• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Keep health costs out of the equation when considering hiring and firing

by on
in Employee Benefits Program,Firing,Hiring,Human Resources

It’s frustrating! Every year, employers face yet another jump in their health insurance premiums. And if your payroll has more older or sick employees, those costs rise even faster. Even adding one sick child to the list can spike your costs.

Before you even consider firing (or refusing to hire) someone because they might jack up insurance costs, count your dollars, not your pennies. You may be staring down a lawsuit that could dwarf whatever premium costs you hoped to avoid.

Recent case: After being fired, Jay Dybdahl sued his former employer. He claimed the real reason was that his son was seriously ill and, therefore, a drain on the company’s health plan.

The court sent the case to a jury trial. Dybdahl can argue that coincidental timing cast doubt on the company’s claim it had good reasons to terminate him. (Dybdahl v. Midwave, No. 09-331, DC MN, 2010)

Final notes: Simply put, it’s illegal under the ADA to terminate someone because of his or her association with a disabled person. Plus, the federal law governing health plans—the Employee Retirement Income Security Act (ERISA)—makes it illegal to fire someone in order to deny a benefit he or she would otherwise receive.

Imagine how a case like this would play in front of a jury. The sky’s the limit on damages.

Advice: In a situation like this, just bite the bullet. Either you or your employees will pay higher premiums.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/11970/keep-health-costs-out-of-the-equation-when-considering-hiring-and-firing "

Leave a Comment