Probationary Employees/Benefits

raglala

About a month ago, we hired a forklift operator who has recently become medically unable to work and does not anticipate being able to return to work for approximately 6 months.  This employee has not completed the 3 month probationary period which is necessary in order to be eligible for benefits (insurance, holiday pay, etc).  If we chose to keep this employee on our payroll, but put them on leave during the 6 months they are unable to work, are we required to offer them benefits at 3 months even though they are on leave?  I realize this individual does not qualify for FMLA at this point in time due to the recent hire date, but I am not sure about suspending benefits until they return.  Currently, we do not have an establish company policy regarding this issue.  Has anyone else experienced a similar situation?  I look forward to reading some feedback.

dhall111

What is the benefit to either the company or the employee of keeping this person on the payroll on a leave status if you don't offer him benefits? 

 Also, most insured benefit policies have a clause in them that states in order to be eligible for benefits the employee must be actively at work on the date of eligibility - so this employee wouldn't qualify under most insured benefit plans to join anyhow. 

 

raglala

Good point.  At this time we are looking at our options to determine what is best for both the company and the employee before we make a decision.

ERISAmaven

You need to be careful here because the HIPAA regulations that bar pans from discriminating based on a health related factor provide that a

plan may not establish a rule for eligibility or set any individual’s premium or contribution rate based on the following whether an individual is actively at work (including whether an individual is continuously employed), unless absence from work due to any health factor (such as being absent from work on sick leave) is treated for this purpose as being actively at work.