Supplemental materials for LEAP 2025 session The Benefits Workshop
When tailoring benefits to appeal to younger members of your workforce, remember your older employees, too. It’s illegal to exclude employees from using any of your benefits on the basis of age.
Recent case: Located in an area of Ohio with limited affordable short-term apartment rentals, Cedar Point Amusement Park provides housing for seasonal employees who otherwise might not find a place to live. Rents are significantly lower than the prevailing local market rates. During 2021 and 2022, Cedar Point decided to offer subsidized housing only to seasonal employees aged 29 and younger. Those 30 and older were specifically excluded from the benefit.
As a result, the amusement park was unable to attract older workers because they would have no place to stay. This caught the EEOC’s attention after two applicants over age 40 turned down jobs because of the lack of affordable housing.
The EEOC sued, alleging that denying a benefit to workers over age 40 constitutes age discrimination under the Age Discrimination in Employment Act. Now, Cedar Point has agreed to settle the lawsuit by rescinding the restrictive housing policy, making apartments available to all employees 18 and older. The park will pay one of the applicants $32,875 while the other will receive $17,125. (EEOC v. Cedar Fair, ND OH, 2024)
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See other supplemental materials available.
Supplemental materials for LEAP 2025 session The Benefits Workshop.
Your handbook probably states you reserve the right to amend it at any time for any reason. That disclaimer helps protect against claims that your handbook is a binding contract. But that kind of language can cause problems if your handbook describes benefits that may be covered by the Employee Retirement Income Security Act.
Recent case: When Bristol Compressors needed to close a factory, it first decided to cancel a severance plan it had embedded in the employee handbook. The handbook included a contract disclaimer saying it could only be amended in writing by the HR department. Before closing the plant, the company’s board of directors voted to terminate the severance plan and cut it from the handbook.
Several workers sued, arguing that the severance plan was covered by ERISA and could only be changed by HR. After all, the handbook said changes had to be carried out by HR.
The 4th Circuit Court of Appeals ruled the workers were right; the company hadn’t followed its own rules. Therefore, the ERISA-covered severance plan was still in effect at the time the plant closed. (Messer, et al., v. Bristol Compressors, 4th Cir., 2023)
Advice: Review your handbook and consider removing any references to potential ERISA-covered benefits.
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1. Be prepared
Review the facts ahead of time to make sure the termination decision was sound. Document legitimate business reasons supporting the action. Ensure the termination won’t breach contractual obligations, and that people closest to the situation will confirm the underlying facts.
Prepare a meeting script so that when emotions become raw, you can stay on message and cover all the issues that need to be addressed.
2. Determine the right place
Don’t add to the employee’s embarrassment by meeting where others might see or hear what’s going on. Select a location where there will be no interruptions. If the employee becomes argumentative, you may need to get up and leave once you’ve communicated the decision. For that reason, don’t use your own office.
3. Have a witness
If another observer is present, the employee will have less opportunity to later make false accusations about events that occurred during the meeting. The witness should be a manager—one who is not emotionally invested in the termination.
4. Don’t debate the decision
You don’t need the employee’s agreement that the termination is justified. Just communicate the decision. Refuse to engage in any argument over its merits. If the termination is because of performance reasons or misconduct, the employee should already be aware of the reasons behind the decision. You gain nothing by trying to convince the employee that he or she deserves to be fired. Such a discussion will only ratchet up the tension.
If the person is being fired for performance, don’t offer compliments on aspects of his or her work. Doing so may make you feel better, but it will only infuriate the worker because it will appear that he or she is being fired for no reason.
5. Focus on transition issues
If the employee has company property, make arrangements now for its immediate return. If the employee has a noncompete or other continuing obligations, inform him or her of your expectations. Make arrangements for removal of the employee’s personal belongings.
6. Handle final pay
In some states, when an employee is involuntarily terminated, the employer must pay all earned and unpaid wages within 24 hours after the employee’s demand. To avoid any potential dispute over when a demand was made, most employers simply have the final paycheck available at the termination meeting.
7. Manage requests for personnel records
Some state laws permit terminated employees to request copies of their personnel records. Know the law in your state. Review these types of requests with your attorney.
