Higher Pay with No Benefits
Carl
5 Posts
We are considering creating higher paying positions with no benefits in addition to our benefit positions. Is there any awareness of any benefits that may be required by law in this circumstance, outside of FMLA? This would mean no paid time off, health or life, STD, LTD, etc.
Comments
>in addition to our benefit positions. Is there any awareness of any
>benefits that may be required by law in this circumstance, outside of
>FMLA? This would mean no paid time off, health or life, STD, LTD,
>etc.
You have to offer the same medical to all. How you accommodate their premiums is up to you - and an (bonus) incentive if they don't take it is allowable.
Life, STD, LTD I'm not sure, but I'm thinking it sounds like an insurance benefit to me that needs to be offered straight across the board.
However, paid leave can be different based on pretty much whatever you want to base it on - exempt v. non-exempt, salary level, etc. Just be consistent.
You should give plenty of advance notice to allow employees/dependents to get on-going medical/dental care completed.
>you did you had to offer them to all.
Leslie, where is that stipulated?
Second, your compensation system for wage/salary rates should be based on market value/skill level/current economic conditions, etc. - not on whether or not they take advantage of the company paid health benefits. Bonuses, if your intent on doing this, are a better way to go.
Thirdly, if you do this, be prepared for the wrath of the rest of the employees. Most employees, especially, dare I say, younger employees who don't typically use the insurance benefit much and usually make less money, would rather skip the benefit themselves and just get more money. It sets an awful precedent that could have some unintended outcomes.
Finally, at least in my state and with the insurance companies that we work with, we get a 'break' on insurance rates when we cover 100% of the employees 100%. The good will you are trying to establish with the employees could make your CFO see red when it comes to renewal rates...
These are considered an insurance bonus and is paid out monthly on their paychecks. It's a win-win since the employee gets extra compensation and the employer saves on the premium. We have had no employees complain about it since the option is open to all.