Insights

Home > News & Insights > Insights > Increase in Temporary Workers Warrants Review of Employee Benefit Plans

Share this on:   a b j c

Increase in Temporary Workers Warrants Review of Employee Benefit Plans

Published by on April 22, 2010

The temporary employment services industry has shown growth for the fifth consecutive month since August 2009.  This means that employers are likely hiring more employees with other-than-permanent employment status.  An article in HR Magazine notes that this trend merits a review of a company’s benefit plans to ensure that coverage is being provided only to […]

The temporary employment services industry has shown growth for the fifth consecutive month since August 2009.  This means that employers are likely hiring more employees with other-than-permanent employment status.  An article in HR Magazine notes that this trend merits a review of a company’s benefit plans to ensure that coverage is being provided only to those employees entitled to it.  The article suggests that the language in the plans include definitions for temporary and permanent employees so as to avoid any confusion as to which employees fall into a particular category.  The article also cautions that employers should review all company documents that relate to employee benefits plans, including but not limited to summary plan descriptions, insurance policies, and company forms.  In the past, this has been a fertile area for litigation.

 Source:  HR Magazine, April 2010:  If Adding Temps, Audit Your Benefits Plans

Topics: ,

Share:   a b j c