of acceptable contracts limited to a set that has been vetted to exclude allegedly exploitative terms, and the fact that employees have unequal bargaining power to almost all employing entities, most employment contracts are "standard form".[81] Most terms and conditions are photocopied or reproduced for many people. Genuine negotiation is rare, unlike in commercial transactions between two business corporations. This has been the main justification for enactment of rights in federal and state law. The federal right to collective bargaining, by a labor union beach house weekend rentals emerald isle nc by its employees, is meant to reduce the inherently unequal bargaining power of individuals against organizations to make collective agreements.[82] The federal right to a minimum wage, and increased overtime pay for working over 40 hours a week, was designed to ensure a "minimum standard of living necessary for health, efficiency, and general well-being of workers", even when a person could not get a high enough wage by individual bargaining.[83] These and other rights, including family leave, rights against discrimination, or basic job security standards, were designed by the United States Congress and state legislatures to replace individual contract provisions. Statutory rights override even an express written term of a contract, usually unless the contract is more beneficial to an employee. Some federal statutes also envisage that state law rights can improve upon minimum rights. For example, the Fair Labor Standards Act of 1938 entitles states and municipalities to set minimum wages beyond the federal minimum. By contrast, other statutes such as the National Labor Relations Act of 1935, the Occupational Safety and Health Act of 1970,[84] and the Employee Retirement Income Security Act of 1974,[85] have been interpreted in a series of contentious judgments by the US Supreme Court to "preempt" state law enactments.[86] These interpretations have had the effect to "stay experimentation in things social and economic" and stop states wanting to "serve as a laboratory" by improving labor rights.[87] Where minimum rights do not exist in federal or state statutes, principles of contract law, and potentially torts, will apply.

Aside from terms in oral or written agreements, terms can be incorporated by reference. Two main sources are collective agreements and company handbooks. In JI Case Co v National Labor Relations Board an employing corporation argued it should not have to bargain in good faith with a labor union, and did not commit an unfair labor practice by refusing, because it had recently signed individual contracts with its employees.[89] The US Supreme Court held unanimously that the "very purpose" of collective bargaining and the National Labor Relations Act 1935 was "to supersede the terms of separate agreements of employees with terms which reflect the strength and bargaining power and serve the welfare of the group". Terms of collective agreements, to the advantage of individual employees, therefore supersede individual contracts. Similarly, if a written contract states that employees do not have rights, but an employee has been told they do by a supervisor, or rights are assured in a company handbook, they will usually have a claim.[90] For example, in Torosyan v Boehringer Ingelheim Pharmaceuticals, Inc the Supreme Court of Connecticut held that a promise in a handbook that an employee could be dismissed only for a good reason (or "just cause") was binding wichita water bill pay the employing corporation. Furthermore, an employer had no right to unilaterally change the terms.[91] Most other state courts have reached the same conclusion, that contracts cannot be altered, except for employees' benefit, without new consideration and true edmond melvin haapaniemi By contrast, a slight majority on the California Supreme Court, appointed by Republican governors, held in Asmus v Pacific Bell that a company policy of indefinite duration can be altered after a reasonable time with reasonable notice, if it affects no vested benefits.[93] The four dissenting judges, appointed by Democratic governors, held this was a "patently unfair, indeed unconscionable, result—permitting an employer that made a promise of continuing job security . to repudiate that promise with impunity several years later". In addition, a basic term of good faith which cannot be waived, is implied by common law or equity in all states. This usually demands, as a general principle that "neither party shall do anything, which will have the effect of destroying or injuring the right of the other party, to receive the fruits of the contract".[94] The term of good faith persists throughout the employment relationship. It has not yet been used extensively by state courts, compared to other jurisdictions. The Montana Supreme Court has recognized that extensive and even punitive damages could be available for breach of an employee's reasonable expectations.[95] However others, such as the California Supreme Court limit any recovery of damages to contract breaches, but not damages regarding the manner of termination.[96] By contrast, in the United Kingdom the requirement for "good faith"[97] has been found to limit the power of discharge except for fair reasons[98] (but not to conflict with statute[99]), in Canada it may limit unjust discharge also for self-employed persons,[100] and in Germany it can preclude the payment of wages significantly below average.[101]

Finally, it was traditionally thought that arbitration clauses could not displace any employment rights, and therefore limit access to justice in public courts.[102] However, in 14 Penn Plaza LLC v. Pyett,[103] in a 5 to 4 decision under the Federal Arbitration Act of 1925, individual employment contract arbitration clauses are to be enforced according to their terms. The four dissenting judges argued that this would eliminate rights in a way that the law never intended.[104]

Wages and pay[edit]

Wage regulation sources

West Coast Hotel Co v Parrish, 300 US 379 (1937)

Fair Labor Standards Act of 1938, 29 USC §§201-211

ILOMinimum Wage Fixing Convention 1970 (no 131)

Walling v Jacksonville Paper Www prudential com gi employer forms, 317 US 564 (1943)

Auer v Robbins,

Long Bmoharris com online Care at Home Ltd v Coke,

Jewell Ridge Coal Corp v UMW,

Anderson v Mount Clemens Pottery Co,

Armour & Co v Wantock, 323 US 126 (1944)

Steiner v Mitchell, 350 US 247 (1956)

FLSA 1938, 29 USC §§203-207

Walling v Helmerich and Payne Inc, 323 US 37 (1944)

Christensen v Harris County,

Portal to Portal Act of 1947, 29 USC §§251-262

Consumer Credit Protection Act of 1968, 15 USC §§1671-1675

Skidmore v Swift & Co,

See US labor law and Fair Labor Standards Act of 1938

Main articles: Www prudential com gi employer forms Labor Standards Act, Minimum wage in the US, List of U.S. minimum wages, Executive pay in the US, and Income tax in the US

While contracts often determine wages and terms of employment, the law refuses to enforce contracts that do not observe basic standards of fairness for employees.[105] Today, the Fair Labor Standards Act of 1938 aims to create a national minimum wage, and a voice at work, especially through collective bargaining should achieve what is the state capital of utah wages. A growing body of law also regulates executive pay, although a system of "maximum wage" regulation, for instance by the former Stabilization Act of 1942, is not currently in force. Historically, the law actually suppressed wages, not of the highly paid, by ordinary workers. For example, in 1641 the Massachusetts Bay Colonylegislature (dominated by property owners and the official church) required wage reductions, and said rising wages "tende to the ruin of the Churches and the Commonwealth".[106] In the early 20th century, democratic opinion demanded everyone had a minimum wage, and could bargain for fair wages beyond the minimum. But when states tried to introduce new laws, the US Supreme Court held them unconstitutional. A right to freedom of contract, argued a majority, could be construed from the Fifth and Fourteenth Amendment's protection against being deprived "of life, liberty, or property, without due process of law". Dissenting judges argued that "due process" did not affect the legislative power to create social or economic rights, because employees "are not upon a full level of equality of choice with their employer".[107]

After the Wall Street Crash, and the New Deal with the election of Franklin D. Roosevelt, the majority in the US Supreme Court was changed. In West Coast Hotel Co v ParrishHughes CJ held (over four dissenters still arguing for Freedom of Contract) that a Washington law setting minimum wages for women was constitutional because the state legislatures should be enabled to adopt legislation in the public interest.[109] This ended the "Lochner era", and Congress enacted the Fair Labor Standards Act of 1938.[110] Under §202(a) the federal minimum wage aims to ensure a "standard of living necessary for health, efficiency and general well being".[111] Under §207(a)(1), most employees (but with many exceptions) working over 40 hours a week must receive 50 per cent more overtime pay on their hourly wage.[112] Nobody may pay lower than the minimum wage, but under §218(a) states and municipal governments may enact higher wages.[113] This is frequently done to reflect local productivity and requirements for decent living in each region.[114] However the federal minimum wage has no automatic mechanism to update with inflation. Because the Republican Party has opposed raising wages, the federal real minimum wage is over 33 per cent lower today than in 1968, among the lowest in the industrialized world.

