Employee Welfare Programs Essay Example

conducted as a mandatory part of HRM401R, an obligatory course for students pursuing Bachelor of Business Leadership at Baker College based in Cadillac, MI.

Restrictions in the Study A great deal of data regarding social security, workers' compensation, and unemployment compensation was collated during the process of researching for this paper. The need to adhere to a defined length for this paper and the stipulated research period of 10 weeks necessitated a brevity and precision in the explication of many topics. As original research was not performed, only secondary sources were utilised. Literature Review The idea of lacking employee welfare programs in the contemporary setting appears preposterous.

In the recent past, roughly less than a century ago, not only Americans but also many people worldwide typically turned to their local communities, societies, churches, or family members for various forms of "assistance when there were interruptions in their income either temporarily or permanently" (Cihon ; Castagnera, 2008, p. 310). The term societies in this context implies different work groups like the coal miners of Pennsylvania. These miners belonged to an organization known as the Ancient Order of Hibernians during the 1870s. This society established funds aimed at supporting widows and children of miners who lost their lives while working.

The pattern of aiding community members in times of need was witnessed in many societies. As early as the 1930s, The U.S government initiated specific policies to provide support "to employees impacted by joblessness, work-related injuries, occupational disability, or old age" (Cihon ; Castagnera, 2008, p. 310). Before these legislations were enacted in the 1930s, several laws had been established to manage the rising occurrences of accidents and injuries,

primarily in the railway sector. The railway sector alone was responsible for about 25,000 annual fatalities around the beginning of the 20th century.

The Railway Labor Act of 1926 and the Federal Employee Liability Act (FELA) initiated in 1908 are among legislative measures approved intended to support families of deceased railway employees. It was typically a futile and frustrating endeavor for injured rail workers who tried to pursue their employer for compensation or any form of positive remedy (Cihon ; Castagnera, 2008, p. 310). If an individual was fortunate enough to pay for a lawyer following a railway mishap, the corporation's legal representative would convince the court that by taking the job, they also consented to its inherent dangers.

Frequently, attorneys would attribute the harm caused to a worker not on the railway but on the negligence of another worker. This was commonly referred to as the "fellow-servant doctrine" (Cihon & Castagnera, 22008, p. 311). The advent of the workers' compensation program allowed employees, including those in the railway industry, to start receiving benefits from work-related injuries or mishaps (Cihon ; Castagnera, 2008). Likewise, the unemployment compensation program came into effect due to President Franklin D. Roosevelt's New Deal, further enhancing workers' welfare.

The primary distinction "between workers' compensation and unemployment compensation compared to social security lies in the fact that the former two are predominantly state-run, while social security is a federal program implemented uniformly nationwide" (Cihon ; Castagnera, 2008, p. 312). This document will proceed to elucidate these three social assistance programs including some aspects of their historical background and stipulations. Social Security was established in the aftermath of the Great Depression, which resulted in

a banking crisis, stock market crash, and consequently the loss of many Americans' savings and investments.

Citizens of this country appealed to Washington to ensure a respectable income for seniors during their twilight years (NCDSSM. org, 2008). Historically, several individuals were jobless at that era with seldom pension plans to aid during the calamitous period of the 1930s. As a result, their appeals weren't disregarded. President Franklin D. Roosevelt initiated a pension scheme that would certainly provide a steady source of earnings for many retired Americans (NCDSSM. org, 2008).

The initial Social Security Act initiated in 1935 consisted of various social service initiatives such as three public assistance or welfare programs and two insurance schemes. The main objective of the social security program prior to 1950 was to provide "protection against income loss during retirement", however, it was not the most significant or liked program in the legislation (Encyclopedia.com, 2010). The act encompassed numerous welfare plans managed and put into action by specific states. These aid programs were aimed at the elderly, the visually impaired, and widows with children who depended on them.

Hence, these government-funded initiatives were widely embraced by several Americans since they efficiently relieved the discomfort of these less fortunate communities. Alternatively, to gain insurance and retirement advantages from the Social Security Administration, a person was required to pay payroll tax into the fund to be eligible for any benefits. Since these payroll taxes were initially gathered in the late 1930s, beneficiaries did not start receiving from their pensions until early 1940 (Encyclopedia.com, 2010).

Quick relief for those facing severe financial crises was provided by welfare assistance programs, whereas, measures like "Social security, unemployment insurance, and

later, Medicare, aim to avoid financial hardship" (Encyclopedia.com, 2010). Typically, individuals who have contributed more to the social security fund get higher monthly benefits upon retirement (Encyclopedia.com, 2010). The social security program saw a growth and expansion from 1939 through the mid-1970s.

