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| *Resource of HR>>>employee benefits |
Can an employer offer benefits to selected employees only? |
My best friend has worked at her company for the last 7 years. Her employer has always offered benefits. Her employer would now like to offer benefits to selected employees only, in order to cut costs. The company is located in FL and has 40 +/- employees. I know this is not moral, but is it legal? nope they have to offer her benefits.....is she full time/part time weeks only..... I cant see why its not legal. The CEO of boeing has his own Jet that he gets to fly anywhere he wants. The janitor of the company doesnt even get to look at the plane. Benefits are considered by most companies part of your salary, the more you are paid the better benefits you get. Employeer says okay im giving the top people dental insurance but nobody else. Its perfectly legal. Buisiness Owner. They have to meet certain requirements to receive it. Morality has nothing to do with wether or not certain employees should be offered certain benefits when others are not... meaning that the higher producing employees are more necessary for the servival of the business and therefore harder to keep, so extra benefits maybe needed in order to keep or attract a higher educated, or more qualified individual, but in most states it is legal. There are certain benefits that are known as carveout plans that an employer can make specific qualifications for the benefits to be offered to specific employees. You would have to consult someone who is in your state, or your friends state as to the legality of the issue. But if your friend is concerned with not getting the added benefits, she should find out what the qualifications are, and if the benefits are really that important to her, go out and obtain those qualifications to get the added benefits. Life agent/Financial advisor 2+yrs Financial Industry 7+yrs BA Economics www.alaldrete.com Employers may offer benefits to only certain employees as long as they define the class of employees to be covered and then cover all of those employees. For example, they could define the class by job classification (for example, owners and managers only or salaried employees only) or by tenure (employees with "x" or more years of service) or by hours worked (employees working "x" or more hours per week) or by other means. As long as they are creating a specifically defined class, it's legal and OK under ERISA law. It's unfortunate that your friend's employer must do this to cut cost - I would be concerned that the business isn't doing well and that this might be the first of many cost saving cuts to come. |
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