My office has been struggling with what health benefits,if any, we are legally required to offer to our part-time employees (we have one 20 hr./wk. employee and one 30 hr./wk. employee). We pay the full health insurance premium for our full-time employees (40 hr./wk.) but have not offered any health insurance to our part-time employees. I have searched ERISA, the IRS Code,etc. and cannot seem to find guidance with regard to this issue. I would appreciate any input you might have.

Check Code section 505 if benefits are paid under a VEBA.

[This message has been edited by Rob (edited 11-17-98).]

Thanks, but our health insurance benefits aren't provided through a VEBA. Rather, we contract directly with a private insurer.

LOOK AT YOUR INSURANCE CONTRACTS FOR THE DEFINITION OF FUL-TIME EMPLOYEE. A STANDARD INSURENCE CONTRACT USUALLY REQUIRES 30HRS. OR MOR E PER WEEK TO DEFINE ELIGIBLE EMPLOYEES. HOWEVER, YOU, AS THE PLAN SPONSOR HAVE THE RIGHT TO REQUIRE 40 OR MORE HRS PER WEEK AS FULL-TIME ELIGIBLE EMPLOYEES. I KNOW OF NO LAWS THAT REQUIRE EMPLOYERS TO PROVIDE GROUP HEALTH, DENTAL, LIFE/AD&D, LTD AND OTHE SIMILAR GROUP INSURANCES. IF YOU ARE IN A STATE THAT REQUIRES SHORT-TERM DISABILITY, THEN YOU MAY HAVE TO PROVIDE STD TO PART-TIME EMPLOYEES. STATES THAT I AM AWARE OF THAT REQUIRE THIS ARE NEW YORK, CALIFIORNIA, ROHDE ISLAND, NEW JERSEY AND HAWAHI.

generally you're (the employer) the one to set the eligibility requirements, although most fully insured plans will charge you more if you want to include p/t. if your eligibility doesn't include anyone working less than 40 hours per week, then there you go. there's no legislation that says you HAVE to cover part-timers.

the bottom line is that you can exclude any group of employees from coverage as long as the exclusion is consistently applied. p/t versus f/t is a legitimate criterion for exclusion.

If your plan is fully insured or otherwise subject to state laws, generally the statutes of that state will define who is considered a full-time employee. For example, in FL full-time is considered 25 hours/week or more.