Whether you’re an employer who wants to educate employees on the difference between a Flexible Spending Account (FSA) and Health Savings Account (HSA) or an employee considering the pros and cons of these accounts, it’s crucial to understand them.
Both employee benefits offer tax advantages, as the contributions are made on a pre-tax basis. However, HSAs and FSAs each provide unique benefits. So, we’ve put together a simple guide explaining FSAs, HSAs, options, and who would benefit from each.
What is a Flexible Spending Account (FSA)?
An FSA allows employees to set aside pre-tax money for certain health care and dependent care expenses not covered by insurance. The election amount is divided into allotments based on the number of pay dates in the plan year. The portion of the employee’s paycheck is deposited into their FSA account every pay period.
Types of FSAs
Health Care FSA (HCFSA)
Most common type of FSA, which employees can use for out-of-pocket medical expenses (e.g., copays, prescriptions, deductibles, etc.)
Employee has access to total funds on the first day of the plan year, like a line of credit
Cannot be combined with an HSA
Limited Purpose FSA (LPFSA)
Works like an HCFSA, but funds can only be used for vision and dental expenses
Can also be combined with an HSA
Dependent Care FSA (DCFSA)
Allows employees to pay for employment-related dependent care services (e.g., daycare, preschool, summer camps, non-employer-sponsored before or after school programs, etc.)
Funds may be used for expenses for children under age 13 or individuals who are unable to care for themselves and live with the account holder more than half the year
Can only use funds that have already been contributed through payroll deductions
Maximum contribution limits are set by statute and not subject to cost of living adjustments (COLAs)
FSA Features
Must be established by the employer
Typically funded entirely by the employee’s payroll deductions, but an employer may contribute
Maximum annual contribution limit with annual COLAs
May be used on any qualified medical care expenses, not including health insurance premiums (see IRS Topic 502)
Unused funds are typically “use it or lose it”*
Tied to employment and are not maintained if the employee separates from the employer
FSA expenses must be backed up—so keep those receipts!
*Note that employers have the option to provide a plan that includes a two-and-a-half-month grace period to spend remaining FSA funds OR to allow participants to carry over unused funds at the end of the plan year, up to a limit set by the IRS. Your plan can elect either the grace period or rollover option, but not both.
Below are the FSA contribution limits for Health FSAs for 2021 and the adjustments recently announced for 2022.
Health FSAs & LPFSAs
2022
2021
Maximum salary contribution limit
$2,850
$2,750
Maximum rollover limit
$570
$550
As for DCFSAs, the American Rescue Plan Act (ARPA) increased contribution limits for 2021, applicable to the plan year starting after December 31, 2020, and before January 1, 2022. The 2022 DCFSA maximum will return to normal limit amounts.
Dependent Care FSAs
2022
2021
Maximum salary contribution limit (single taxpayers and married couples filing jointly)
$5,000
$5,000 (but increased to $10,500 due to ARPA)
Maximum salary contribution limit (married couples filing separately)
Allow employees enrolled in health or dependent care FSAs to rollover unspent balances from a plan year ending in 2020 to a plan year ending in 2021, and to rollover funds from a plan year ending in 2021 to a plan year ending in 2022. Employers can choose to provide either or neither of these carryover extensions.
Extend the grace period for spending unused FSA balances to 12 months for plan years ending in 2020 or 2021.
Allow employees who stopped participating in a health FSA during 2020 or 2021 to use unspent balances through the end of the plan year in which their participation ended, including any extended grace periods.
Who Could Benefit from an FSA?
While everyone’s needs vary, FSAs are often a great fit for individuals or families who have frequent doctor visits and medical expenses. They can be especially beneficial for those with ongoing medical conditions.
An FSA is also a good supplemental option for those with a low-deductible health plan, making them ineligible for an HSA that requires a high-deductible health plan.
Some people invest in both an LPFSA (e.g., those with higher vision and/or dental costs) and an HSA. This ensures that they can cover expenses like glasses and dental work while enjoying substantial savings in an HSA for future medical needs.
What is a Health Savings Account (HSA)?
An HSA is an investment account available only to those enrolled in a high-deductible health plan (HDHP) and under the age of 65. Employees can use these funds to pay for their plan deductible and/or qualified medical expenses that do not count toward their deductible.
HSA Features
Employer can offer an HSA or individuals can start an account on their own
Puts a portion of the employee’s premium toward their HSA, with the option to make additional pre-tax contributions
Can only spend money you’ve already saved
Some HSAs even earn interest
Remaining balance rolls over from year to year—the money is always yours to keep!
Withdrawals can be used for non-medical expenses but are subject to income tax (if you are under age 65, there is an additional 10% tax penalty)
Once you are 65, you can cash your HSA and invest the funds in your IRA
Who Could Benefit from an HSA?
An HSA is a cost-effective benefit for healthy (often young) individuals who do not have a lot of medical expenses. It’s a solid choice for those who only visit their doctor for annual check-ups and preventive care. Of course, it is also a smart option for those nearing retirement, as they can use the funds to offset the costs of medical care after retirement.
Overall, people with a low-cost HDHP, a requirement to qualify for an HSA, are good candidates for HSA plans.
HSA vs. FSA: What to Offer
Many employers offer at least an HSA or FSA plan to give employees the option to prepare for and supplement their medical costs. If you are considering adding one or both accounts to your benefits package but have more questions, contact BlueLion today at 603-818-4131 or info@bluelionllc.com! Our HR specialists will help you navigate and develop your HSA and/or FSA plan.
The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.
What is the difference between paid time off (PTO), paid sick leave, paid vacation, and paid personal leave? And how do you know which type of paid leave program you should offer?
Don’t worry—it doesn’t have to be too complicated. On a high level, employers have two options: Either institute an overarching PTO policy or individual policies for sick leave, vacation, and personal time. Whatever you choose, you need to ensure that:
You’re adhering to paid leave and paid sick leave laws in your jurisdiction, and
You communicate all leave policies clearly to employees.
Read on for clarification on:
Paid leave laws
PTO policies
Separate paid leave policies: Sick leave, vacation, and personal time
Paid Leave Requirements
While there are no federal, state, or local laws requiring employers to provide paid vacation, some states require employers to offer paid leave that workers can use for any reason, including vacation. For example, Maine organizations with more than 10 employees must provide paid time off that can be used for any reason.
On the other hand, Massachusetts has an extensive earned sick leave law stating that most employees must receive one hour of paid sick leave for every 30 hours worked. Learn the basics of the Massachusetts sick leave law and ensure you follow these specific requirements about cap and rollover allowances, rehiring an employee, notices, documentation, and prohibited practices.
Some jurisdictions also mandate employers to provide paid sick leave to employees and allow them to use sick leave for other relatives, such as parents, children, spouses, or registered domestic partners. While the FLSA does not require a paid leave plan, you may not deduct the pay of exempt employees for absences due to sickness or disability unless:
You have a legitimate PTO plan that can be used for these absences, and
Exempt employees are either not yet eligible or have used up their benefits under the plan.
PTO Policies
Many employers use one blanket PTO policy, meaning employees use one bank of hours or days to take time off for any reason. This system usually combines vacation time, personal days, and sick time into a single time pool. Using a PTO policy:
Mitigates the need to track specific reasons/types of paid leave (make sure you comply with any state or local recordkeeping requirements).
Offers more flexibility to employees who can use their leave based on needs.
Provides a single, more straightforward policy for employers with employees in multiple jurisdictions (make sure it meets the requirements of the most generous paid sick leave law).
Types of PTO Accrual
Companies can use one of three types of PTO accrual policies:
Bank Policy: Employees can use PTO from a single bank of hours or days set throughout the year. For example, an employer may offer 15 days or 120 hours of PTO to use for any purpose. Organizations typically have a new hire period before the employee can use their time off.
Accrual Policy: Employees earn a certain amount of time off based on how much time they work. For example, an employee may accrue five hours of PTO for every 40 hours worked. You can also cap annual PTO accrual. Some employers even allow employees to advance a certain amount of hours (just be sure to outline the rules and limits in your policy).
