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Posted

Often times temp agencies will provide an employee on a temp-to-hire basis. The idea is, see if you like the employee, if you do, go ahead and hire them.

The question is, what is the date of hire and when do you start tracking eligibility? Vesting Service? Is it the day the payroll transfer? Or the date the employee first performs an hour service?

Any references to court cases or official documents would be great, although I'm curious to know what everyone's thoughts are.

Austin Powers, CPA, QPA, ERPA

Posted

Reading the microsoft cases will only make you dizzy and confused. Check the plan document. Some plans cover prior service as a leased employee for vesting and eligibility but not for benefit accrual purposes. If plan is silent then apply general rule that an individual is eligible to participate if he performs service as a common law employee under the Darden case and is a member of the employees who are eligible to particpate in the plan. Never seen a case where a former leased employee sued for vesting service. Plan admin has discretion to credit employee with eligibility/vesting service even if plan does not explicitly provide for such credit.

mjb

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