The Social Security Act of 1935, which initially laid out benefits largely to those employed in trade and production sectors, later broadened its coverage in 1939 to incorporate added sets of individuals. In this expanded plan, "the wives of retired workers and the widows and offspring of the deceased workforce" started receiving benefits (Enclyclopedia. com, 2010). By 1950, the scope of these benefits was extended to men too. Not much later, additional clauses were introduced that covered domestic and agricultural laborers" (Encyclopedia. com, 2010).

The social security program incorporated disability insurance as an additional safeguard in 1956. Initially, this disability plan under the social security umbrella guaranteed protection to every worker younger than 65 until 1960 (Encyclopedia. com, 2010). The age limit was then increased to encompass 65 years or above. Another stipulation set up in 1956 granted permanently deducted benefits to retired women aged between 62 and 64 within the framework of the social security plan. Men were subsequently extended this alternative in 1961.

During this era, an impactful rise in the poverty level among elderly Americans and the expansion of the economy led to a significant increase in benefits between 1965 and 1972. To match the fluctuating economies, "The automatic cost-of-living allowance (COLA) was codified into law" (Encyclopedia.com, 2010). This provision of annually adjusted alterations ensured stability in benefits for retirees and their beneficiaries, irrespective of their lifespan. Nonetheless, the adoption of COLA made

social security benefits economically sensitive and more costly (Encyclopedia.com, 2010).

Financial concerns about the social security system began to emerge in 1970 due to several economic shifts including the decrease in wage growth, increased inflation, and a sluggish economy. These conditions caused temporary fiscal challenges for the social security program in the middle of the 1970s and then again at the start of 1980. However, these issues were not persistent. Additionally, potential impacts on benefit payments were also potentially influenced by enduring changes in the demographics of the United States which emerged for a variety of reasons.

During this crucial time, it is approximated that around 76 million individuals born between 1946 and 1964, often known as the baby boomers, started to receive social security retirement benefits beginning in the early 1970s. This event, coupled with a decline in birth rates and an increase in life expectancy throughout the US, ignited concerns about the funding of the social security system (Encyclopedia.com, 2010). To mitigate some of these monetary worries, bills encouraging higher taxes and decreased benefits were enacted in 1977 and again in 1983.

The objective of these modifications is to ascertain that all involved parties, including employees, employers, current and future beneficiaries - particularly those who are financially affluent - are affected uniformly (Encyclopedia.com, 2010). It's anticipated that this trend will continue until around 2020 due to elements like a diminishing workforce compared to retirees, increasing longevity of life, and the continuous retirement of baby boomers (Encyclopedia.com, 2010). Medicare is a healthcare insurance program for individuals aged 65 or above established by the U.S. government; it was signed into law by President Johnson on July 30th, 1965.

As per the regulations outlined by the Social Security Administration: an individual becomes eligible for Medicare once they have reached the age of 65 and have legally resided in United States for at least fifteen years.

Nonetheless, both the individual and their spouse are required to have contributed to Medicare taxes for at least ten years (40 quarters); otherwise, they must enroll with a monthly premium. In 2008, Medicare coverage was extended to about 45 million people in the United States, thus propelling Medicare to the position of the country's biggest healthcare provider (SSA. gov. 2010). Within Worker's Compensation Program, it began in 1908 as the pioneer social insurance program in the United States, aiming to compensate federal civilians who suffered employment-related injuries. By 1911, similar programs were launched in some states for private sector workers.

It wasn't until 1949 when almost every state implemented similar programs to safeguard workers and offer higher income to those affected by occupational injuries, diseases, and disabilities. As stated by the Social Security Administration, "Over the following decades, state laws broadened the coverage, elevated benefits, loosened eligibility conditions and augmented protection in other manners" (SSA.gov, 2010). Presently, workers' compensation laws are being enforced in the District of Columbia, the Virgin Islands, Puerto Rico, Guam, and throughout the United States (SSA.gov, 2010).

A number of federal laws were established to offer workers compensation to non-military federal employees (Workworld.org, 2009). For instance, the Federal Employment Liability Act (FELA) specifies that railroads participating in interstate commerce are responsible for their employees' injuries if negligence is proven (Workworld.org, 2009). Equivalent federal initiatives were founded for federal civilians, such as the Jones Act or the Merchant Marine

Act, which serves seamen in the same manner FELA serves railroad employees.

Likewise, coal miners suffering from lung ailments like cancer or chronic pneumonia are catered for under the Black Lung Benefits Act. The Occupational Illness Compensation Program was also established for Department of Energy employees, offering compensation for illnesses induced by radiation, such as cancer, Beryllium disease, and chronic scoliosis (Workworld.org, 2009). The majority of employers procure their workers' compensation insurance from insurance carriers. In order to cut costs, some states opt to establish an insurance pool fund, which is designed to cover risk employers.

