Employee Change in Status Question

jsmallfl

As a result of recent budgetary deficits, my company is considering laying off several full-time employees. We would like to avoid this by simply changing their status from Full-time to On-call. If they agree to this change, then they would continue to work on an as-needed basis, but would not be eligible for benefits.

IS there anything I should know/avoid/address concerning this change, or would this be considered perfectly legal and okay?

THANKS!

Theresa Gegen TX

One issue is that the employees may be entitled to COBRA notice for their medical benefits. Sounds like this would be a qualifying event.

Good Luck!