Open Policy: A growing number of companies are allowing employees to either accrue unlimited PTO or take off an unlimited amount of time without the need for accrual. You might include a rule in your policy stating employees need to request time off a certain number of weeks in advance.
If your organization follows a bank or accrual policy, you may also be wondering about rollover. How much should you allow? Are “use it or lose it” policies legal? Learn more about PTO rollover best practices.
Separate Paid Leave Policies
Other employers break down their paid leave into three categories:
Sick leave
Personal time
Vacation time
In this system, employers develop separate policies and banks of time for each type of leave. For example, a company may give employees 15 days for vacation, seven sick days, and four personal days. Let’s look at what these cover more closely.
Sick Leave
Sick leave is paid time off specifically for employees to address health concerns or miss work due to illness or injury. Sick time can also be used to care for an ill or injured family member and can be planned or unplanned. Implementing separate sick leave:
Encourages employees to prioritize their health.
Eliminates the concern of dipping into their vacation or personal time.
Mitigates hesitation about taking vacations or mental health days.
Fosters honesty from employees about how they are using their time.
Discourages staff from coming to work sick and possibly putting others at risk.
Additionally, sick leave laws usually don’t require employers to pay for unused sick leave when an employee departs the company.
If your company does provide separate sick time, be wary of employees with more health issues who may spend more sick days than the average employee and feel pressured to use their vacation or personal time for health purposes.
Vacation Time
As the name suggests, vacation time is typically planned and used for:
Rest and relaxation
Travel
Personal matters
Employees usually schedule vacation time in advance, but some employers are flexible and allow staff to use it for unexpected absences when necessary.
Personal Time
Finally, there’s personal time. Generally used for any reason, personal time:
Can be planned or unplanned.
Supplements vacation and sick leave and is typically used for short-term absences.
Additional Paid Leave Policy Questions
Employers who opt for general PTO must ensure their policies and procedures meet paid sick leave laws. The following are two common questions from those who offer PTO.
Does my PTO policy cover my paid sick leave requirements?
According to many paid sick leave laws, your PTO policy is sufficient as long as it:
Allows employees to use the same amount of leave for the same purposes and under the same conditions as required by the sick leave law; and
Satisfies the accrual, rollover, and use requirements of the sick leave law
Always check your state and local laws to ensure compliance.
What if an employee who requests sick leave has already used up their PTO for the year? Do I have to offer them additional paid leave?
Many paid sick leave laws do not require you to provide additional leave so long as your PTO policy meets the requirements above. This employee may qualify for sick leave (typically unpaid) under a different law, such as the Family and Medical Leave Act (FMLA). Again, be sure to check your state and local laws to ensure compliance.
To avoid this issue from occurring frequently, help employees manage their time off by clearly communicating the requirements of your PTO policy, what they can use it for, how it accrues, and their available balances.
Whether you need to make sure your current paid leave program is legally compliant, or you need to develop an entirely new policy, our HR specialists can help! Contact BlueLion today at info@bluelionllc.com or 603-818-4131, and we’ll be happy to walk you through it.
The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.
As a new or growing business owner, you may be surprised to learn that no federal or state laws mandate employers to have an employee handbook. But as we often say, just because you’re not required to do something doesn’t mean you should overlook it!
Instituting an employee handbook is always a good idea and best practice for employers of all sizes and across all industries. This crucial document helps keep things clean and organized and also reduces risk. Read on to find out why your organization needs a handbook and how to create one.
Why Your Company Needs an Employee Handbook
Having a thorough, up-to-date handbook can save time and stress and mitigate your company’s liability.
Delivering Required Notices
Many laws require employers to notify employees of certain workplace rights in writing, such as equal employment opportunity (EEO) statements. A handbook serves as an organized, easily accessible document containing all of these mandatory written notices. Plus, it saves your HR team the hassle of tracking whether or not each employee receives every individual notice.
Saving Time
An employee handbook answers a lot of routine questions and concerns that employees would normally have, meaning HR won’t have to answer the same basic questions and requests over and over again.
Protecting the Organization
Outdated or inaccurate policies can be as risky as having no policies! Ensuring all policies in your handbook are legally compliant and updated regularly allows you to protect your organization if your policies or practices are challenged in court.
How to Create an Employee Handbook
Are you developing a new employee handbook? Or does your current document need an overhaul? Follow these seven steps.
1. Review and update all current company policies
Start by reviewing all of your policies or analyzing gaps where new policies may be necessary. Once you develop or make changes to individual policies, always have your legal counsel review them.
The Society of Human Resource Management (SHRM) encourages employers to remember the National Labor Relations Board (NLRB) guidance when creating new policies. Avoid being too broad when it comes to confidentiality and conduct rules. Specifically, steer clear of:
Language preventing employees from discussing protected concerted activities (e.g., wages): Instead of stating, “Employees may not discuss customer or employee information outside of work, including phone numbers and addresses,” you might write, “Misuse or unauthorized disclosure of confidential information not otherwise available to persons or firms outside [Company Name] is cause for disciplinary action, including termination.”
Conduct rules that are too general: Instead of “Be respectful of others and the company” (which could be interpreted as restricting criticism of the company, another protected concerted activity), your handbook could state, “Being insubordinate, threatening, intimidating, or disrespectful to or assaulting a manager, supervisor, co-worker, customer, or vendor will result in discipline.”
Another area for employers to tread lightly is their social media policies, which should set similar expectations without interfering with a worker’s protected right to concerted activity.
2. Outline the employee handbook
Determine the essential items and information that should go in your employee handbook. These generally include:
Mission statement
EEO statement
Contractual disclaimer
At-will employment statement (where permitted)
Purpose of the handbook
Brief company background
Also consider federal and state laws on:
Family and Medical Leave Act (FMLA)
COBRA
Equal Employment Opportunity Commission (EEOC)
Anti-discrimination laws
Americans with Disabilities Act (ADA)
Fair Labor Standards Act (FLSA)
Omitting these required written notices from the handbook could lead to confusion and noncompliance. Including them all in one document will ensure compliance.
3. Summarize each policy and procedure
Include a summarized version of each policy and procedure in a style that all employees can easily read and understand without legal language. Put these summaries before the specific rules or policies for each topic.
4. Make it a team effort
Organize and review the employee handbook with your HR department and/or a project team. Getting a few different perspectives will help ensure the document is accurate and easy to understand.
5. Consult your attorney
Always have your company’s legal team review the complete handbook to ensure all policies and practices are compliant with employment laws and do not contain any statements that may create contractual agreements.
6. Distribute handbooks
Establish a routine and method for distributing the handbook to all team members. An ideal time to do this is during new employee orientation. You can also conduct a company-wide manual distribution whenever your handbook is updated.
Of course, employers can also use electronic methods, such as email or the company intranet. Just note that you must provide physical copies to employees who don’t have internet access or when an employee requests it. Electronic delivery is convenient when you make changes and need to share the new version with everyone.
7. Update your handbook regularly
Appoint a person (typically an HR professional) to be in charge of updating the handbook when employment laws or internal policies change. A best practice is to perform a complete employee handbook review and update annually to keep up with the state, local, and federal laws. This yearly assessment is also vital to ensure that all policies remain relevant and adhered to throughout the organization.
Develop & Review Your Employee Handbook
Are you ready to develop or update your employee handbook but feeling overwhelmed by the process? Partner with a team of HR professionals who have experience working with organizations in various industries and locations. We’ll take the handbook stress off your plate and ensure both your employees and your company are protected. Contact BlueLion at 603-818-4131 or info@bluelionllc.com to find out how we can help today!
The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.
The concept of a safety committee is not always taken seriously by many organizations. But whether or not your company is required to have one, it is critical to creating a safe and healthy workplace.
Also known as a joint loss management committee (JLMC), it is also an important part of an overarching safety program. Fortunately, forming an effective committee can be easy and significantly reduce your company’s risks and costs.
