Is it discriminatory if an employer pays 100 percent of the premium for salaried employees and 50 percent of the premium for the remaining hourly employees?
Providing different coverage levels for different classes may be considered discriminatory, as the higher-paid employees would be paying less for their coverage than the lower-paid employees. This aspect of discrimination is not addressed directly in the Health Care Reform law but can found be in correlating tax law (Section 1.105-11(c) and Section 105(h) of the Tax Code). Contact your tax advisor or benefits attorney for more specific guidance.
Related Questions
- If the employee is required to pay only 35% of the premium, how is the employer reimbursed for the remaining 65% of the premium?
- If the employer denies the employees request for the premium reduction does the employee have appeal rights?
- Does an employer have to contribute 50 percent of the employees premium?
