Health Coverage Opt-Out Payment

[Scott]

I've seen a couple of threads stating that if an employer pays cash to employees who opt-out of health coverage, a cafeteria plan needs to be in place to avoid constructive receipt for those who elect the health coverage. Is this still the case if only 1 employee is given the choice to receive cash for opting out? Are all other employees (who don't have the cash option) affected such that a cafeteria plan is necessary?

[E as in ERISA]

How would you prove that the other employees didn't have the option and just turned it down?

Once one employee has been given the option, it creates the suggestion that others might be able to do it, too.

[Scott]

The 1 employee's cash payment in exchange for non-election of health coverage would be spelled out in an employment agreement.