Legal Question in Employment Law in Mississippi

short term disabity pay

I work in a large world wide corp.as a auto body repairman.I am paid under a piece-rate plan @ 9.50hr.so if i get a job that pays 4hrs.I get 9.50x4=$38.00 no matter how long it takes me to complete

We also have to punch a time clock,for which they give everyone a clock hour wage,they use this when figuring sick pay vacation,and personal day pay.

they also use this to pay s.t.d. My question is this a legal way to pay s.t.d. wages,as it is not a true reflection of my earnings also it states in co. handbook that you can get up to 8 weeks wages,the company is self insured for s.t.d. thank you


Asked on 1/20/07, 12:27 pm

2 Answers from Attorneys

Keith Stern Shavitz Law Group

Re: short term disabity pay

Employers are permitted to use various types of compensation plans, and it is unclear whether the precise way in which yours worked was legal or illegal. However, piece rate is a legal compensation practice if it is applied properly for all hours, including remembering to calculate overtime hours properly. As a result, there would not necessarily be anything illegal about the wage level for a short-term disability policy being based on piece rate earnings. I do recommend that you consult with an attorney to determine if you are owed any wages, including overtime or other wages.

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Answered on 1/20/07, 12:31 pm
James R. Becker, Jr. Becker Law Firm

Re: short term disabity pay

The method for calculating wages for short-term disability (STD) payments would be whatever it states in the STD plan. It is likely that your STD is what is known as an ERISA plan. This means that your rights are governed by the language of the plan.

You need to get a copy of that plan. The plan administrator has an obligation to either provide a copy to you (usually at some charge) or make a copy available for your inspection. You should have received a document called a summary of plan benefits which outlines your STD rights. This is not the plan, but it should identify the plan administrator.

After you have that information, you will want to talk to an attorney to make sure that your wages are being calculated correctly.

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Answered on 1/22/07, 10:55 am


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