Informed Employer: Bonuses, the FLSA and Henry Ford Informed Employer: Bonuses, the FLSA and Henry Ford

Informed Employer: Bonuses, the FLSA and Henry Ford

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Companies Deal with Employees Wanting to Watch Olympics at Work
The 2016 Rio Olympics pose both a unique challenge and opportunity to U.S. employers, with data suggesting that 37 percent of the working population will consider tuning in during working hours. A recent online survey of over 2,000 American adults by the Workforce Institute at Kronos, a workforce management technology company, in conjunction with Harris Polls, found that 77 percent of respondents who intend to watch this year's Games believe it's appropriate to do so at work.
(Source: Fast Company, 2016-08-12) Read the full article
Corporate America Freezing Defined Benefit Pension Plans
Defined benefit pension plans may be disappearing from corporate America, but it's not happening quickly enough for some finance chiefs. CFO Journal reported earlier this year that the share of Fortune 500 companies that have frozen their corporate pensions nearly doubled to 39 percent in 2015 from 21 percent in 2009, according to Willis Towers Watson, a risk advisor and benefits management firm.
(Source: The Wall Street Journal, 2016-08-10) Read the full article
Employers Make Changes as They Expect Health Costs to Rise 6%
Big employers expect health costs to continue rising by about six percent in 2017, a moderate increase compared with historical trends that nevertheless far outpaces growth in the economy, two new surveys show. Employers are changing tactics to address the trend, slowing the shift to worker cost-sharing and instead offering video or telephone links to doctors, scrutinizing specialty-drug costs and steering patients to hospitals with records of lower costs and better results.
(Source: Detroit News, 2016-08-14) Read the full article
Some Small Firms Did Drop Health Coverage After ACA, Study Shows
In response to the controversial Obamacare’s play-or-pay requirement, many employers said they’d opt to go the pay route. New research shows how many firms actually followed through on that claim.
(Source: HR Morning, 2016-08-12) Read the full article
Growing Number of Small and Midsize Firms Self-Insuring Employees
Instead of buying a health insurance policy to cover their workers, a growing number of small and midsized companies are opting to pay their employees' medical claims directly, a potentially riskier practice financially called self-insuring, a recent study found. Between 2013 and 2015, the proportion of midsized companies with 100 to 499 employees that were self-insured increased 19 percent to 30.1 percent, according to the analysis published in July by the Employee Benefit Research Institute.
(Source: Kaiser Health News, 2016-08-12) Read the full article
Firms Offer Family-Friendly Benefits to Attract Younger Workers
From extended paid maternity leave to breast milk shipping on the company's tab, employers nationwide are embracing new and innovative family-friendly benefits. To attract and retain top talent, many employers are expanding their employee benefits lineup to include a variety of family-friendly perks, according to a new report from the International Foundation of Employee Benefit Plans.
(Source: The Huffington Post, 2016-08-09) Read the full article
Workers Not Waiting Around as Employers Make Hiring Decisions
It's another sign that America's job market is hot. Workers are in no mood to stick around too long while businesses make up their mind about hiring them.
(Source: Bloomberg, 2016-08-11) Read the full article
More Americans Choosing to Continue Working into Senior Years
Older people are staying in the work force longer. A recent Pew Research Center analysis of federal employment data found that in May 2000, 12.8 percent of those older than 65 held a job, but by this May the number had climbed substantially, to 18.8 percent.
(Source: The New York Times, 2016-08-01) Read the full article
 
 
 
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Bonuses, the FLSA and Henry Ford


Paul Bittner

Historians often talk about the radical idea of Henry Ford: The $5-a-day wage. This wage was about twice the going rate for manufacturing work at the time. Mr. Ford realized that it was cheaper to double wages than it was to keep up with the high cost of turnover in his workforce.
 
The truth is, though, that the $5-a-day wage wasn’t really $5 a day. The day’s wage was $2.34 and the other $2.66 was in the form of a bonus. And, many forget that the bonus was contingent upon the automaker’s internal review of the employees’ lifestyles to ensure that they were doing things the “American Way”—something that definitely wouldn’t pass legal muster today. But that would not be the only contemporary problem for the American Way bonus.

Read more here.

 

It’s Time to Play the Match Game!


Ann Stewart

Not the 1970’s celebrity game show hosted by Gene Rayburn. The Centers for Medicare and Medicaid Services (CMS) has a different "Match Game" that it is inviting employers to play. This Data Match program is not new (the law was enacted in 1989), but the CMS has coordinated its efforts with the Internal Revenue Service and the Social Security Administration in an effort to increase recovery under Medicare Secondary Payer rules. The goal of this Data Match game is to identify situations where another payer should be primary to Medicare.

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