Employee Benefits – Right Or Privilege

Over the years, incentives have been one of the most significant considerations cited by candidates when looking for jobs. If you’re looking for more tips, McKennon Law Group PC-ERISA Benefits Attorney has it for you. Surprisingly, this was second only to wages. Benefits have played a critical role in the way people look for jobs, considering the high cost of healthcare and drugs. Sadly, we have seen a reduction in the benefits being provided in recent years. It is difficult for businesses to keep pace with the increasing costs of insurance and other employee benefits, causing them to either reduce or remove their offerings.

Some believe that workers are entitled to benefits, believing that providing any degree of assistance is the responsibility of the organization. Others claim that benefits for workers are a luxury and not a right. They agree that any deal is better for this community than none at all. Adding additional fuel to this hotbed crisis – medical bills are the number one reason people file for bankruptcy. So, what is the reality about compensation for workers – is it a right or a privilege?

Let’s start by discussing the several inaccuracies and myths related to compensation for workers. Myth: Only large corporations are mandated by law to offer benefits. Truth: The fact is that although some advantages are mandated, the rest are not. As part of a compensation package, traditional benefits such as healthcare, holiday pay and vacation are regularly provided by organizations of all sizes. Although most businesses do give some or all of these advantages, these “benefits” are not actually regulated by the law from a legal point of view.

Employee compensation for certain applicants can be the determining factor in a dynamic marketplace. In order to recruit and maintain high quality workers, companies offer these advantages. Business owners recognize that it is a valuable investment to have incentives for workers to attract a higher caliber of employees. Therefore, though the corporation needs to spend substantial money to have this form of coverage, they do so as an investment in growing business and not because they are needed to attract and maintain a talented workforce. The world of today is highly competitive. Usually, individuals who have graduated with a BA or even MBA work only for top businesses. This suggests that small to medium-sized companies need to find innovative ways to make the possibilities more enticing in order to compete.

Another myth is that individuals are entitled to vacation time off. Again, as most individuals assume, this is something given, not required by statute. Today, if it is given by the employer when it comes to receiving holiday time, it must be handled in the same manner as salaries, being paid everyday, which is law. The other considerations shielding the employee from unused holidays are that the employer will not renege after it is received by taking it back and if the employee leaves the company, he or she must be paid earned income independent of termination or voluntary leave.