Compliance Stuff

On those (hopefully) rare occasions when a supervisor or other exempt employee must be suspended without pay for disciplinary reasons, employers should take special care to ensure that the unpaid suspension does not result in loss of the employee’s exempt status. Loss of exempt status could be costly to an employer, who may then be required to pay overtime to an employee who is typically not entitled to overtime wages. Generally, exempt employees must be paid on a “salary basis,” meaning they are regularly paid a predetermined amount that cannot be reduced because of the quality or quantity of the employee’s work . However, the Fair Labor Standards Act (FLSA) allows employers to deduct pay of exempt employees in limited circumstances, including for unpaid disciplinary suspensions . Employers can impose an unpaid disciplinary suspension without risking loss of an employee’s exempt status only if the following criteria are met: The suspension is for one or more  full days ; The suspe...

Contributions Employers can contribute to their employees’ 401(k) accounts in two main ways:  matching contributions  and nonelective contributions. Matching contributions are tied to employee deferrals—employers contribute only when employees do. In contrast, nonelective contributions are made to eligible employees regardless of whether they contribute to the plan themselves. Understanding nonelective contributions is critical for both employers and employees. For employers, they offer flexible tools to meet plan goals—whether avoiding annual testing, maximizing owner contributions, rewarding employees, or fixing compliance issues. For employees, they can mean guaranteed retirement savings even without personal deferrals. This guide breaks down the three major types of nonelective contributions—safe harbor, profit sharing, and corrective (QNECs)—and when each may be appropriate. What Are 401(k) Nonelective Contributions? Nonelective contributions are employer contributions ma...

 ERISA: Over the Hill and Still Thriving Throughout 2024, we have honored ERISA's 50th year by highlighting the major concepts of this foundational federal benefits law in our Benefits Boost! series. To round out the year, we highlight our Boosts and Gallagher's ERISA resources to help you comply. Is your benefits subject to ERISA? Reiew our step-by-step too:  How to Determine if Your Benefits are Subject to ERISA. Learn to apply the ERISA exemptions properly in ERISA Exemptions: A "Payroll Practice" and ERISA Exemption #2: Voluntary Plan Safe Harbor. Participant disclosures  are the core of ERISA. Verify that you satisfy the requirements in Summarizing Delivery Deadlines. Participants have the right to request documents as well.  Stay in compliance with an often-overlooked plan obligation in The Dos and Dont's to Document Requests. Annual reporting is required and mistakes can be costly: EBSA Searching for Missed Form 5500s. Stay audit ready  with DOL Audits: S...

  On November 13, 2024, the National Labor Relations Board (NLRB) issued a d ecision prohibiting the practice of holding mandatory employee meetings to discuss the employer’s views on unionization . The decision follows through on the NLRB general counsel’s attack on so-called “captive audience meetings,” an important tool for employers to educate workers about the potential workplace implications of unionization. Quick Hits The NLRB issued a decision prohibiting employers from holding mandatory employee informational meetings to discuss their views on unionization. The decision o verrules a seventy-six-year-old Board precedent that had allowed such meetings. The NLRB outlined a “safe harbor” for employers to hold voluntary meeting s on unionization with employees. The Board held that an employer interferes with employees’ organizing rights under Section 7 of the National Labor Relations Act (NLRA) when it “compels employees to attend a captive-audience meeting on pain of discipl...