Employment Law Questions? Ask an Employment Lawyer.
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There is nothing inherently unlawful about providing additional compensation to employees who choose not to accept the employer's health insurance coverage. In fact, this is a common arrangement that many employees appreciate as it allows them the freedom to obtain whatever sort of health insurance they want to on their own. Only if the employer was limiting who they made this option available to on the basis of a legally protected trait, such as gender or disability (i.e. not allowing disabled employees to accept additional compensation in lieu of the employer's insurance) would there typically be any legal violation.
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