When must we announce new benefit terms? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

When must we announce new benefit terms?

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Q. Currently, our company pays 70% of employees’ health insurance premiums. Now we need to either decrease the percentage or possibly ask employees to pay the entire premium. How much notice must we give employees before making such a change?

A. Barring some contractual obligation (in a collective-bargaining agreement, for example), there is no legal requirement to provide notice of such a change.

This is, however, a significant employee-relations issue. Therefore, it makes sense to engage in extensive communication with your employees regarding any change in health care coverage. Provide as much notice as possible under the circumstances.


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