Employee Polygraph Protection Act of 1988

• It is a lie detector test
• with the few exception to " security -sensitive" positions it is unlawful for the employer to use such tests in employment decision
• It provided protection to current and prospective employees.

Prospective employees: A lie detector test can be used for prospective employees

1. Employer provides armored car personnel, security personnel, or security alarm systems to protect electrical, nuclear power plants, storage or radioactive or other toxic material.
2. Employees will have direct access to the manufacture, distribution or dispensation of certain controlled substance.
3. If the employer engages in intelligence function
4. Employer is a federal, state of local govt.

Current employees: Can be done for the current employees during an ongoing investigation of financial loss or injury through theft, embezzlement and misappropriation if

1. Employee has access to the property
   
2. Employer has reasonable suspicion on the employee
3. Employee receives written notification about the investigation and testing prior to the test.

Note :

• Employer cannot terminate solely on the basis that he refused to take that test
• If employee voluntarily accepts to take the test he can terminate the test any time
  

Privacy Act of 1974

• this act aims to protect the privacy of personal information of govt. employees
• signature of the employees is required for release of any information about the individual to someone else
• Federal Sector employees also have the right to know the type of information collected on them , to review the information in their files, to correct or have removed erroneous information and to restrict distribution of the information.
• Act does not currently apply to private employees.
  

Service contract Act of 1965

• Requires any federal service contractor with a contract of $2500 to pay prevailing wages and fringe benefits to its employees
• Provide safe working condition
• Notify employees of the minimum allowable wages for each job classification.
• Those covered by Davis Bacon and Walsh Healey Public Contract Act are exempted from this Act.
  

Walsh Healy Public contract Act -1936

• Applies to govt. contractor ( other than construction ) Industry having a contract of $10,000 to give minimum wage
• These included to manufacturer and suppliers of goods to federal govt.
• it talks about 1.5 times OT in excess of 8 hours a day and 40 hours a week
• The defense authorization Bill of 1986 excluded federal contractor from OT pay requirement after 8 hours of work .In this case 1.5 times to be given only when one work for more than 40 hours in a week.
  

Davis Bacon Act 0f 1931

• Applies to federal construction contractor having a contract of $2000 or more
• Required to give minimum wage to the federal contrator
• these includes to laborer and mechanics.

Fair Labor Standard Act of 1938 ( FLSA)

Nature:

• Ist federal legislation for compensation in private sector
• Administered by wage and hour division of Dept. of labor

Applicability- Two categories

• Enterprise coverage -Having 2 employee with atleast $500,000 sales or employers who are hospital school or govt. agency.
• Individual coverage- Those companies that are involved in Interstate business.

Area of FLSA

• Introduce minimum wage for covered employees
• OT payment
• Identify the criteria that are exempted under FLSA
• Limiting work condition for children
• Record keeping rules

Exempted classification :

• If they are paid more than $ 455 per week .

NB: check the latest amendment and laws regarding exempted categories

• Have supervision of 2 or more full time employees
• Have the authority to hire fire, promote, evaluate
• Performs work that requires specialized knowledge acquired through intellect instruction .
• Those involved in original and creative work
• Those that impart knowledge in school system
• Those that are paid in salary

Minimum wage : Check your state current minimum wage . It varies from state to state.


Overtime:

• For non exempted employee its 1.5 times the regular wage rate, for all compensable time work that exceeds 40 hours in a work week .
• Regular rate of pay includes Basic Pay + non discriminatory bonus, shift premium, production bonus and commission.
• It does not includes discretionary bonus , employees contribution to benefit plans , pays for unworked hours.

Compensatory off or comp off- Public employees compensate with comp off that is 1.5 times the hours worked as OT rather than compensation in cash.
For eg if the worker worked for 20 hours OT then he would get 1.5 * 20=30 hours comp off.

NB: FLSA requires that OT be paid on time worked and not on time compensated. Therefor no OT be paid on sick pay , holiday pay , vacation Pay and jusy duty pay.


Child Labour-

• Children under 14 cannot work under FLSA
• 14-15 age can work in non harzardous , non mining and non farming outside school hours
• they can work not more than 3 hours a day or 18 hours a week in a school days
• Not more than 8 hours on a non school days
  
• Can work between 7.00 am -7.00 pm and in summer from 7.00 am to 9.00 pm.

Record Keeping : It can be positive record keeping or exceptional record keeping.
In positive record keeping actual hours worked, along with vacation, sick and other time off are recorded.
In exceptional only the changes to the regular work schedule are recorded.

Note : Employee Vs Independent Contractor:
An employer has no obligaton under FLSA to self employed independent contractor. Therefore it is critical that organizaton clearly identify which of its workers are employees ( covered by FLSA) and which are independent contractors.

