Benefits offering requirements ...
cmcalpine
3 Posts
Hi there,
Is there legislation that requires that an employer offer benefits based on the number of hours worked? If so, what is the maximum number of hours worked before which benefits must be offered?
What benefits must be offered at that point?
This would be for an Inside Sales position where there will be a base salary, with commission.
Thanks!
Comments
ERISA and the Internal Revenue Code require that, with certain exceptions, all employees with 1 year of service who are at least 21 years of age must be included in a retirement plan. A year of service is a calendar year, plan year, or any other consecutive 12-month period defined in the plan in which the employee has at least 1,000 hours of service. Years of service to determine vesting are to be counted from the age of 18. As an exception to the one-year participation rule, plans may require 2 years of service for participation, but if they do, they must provide 100 percent vesting immediately. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
A tax-favored plan may provide other limits on participation as long as the minimum participation requirements are met. Thus, certain job categories may be barred from participation, or minimum employee contributions may be required as a condition of participation.
Depends on the state too. While there is no federal requirement for insured benefits to be provided to anyone, many states have laws that do require it. (MA, HI, and NC are three that come to mind, all with varying types of requirements). Also, your SPD should spell out who is entitled to benefits under your plan, so you'll need to follow those rules as well.