PCS Weekly - HR Topic
Wages and Benefits
Ensuring fair pay and competitive benefits can be complex. Explore resources to support wage management and benefit offerings.
Question: An employee let us know their paycheck was short. Can we wait to pay the difference on their next check?
Answer from Kyle, PHR:
Don’t wait. If the employee was underpaid, it is in your best interest to pay the employee the difference immediately. Wages are due on the regular payday for the pay period covered, as required by the Fair Labor Standards Act.
State law may apply as well. When an error occurs and results in an underpayment, the employer is technically in violation of the law, even if it was a system error or caused by an employee's timekeeping mistake.
This Q&A does not constitute legal advice and does not address state or local law.
Question: We’re planning to close the office a few days a week to save money. Do salaried exempt employees still get their full pay during these furloughs?
Answer from HR:
Yes, salaried exempt employees must be paid their full weekly salary if they do any work during your designated seven-day workweek, including tasks as quick as checking work email or voicemail.
As your goal is to save money, be sure the furlough covers the full workweek and that affected exempt employees understand they’re not to do any work while on furlough. Nonexempt employees, however, only need to be paid for actual hours worked, so single-day or partial-week furloughs can be implemented without worrying about pay implications.
This Q&A does not constitute legal advice and does not address state or local law.
Question: When are we required to pay for trainings?
Answer from HR:
In general, time spent in job-related training is counted as time worked and must be paid. However, not every lecture, class, training program, or similar activity would qualify. If all four of the following criteria are met, you don’t need to pay the employee for the training:
1. The training occurs outside of the employee’s normal work hours
2. The training is completely voluntary (there will be no company-initiated consequences if the employee does not attend)
3. The training is not specifically job related (it may be tangentially related to their job, like most continuing education, without being specific to how they do their job on a day-to-day basis or intended to train them for new job duties)
4. No work for the employer is performed during the training (e.g., reading or replying to emails).
For example, if a software developer wants to learn a new coding language that isn’t even used in the workplace and enrolls in a local college class that meets in the evenings after work, that wouldn’t need to be paid. On the other hand, if a graphic designer needs to learn a new piece of software because it will be used for future work projects, that would need to be paid.
This Q&A does not constitute legal advice and does not address state or local law
Question: Do we need to pay our remote employees for a full day if they lose internet access for a few hours?
Answer from HR:
It depends on their status under the Fair Labor Standard Act (FLSA). Your exempt employees need to be paid their full salary for the day if they did any work before or after the outage (or both).
Your nonexempt employees only need to be paid for time worked.
This Q&A does not constitute legal advice and does not address state or local law.
Question: If an employee runs out of paid time off, do we have to allow them to take unpaid time off?
Answer from HR:
It depends on why your employee needs the unpaid time off and what you’ve done in the past.
In some situations, such as those that would be covered by the Family and Medical Leave Act, Americans with Disabilities Act, Pregnant Workers Fairness Act, or a similar state law, the employee may be legally entitled to unpaid leave.
In those cases, you would need to approve the unpaid leave at least to the extent required by the applicable laws.
This Q&A does not constitute legal advice and does not address state or local law.
Question: When can we deduct from an exempt employee’s pay?
Answer from HR:
In general, if an exempt employee performs any work during the workweek, you must pay them their full salary for that week. Deductions are allowed, however, for legally required withholdings and benefit elections.
There are a handful of other situations in which a deduction from an exempt employee’s salary would be permissible under federal law:
-For any workweek in which the employee performs no work, including answering emails, texts, or phone calls.
-In the initial or final week of employment based on the number of hours worked.
-For absences of one or more full days for personal reasons other than sickness or disability.
-For absences of one or more full days due to sickness or disability, if the deduction is made in accordance with a bona fide paid sick leave plan (the Department of Labor has previously said that a plan offering at least five paid days off for sickness qualifies as bona fide).
-To offset amounts the employee receives from jury or witness fees or for military pay.
-For penalties imposed in good faith for infractions of safety rules of major significance, in accordance with a clearly established workplace policy.
-For unpaid disciplinary suspensions of one or more full days imposed in good faith for workplace conduct rule infractions.
