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Subject:
definition of full-time employee for group health insurance purposes
Category: Business and Money Asked by: timw1-ga List Price: $20.00 |
Posted:
26 Jan 2005 13:22 PST
Expires: 01 Feb 2005 12:52 PST Question ID: 463834 |
Would it be legal for company policy to classify its sales workers as being full-time if and only if they meet specified sales goals? To be clear I'm discussing "outside sales" here, and the salespeople are nonexempt. They would still be paid according to their *reported* hours (OT pay in accordance with labor laws if 40+ hours are reported) but when it comes to company benefits such as group health insurance, I would like to offer it to those salespeople who meet the above definition of full-time. In particular I am concerned that my health insurance company -- who requires that my employees be "full-time" in order to be eligible for coverage -- will balk if I have salespeople receiving insurance if they are not working as many hours as the insurance company would like to see. My whole intent here is to provide coverage to as many employees as possible...and in any case I feel productivity is a better barometer of who is deserving than reported hours. As my insurance company does not define "full time" I am wondering if having the above definition as clearly-stated company policy would suffice if the insurance company should ever discover that we have people insured with fewer hours than the insurance company would like. What do you think the chances are that the insurance company would cancel coverage for those employees in that event? I realize that with this I'm asking more for an opinion, but if it has some basis I'd love to hear it. Also -- and this is quite important -- to paraphrase my opening question, I would like to know that I would not be breaking any laws by taking this approach. The last thing I would want would be to be charged with fraud when all I want is the best for my employees...even those who don't work 40 hours. |
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There is no answer at this time. |
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Subject:
Re: definition of full-time employee for group health insurance purposes
From: neilzero-ga on 28 Jan 2005 12:28 PST |
The definitions vary from state to state, so your location would helpful. Neil |
Subject:
Re: definition of full-time employee for group health insurance purposes
From: timw1-ga on 28 Jan 2005 13:27 PST |
Sorry, I guess that *would* be useful. I'm in Pennsylvania |
Subject:
Re: definition of full-time employee for group health insurance purposes
From: diamondhead-ga on 29 Jan 2005 09:54 PST |
When Wal-Mart massages the truth for press releases they claim to have a certain percentage of "full time" workers. Their figures include anybody with 32 hours a week. Your state's employment security department may have the answer for you. |
Subject:
Re: definition of full-time employee for group health insurance purposes
From: timw1-ga on 29 Jan 2005 17:55 PST |
Thanks diamondhead...I didn't even know there was such a thing as an employment security department, but I'll be sure to check it out next week. |
Subject:
Re: definition of full-time employee for group health insurance purposes
From: timw1-ga on 01 Feb 2005 12:52 PST |
FYI...I am closing this because I got the answer I needed from the US office of Employee Benefit Security Administration. |
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