Is it legal for a non profit to cut employee salaries?
Full Question:
Answer:
Generally, an employer may enact a pay cut of any amount, as long as it doesn't violate minimum wage or discrimination laws, or a union or employment contract. If the resulting pay doesn't violate the compensation terms of an employment or union contract, is still at least the minimum wage amount, and doesn't discriminate based on race, sex, religion, national origin, physical disability, or age, it is typically legal.
The federal Employment Retirement Income Security Act (ERISA), which applies to most private sector employer-sponsored benefit plans, does not require employers to provide health care benefits to employees. If an employer chooses to offer a health benefit plan, it must comply with ERISA requirements, which relate to fiduciary standards, plan description documents, reporting, and benefits.
• Divorce or legal separation
• Dependent child losing eligibility If the employee or dependent lost coverage due to any other Qualifying Event, COBRA coverage will last for up to 36 months. Employees who elect COBRA coverage must pay up to 102% of the premium paid by the employer to the insurance company for their coverage.
The Health Insurance Portability and Accountability Act of 1996 made the most comprehensive changes to job-based health insurance coverage. HIPAA helps people get and keep health coverage by making it easier to qualify for coverage through their job, and helping them stay covered as they transition in and out of job-based coverage. HIPAA requires that if an employer offers health insurance as part of its benefits package, it must offer that plan to all employees, regardless of health status. This is true no matter how many employees are in the company. Employers are required only to make sure that any health benefits they do offer do not discriminate based on health status