Do they have to offer benefits?

Question

I'm trying to find out where I can look to see if my employer should be offering health benefits to full time employees. I thought when a company employed a certain number of employees they had to offer health benefits. Does anyone know of a site I can go to or do you know the answer? I know different states have different laws but I thought this was a federal law.

Answer 1

You are only partially correct.

There is no federal law in the US requiring employers to offer health insurance to their employees.

Massachusetts just passed a law that says by a certain date, all citizens have to have insurance and if you don't get it from your employer, you'll have to buy it yourself. In other words, you'll be forced to buy it on your own if your employer doesn't provide it.

IF your employer does offer coverage, there are a few things they must do.

First if it is an employer under 50 employees, they'll have to provide you a policy with all the mandates required by your state. Some states have few benefit mandates. Many have a lot.

If your employer has more than 50 employees, they can offer a policy under a law known as ERISA which lets the employer opt out of state mandated benefits, taxes and high risk pool surcharges. ERISA only mandates two benefits (maternity coverage for employers with more than 15 employees) and reconstructive breast surgery after mastectomy). Other than those two....large employers can carve out any benefits they want. So, not only are they not required to even give you health insurance in the first place, but big companies can give you health insurance that doesn't really cover anything.

Answer 2

Nope, businesses aren't required to provide employee benefits...yet. Stay tuned, however. Several states are toying with the concept. I think Hawaii may have some kind of mandatory law in effect for businesses over a certain number of employees, but I'm not sure about that.

You may be thinking of the COBRA provisions involving health insurance. Under most severance situations, you must be offered to continue your then-current health insurance for at least 18 months. You have to pay for the entire premium yourself.

Answer 3

Employers do NOT have to offer benefits to employees; most of the time they do because they can't find anyone to work for them unless they do. But if they have plenty of potential employees willing to work for no benefits, most likely they won't.

There is no law mandating that an employer MUST offer health insurance; it's a straight function of market.

Answer 4

Employers don't actually HAVE to offer any benefits to employees - most do to keep them happy. But, there's no law to require them to offer anything.

Answer 5

Usually companies will not give out benefits until you are finished a probation period. Most likely it's 3 months. I would ask your employer cause unless you ask I don't think they would want to pay towards benefits.

Answer 6

First look to the employee handbook. Then go to the department of labor (I think) to get additional information. Not sure which state you are in but I believe there are some variations to the requirements.