Unit 9 Final

Running head: LEGALLY REQUIRED BENEFITS 1

LEGALLY REQUIRED BENEFITS 1

Legally Required Benefits

Stephanie A. Gillmer

Purdue Global University

HR 435-01 Compensation

Dr. Ileana Felipe

September 22, 2020

Benefits Legally Required of the Railroad

BNSF is under federal employment benefits. BNSF is required to give employees leave, such as military leave, court leave, family and medical leave, and leave without pay (U.S. Department of Transportation, 2019). Holidays benefits, employees are paid ten holidays each year. BNSF is required to offer health insurance, supplemental dental/vision programs, life insurance, long-term care insurance, and retirement. Benefits are valued by employees and lead to workers that want to satisfy and stay with the organization. BNSF falls under the Federal Insurance Contributions Act that is a federal payroll tax requiring to fund social security and Medicare. BNSF is required to withhold a Social Security tax at 6.2 percent, and the Medicare tax is 1.45 percent of gross compensation (Paychex, 2014).

Legally required benefits are essential to protect the railroad workers’ health, income, and well-being. There are two categories that employee benefits fall under services required by law and what employers choose to offer. The United States Bureau of Labor Statistics legally requires all businesses to require benefits providing workers and families with retirement income, medical care, mitigate economic hardships from loss of work and disability, and covering liabilities resulting from workplace injuries and illness (Paychex, 2014).

The U.S. Department of Labor (DOL) does a satisfactory job of mandating and regulating federal laws for a worker benefits plan. Wages and hours are under the Fair Labor Standards Act (FLSA), controlling standard salaries and overtime pay that affect most private and public employers (U.S. Department of Labor, n.d.). Employers must pay employees at least the federal minimum wage, and overtime pay is one-and-one-half-times the regular rate of pay. BNSF is under the Federal Employee’s Compensation Act (FECA), which establishes a comprehensive and exclusive workers compensation program (U.S. Department of Labor, n.d.). For employee benefits security, there is an Employee Retirement Income Security Act (ERISA). The ERISA controls the employer that offers welfare or pension benefit plans for the employees. BNSF is required to disclose and report on fiduciaries of pension and welfare benefit plans. Certain employers, such as BNSF and plan administrators, need to fund an insurance system that protects certain retirement benefits paid to Pension Benefit Guaranty Corporation (PBGC) (U.S. Department of Labor, n.d.). BNSF has unions that cover most of its employees. The Labor-Management Reporting and Disclosure Act (LMRDA) takes care of the relationship between members and unions. The LMRDA protects the union funds and encourages union democracy. LMRDA requires filing annual financial reports by union officials, employers, and labor consultants. Statutory laws protect employees. BNSF, for example, is made to offer benefits and is held accountable to cover legally mandated benefits.

Resources:

Paychex. (2014, August). What Basic Benefits Must a Company Provide Employees? Retrieved September 21, 2020, from https://www.paychex.com/articles/employee-benefits/employee-benefits-a-company-must-provide

U.S. Department of Labor. (n.d.). Summary of the Major Laws of the Department of Labor. Retrieved September 21, 2020, from https://www.dol.gov/general/aboutdol/majorlaws

U.S. Department of Transportation. (2019, October 7). Benefits of Federal Employment. Retrieved September 21, 2020, from https://railroads.dot.gov/resource-center/jobs/benefits-federal-employment