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4/8 schedule, benefits, and exempt status
Benefits & Compensation
4/8 schedule, benefits, and exempt status
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
If an employee wants to cut back from a "typical" 40 hour schedule to a "4/8 schedule", e.g. 32 hours a week, what are the implications for benefits?
Should the employee receive pro-rated benefits
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Forums » Topic Forums » Benefits & Compensation » 4/8 schedule, benefits, and exempt status
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4/8 schedule, benefits, and exempt status
posted at 7/25/2009 2:08 AM EDT
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Posts: 49
First: 7/18/2009 Last: 8/17/2011 |
If an employee wants to cut back from a "typical" 40 hour schedule to a "4/8 schedule", e.g. 32 hours a week, what are the implications for benefits?
Should the employee receive pro-rated benefits (and if so, how much) or simply no longer be eligible for benefits? And would cutting back from a "customary" 40 hour work week somehow jeopardize an employees' exempt status. After all, exempts aren't paid for the hours they work but the work they accomplish. Also wondering where you draw the line between full-time and part-time for exempts. Especially exempts in professions such as engineering (civil, electrical, chemical, etc), IT, etc. Thanks. Mike |
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4/8 schedule, benefits, and exempt status
posted at 7/26/2009 6:05 AM EDT
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Posts: 1047
First: 4/11/2002 Last: 9/14/2011 |
I can't speak on the exempt status part, however, eligibility criteria for benefits is established by the employer. Most insurance carriers will allow employees working as few as 20 hours per week to be eligible for benefits. As for whether or not you want to pro-rate your contributions, again, that's an employer call. |
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4/8 schedule, benefits, and exempt status
posted at 7/26/2009 9:27 AM EDT
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
At our company, anyone working more than 30 hours receives the same health/dental/life/401k benefits but does receive prorated PTO/FMLA, etc. Below that, they only receive 401k and FMLA if they have worked enough hours.
You have to be a little careful with changing pay/hours for exempts, but as long as it is a 'permanent' change rather than a short term furlough, you should be okay. I know I have posted a good article by Littler about furloughs/exempt pay/hour decreases...but I am home and the link is at work. |
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4/8 schedule, benefits, and exempt status
posted at 11/3/2009 6:41 PM EST
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Posts: 2
First: 11/3/2009 Last: 11/3/2009 |
To answer your main question, I would have to say No. 32 is still considered FT employment, and if you offer full benefits to employees that only 40 hours as opposed to 32 hours, then you may end up with a lawsuit.
http://hcscando.com/payroll |
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4/8 schedule, benefits, and exempt status
posted at 11/4/2009 4:07 AM EST
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
"--------------------------------------------------------------------------------
To answer your main question, I would have to say No. 32 is still considered FT employment, and if you offer full benefits to employees that only 40 hours as opposed to 32 hours, then you may end up with a lawsuit. " Umm, NO where in the law is "Fulltime" defined. There is no law under which a 32 hour per week employee could file a lawsuit. If you think there is, I would call you to cite it. {But honestly I think this is just SPAM/unpaid advertising from a payroll company that has NO clue as to Benefits laws.} Companies have the right to choose who is covered under benefits and who is not (with the caveat that Section 125 plans and 401k plans and other plans covered under ERISA must be tested for nondiscrimination). |
Forums » Topic Forums » Benefits & Compensation » 4/8 schedule, benefits, and exempt status
