Module 4: Compensation and Benefits - PowerPoint Presentation

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Module 4: Compensation and Benefits - PPT Presentation

19 PHR 13 SPHR 4 1 SHRM Any student use of these slides is subject to the same License Agreement that governs the students use of the SHRM Learning System materials Types of Compensation ID: 727409

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Slide1

Module 4: Compensation and Benefits19% PHR13% SPHR

4-1

Any student use of these slides is subject to the same License Agreement that governs the student’s use of the SHRM Learning System materials.Slide2

Types of Compensation

Direct compensation

Indirect compensation

Pay systems

Benefit and recognition programs

Compensation and benefits are two of the most visible elements of a total rewards system. Slide3

Compensation Legislation

4-3

Fair Labor Standards Act (Wage and Hour Law)Applies to organizations with employees who engage in interstate commerce, produce goods for interstate commerce, or handle, sell, or work on goods/materials that have been moved in/produced for interstate commerce. Applies to employers with at least $500,000 in annual dollar volume of business.

Under FLSA, an employer has no ongoing obligations to independent contractors.

4-4

Which of the following factors would indicate independent contractor status?A. Opportunity for profit and lossB. Regular oral and written reports presented to a manager

C. Right to end the relationship with the organization at any time without incurring liabilityServices provided to a single organization

IRS Independent Contractor Test© SHRM

4-6Slide7

Exempt and Nonexempt Employees

Type of Employee

Importance:

Exempt

Excluded from minimum wage and overtime pay requirements of the law.

Nonexempt

Are not excluded from minimum wage requirements and are entitled to overtime.

Overtime is guaranteed to employees who are paid less than

$23,660

per year or

$455

per week.

FLSA Exemptions

4-8

9Primary Duty Issue

Executive Exemption

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An employee must:Slide11

Administrative ExemptionRequires performance of office or nonmanual work directly related to the management or general business operations of the employer or the employer’s customers.Includes the exercise of discretion and independent judgment related to “matters of significance.”

4-11

Professional Exemptions

Highly Compensated ExemptionA highly compensated employee must:Be paid total annual compensation of $100,000 or more that includes at least

$455 per week paid on a salary or fee basis.Perform one of the duties of an exempt executive, administrative, or professional employee.

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Computer EmployeesMust meet the salary minimum with a salary of $455 per week or $27.63 per hour.

Employee’s pay cannot be subject to deductions inconsistent with the salary basis requirement.Primary duties must fall into one of four categories.

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Outside SalesAn employee must:Have a primary duty involving making sales or obtaining orders and contracts.Be customarily and regularly engaged away from the employer’s place of business.

Outside sales employees are not subject to the minimum salary requirements of other exemptions.

Example: An exempt employee is normally not subject to deductions for illness in less than full-day increments. (An FMLA exception may occur.)

16Improper DeductionsSlide17

Safe HarborA “safe harbor” exists if:The employer has a clearly communicated policy prohibiting improper pay deductions.Employees are reimbursed for any improper deductions.

The organization makes a good-faith effort to comply in the future.

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FLSA Basic Overtime ProvisionsSlide19

An employer pays an employee a $40 attendance bonus for working a full 40-hour workweek. If the worker works 45 hours during that week, what will the employee’s gross paycheck be if her hourly rate is $10?A. $495.00

$509.50$515.00D. $517.25

Compensatory TimeOvertime usually must be paid in cash.Public-sector employers may grant compensatory time off.Public employees can accumulate “comp” time.

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Presently, compensatory time is not allowed for private-sector nonexempt employees.Slide21

FLSA Child Labor ProvisionsRestrict hours and conditions of employment for minors.

Minimum Wage Provisions4-22

Portal-to-Portal Act Amends FLSA and defines general rules for hours worked.Provides guidelines on:On-call/standby time.Preparatory/concluding activities.

Waiting time.Meals and breaks.Travel time.Training time.

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Travel Pay Slide25

Equal Pay Act (EPA)

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Which of the following is true under the Equal Pay Act?A. Seniority systems cannot result in pay disparity.B. Companies should provide all employees with the same working conditions.

Employees doing equal work should receive the same pay.D. Jobs filled primarily by women should have the same salary as similar jobs filled by men.