8. Consider severance
When severance benefits add up to a significant amount, they should be conditioned upon an agreement releasing the company from any and all legal claims. Employers must meet various legal requirements for such releases to be enforceable. Work with your attorney to make certain your release agreements are enforceable.
9. Document the discussion
After the meeting, you and the witness should document what happened. If you did a good job of preparing a script and sticking to it, you should be well on your way to completing your documentation even before the meeting begins.
10. Maintain confidentiality
Resist the urge to use this event as a lesson to other employees—or to put to rest rumors about why the employee left the company. With the exception of those who have a legitimate need to know more, employees and customers should simply be told that the person no longer works for the company.
Final note: Treating departing employees with dignity and respect will go a long way toward minimizing the inevitable tension that exists when communicating the termination decision. Making a plan and sticking to it are the keys. By doing so, you will avoid the traps that often cause termination meetings to be more stressful and combative than they need be.
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Generational differences emerge
The youngest employees—members of Generation Z—reported the highest rates of witnessing workplace harassment at 52%, compared to just 33% for baby boomers. Such a significant gap suggests younger workers have different perspectives on what constitutes harassment. Additionally, Gen Z identified harassment from external parties (clients, customers, patients) at higher rates than other generations, 21% compared to a generational average of 14%.
Reporting barriers persist
While most harassment incidents are reported, concerning trends emerged around reporting channels and outcomes:
Training and policy gaps
The survey identified several areas where organizations are falling short:
Remote work impact
An interesting finding emerged around work arrangements: 51% of remote employees reported feeling “extremely protected” from harassment, compared to just 38% of fully in-person workers. This suggests that employers with traditional office environments may need to institute additional anti-harassment safeguards and protocols.
Effect on workplace belonging
The impact of harassment extends beyond immediate incidents. Among employees who said they had experienced harassment:
The numbers are significantly better for those who haven’t experienced harassment, with 82% saying they feel protected.
Harassment-prevention strategies
The report outlines several key steps organizations can take to build safer workplaces:
1. Improve awareness. Traliant recommends providing ongoing training about physical, verbal and visual forms of harassment. Use scenario-based training to help employees understand “gray areas.” Ensure employees and supervisors alike know how to recognize subtle forms of harassing conduct.
2. Strengthen reporting mechanisms. Implement multiple, easily accessible harassment-reporting channels, including ways for employees and managers to anonymously file reports. Clearly communicate reporting procedures to all employees.
3. Address industry-specific needs. Harassment abounds in some work environments more than others, especially those that are male-dominated or those in which employees work far away from home-office oversight. Employers should customize anti-harassment policies and training to reflect the unique dynamics of their workplaces. Consider the specific challenges that may exist within your industry. Adapt anti-harassment training so it reflects the realities your workforce faces.
4. Prevent retaliation. Implement confidential harassment-reporting systems. Create safeguards to protect employees who report incidents. Establish and publicize clear anti-retaliation policies.
Creating lasting change requires more than just implementing policies and training programs. Employers must address the fundamental fears that prevent employees from reporting harassment while ensuring swift, effective responses when incidents occur.
In the 48 hours after President Trump took office on Jan. 20, he issued a torrent of executive orders and actions, many of them bearing directly on issues that matter to HR professionals and employers. For example, high-profile orders paved the way to deport roughly 11 million immigrants without legal status and increase immigration enforcement, which could eventually affect labor availability in some industries.
Other executive actions may have more immediate effects on hundreds of thousands of employers. Broadly speaking, Trump’s orders addressed actions the federal government is now authorized to take to advance the administration’s policy goals. Ultimately, many will trickle down to affect employer operations and HR.
On the campaign trail, Trump routinely decried programs designed to foster diversity, equity and inclusion. Among his executive orders were several that:
Several orders addressed culture-war controversies around gender identity. Trump:
HR professionals in industries that traditionally employ immigrant workers should pay attention to executive orders that:
One of the vaguest but potentially most far-reaching orders directed all executive branch agencies to stop issuing new regulations.
Other orders directly targeted employees of the federal government. They:
The High Court’s decision in E.M.D. Sales v. Carrera puts to rest fears of a sharp increase in Fair Labor Standards Act misclassification cases claiming employers didn’t take enough care when making decisions about employees’ exempt or nonexempt status.
