9-1

Accommodation and Enhancement Accommodation and Enhancement Programs Programs

McGraw-Hill/Irwin Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 9Chapter 9

9-3

LEARNING OBJECTIVES

• Five categories of accommodation and enhancement benefits and their objectives

• Specific benefits in each category• Reasons many companies offer these

benefits• Tax advantages for employers and

employees• Legal issues

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ACCOMMODATION AND ENHANCEMENT BENEFITS

• Mental and Physical Well - Being

• Family Assistance Programs

• Flexible Scheduling

• Educational Benefits

• Support Programs for Daily Living

9-5

MENTAL AND PHYSICAL WELL - BEING

• 2 Classifications

– Employee Assistance Programs (EAP)

– Wellness Programs

9-6

EMPLOYEE ASSISTANCE PROGRAMS

• Designed to Help Employees Cope which Personal Problems

• Should Improve Job Performance

• Cost $50 - $60 Per Employee Annually

• Problems Affects Performance of 10 -

15% of Workforce

9-7

EAP SERVICES

• Providing Information about Services

• Problem Identification & Assessment

• Short - Term Counseling

• Referrals to Professionals

• Follow - Up to Assess Effectiveness

• Staffing a Help - Line

9-8

REFERRAL EAPs

• Employee Chooses Provider

• Employer Usually NOT Under Contract With Providers

• Employer Might get Volume Discount

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FULL - SERVICE

• In - House Services– Staffed by Company Employees– On - or Off - Site Locations

• Third - Party Providers– Contracted Services from Providers

• Consortium EAP– Companies Combine to Contract Services

9-10

EAP CONFIDENTIALITY

• Ways to Protect

– Maintain Files Separate from Personnel Files

– Use Codes in Files

– Limit Access to Files

– Meetings not Known by Management

9-11

EMPLOYER LIABILITY IN EAPs

• May be Legally Responsible for Inappropriate EAP Actions– Misdiagnosis– Referral to Unqualified Providers – Premature Treatment Termination– Abandonment– Inappropriate Relationships– Libel or Slander of Employee’s Name

9-12

EAP REGULATIONS

• ERISA– Not All EAPs Subject to Reporting &

Disclosure

• COBRA– If EAP Qualifies as a Welfare Benefit– If EAP Qualifies as a Health Care Benefit

• IRC– Employers can Deduct as a Business

Expense

9-13

WELLNESS PROGRAMS

• Promote and Maintain Physical and Psychological Health

• Offered In - House or Off - Site• Return - on - Investment: $6 Savings per $1

Spent

• Programs Include:– Back Care– Smoking Cessation– Stress Management – Weight Control

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BACK CARE

• In 2004, 4.7 Million Nonfatal Work Injuries or Illnesses

– 40% were Back / Shoulder Injuries

– 22.9% were to Upper Extremities

– 21.2 % were to Lower Extremities

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SMOKING CESSATION PROGRAMS

• Employers may invest in smoking cessation programs as simple as information campaigns that emphasize the negative aspects of smoking to intensive programs geared toward helping individuals stop smoking

• Employers may sponsor the participation of employees in a Smokenders® education program

• Other options include offering nicotine replacement therapy, such as nicotine gum and patches, and self-help services

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STRESS MANAGEMENT PROGRAMS

• Stress management programs can help employees cope with many factors inside and outside work that contribute to stress: – Job conditions – Health and personal problems – Personal and professional relationships can

make employees anxious and thus less productive

• Symptoms of stressful workplaces include low morale, chronic absenteeism, low productivity, and high turnover rates

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WEIGHT CONTROL AND NUTRITION PROGRAMS

• Weight-control and nutrition programs educate employees about proper nutrition and weight loss to promote sound health

• Information from the medical community has clearly indicated that excess weight and poor nutrition are significant risk factors in cardiovascular disease, diabetes, high blood pressure, and cholesterol levels

• Over time, these employee programs should yield better health, increased morale, and improved appearance

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HEALTH RISK APPRAISALS

• Analysis Of Blood Chemicals – Cholesterol Triglyceride– Glucose Uric Acid Levels

• Blood Pressure Checks

• Body Measurements– Height Weight– Percentage of Body Fat

• Diabetes Screening

9-19

FAMILY ASSISTANCE PROGRAMS

• Elder Care

• Child Care

• Day Care

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EDUCATIONAL ASSISTANCE

• IRC Section 127 Educational Assistance Programs

• Tuition Reimbursement

• Scholarship Programs

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SECTION 127

• Employees can Deduct $5,250 for– Tuition– Fees and Similar Expenses– Books, Supplies, & Equipment

• Must Pay Taxes above $5,250, Unless– It’s Working Condition Fringe– Satisfies Nondiscrimination Requirements– For Employees, not Dependents

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SUPPORT PROGRAMS FOR DAILY LIVING

• Transportation Services– Clean Air Act Amendments 1990

• Physical Fitness Centers