Pay In Lieu of Benefits--Legality/Pitfalls?
Quizmaster
6 Posts
I work for a small company, and we are duscussing an optional Pay in Lieu of Benefits program. Essentially, in exchange for increased pay, an employee may elect to refuse the following benefits: health insurance, vacation time/pay, holiday time/pay, sick time/pay, funeral leave/pay, and other paid time off. Other benefits (e.g., FMLA, WC, etc.) would not be affected. Each employee may choose to paticpate or not participate. Interested employees may elect to participate only upon hire or on their yearly anniversary date. Please comment on any legal concerns to consider or other pitfalls involved with such a program. Have any readers tried this?
Comments
I wouldn't want to have employees with no paid leave whatsoever. That would encourage employees to come to work when they're sick and contagious. They'd do poor work and might make many co-workers sick.
You might want to consult a lawyer before you change any benefits plan. If you don't have one, we have lawyers in every state who are affiliated with HRhero.com. You can find them at
[url]http://www.hrhero.com/findanattorney.shtml[/url]
James Sokolowski
Senior Editor
M. Lee Smith Publishers
Margaret Morford
theHRedge
Hope that helps.
Margaret Morford
theHRedge