Different Benefits and Policies for Management

Is it legally acceptable to have different benefits and policies for management? If yes, would it apply to all managers or only to executive management (offices of the company)?

Specifically,
1. If we have a point system for attendance and tardy can we eliminate management or executive management from the policy.
2. What type of additional benefits would be acceptable for management or executive management.
3. If you have a different benefit package for management or executive management do you have to disclose that to the employees?

We are a privately held company. Currently, we allow our management and executive management to have more flexibility in their work schedules. This is allowed because managers and offices often take work home, come in early, stay late, etc. All other employees arrive at 8:00 a.m. and trust me you don't want to be at our front door at 5:00 p.m because you will be trampled.

Comments

  • 4 Comments sorted by Votes Date Added
  • Yes. You can have different benefits for management vs. hourly employees. The one issue you will have to be concerned about is for your ERISA type benefits (medical plan, insurance, retirement, etc), ERISA has non-discrimination provisions which I believe are based on compensation (highly compensated individuals can not be favored). You would have to get with and ERISA expert on that.

    Good Luck!
  • I have worked several places where management received benefits that regular employees did not receive. For instance, they got one week more of vacation or more sick pay, etc. This information was never broadcast among the regular employees. But some benefits are illegal. For instance, your cannot have a 401k plan that discriminates in favor of your highly compensated employees.

    If you are just looking at giving your management extra leeway as far as tardiness and absences go, you are probably ok. But beware; regular employees often look to management to set the standard. If your managers come in late all the time and are allowed to get away with it, you can bet you will run into problems with your regular employees. If you want to give your managers something extra, stick to something less visable.
  • tpace: Unfortunately and fortunately, the working world does allow for different legal levels of perks, benefits, and management plans, etc. Company vehicles, bonus plans, insurance coverage, profit sharing, vacation and days off. We in management are 25 hour a day and 8 day aweek employees, we should bleed the company blood, and we readily accept the rewards. We are not compensated nor justified by the number of hours worked nor where we work those hours. It is through the individual's concepts, values, trust worthiness, loyality, morals, and leadership in the private sector that secures the relationship with the private company and the individual management person, the EXEMPT EMPLOYEE. We are exempt from the Fair Labor Standards Act and the provision set forth. The FLSA seperates us from those who are legally protected from abuses the non-exempt employee. In the private sector the company can provide whatever it wants as long as it does not abuse the provisions set up by the owners/board of directors/ stockholders, etc.

    I hope this dialogue has helped your concerns! Be looking for my Dandy Don partner's reflections which are normally more profound and quickwitted than mine. You see his fingers and his mind is alot faster than mine, but he is good! Pork
  • >Specifically,
    >1. If we have a point system for attendance and tardy can we
    >eliminate management or executive management from the policy.
    >2. What type of additional benefits would be acceptable for
    >management or executive management.
    >3. If you have a different benefit package for management or
    >executive management do you have to disclose that to the employees?

    #1 Although it isn't written down as a formal exemption at my company, exempt employees are not "dinged" for tardies or absences unless their particular manager is searching for something TO ding them for (which is horrid I know).
    #2 Additional bennies for management at my company are: instead of just paying 100% of employee's medical, paying for their whole family, stock options, additional PTO, use of "box" seating at local arena/concert hall, company logo shirts and sweatshirts, a laptop, a cell phone and (for some) a palm pilot.
    #3 There are no secrets here about what management gets...

    Cinderella
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