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Pre-Paid Legal Services
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Pre-Paid Legal Services
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As an employee benefits consultant, I wonder problems an employer could experience in offering prepaid legal services to employees as:
1) a company paid bene
2) an employee paid bene
Mike Swingle,
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Pre-Paid Legal Services
posted at 7/13/1999 4:17 AM EDT
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Posts: 4
First: 7/13/1999 Last: 7/13/1999 |
As an employee benefits consultant, I wonder problems an employer could experience in offering prepaid legal services to employees as:
1) a company paid bene 2) an employee paid bene Mike Swingle, mswingl1@tampabay.rr.com |
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Pre-Paid Legal Services
posted at 7/14/1999 6:22 PM EDT
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Posts: 2217
First: 6/16/1999 Last: 12/13/2001 |
Such benefits are pretty common. Of course, making sure the company and the employee understands that you do not endorse any particular attorney and that the attorney is the employee's (not the company's) is a good idea. Be careful how the plan is set up. Wouldn't you HATE to find out that one of your employee's is suing the company for discrimination and the company is paying the employee's lawyer directly to do so under a pre-paid legal services plan. Wouldn't that be a HOOT! The nature reaction (terminate the plan or the lawyer or both) could be illegal retaliation! Oh my gosh! Just thinking about that problem gives me the chills. |
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Pre-Paid Legal Services
posted at 7/14/1999 6:34 PM EDT
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Posts: 2217
First: 6/16/1999 Last: 12/13/2001 |
The "problems" would largely depend on the nature of the legal services being offered, the reason it is deemed necessary, the particular circumstances, etc. For example, do the legal issues concern topics where the company's interests and employee's interests are perceived to be aligned or divergent? Is the attorney providing the legal services to the employee already retained (or employed) by the company? Regardless of who pays, does the employee have input into who will represent him? What recourse is available to the employee, and what liability could attach to the company, for alleged legal malpractice? To the extent the company "pays" the benefit, who will determine and accept the income tax liability for these services? |
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