CALCULATION OF EMPLOYEE NON-MANDATED BENEFITS

The 2009 U.S. Bureau of Labor Statistics national employer survey indicated non-mandated benefits for private industry are equal to 20.2% of wages.  Benefits to employees that meet or exceed the non-mandated benefits as determined by the U.S. Bureau of Labor Statistics employer survey as referenced in Section III, A, will be determined as follows:

Definitions:

1. “Non-mandated benefits” for the purpose of the Hillsboro Enterprise Zone include paid leave (vacation, holidays, sick leave, other leave), company-provided insurance (health, life, sickness & accident, etc.), contributions to retirement or savings plans, severance pay or supplemental unemployment benefits, or other benefits consistently offered employees.  Not included are (1) “mandated” benefits of worker’s compensation pay, overtime or premium pay.

Note:  Government mandated benefits include FICA, Social Security, Medicare, Workers’ Compensation, and Tri-Met (for the Portland metro area only)

The process below is designed to compare the hourly wage value of eligible company benefits to the average hourly wages offered to regular full time jobs covered by the First Source Agreement (i.e. “Covered Positions”):

1. Hourly wages of company’s covered positions are averaged.
2. The eligible non-mandated employee benefits made available to these covered positions by the company are added together using the company’s most recent annual costs of providing the benefits.  The annual cost is divided by 1664 hours worked per year (32 hours/week) to determine the hourly value to the eligible non-mandatory benefits.
3. The hourly value of the company’s eligible non-mandated benefits is divided by the average hourly wages of the covered positions.  The ratio must equal or exceed 20.2%.

Example: $6.47/hr benefits divided by $13.75/hour wages = 47%