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Work Opportunity Tax Credit (WOTC)Slide28

Additional Compensation Legislation4-28

Objectives of a Compensation and Benefits System4-29

External EquityCompares an organization to other organizations that share its industry, occupation, or location.Organizations may decide to:

Lag Match Lead

Internal Equity

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Job EvaluationDetermines the relative worth of each job by establishing a hierarchy. Follows job analysis, which focuses on job descriptions and specifications.

Job Evaluation Methods

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Nonquantitative (Whole-Job) EvaluationEstablishes a relative order of jobs. Does not assign numeric values.

Job

ranking

Paired

comparison

Job

classification

Job-to-job

comparison

Job-to-predetermined-standard comparison

Quantitative EvaluationUses a scaling system to evaluate the value of one job is as compared to another.Provides a score.

Point-factor

method

Factor comparison

method

Less complex, commonly used

Most complex, used infrequently

Point-Factor MethodEach job receives a total point value, and relative worth can be compared.Examples: Guide Chart-Profile (Hay Plan) and the U.S. government Factor Evaluation System (FES).

Points often determine pay grade assignment.

Market-Based Evaluation4-37

Pay Surveys

Data AnalysisSalary data may need to be aged, leveled, and/or factored for geography.Aging uses movement in market rates to adjust outdated salary data.Leveling adjusts salaries when surveyed jobs are similar but not identical to jobs in the organization.

Since wage rates will vary by location, the organization should factor for geography any national salary survey data.4-

Sorting Salary DataFrequency distributions and tables sort salary data.

Mean Salary

Number of Incumbents

$55,000

$60,000

$65,000

$70,000

$75,000

Frequency distribution

Lists the grouped data, from lowest to highest.

Frequency table

Shows the number of incumbents who receive a particular salary.

Salary Data: Measures of Central TendencyUnweighted average gives equal weight to every salary.

Weighted average considers the number of people who receive each salary.Median is the middle number in the range.Mode is the most frequently occurring wage.

Unweighted Average = $65,000

Weighted Average = $65,909

Annual Salary

# of Incumbents

Total Salary

$55,000

$60,000

$65,000

$70,000

$75,000

$110,000

60,000

130,000

350,000

75,000

Totals

$725,000

Quartiles and PercentilesShow how groups relate to each other.Show if an organization leads, lags, or matches the job market.

Creating a Pay Structure

4-43

Compa-RatiosDivide the pay rate of an employee by the midpoint of the range.Given a range of $16 to $20 an hour, a midpoint of $18, and a salary of $16 an hour, the compa-ratio is:

$16 ÷ $18 = .89 or 89%.Compa-ratios below 1.00 mean wages are below the midpoint; compa-ratios greater than 1.00 mean wages exceed the midpoint.

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An employee earns $9 an hour, and the pay range is $8 to $12. What is the compa-ratio?A. 66%B. 80%

C. 90%D. 111%

BroadbandingCombines several salary grades or job classifications.

Broadbanding Advantages and Disadvantages

Advantages

Disadvantages

Provides wider ranges.

Reduces the number of job grades.

Supports de-layering.

Provides more autonomy to line managers.

Enhances employee mobility.

Reduces the value of ranges.

Affords less control.

Creates overly broad ranges.

Difficult to maintain perception of equity.

Reduces the opportunity for promotion.

Can lead to divergence from the market.

Functions and Systems

Base-Pay Systems4-49

$Slide50

Single- or Flat-Rate SystemEmployees receive the same rate of pay, regardless of performance or seniority.Typically used for elected jobs in the public sector or union hourly positions.Generally corresponds to target market survey data for the job.

There may be a training wage in a flat-rate job.4-

Time-Based Step-Rate SystemRate is based on longevity.Pay increases occur on a predetermined schedule.

Automatic step-rateStep-rate with variability-based performanceCombination step-rate and performance

Performance-Based/Merit Pay SystemIndividual performance is the basis for pay.Increases are tied to performance and job mastery.Employers must be able to defend performance appraisal methods and differences in salary increases.

Productivity-Based SystemPay is determined by employee’s output.

Straight piece-rateBase wage rate plus additional compensation for outputDifferential piece-rate

One piece rate up to the standard and a higher rate after the standard is exceededWorks best in assembly and manufacturing situations.

Person-Based SystemEmployee’s characteristics determine pay.Superior knowledge or skill mastery is rewarded.Knowledge-based (scientists whose pay is based on knowledge in a field or domain)

Skill-based (machine operators cross-trained on a variety of production equipment)Competency-based (professionals who excel at defined competencies)

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A window manufacturer guarantees its installers a base wage plus an extra $25 for each job completed to specifications. The employer is using aA. merit pay system.B. productivity-based system.

