HRM 635 What are legally required benefits and why are they required by law?

HRM 635 What are legally required benefits and why are they required by law?

HRM 635 What are legally required benefits and why are they required by law?

Companies and the government are required to provide certain benefits to their employees and citizens. There are benefits required by the federal government and some required by state governments. The federally required benefits are social security, Medicare, Medicaid, health insurance, unemployment insurance, worker’s compensation, and family and medical leave. They are required by law in order to protect employees and help them prepare for retirement and were made in response to workers’ rights and welfare movements. Benefits that companies are required to provide, such as family and medical leave, can be waived if the company has less than 50 employees. An addition to these required benefits could be that companies should be required, by federal law, to provide maternity leave to both the mother and father of a newborn. Currently this benefit is only provided to the mother through the Family and Medical Leave Act of 1993. However, if the federal government was to extend this to the father, it could help reduce gender discrimination within recruitment and help provide families with the support they need.

 

Armstrong, Sharon, Mitchell., & Barbara. (2019). The Essential HR Handbook, Tenth Anniversary Edition. https://library-books24x7-com.lopes.idm.oclc.org/assetviewer.aspx?bookid=141667&chunkid=970802763&noteMenuToggle=0&leftMenuState=1

Companies and the government are required to provide certain benefits to their employees and citizens. There are benefits required by the federal government and some required by state governments. The federally required benefits are social security, Medicare, Medicaid, health insurance, unemployment insurance, worker’s compensation, and family and medical leave. They are required by law in order to protect employees and help them prepare for retirement and were made in response to workers’ rights and welfare movements. Benefits that companies are required to provide, such as family and medical leave, can be waived if the company has less than 50 employees. An addition to these required benefits could be that companies should be required, by federal law, to provide maternity leave to both the mother and father of a newborn. Currently this benefit is only provided to the mother through the Family and Medical Leave Act of 1993. However, if the federal government was to extend this to the father, it could help reduce gender discrimination within recruitment and help provide families with the support they need.

 

Armstrong, Sharon, Mitchell., & Barbara. (2019). The Essential HR Handbook, Tenth Anniversary Edition. https://library-books24x7-com.lopes.idm.oclc.org/assetviewer.aspx?bookid=141667&chunkid=970802763&noteMenuToggle=0&leftMenuState=1

Click here to ORDER an A++ paper from our Verified MASTERS and DOCTORATE WRITERS: HRM 635 What are legally required benefits and why are they required by law?

Benefits that are legally mandated offer workers and their families a retirement income and medical treatment, minimize economic hardship caused by job loss and disability, and cover liabilities stemming from occupational accidents and illnesses. Employers may provide vacation, health insurance, long-term disability coverage, tuition reimbursement, and retirement savings programs to their employees. It is critical to handle mandated and state-mandated benefits (U.S. Bureau of Labor Statistics, 2020). Employers should assess their responsibilities under state and municipal legislation, which may impose extra benefits. Employee perks mandated by law are often regarded as the fundamental necessity for guaranteeing employees’ health and safety. As a result, these benefits are uniform across all states and sectors, and they are governed by federal labor laws that require all businesses to provide them to their employees. Of course, there are always exceptions and restrictions that differ by state, so all companies must adhere to the legal requirements for their unique region (SHRM, 2021). It is usually recommended to consult a legal consultant specialized in these subjects if executives want clarity on labor regulations and obligatory employee perks. However, regardless of where a company is situated in the United States, the following employee perks are almost always required. As shown by the information above, employees are entitled to various benefits that employers are compelled by law to provide. Leaders may better understand the employee perks they should provide by reviewing the material given above. Employers are not obligated to provide health insurance under federal law. However, some significant firms may face financial penalties if they fail to comply with the Affordable Care Act. Employers are often not compelled by law to offer health insurance, pensions, paid sick days, severance compensation, or other benefits to their employees.

 

SHRM. (2021). Mandatory benefits. SHRM. https://www.shrm.org/resourcesandtools/tools-and-samples/hr-glossary/pages/mandatory-benefits.aspx

U.S. Bureau of Labor Statistics. (2020). Perspectives. In Bureau of Labor Statistics U.S. Department of Labor. https://www.bls.gov/opub/btn/archive/program-perspectives-on-legally-required-benefit-costs.pdf

There are a variety of benefits that are offered by employers that are and are not required by law. Benefits that are not required by the law consist of wellness programs, dental and vision plans, retirement savings plans, life insurance, supplement insurance, bonuses, incentives, and salary perk. Even though these are not required by organizations to offer to their employees it can be very appealing to employees and enhance higher-qualified experienced workers when they are offered along with helping to retain current employees also (Downs, 2019). Laws that are required for organizations to offer their employees that cannot be waived are social security and Medicare taxes, unemployment insurance, workers compensation, disability insurance, family medical leave, and health insurance (Dessler, 2017). Other benefits that are required if applicable to employees within the organization are allowing time off for jury duty, voting, and time off for and reinstatement after military service which falls under the Uniformed Services Employment and Reemployment Rights Act (USERRA) (Downs, 2019).

In 2010, the Affordable Care Act (ACA) was initiated and requires all employers that have more than 50 full-time

HRM 635 What are legally required benefits and why are they required by law
HRM 635 What are legally required benefits and why are they required by law

employees are to be offered health insurance (Downs, 2019). As an employee you can waive having health insurance if you have a spouse that has you insured or if you want to obtain your own health insurance at your own expense. Employees can change their health insurance benefits mid-year if there is a change in status such as marriage, birth of child, and/or death otherwise there is no insurance waive from what had been originally signed up for at the beginning of the organizations calendar benefit year. Everyone is to have health insurance of some kind whether it is through an employer, Medicaid, and/or Medicare-depending on age.

With 80% of women becoming pregnant at some point within their working lives and many being single parents a benefit that I feel should be legally required is at least three months paid time off for maternity leave for all new mothers and fathers along with the option of taking additional time off if needed without risking the chance of losing your job position (Dessler, 2017). At my currently employer to be able to be qualified to take 12 weeks off you had to have worked 1250 hours within the year and if the hospital had mandated LOAs and/or on-call hours those were not included within the 1250 hours. For a nurse that had an FTE of a .6 or lower this was challenging since mandates happened frequently. I saw many nurses struggle with the stress of possibly not being able to take at least 12 weeks off even if they had the PTO. I also feel fathers need time off also to adjust to the new lifestyle and home transitions. It is a huge transition and exhausting whether it is first baby or fourth for all involved. According to the Minnesota Department of Labor and Industry (n.d.) FMLA is available to employees that work for a company with 21 or more employees at one site, have worked for the company for at least 12 months and have worked at least half time for 12 months.

References

Dessler, G. (2017). Human resource management (15th ed.). Pearson.

Downs, B. (2019). What employee benefits are required by law? https://www.bbgbroker.com/what-employee-benefits-are-required-by-law/

Minnesota Department of Labor and Industry. (n.d.). Pregnancy and parental leave, FMLA. https://www.dli.mn.gov/business/employment-practices/pregnancy-and-parental-leave-fmla