Employee Benefits and Employment Law

It’s common for employers to provide certain benefits for their employees, many of which are subject to strict rules under the Employee Retirement Income Security Act (ERISA), the IRS, and other laws. Employee benefits can include paid holiday, vacation, and sick leave, medical and dental insurance, cafeteria plans, disability insurance, life insurance, and retirement plans. It could also include less obvious things like severance pay packages or stock options.

Attend the health benefits update session at the Advanced Employment Issues Symposium

American Recovery and Reinvestment Act of 2009 (a.k.a, the economic stimulus package)
On February 17, 2009, President Barack Obama signed a stimulus bill called the American Recovery and Reinvestment Act of 2009 (ARRA) into law. The ARRA contains several provisions relating to COBRA and HIPPA laws regarding employee benefits.

Free HR Hero White Papers: Health Care Outlook for Employers and What the Obama Stimulus Plan means for Employers: COBRA, Benefits, and More

Retirement plans under proposed 2010 federal budget
In his proposed 2010 budget proposal, President Obama seeks to establish an automatic retirement system for all employees. Under the proposed system, all employers that do not offer retirement plans would be required to enroll employees in direct-deposit retirement accounts. These retirement plans would be implemented in an Individual Retirement Account (IRA) format, and employees could choose to opt out of the plan.

Related articles on Employee Benefits
Employee Beneftis tools for Employment Law Letter subscribers
HRhero.com archive of annual surveys on employee benefits (subscribers only)
HRhero.com archive of annual surveys on holidays (subscribers only)

ERISA sets standards for the establishment and operation of employee benefits plans. If you offer employees a health insurance plan or retirement plan, chances are you’re covered by ERISA. Some ERISA requirements apply to both retirement and welfare benefit plans. Welfare plans are generally those that provide health, life, or disability benefits.

The Americans with Disabilities Act prohibits discrimination in benefits based on disabilities. For example, your health plan can’t single out a group of disabled people for lesser benefits than people who aren’t disabled. But it can make broader health-based distinctions. Similarly, the Age Discrimination in Employment Act (ADEA) and the Older Workers Benefit Protection Act (OWBPA) protects older workers from discrimination in their employment benefits. You can be liable for discrimination against active employees as well as retirees. That means you can’t give lower benefits to employees or retirees based on their age.

Audio Conference: Same-Sex Marriages: Overcoming Policy, Benefit and Payroll Challenges

It’s also important to remember that the Health Insurance Portability and Accountability Act (HIPAA) also bars against discriminatory practices with how benefits are handled. The Act also imposes portability, privacy, and certain other requirements on group health plans. But HIPAA isn’t the end of the list of laws and regulations. When evaluating benefits packages, employers also must take into account the Consolidated Omnibus Budget Reconciliation Act (COBRA), IRS regulations, the Uniformed Services Employment and Reemployment Rights Act (USERRA) and others.

View all HR topics

Related articles on Employee Benefits featured in HR Hero Line, HR Hero White Papers, and Employment Law Post

• Senate Finance Committee Maps Routes to Health Care Reform
  (Benefits & Compensation Law Alert, June 2009)
• Health Care Reform: Taxing Health Benefits Could Cause Unintended Consequences
  (Iowa Employment Law Letter, June 2009)
• What the Obama Stimulus Plan Means for Employers: COBRA, Benefits, and More
  (HR Hero White Papers , March 2009)
• Mental Health Parity Act Effective Date Delayed
  (Employers State Law Alert, February 2009)
• Cutting Corners When Cutting Employee's Hours Can Cost Employers in the Long Run
  (Texas Employment Law Letter, February 2009)
• New Law Addresses Mental Health Coverage Parity
  (Utah Employment Law Letter, December 2008)
• HEART Act Provides New Employment Benefits for Military Personnel
  (Federal Employment Law Insider, September 2008)
• Employer Wellness Programs Need a HIPAA Checkup
  (Oklahoma Employment Law Letter , July 2008)
• Looking at the Basics of a 401(k) Plan
  (Arkansas Employment Law Letter, July 2008)

HR Tools for Employee Benefits

• HR Executive Special Report - How to Evaluate & Manage Employee Health Plans (available for purchase by nonsubscribers)
  
• Sample Policy - Vacation
• Sample Policy - Holidays
• Sample Policy - Sick Leave
• Sample Policy - Personal Leave Time
• Sample Policy - Paid Time Off
• Sample Policy - Life-Threatening, Contagious, and/or Debilitating Illness
• Sample Policy - Family and Medical Leave
• Sample Policy - Military/Reserve Leave
• Sample Policy - Bereavement Leave
• Sample Policy - Jury Duty/Witness Service
• Sample Policy - Time Off to Vote
• Sample Policy - Personal Leave of Absence
• Sample Policy - Eligibility for Benefits
• Sample Policy - Health and Welfare Benefits
• Sample Policy - Domestic Partner Benefits
• Sample Policy - 401(k) Retirement Savings Plan
• Sample Policy - Retirement Plan
• Sample Policy - Employee Recognition Programs
• Sample Policy - Employee Assistance Program
• Sample Policy - Tuition Reimbursement
• Sample Policy - MBA Program
• Sample Policy - Adoption Assistance
• Sample Policy - Employee Activities
• Sample Policy - Service Awards
• Sample Policy - Continuation of Health Plan Coverages