People have campaigned for a $15 an hour minimum wage, because the real minimum wagehas fallen by more than 33% compared to 1968. In "tipped" jobs, some states still enable employers to take their workers' tips for between $2.13 and the $7.25 minimum wage per hour.

Although there is a federal minimum wage, it has been restricted in (1) the scope of who it covers, (2) the time that counts to calculate the hourly minimum wage, and (3) the amount that employers' can take from their employees' tips or deduct for expenses. First, five US Supreme Court judges held in Alden v Maine that the federal minimum wage cannot be enforced for employees of state governments, unless the state has consented, because that would violate the Eleventh Amendment.[115]Souter J, joined by three dissenting justices,[116] held that no such "sovereign immunity" existed in the Eleventh Amendment.[117]Twenty-eight states, however, did have minimum wage laws higher than the federal level in 2016. Further, because the US Constitution, article one, section 8, clause 3 only allows the federal government to "regulate Commerce . among the several States", employees of any mobile homes for rent in lancaster ca under $500,000 making goods or services that do not enter commerce are not covered: they must rely on state minimum wage laws.[118]FLSA 1938 §203(s) explicitly exempts establishments whose only employees are close family members.[119] Under §213 the minimum wage may not be paid to 18 categories of employee, and paying overtime to 30 categories of employee.[120] This include under §213(a)(1) employees of "bona fide executive, administrative, or professional capacity". In Auer v Robbins police sergeants and lieutenants at the St Louis Police Department, Missouri claimed they should not be classed as executives or professional employees, and should get overtime pay.[121]Scalia J held that, following Department of Labor guidance, the St Louis police commissioners were entitled to exempt them. This has encouraged employers to attempt to define staff as more "senior" and make them work longer hours while avoiding overtime pay.[122] Another exemption in §213(a)(15) is for people "employed in domestic service employment to provide companionship services". In Long Island Care at Home Ltd v Coke, a corporation claimed exemption, although Breyer J for a unanimous court agreed with the Department of Labor that it was only intended for carers in private homes.[123]

Second, because §206(a)(1)(C) says the minimum wage is $7.25 per hour, courts have grappled with which hours count as "working".[126] Early cases established that time traveling to work did not count as work, unless it was controlled by, required by, and for the benefit of an employer, like traveling through a coal mine.[127] For example, in, Anderson v Mount Clemens Pottery Co a majority of five to two justices held that employees had to be paid for the long walk to work through an employer's Mount Clemens Pottery Co facility.[128] According to Murphy J this time, and time setting up workstations, involved "exertion of a physical nature, controlled or required by the employer and pursued necessarily and primarily for the employer's benefit."[129] In Armour & Co v Wantockfirefighters claimed they should be fully paid while on call at their station for fires. The Supreme Court held that, even though the firefighters could sleep or play cards, because "[r]eadiness to serve may be hired quite as much as service itself" and time waiting on call was "a benefit to the employer".[130] By contrast, in 1992 the Sixth Circuit controversially held that needing to be infrequently available by phone or pager, where movement was not restricted, was not working time.[131] Time spent doing unusual cleaning, for instance showering off toxic substances, does count as working time,[132] and so does time putting on special protective gear.[133] Under §207(e) pay for overtime should be one and a half times the regular pay. In Walling v Helmerich and Payne Inc, the Supreme Court held that an employer's scheme of paying lower wages in the morning, and higher wages in the afternoon, to argue that overtime only needed to be calculated on top of (lower) morning wages was unlawful. Overtime has to be calculated based on the average regular pay.[134] However, in Christensen v Harris County six Supreme Court judges held that police in Harris County, Texas could be forced to use up their accumulated "compensatory time" (allowing time off with full pay) before claiming overtime.[135] Writing for the dissent, Stevens J said the majority had misconstrued §207(o)(2), which requires an "agreement" between employers, unions or employees on the applicable rules, and the Texas police had not agreed.[136] Third, §203(m) allows employers to deduct sums from wages for food or housing that is "customarily furnished" for employees. The Secretary of Labor may determine what counts as fair value. Most problematically, outside states that have banned the practice, they may deduct money from a "tipped employee" for money over the "cash wage required to be paid such an employee on August 20, 1996"—and this was $2.13 per hour. If an employee does not earn enough in tips, the employer must still pay the $7.25 minimum wage. But this means in many states tips do not go to workers: tips are taken by employers to subsidize low pay. Under FLSA 1938 §216(b)-(c) the Secretary of State can enforce the law, pier one platinum credit card individuals can claim on their own behalf. Federal enforcement is rare, so most employees are successful if they are in a labor union. The Consumer Credit Protection Act of 1968 limits deductions or "garnishments" by employers to 25 per cent of wages,[137] though many states are considerably more protective. Finally, under the Portal to Portal Act of 1947, where Congress limited the minimum wage laws in a range of ways, §254 puts a two-year time limit on enforcing claims, or three years if an employing entity is guilty of a willful violation.[138]

The federal income tax rate for high earners was dramatically cut, while it has remained relatively high for the lowest workers.[139]

Working time and family care[edit]

Main articles: Public holidays in the United States, Maternity leave in the United States, and Work–family balance in the United States

People in the United States work among the longest hours per week in the industrialized world, and have the least annual leave.[141] The Universal Declaration of Human Rights of 1948 article 24 states: "Everyone has the right to rest and leisure, including reasonable limitation of working hours and periodic holidays with pay." However, there is no general federal or state legislation requiring paid annual leave. Title 5 of the United States Code §6103 specifies ten public holidays for federal government employees, and provides that holidays will be paid.[142] Many states do the same, however, no state law requires private sector employers to provide paid holidays. Many private employers follow the norms of federal and state government, but the right to annual leave, if any, will depend upon collective agreements and individual employment contracts. State law proposals have been made to introduce paid annual leave. A 2014 Washington Bill from United States House of Representatives member Gael Tarleton would have required a minimum of 3 weeks of paid holidays each year to employees in businesses of over 20 staff, after 3 years work. Under the International Labour OrganizationHolidays with Pay Convention 1970[143] three weeks is the bare minimum. The Bill did not receive enough votes.[144] By contrast, employees in all European Union countries have the right to at least 4 weeks (i.e. 28 days) of paid annual leave each year.[145] Furthermore, there is no federal or state law on limits to the length of the working week. Instead, the Fair Labor Standards Act of 1938 §207 creates a financial disincentive to longer working hours. Under the heading "Maximum hours", §207 states that time and a half pay must be given to employees working more than 40 hours in a week.[112] It does not, however, set an actual limit, and there are at least 30 exceptions for categories of employee which do not receive overtime pay.[146] Shorter working time was one of the labor movement's original demands. From the first decades of the 20th century, collective bargaining produced the practice of having, and the word for, a two-day "weekend".[147] State legislation to limit working time was, however, suppressed by the US Supreme Court in Lochner v New York.[148] The New York State Legislature had passed the Bakeshop Act of 1895, which limited work in bakeries to 10 hours a day or 60 hours a week, to improve health, safety and people's living conditions. After being prosecuted for making his staff work longer in his Utica, Mr Lochner claimed that the law violated the Fourteenth Amendment on "due process". Despite the dissent of four judges, a majority of five judges held that the law was unconstitutional. The Supreme Court, however, did uphold Utah's mine workday statute in 1898.[149] The Mississippi State Supreme Court upheld a ten hour workday statute in 1912 when it ruled against the due process arguments of an interstate lumber company.[150] The whole Lochner era of jurisprudence was reversed by the US Supreme Court in 1937,[151] but experimentation to improve working time rights, and "work-life balance" has not yet recovered.