What is a workplace safety committee?
A safety committee consists of employees who assess potential and existing hazards in the workplace and focus on injury prevention. This group is responsible for communicating about these issues and coordinating safety efforts by:
Encouraging colleagues to follow safety protocols.
Recommending best practices to management.
Are all employers required to have one?
Not necessarily, but just because you’re not mandated to have a JLMC doesn’t mean you should skip it. The Occupational Safety and Health Administration (OSHA) does not have a federal requirement; however, the agency encourages organizations to form safety committees, and many states require them.
For example, New Hampshire requires that all employers with 15 or more employees must have a safety program and committee, and Vermont requires them for high hazard/high risk workplaces. On the other hand, Alabama requires employers to form one if requested to do so by an employee.
Contact your regional OSHA office to confirm your state’s laws.
Why is it important?
First, safety committees help create a safer work environment for everyone by:
Representing all functions or departments to provide a comprehensive view of safety requirements and foresee all potential problems.
Serving as an easily approachable group for safety or health complaints, suggestions, and concerns.
Collaborating with management to effectively carry out safety training activities.
Of course, a safety committee can also offer financial benefits by reducing employee injuries, which lowers workers’ compensation premiums. In some states, employers may even receive a discount on their workers’ compensation premiums if they have a JLMC in place. Overall, it helps boost productivity and makes compliance easier.
What are a safety committee’s responsibilities?
Specifics may vary based on your state, industry, and company size, but some standard roles include:
Establishing practices and procedures to improve operational safety.
Developing safety training programs.
Educating employees on workplace safety.
Discussing safety concerns with employees and addressing their concerns.
Investigating all potential and actual safety events and maintaining an updated report.
Writing and updating safety manuals.
Conducting regular inspections and resolving problems that pose safety risks.
Reviewing claim summaries.
Developing policies for dispute resolutions.
Creating employee safety checklists.
Advocating for employee safety.
Conveying safety concerns and resolutions between employees and upper management.
Creating and leading emergency drills.
Facilitating compliance with safety-related state and federal workplace laws.
How can employers form a safety committee?
Whether your company needs to establish a safety committee due to requirements or simply because you’re ready to create and even safer workplace, you’ll need to:
Research requirements: Find out what regulations your organization needs to follow to ensure your committee is compliant. Be sure to review any existing safety guidelines before forming a committee.
Set a schedule: The committee should meet regularly, ideally every month. Schedule all meetings at least a year in advance. Set expectations for collaboration and professionalism.
Create a meeting agenda: Important items to document include the safety committee bylaws, procedures, goals, and purpose. Bylaws should note specifics like the date and time of the regular meetings.
Document everything: Your bylaws should also include a requirement that minutes be taken during all meetings. This ensures proof that safety standards have been implemented and risks identified.
Selecting Safety Committee Members
First, appoint a safety committee director. This individual should:
Have a knack for motivating employees at every level
Understand all of the company’s potential safety issues
You might also consider co-captain: One who acts as leader and spokesperson and one who organizes and drives progress.
The committee itself should include a mix of individuals dedicated to keeping employees safe and reducing or eliminating workplace hazards. An influential safety committee is composed of employees and managers from different departments and backgrounds, ensuring the group represents all workers. The number of members may also vary depending on state requirements.
Let’s use New Hampshire as an example again. The Granite State requires an equal number of employer and employee representatives on the committee. Employees with 20 or fewer employees must have at least two members, while those with more than 20 must have at least four members. The employee representatives must be selected by employees or by the union in the case of union workers.
Ideally, members should rotate in and out of the committee and between roles. Of course, if you have someone who excels in a specific role that no one else wants, let them keep it!
Standard Meeting Agenda
When you’re ready to have your first safety committee meeting, safety consulting firm Safety by Design recommends the following general agenda:
Attendance
Review minutes of last meeting
Review recent incident reports
Discuss current inspection reports
Check status of goals and assignments
This agenda will ensure you address any health and safety issues and deal with them promptly.
Does your organization need more guidance in forming an effective safety committee? BlueLion will be happy to help you protect your company and employees. Contact us at 603-818-4131 or info@bluelionllc.com to discuss health and safety solutions today.
The information on this website, including its newsletters, is not, nor is it intended to be, legal advice. You should contact an attorney or HR specialist for advice on your individual situation.
Most employers have experienced the highly competitive talent market. As qualified professionals become increasingly difficult to find, organizations must think beyond traditional workplace benefits.
The best candidates and employees desire much more than the standard health, retirement, and salary benefits. They are searching for an employer that shows that they value their team’s time, well-being, and happiness outside of the workplace. Companies that want to stand out and recruit and retain top talent need to implement non-traditional employee benefits.
BlueLion recently had the pleasure of hosting a webinar along with several organizations and experts who shared 21 unique benefits employers can offer staff. Watch the webinar below, or read on for our complete guide with all of our ideas and resources below.
1. Pledge 1%
As we at BlueLion believe, benefits don’t just have to be something you give to your employees. Think about things related to your workplace culture that will help you attract and retain great talent, such as showing that your company cares about its community.
BlueLion founders Toni and Alison have always been passionate about giving back, so they decided to Pledge 1% from the time they started the business. Pledge 1% is a corporate philanthropy program that allows businesses and organizations to give 1% of their equity, time, product, and profit to the causes and nonprofits of their choice.
Companies can choose just one or a combination of the four pledge types, and can always add pledge types over time. Learn more at pledge1percent.org.
2. Corporate Gifting with THNKS
Everyone knows that sometimes, little gestures can go a long way. Corporate gifting app THNKS lets you show tokens of gratitude via small gifts you can send to clients, colleagues, or prospects. These small tokens of appreciation show employees that you recognize their hard work, motivating them and boosting engagement and productivity.
The app is an excellent solution for employers and managers to give one-off thanks when a staff member goes above and beyond or crushes it on a project. For example, say Bob in accounting helped you out with that urgent critical report this week. You can quickly and easily send him a cup of coffee for two.
3. No-Meeting Days
Employees are bogged down with meetings. We’re either prepping for one, sitting through one, or recapping from one.
In a 2019 survey from Workfront, U.S. workers said they spend only 40% of their workday on their primary tasks due to emails and wasteful meetings that hamper productivity.
An up-and-coming perk that is quickly becoming one of our favorites is the no-meeting day. We’ve seen several clients start blocking off one day a week where the entire company cannot book meetings. This day is intended for people to focus solely on getting their work done.
Best yet? This cost-free benefit doesn’t affect your business’s bottom line!
4. Holistic Wellness Solutions
As holistic wellness practitioner Shae Sterrett points out, today’s workforce (i.e., Millennials and Gen Z) are focused on their wellness and finding workplaces that will support it. Employers that foster a culture of mental, emotional, energetic, and physical health will attract and retain the most effective, happy employees. Not to mention, every $1 invested on employee wellness yields about $3 to $4 in company savings!
Shae explains that investing in workplace wellness can help reduce:
Medical costs
Employee turnover
Sick leave and absenteeism
Stress
And it can help employers:
Attract and retain quality talent
Improve employee relationships, communication, and collaboration
Improve productivity
Enhance employee creativity and innovation
By supporting your team’s self-care, you encourage them to take care of themselves and show up better in all aspects of their life. This is especially important as we continue to deal with the COVID-19 situation, which has made it challenging to separate work life from home and personal life.
Consider partnering with an expert who offers on-site and virtual wellness workshops and programs. For example, Shae provides yoga, meditation, mindfulness, Reiki, sound healing, and bodywork services in various formats. Learn more about Shae and her services at shaesterrett.com.
5. Will Preparation Services
Consider bringing in a will and estate preparation service if you’re looking to step outside the box with your workplace benefits. Not many employers offer this, so it’s an opportunity to provide something different.
You can partner with a service provider who comes in and presents to your team. While you don’t necessarily have to pay for the service, you can bring in a professional to educate employees on its importance. Will preparation is something many people don’t think or talk about, often because they don’t have time. By bringing in an expert, you give staff time to consider and discuss an important life matter.
