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Many people reckon employment perks to be fringe benefits given by an employer to employees who are performing an extraordinary job or to those employees with seniority in the company. Employment perks may be given to some while others may not receive this, which generally brings up questions regarding rights of an employee with respect to the company’s policy regarding perks. Below are a few questions that have been answered regarding employee perks program: Is it possible for an employer in California to reduce an employee’s perks without informing the employee?
An employer has rights to alter the perks or the fringe benefits that are given to an employee unless there is a written employment contract to the contrary. The decision on how a prospective vacation time may be earned by the employee may be taken by the employer who may also lower compensation plans. As per California law it is necessary for an employer to refund any expenses that were incurred by an employee as a result of employment (fuel expense is an example). If a company is not giving any perks to its older employees, can it give it to its new employees?
It is up to the employer’s discretion which employees should be given perks. However, the employer should not discriminate based on race, sex, age, religion, or disability. One would find inequality in the corporate world with respect to new and the old employees. Perks (in the form of stock options, high salaries, etc.) are usually offered to the newer employees so that quality employees may be hired. It is generally difficult to find quality employees. Older employees most of the times do not qualify to receive perks. However, older employees may be given some kind of token payment so that they are not losing out much. If the employer provides perks only to the upper management would it considered lawful?
Offering benefits under the company’s perks plan is up to the employer and likewise who would be eligible to receive this is also at the employer’s discretion. However, the decision on who would be eligible should not be based on discrimination that is related to, gender, age, religion, or disability. Again, if the employer is giving perks to the upper management is alright as long as the decision to provide perks is not discriminatory. If the employee does not want to go on vacation leave, can an employer force the employee to take it?
The employee may be directed by the employer as to when to take vacation time. The employer may even compel one to take vacation time to cover person time off. There are no laws that regulate perks such as paid vacation or personal time off (PTO). Wages and overtime are regulated by the Fair Labor Standards Act. If an employee has not worked, then there is no requirement for an employer to pay for it. It would include employee’s vacation time, whether forced or not. If a company has informed an employee that no alteration would be made to the employee benefit package; would it be legal for the company to make alterations to it.
As per law it is not necessary for a company to provide any perks (job benefit is a perk) to its employees. Therefore, alterations may be made to the employee benefits by the employer at any point of time or it may be discontinued. In the event of the existence of a written contract where it is mentioned that the employee benefit package will never change; the company would violate the employment contract if alterations are made to the employee benefits. Employee perks are a good way to motivate an employee. However, changes to the existence plan may create some unrest amongst the employees and can have legal implications. When in doubt about the law, it's always best to ask an employment lawyer.
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