Different Benefits for Different Employee Classes

FT · May 2004

I asked this question under the "Benefits" topic of the Forum, but thought I might get more response here. We are a small company who employs administrators and truck drivers. Our intent is to offer different benefits, such as the number of holidays, sick time, etc. to the two different groups. Does anyone out there have experience with this. Is there a problem doing this? Thank you.

Beave · May 2004

Are these union positions or non-union?

Pork · May 2004

[font size="1" color="#FF0000"]LAST EDITED ON 05-11-04 AT 04:35PM (CST)[/font][br][br]FT: I have neg experience with offer of different scales of benefits to different groups of ees. We have three groups: EXECUTIVE, MANAGEMENT, AND LABOR, we offer sick hours based on hours actually worked; management get 40 hours per year verses say 48 or 52 hours of sick time for the labor pool (hourly). The computer keeps up with the wage grade ees, we have to do a manual input for the management and executive group. Executive group management groups gets a different rate of vacation time awarded again a manual record keeping system, whereas the hourly is based on a hours worked system and the computer handles it. Management gets a more robust bonus plan for production and the labor group get a good plan but not as robust but greater than labor pool that is in a support role. 401 K is equally administered for all employees, however, some companies have other retirement programs for the two other groups and even these can be different.

Answer it can be done and is done, but administering to the benefit would be much easier if it was consistently applied and calculated.

PORK

FT · May 2004

Many thanks for your response!

Don D · May 2004

It is not uncommon at all for different benefits to be offered to different employee groups. In union settings, it's a given that there will be major differences. In non-union settings, it's common for hourly employees to have one benefits package and salaried employees to have another.

We are non-union and have two separate benefits plans and sets of performance rules. We have no salaried employee handbooks for example. We excuse sick absences for salaried ee's. There is no written progressive discipline plan for salaried employees. For the hourly employees there is a strict employee handbook, a no-fault points system for attendance, different vacation plan and a different pension plan.

There is no state or federal regulation requiring you to have parallel, equal or consistent plans among your employee groups. Employers have a few rights left, and this is one of them.

FT · May 2004

Thanks Don. I appreciate the input.

Nina I · May 2004

I'm glad this question came up, because I've been wanting to ask this for some time: Before our current COO came on (3 yrs ago) we had clear benefit levels stated for our corp ees, and they were scrupulously followed. Since his arrival (and our company's subsequent growth) he has ignored the established policy (written!) as various individuals were hired, offering them WAY more vacation and benefits than others at the same level. He justifies this as a "business necessity," stating that we have to be competitive in hiring. (To make matters worse, we are a non-profit, subject to slightly more scrutiny of salaries, etc.) When HR and I (Compliance) have pointed out other violations of policy and their possible consequences, he's remained unresponsive, with a sort of "too bad if you don't like it" attitude. Is this just a matter of keeping it quiet so that other employees don't hear/know? If they did, what is the worse that could happen, i.e. we could be sued for discrimination? How likely is it that soemone would prevail? The coup d'etat is we are in CA...

smaces_twin · May 2004

It seems to me to be more of a morale issue. Unless a certain protected class is getting the "lower" benefits, you don't have to worry about discrimination. Once people find out, and they will, you will have many more problems besides remaining competitive in the recruiting environment. I wouldn't be surprised if the COO is doing other things he/she shouldn't be doing. Sounds like they way the United Way USED to be run.

Nina I · May 2004

Unfortunately, many already know - people choose to handle it in a variety of ways - most don't want to create a problem...the COO sent out a memo last year in response to office gossip about wage/salary levels, that essentially said "put up and shut up" because this COO instituted a generous incentive/bonus plan, and we should be happy. If were weren't happy we were invited to leave. Oh, yes, he's violated company policy in a variety of areas...I'm viewed as "Chicken Little" at this point, so I'm very circumspect about what I bring to his attention, and how I do it...I guess I'm just venting now - don't really see any different action to be taken at this point.

National Guard · May 2004

Hospitals seem to do it a lot. My sister is a nurse and they have different policies for different employees for vacation, sick leave and PTO. Don't know the specifics since I don't work there. Maybe some hospital HRs out there will respond. Our company has two levels for salaried and hourly.

Different Benefits for Different Employee Classes

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