Скачать или смотреть Regulatory Influences on Benefits Practices

While employers are free to offer discretionary benefits, specific laws influence the application of these practices. Regulations vary between private-sector and public-sector employers, so it’s important to distinguish between the two. The private sector includes profit-driven businesses and nonprofit organizations providing charitable services.

Private employers aim to increase profits, market share, and investment returns while keeping pay and benefit costs low. This profit focus often conflicts with employee goals, prompting regulations to protect workers from unfair treatment. Historically, employees lacked the right to negotiate working conditions and were often exposed to unsafe workplaces and inadequate compensation. Over time, employment laws and labor unions have helped reduce these abuses and protect employee rights.

Before ERISA was passed in 1974, employees could lose retirement benefits without protection or portability when leaving a company. ERISA was established to ensure retirement plan security and supplement government programs like Social Security. The public sector includes federal, state, and local government employers, which serve citizens rather than generate profits. Public employers exist to deliver services, often funded by taxes, rather than to maximize revenue.