Pro-rating Merit Increases

Q: We are conducting a brief survey regarding practices around pro-rating merit increases and bonus payouts for individuals who have been on a Leave of Absence (LOA) during the review or bonus period.

Merit Increase Pro-Ration:

1. Do you pro-rate for employees who have been on a LOA during the prior review period?
2. If yes, do you pro-rate the merit increase based on total days on leave vs. days at work?
3. Do you pro-rate for some groups of employees but not for others? (i.e., exempt vs. non exempt)
4. If you pro-rate and you use some other calculation, please briefly explain your “rule”.

Bonus Pay Out Pro-Ration:

1. Do you pro-rate for employees who have been on a LOA during the prior bonus year?
2. If yes, do you pro-rate the bonus payout based on total days on leave vs. days at work?
3. Do you pro-rate for some groups of employees but not for others? (i.e., exempt vs. non-exempt)
4. If your pro-rate, and you use some other calculation, please briefly explain your “rule”

A: Download spreadsheet of the responses.

Sign on bonus pay back clause

Q: Can anyone provide your pay back clause for offer letters that include a sign on bonus?

A: Sign-On and Retention Bonus Wording for Offer Letters sample text:
"You will also be provided with a < $ > sign-on and retention bonus at the time you commence your employment. Subject to all applicable federal and state withholding taxes, the full amount of the bonus will be advanced to you at the time you receive your first paycheck, however, it shall be actually earned on a pro-rated basis over the first year of your employment with the Company. In the event that you voluntarily resign, or are involuntarily terminated “for cause,” within twelve (12) months of the date on which your employment begins, you agree to re-pay Synteract, the unearned, pro-rated portion of this sum, pursuant to the terms stated herein. Should you have any questions regarding the tax implications of such an advance or any part of your compensation, you should consult with your own tax advisor."

Health Reimbursement Accounts - HRA's

Q: I would like to do a quick survey on whether or not anyone has experience with HRA's.
 How have you set your particular plan up? 
Do your employees enjoy this plan?
 Pros? 
Cons? 
Answers to any of these questions would be appreciated as we are thinking of going this route given the expected increase to our current HMO/PPO Medical plans.

Responses:
1) I just completed open enrollment and our Aetna HMO/PPO went up 14% and Kaiser up 16%. Luckily all our other plans cost remained the same. Like you, I will need to reassess for next year which will likely be a higher co-pay plan with some benefit take-aways.

2) For 2010 plan year, we added a high deductible plan ($2,000 for single, $4,000 family) along with a health savings account (H.S.A.) and the premiums were substantially lower. We incentivized employees by having a company contribution (varied by single or family) to the H.S.A. to cover part of the deductible. The HDHP is a good option for those who use the plan a lot since it covers all medical at 100% after the deductible is met. We did not consider an H.R.A. though. We have Blue Shield and also an H.M.O. and a P.P.O. Call me if you want more information.

3) This will be year two for us on a fully consumer driven healthcare platform. We have both HRAs and H.S.A.s. Has been a very successful program for us and reduced costs both for the company and for employees dramatically. Employees were resistant at first due to the unknown but have mostly embraced it now. Key success factors in my opinion are to do a full replacement (employees won't elect it otherwise - too different) and lots and lots of clear education and communication. Lastly, it works best with a true wellness focus and supporting initiatives.

IT Consulting Companies

Q: Do you know of any IT Consulting Companies that you would be willing to refer. Have any of you ever used LAN Solutions and have any comments?

A:
I am familiar with LAN Solutions as I have at least two clients I can think of who use them. I understand they are very professional and their computer experts are excellent. I have also heard that they are reasonably priced for the service they provide. I have not heard a negative thing about them. I feel comfortable recommending them.

I could not glean from the note the type of IT consulting they were seeking but if it is network assistance as 'LAN Solutions' implies, we use SIGMAnet and Logicalis today, and have been reasonably happy with their ability to be price competitive and deliver projects on time. Both companies have solid 'GOLD' premiere level relationships with CISCO and HP, if that this the platform of choice.

Hepatitus B Survey

Q: We are evaluating our current blood borne pathogens vaccination program (i.e. Hepatitis B) for regular and temporary staff. We’d like to hear from our peers with people working in an environments with similar risk for this survey. Specifically:

• Do you require temporary employees be vaccinated for Hepatitis B (for example) OR require that they sign a vaccination waiver or Declination form as a condition of being placed with your Company?
• If yes, what is your requirement for verification of vaccination?
• If vaccination is required for placement, who pays for the vaccinations?
• Do you require the agencies your company works with to communicate information about your Company’s Hepatitis B vaccine program prior to placing their staff with your company?
• Do you require the agencies your company works with to provide safety training surrounding Hepatitis B prior to placing their staff with your company?
• Do you require regular employees be vaccinated for Hepatitis B (for example) OR require that employees sign a vaccination waiver as a condition of being hired?
• If vaccination is required for employment, does your company pay for the vaccinations?
• If vaccination is required, what department administers and monitors the program?
• Does your Company offer Hepatitis B vaccination to all regular employees, or to just those with potential exposure?

A: Download the Hepatitus Spreadsheet for responses.