Accounting, Payroll & Pension Issues/Cost of living raises

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Expert: - 6/27/2008


Question
My company is telling us that our 3% raises this year is only a merit raise.  They are not giving a COLA raise this year, can they not give a cost living raise?  The up to 3% merit raises will barely help most of us cover the gas prices to get to work.  I thought every year you have to get a COLA raise and it was up to them if they were going to you a merit raise or not.  Can they do this?

Answer
There is no law that says the company must ever give you a raise at all unless minimum wages go up. You must be paid at least minimum wage, that is what the law says.

If you are Union and the union has a wage increase than you must be paid the increase.

Shirley

Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

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