Just as there are no rights to paid annual leave or maximum hours, there are no rights to paid time off for child care or family leave in federal law. There are minimal rights in some states. Most collective agreements, and many individual contracts, provide paid time off, but employees who lack bargaining power will often get none.[153] There are, however, limited federal rights to unpaid leave for family and medical reasons. The Family and Medical Leave Act of 1993 generally applies to employers of 50 or more employees in 20 weeks of the last year, and gives rights to employees who have worked over 12 months and 1250 hours in the last year.[154] Employees can have up to 12 weeks of unpaid leave for child birth, adoption, to care for a close relative in poor health, or because of an employee's own poor health.[155] Child care leave should be taken in one lump, unless agreed otherwise.[156] Employees must give notice of 30 days to employers if birth or adoption is "foreseeable",[157] and for serious health conditions if practicable. Treatments should be arranged "so as not to disrupt unduly the operations of the employer" according to medical advice.[158] Employers must provide benefits during the unpaid leave.[159] Under §2652(b) states are all target locations near me to provide "greater family or medical leave rights". In 2016 California, New Jersey, Rhode Island and New York had laws for paid family leave rights. Under §2612(2)(A) an employer can make an employee substitute the right to 12 unpaid weeks of leave for "accrued paid vacation leave, personal leave or family leave" in an employer's personnel policy. Originally the Department of Labor had a penalty to make employers notify employees that this might happen. However, five judges in the US Supreme Court in Ragsdale v Wolverine World Wide, Inc held that the statute precluded the right of the Department of Labor to do so. Four dissenting judges would have held that nothing prevented the rule, and it was the Department of Labor's job to enforce the law.[160] After unpaid leave, an employee generally has the right to return to his or her job, except for employees who are in the top 10% of highest paid and the employer can argue refusal "is necessary to prevent substantial and grievous economic injury to the operations of the employer."[161] Employees or the Secretary of Labor can bring enforcement actions,[162] but there is no right to a jury for reinstatement claims. Employees can seek damages for lost wages and benefits, or the cost of child care, plus an equal amount of liquidated damages unless an employer can show it acted in good faith and reasonable cause to believe it was not breaking the law.[163] There is a two-year limit on bringing claims, or three years for willful violations.[164] Despite the lack of rights to leave, there is no right to free child care or day care. This has encouraged several proposals to create a public system of free child care, or for the government to subsize parents' costs.[165]

Pensions[edit]

Main articles: Pensions in the United States, List of largest pension schemes in the US, and Investment manager

In the early 20th century, the possibility of having a "retirement" became real as people lived longer,[166] and believed the elderly should not have to work or rely on charity until they died.[167] The law maintains an income in retirement in three ways (1) through public social security created by the Social Security Act of 1935,[168] (2) occupational pensions managed through the employment relationship, and (3) private pensions or life insurance that individuals buy themselves. At work, most occupational pension schemes originally resulted from collective bargaining during the 1920s and 1930s.[169] Unions usually bargained for employers across a sector to pool funds, so that employees could keep their pensions if they moved jobs. Multi-employer retirement plans, set up by collective agreement became known as "Taft-Hartley plans" after the Taft-Hartley Act of 1947 required joint management of funds by employees and employers.[170] Many how to get a credit card fast with no credit also voluntarily choose to provide pensions. For example, the pension for professors, now called TIAA, was established on the initiative of Andrew Carnegie in 1918 with the express requirement for participants to have voting rights for the plan trustees.[171] These could be collective and defined benefit schemes: a percentage of one's income (e.g. 67%) is replaced for retirement, however long the person lives. But more recently more employers have only provided individual "401(k)" plans. These are named after the Internal Revenue Code §401(k),[172] which allows employers and employees to pay no tax on money that is saved in the fund, until an employee retires. The same tax deferral rule applies to all pensions. But unlike a "defined benefit" plan, a 401(k) only contains whatever the employer and employee contribute. It will run out if a person lives too long, meaning the retiree may only have minimum social security. The Pension Protection Act of 2006 §902 codified a model for employers to automatically enroll their employees in a pension, with a right to opt out.[173] However, there is no right to an occupational pension. The Employee Retirement Income Security Act of 1974 does create a series of rights for employees if one is set up. It also applies to health care or any other "employee benefit" plan.[174]

Five main rights for beneficiaries in ERISA 1974 include information, funding, vesting, anti-discrimination, and fiduciary duties. First, each beneficiary should receive a "summary plan description" in 90 days of joining, plans must file annual reports with the Secretary of Labor, and if beneficiaries make claims any refusal must be justified with a "full and fair review".[176] If the "summary plan description" is more beneficial than the actual plan documents, because the pension fund makes a mistake, a beneficiary may enforce the terms of either.[177] If an employer has pension or other plans, all employees must be entitled to participate after at longest 12 months, if working over 1000 hours.[178] Second, all promises must be funded in advance.[179] The Pension Benefit Guaranty Corporation was established by the federal government to be an insurer of last resort, but only up to $60,136 per year for each employer. Third, employees' benefits usually cannot be taken away (they "vest") after 5 years,[180] and contributions must accrue (i.e. the employee owns contributions) at a proportionate rate.[181] If employers and pension funds merge, there can be no reduction in benefits,[182] and if an employee goes bankrupt their creditors cannot take their occupational pension.[183] However, the US Supreme Court has enabled benefits to be withdrawn by employers simply amending plans. In Lockheed Corp v Spink a majority of seven judges held that an employer could alter a plan, to deprive woodforest bank locations in georgia 61-year-old man of full benefits when he was reemployed, unbound by fiduciary duties to preserve what an employee had originally been promised.[184] In dissent, Breyer J and Souter J reserved any view on such "highly technical, important matters".[185] Steps to terminate best bank to get a home loan plan depend on whether it is individual, or multi-employer, and Mead Corp v Tilley a majority of the US Supreme Court held that employers could recoup excess benefits paid into pension plans after PBGC conditions are fulfilled. Stevens J, dissenting, contended that all contingent and future liabilities must be satisfied.[186] Texas roadhouse bangor maine, as a general principle, employees or beneficiaries cannot suffer any discrimination or detriment for "the attainment of any right" under a plan.[187] Fifth, managers are bound by responsibilities of competence and loyalty, called "fiduciary duties".[188] Under §1102, a fiduciary is anyone who administers a plan, its trustees, and investment managers who are delegated control. Under §1104, fiduciaries must follow a "prudent" person standard, involving three main components. First, a fiduciary must act "in accordance with the documents and instruments governing the plan".[189] Second, they must act with "care, skill and diligence", including "diversifying the investments of the plan" to "minimize the risk of large losses".[190] Liability for carelessness extends to making misleading statements about benefits,[191] and have been interpreted by the Department of Labor to involve a duty to vote on proxies when corporate stocks are purchased, and publicizing a statement of investment policy.[192] Third, and codifying fundamental equitable principles, a fiduciary must avoid any possibility of a conflict of interest.[193] He or she must act "solely in the interest of the participants . for the exclusive purpose of providing benefits" with "reasonable expenses",[194] and specifically avoiding self-dealing with a related "party in interest".[195] For example, in Donovan v Bierwirth, the Second Circuit held that trustees of a pension which owned shares in the employees' company as a takeover bid was launched, because they faced a potential conflict of interest, had to get independent legal advice on how to vote, or possibly abstain.[196] Remedies for these duties have, however, been restricted by the Supreme Court to disfavor damages.[197] In these fields, according to §1144, ERISA 1974 will "supersede any and all State laws insofar as they may now or hereafter relate to any employee benefit plan".[198] ERISA did not, www prudential com gi employer forms, follow the model of the Fair Labor Standards Act of 1938 or the Family and Medical Leave Act of 1993, which encourage states to legislate for improved protection for employees, beyond the minimum. The preemption rule led the US Supreme Court to strike down a New York that required giving benefits to pregnant employees in ERISA plans.[199] It held a case under Texas law for damages for denying vesting of benefits was preempted, so the claimant only had ERISA remedies.[200] It struck down a Washington law which altered who would receive life insurance designation on death.[201] However, under §1144(b)(2)(A) this does not affect 'any law of any State which regulates insurance, banking, or securities.' So, the Supreme Court has also held valid a Massachusetts law requiring mental health to be covered by employer group health policies.[202] But it struck down a Pennsylvania statute which prohibited employers becoming subrogated to (potentially more valuable) claims of employees for insurance after accidents.[203] Yet more recently, the court has shown a greater willingness to prevent laws being preempted,[204] however the courts have not yet adopted the principle that state law is not preempted or "superseded" if it is more protective to employees than a federal minimum.

