There is an employer that requires employees to participate in mediation for employment-related issues. If the employer wants to pay part of the cost of the employee to retain counsel, is that permissible under a "prepaid legal services plan"? My hunch is no because it is not a "personal" matter, it is a business matter so to speak.

In any event, it is my understanding that it will be taxable to the employee unless it qualifies as a working condition fringe benefit.

Any insight will be greatly appreciated!

Thanks

Don't know if this helps but what I do know is the employer can get a clause in the Pre-Paid Legal contract which excludes the employee from using PPL against the employer in a work related incident.