Benefits Eligibility

gregoryscott

Our policy states that after the first 90 days of employment, employees who work 30 or more hours per week become eligible for benefits (health, retirement, etc.).

One of our employees was initially hired as part-time so he hasn't qualified for benefits. However, since last January, his supervisor has been scheduling him to work over 30 hours per week. The employee is now asking for benefits. Our management wants to put him back under 30 hours and avoid benefits.

What are the legal implications if management insists on taking this course of action?

SMace

It's unfortunate when we get stuck in the, "If it's not illegal it's OK." mode.

Instead of focusing on if it is legal or not I would first focus on if it is that the right thing to do? If it was done to me would it be OK?

It sounds like they fulfilled the requirements for health insurance. Ask your management, "Do you want to screw them out of it or not?"

If they do want to screw them out of their benefits, I can't help you with the legality of it.

It may costs legal fees and damages, but if it doesn't, it is going to cost morale ( I guarantee they are going to complain to their coworkers) and you are going to have to pay to hire and train a new person after they quit.

POPEYE

Well stated!!!!!!!!!

And that is one way that HR gets a bad rap, getting blamed for bone-headed management decisions.

irenesmsaclaims

Almost always, eligibility language will state "working or regularly scheduled to work" 25/30/40, (or something else) hours for benefits. I would look at the plan document or policy and make reasonable determination if this fits for this person, if the person has met the eligibility service requirement since working the 30 hours.

marc

OK, fuzzy memory time. I think the rule(s) have to do with how many weeks in a row the EE works above the threshhold set to receive benefits.

If the threshhold is normally 30 hours, and the EE hits this level for some number of weeks out of a certain period, he/she gets the benefit. I don't remember the line, but I think it is 26 or 32 weeks in a row, or something in that neighborhood. So it takes 6 months or more of working at that level to qualify for the benefits.

As I said, this is fuzzy - perhaps others can clear this up.