Employee Benefits and Rights

4. Employee Benefits and Rights

Housing (*a good-to-have section, if you provide housing*)
Do you provide housing for employees? Who is the point person on the farm to go to with housing issues? How should employees communicate with them to let them know that housing repairs are needed? Are there “house rules” that you want to ensure employees are aware of, such as guidelines around cleanliness practices and standards? Does the farm pay for any special services (cable, phone, internet, etc.), and who is responsible for lawn mowing, shoveling, or other upkeep? How is payment for housing and utilities handled?

Expense and mileage reimbursements (optional)
Do you reimburse employees for travel and other work-related expenses? If so, what rate(s) of reimbursement do you offer employees to compensate them for expenses? Employers commonly base their reimbursement on the IRS standard mileage rates, though employers can also choose to use other reimbursement rates. Do employees need approval before incurring an expense, and when and how should they do this? How do employees document and report mileage and/or other expenses?

Mileage rates are updated at least annually. Find the most recent rates here: https://www.irs.gov/tax-professionals/standard-mileage-rates 

Workers’ compensation (*a must-have section*)
Use this section to inform employees about your farm’s workers’ compensation plan, when workers’ compensation can be used, and how employees should report injuries that occur while working.

Laws to keep in mind:
Employees who are injured during employment or who suffer from work-related mental or emotional disabilities, as well as occupational diseases, are eligible for workers' compensation benefits in Delaware and Maryland. In Maryland, an employee is covered by workers’ compensation laws when the agricultural employer has at least three full-time employees and an annual payroll of at least $15,000 for full-time employees.  In Delaware, agricultural employers are exempt from providing workers’ compensation insurance but may elect to cover employees.

When required or elected, these benefits include medical and hospital services, medically necessary equipment, prescribed drugs, weekly compensation for lost income when the employee cannot work, and vocational and rehabilitation services. Employers are required to report all employee injuries in the workplace to their workers’ compensation carrier. In addition to any other methods you use to inform your employees about their rights to workers’ compensation (such as through your employee manual), note that you must also clearly post a copy of this poster in Maryland, click here for a copy of the poster.

Sample language:
Workers’ compensation is a no-fault insurance plan that benefits workers who are injured. The plan is fully paid for by the farm and supervised by the state. The farm’s workers’ compensation plan covers employees for injuries or illnesses caused by the employee’s employment, regardless of the severity, so long as the injuries or illnesses resulted from the performance of that employee’s job. It can pay for medical expenses and compensate employees until they return to work. Coverage begins the first minute you’re on the job and continues anytime you work for the farm. You do not have to work a certain length of time, and there is no need to earn minimum wages before you are protected. Accident reports are essential for agricultural workers as they promote agricultural workers safety by documenting incidents, close calls, and unsafe conditions, offering valuable information to identify patterns, assess risks, and implement necessary safety protocols. By analyzing these reports, agricultural workers and supervisors can understand the underlying causes of accidents, whether involving machinery, chemicals, livestock, or environmental factors. This knowledge guides enhancements in training programs, equipment maintenance, and operational procedures. Furthermore, accident reports help farms comply with regulations and support insurance requirements, ensuring the maintenance of safe working environments that safeguard both personnel and resources effectively.

For consideration under the farm’s insurance, please report ALL injuries to your supervisor immediately, no matter how slight. In the event of a work-related injury, notify your supervisor immediately and fill out an injury report. All injured employees requiring treatment beyond first aid should seek initial treatment at the most convenient medical center. Later, you may be required to furnish your supervisor with written statements regarding the on-the-job accident so that we can accurately document the incident and receive all the benefits you are eligible for. Failure to do this can result in loss of benefits.

Unemployment insurance (optional)
Use this section if you would like to inform employees in your employee manual about the availability of unemployment insurance, which they may be able to access upon leaving their position at the farm. Informing employees of the availability of unemployment insurance is your legal responsibility as an employer.

Laws to keep in mind:
Most agricultural employers – and nearly all non-farm employers – must contribute to unemployment insurance. In Delaware and Maryland, agricultural employers must make unemployment insurance contributions if:

• They paid wages of $20,000 or more to individuals in any calendar year or preceding calendar year, or

• They employed 10 or more individuals for any part of any 20 weeks in the current or preceding calendar year.

 

Most workers, including seasonal workers, are eligible for unemployment insurance.

Sample language:
Employees of this farm are covered by unemployment insurance. No deductions are made from your salary to cover the cost of your unemployment insurance benefits. If your employment is terminated, you may be entitled to collect unemployment insurance. Select the following: 

• (For Delaware) To apply online, go to https://labor.delaware.gov/divisions/unemployment-insurance/file-an-unemployment-claim/, and complete the required information to submit your application.  

• (For Maryland) To apply online, go to https://beacon.labor.maryland.gov/, and complete the required information to submit your application. 

 

Other insurance (optional)
Indicate any other insurance benefits available to your employees, such as health, dental, vision, life, or disability insurance and/or COBRA. Be sure not to get too detailed on this and instead state that current plan documents control benefits. For COBRA/HIPAA, include a short statement in the handbook and use legally required notices. Many health insurance brokers are now willing to act as a free third-party issuer of COBRA notices, so ask your broker about this if you have one.

Pregnancy-related rights and accommodations (*a must-have section*)
All employee manuals should outline employees’ rights related to pregnancy and the process for seeking reasonable workplace accommodations related to pregnancy. Employers may not treat employees or job applicants less favorably than other employees based on pregnancy or pregnancy-related conditions. They must engage in dialogue with employees requesting pregnancy-related accommodations and provide reasonable accommodations without hardship.

Laws to keep in mind: 
Both Delaware and Maryland provide protections to pregnant employees.  Employers are required to provide reasonable accommodations to pregnant employees.  Employers must make the same accommodations for pregnant employees as temporarily disabled employees.  At the same time, positions would need to be kept open for the pregnant employee for the same time as other temporarily disabled employees.  The federal Pregnant Workers Fairness Act went into effect in June, 2023.  This law covers employers with at least 15 employees and requires an employer to provide reasonable accommodations for pregnant employees.

Sample language:
All employees at our farm have the right to have reasonable accommodations made for conditions related to pregnancy and the right to be free from discrimination about pregnancy or related conditions. Pregnancy-related conditions include, but are not limited to, lactation or the need to express breast milk for a nursing child. An employee’s right to work during pregnancy (with or without reasonable accommodations) shall be considered a personal matter for the employee and their physician. If you would like to seek pregnancy-related accommodations, please let one of the farm managers know. The farm manager will discuss your needs with you to determine a reasonable accommodation that will allow you to continue to perform your job duties.

Disability or religious accommodations (*a must-have section*)
You should outline the process for seeking reasonable accommodations for disabilities or religious observance in your employee manual.

Laws to keep in mind:
Employers generally must offer reasonable accommodations, absent undue hardship, to workers with disabilities or specific needs for religious observance, assuming accommodations can be found that do not pose undue hardship on your farm. Accommodations should ensure equal opportunity for an individual with a disability to perform the essential job responsibilities and receive the same benefits and privileges as other employees. 

Sample language:
If you would like to request an accommodation related to disability or religious observance, please let your supervisor or the farm manager know. They will discuss your needs with you to determine a reasonable accommodation that will allow you to continue to perform your job duties.

Other benefits (optional)
Include this section if you want to indicate information on any other employment benefits you offer at your farm, such as health insurance, retirement savings accounts, bonuses, or educational incentives.

 

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