Written by Phil Vivirito
Bond Beebe
P: 301.272.6090 E:  This e-mail address is being protected from spambots. You need JavaScript enabled to view it

As payroll auditors, one of our tasks is to determine if the employer is reporting all covered employees.  This includes employees working in covered job classifications or bargaining unit employees. However, an employer may use different terminology when referring to covered and non-covered employees. This can be somewhat annoying to the experienced auditor, but it can become confusing and troublesome to the new or inexperienced payroll auditor.

Some employers may call non-covered employees ‘non-union’; other employers may refer to an employee who did not join the union as ‘non-union’ even though he is working in a covered classification. In both cases the employer may not report this employee due to his/her non-union status. In the first case, the employer’s terminology would be correct; but in the second case, the employer would be incorrect. The employer may do the same with the non-bargaining unit terminology, referring to a person as a non-bargaining unit just because he/she did not join the union.

There are other instances where terminology can be confused, such as referring to summer help – the employer’s definition may not be the official definition as stated in the Collective Bargaining Agreement (CBA). Another common mix-up is probationary period - union probation verses wait time before contributions are to begin. There may even be confusion with eligibility. The CBA may state that contributions are due to a health fund on the employee’s date of hire and he/she becomes eligible for those benefits after 60 days; an employer may mistakenly wait 60 days before making contributions.

Finally, there is possible confusion concerning a right-to-work state. In a right-to-work state, an employee does not ever have to join the union. However, if that employee is working in a covered job classification, contributions are required by the employer on his/her behalf. Many employers assume that in a right-to-work state, contributions are not required for those employees who are not union members.

There may be other instances of confusion with language and some may be specific to certain industries. If anyone has other examples, please share in the comments section.

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