Moreover, petite enterprises such as those employing fewer than four individuals are not mandated to possess workers' compensation insurance. When claims arise in these circumstances, the self-insured employer may decide to offer assistance or decline to subsidize disability or health benefits. Nonetheless, in numerous states, prosperous and financially stable large corporations might opt "to operate as their own insurance firm" (Workworld.org, 2009). There are specific protocols correlated with launching a worker's compensation claim; beginning with the employee informing their immediate superior about the incident or injury.

An employer or manager is expected to complete and send an incident report to the insurance provider following any accidents. The Occupational Safety and Health Administration will also require a report in the event of severe injuries or disabilities. According to Cihon & Castagnera (2008, p. 329), "Subsequent provision of supplementary information like physicians and hospital reports is typically mandated by the insurance carrier once they receive the initial accident report." If the insurance provider accepts all the reports, they will issue compensation benefits. However, if an employee's accident or injury is not work-related or is

due to their negligence, workers' compensation coverage can be denied.

This entails harm incurred in conflict with a colleague at work, injuries during the act of a crime, or if the individual was not on duty during the time of injury. Additional grounds could be engagement in illicit drug use or being under the influence at work, or breaching the employer's rules and regulations (Workworld. org, 2009). Unemployment Benefits The inception of the unemployment benefits scheme dates back 75 years to August 14, 1935, when it was endorsed by President Franklin D. Roosevelt.

The Social Security Act of 1935 included this as a significant section. In every state, the program was made possible through the financial support from federal and state unemployment taxes" (Kansas City Department of Labor, 2010). Its main aim was to deliver weekly payments to employees who were out of work, not due to their own fault. The unemployment program was praised by multiple governmental, commercial, and labor organizations as it mitigated the impact of economic downturns and other conditions that caused involuntary joblessness (Kansas City Department of Labor, 2010).

For an individual to be eligible for unemployment insurance benefits, certain qualifications need to be met. The person must be physically fit and available for work, receptive to job opportunities at all times, actively pursuing employment, and should have previously worked either full-time or part-time. Additionally, they shouldn't be unemployed due to their own doings, should meet the weekly eligibility requirements, and ought to have earned a significant income during the necessary base period for filing a claim (Salary.com, 2008).

Discussion and contention abound regarding the topic of willful misconduct, especially in its relation to unemployment

compensation within the United States. In employment law terms, "willful misconduct is a severe breach of conduct that disqualifies a jobless individual from receiving unemployment benefits" (Cihon & Castagnera, 2008, p. 332). It often leads to confusion about the precise interpretation of willful misconduct. For instance, if an employee continually misses work, it raises concerns about whether this is due to mere indolence or other underlying reasons. If the former is found to be true, denial of unemployment benefits could be warranted.

Nevertheless, consider the situation where a worker is perpetually late or absent due to their child's chronic illness. The likelihood is that they could still lose their job in such a circumstance, but their entitlement to unemployment benefits may not be revoked until they secure new employment. The issue with deliberate misconduct lies in the fact that "if the transgression is not easily noticeable by an average worker and the employer has not established a specific rule or issued a warning for prior misdemeanors, an unemployment referee might be hesitant to refuse benefits." (Cihon ; Castagnera, 2008, p. 332).

In a similar way to the mechanism of worker's compensation, challenged judgments have the potential to be reviewed again by an arbitrator. If this does not yield success, it is possible for the issue to move forward into the state court system (Cihon & Castagnera, 2008, p. 332). The Department of Labor/Bureau of Statistics has presented data showing that "Michigan records the highest unemployment rate at 14%" (2010), when compared with the national average unemployment rate in America which is currently at 9.9%. Considering these statistics, many Michigan residents have established a record in applying for

unemployment benefits. The method used to determine a person's unemployment benefits in Michigan takes into consideration a specific formula during the process of making a claim.

The weekly benefit amount can be calculated by taking the peak wage amount over a three month period from the past year, multiplying it by 4.1%, and then adding $6 for each dependent (up to a total of five dependents), but not exceeding $362” (Adams, 2010). In order to claim this benefit, an employee needs to enroll with Michigan Works, an employment agency financed by the state. Following the registration, the worker must complete a resume application. Once these steps have been carried out, the worker can potentially start receiving their benefits within only two weeks.

Once unemployed, a worker must routinely interact with an automated phone system every fortnight to maintain their unemployment benefits (Adams, 2010). It's evident to the readers of this document that the rewards derived from the initial Social Security Act are still applicable today, albeit with updates to the original text. Without this vital legislation, can one imagine the financial state of the United States? We may never understand the potential answer as the Social Security Act of 1935 was fortunately enacted into law by President Franklin D. Roosevelt.

Citations

http://www.bls.gov/news.release/laus.nr0.htm