The most important rights that ERISA 1974 did not cover were who controls investments and securities that beneficiaries' retirement savings buy. The largest form of retirement fund has become the 401(k). This is often an individual account that an employer sets up, and an investment management firm, such as Vanguard, Fidelity, Morgan Stanley or BlackRock, is then delegated the task of trading fund assets. Usually they also vote on corporate shares, assisted by a "proxy advice" firm such as ISS or Glass Lewis. Under ERISA 1974 §1102(a),[207] a plan must merely have named fiduciaries who have "authority to control and manage the operation and administration of the plan", selected by "an employer or employee organization" or both jointly. Usually these fiduciaries or trustees, will delegate management to a professional firm, particularly because under §1105(d), if they do so, they will not be liable for an investment manager's breaches of duty.[208] These investment managers buy a range of assets, particularly corporate stocks which have voting rights, as well as government bonds, corporate bonds, commodities, real estate or derivatives. Rights on those assets are in practice monopolized by investment managers, unless pension funds have organized to take voting in house, or to instruct their investment managers. Two main types of pension fund to do this are union organized Taft-Hartley plans, and state public pension plans. Under the amended National Labor Relations Act of 1935 §302(c)(5)(B) a union bargained plan has to be jointly managed by representatives of employers and employees.[209] Although many local pension funds are not consolidated and have had critical funding notices from the Department of Labor,[210] more funds with employee representation ensure that corporate voting rights are cast according to the preferences of their members. State public pensions are often larger, and have greater bargaining power to use on their members' behalf. State pension schemes invariably disclose the way trustees are selected. In 2005, on average more than a third of trustees were elected by employees or beneficiaries.[211] For example, the California Government Code §20090 requires that its public employee pension fund, CalPERS has 13 members on its board, 6 elected by employees and beneficiaries. However, only pension funds of sufficient size have acted to replace investment manager voting. Furthermore, no general legislation requires voting rights for employees in pension funds, despite homes for sale in scottsdale az 85257 proposals.[212] For example, the Workplace Democracy Act of 1999, sponsored by Bernie Sanders then in the US House of Representatives, would have required all single employer pension plans to have trustees appointed equally by employers and employee representatives.[205] There is, furthermore, currently no legislation to stop investment managers voting with other people's money as the Dodd-Frank Act of 2010 §957 banned broker-dealers

Источник: https://en.wikipedia.org/wiki/United_States_labor_law

Short-term disability insurance can be valuable to fill income gaps and cover expenses if you can’t temporarily earn employment income. 

The unexpected often happens in life, including not being able to work after an accident-related injury or an unforeseen illness. That’s where short-term disability insurance comes in.

What is short-term disability insurance?

Short-term disability insurance pays a percentage of your salary if you become temporarily disabled, meaning that you can’t work for a short period due to sickness or injury (excluding on-the-job injuries, which workers’ compensation insurance covers). 

A typical short-term disability insurance policy provides you with 60% to 70% of your pre-disability base salary.

The National Association of Insurance Commissioners estimates that these benefits generally last between three and six months. Most short-term disability insurance policies have a “cap,” meaning you receive a maximum benefit amount per month. 

Short-term disability insurance policies also have a limit on the amount of time you can receive benefits — up to two years, according to the Insurance Information Institute.

Short-term disability insurance is often part of an employer’s benefits package. Individual short-term coverage is also available, but it’s not nearly as common as group-based coverage. 

However, some states have their own short-term disability benefits programs, including California, Hawaii, New Jersey, New York and Rhode Island.

Key Takeaways

  • Short-term disability insurance helps you get a percentage of your salary if you become temporarily disabled.
  • You can stay afloat of your bills with a short-term disability policy that provides you 60-70% of what you were making before you became disabled.
  • To qualify for short-term disability insurance, you should have purchased the policy before you’re diagnosed with a condition that makes you eligible for coverage.
  • Short-term disability benefits are taxable, and employers receive a tax break when they pay in lieu of their employees.

What qualifies for short-term disability?

A short-term disability can prevent you from working for several weeks or months. This disability must be diagnosed by a healthcare provider and can include conditions, such as:

  • Pregnancy
  • Pregnancy complications
  • Digestive disorders
  • Back and joint disorders
  • A non-work-related injury
  • Recovery after surgery 
  • A short-term illness

Some policies’ coverage may exclude certain conditions, such as mental illness and drug addiction. Intentionally self-inflicted injuries, injuries that occurred in the act of committing a crime and driving under the influence also generally disqualify you from coverage.

Ty Stewart, CEO and president of Simple Life Insure, an independent brokerage firm based in San Diego, says some chronic conditions also may prevent you from qualifying for a policy.

“Preexisting conditions that force you to stop working, such as certain kinds of cancer, arthritis, and multiple sclerosis, are prime examples that may make you ineligible for coverage, or at least limit your benefits,” he says.

How does short-term disability insurance work?

Colleen Corrigan, a health & life insurance agent with Wallace & Turner Insurance, an independent insurance agency based in Springfield, OH, says disability insurance is a key part of a family’s financial planning.

“The purpose of disability coverage is to financially protect yourself and family when illness or injury occurs. Short-term disability coverage is a great idea for a young, growing family where the concern is replacing income in the event of maternity leave, illness or injury not related to a worksite accident.”

Generally, to be eligible for short-term disability insurance, you must have a policy before you’re diagnosed with a condition that would actually qualify you for coverage. For example, you typically can’t get short-term disability benefits to cover maternity leave if you’re already pregnant.

In most states, you must have worked for at least 30 days out of the last six months before you’re eligible for benefits. You also must provide medical records to confirm your condition. 

Corrigan adds that short-term policies also come with exclusion periods. An exclusion period is the waiting period before you can begin to receive benefits after becoming eligible for a short-term disability claim.

“Typically, a benefit begins after 0, 7 or 14 days of being declared unable to work. Make sure your family is prepared to cover household expenses for those exclusion periods,” she says.

There’s also a cap on the amount of benefits you can receive and a time limit on benefits. These vary by state. 

Short-term disability coverage not through an employer

While most people can get short-term disability through their employer, self-employed individuals or part-time workers will have to shop the market for an individual plan.

