Q: A plan covers both retirees and active employees and is subject to the market reform requirements of the Affordable Care Act. For retirees, the employer that sponsors the plan contributes $300 per year multiplied by the individual's years of service for the employer, capped at $10,000 per year. As the cost of coverage increases over time, how is it determined whether the employer's contribution rate has decreased for purposes of maintaining grandfather status?

A: In this example, the employer makes contributions based on a formula. Accordingly, the plan will cease to be a grandfathered health plan if the employer decreases its contribution rate towards the cost of coverage by more than five percent below the contribution rate on March 23, 2010. If the formula does not change, the employer is not considered to have reduced its contribution rate, regardless of any increase in the total cost of coverage. However, if the dollar amount that is multiplied by years of service decreases by more than five percent (or if the $10,000 maximum employer contribution cap decreases by more than five percent), the plan will cease to be a grandfathered health plan.

Q: With the temperature just reaching 80 degrees outside, I've already heard grumblings from a few employees who work in our greenhouse about it feeling too hot to work. There's no maximum temperature for working, is there?

A: No, there's not. OSHA does not recognize a maximum temperature for employee exposure during work. Certainly, in some situations, exposure to excessive heat can lead to heat stress that could lead to heat exhaustion, fainting, heat stroke, and other conditions which should be addressed.

Employers should take reasonable precaution to ensure the workplace is safe for the worker. This duty includes taking effective measures to protect workers from heat; however there is no magic maximum temperature.

Q: I work at a motorcycle shop where we sell and fix bikes and other recreational vehicles. We are a certified Harley-Davidson dealer. The owner is going to have his son come in and work for the summer. His son is 14, and will turn 15 mid-August. It this okay or is there some restriction because of the son's age?

A: Even though it's the boss's son, the shop should not permit the child to work in this workplace until he is at least 16. Connecticut places significant restrictions on the employment of minors – those under 18 years old. Kids under 15-years old may be may work as a bagger, cashier, or stock clerk in mercantile establishments, per Public Act 08-108 and a few other positions such as baby sitting, newspaper carriers, summer camp counselors, and as golf caddies. For 16 to 18 year olds, there is a greater opportunity to work, but not in positions that the Connecticut DOL lists as "Prohibited Occupations. There are also restrictions on hours of work and the requirement for the teenagers to get "working papers." The CT-DOL has posted information about the specific rules for employment of minors on its website: http://www.ctdol.state.ct.us/wgwkstnd/faqs-minors.htm.

Q: What is the minimum wage for minors?

A: For minors working in agriculture or government, it is 85% of minimum wage ($8.25 as of January 1, 2010), and for minors working in other industries, it is 85% for the first 200 hours.

Q: We are firing an employee for serious insubordination. When we notify the employee and send him on his way, can we have him sign something agreeing not to sue us and not to file for unemployment compensation?

A: Well, you can ask the employee to sign such a document, although it will likely not be valid or enforceable. First, an employee cannot legally waive his or her rights under wage law or unemployment compensation law. Even if the employee signed a document the purported to express his agreement not to file for unemployment compensation benefits, that document would not hold up with the Department of Labor. That doesn't mean the employee will be found eligible to collect UC benefits, just that he can file a claim for them – a claim which you the employer could contest.

Further, for an agreement or contract to be legally valid and enforceable, regardless of the other terms of the contract, both parties must be receiving valid "consideration" in exchange for giving up something. Unless you give the employee something more than what is already entitled to (meaning more than just his final paycheck for hours worked, which he is already entitled to), if he signs a contract agreeing to relinquish his right to sue but doesn't receive consideration or compensation for it, that contract is not valid. This consideration can come in many forms, but there is no contract if the employee gave away rights without receiving something in return.

Have a question you would like answered? Send us an email at hr@gbac.com.

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GBAC has been providing superior insurance products and services to businesses and families for over 35 years. Our dedicated team of benefit experts specialize in every type of insurance coverage. With unparalleled customer service, our mission is to provide the very best value to our clients. Let GBAC take some or all of the responsibility of managing your healthcare program and allow you more time to focus on your business. For more information, please call 203.239.3843.