Help! Are we allowed to break an agreement?

scantey

Recently we decided to offer our "testers" that have worked over 2080 hours medical benefits (Only two have qualified so far) since the company pays 100% of medical benefits for the employee only- this is what I explained to them. Now with Blue Cross raising their rates 20% the employer has decided to only pay 50% of the medical coverage to the "testers" who are eligible. Everyone else in the company will still be paid at 100%. The two individuals who qualified are supposed to sign up on the first of the month...In order to not discriminate they are wanting to put them on the 50% contribution plan so that the ones that qualify in the future will not be upset that they are having to pay 50%. The problem is we already told them that the company will pick up 100% of the costs. Can we now go back and say that we are only paying 50% without having to pay any consequences in the future?

Anita

I think in this case I would let the 2 that qualify now be under the 100% company paid and from now on the next ones will be under the new rate.

Whenever, we have had to change something like this we have always grandfathered the employees that were employed at the time and all new employees would fall under the new rules. x:-)

scantey

That is what I was thinking but didnt want to be held liable for a discrimination case in the future... I guess we can classify them as grandfathered and just consider them lucky?

Leslie

"Testers?" Are these folks contractors? If so, why did you make the decision to offer insurance?

If they are contractors, as long as the agreement isn't in writing, I suppose you can break the deal. They aren't going to be happy - you would have been better off never offering them anything.

scantey

Sorry- I should have made myself clear- They are game testers- and we thought it was only fair that since they have been here over a year to offer them benefits. They are permanent employees.

sonny

You mean I could get paid for testing games?? Sign me up! I would allow the 2 on, and make the effective date later..I would not see it as discrimination. The policy just changed.

Whatever

If they are permanent employees, why are they being treated differently than other permanent employees?

scantey

It is the whole department that is being treated differently- Since they are all hourly employees- i thought it was a little strange myself until I checked with the Labor Board and they said as long as it is a department as a whole then we were fine since this is considered a benefit.

Leslie

Huh? Company medical benefits that can be different on a department basis? Didn't know such a thing existed. But then, I have to believe if you bring your first two testers on at 100% company paid, the rest in the same dept. better be treated the same.