If you’re in this situation, you can work with an independent insurance agent to find coverage or use an online insurance broker to compare plans gmail com usa login prices. Some industry associations may offer group plans, which can be much more affordable than getting individual coverage. 

For example, the Freelancers Union, a non-profit organization that serves independent contractors in various industries, gives its 490,000 members the opportunity to apply for disability coverage through Guardian Life.

Stewart says because short-term policies often end up being less effective than long-term disability policies that can last for years, it’s often best to get employer-based coverage, if possible.

“Given that cost breakdown across the years, short-term policies tend to work best when they’re part of your employer’s offered benefits. Group short-term first community mortgage el paso tx premiums will be somewhat cheaper compared to what you’d pay if you found one individually, though you do sacrifice a little choice and policy individualization,” he says.

Does short-term disability insurance cover pregnancies? 

Short-term disability insurance typically covers you for pregnancy and childbirth if you buy the policy before you’re pregnant. A policy likely won’t cover a pregnancy if you try to buy it while pregnant. 

A short-term disability policy will often pay you for six weeks after a normal delivery and eight weeks for a C-section or twins and triplets. You may be able to get a longer benefit period for a pregnancy with complications. You could also start collecting while still pregnant depending on the policy. 

Read the policy’s fine print and ask the company if you have any questions about the benefit period. 

Is short-term disability taxable?

Whether short-term disability is taxable depends on who pays the premiums. Corrigan says it also depends on whether someone pays premiums on a pre-tax or post-tax basis.

“Short-term disability benefits are taxable if your employer pays the premiums. Employers receive a tax break when they pay on behalf of employees. It is a deductible business expense,” she says.

If an employee pays, short-term disability benefits may or may not be taxable depending on whether the employee chooses to make either pre- or post-tax payroll elections, Corrigan says. 

If the elections are pre-tax, the employee will have to pay taxes on these benefits. However, if they pay premiums with after-tax dollars, employees don’t have to pay taxes on the disability income they receive.

How to file a short-term disability claim

You can generally submit a claim as soon as seven days after you’ve stopped working. To file for short-term disability benefits, you’ll need to access your insurer’s claim form. You can obtain this form online from your insurer’s website or through your HR department if you have employer-based coverage.

Complete the entire form and have your employer fill out the relevant sections or provide a statement, if necessary. You’ll need to provide information such as:

  • The date you stopped working
  • Details on your medical condition or injury
  • When it occurred or was diagnosed 
  • Personal and contact information

Your doctor or healthcare provider also will need to sign a form confirming your condition, and you’ll need to sign a form to authorize the release of your medical records.

Once you’ve compiled all this information, you can submit the form by mail, online, or in some cases, by phone. 

After receiving your claim form, some insurers may request additional information to make an eligibility determination. Most insurers try to quickly make claims decisions — typically within one week of when they receive all your relevant documents. However, not having all your paperwork in order can delay the process, so it’s important that you contact your healthcare provider right away to complete and submit the physician’s statement insurers require and provide any other documentation your insurer asks for promptly.

How to apply for short-term disability insurance

Several insurers offer short-term disability coverage, including:

Corrigan says when shopping for a policy, it’s essential to read the fine print and consider your financial situation carefully.

“It is imperative an individual or family review any exclusions or preexisting condition clauses of a policy when comparing policy options,” she says. “Remember that prices are related to the amount of disability income. When shopping, look at your current expenses and project future expenses to make sure you apply for the appropriate dollar amount.”

While short-term disability can provide much-needed income over several weeks or months, Stewart says some people may be better served by long-term coverage.

“You must consider the importance of you as a breadwinner. If your income is the sole source of money in the household, then getting comprehensive coverage that lasts longer is in your best interests,” he says. “It just means peace of mind that you’ll have income across the years, not just a few months.”

Related Articles

Источник: https://www.insure.com/disability-insurance/short-term-disability.html

Life Insurance

Forms and Downloads

Download all VA life insurance program forms on this page:

For other (non-Insurance) Veterans Benefits forms, please use the VA Forms Page.

Note: Servicemembers' and Veterans' Group Life Insurance forms are created by the Office of Servicemembers' Group Life Insurance, which administers these programs for the Department of Veterans Affairs, and are made available on this web site as a courtesy to Servicemembers and Veterans. The forms provided on this page, although reviewed by VA, are not VA forms.

Downloading, Viewing, Filling Out and Printing Forms

View a Form

Left-click on the form title to view the form in your browser.

Save a Form

Right-click on the form title and choose "Save Target As" or "Save Link As" in the sub-menu.

Filling Out a Form

Many of our forms can be filled out using the Adobe Acrobat Reader. You may fill out the form online or download the form to your hard drive and fill it out from there.

Printing a Form

The form can then be printed out with your entries already completed.

Note: When printing out forms that you have filled out online, you must choose "Print As Image" in the print dialog window.

Servicemembers' Group Life Insurance (SGLI) Forms

Servicemembers' Group Life Insurance Family Coverage (FSGLI) Forms

Veterans' Group Life Insurance (VGLI) Forms

TSGLI and Conversion

Life Insurance Forms for Service-Disabled Veterans

All Other VA Life Insurance Forms

These forms are to be used for National Service Life Insurance only. They cannot be used for VA Compensation, VA Disability, Servicemembers' or Veterans' Group Life Insurance.

Document Upload - Did you know you can send your form to VA Life Insurance using our Document Upload web page? This is the fastest and most secure way to send your form.  Follow this link to upload documents.

Источник: https://www.benefits.va.gov/INSURANCE/resources-forms.asp

 

 

The Essential Guide to Group Long-Term Care Insurance

 

Shortcuts

Click the links below to go to a specific section 

Introduction
Why Employers should offer LTC Insurance as a benefit
How long-term care insurance works — and typical premiums
Standalone versus combination Life/LTC plans
Product Options — Group plans versus multi-life options
Recommendations for Employers with current in-force
Group LTC plans
Voluntary LTC plans and increasing enrollment
The tax treatment of LTC Insurance
Health Savings Accounts and LTC Insurance
Executive LTC plans
Is your company a good candidate for offering coverage?

  


Introduction 

Risks to financial future.png

Most employees planning for retirement have three major concerns - an unexpected health event, outliving their income, and passing away financially unprepared. Life Insurance programs and retirement savings programs such as 401(k)'s can address two of these major concerns. Many serious health events are covered by Medicare or supplemental private health insurance policies. However, there is a large gap in most employees personal planning - the possibility of needing help due to the effects of aging or extended healthcare.

Conditions such as Alzheimer's, Parkinson's Disease, Stroke, or simply just getting older can lead to needing help with care. Care can take place at home, an assisted living facility, or a nursing home - and it can be expensive! Since Medicare won't pay the costs, it has to be funded through savings, Medicaid, or long-term care insurance.

A long-term care insurance plan can't prevent Alzheimer's or other chronic conditions that result from disease or getting older. However, it can help the family tremendously at time of crisis, by offering access to a pool of money that can be used to pay for care. For employees who plan ahead and buy LTC coverage in their working years they can typically buy comprehensive long-term care (LTC) coverage for around $100 per month.And buying through an employer offer includes several advantages we will discuss in this report.

Whether you are an employer or a benefits professional, you may have heard that group LTC Insurance is no longer available to employer groups. That is not the case! Several LTC Insurance products are available in the marketplace, from traditional LTC coverage to policies that combine life insurance and long-term care insurance in one policy.  Read on to learn more!

