| Issue: # 35 May 26, 2009 |
May 22, 2009 |
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Dear :
"On the Lighter Side"
Are you tired of hearing about COBRA? We are too, and this month's newsletter takes a break from that. We would also like to remind everybody to take advantage of Beth Graham, our human resources professional. She has proven to be a valuable resource for many of our clients.
We hope you find these newsletters to be helpful. You may also access archived newsletters on our website to refer back to previous topics. If you know anyone who may find this information of interest, please forward the newsletter (there is a link on the bottom), and they can subscribe themselves. We would appreciate the referral.
Sincerely,
Bill Randell, CLU, CHFC Vanessa Costa, CLU,CHFC
Advantage Benefits Group, Inc.
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New Advantage Benefits Video
The battle with health insurance continues, and year after year we try to present all options and offer ideas to help counter premium increases. It's never an easy time for employers, there are good years and there are some bad years.
We would like to introduce you to our new marketing tool to tell our story to others. The end result is a new video below. We think you will relate to the annual struggle business owners face with health insurance renewals and enjoy the show! Please click on the arrow below, and let us know what you think, or forward to another business owner who will appreciate it.
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| Ask Beth
Q & A
Q: I have an employee who is being paid too much for the position he is currently at, and I would like to reduce his pay. Is it legal for me to do that if I don't reduce pay for any other employees? If he gets angry about it and I decide it's best to terminate him, what do I have to do?
A. It is legal for you to reduce the pay of just one employee, although he may not be happy about it. You should explain the situation to the employee as honestly as possible (ex."With the current economic situation, the company cannot afford to pay you XX for the position you hold. We would be willing to reduce your wage, rather than terminate you."), and then leave the decision up to him. He may not be willing to accept the new terms of employment, so you should be ready to terminate him if that happens. He should be given written notice that his pay will be decreased before he works any hours at the new rate, and you should have him sign the notice, as well.
If you end up terminating him, you will need to give him a letter stating his termination date. If he is carried on your insurance plan, make sure it states when his coverage will end, and include the new COBRA information letter explaining the procedure to apply for the subsidy. Sample letters can be found on our website by clicking HERE. If possible, the termination letter should be signed by the employee before he leaves the building. If not, it should be sent by certified mail, and the employee should sign it and mail it back to be kept in his personnel file.
ANY QUESTIONS?
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National News with Legal Case right here in Salem, Ma.
Check out this interesting article about an employee who was laid off. |
In February, the Massachusetts Supreme Court ruled that Claire Cole, a former secretary for the Department of Public Works in Salem, Mass., should have received full disability benefits after she suffered a heart attack within an hour of learning she would be laid off due to budget cuts in 2000.
Click here for the story. | |
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