Employer's policy for covering Employees

[Guest HRSoftware]

Question for experts:

Our company's current policy is to pay for the single portion of the employee's medical benefits. (If they are single, their medical is entirely covered, if they are family they have to pay the remainder after the single rate is taken out).

We have a Manager who wants to offer to an employee that the company will pay ALL of his medical (he has a family) rather than give him a raise.

In other words, this one employee would get his medical paid for by the Employer in full while all other employees at his level still on the current policy.

Obviously, this is not the right way to go and our Benefits policy SHOULD NOT be a tool for negotiating.

My question is, is there somewhere I can go to show him in writing that legally we can not make this change for only one employee?

[mroberts]

Yes, show him the Section 125 non-discrimination rules. All members of the same class have to be treated equally or else his actions will put the plan in jeopardy. If he wants to negotiate something different for this individual, he should make up the difference in pay and outline the reasons for not being able to pay the entire cost for healthcare.

[Guest HRSoftware]

Thanks....I figured as much, I just wanted to be able to pint to something and say, "As per this....."