For a reliable will and estate planner, we highly recommend Meghan Martucci of Feniger & Uliaz.
6. ICHRA
The individual coverage health reimbursement arrangement (ICHRA) is a unique benefit for employers of all sizes. ICHRA allows businesses, nonprofits, churches, and other employers to reimburse employees tax-free for individual health insurance premiums and other medical expenses.
Under the program, employees pick their plan through the Individual Marketplace, and the employer then pays a portion. ICHRA is a great option for companies struggling to decide whether or not to offer insurance because it gives employers more cost control since the reimbursement limits are predetermined. There are even companies that facilitate the benefit for employers. Learn more about ICHRA.
7. Aflac
On the same topic of additional health benefits is Aflac. Chances are you’ve heard of the voluntary employee benefits company, but do you know just how much they offer?
Aflac’s coverage complements the standard health plan employers provide their staff. This includes:
Costs not covered by traditional health insurance: ER visits, urgent care visits, deductibles ($3,000-$7,000), out-of-pocket maximum ($7,500-$14,000), accident, hospital confinement, and critical illness
Income replacement while recovering from injury, illness, or critical illness
Financial protection for an employee’s family if the employee passes away
As Voluntary Employee Benefits Advisor Gerrell Smith notes, today’s employees want more than basic health insurance. Offering Aflac helps attract and retain top talent by providing a more comprehensive benefits package. Plus, their plans are very affordable for employees, as low as $7 to $28 per week, or $360 to $1,500 per year.
Another employee perk you may not have thought of is CPR training. We’ve partnered with Life Safety Institute, an organization that will come onsite to train your team on:
CPR
First aid
Basic life support
Advanced cardiovascular life support
Pediatric advanced life support
These classes equip employees with the knowledge to provide first aid and CPR both at and outside of work.
9. Healthy Office Snacking
Are you thinking about bringing snacks into your workplace? Many snack clubs and subscriptions make it easy for employers to keep healthy snacks stocked at the office. Be sure to research a mix of brands, as nutritional value, allowance for employee input, and schedule options vary. A few ideas include:
SnackNation: Healthy snack options at a low price.
NatureBox: Unlimited monthly snacks and priced per employee
Eat Club: Choose between a catered snack pantry or let employees create their own snack boxes for the week.
To take it a step further than healthy snacks, some employers partner with nutritionists to implement a complete program for employees.
Jennifer Wall of Nutrition in Motion (NIM) says common feedback from employees is that wellness feels fragmented. She explains that companies just getting started in this area often have one-off engagements, which don’t give employees a roadmap to how each event fits into their overall wellness.
NIM provides continuous engagement and customized solutions for all areas, creating a cohesive feeling to help employees feel more engaged in the process. They also take the burden and stress off of employers and their HR departments that comes along with promoting and engaging employees in a health and nutrition program. NIM streamlines the process of enrollment, integration with your company’s existing resources, and individual customization to create a cohesive experience for your team.
Employers and employees can choose from a NIM’s wide range of services and programs. Their affordable pricing often includes insurance coverage, too! Offering a nutrition program can be easy and cost-effective, even boosting employees’ morale and productivity.
11. Employee Assistance Program
An employee assistance program (EAP) is another resource employers can provide to help staff with a broad range of life matters, including mental health, substance abuse, grief counseling, marital issues, financial struggles, and more.
Although employees may be wary about EAPs, they can provide valuable support, and counseling is always 100% confidential. And they’re often included in your short-term disability or healthcare plans, so start by checking with your existing providers. This cost-effective resource could pay off significantly in the long run by giving employees the support they need.
12. Home Cleaning Services
Another critical area of worker benefits is time-saving. Time is a top concern among today’s workforce. Many feel that they are losing significant time with family and the other joys in life between their work and home responsibilities. There has been a mindset shift toward people searching for employers that value their time and allow for more work-life balance.
One way to do this is by offering home cleaning services. You don’t necessarily have to provide every month for all employees. Instead, use it as a gift for employee anniversaries or a reward for someone who did an exceptional job. Look into cleaning companies like:
Similar to housekeeping, dry cleaning and laundry services are other enticing perks for employees. After all, the average household spends about $500 on dry cleaning per year, according to industry reports. And an employee may spend eight hours a month on laundry.
If you are considering providing laundry, a professional laundromat costs $2 or less per load or about $50 per week. Many services even offer pickup and dropoff services, sometimes for free, depending on your volume of business. So even if you don’t pay for the full laundry service, you could offer the convenience of the pickup/dropoff to save employees more time—potentially at no cost to your company. Check out a few local laundromats, like:
Vitto’s Organic Dry Cleaning
Cleary Cleaning
Kelley Street Tailor Shop and Laundromat
Wash Street
Garden Island Laundromat
14. Pet Insurance
Today’s workers love their pets and consider them family, so it’s probably not surprising to learn that pet insurance is becoming the most requested employee benefit. And since two-thirds of your employees have at least one pet, you might want to consider adding it to your benefits package. Offering pet insurance helps employers:
Attract top talent
Improve culture
Increase retention
Pet insurance companies like Figo cover standard preventative, accidents, and illnesses. They can also cover extras like vacation cancellation and unfortunate incidents (i.e., your dog gets out and damages someone else’s property). Through their Pet Cloud app, they can even create a company-sponsored site specifically for your employees. The best part: The average cost is just $1.25 per day per pet!
To learn more about Figo and their top-rated pet insurance, contact Lisa Steadman of Archie Jennings Insurance.
15. Food/Grocery Delivery Services
Speaking of time, who actually enjoys spending theirs at the grocery store? The Time Use Institute states that each food shopping trip takes about 41 minutes, with an average of 1.5 visits per week.
Consider educating your team about available grocery delivery services like InstaCart, Amazon Fresh/Pantry, or Fresh Direct. You don’t necessarily have to cover this entire service, but you could buy the first delivery for those who are hesitant to change their grocery routine. Additionally, grocery delivery adds another level of comfort during COVID-19 by limiting in-person interactions.
In the same vein, you could also offer employees gift cards to DoorDash or GrubHub so they could enjoy the occasional easy meal nights and avoid cooking.
16. Mobile Auto Service
Did you know there are auto maintenance shops that come to you? That means they pick up your car, do the work, and bring it back—all without you having to go anywhere.
Some mobile auto repair shops partner with local companies to provide convenient services to employees, such as Manchester’s Bob & Sons Automotive. Bob & Sons doesn’t charge you anything because they get a captive audience: Your whole staff!
Even if you’re outside the service area, they might consider making an exception based on the size of your business. It never hurts to ask!
17. Career Coaching
Lea Stabler of Pathways Navigation says that although people often think the conversation about career is about moving on to a new organization or department, that’s not necessarily the case. Instead, the current talent pool is searching for non-traditional benefits that address a person’s well-being.
That’s why Lea has developed programs to help professionals overcome chaos, stress and anxiety, creativity, and productivity issues. He believes there are different pathways to getting jobs done, so he offers both individual coaching and structured group coaching. Lea can devise solutions for professionals who are ready for that next transition. And by providing career coaching, employers can demonstrate to employees that they care about their growth and development.
18. Travel Planning
Going on vacation is very stressful. That may sound counterproductive at first, but think about it: You have to worry about where you go, what you do, how you pay for it, and coming back to work with everything piled up. Unfortunately, this means many workers don’t enjoy taking vacation.
You can reduce that stress by giving employees access to a travel planner. Most don’t cost you or the employee anything because they get paid via commissions from hotels or outfitters. As an employee perk, it shows you want staff to enjoy their vacation fully.
19. Mortgage Specialist & Realtor
People stress about things like bills and home buying but often don’t know where to start or have time to research and find a reliable professional. Ask a mortgage specialist and/or realtor to come in and talk about home-related topics with employees. They can:
Educate people on getting qualified to purchase or sell their home
Review employees’ finances and assist them with improving their credit score
Assist employees in building personal wealth
Now is a prime time to refinance and save, so many of your team members could benefit. This is another way to show employees you care about their well-being outside of work at no cost to your company.