-For leave taken under the Family and Medical Leave Act.
This is a complete list of allowable deductions, so if none of these situations apply, an exempt employee needs to receive their full salary for the workweek, regardless of the number of days or hours worked.
This Q&A does not constitute legal advice and does not address state or local law.
Question: Does taking FMLA intermittently affect an employee’s full-time status or eligibility for health benefits
Answer from HR:
No. The Family and Medical Leave Act (FMLA) is clear on this point. You must maintain the employee’s coverage under any group health plan with the same conditions as if the employee had not taken leave and been continuously working full time during the entire leave period.
The specific coverage should also be maintained, both in terms of who is covered under the plan (e.g., employee, employee and spouse, employee and family) and what the coverage includes (e.g., medical, dental, vision).
This Q&A does not constitute legal advice and does not address state or local law.
Question: If an employee runs out of paid time off, do we have to allow them to take unpaid time off?
Answer from HR:
It depends on why your employee needs the unpaid time off and what you’ve done in the past.
In some situations, such as those that would be covered by the Family and Medical Leave Act, Americans with Disabilities Act, Pregnant Workers Fairness Act, or a similar state law, the employee may be legally entitled to unpaid leave. In those cases, you would need to approve the unpaid leave at least to the extent required by the applicable laws.
In the absence of any legal requirements, if you’ve historically granted similarly situated employees unpaid time off, you should continue to do so. Inconsistency can lead to discrimination claims. (You can make a permanent change in policy and stop granting unpaid time off when it’s not required by law, but that’s the kind of policy shift you’d want to share widely, and if possible, with some advance notice.)
If neither of the above situations apply, you could deny a request for unpaid time off, but be sure to let the employee know why. People appreciate transparency, especially when being told “no.”
This Q&A does not constitute legal advice and does not address state or local law.
Question: What is a health flexible spending account?
Answer from Angela, CIC, CISR, SHRM-CP
December 5, 2024
A health flexible spending account (HFSA) lets employees set aside pre-tax money from their paycheck during the year, and they can use this money to pay for eligible healthcare expenses for themselves, their spouse, or their dependents. The funds in these accounts are typically “use it or lose it,” with some exceptions for carryover or grace period options, based on the employer’s plan design.
Employees can use their HFSA funds for many healthcare-related costs allowed by the IRS, such as insurance plan deductibles and copays, prescriptions and over-the-counter drugs and medications, dental and vision care, and chiropractic services. Payments for these services can be made directly to the healthcare provider or retailer using a debit card linked to the account or by filing for reimbursement with the HFSA provider.
Employees like having HFSAs as these accounts allow them to set aside pre-tax money for some of those regular costs, such as new glasses or for a planned medical procedure, while also providing upfront access to funds to help employees manage unexpected medical expenses more effectively.You can learn more about HFSAs on the platform.
This Q&A does not constitute legal advice and does not address state or local law.
Can we ask applicants to share their pronouns on our job application?
Answer from Wendy, PHR
December 19, 2024
In general, yes. There are some things to consider.
First, the question should be optional and clearly stated as such on the application.
Second, if you ask for pronouns on the application, screeners and interviewers should use them. Your workplace culture won’t come across as authentic or inclusive if the applicant’s stated pronouns are disregarded.
Third, ensure that those making hiring recommendations or decisions understand that a candidate’s choice to identify or not identify their pronouns, as well as the pronouns they choose, should not figure into the hiring decision. Collecting this information could lead to a discrimination claim if an applicant believed they were excluded because of their gender identity.
This Q&A does not constitute legal advice and does not address state or local law.
What is a total compensation statement?
Answer from Wendy, PHR
January 16, 2025
A total compensation statement is a document that provides employees with a view of their compensation beyond just wages or salary. It’s meant to give employees a complete picture of what the company has invested in them. It details not only base pay but also bonuses, paid time off, health and wellness benefits, retirement program matching, and any other perks that are funded by the employer.
If you decide to provide a total compensation statement to your employees, we recommend explaining the purpose of the document to them and preparing managers to answer questions that may come up.
This Q&A does not constitute legal advice and does not address state or local law.
