Section 89: close the new Pandora's box

Article Abstract:

The Tax Reform Act of 1986, through Section 89 of the Internal Revenue Code, states that health and welfare benefit plans cannot discriminate in favor of highly compensated employees (HCEs). There are special rules for defining excludable employees, compensation, HCEs, and employees. Each optional benefit plan is treated as separate for testing purposes. All plans must satisfy two general requirements: at least 80% of a company's non-HCEs must be covered under the plan. Otherwise, the plan must pass the 90%-50% eligibility test, the 50% eligibility test, and the 75% average benefit test. Employees can help by learning about Section 89, identifying the data required for testing, developing in-house expertise to perform the test, and developing a plan to implement any needed changes.

Compensation and benefits, Executives, Executive compensation, Employee benefits

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Equal opportunity: an incomplete evolution

Article Abstract:

Some employers blame increasing employee turnover rates among women and minority group members on affirmative action programs; these managers claim that higher salaries are offered to women and minority group members in order to attract them away from their current employers. Whereas this may be true in isolated cases, the real reason for increased turnover among women and minority employees is the continuing discriminatory attitudes of coworkers and supervisors, despite equal employment legislation. Employee and supervisor training programs need to address discriminatory attitudes in order to prevent high turnover levels. Training programs with affirmative action goals and equal employment opportunity objectives are discussed.

United States, Analysis, Affirmative action, Race relations

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Gay rights and workplace discrimination

Article Abstract:

Federal courts before 1987 generally rejected job discrimination claims based on the sexual orientation of the claimant. Both the courts and the Equal Employment Opportunities Commission had ruled that employment actions taken against people because of their sexual orientation did not constitute discrimination under Title VII of the Civil Rights Act. Homosexuals still do not have anti-discrimination protection in private employment, but recent court cases suggest that such protection in public sector employment will soon be granted. Private sector personnel managers should begin to prepare the appropriate procedures and policies before these issues are litigated.

Gays, Management, Employment, Discrimination against gays, United States. Equal Employment Opportunity Commission

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