Demoting Employee and Insurance

jrmvt

We are a small business with about 15 year-round employees. Our Health Insurance is set up where we pay 100% of the premium for our hourly employees classified as full-time (40 hours/week, year-round) and 50% of the premium for employees we classify as "30+" (work between 30 and 40 hours/week, year-round).

We have an employee who has been classified as a full-time employee. He had a good record with us, but recently has had tardiness and absence problems. We know he can do better and know part of the reason for the change (and its WAY too long a story to go into here) but it doesn't completely explain the problem. We had a meeting with him a month ago and warned him that if he did not improve, we were going to demote him to the "30+" classification.

Since then, the trend has continued. He hasn't hit 40 hours any week and didn't even hit 30 in one of them. Our CEO and owner want to go ahead and downgrade him effective June 1 and see if that is the kick in the pants he needs. My question is, do we need to give him more notice that he will need to start paying for half of his insurance?

Thanks!

sandra_d

Personally I think the warning you gave him a month ago is probably sufficient to downgrade him to the 30 hr/wk category. I'm assuming his reasons aren't anything that may afford him consideration for FMLA, ADA, etc. where allowing him to stay in the 40 hr/wk category should be considered as a potential accommodation, protected absence, etc.etc.

jrmvt

The only one that might apply would be FMLA, but we're too small.

sandra_d

Be sure also that no state laws apply. In MN we have some situations where employees have leave protection under state laws, even when the company is too small for FMLA to apply.

lorrie

I agree that the warning is sufficient to demote, if that is what you want.

I like to have a policy that clearly spells out what will happen & when so that we can be consistent, and so the employees know exactly what to expect. For example, 'full-time' employees who work less than 40 hours per week for 4 weeks in a row will be dropped to '30+' status. In order to return to 'full-time' status, the employee must work 40 or more hours each week for at least 4 consecutive weeks. This way the employee will understand what it will take to return to full-time status.

LivindonSouth

If you think that will be a meaningful and appropriate consequence for his behavior I see no reason not to go ahead with it. For some people that might even be considered a reward, like throwing Brer Rabbit in the briar patch.