Employee benefits, also known as perks or fringe benefits, are provided

to employees over and above salaries and wages. These employee

benefit packages may include overtime, medical insurance, vacation,
profit sharing and retirement benefits, to name just a few.

Medical Insurance

Medical insurance covers the costs of physician and surgeon fees,

hospital rooms, and prescription drugs. Dental and optical care might be
offered as part of an overall benefits package. It may be offered as
separate pieces or not covered at all. Coverage can sometimes include
the employee's family (dependents).

Employers usually pay all or part of the premium for employee medical
insurance. Often employees pay a percentage of the monthly cost. The
cost of insurance through an employer

Minnesota Facts:

 Fifty-three percent of firms offer medical insurance to full-time

employees. Only 12 percent offer it to part-time employees. Dental
insurance is less common, especially for part-time workers.

 By industry, manufacturing, financial, education, and health

services are the most likely to offer benefits. The leisure and
hospitality sector is the least likely.

 Larger firms are more likely to offer benefits than small firms.
Retirement Benefits

Retirement benefits are funds set aside to provide people with an income
or pension when they end their careers. Retirement plans fit into two
general categories:

 In defined benefit plans (sometimes called pension plans), the

benefit amount is pre-determined based on salary and the years of
service. In these plans, the employer bears the risk of the
investment.

 In defined contribution plans (such as a 401k plan), employer or

employee contributions are specified, but the benefit amount is
usually tied to investment returns, which are not guaranteed.

Minnesota Facts:

 Most full-time workers in Minnesota are offered access to

retirement benefits. Sixty-four percent are offered a defined
contribution. Only 15.6 percent are offered a defined benefit
program.

 Defined benefit plans are offered most frequently in those sectors

with the highest levels of unionization. These include public
administration, construction, manufacturing, and trade,
transportation, and utilities.
Life Insurance

Life insurance protects your family in case you die. Benefits are paid all
at once to the beneficiaries of the policy — usually a spouse or children.

You can get life insurance through an employer if they sponsor a group
plan. Company-sponsored life insurance plans are standard for almost all
full-time workers in medium and large firms across the country. You can
also buy it privately, but this is usually more expensive.

Minnesota Facts:

 The number of people employed usually determines whether a

company will offer life insurance or not.

 Only 15.5 percent of firms with fewer than 10 employees offer this
benefit. Firms with more than 250 employees offer it almost
universally.

Legally Required Employer Benefits:

Unemployment Insurance

Workers who lost their jobs through no fault of their own—for example,
the company was downsized, restructured or shut down—are eligible to
apply for unemployment.

Unemployment replaces a portion of laid-off employees’ lost wages

while they look for work. Employees typically receive half pay for up to
26 weeks. If your business is required to pay these taxes, you must
register with your state's workforce agency.

Workers’ Compensation Insurance

Workers’ compensation offer financial protection to employees that

suffer an injury or illness at work or while performing the duties of the
job, resulting in their needing medical care and/or missing work.
Workers’ compensation reimburses employees for medical expenses and
loss of pay.

Family and Medical Leave

The Family and Medical Leave Act ensures that employees can balance
work and family responsibilities. FMLA allows employees to take
unpaid, job-protected leave (up to 12 weeks) for significant family or
medical reasons, and group health benefits are maintained.

It is most commonly associated with maternity and paternity leave, but

also applies to adoption, foster care and caring for a family member with
a serious health condition; however, the employee must have at least one
year of employment to be eligible.

Disability Insurance

Disability insurance replaces all or part of the income that is lost when a
worker is unable to perform their job because of illness or injury. This
benefit is not commonly offered. There are two main types of disability
insurance:

 Short-term disability insurance begins right away or within a few

weeks of an accident, illness, or some other disability. For
example, someone hurt in a car accident would be offered a few
paid weeks to recover.

 Long-term disability insurance provides benefits to an employee

when a long-term or permanent illness, injury, or disability leaves
the individual unable to perform his or her job. For example, an
employee with spinal injuries could be entitled to long-term
disability benefits until retirement age.

Minnesota Facts:

 Only 19.2 percent of firms offer short-term disability insurance.

Only 18.1 percent offer long-term disability insurance to full-time
workers.

MISCELLANEOUS:

Paid Time Off

Paid time off (also referred to as PTO) is earned by employees while

they work. The three common types of paid time off are holidays, sick
leave, and vacation leave.
Most employees earn these as separate benefits. About 10 percent of
Minnesota employers offer consolidated PTO. This combines sick leave
and vacation into one account for the employee to use as needed.

Minnesota Facts:

 The most popular benefit with employees is paid vacation. Sixty-

two percent of firms offer this benefit to full-time workers. Paid
holidays are also very common.

 Thirty-three percent of firms have paid sick leave for full-time

employees.

Fringe Benefits

Fringe benefits are a variety of non-cash payments are used to attract

and retain talented employees. They may include tuition assistance,
flexible medical or child-care spending accounts (pre-tax accounts to
pay qualified expenses), other child-care benefits, and non-production
bonuses (bonuses not tied to performance).

Tuition reimbursement can be an especially important benefit if you plan

to take classes in your personal time. This can be a great way to advance
in your career. Most firms offering tuition assistance require that courses
are related to job duties.

Minnesota Facts:
 Fringe benefits are most common for full-time employees in the
manufacturing sector.

 Non-production bonuses are the most common type of fringe

benefit offered to full-time workers in Minnesota. These include
hiring, signing, year-end, attendance, and holiday bonuses.

 Tuition or educational assistance is offered by 19 percent of

companies in Minnesota.