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Why Employers should offer LTC insurance as a benefit

Long-term care insurance is a product that has been available for over 30 years, but only a small percentage of those who say they need coverage have a plan. One reason could be that a LTC Insurance plan is not available through their employer, despite the desire of employees to have this option.  In fact, according to 2017 survey of 1,200 adults conducted by Genworth Financial, four out of five Americans want the option of buying long term care insurance at work,  68% of survey respondents would prefer to purchase LTC Insurance through an employer compared to a financial professional.

57

 

There are many advantages to an employee buying LTC Insurance through the employer:   

  1. Premium Discounts: Insurers typically discount premiums compared to what is available in the individual market.  They can do this because offering LTC to a large number of buyers lowers their turbotax prepaid card balance acquistion cost. The discount can be extended to spouses and often extended family members. 
  2. Underwriting: Another advantage for employees is often streamlined underwriting. Most long-term care products include a health evaluation - important to keep the block of business stable and combat adverse selection by the employee.  However, many carriers will simplify the underwriting process on a group case with an open enrollment period which can allow more people to access plans.
  3. Unisex rate structure: Unlike products in the individual market, employer standalone long-term care plans offer the additional advantage of gender-neutral premium rates. Because they tend to live longer and need more long creditcard aanvragen rabobank care, woman pay more for LTC in the individual marketplace - but not in the employer market.
  4. Employee buying experience: Finally, an employee buying LTC Insurance through an employer group may have a better buying experience than someone buying in the individual marketplace. A robust education and awareness campaigns available can help employees make a thoughtful decision. The product offering has been vetted by the employer, and an employee may avoid a high-pressure sales approach.  Finally, these products offer convenient online enrollment.

Employers create thoughtful programs that help employees prepare for retirement, but the best plan can be devastated by a long-term care event. Offering employees long-term care coverage can help employees protect their retirement income and lifestyle.  Want to know how LTC Insurance works?  Keep reading!

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How long-term care insurance works

At it's basic level, the concept of LTC Insurance is just purchasing access to a pool of money when care is needed. Buyers select how big that pool of money is initially and decide whether the pool will automatically increase over time to keep up with inflation. LTC Insurance will pay for care in a variety of settings, based on the policyholders individual needs.  

 how it works

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Two types of group coverage - Standalone and Life/LTC combination 

Group Long-term care Insurance programs come in two flavors - traditional "standalone" health-based LTC Insurance and group life insurance that includes a long-term care insurance benefit. There are some differences in how these plans work,  both products will pay once policyholders need assistance with either two of six activities of daily living or have a cognitive impairment requiring supervision. The benefit received by the policyholder is typically received tax-free for expenses incurred for care giving. Both policies also allow for care to be received at home, in assisted living, or at a skilled nursing facility.

The difference is that plans that combine life insurance will pay a long-term care benefit by allowing early access to the death benefit. Some products also include an extension of benefits rider once the initial benefit has been exhausted. If no long term care is needed, then the plan will pay a life insurance benefit to a family beneficiary upon death. Let's look at the advantages and disadvantages of each approach:

Advantages of Standalone LTC

  • Best value in pure LTC Benefit . Similar to term life insurance,  Standalone LTC insurance provides the most LTC benefit per premium dollar 
  • Includes Inflation Protection Options. Inflation protection options are designed to keep pace with the cost of care over time.
  • More coverage options  A Standalone LTC policy can be designed to cover either the full cost of care in the future or a portion of the care cost.
  • HSA friendly.  Employees with Health Savings Accounts can use HSA account dollars to pay LTC premiums.  

 Challenges of Standalone LTC

  • Use it or Lose it. If a policyholder never needs Long-term care there is no return of  premium or cash value.
  • Limited Carrier Options. Due to historically low interest rates and widespread pricing errors on early LTC policies, many carriers have exited the market. As interset rates stabilize, it is expected new carriers will enter or re-enter the market.
  • Standalone LTC is not for everyone. With the average premium of Standalone LTC around $1,200 annually, this benefit tends to be more appealing to employees 45 - 65 with total household incomes of $100K or more.
  • Requires some medical Underwriting.  LTC Insurance provides substantial benefits and carriers are carefully underwriting coverage to avoid past mistakes. No Guarantee Issue options are available in the standalone LTC market, however there is worksite or streamlined underwriting not available in the individiual or retail market.
  Life/LTC Combination plan Advantages
  • Guaranteed benefits Either in the form of LTC benefits or a death benefit, this product will provide a benefit to each insured who maintains the coverage
  • Provides Life Insurance and LTC. Allows insured to cover two risks with one policy.
  • Robust Market of Highly Rated Carriers.
  • Guarantee and simplfied Issue  underwriting Available. For many products, 100% of eligible employees will be accepted up to the GI limit regardless of health. Employees may have the option to purchase coverage above the GI limit with medical underwriting.
  • Affordable plan designs Life with LTC allows for a broader range of benefits and premiums that fit many budgets and needs
 Challenges of Capital one auto finance account access with LTC Benefits
  • Limited Inflation Protection Options. With most products,  total and monthly benefit of Life with LTC remain level for the life of the policy subjecting plan participants to inflation risk.
  • Smokers will have higher rates than non-smokers
  • Higher premiums per Dollar of LTC Benefit. Due to the addition of Life Insurance, the cost is higher per dollar of LTC benefit
  • Smaller pool of LTC Benefits available.  The flipside of easier underwriting is small limits on the total pool of LTC benefits available.
  • Life Insurance benefit may be exhausted by an LTC insurance event.

 

 

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The Shift from "True Group" LTC Plans to Multi-Life

For many years the only way for employers to offer standalone long-term care insurance was using group plans - a master policy was issued to the employer and each employee was www prudential com gi employer forms certificates of coverage.  Participants in this market included Unum, John Hancock, Metlife, Prudential, CNA and Aetna. Plans were offered with guaranteed issue underwriting,  and premium rates were designed to remain level for the lifetime of the certificate holder.

Group coverage allowed for efficient census driven enrollment of employees, payroll deduction of premiums and coverage  based on the situs state of the employer.  Although nearly all group carriers no longer offer coverage to new employer groups, millions of American employees and retirees still have group LTC benefits through these insurers.

Now, most long-term care insurance sold at the employer is individual contracts - so-called 'mult-life' LTC.  Why did the market for standalone LTC move from group contracts to individual contracts issued at the worksite?  

  • Group carriers left the market. None of the true group carriers listed above are enrolling new groups, and some of them have stop accepting applications on existing groups as well. Because LTC Insurance was underwritten on a guaranteed issue basis and in most cases was a voluntary program adverse selection could occur as employees more likely to need care in the future may buy richer plans.  
  • Individual contracts allow for carriers to more effectively manage pricing and underwriting. By using individual pnc mailing address, carriers can ensure that the products they are placing are using the latest underwriting standards and pricing assumptions.  True group plans suffered from new entrants to the group that amazon fire stick discount code subject to older rates. For example, many older group plans only offered one type of benefit that may have paid only for professional home care.   Individual plans allow new employees or late entrants to the plan to get the latest product features and premium rates.
  • More flexibility in policy benefits:  Individual multi-life products offer more flexibility in up to date product features.  For example newer plans often can offer "cash alternatives' that can pay a benefit even if an at-home spouse is doing the caregiving - a feature often not avalble on "one-size fits all" group plans.
  • Technology allows for individual products to be enrolled online:  As mentioned above, an appeal of group products was a census driven enrollment - individual contracts years ago would have required pages of pioneer online banking ny applications.  Now, individual multi-life plans offer online applications.
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Recommendations for Employers with in-force Group LTC Plans

Over years numerous employers, both small and large, implemented group LTC plans for their employees. Some of the carriers that used to offer group coverage but are no longer writing new groups include Aetna, CNA, John Hancock, MedAmerica, MetLife, Prudential, and UNUM.