Employee Retirement Income Security Act of 1974

Applicable-

• Those who are 21 years of age
• Employee for the last 12 month and worked for 1000 hours

ERISA Records

Three types of records

1. Summary Plan Description

• Inform about Provision policy and rules of the plan
• Inform about the plan sponsor, administrator and trustees
• Financial sources
• Eligibility
• Disqualifying events
• Claim procedure

2. Annual Report

• Gives financial statements
• No of employees under the plan
• Name and address of the plan fiduciary
• Person compensated in previous years and the amount compensated

3. Report to Participants

• Gives total benefit details
• Gives the details of the amount accrued for the individual and the amount that is not forfeitable

Records maintained

• Records need to be maintained upto 6 years

Vesting –There are 2 types of vesting

• Immediate- 100% is vested when the eligibility is met
• Delayed – could be either cliff or graded .In cliff participants get 100% after specified years . In Graded –Partial vesting is done each year upto the specified years.
  

Enforcement and Jurisdiction

• Department of labour
• Internal revenue Services
• Pension benefit guaranty corporation

Consolidated Omnibus Budget Reconciliation Act 1986

Applies :

• Applies to all organisation that have 20+ employees, who provides group health care coverage
• Applies also to state and local govt.

COBRA Rule:

• 30 days - Employer need to inform employee about the availability of COBRA coverage within 30 days of occurrence
  
• 60 days - Qualified beneficiaries is given 60 days notice to elect coverage under COBRA.

Qualifying event and Period of coverage

• Termination ------ 18 months
• Reduction in Hour----- 18 months
• Death ------- 36 months
  
• Divorce -------- 36 months
  
• Legal Separation ------ 36 months
• Termination or reduction in hours of work due to disablement ----- 29 months
• Employee become eligible to medicare -------- 36 months
• Employee's child loses dependable status ------- 36 months

Payments for health coverage:

• Employer may charge upto 102 % of the group premium for the coverage
• If no payment are made, employer may discontinue COBRA coverage within 30 days of time they are due

Exception :

No COBRA coverage are given in case of termination of service due to misconduct

Discontinuation of COBRA:

• when the employee or dependent ceases to pay the premium
• Become eligible to medical insurance from the other new employer
• gains medicare coverage
• when the employer terminates its health care coverage( when goes out of business)
  

Family and Medical leave Act-1993

Benefits:

• 12 weeks of unpaid leave within 12 month
• Continuation of health benefits
• Reinstatement to the same position or equivalent position at the end of the leave

Applicable:

• Applies to all the public agencies and school regardless of size
• Private employers - 50+ employees( full time or part time) within 75 miles radius during 20 pr more calendar week in current year or preceding years). This week need not be consecutive

Employee eligible

• who work for an employer who is covered by FMLA
• Employed for 12 months which need not be consecutive
• Have worked for 1250 hours during 12 months
  

Employer Action

• within 2 weeks from receiving the request they should confirm whether they are eligible or not
• Once confirmed it cannot be revoked
• If the employer neglects to inform the employee they they are ineligible for FMLA leave prior to the date the leave begins , the employee is considered to be eligible.

Key Employee Exception:

• A key employee is defined by FMLA - a salaried employee among the highest 10% of employee at a work site
• FMLA states that key employee may be denied reinstatement to the position they held or the similar position if the employer demonstrate that it would cause " substantial and grievous economic injury "

Reasons for FMLA leave

• Birth of a child or caring for infant ( both father and mother are eligible, but if father and mother works for the same employer then the total of 12 weeks for 12 months are allowed.
• Placement of adopted child
• Care for spouse, parents , son/daughter with serious health condition
• when employee is unable to perform function of the job due to serious health condition
  
• Pregnancy incapacitation
  
• continuing treatment by health care provider due to period of the incapacity for a period more than 3 consecutive day
  
• Hospitalization for overnight is also eligible for FMLA
  

Types of FMLA

• Continuous - Absent for extended period of time
• Reduced- Employee regular work scheduled is reduced for certain time , either hours or workdays.
• Intermittent- when employee is absent from work for multiple period of time due to single illness or injury.

Ending FMLA leave:

• When employee has used all his 12 weeks
• Illness ends
• Family member dies

For the above 3 reasons employee may return to the same or equivalent position with no loss of benefits.If however employee wishes to continue leave beyond this, employer is under no obligation to grant unless there is a company's policy.

Employee notice for FMLA:

• Employee should give 30 days notice
  

Note: If during an employee's FMLA leave, company shuts down for a week for vacation or business slowdown and employees are not expected to report to work, then the week would not be counted as FMLA.
However a week containing a holiday such as thanksgiving, still counts as a full week of FMLA.

PHR Certification Introduction

Hi,
I am creating this blog to help everyone who is preparing for their PHR (Professional in Human Resource ) certification, conducted by HRCI.

I recently passed this certification exam.This is my attempt to help, guide and provide useful information about the certification.

Will try to post all the reading materials that I have collected during my preparation.

All the best !