Employee Benefits Required by Law
Formula Coded Key Takeaways
Key Takeaways:
- The law does not treat all workers the same regarding wages, and minimum wages vary by state.
- Obamacare requires large employers to offer health insurance coverage to their employees.
- Not all benefits, such as paid parental leave, retirement plan contributions, and many others, are legally required.
If you are wondering if you are receiving all the legally required benefits you are entitled to, know that the world of employee benefits can be a confusing one.
This article provides an overview of employee benefits. It is important to note that legally mandated employee benefits vary from state to state, industry to industry, job to job, and even from employee to employee. You should talk to a local employment law attorney for legal advice on your circumstances, job, and location.
Wages
As of February 2024, the federal minimum wage is $7.25 per hour per employee. This figure is the lowest amount per hour an employer can pay an employee across the United States. While this figure has not changed since July 2009, many states, cities, and counties have their own higher minimum wage rates.
For example, as of 2024, California has a minimum wage of $16 per hour for all employees and for all employers. It is even higher in some cities.
These differences highlight the importance of researching and understanding the specific wage laws of your location.
Worker Classifications
The law does not treat all workers the same regarding wages. For example, the minimum wage can be lower in jobs like waiters and waitresses, where tips are the primary source of income. However, if the tips do not bring an employee’s wage to the equivalent of the minimum wage, the employer must “top up” those tips so the employee makes at least the minimum wage.
Hours
A standard work week for a full-time employee is usually 40 hours per week. Part-time workers work fewer hours and may not be eligible for certain benefits like leave. If you work more than 40 hours a week, the law requires your employer to pay you overtime for every hour exceeding 40 hours. The overtime rate is typically 1.5 times your regular hourly rate. There are exceptions to this. For example, employers typically don’t have to pay overtime to salaried workers.
Sick Time and Leave
Taking time off when you are sick or to care for a loved one is important. Some states and cities require employers to give employees paid sick leave. The specifics of this requirement vary greatly depending on how many hours an employee must work in a week and the length of service time needed to qualify. Additionally, the rate at which you accrue sick time, whether it is unpaid or paid time off, and the circumstances under which you can use that leave varies by state and the size of your employer.
A federal law called the Family and Medical Leave Act (FMLA) gives eligible employees up to 12 weeks of unpaid leave per year to care for a family member, after the birth or adoption of a child, or for their own health. Usually, an employee must have worked for an employer with more than 50 employees for at least one year to qualify.
Some states make employers provide reasonable accommodation for employees unable to work on religious holidays or for religious observances. Some states require mandatory leave benefits like parental leave for new parents, bereavement leave, and leave for victims of domestic violence.
Health Insurance
Recognizing that health care and health insurance coverage are important, the Affordable Care Act (ACA), also known as “Obamacare,” requires employers with more than 50 full-time employees to offer those employees health insurance. While the scope of the health benefits and insurance plans will vary, there are some baselines that employer health plans must meet.
A Safe Working Environment
The Occupational Safety and Health Administration (OSHA) mandates that every employer provide a safe and healthy workplace. This includes providing personal protective equipment and training to the necessary employees.
The law in most states, but not all like New Jersey, requires employers to carry workers’ compensation insurance. This means that if you get injured on the job, you receive compensation for medical expenses from your injuries and some portion of the wages you lost due to the injury. Some states also require employers of a certain size to offer unemployment insurance and disability insurance.
Other Benefits
Employers can offer voluntary benefits like retirement plans, tuition reimbursement, and other fringe benefits through their own benefit plans and benefits programs, but those types of benefits are voluntary.
Talk to an Employment Lawyer
If there is any question whether your employer is following the above benefits laws, contact a local employment law lawyer. An employment lawyer will know what benefits laws apply to your case and how to take prompt action to help you receive the benefits you are entitled to.
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