Even the most experienced business owners and HR pros have questions from time to time. Our Quick Q&A series provides answers to not-so-common questions and links to helpful resources.

One of the realities of operating a business that stores customer, financial or other sensitive data is that cyberattacks, data breaches or computer-system failures are real possibilities. Regardless of size or industry, organizations should consider adding cyber liability insurance to their list of business protections. Recent industry reports estimate the average cost of a data breach in the United States has climbed to $5 million.     

The “use-it-or-lose-it” nature of flexible spending accounts (FSAs) results, per average participant, in more than $400 of forfeited funds at the end of a plan year. The IRS gives plan sponsors the flexibility to include several plan provisions that allow employees more opportunities to access FSA funds. Implementing one of these options gives employees more time to exhaust their FSA funds and increases appreciation for the tax-savings benefit.

Dependent verification audits are conducted to confirm that dependents enrolled in an organization's benefits plans are eligible for coverage. While there is no legislation that outwardly mandates dependent verification audits, under the Employee Retirement Income Security Act (ERISA) employers are responsible for only paying benefits to eligible participants. 

Employers are not required to extend holiday pay to employees out on Federal Medical Leave Act (FMLA) time but should consider creating policies that clearly communicate the organization’s stance on holiday pay eligibility.

While there is no federal law that requires employers to offer employees paid time off to vote, state laws may apply.

Under the Fair Labor Standards Act (FLSA) employers must compensate employees for all hours worked. Hours worked generally include the time an employee must be on duty, on the employer's premises or at a prescribed place of work. Time spent training for a position is considered hours worked and generally needs to be paid whether conducted online or in person. There are few exceptions to this rule.  

The Equal Employment Opportunity Commission (EEOC) recently issued new guidance on workplace harassment to reflect modern day laws and social changes. Prior to the recent release, official workplace harassment guidance had not been updated since 1999.  

Because there is no federal law recognizing domestic partnerships, it’s an employer’s option to allow domestic partners to enroll in a group health plan – even then, state and local guidelines may have to be met. For employers who do permit enrollment, the pre-tax premium advantage afforded to married and single individuals isn’t extended to insurance premiums paid for a domestic partner's coverage.

While outright banning all romantic relationships amongst coworkers is not a realistic option, employers should have handbook policies addressing interpersonal relationships. Tactfully designed policies protect the employees and organization, establish clear guardrails and prevent potential fallout.  

A professional employment organization (PEO) may be an attractive solution for employers needing HR and payroll assistance. A PEO acts as a co-employer and allows a business to outsource payroll, benefit administration and employee relation functions. In a PEO relationship, employees are linked to the PEO’s federal ID number and “leased” back to the business.