Quick Reference Glossary

Due to the fact that many Federal and State laws are unclear or complicated, the following definitions were extracted to help clear up any misconstrued or misunderstood meanings.

Administrative - Employment in a bona fide administrative capacity means work by an individual

1. Whose primary duty consists of the performance of office or non-manual work directly related to management policies or general operation of his employer or the customers of the employer.
2. Who customarily and regularly exercises discretion and independent judgment.
3. Who regularly and directly assists an employer or an employee employed in a bona fide executive or administrative capacity, who performs under only general supervision work along specialized or technical lines requiring special training, experience or knowledge, or who executes under only general supervision special assignments and tasks.
4. Who is paid for his / her services a salary of not less than $155 per week, exclusive of board, lodging, or other facilities.

At-Will Employment – An employment relationship where the employer has the right to fire a worker for a cause at anytime -- usually without any notice.

Cobra - A federal law known as COBRA (short for the Consolidated Omnibus Budget Reconciliation Act of 1985) provides a vital bridge between health plans for qualified workers, their spouses, and their dependent children when their health insurance might otherwise be cut off. Because of that security, COBRA has been hailed as a much-needed safety net for families in the midst of crisis, such as unemployment, divorce, or death.

Under COBRA, if you voluntarily resign from a job or are terminated for any reason other than "gross misconduct" you are guaranteed the right to continue your former employer's group plan as individual or family health care coverage for up to 18 months at your own expense. In many cases, your spouse and dependent children are also eligible for COBRA coverage, sometimes for as long as three years. However, individual plans - that is, plans you buy on your own, rather than through work or an association - are not subject to COBRA law, and once you lose that coverage, you won't be able to get an extension under COBRA.

Employee – A person who is hired by another person or business for a wage or fixed payment in exchange for personal services and who does not provide the service as part of an independent business; Any individual employed by an employer.

Employer – A person or business that pays a wage or fixed payment to another person(s) in exchange for the service of such person.

Executive - Employment in a bona fide executive capacity means work by an individual:

1. Whose primary duty consists of the management of the enterprise in which he is employed or of a customarily recognized department or subdivision.
2. Who customarily and regularly directs the work of two or more other employees.
3. Who has the authority to hire or fire other employees or whose suggestions and recommendations as to the hiring or firing and as to the advancement and promotion or any other change of status of other employees will be given particular weight.
4. Who customarily and regularly exercises discretionary powers.
5. Who does not devote more than 20%, or, in the case of an employee of a retail or service establishment, who does not devote as much as 40% of his hours of work in the workweek to activities which are not directly and closely related to the performance.
6. Who is compensated for his services on a salary basis at a rate of not less than $155 per week, exclusive of board, lodging or other facilities.

Exempt Employee – Workers not entitled to overtime. Generally workers in executive, administrative, or professional positions.

Regular Payday - Wages other than fringe benefits and wage supplements. Every employer shall pay all wages, other than fringe benefits and wage supplements, due to his employees on regular paydays designated in advance by the employer. Overtime wages may be considered as wages earned and payable in the next succeeding pay period. All wages, other than fringe benefits and wage supplements, earned in any pay period shall be due and payable within the number of days after the expiration of said pay period as provided in a written contract of employment or, if not so specified, within the standard time lapse customary in the trade or within 15 days from the end of such pay period. The wages shall be paid in lawful money of the United States or check, except that deductions provided by law, or as authorized by regulation of the Department of Labor and Industry for the convenience of the employee, may be made including deductions of contributions to employee benefit plans which are subject to the Employee Retirement Income Security Act of 1974, 29 U.S.C. §1001 et seq.

Wages - Compensation due to any employee by reason of his employment. Payable in legal tender of the United States or checks on banks convertible into cash on demand at full face value, subject to such deductions, charges or allowances as may be permitted by regulations of the secretary under section 9.

Week – A period of 7 consecutive days stating on any day selected by the employer.

Work-related – Means that an exposure in the workplace, caused or contributed to an MSD or significantly aggravated a pre-existing MSD.

Workweek - The term workweek shall mean a period of 7 consecutive days starting on any day selected by the employer. Overtime shall be compensated on a workweek basis regardless of whether the employee is compensated on an hourly wage, piece rate or other basis. Overtime hours worked in a workweek may not be offset by compensatory time off in any prior or subsequent workweek.