C. competency-based system.D. flat-rate system.

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Pay Variations

Pay Adjustments

Examples: © SHRM

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Shift pay

Emergency-shift pay

Premium pay

Hazard pay

On-call or call-back pay

Reporting pay

Travel pay

Time-Based Differential PaySlide59

Geographic Differential PayDifferentials for labor costsDifferentials to attract workers to certain locationsDifferentials for foreign pay

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Geographic Differential Pay

$Slide60

Incentive PayPaying for performance beyond expectations.Motivates employees to perform at higher levels.May be a factor when determining overtime pay.

Research tax ramifications before implementing any incentive pay plan.

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Individual Incentive PlansImprove individual performance.Kept separate from base pay.

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Group Incentive PlansGainsharingOrganization shares a portion of the gains realized from group effort.Scanlon, Rucker, and ImproshareGroup performance

Group is rewarded for meeting or exceeding performance standards.Typically, each person receives the same amount as a percentage of pay or flat dollar award.

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Organization-Wide Incentive Pay Plans

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Stock-Based PlansEncourage employees to share in the success of the organization.Stock may be purchased or earned.Organization may facilitate stock purchase through payroll contributions.

Organization may structure stock purchase as a form of ERISA-governed qualified retirement plan (ESOP).Nonleveraged ESOPsLeveraged ESOPs

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Long-Term Executive Incentives

SPHR only

4-65

Direct Sales Compensation

Straight commissionSalary pluscommission

Straight salary

More time is spent on service than sales.

There is a long sales cycle.

Goal is to increase volume and control costs.

Use when:

Organization needs to reward behaviors that support strategy.

Plan needs to be adaptable.

Compensation for Professionals

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Controlling Costs4-68

Designed to:Reward continued employment and promote loyalty.Protect employees’ physical and financial well-being.Help to recruit and retain talent.Improve productivity, work quality, and competitiveness.Provide tax-effective purchase of insurance and benefits.

Indirect Compensation

Cost-effective + Affordable + Compliant with all laws and regulations

69Slide70

Benefit Needs Assessment

Review organization’s strategy.

Review total rewards

philosophy.

Analyze workforce

demographics.

Analyze benefits

design and utilization

data.

Conduct gap analysis.

The purpose of a gap analysis is to A. determine which employees are underinsured.B. revise benefits that are not meeting employee or organizational needs.

C. eliminate benefits that are the most costly.D. ensure that all employees receive the same benefits.

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Employee Retirement Income Security Act (ERISA)Establishes minimum standards for benefit plans.Plans must conform to the Internal Revenue Code’s requirements to receive tax advantages.Sets up the Pension Benefit Guaranty Corporation (PBGC).

Plans or their sponsors pay premiums to the PBGC.PBGC guarantees payment of vested benefits up to a maximum limit to employees covered by pension plans.

Fiduciary Responsibility According to ERISA:Plan must be operated for exclusive benefit of participants and their beneficiaries.Employer must follow the prudent person rule.

Individuals may sue for recovery for fiduciary breaches that impair the value of plan assets.

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ERISA Rules© SHRM

4-74Slide75

Retirement Equity Act (REA)Provides legal protections for spousal beneficiaries of retirement plan participants.Requires written spousal consent for:Changes in retirement plan distribution elections.

Changes in spousal beneficiary designations.In-service withdrawals.

4-75

Consolidated Omnibus Budget Reconciliation Act (COBRA)

According to COBRA, an organization with at least 20 employees must offerA. health insurance to its employees. B. continued medical coverage to employees terminated for gross misconduct.

C. COBRA benefits to workers if the organization terminates its health plan.D. COBRA benefits to spouses of deceased workers.

4-77

COBRA Regulations (2004)Update general and qualifying event notices.Provide an initial notice within 90 days of the date an employee/spouse is covered under the plan and mail the summary plan description to the residence.

Establish reasonable notification procedures and communicate them to all employees.Provide a notice of unavailability of continuation of coverage within 14 days of the date plan administrator is informed of the qualifying event.

Notify individuals whose coverage ends before the maximum continuous coverage period allowed.

Notify individuals whose coverage is ending of that fact and of any continuation options available

Generally requires group health plans to provide coverage to dependent children up to age 26.

Made significant changes to COBRA continuation coverage rules for employees involuntarily terminated between September 1, 2008, and May 31, 2010.

