Different Benefits by Employee Class

FT · May 2004

If anyone out there is knowlegeable about offering different benefits by employee class I sure would appreciate your comments. We have just started a new company composed of administrators and over-the-road truck drivers. Our intent is to offer certain benefits by class. For example, administrators will get 6 paid holidays and truckers will get 2. Both will get vacation, but only administrators will get sick time. All will get health insurance...etc, etc. Does anyone see a problem with this, if we offer different benefits based on class of employee? Thank you in advance for your help.

LindaS · May 2004

I don't see any problems with this as long as the classes aren't based on any type of discriminatory reasons (i.e., male versus female). We have different benfits for exempt and non-exempt, union versus non-union.

FT · May 2004

Many thanks for the response!

KAMINSKI · May 2004

Linda:

Are you saying for instance I could pay the difference in my prescription plan for the cost of drugs purchased outside of the tier one for instance. Tier one drugs are a $10 copay whereas Tier three is $45. So for say my 3 exempt managers I could tell them instead of or in addition to a pay increase that we would pay any prescription copays over the $10 per prescription for the next year?

Where is Don? He must have something to say about this?

Beave · May 2004

Don's over at FHR's with the steaks helping her move in. I've got to get the beer there pronto!

smaces_twin · May 2004

[font size="1" color="#FF0000"]LAST EDITED ON 05-13-04 AT 04:04PM (CST)[/font][br][br]Huh?

edit: The huh was directed at Kaminski question.

sonny · May 2004

We have larger life insurance amounts for managers. Directors also have a higher multiplier on their retirement and there are some other minor differences. On the other side, the higher pay grades pay a larger portion of their dependant coverage. Vacation, sick leave and holidays are the same across the board.

M in AZ · May 2004

We have 3 different "categories" of employment. Administration, certified and classified. From there we determine if they are full or part time positions - and benefits, vacation, holiday, sick, insurance etc. availability is based on their category. In our policy handbook, we carefully outline the different categories. Then when we do the policies, we only need to indicate which type of catergory qualifies. There is no problem offering different benefits, as long as it is non discriminatory and you are consistent with the employees within each.

Don D · May 2004

I've been busy re-reading the original post several times, trying my best to see where in the world Kaminski got the assumptions he/she stated. An employer is at total liberty to have a variety of insurance policies for its various employee groups. Typically, the variations would be as stated earlier: Union non exempts, Salaried exempts and non-exempts, Drivers. Not only can the policy guidelines and provisions differ greatly, so can the premiums. It goes without saying that I'm not suggesting you could have a separate policy for overweight guys over 60, or the caucasian, spandex crowd with handicaps.

NancyJ · June 2004

We have 3 different benefit classes set up, and it's working very well. We have a class for Regular Staff, which get the minimum benefit schedule. They cannot get more or less. Then we have a Managers/Technical class, which get from the minimum benefit schedule up to Tier 2 benefits, based on tenure/service. The last class is for our Physicians, and they get the whole enchilada.

So far, this has been working very well for us, as we have so many offices, each with different staffing requirements.

E Wart · June 2004

I have worked with this for PTO where exempt earn more days than non=exempt (because of "comp time" added in) and it was fine. Also our LTD is only available to exempt and office employees (and not the hourly plant employees).
Again, normally this is fine. The only problems I have had is when an employee moves from one job to another where benefits change. You need to decide in advance what you will do so employee will know this when they accept the job change.
Again, be careful of discrimination. If it applies to insurance, talk with your broker. They do this all the time.
E Wart

Different Benefits by Employee Class

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