 These programs provide valuable benefits for employees and retirees, but they can present employers some challenges. Here are some of the issues: 

  1. Most of the legacy true group carriers no longer offer coverage to employees who didn't participate in the initial plan offering or new hires
  2. Numerous carriers have suspended new business sales or exited the marketplace
  3. Carriers are implementing in-force rate increases
  4. Older plans don't incorporate the latest LTC benefits, such as plans that pay for informal care at their home 

Employers in this position may need help with:

  1. Marketplace analysis (in-force coverage versus today's coverage)
  2. Help determine whether a new offering (and carrier) is suitable for employees
  3. Managing the communication of in-force rate increases
  4. Advising employees of their options for what to do when they receive a in-force premium increase 

  


 

Voluntary Long-term care insurance - an overview

More and more employers are offering voluntary insurance products including long-term care insurance. Long-term care insurance is unique in that it both augments a medical plan and also helps protect retiree savings and investments.

Once an employer has decided voluntary LTC fits into their benefits offering they'll need to work with their benefits specialist to design an effective communication and enrollment strategy. Here is a broad overview of the key aspects of a successful voluntary offering:

  1. Employer Support.  The important way to insure success is to have an engaged employer committed to a robust education campaign.  
  2. Email communications campaign.   A customized email campaign including personalized rate quotes and enrollment deadline reminders are critical for success.
  3. Live and pre-recorded webinars. While on-site meetings are still an effective way to educate employees, more and more employers, especially those with remote employees, are using webinars.
  4. On-line enrollment and education.  
  5. Call center support with LTC planning specialists
  6. Direct billing for employees. LTC Insurance is 100% portable and a product that employees and dependents take with them beyond their working years.  Payroll deduction is not necessary.
  7. Dual-enrollment strategy.  Due to the lack of awareness in LTC planning, most employees need time to determine if the benefit is right for them. An off-cycle enrollment can be complimented by offering coverage during an employer's core enrollment. This enables employees to better understand and plan for long-term care.

The above represents a list of the basics of enrollment success and each piece is part of the puzzle. In order to really encourage planning, read on.

 

Behavioral Finance and LTC Enrollments best practices

We all have unconscious and conscious biases that direct our decision making, especially with financial decisions such as retirement and healthcare planning. As someone who works in the financial services and insurance industry you've heard about how the evolving field of Behavioral Finance is changing the way benefits are communicated. Behavioral Finance is a relatively new field combines behavioral and cognitive psychological theory with conventional economics and finance to provide explanations for why people make irrational financial decisions.

As an example, for years 401(k) plans lacked participation that would have been expected with a benefit that often provided "free" money. The breakthrough in 401(k) participation came when more employers engaged in automatic enrollment for employees.  Much of the thinking behind these "nudges" became the basis for the field of behavioral finance, led by research from economists like Richard Thaler who won the Nobel Prize in 2017 for his work.

Although auto-enrollment for long-term care coverage would be ideal, not many employers would be willing to do this on a voluntary basis. However, there are several lessons that behavioral finance teaches us that can help increase participation plan in group LTC Insurance plans.  Here are some of the most powerful:

  • Keep choices as simple as possible. Long-term care insurance can be very complicated with many moving pieces.  However, a smart voluntary LTC program will pre-package two or three choices that employees can select from, without removing their ability to customize plans if they'd like.  
  • Use stories, not statistics. Statistics, such as the odds of going into a nursing home and how long care will last, are the typical starting point for education on LTC.  However, a more powerful approach is through stories.
  • Focus on the possible gain LTC will provide instead of the possible loss. Research has shown that, just like gamblers, we all want to win, and we don’t like to think about losing. People who are considering LTCi don’t want to think about loss when planning for care, such as how their retirement savings may be depleted. Instead, focus on the fact that a small LTCi premium gives the policyholder the possibility of a big payoff in benefits. For example, a $120 monthly premium could result in $250,000 to pay for high-quality care at home.
  • Focus on “now” benefits, not the future.  It’s incredibly difficult for people to imagine aging and needing help. Instead, focus on the “now” benefits of LTCi.  The now benefits are more difficult to quantify, but they can include peace of mind, streamlined underwriting and locking into a lower premium before a birthday.
  • Forced choosing.  LTC planning is easy to delay, and people need motivations to keep them from delaying this decision. One technique is to require an eligible employee to make a decision on learning more about group LTC coverage before being allowed to complete their open enrollment. 

 

Decision Support Technology in enrollments

Most of us need guidance when purchasing voluntary products. Traditionally the most used enrollment technique has been face to face enrollers meeting with employees at the worksite.  

Although this method continues to be effective and used in some voluntary long-term care settings, there are some challenges as well:

  • Scheduling without mandating meetings
  • The rise of a remote workforce
  • The majority of LTC sales are purchased by couples - and it is challenging to meet face to face with busy families today

The good news is there are alternatives. The rise in online buying has meant people feel comfortable researching and buying products online. Helpful online coaches can help guide a decision, from plan design options to applying for coverage. 

 

Enrollment best practices and craigslist dallas homes for rent by owner successful long-term care insurance enollment won't get 100% participation - but it should try and achieve 100% awareness.  A robust educational campaign to build awareness includes: 

  1. Emails communications that are well designed, educational, and allow for those not interested to opt out for additional reminders.
  2. Personalized rate quotes that help employees suitability of this benefit.
  3. Live and on-demand webinars 
  4. On site employee group meetings
  5. A call center of LTC planning specialists who can answer questions from employees and spouses
  6. On-line enrollment with live chat functionality

 timeline

 

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The tax treatment of LTC Insurance

With the passage of HIPAA in 1996, long-term care insurance was given similar tax treatment to health insurance - deductibles to businesses, premiums paid are not taxable to employees, and benefits for qualified long-term care services are income tax free. This unique and preferential tax-treatment is why LTC Insurance is an especially attractive group and executive benefit.   

 Here's an overview of the tax treatment of long-term care insurance:

 tax treatment

 

attained 

Benefits for LTC Insurance are received tax free - the only exception is for "cash" style benefits, which are tax-free up to a certain daily amount.

 Here's a helpful overview of the tax advantages of LTC Insurance, from the most favorable to the least.  

Hierarchy of tax preferenced methods.png

Note: This does not constitute tax advice. Nothing contained  on this webpage represents a guarantee that amounts paid for or received through LTC insurance are excludable from gross income for tax purposes. This material is provided for general informational purposes only. Consult with your LTCi advisor, attorney, accountant or tax advisor regarding tax implications of purchasing Long Term Care Red wing customer service to Top


Health Savings Accounts and LTC Insurance

The growth in Health Savings Accounts over the last several years has been tremendous.  More employers and employees are becoming comfortable with the plans and the flexibility they provide. 

HSA Growth.png

Long-term care insurance premiums don't qualify as Section 125 pre-tax eligible. However, as more employees get HSA's and build balances, they will find that long-term care insurance is a natural fit. Health Savings Accounts can be used to pay LTC insurance premiums for employees and their spouses up to the annual tax limits shown above. As an example, if a 61 year old employee and same aged spouse both have LTC Insurance plans with a combined annual premium of $5,000 they can take that amount out of their plan to pay for the premiums using "pre-tax" dollars. That's because the combined limit for couples between the ages of 61 and 70 is $8,320.

