Legal Question in Business Law in California
The owner of a small business in California hired me July 31, 2011, as a full-time worker. The terms discussed and accepted were $18 per hour for my pay and among the benefits was inclusion into the company health plan, for myself only (no family members) after a 90-day probationary period had passed, with the company covering 65% of the premium and myself covering the rest (which would be deducted from my pay). The premium is about $900 total. I entered the health plan a month late, on Dec. 1, 2012 due to a month lag in my employer getting me the paperwork to enroll. On January 25, 2012, my employer told me that he was revising the policy to have a $250 cap on the company pay-in for the premium. The result is that instead of my paying about $300 a month for my originally-agreed upon share of the premium, I am now having almost $600 deducted monthly for my pay-in. I am the only one in the office affected, as I am the oldest person and have the highest premium due to my age (59). Is what my employer did legal?
2 Answers from Attorneys
I believe as long as it applies to everyone in the company equally, they can do it.
As you get older these types of costs go up a lot. Also because of Obamacare, which is really an insurance company's wet dream, insurance companies are substantially raising rates.
Employment non-discrimination laws like ADEA and ERISA/IRC have certain requirements. What do you mean "I am the only one in the office affected" - Do you just mean only your pay in has gone up, or are you also referring to the company pay in? Also how many employees does the company have?
Try consulting a local labor law attorney for more help.
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