What is a union benefit rate?

Employees belonging to a union receive mandated benefits defined in the collective bargaining agreement (CBA) that the employer must pay so the employee can obtain health, medical or other benefits.  These benefits may be paid to the employee as an hourly benefit rate, or may be paid per pay period, or even annually.

Similar to a prevailing wage corresponding fringe rate,  the union benefit rate can vary across employees, as well as for individual employees during a given pay period, based on several factors, such as work class, type of benefit, hours worked, and frequency of benefit.

Most Time and Attendance systems are not designed for these complexities. 

Example of a union benefit scenario:

Employee A as an apprentice receives an hourly benefit for medical of $5/hr and a pay period benefit for Tools of 1% of gross wages.  Since the employee worked 40 hours, they earn $200 for the pay period in medical benefits.  With a  pay period gross wage of $720, they earn $7.20 in tool benefit so they can purchase equipment as needed in the future.

How can IDI help?

IDI can automate your time-consuming processes!  Our Time Bank™ Multiple Labor Rates solution is designed for companies employing unionized workers, which requires paying contract-mandated union wage rates and union benefit rates. Our solution removes the need to rely on time-consuming and error prone manual calculations for compliance.

When Time Bank is run at the end of the pay period, it retrieves the time and labor information from the time system and associates the specific rates of pay, including any premiums and benefit earnings, with the union, job, and worker classification. After determining rates, Time Bank calculates the weekly average rate of pay, or FLSA rate, used for all overtime hours in accordance with FLSA guidelines.

With the click of a button, Time Bank reads the rates from a stored user-maintained table or from a client-provided comma-delimited file, the calculation is made, and the results are passed to payroll.

Also need union reporting?

On a monthly or quarterly basis unions require reports showing what members were paid in wages and benefits, their attendance records, or other employment information.  Most of these reports can be handled by your payroll system, so check with your payroll provider first.

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ADDITIONAL RESOURCES:

Department of Labor

IDI Construction Solutions Video 

IDI Construction Solutions Blogs