20. Banking
Many people stick with their bank, not knowing what their other options are. Besides, researching new banks is another hassle many don’t feel like dealing with. But you could offer employees a way to save more and make their bank accounts work for them by partnering with a great bank.
For example, Bar Harbor Bank & Trust provides an array of options and benefits for employees, including:
$100 cash offer to open checking account
Savings and Savings Transfer Club Account
Dedicated representative to work with your company and employees
Free health savings accounts for employees with high deductible health plans
Free educational seminars for employees customizable for individual or group settings
To learn more about Bar Harbor’s exceptional products and services, contact Tina Brown.
21. Local Business Discounts
Last but not least: Offer local business discounts! This is a great way to connect with and support local businesses. Reach out to those in your area to see if they’ll offer corporate discounts for your employees (e.g., a gym, restaurant, or shop). They are a captive audience in your community who would likely appreciate having your staff’s business.
A couple of other ideas include connecting with:
High schools to purchase their sports teams’ discount cards for your team
Local attractions like ski resorts for employees to enjoy with their families
Whew, that was a lot of ideas and resources! Remember, you don’t have to implement too many at once. We recommend adding at least one new perk to your employees benefits package every year until your company can afford to do more. As many of these ideas prove, you don’t necessarily have to increase your costs to attract and retain stellar people!
If you need help developing a benefits package that helps you stand out in the employer pool, contact BlueLion today at 603-818-4131 or info@bluelionllc.com to learn how we can help.
The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.
One of the most important things an employer can do is guarantee the safety of their employees. By doing so, they also protect their business or organization. This is why it’s crucial for employers to know and understand workplace safety requirements set by the Occupational Safety and Health Administration (OSHA).
OSHA administers and enforces regulations intended to protect workers. To be OSHA compliant, employers must follow the agency’s list of standards, in addition to laws and requirements for certain industries. You should also find out if your state has established specific workplace safety and health requirements.
In our quick guide on OSHA compliance, we’re sharing the agency’s list of standards along with their COVID-19 guidance for employers and employees. Plus, we’ve included more helpful blog posts regarding workplace and COVID-19 safety to help you keep every aspect of your business safe and healthy.
17 OSHA Compliance Standards
As part of their OSHA responsibility to provide a safe and healthful workplace, employers must:
Provide a workplace free from serious recognized hazards and follow the standards, rules, and regulations issued under the OSH Act.
Assess workplace conditions to ensure they follow applicable OSHA standards.
Supply workers with safe tools and equipment and properly maintain this equipment.
Use color codes, posters, labels, or signs to warn employees of potential hazards.
Establish or update operating procedures and inform employees to ensure they follow health and safety requirements.
Train workers on safety in a language and vocabulary they can understand.
Develop and implement a written hazard communication program, train employees on the hazards they are exposed to and proper precautions, and make a copy of safety data sheets readily available (applicable only to employers with hazardous chemicals in the workplace).
Provide medical examinations and training when required by OSHA standards.
Post the OSHA poster (or the state-plan equivalent) in a prominent location within the workplace to ensure workers understand their rights and responsibilities.
Report all work-related fatalities within 8 hours and all work-related inpatient hospitalizations, amputations, and losses of an eye within 24 hours to their local OSHA office. Employers can call OSHA’s toll-free number: 1-800-321-6742.
Record all work-related injuries and illnesses (unless they have 10 or fewer employees or qualify as an exempt low-hazard employer).
Give employees, former employees, and their representatives access to the Log of Work-Related Injuries and Illnesses.
Provide employee medical records and exposure records to employees and their representatives.
Give the OSHA compliance officer the names of authorized employee representatives who may accompany the compliance officer during an inspection.
According to the Whistleblower Protection Program, not punish, discriminate, or retaliate against employees who file complaints.
Post OSHA citations at or around the area in violation and keep citations posted until they have corrected the violation, or for three working days, whichever is longer.
Correct OSHA violations by the deadline set in the citation issued by the inspector. Employers must then submit required abatement verification documents and post abatement verification documents or tags in the applicable work area.
Additional ways to keep your company and employees safe include developing a safety and health program and forming a safety committee. Some states, like New Hampshire, may even require employers to do this.
Whether or not your organization is required to, having a safety program and committee in place can significantly reduce the number and severity of workplace injuries. Of course, these precautions can also reduce insurance and workers’ compensation costs and improve productivity.
As the ongoing COVID-19 pandemic continues to evolve, it is also essential for employers to take as many precautions as possible to keep workers safe. OSHA has released and continually updates its recommendations for preventing COVID-19 from spreading in the workplace.
OSHA emphasizes that vaccination is the most effective way to protect against severe illness or death from COVID-19. They encourage employers to:
Offer PTO to workers to get vaccinated and recover from any side effects.
Consider working with local public health authorities to provide vaccinations for unvaccinated workers in the workplace.
Adopt policies that require workers to get vaccinated or to receive regular COVID-19 testing (and continue masking and physical distancing) if they remain unvaccinated.
Instruct any infected workers, unvaccinated workers who have had close contact with someone who tested positive for COVID-19, and all workers with symptoms to stay home.
Educate and train workers on COVID-19 policies and procedures.
Maintain ventilation systems.
Perform routine cleaning and disinfection.
When it comes to recommendations for fully vaccinated people, OSHA has aligned their guidance with the CDC, which advises:
Wearing a mask in public indoor settings in areas of substantial or high transmission;
Wearing a mask regardless of the level of transmission, especially for individuals who are at risk or have someone in their household who is at increased risk or not fully vaccinated; and
Getting tested within 3-5 days of known exposure to someone with suspected or confirmed COVID-19 and wearing a mask in public indoor settings for 14 days after exposure or until a negative test result.
Whether you have specific questions or concerns or need assistance developing safety programs and policies, BlueLion will help you keep your employees and company safe. Contact our HR specialists at 603-818-4131 or info@bluelionllc.com today to learn how we can help.
The information on this website, including its newsletters, is not, nor is it intended to be, legal advice. You should contact an attorney or HR specialist for advice on your individual situation.
When you consider payroll deductions, taxes and health insurance premiums may be the first things that come to mind.
Of course, many employers also wonder about wage deductions for losses, damages, and mistakes. Then there are items like uniforms and voluntary deductions—how exactly do you handle them?
What else are employers permitted (or not) to withhold? Wage deduction laws vary by state, so you must understand your local laws and regulations before taking anything from employee paychecks. Read on for payroll deduction guidelines for Maine, Massachusetts, and New Hampshire employers.
Maine Payroll Deductions
Maine law states that an employer may not withhold or deduct an employee’s wages for:
Cash shortages
Inventory shortages
Dishonored checks
Dishonored credit cards
Any type of damage to the employer’s property
Any merchandise purchased by a customer
An employer can only deduct or withhold an employee’s wages for:
Taxes and garnishments
Insurance premiums, 401(k) contributions, or another benefit plan that the employee has agreed to pay via written authorization.
The payment of a loan, debt, or advance made to the employee.
The payment of any merchandise the employee voluntarily purchased from the employer.
Rent, light, or water expense of a company-owned house or building.
Additionally, Maine employers cannot require employees to pay for:
Required uniforms (i.e., shirts or other items of clothing with the company name or logo).
Equipment or tools necessary for the job.
Cleaning and maintenance of uniforms.
However, an employer and employee can enter into a signed agreement with the employee to deduct the cost of uniform cleaning and maintenance from their wages.
Massachusetts Payroll Deductions
Massachusetts employers may only make payroll deductions when the employee owes the employer “a clear and established debt.” Employers cannot deduct wages for:
Cash shortages
Inventory shortages
Dishonored checks
Dishonored credit cards
Any type of damage to the employer’s property
Any merchandise purchased by a customer
Permitted payroll deductions include:
Income taxes
Health insurance premiums
Labor, trade union, or craft dues and obligations
Meals and lodging, subject to specific restrictions. No deduction for meals may exceed the actual cost to the employer.
