Can an employer set up a STD plan with two levels of benefits- say 60% for hourly and 70% for salaried employees???? I would think they can since benefits are not being provided under a 125 plan.

Am I missing any nondiscrimination testing issues?

If the employer can't do that, is there anything that prevents the employer from setting up two separate STD plans...one for hourly and one for salaried employees?

Tx. in advance for any feedback.