American Recovery and Reinvestment Act (ARRA)

Patient Protection and Affordable Care Act (PPACA)

COBRA Coverage Amendments

79Slide80

Health Insurance Portability and Accountability Act (HIPAA)Limits exclusions for preexisting conditions.Guarantees renewability as long as premiums are paid.

Gives workers leaving a job with employer-sponsored health coverage the right to purchase coverage on their own. Key provisions:

HIPAA Privacy RulePermits covered entities to use or disclose protected health information for:Treatment, payment, and health-care operations.A written authorization from the patient is required if outside of these purposes.

Organizations must:Establish systems for tracking protected health information.Designate a privacy officer and complaint process.Ensure that individuals cannot waive their rights.Establish a system of consistently enforced sanctions.Keep records for six years.

Establish written contracts with third parties.

After using employer-sponsored EAP services to visit a psychologist, an employee pays out of pocket for additional sessions—beyond the EAP coverage. The employee’s manager calls the psychologist without the employee’s consent. Based on information learned from the conversation, the manager terminates the employee. This actionA. ignores progressive discipline procedures.

B. demonstrates reasonable and prudent behavior.C. violates the employee’s expectation of privacy.upholds HIPAA Privacy and Security Rules.

HIPAA Security Rule and ARRA Imposes new requirements regarding:Notification of security breaches of protected health information.Extension of HIPAA Privacy and Security Rules to include business associates.

Enforcement and civil penalties for violations of HIPAA Privacy and Security Rules.Access and accounting requirements.Provides funding to improve the nation’s health-care information technology systems.Includes incentives to promote the use of electronic health records, telemedicine, and clinical data repositories.

Older Worker’s Benefit Protection Act (OWBPA)

Family and Medical Leave Act (FMLA)Covers employers with 50 or more employees for 20 or more workweeks in current or preceding year.Employee must have worked at least 12 months for employer, have worked 1,250 hours in past year, and work at a site that 50 or more employees work within 75 miles of.

4-85

Provides up to 12 workweeks of unpaid, job-protected leave for birth or adoption of a child or serious health condition of a child, spouse, parent, or the employee. Slide86

FMLA Updated Regulations4-86

Department of Labor regulations pertaining to:

“Serious health condition” definition.

Employee’s notice of FMLA leave.

Intermittent leave.

Medical certification.

Fitness for duty.

DOL

FMLA

RegulationsSlide87

FMLA-eligible employees are entitled to:

FMLA Expansion© SHRM

4-87

Up to 12 workweeks

Up to 26 workweeks during a 12-month periodSlide88

Uniformed Services Employment and Reemployment Rights Act (USERRA)Protects the employment, reemployment, and retention rights of persons who serve in the uniformed services.Requires employees to provide oral or written notice of the need for leave (30 days if feasible).Allows for five years of leave.

Gives employees on leave the same seniority-based benefits they would have received if they had not taken leave.4-

Uniformed Services Employment and Reemployment Rights Act (USERRA)Requires that leave not create a break in service for pension plan purposes.Requires that employer health plans permit employees on leave to continue coverage at their expense for up to 24 months. (A 2% charge for administrative costs can be added.)

If state laws provide protection beyond USERRA, employees are entitled to the maximum protection.

4-89

According to USERRA, employees called up for active duty are entitled to A. higher limits for salary deferral contributions.B. credited service for retirement plan purposes.

C. lower copayments and deductibles for continued family medical benefits.D. an early vesting schedule for retirement benefits.

4-90

Mental Health Parity Act (MHPA)

Genetic Information Nondiscrimination Act (GINA)© SHRM

4-92

Requires that the disclosure of protected genetic health-care information be governed by HIPAA.

Civil penalties of $100 per day, 10 years’ imprisonment.Slide93

Pension Protection Act (PPA)© SHRM

4-93Slide94

Affordable

minimum health coverage

Lifetime maximum benefit limits

Preexisting conditions

Small employer health-care tax credit

Preventive care

Dependent coverage

Uniform explanation of coverage

Summary of material modifications (SMM)

Annual benefit limits

State health exchanges

"Cadillac plan" tax

Examples:

Patient Protection and Affordable Care Act (PPACA)

94Slide95

Economic Growth and Tax Relief Reconciliation Act (EGTRRA)Adjusts minimum vesting schedules for employer matching contributions to defined contribution plans.Three-year cliff vestingSix-year graded vesting (20% after two years and 20% per year thereafter)

4-95

Sets permissible compensation limits—Code Section 401(a)(17).

