In today’s workplace, employers often offer employee benefit plans. Such plans may have a big impact on employee loyalty and retention, and also help companies attract top employees. However, those plans may vary greatly from company to company. No matter what kind of employee benefit plan you offer, federal law applies when such plans are offered.
Are Employers Required to Provide Employee Benefit Plans?
No, under federal law employers are not required to offer benefits to their employees. However, plans that are offered must comply with certain federal laws, including ERISA.
The Employee Retirement Income Security Act of 1974 (ERISA)
This federal law sets out minimum standards for many pension and health plans offered in the private sector. Employers are required to keep plan participants informed about their plan.
Amendments to ERISA include the:
- Consolidated Omnibus Budget Reconciliation Act (COBRA) that allows employees who lose their jobs to continue their health coverage for a time.
- Health Insurance Portability and Accountability Act (HIPAA) that protects employees with pre-existing medical conditions from insurance discrimination.
- Mental Health Parity and Addition Equity Act (MHPAEA) that requires insurers to provide mental health treatment coverage equal to medical/surgical coverage.
Employee benefit law is complex. Fines for employers who fail to comply with federal law are high.
The Fair Labor Standards Act
The federal law that regulates minimum wage, overtime pay eligibility, and child labor is called the Fair Labor Standards Act (FLSA). What does this have to do with employee benefit plans? Federal law does not require employers to provide paid time off like vacations, sick leave, or holidays. That benefit is strictly between the employer and employee.
Offer Employee Benefit Plans? Know the Law
Employers may find themselves in sticky situations when it comes to employee benefit plans. Questions may arise about whether terminated or suspended employees have access to their employee benefits. It’s especially important for employers to know that the employee benefit plans they offer comply with pertinent federal laws.
At the Lambros Law Office, our attorneys can help you navigate the complexity of employment law. To schedule an appointment, call 401-383-9899. You may also use our convenient Contact Form to let us you know are ready to get started. We assist clients throughout Rhode Island, including Cranston, Providence, and Warwick.
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