prn status and COBRA

dls

A full time nurse goes to prn status. Still paid like a W-2 employee. Posts availability and may work a little or a lot. How should this be handled? COBRA notice? Should employer make policy that prn nurses are not W-2 employees but more like independent contractor? Should employer limit prn hours to ensure "qualifying event" and that employee does not later become entitled to benefits?

NaeNae55

An employee who works for you, is required to follow the supervisor's instructions, and is not contracted for a specific service, even if only on an on-call status, is still an employee. You must keep the prn on payroll as a W2 employee.

Reduction in hours is a qualifying event. However, keep in mind the following:

1) What is your policy on the minimum hours an employee must work to receive health insurance benefits? Are part-time employees eligible?

2) Will the employee frequently reach this minimum? (Rarely reaching it won't matter.)

3) Has this employee been promised a minimum number of hours per pay period?


If the employee can be expected to work a certain number of hours (or will get paid a minimum number of hours), AND if those hours qualify under your minimum for insurance this employee still qualifies for insurance. If not, then offer the employee COBRA. If the employee only occassionally works enough hours in the future you still won't have a problem. If that changes though, and the employee begins working enough hours on a regular basis, she will then qualify for insurance again and you must offer it.

Good luck!

Nae