Sets limits on annual pensions—Code Section 415(b)(1)(A).

Permits catch-up contributions for employees age 50 and older.

Modifies distribution and rollover rules.Slide96

4-96

Sarbanes-Oxley Act (SOX)Slide97

Blackout Notice RequirementsMust be done in writing 30 days in advance and must contain:Reasons for blackout.Identification of affected rights and investments.

Expected beginning date and length of blackout.Statement that individuals should evaluate the appropriateness of their current investment decisions.

4-97

Whistleblower ProvisionsProtects employees who:Report conduct that they “reasonably believe” violates federal securities laws.File, testify in, or assist in a proceeding related to securities fraud.

Employer cannot take adverse action or discriminate against employees for taking part in protected activities.4-

Witness

ReportSlide99

Tax and Accounting TreatmentFASB decides how organizations should report financial information to shareholders.Required companies to treat employee stock options as an expense on financial statements beginning in 2005. IRS implements and interprets tax legislation:

Revenue rulings.Private-letter rulings.

4-99

Benefits Required by StatuteSocial Security/MedicareUnemployment insuranceWorkers’ compensationCOBRA

FMLA4-100

LAWSlide101

4-101

Social SecuritySlide102

Social Security BenefitsRetirement income:Depends on individual’s average earnings.Pays reduced benefits at age 62; full benefits are indexed to year of birth.Disability benefits:

Are paid when workers cannot work for at least five months.Are paid when workers have an impairment that is expected to continue for 12 months or result in death.Start after a five-month waiting period.Death and survivor’s benefits

102

MedicareNot dependent on income or ability to pay.Employee and employer pay a percentage of salary; there is no yearly maximum.All individuals are eligible at age 65.Employer benefits are primary for employees 65 and older who are working.

103

EEOC ruling allows employers to reduce health benefits for Medicare-eligible retirees to avoid paying premiums that are higher than those paid for retirees not covered by Medicare.The rule was in response to a federal appeals court decision stating that health insurance benefits received by Medicare-eligible retirees be the same or cost the same as health insurance benefits received by younger retirees.

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EEOC Ruling on MedicareSlide105

Unemployment InsuranceMandatory benefit funded primarily by employers and administered by states.Eligibility in most states includes:Being available and actively seeking work.

Not refusing suitable employment.Not having left job voluntarily.Not being unemployed because of labor dispute.Not being terminated for misconduct.Working a minimum number of weeks.

Duration: 26 weeks.

105

106

Workers’ CompensationSlide107

Benefits of Qualified Deferred Compensation Plans4-107

Characteristics of Qualified PlansUnder ERISA, plans must:Be in writing and be communicated to employees.Be established for exclusive benefit of employees/beneficiaries.

Satisfy rules concerning eligibility, vesting, and funding.Not favor officers, shareholders, or HCEs.

4-108

Defined Benefit Plans

Benefit amount is based on a formula.

Employer funds the plan and bears the risk.

Insured by the PBGC.

Flat-dollar formula

Career-average

formula

Final-pay formula

Cash balance plan

Benefit amount is based on a formula.

Employer funds the plan and bears the risk.

Insured by the PBGC.

Flat-dollar formula

Career-average

formula

Final-pay

formula

Cash balance plan

109

Defined Contribution Plans

Benefit amount is based on a formula.

Employer funds the plan and bears the risk.

Insured by the PBGC.

Flat-dollar formula

Career-average

formula

Final-pay formula

Cash balance plan

Employees and/or employers pay a specific amount per person into the fund.

Benefits are determined by amounts contributed and fund performance.

Profit-sharing plans

Money purchase plans

ESOPs

401(k) plans;403(b) plans;

Roth 401(k)/403(b) plans

110

Other Tax-Deferred Plans

529 PlansReferred to as qualified tuition programs (QTPs).Federal tax-free way to save money for college.College savings plan

Establishes an account for a future student.May be used at any college.Prepaid tuition planLocks in future tuition at current price.Used at participating in-state public colleges and universities.

112

Nonqualified Deferred Compensation PlansProvide additional benefits to key executives. Do not qualify for favorable treatment under ERISA.

Employees defer reporting income; not subject to the limits placed on qualified plans.Employer contributions are not deductible.Funds are not protected by ERISA or PBGC.