What if an employee isn't able to pay their full LTC insurance premium from their HSA due to the limit associated with their existing age?  The good news is that once they advance to an older age range, they can recoup the shortfall from previous years. For example, if an employee purchased LTC with a premium of $2,000/year when they were age 60, they would only be able to use $1,560 from their HSA and would need to pay the remaining $440 with after tax dollars. The next year, at age 61, their limit goes up to $4,160. They would be able to pay the entire $2,000 premium for that year from their HSA, as well as recoup the $440 they paid out of pocket the previous year.

Since employers often provide funds to HSA for employees, those employee who wish to purchase LTC Insurance have a nice pre-tax benefit.

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Executive LTC Plans

 Executives can benefit greatly from a long-term care insurance plan. Often executives are at an age in which they are dealing with aging relatives while paying for college costs for their own children - a "sandwich" that creates stress and anxiety.  Adding LTC coverage to an executives benefit offering has several advantages, including:

  • Tax incentives.  Employer-paid LTC San jose airport terminal b has the advantage of not being considered income to the employee, and benefits are received tax-free. Premiums are also deductible to companies - for more details take a look at the tax rules for LTC Insurance (provide link) Rules for hybrid life/LTC plans follow similar rules to employer paid life insurance.
  • Ability to "carve-out" class of employees. Unlike many other employer provided benefits subject to non-discrimination (ERISA) rules, this strategy enables employers to ‘carve out’ and create a class is capital one mobile app down select employees to offer long term care insurance. It works well for closely held family businesses.  It is suggested that an employer use a category such as years of service, job title, compensation or other criteria to create class and offer coverage. Often employers create a corporate resolution that spells out eligibility for the program.
  • Streamlined Underwriting. Buying LTCI for an executive class means they may have access to special underwriting concessions. And, when they leave their employer or retire these plans are 100% portable.
  • Limited premium plans.  Some LTC Insurance carriers offer accelerated premium plans such as 10 premium payments or pay to age 65. These programs all for an executive to leave or retire with a fully paid up LTC Insurance plan.  Some plans also offer a return of premium feature, so that a premature death can lead to the corporation recovering premiums paid. Limited pay plans are available for both traditional LTC and linked life/ltc plans.
  • Planning for extended family. Depending on the plan, discounts on the program may be available for extended family members - including spouses, adult age children, parents and grandparents.

 

 

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Should Your Company Offer Long-Term Care Insurance?

Offering Long-Term Care Insurance in the workplace provides numerous benefits to employees. Here are a few:

  • Timely and valuable education on the need for LTC planning. Getting old and planning for care is hard!  People have a hard time envisioning being dependent in the future. Education can have an impact - just has employer education has helped with retirement planning.
  • Addresses a significant “gap” in the employee’s financial plan and helps protect their 401(k) . The biggest risk to a well thought out retirement plan is an unplanned health or long-term care need. 
  • Simplified underwriting. Employees can often get easier underwriting than what they would be able to get on the individual marketplace. In some cases, plans may offer guaranteed issue coverage.  
  • Unisex rates and group discounts. An employer based LTC plan provides gender neutral multi-life rates that are generally lower than comparable coverage in the individual market. The rates in the individual market will be based on age, marital status, and state of residence.
  • Ability to carve out select classes of employees. LTC Insurance can be offered in creative ways. For example, When is the next canadian holiday executives could be offered a high benefit plan paid by the employer. Other executives and managers can buy meaningful standalone coverage, while younger employees can look at payroll deduct life insurance with LTC riders. 
  • Benefits are generally received income tax-free.  
  • Employees can pay for LTC Insurance through an HSA

 

Finally, employees offered a long-term care plan buy earlier than the general buyers. That's critical because buying earlier www prudential com gi employer forms multiple benefits. LTC Insurance can make a huge difference in www prudential com gi employer forms families life.

  

 

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Источник: https://www.ltcipartners.com/the-essential-guide-to-group-long-term-care-insurance

Frequently Asked Questions

The fee-for-service plan allows you to go to any dentist of your choice. You or your dentist must then submit a claim form to Blue Cross for reimbursement. The Plan will pay according to its established fee schedule. The difference between the amount the provider bills and the amount the Plan pays is your responsibility.

You can download a Dental Plan claim form. Note: It is very important that you how to determine mortgage payments formula the correct form best store cards for rebuilding credit the Plan you are in, as failure to do so will delay the processing of your claim and reimbursement, if applicable.

The Blue Cross Dental Managed Network Program, which is an HMO, requires you to enroll in the program and remain enrolled for a minimum of one year. Once you are enrolled, you may choose your dentist from a panel of participating dentists and then must use only that dentist for you and your family, if applicable. Covered services will be paid in full, and you will not have any out-of-pocket expense. If you use a dentist outside of the program, you will not be covered for those services.

To enroll in the Blue Cross Dental Managed Network Program, contact the Members’ Records Department at (718) 591-2000, Extension 2491.

The DDS, Inc. program allows you to enroll at any time during the year by calling DDS, Inc. at (800) 255-5681. The DDS, Inc. network is a closed panel of participating dentists who agree to accept the Plan’s allowances for covered services as payment in full. Once you have selected your DDS provider, you may make an appointment. No claim forms are required.

Источник: https://www.jibei.org/faqs-home/

Who should make the claim?

Employees: you do not need to download any forms from our website; your employer will provide you with any claim forms you need to fill in and tell you how, when and where to return them.

Employers: as the policyholder you need to submit the Group Income Protection claim. You can access all the information you need to do this, including downloadable claim forms on this page.

How to make your claim

You can submit your claim to us on paper, by email or simply by calling us on 01306 873243.

You can download all the forms you and your employee need to fill in for your claim from the table, below:

If you require any assistance completing the claim forms or would prefer these to be sent via post or completed telephonically please let us know by emailing [email protected]num.co.uk

Where to send your forms

Email: [email protected] 

Post:
Unum
Claims Department
Milton Court
Dorking
Surrey
RH4 3LZ

Call: 01306 873243 if you have any queries or would like to submit a claim by phone.

When to submit the forms

You can submit a claim as soon as you anticipate a problem, but please make sure you submit the forms no later than:

  • Up to 13-week deferred period: within 6 weeks of your employee’s absence
  • More than 13-week deferred period: within 10 weeks of your employee’s absence

We’ll do everything we can to ensure we’re ready to pay benefit when your sick pay scheme stops.

To help us progress your claim as quickly as possible, please ask your employee to provide any medical evidence that relates to their period of absence along with their claim form, this could include:

  • Medical reports from consultants
  • Prescriptions
  • Photographs of medicine labels
  • Virtual GP notes
  • GP information accessed via an online portal

Managing your claim

The onset of an illness or injury is traumatic enough for everyone involved without having to deal with unwanted and unnecessary administration.

To help support you, you will be looked after by a dedicated Claims Management Specialist who will stay with the claim, providing much-needed continuity and a partner who knows your business.

Your Claims Management Specialist will guide you through the assessment and keep you in the loop - giving regular updates to the policyholder and asking for clarification when we need it. If you have any questions at any time, you can contact your Claims Management Specialist directly by telephone, email or letter, whichever you prefer. 


Claim payment

Paying benefit to your employees when it’s needed and for as long as it’s needed is vital. We will deliver on that commitment for as long as the claims lasts. Once a claim decision has been made, we’ll call you to confirm the payments we’ll be making and talk about ongoing claims management plans.

If we don’t think the evidence supports paying a claim, we will take care to explain the reasons why – quickly and clearly.

Rehabilitation service

From day one of your employee's absence, our Rehabilitation Services team can provide guidance on managing their absence and supporting your employee back to work. Simply call our Rehabilitation Helpline on 01306 646 001, or email them at [email protected]

 


Источник: https://www.unum.co.uk/claims/group-income-protection

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