Must I offer childcare stipend if other staff?

Betzi

I consult for a small 8 employee company. The owner has always paid health insurance (capped at $275) for the employees....that was the only benefit other than personal days off. The daughter of a current employee came to work there and did not need health insurance and her mother talked the owner into giving her daughter a $275 monthly stipend to reimburse for her day care since she has health insurance through her husband. Open enrollment for health insurance is February 1st of each year and the above mentioned daughter started with the company in April. she has received the stipend (3 months after hire) in lieu of the insurance. My question is, should the child care stipend have been offered to everyone else (all except 1 staff have no children & that 1 staff needed the health insurance)or only when I offer the health insurance in February each year?

Thank You!

dbutton111

What does the company really call this stipend? Can you just call it a bonus? A lot of people negotiate different things when they are hired - more vacation, additional tuition reimbursement, etc. It's part of the package. If you call it a child care stipend then it sounds like you should offer it to all. What does the owner think? Does he want it offered to all? And then what about those that don't have kids? If they don't want the health insurance is he prepared to give them $$$s? Unfortunately I think he has set a bad precedent. One that should be fixed asap.

I would either offer it to all (most companies only give a nominal amount as an "opt-out" payment for those that don't want heath insurance) or just give this employee a bonus every month in whatever amount the owner wants.

Don D

My assumption that the daughter is a non-exempt employee and typically you do not negotiate with non-exempts. In any event, I think it is mighty unwise to have done this unless the precedent will be spread across the spectrum for all future hires.