Unlike Maine, the Bay State does not prohibit employers from requiring employees to pay for a uniform. However, an employer cannot:
Require an employee to put down a deposit for a required uniform unless approved by the Mass. Department of Labor and Workforce Development.
Force an employee to pay for the maintenance of uniforms requiring dry cleaning, commercial laundering, or other special treatment if the cost reduces the employee’s effective rate below minimum wage. (This restriction does not apply to “wash and wear” uniforms.)
New Hampshire Payroll Deductions
New Hampshire law does not allow employers to deduct any of the following from an employee’s wages:
Cash shortages
Breakage, damage, or loss of the employer’s property
Dishonored or returned checks
Required uniforms (i.e., clothing with a company logo or distinctive design)
Granite State employers can only withhold or deduct an employee’s wages if:
The deduction is required by state or federal law.
The employee has consented in writing to any of the following deductions:
Union dues
Health, welfare, pension, and apprenticeship fund contributions
Voluntary contributions to charities
Housing and utilities
Payments into savings funds held by someone other than the employer
Voluntary rental fees for non-required clothing
Voluntary cleaning of uniforms and non-required clothing
Voluntary childcare fees to a licensed childcare provider
Required clothing not covered by the definition of a uniform worn by one or more employees and serving as a means of identification or distinction
Voluntary legal plans and identity theft plans
For hospital employees only, pharmaceutical items, gift shop, and cafeteria items purchased at a hospital by hospital employees
Contributions to a political action committee
The employee works for a charitable organization and authorized the withholding of wages as a voluntary contribution to the charity where they work.
The employee has authorized the deduction in writing for the employee’s benefit for any legal purpose that the employer and employee mutually agree on that offers no financial advantage to the employer. Employers must keep a record of the deductions and may not use the withholding to offset payments used to purchase items required to perform the employee’s job.
It is a legal deduction for medical, surgical, or hospital insurance, offers no financial benefit to the employer, and is clearly recorded.
The deduction is for voluntary installment payments of legitimate loans made by the employer to the employee, which must be recorded in a document including:
The time the payments will begin and end.
The amount to be deducted.
A specific agreement regarding whether the employer can deduct any amount outstanding from final wages at the termination of employment.
The deduction is for voluntary payments for the recovery of an accidental overpayment of wages, provided that:
The recovery is agreed to in writing
The deduction for the overpayment begins on the pay period following the date
The written agreement specifies:
The start and end dates for the recovery of the overpayment.
The amount to be deducted, which must be agreed upon by the employer and the employee but must never be more than 20% of the employee’s gross pay in any pay period.
A specific agreement stating if the employer is allowed to deduct any amount outstanding from final wages at the termination of employment.
Voluntary tuition repayment for non-required educational costs that the employer pays to an educational institution on behalf of the employee. The specific deduction must be authorized in a written document that states:
The payment start and end dates
The deduction amounts
A specific agreement stating if the employer is allowed to deduct any amount outstanding from final wages at the termination of employment
Voluntary payments for the employee’s use of a health or fitness facility that the employer sponsors for the benefit of its employees and that is located within the employer’s facility or workplace, or operated by a private health and fitness facility that offers discounted memberships of 50% or more to all employees of the employer, as outlined in a document that includes:
The payment start and end dates
The deduction amounts
A specific agreement stating if the employer is allowed to deduct any amount outstanding from final wages at the termination of employment
Note that employers are also limited in what deductions they can withhold from a salaried employee’s pay. You must pay a salaried employee their full salary for any period in which they perform any work, regardless of the number of days or hours worked, except for the following instances:
Any pay period in which the employee performs no work.
When an employee receives a disciplinary suspension without pay under the Fair Labor Standards Act for any portion of a pay period, written notification is given to the employee at least one pay period in advance, and the suspension is in full-day increments.
Any portion of a workday or pay period for leave taken under the Family and Medical Leave Act.
If the salaried employee, voluntarily and without coercion, requests time off without pay for any portion of a pay period after having exhausted all other earned leave time to which they are entitled.
If the salaried employee is either hired after the beginning of a pay period, terminates the employment of their own accord, or is fired for cause, which would allow the employer to prorate the employee’s salary.
Do you have questions about your state’s payroll deduction laws? Our human resources specialists will ensure your employees’ withholdings are compliant with state and federal law. Contact us today to discover how we can help your organization at 603-818-4131 or info@bluelionllc.com.
The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.
There are many labor laws Massachusetts employers must be aware of, such as the state’s specific sick leave laws. Then there are the Massachusetts Blue Laws, which contain specific requirements regarding time and pay for employees who work on Sundays or certain holidays.
So, how do you know if your business must comply with the Blue Laws? And if so, how do you compensate employees accordingly? Read on as we review these laws, who has to comply, which holidays are covered, and premium pay rates.
What are the Massachusetts Blue Laws?
The Massachusetts Blue Laws regulate the hours of operation for certain retail and non-retail businesses and require some employers to pay extra compensation (i.e., “premium pay”) on Sundays and some legal holidays.
The Attorney General’s Office enforces these laws. The Department of Labor Standards (DLS) approves local permits allowing businesses to open on Sundays and select legal holidays, when they normally could not open for some or all hours on those days. There are 55 exemptions that allow work on Sundays and legal holidays (e.g., restaurants, pharmacies, and hotels).
Operating on Sundays
Retail Establishments
Retailers can open at any time on Sunday without approval and permit requirements. Most retailers who employ more than seven workers, including the owner, must pay employees at least a premium rate on Sundays. You do not have to pay this higher rate to bona fide executive, administrative, or professional employees.
The current premium pay rates are:
2021: 1.2x regular rate
2022: 1.1x regular rate
Note that the premium pay rate requirement will be phased out by January 1, 2023.
Voluntariness of Employment
The voluntary employment requirement mandates that most retailers cannot require employees to work on Sunday, nor can they discipline or retaliate against staff in any way for refusing to work on a Sunday.
Non-retail Establishments
Non-retail businesses can only operate on Sundays if they fall within one of the 55 exemptions.
All businesses can request a permit for work on Sundays from the police department of the city or town where the company is located. Permits are issued only for “necessary work or labor which could not be performed on any other day without serious suffering, loss, damage, or public inconvenience, or which could not be performed on any other day without delay to military defense work.”
Manufacturers
While Massachusetts manufacturers are not allowed to open on Sundays, they can petition the Attorney General for a temporary exemption from the restriction. The law also states that manufacturers can operate on Sundays without a permit when “manufacturing processes which for technical reasons require continuous operations.”
Operating on Holidays
Retail Establishments
On unrestricted holidays, Massachusetts retail businesses can operate without a permit and do not need to provide premium pay. Voluntariness of employment requirements do not apply. Unrestricted holidays include:
Martin Luther King Jr. Day
Presidents’ Day
Evacuation Day
Patriots’ Day
Bunker Hill Day
On partially restricted holidays, retailers may operate without a permit but must provide premium pay and abide by the voluntariness of employment requirements. These holidays include:
New Year’s Day
Memorial Day*
Juneteenth Independence Day*
Independence Day*
Labor Day*
Columbus Day after 12:00 p.m.
Veterans Day after 1:00 p.m.
*Premium pay is required only for retailers with more than seven employees, including the owner.
The current premium pay rates are:
2021: 1.2x regular rate (New Year’s Day only 1.5x regular rate)
2022: 1.1x regular rate
The holiday premium pay rates will also be eliminated as of January 1, 2023.
For restricted holidays, the DLS may issue a statewide approval of permits. This means retailers may perform work if they have obtained a local police permit. Employers must provide premium pay and follow the voluntariness of employment requirements.
Restricted holidays include:
Columbus Day before 12:00 p.m.
Veterans Day before 1:00 p.m.