Examples: Top hat plans, 457(f) plans, excess deferral plans, rabbi trusts

113

Qualified Domestic Relations Orders (QDROs)Create or recognize the right of an alternate payee to receive all or a portion of pension benefits.Orders must relate to child support, alimony, or marital property rights and must be made under state domestic relations law.

4-114

Related case:

Kennedy v. Plan Administrators for Dupont SavingsSlide115

Health-Care PlansIndemnity or fee-for-service plans (offered less frequently).Full-choice plans.Employees can go to any qualified physician.Fees are generated when services are used.

Managed care plans (offered most frequently).Prepaid capitated health-care plans.

Members enroll and pay a set monthly or annual fee.Members must use HMO physicians and facilities to get low fees; no need to submit claims.

115

Other Health-Care Options4-116

4-117

Health-Care FundingSlide118

4-118

Controlling Health-Care CostsSlide119

Consumer-Directed Health CareObjective: To help employers control costs while allowing employees to make decisions about their health care.

Health reimbursement accounts

Health savings accounts

Combine a high-deductible medical plan with individual HRAs

Tax-sheltered savings accounts used to pay for medical expenses

119

Health Reimbursement Account (HRA)Employer purchases a high-deductible medical plan.Plan reimburses employees for eligible and substantiated health-care expenses.

Employees may NOT contribute on any pretax basis. Subject to COBRA continuation. If self-funded, must meet nondiscrimination requirements and not favor HCEs.

4-120

Health Savings Account (HSA)Individuals are covered by a high-deductible health plan.Employer contributions are deductible; employee contributions are excluded from income when done through a Section 125 plan.

Earnings grow tax-free, and distributions for qualified medical expenses are tax-free. Unused funds can be carried over from year to year, are portable, and can be used into retirement.

121

Section 125 Plans

An employer pays an FSA medical claim for $500 in March. In April, the employee leaves the organization after setting aside only $250. What happens in this situation?A. The employee must return $250 to the organization.B. The employer may withhold $250 from the employee’s last paycheck.

The employee is entitled to the reimbursement as paid.The employee becomes ineligible for COBRA coverage.

4-123

4-124

Income Replacement ProtectionSlide125

Life Insurance Protection

Long-Term Care Insurance4-126

Coverage for people who are chronically ill for at least 90 days.Not counted as employee income.

Employers can deduct their part of the insurance premiums.Slide127

Paid LeavePaid leave for events:Holiday payVacation payPay for legally protected activitiesLeave of absenceBereavement leave

Personal daysPaid-time-off banksPaid time off is lumped into one account.

127

Other Benefits

Prepaid legal insurance

Tuition

reimbursement

Transportation

assistance

Child and

elder care

Benefits

128

Which of the following items is generally subject to federal taxation?A. $1,000 reimbursement for a business tripB. $300 per month for parking

C. $20 gift from a vendorD. $1,500 for a job-related training seminar

4-129

Global Compensation and Benefits ConsiderationsStandardization versus localization CultureCompetitive labor market

SPHR only

130

Collective bargaining, employee representation, and government mandates

Economic factors

Taxation

Laws and regulationsSlide131

International Compensation ApproachesSPHR only

4-131

What is the advantage of paying an international assignee a differential between home-country costs and assignment costs?A. It preserves purchasing power regardless of country of origin.B. It requires minimal planning and is easy to administer.

C. It is more tax-effective for the employee.D. It gives the international assignee a choice.

SPHR only

132

International Benefit VariationsSPHR only

4-133

Nonsalary International BenefitsSPHR only

4-134

Totalization AgreementsSPHR only

4-135

Evaluating the Compensation and Benefits System

136

Required CommunicationERISA requires:Summary plan description, summary annual report, and summary of material modifications.

Filing Form 5500 with the DOL.Other required communications include:FMLA policy.COBRA continuation of benefits notice.

Special HIPAA enrollment rights and privacy rights.Medicare Part D notification.PPA notice and disclosure requirements for retirement plans. Explanation of stock options (SEC regulations).

Posting of all required federal, state, and local employment laws.

137

Voluntary Communication

Reduced administrative work for HR.Increased accuracy of employee data.Improved timeliness in information and employee transactions.

Reduced dollars spent on other traditional HR delivery channels (e.g., paper-based transactions).

Enhanced reputation as a “green,” environmentally conscious employer.

Self-Service Technology Benefits

139