Week 4 Discussion

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The Employee’s Safety Nets Unemployment compensation provides income to out-of-work employees who have lost their jobs through no fault of their own and are ready and willing to work. “Fault” means that an employee termination must have resulted from willful misconduct. Poor performance is not willful misconduct. Absenteeism may or may not be willful misconduct. In general, employees cannot be denied unemployment benefits unless the willful misconduct is clearly disqualifying. Employers are better off if claims are denied because unemployment tax rates are variable, increasing when the number of terminated employees is high and decreasing when the number of claims is low.

Workers’ Compensation is a mandated insurance program covering injuries on the job. Not every injury is covered. Driving injuries, chronic or preexisting illnesses, workplace violence, or injuries while under the influence of drugs or alcohol are not covered. The most important consideration in claims is immediate reporting. Failure to report, such as letting a back injury go unreported until the condition worsens, can complicate a claim.

Social Security benefits fall into three categories: retirement insurance, Medicare, and disability. Retirement insurance begins at the age of sixty-five, with the payout amount determined by the retiree’s wages over his or her working life. Medicare is a health insurance benefit for persons who are sixty-five or older, and it consists of two parts, Part A for hospitalization and Part B for supplementary medical insurance. Persons who become totally disabled for any reason may receive Social Security disability benefits.

The ERISA regulates employer-provided pension funds as a way to protect workers’ pensions from vanishing due to fraud or mismanagement. ERISA does not include offering a pension plan. But if a plan does exist, ERISA applies.

Safety net laws are complex. Human resources managers must stay current in this area of law as it is constantly changing.

Links to Resources

Review the following links to learn more. Social Security: Retirement Benefits State Workers' Compensation Officials

State Unemployment Insurance Benefits Employee Retirement Income Security Act (ERISA)

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South University

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Additional Material

From your course textbook, Employment and Labor Law, read the following chapter:

The Employee’s Safety Nets: Unemployment and Workers’ Compensation, Social Security, and Retirement Plans