offering benefits to part-time workers

Help! Our company policy stipulates that benefits will only be extended to full-time employees (full-time employees being defined as individuals who maintain a minimum 30-hour work week); however, a valued employee has been offered part-time hours with full benefits by a competing company. In an effort to keep this employee, senior management would like to extend the following offer to this employee only - a 20-hour work week with full benefits. Can this be done?

Comments

  • 4 Comments sorted by Votes Date Added
  • It can be done if you lower your threshhold for fulltime benefits to ALL employees 20+hrs per week, or develop a benefit pkg for those 20-29 hrs that virtually matches the benefits offered to fulltimers. I would be very cautious about giving the fulltime benefits to this 1 parttime employee and excluding all others that work 20-29 hrs per week. You'll be setting the organization up for providing benefits in a discriminatory manner..........
  • We had the same policy you have (benefits for employees over 30 hours) until recently. We have always had two types of full time (30+ hours/week) employees for whom we have prorated the Vacation, Personal Time and Sickness benefits. These bene's are fractioned out based on the REGULARLY SCHEDULED hours the employee was hired to work.

    We've just extended that to employees who work under 30 hours. We have high school students who only work 12 hours a week, then we have 20 hour a week part-time workers. They now receive Vacation, Personal Time and Sick benefits using the same formula we had for full-time employees who work less than a traditional workweek. The only thing they can't get is the Insurance because we have documents restricting it to employees who work 30 or more hour a week.

    Part-timers working less than 30 hours a week have always been entitled to the 401K plan if they worked over 1,000 hours a year - by law.

    Formula for example: We provide 5 sick days a year = to 40 hours. If an employee works 4 days a week, they would receive 4 days of sick time = to 32 hours. If the employee has been hired to work a specific number of hours, such as 20, over the 5 day week, that employee would receive 20 hours of sick time. The same logic applies to all the eligible benefits - it's quite simple.

    We did it because we rely on these employees; they fill a very specific need in our company. The cost of these benefits is actually quite minimal. The only thing you have to watch for is "over time". Let's say you hire someone for a 20 hour 5 day workweek. You base all your benefits on the 20 hours. You then discover that the employee works 25 - 30 hours regularly. The employees workweek should be redefined to reflect reality. You could argue that a 40 hour a week employee has their benefits based on a 40 hour week, but may actually work 45 hours a week. I've maintained that that employee has received overtime pay for the 5 hours; the part-timer gets straight time because even with the increased hours, they still don't work 40 hours a week. We watch this pretty closely. I'd be interested in anyone else has concerns over this.
    Hope this helps.
  • If you offer benefits to this employee, then you should offer it to all other employees who work the same hours a week. It would be unfair not to do so. If I were an employee who did not get benefits because I worked 20 hours a week and discovered that another employee working the same hours was receiving the benefits, I would be somewhat disturbed. I would feel discriminated against.

  • [font size="1" color="#FF0000"]LAST EDITED ON 01-25-02 AT 10:32AM (CST)[/font][p]What if this employee, under the Fair Labor Standards Act, qualifies as an exempt employee? Would it then be possible to establish a new category -- part-time, salaried, exempt employees -- to whom benefits are extended? Any other currently employed individuals or future employees who then met these same standards would also be placed in this category and have the same benefits extended to them. Is it simply an issue of part-time vs. full-time or can exempt vs. non-exempt also come into play?
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