Fringe Benefits or Required?  (Page 1 of 2)	
Fringe Benefits Required By Law?	
What are fringe benefits?
Fringe benefits are work benefits that some employers provide for workers 	that are not required by law	.  	
Employers attract and keep good workers with fringe benefits.  The quantity (number) and quality (types) 
of fringe benefits is what turns a good job into a great job.  Before applying for a job, you may want to 
research	 to find out which employer offers the best fringe benefits; then apply for a job with that employer.	
Breaks  & Meals Periods (Not Fringe Benefits — Required by CA State Law)
Rest breaks and meal periods for workers are required by California labor law (called Industrial Welfare 
Orders or IWO).  All employers in California must provide rest breaks and meal periods for workers.	
Overtime Pay (Not Fringe Benefits — Required by CA State Law)
California law requires overtime (time and one-half of the regular wage) paid 
after working over 8 hours in one day and over 40 hours in one week.  
Double-time must be paid after 12 hours of work in one day.  	
Alternative Work Schedule (May Be Considered a Fringe Benefit — Allowed by CA State Law)
Many workers enjoy Alternative Work Schedules, and consider the schedules a fringe benefit because not 
all employers offer these schedules.  Alternative Work Schedules are different from normal 8 hours per 
work day and 40 hours per work week.  Alternative Work Schedules may be set-up for groups of workers.  
Individual workers cannot request an Alternative Work Schedule unless his or her entire work group makes 
the request and is approved.  BUT, if the entire group is approved, an individual worker can be exempted 
(does not have to follow) IF the Alternative Work Schedule causes a hardship for that worker.  	There are 	
two types of Alternative Work Schedules: 	 1) Compressed Schedule: Longer daily work hours but fewer 	
work days.  Nurses may work 10-hours per day and 4 days per week for a total of 40 hours of work per 
week with 3-day weekends.  2) Flexible Schedule: Variety of choices -- Some workers may arrive earlier 
and leave later than others, and still work 8 hours per day and 40 hours per week.  Flexible Schedules set 
"core hours" — like 10 a.m. to 2 p.m. 	during which all flexible schedule workers must be at work. 	 	
Flexible Schedules allow workers to work hours that fit their lifestyles.  Some workers may select to go to 
work early and leave early.  Other workers may select to go to work after dropping children off at school.
Holidays, Vacation, and Sick Days (Fringe Benefits)
Paid days off such as holidays, vacation, and sick days are not required by 
federal or state laws.  Paid holidays, vacation, and sick days are fringe benefits 
provided by some employers.  	California law: 	 If an employer does provides 	
vacation benefits, the worker "vests" (keeps) the vacation benefit as it is earned.  
The employer may not follow a "use it or lose it" vacation benefit policy.  For 
example, if the employer has a policy that vacation time may not be taken until after 12 months of 
employment, and the worker quits or is fired during the eleventh month, the worker is to be paid for eleven 
months of earned vacation pay.  The employer may not take away the earned vacation pay just because the 
worker did not work the full 12 months..

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Fringe Benefits or Required? (Page 2 of 2)	
 b) What are core hours? c) Why is a Flexible 	
Schedule allowed by employers? 	
10. a) Do you think you would enjoy working at a 	
job that had a Flexible Schedule?  b) Why?	
11. List 3 days-off that are fringe benefits.
12. If an employee is hired January 1, then quits 	
September 30, how many vacation days must 
be paid if the employer gives 12 vacation days 
per year?  (Jan-Sep = 9 months)	
13. a) Affordable Care Act:  When are employers 
 required to provide medical health insurance 	
to workers?  b) List 3 types of insurance that 
are considered to be a fringe benefit.	
14. Who pays for — and what do the following 	
provide?  a) Workers Comp?  b) SDI?	
15. What do retirement plans provide to workers?
16. Some employers (such as Google and Apple) 	
provide extra fringe benefits. Explain what 
you think is the 	benefit to workers	 for:	
 a) Child care at job site.  b) Paid college class. 	
c) Exercise gym/pool at work site. d) Free 
smart phone to use at home. e) Discount on 
company's products.  f) Free food at work.	
1. What are fringe benefits?
2. What 2 things turn a good job into a great job?
3. What may you want to research?
4. a) Does California law require rest breaks and 	
meal periods? d) What is CA labor law called?	
5. a) For what 2 situations does California labor law 	
require overtime?  b) When must double time 
be paid?  c) If a worker earns $20 per hour, how 
much will be paid for one hour of overtime?  	
 d) For one hour of double-time?  
6 a) Why do some workers consider Alternative 	
Work Schedules a fringe benefit?  b) Can an 
individual worker request an Alternative Work 
Schedule?  c) Unless what?  d) May an individual 
workers be exempted (not have to follow) the 
Alternative Work Schedule?  d) If what?	
7. Give an example of a Compressed Schedule.
8. a) Do you think you would enjoy working at a 	
job that had a Compressed Schedule?  b) Give a 
reason for your answer.	
9. a) Explain what a Flexible Schedule is.
Medical Insurances (Health Insurance MAY BE Required — Some Insurances are Fringe Benefits)
The Affordable Care Act (ObamaCare) Rules: Employers are required to provide medical health insurance 
to workers 	only if the employer	 has 50 or more employees who work at least 30 hours per week.  	
Employers are not required to provide 3 other types of insurances to workers such as dental insurance, 
eye-care insurance, and psychiatric (mental) care insurance. If an employer does of fer 
other types of insurances to workers, it is considered a fringe benefit.  
Workers Compensation and State Disability Insurance (Required by CA State Law)
Two types of insurance are required by law:  1) Workers Compensation (or "Workers 
Comp") Insurance, and 2) State Disability Insurance (SDI).  	Employers pay Workers 	
Comp 	that provides medical care to workers who are injured or become ill on the job.  	
Workers pay State Disability Insurance (SDI)	 through payroll deduction: the money is deducted from 	
worker’s pay, and amount deducted is shown on the worker's paycheck stub.  SDI provides medical care 
and a small income to workers who are disabled because of an injury or illness that is not related to the job.
Retirement Plans (Fringe Benefits)
Retirement plans provide monthly income to workers who retire from the company after employed for a 
certain number of years (such as twenty years or more).  Retirement plans may be paid by employers, but 
most employers require workers to pay money into the retirement plan also.  Money paid by the worker 
is shown as deduction from wages on the paycheck stub.  The money that the employer pays towards the 
retirement plan is considered a fringe benefit.