A recent survey revealed that 74% of employers reported no change in the employer matching contribution to their employee's 401(k) plan despite the economic crisis. According to the report, nine out of ten U.S. companies offer an employee 401(k) plan. Other key findings included:

• In 2008, 94% of companies provided some sort of employer match to the employee's individual 401(k) contribution compared to 93% in 2002 when the survey was first conducted.
• The most common employer matching contribution is 3% - 4% of a participant's pay; the most common employee contribution is 5% to 7% per paycheck.
• 44% of participating organizations offer automatic enrollment in 401(k) plans;56% do not. President Obama's FY2010 budget included proposals for mandatory automatic payroll-deduction into workplace plans or individual retirement accounts.

According to a recent survey, despite it being one of the most challenging hiring environments in the nation's history, 41% of workers who were laid off from full-time jobs in the last three months reported they found a new full-time, permanent position while another 8% found part-time work. The survey also pointed out that more men than women laid off in the last 12 months were able to find full-time employment and workers ages 35 - 44 were the most likely to find full-time jobs after a layoff.

Because we want to best serve our readers, we feature a segment of our Newsletter where you can submit questions directly to our OperationsInc professionals. Do you have a question related to the management of the Human Resources function? Email it along to enewsletter@operationsinc.com. The best ones will make it into a future newsletter, along with the answer... and those that don't get published will still receive a response.

This week's question:
"Can a female employee on maternity leave be dismissed due to a layoff / reduction in force? What are the legal consequences for dismissal?"

--- Director of HR, Financial Services

Answer:
While this is a slippery slope and one that requires the professional guidance of an experienced attorney, in short the answer is yes. The basic rule of thumb is that if someone was otherwise eligible to be let go due to staff reductions they cannot be "protected" from a layoff simply because they are out on maternity leave. If you cannot do so then you run the risk of complaints and law suits via the EEOC, CHRO and even the local attorney. Lastly, even with the protection you are afforded under the law for a supported decision to proceed here beware of the backlash from such a move that may come from your employees and even members of your community.

"You only have to do a very few things right in your life so long as you don't do too many things wrong."

- Warren Buffett

Information provided in The OperationsInc Navigator is researched and reviewed by the HR experts at OperationsInc. The information in every issue of The OperationsInc Navigator is in part gathered via information available in the public domain, as well as in part the original, copyrighted work of OperationsInc and is protected under U.S. copyright laws. As such, you may not reprint or publish in any format any article or portion of article The OperationsInc Navigator without the express permission of OperationsInc.

OperationsInc provides the information in this e- newsletter for general guidance only. The information provided herein should not be used as a substitute for consultation with professional human resources, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation.

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