Thanksgiving Day
Christmas Day
Non-retail Establishments
The Massachusetts Blue Laws state that most non-retail businesses may operate on the following legal holidays, without permit or restrictions:
New Year’s Day
Martin Luther King Jr. Day
Presidents’ Day
Evacuation Day
Patriots’ Day
Bunker Hill Day
Juneteenth Independence Day
Columbus Day after 12:00 p.m.
Veterans Day after 1:00 p.m.
Most non-retail employers in the Bay State cannot operate on any other legal holidays unless they fit one of the state’s exemptions.
Manufacturers
Manufacturers may operate on unrestricted holidays without a permit and do not have to provide premium pay. These holidays include:
New Year’s Day
Martin Luther King Jr. Day
Presidents’ Day
Evacuation Day
Patriots’ Day
Bunker Hill Day
Juneteenth Independence Day
Columbus Day after 12:00 p.m.
Veterans Day after 1:00 p.m.
Manufacturers may not operate on the restricted holidays below unless granted a permit by local police:
Memorial Day
Independence Day
Labor Day
Columbus Day before 12:00 p.m.
Veterans Day before 1:00 p.m.
Thanksgiving Day
Christmas Day
Overall, manufacturers cannot force employees to work on holidays unless the work “is both absolutely necessary and can lawfully be performed on Sunday.”
Comply with Massachusetts Blue Laws
To ensure you comply with the Massachusetts Blue Laws as they apply to your business, you must know how your company is classified. It’s also crucial that you keep diligent records of employees’ time worked and denote their Sunday and holiday time and pay.
If you are a Massachusetts employer with questions about the Blue Laws and want to ensure you are compensating your employees appropriately, contact BlueLion today at 603-818-4131 or info@bluelionllc.com. Our human resources experts know the ins and outs of Massachusetts labor laws and will help you review your business practices and policies.
The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.
When it comes to paid leave, the Bay State has some very specific laws in place. We went over the basics about the Massachusetts sick leave law previously, where you can get a refresher on what the law is, who is covered, and permitted sick time uses.
This time, we’re breaking down several other key requirements that employers must be aware of to ensure they comply. After all, you never know when unique and delicate situations might arise. What happens to a rehired employee’s sick leave? How do you manage a request from an employee who is a victim of domestic violence?
Keep reading for the Massachusetts earned sick time laws regarding:
Cap and rollover allowances
Rehiring employees
Employer notice requirement
Employee notice requirement
Requesting sick leave documentation
Prohibited practices
1. Massachusetts Sick Leave Cap & Rollover Allowances
Massachusetts sick leave laws do not mean employers must provide unlimited sick time, and employers can set a cap at 40 hours per benefit year and pause further accrual until they use some of their sick leave. While employers are only required to provide 40 hours of sick time per benefit year, they can offer a more generous policy with more sick leave.
Employees who have accrued both paid and unpaid sick leave due to changes in their employer’s size above or below 10 employees may choose to use one or a combination of the two. And when it comes to sick leave rollover, employers must also allow employees to carry up to 40 hours of accrued sick leave from one benefit year to the next.
2. Rehiring Employees & Managing Their Sick Leave Balance
Did you recently rehire a team member after a few weeks or months? Don’t forget about their sick leave balance. If you rehire an employee:
Within four months after a separation from employment, you must reinstate all of their previously accrued sick leave and make it available for use on their first day of rehire.
Between four and 12 months after separation, you must reinstate all of their previously accrued sick leave and make it available for use on their first day of rehire IF they had accrued 10 or more hours before leaving.
3. Employer Notice Requirement
Covered employers must post notice of Massachusetts’ sick leave laws in a conspicuous place accessible to employees in every location where eligible employees work. Find more guidance on where to post labor law posters.
Employers must also provide either a hard or electronic copy of the notice to all eligible employees or include the policy on earned sick time (or your company’s allowable substitute paid leave policy) in their employee handbook.
Additionally, employers must provide written notice to all eligible employees at least 30 days in advance if their future accrued sick leave will be changing from paid to unpaid or unpaid to paid because of a change in the employer’s size.
4. Employee Notice Requirement
Employers may require employees to provide up to seven days’ notice of sick leave when the need is known that far in advance. If that is not possible, you can require notice of the employee’s need for sick time as soon as reasonable, given the circumstances. This notice requirement must be in writing, so include it in your sick leave policy.
If a worker intends to take sick leave for multiple days, you can require them to submit the expected duration of their leave. If their leave duration is unknown, you can request daily updates of their status (provided by the employee, a spouse, an adult family member, or another responsible party) unless unreasonable.
Employers may establish a reasonable sick leave notification system for staff to use. Still, it must be consistent with their typical communication methods for requesting leave and absences (e.g., email or company intranet). As long as the employee indicates that their sick leave is for a permitted purpose, the employer can’t require the employee to be more specific about the leave.
What about minors? If you suspect an employee under 18 years old is using sick leave for improper purposes, you can confirm their leave purposes with their parent or guardian.
5. Requesting Sick Leave Documentation
Employers are not permitted to ask for information about the illness or details of domestic violence. However, Massachusetts earned sick time law states that you can require additional written documentation supporting the employee’s need for sick leave when:
Leave exceeds 24 consecutively scheduled work hours;
Leave exceeds three consecutive days on which the employee was scheduled to work;
Leave occurs within two weeks of an employee’s final scheduled day of work for the employer, except for temporary employees;
An employee has already had four unforeseeable and undocumented absences within three months;
An employee under 18 years old has three unforeseeable and documented absences within three months.
You may require documentation signed by a health care provider noting the need for sick time use. In cases of domestic violence, you may request:
A restraining order or other similar document issued by a court of competent jurisdiction;
A police record related to the abuse;
Documentation showing the alleged perpetrator has been convicted of one or more of the offenses listed in Massachusetts Stat. 265, where the victim was a family or household member;
Medical documentation of the abuse;
A written statement by a counselor, social worker, health worker, member of the clergy, shelter worker, legal advocate, or another professional who helped the employee address the effects of the abuse; or
A signed written statement from the employee attesting to the abuse.
Employees must submit the required documentation within seven days after using the earned sick time unless they can show good cause for needing more time to provide the documentation. If an employee fails to provide the required documentation, the employer may:
Recoup the sum paid for earned sick time from future pay, as an overpayment (employees must be notified of this practice); and
Deny the future use of an equivalent number of hours of accrued earned sick time until documentation is provided but may not otherwise take adverse action.
Employees without health care coverage may provide a signed, written statement stating the need for sick leave, do not have to explain the nature of the illness.
6. Prohibited Practices
According to the Massachusetts sick leave law, employers may not interfere with, restrain, or deny an employee’s exercise of or attempt to exercise any right granted by Massachusetts’ sick leave law. This means employers may not use an employee’s use of sick leave as a negative factor in decision-making for the following:
Evaluation,
Promotion,
Disciplinary, or
Termination,
among other decisions and actions.
It is also illegal for employers to retaliate against employees who oppose practices that they believe violate Massachusetts’ sick leave law or support the exercise of rights by another employee under the sick leave law. This includes but is not limited to employees who have:
Filed action against the employer alleging a violation of the law;
Instituted or caused to be instituted any proceeding against the employer;
Provided information related to an inquiry or proceeding against the employer; or
Testified in any investigation or proceeding against the employer.
Examples of illegal retaliation include but are not limited to:
Refusing to allow employees to use earned sick time;
Delaying the payment of used sick time;
Terminating an employee;
Talking away work hours;
Negatively changing the terms or conditions of an employee’s employment;
Disciplining an employee under the employer’s attendance policy;
Giving an employee an undesirable assignment or schedule change;
Giving a false negative reference to a future employer;
Reporting an employee to immigration authorities; or
Filing false criminal reports about the employee to authorities.
Auditing Your MA Sick Leave Policy & Practices
As an employer, you must understand the ins and outs of the Massachusetts sick leave law to ensure you’re protecting both your organization and the rights of your employees. Of course, you also need to have a clear sick leave policy in place, which should always be in your employee handbook.