The case: A group of employees who worked for EMD Sales, a food products distributor, filed a lawsuit alleging they were misclassified as outside salespersons and therefore should have received overtime pay when they worked more than 40 hours in a workweek.
When employees challenge their exempt classification, employers have the burden of proving they classified the employees correctly. The must convince a judge or jury that they properly followed the specific classification tests laid out by Department of Labor rules.
But how heavy is that burden? Federal appeals courts have disagreed. In the E.M.D. Sales case, the 4th Circuit Court of Appeals said the company had to prove they were right by clear and convincing evidence. Think of that as a big tip of the burden-of-proof scales—in this case, in favor of the employees. Every other federal court of appeals that has addressed the issue has held that the preponderance-of-the-evidence standard applies, a much slighter tip of the scales.
The Supreme Court unanimously agreed that the preponderance-of-the-evidence standard was appropriate in FLSA classification cases. It sent the case back to a lower court for a judge to determine if the employer had proven it classified the employees correctly, under the preponderance-of-the-evidence standard. (E.M.D. Sales v. Carrera, U.S. Supreme Court, 2025)
Advice: Always be prepared to show how you arrived at an exempt/nonexempt decision and that you got the classification right. Do this by being able to describe your employees’ exact job duties. Then match those duties to each of the FLSA’s duties tests: administrative, executive, professional, highly compensated employee or, as in this case, outside salesperson. Be prepared to “show your work.” If you follow these steps, you will likely meet the preponderance-of-the-evidence standard.
Follow these interviewing rules:
Recent case: Donna sued the Port Authority of New York and New Jersey, claiming race discrimination was the reason she wasn’t hired. She said an interview committee used subjective criteria to reject her.
The Port Authority explained that the committee asked all applicants the same questions, which were all job-related and designed to address applicants’ technical knowledge, general competency and communication skills. Plus, it said no interviewers “injected their own additional subjective criteria into the evaluation process.”
The court sided with the employer and dismissed Donna’s lawsuit. It concluded that no interviewers deviated from an approved-in-advance list of questions. Each noted their reactions to candidate answers, ranking applicants by assessing how they responded. (Glaesener v. Port Authority, 3rd Cir., 2024)
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In all cases, HR must review the reason for the termination and ensure the decision will be defensible in court should the former employee decide to file a lawsuit.
It is almost always best to focus on objective reasons rather than resorting to subjective assessments. Ensure that all terminations are based on solid business reasons. And be sure to carefully document why you decided to terminate, even if you don’t share the rationale with the employee.
Recent case: The EEOC has settled a case involving the termination of the only Black project manager working for Sureste Development. At first, the real estate company said the manager performed well. However, he was terminated less than a year after he began working at Sureste. The stated reason was that he was “lazy” and not a good fit for the company’s “culture.”
He filed a complaint with the EEOC claiming he had been assigned more work than the company’s other project managers who were not Black. The EEOC sued on his behalf.
Then Sureste changed its story, explaining it had terminated the man because it had eliminated his position. But during discovery, it turned out that Sureste’s records showed it had promoted a significantly less-qualified white employee to the same position the Black project manager held.
Instead of taking its chances in court, Sureste agreed to settle the case. The fired project manager will receive $70,000, and the company must train all its supervisors, managers and employees on discrimination.
Note: Shifting reasons for a termination hardly ever works out for employers. The more your explanation “evolves,” the less credible your company looks.
Advice: HR should monitor what happens after a worker is discharged. If someone was fired because his or her position was eliminated, make sure no one is hired to fill that position soon after.
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States are emerging as prime sources of new employment-related laws. Congress didn’t pass much in the way of employment laws at the federal level this year. The Supreme Court largely steered clear of issuing opinions on employment-law questions (although one case did address sex discrimination).
That has left states to pick up the slack, subjecting employers to a dizzying array of new labor and employment laws. Here is a sampling of new laws scheduled to go into effect on Jan. 1, 2025, or soon after.
Background checks
Child labor
Several states have tightened their child-labor laws. Others loosened them.
CROWN Act
Domestic violence leave
Paid sick leave
Pay transparency
Several states require starting salaries to be posted with job ads.
Workplace safety
Final note: This list does not cover every new law. Check with your state department of labor for the latest minimum-wage increases and any other new laws or regulations effective in 2025.
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