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HR Hot Topics |
Benefits
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. Related articles on Employee Benefits 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. 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. Related articles on Employee Benefits from the State Employment Law Letters
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