Do you need an audit of your sick leave policy and practices? Or perhaps you have encountered specific sick leave situations and need guidance on handling them properly? Contact BlueLion today at 603-818-4131 or info@bluelionllc.com to discover how we can help!
The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.
As they say, time is money—and no employment issue makes that more evident than that of time theft.
Believe it or not, we’re not referring to futuristic time traveling villains. Sorry to disappoint. Nonetheless, timecard fraud is a significant problem and more common than you might think.
A study in the Kentucky CPA Journal called “Biting the Hand that Feeds: The Employee Theft Epidemic” found that time theft costs over $400 billion annually in lost productivity in the United States. Another survey by Robert Half International found that the average employee steals about 4.5 hours each week from their employer, totaling almost six full work weeks annually.
So, how can you identify and prevent employees from stealing time? Keep reading for our complete guide to time theft.
What is Time Theft?
When employees get paid for hours they didn’t work, it is considered time theft.
Of course, this does not include permitted break times or covered travel time. Time fraud refers to hours an employee clocked but did not do the work they were being paid to do. But what exactly does this look like?
How Do Employees Commit Time Theft?
Time theft can occur in a number of ways and be difficult to spot and track. Keep an eye out for the following employee actions and irregularities.
Exaggerating Their Time Worked
This can mean not reporting when they come in late or not requesting permission/clocking out when they leave early.
Embellishing time is common with manual methods like paper timesheets or old-fashioned punch clocks but can also occur with time tracking software. You can clock in or out 15 minutes early or late in many programs, so the system rounds up your hours.
Exaggerated time tracking can also occur with mobile employees, who could misreport their travel time between job sites. As the employer, you can’t verify if an employee is actually stuck in traffic since you can’t easily see their status or location.
Buddy Punching
As the name implies, buddy punching involves an employee having a coworker clock in or out for them. This could mean clocking in on time or allowing them to leave early without reporting it. The stolen time can be anywhere from a few minutes to an entire shift. Buddy punching is more likely to happen with manual methods like paper timesheets or punch cards.
Taking Frequent or Extended Breaks
Whether a staff member is taking longer break times than permitted or taking several unauthorized breaks during their shift, they are committing time fraud.
For example, Jenny should only take a 30-minute lunch, yet she spends 45 minutes on her break and only marks 30 minutes on her timesheet. If she does this daily, Jenny’s employer could end up paying her a significant amount over the year that she did not earn.
Working Unauthorized Overtime
In many time theft cases, employees clock enough hours to earn time-and-a-half without prior approval to work overtime. Many companies don’t realize this until they audit employees’ time after paying hefty sums in unearned or non-permitted wages.
Spending Time on Personal Activities
When employees are bored, distracted, or experiencing low morale, they may find other ways to spend company time. Personal phone calls, texting, social media, browsing the internet, online gaming, personal email, paying bills…the list goes on. For remote or off-site employees, this could also mean running errands between jobs.
5 Ways to Prevent Time Theft in Your Organization
1. Develop Solid Time & Attendance Policies
Set clear expectations on time and attendance and how to comply with them from the start. Your time and attendance policies should address:
Procedures for clocking in and out
Break times
Personal phone and social media use during work hours
Job duties during workday lulls
Take it one step further by incorporating a separate policy on time theft, which should outline:
What qualifies as time fraud, including all the types listed above
Why it harms the business
The disciplinary actions taken if employees are caught
Remind employees that time theft is illegal, just as any other kind of theft. Depending on the amount of stolen time, an employee could even be charged with a misdemeanor or felony offense.
Consider that an employee may unknowingly steal time because they don’t understand all their work duties. Ensure employees know their complete list of job responsibilities from Day 1, so they do not waste company time. These policies should be included in the employee handbook and reviewed with new employees upon hire.
2. Follow Through on Disciplinary Actions
Show employees that you take timecard fraud seriously by sticking to the disciplinary measures outlined in your policies when someone is caught. A general recommended process includes a verbal warning, written warning or performance improvement plan, suspension, and termination. Note this process in your time theft policy to ensure employees are clear on it.
If you notice a significant disparity between one worker and their peers, it may be time to conduct a time theft investigation. Here’s how to ensure your inquiry is fair and accurate:
Have someone other than the person who discovered the time theft lead the investigation.
Maintain strict confidentiality.
Consult experts like your CPA or attorney for professional advice.
A Note on Time Theft Laws
Be wary of wage-and-hour laws, as time theft can be hard to track, and employers often have difficulty making a case against employees. The Fair Labor Standards Act (FLSA) states that the employer must pay for the hours worked by the employee (which are typically reported on their timesheet).
Even if you believe an employee’s hours were incorrectly or falsely reported, refusing to pay an employee for hours worked could lead to costly repercussions. The employee could file a suit against you, the employer, for two times their back wages, including attorney and court expenses.
3. Create a Positive, Engaged Work Environment
One powerful way to combat issues like timecard fraud is to focus on employee morale and engagement. Foster a transparent culture and communicate openly with your team to demonstrate your trust in them.
When employees know that their employer cares about and respects them, they will return that respect with productivity and loyalty. According to a Gallup report, companies with a highly engaged workforce have 21% higher profitability and 17% higher productivity than companies with a disengaged workforce.
Engaged employees who feel valued are more likely to abide by your workplace policies, including those against time theft. Check out more ideas on boosting employee morale and productivity.
4. Review & Approve Timesheets
When employees complete timesheets manually, whether traditional pen-and-paper or online, it can lead to mistakes and time theft. Managers and supervisors should monitor their employees’ time before payroll processing to verify that the hours they tracked line up with their schedule and any time off used during that pay period.
Ensure that managers and supervisors understand that timesheet review and approval are part of their responsibility. Your time theft policy should also explain this process, and that leadership staff will be responsible for any errors or omissions.
5. Use an Automated Time Clock Software
Automated time clock applications better prevent time theft via early clock-ins and buddy punching, even allowing you to set rules within the program. These tools often include features that:
Prompt employees to clock back in via mobile apps when their breaks are over.
Alert employees and administrators of errors or discrepancies on timecards.
Track remote employees’ locations via their GPS clock-in and show you their exact location at a glance, so you can see where they’re spending their time.
Incorporate advanced biometrics or require accompanying pictures to make buddy punching nearly impossible.
Help reduce time spent on personal tasks with tools that prompt employees to track their time to the minute when working on different tasks or computer activity trackers that snap screenshots or URL reports.
As you can see, time tracking software is much more effective than physical timesheets, Excel spreadsheets, or old-school punch clocks.
When to Take on Timecard Fraud in Your Company
Before acting on suspicion of time theft, every employer should assess the situation and performance of their team and company overall. Here are a few things to consider:
Employee Productivity: Are you satisfied with your team? Are they hitting goals? Producing quality work?
Potential Effects: How would anti-time theft measures affect morale? Would further restrictions make it feel like Big Brother is always watching? This could negatively impact trust, motivation, and output.
Cost-Benefit: How much time theft do you estimate at your organization? Is it enough to justify a potentially costly and time-consuming campaign that could damage morale?
No matter the situation, employers should avoid extreme measures when it comes to time fraud prevention. After all, you will never get 100% productivity out of your employees—we’re all only human! So as long as you are happy with their performance, it may not be necessary to implement a comprehensive program.
However, if you have concerns about time theft and would like a neutral third party to help you assess those concerns, BlueLion’s human resources experts can help. We will work with you to develop policies and processes, as well as recommend practical time-tracking tools. Contact us today at 603-818-4131 or info@bluelionllc.com to learn more.
The information on this website, including its newsletters, is not, nor is it intended to be legal advice. You should contact an attorney or HR specialist for advice on your individual situation.
Sign up for our awesome newsletter
We'd love to keep you in the know on all things HR.
We know you're busy, so we want to deliver this awesomeness right to your inbox. Join our newsletter, and we promise to over-deliver on value, but NOT on emails!
