Consumer spending fell 0.04% in March, the second such decline in three months as the payroll tax increase and higher gas prices shook consumer confidence. Analysts had expected no change in consumer spending in March but it appears the 6% payroll tax hike has in part impacted retail sales. Higher gasoline prices also meant lower overall gas sales which dropped 2.2%. Gas prices seem to have had an impact on auto sales as well, which fell 0.06%.  Increases in payroll taxes and higher gasoline prices do not appear to be the only reasons for the decline in retail sales. The federal government also tightened monetary policies and began cutting overall spending to help reduce the national budget deficit. All things combined, it appears there has been a slight loss of momentum for the nation’s economy. A consumer confidence index released by Thomas Reuters and The University of Michigan show a drop from 78.6 to 72.3 in April. Despite the somewhat gloomy picture, economists remain optimistic about ...

A new study shows how the Patient Protection and Affordable Care Act (PPACA) could impact health care benefit participation rates of part-time workers next year. Beginning in 2014, the PPACA mandates affordable health care coverage for people who work more than 30 hours a week. According to the 2012 Study of Large Employer Health Benefits from the ADP Research Institute, part-time workers at large companies in the United States that are eligible for health care benefits elect coverage at a significantly lower rate than full-time workers. Data shows that 77 percent of eligible full-time workers choose health coverage, only 15 percent of part-time employees who are eligible for coverage actually do so. As a result, people who are employed part-time represent less than 5 percent of the total population that is taking part in their employer’s health coverage. According to the study, the average worker contributed about $7,225 each year in health premiums for each worker enrolled in the employer’ ...

Despite laws requiring fair pay for equal work, gender bias remains a problem in the workplace. The Equal Pay Act of 1963 states that employers may not discriminate based on gender when it comes to wages. Additionally, the Lily Ledbetter Fair Pay Act, passed four years ago, also enforces equal pay for men and women and states that a case may be filed by an employee 180 days after any discriminatory paycheck is received. While another bill, the Paycheck Fairness Act is currently before Congress, Alison B. Marshall of Jones Day encourages employers to be mindful of pay equity. Even if the Paycheck Fairness Act does not pass, officials from the Equal Employment Opportunity Commission (EEOC) and the Office of the Federal Contract Compliance Programs are moving forward more aggressively in their investigations of pay disparity. A task force implemented by President Obama’s administration is currently auditing employers in New York, Chicago and Phoenix to determine companies’ compensation practices ...

Many employers struggle with this question and it is an important topic to consider when developing or revising your company’s employee handbook. If you do not have guidelines outlining accrued vacation, the state you operate business in may decide it for you. Some states have laws on the books regarding employee compensation, including payment requirements for accrued vacation. For instance, in Ohio if an employer does not have any policies in place, they are obligated to pay all remaining vacation time regardless if an employee is terminated, resigns or position eliminated due to downsizing. As a way to control costs and not reward bad behavior, some companies have chosen to differentiate accrued pay policies for employees who are terminated vs. those that resign or are laid off. One policy example states that accrued vacation will be paid to non-terminated employees who provide notice (typically 2 weeks), participates in an exit interview and returns all equipment and materials belonging to t ...

With all the negative information out there regarding the U.S. economy, recent payroll numbers indicate a bright spot in a once gloomy economy. A recent U.S. payroll data report has revealed that more jobs were added last month than previously projected. Employers added 236,000 jobs vs. the 160,000 forecasted, bringing the unemployment rate down to 7.7%. This is the lowest unemployment rate the U.S. has seen in more than 3 years, bettering rates not seen since the end of 2008.  The latest job numbers report suggests that the economy is moving in a positive direction and moving away from fiscal austerity or tactics a government takes to reduce budget deficits. All eyes will turn toward the Federal Reserve and its policy board to determine if it will raise interest rates as the economy continues to strengthen. In the past, the Federal Reserve has stated that it will raise interest rates once the unemployment rate drops to 6.5%. With the positive payroll data, investors are waging that the U.S. econo ...