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I am an HR consultant and I have a basic question about medical contributions. I am now workign with a company that would like to pay the full medical costs for some of its staff and not others. For example, we just started a sales department - and while they get a small base pay - they are eligible for a nice, lucrative commission and bonus. We would like to institute where they don't pay any employee contribution towards their medical. In other words, the company would pay in full for their medical coverage. Is there any legal problem with that? Other employees have to contribute. Also...just to be clear....can some employee's medical coverage be paid in full by the company and not others as part of their hiring agreement?
State/Country relating to Question: New Jersey Already Tried: Nothing
HelloCustomerIn New Jersey the employer can limit the offer of health insurance coverage or contributions by classes of employees. Each class must be based on a bona fide condition of employment. For example, full-time versus part-time, hourly versus salary, or department versus department if the employer has a bona fide reason for doing so. In your case, the fact that the sales department staff gets a commission and bonus, which I assume the other departments that are fully covered don't, would qualify.
I may not have been as clear as I should have been. All staff are fully covered - it's the amount of employee contribution that is the issue. The company wants to pay the full premium (employer plus employee contribution) for some people - while others have a monthly employee contribution to their benefits. For example some staff pay $100 per month - others may pay $50 per month and the sales staff pay $0 - all are fully covered.
Hello again,No, I was the one who was apparently unclear. The employer can do what you propose with the restrictions set out above. They can treat different classes of employees differently as long as they have a bona fide condition, like the examples set out above. That includes the amount of contributions by employer or employee.
You are wonderful!! I kinda thought so - but I didn't want to provide an answer to them without checking with you guys! This is a medical facility - so basically he can treat per diems, full-time, part-time or senior level executives differently -in terms of what they contribute to the medical plan, correct? We are hiring sales staff - and offering a base of say - $40K with benefits fully paid or $45K for someone who decides they do not want benefits. So...that is fine? Correct?
Hello again,Yes, you can treat all those classes of employees differently. The employer needs to make sure that they clearly state which classes are treated in what way. Meaning, clearly state from the get go what their contribution will be when they are hired.
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Licensed Atty, 25 yrs exp in the practice of law.
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