What types of employee benefits are not subject to ERISA?
Employee benefits that are not subject to ERISA (Employee Retirement Income Security Act) are benefits that are not considered to be least partially funded or insured by employer contributions or insurance. Such benefits are not subject to the protections of ERISA and may include things like employee discounts, bonuses, or holiday gifts from employers. In Washington, some employee benefits are subject to state law. These laws may provide some protections in terms of certain types of benefits, such as those related to health care, vacation leave, or pension plans. Certain types of employee discounts, such as those offered on individual services to the public by an employer, are also typically not subject to ERISA. Such discounts may include discounts on lodging, transportation, retail, or leisure activities. Employer-sponsored health flexible spending plans and other health care coverage, such as prescription drug and vision care reimbursement, are also not subject to ERISA, as they are not a retirement plan. Employer-sponsored 401(k), 403(b), and 457 plans, however, are subject to ERISA, as are prepaid medical plans, short and long term disability, and life insurance. Ultimately, the best way to determine whether a benefit is subject to ERISA or not is to examine the specific requirements of the plan and any applicable state laws. While some benefits may not be subject to ERISA, employers should still take appropriate steps to ensure that the plans are compliant and that employees are adequately covered.
Related FAQs
Are employers required to cover disability benefits?How can employers ensure their employee benefit plans are legally compliant?
Can employers remove existing benefits?
What are the different types of retirement plans available to employers?
What types of employer contributions are required for employee benefit plans?
Are employers required to offer Vision and Dental Insurance?
What are the legal requirements for providing parental leave?
Are employers allowed to offer long-term care insurance policies?
How does the Family and Medical Leave Act affect employee benefits?
Are employers required to provide notice of employee benefit changes?
Related Blog Posts
Understanding the Basics of Employment Benefits Law - July 31, 2023The Different Types of Employment Benefits Laws - August 7, 2023
Identifying Key Provisions in Employment Benefits Law - August 14, 2023
Common Misconceptions About Employment Benefits Law - August 21, 2023
What Employers Need to Know About Employment Benefits Law - August 28, 2023