Employees are at the heart of every business. Studies show that a good health benefits program enables employees to be more focused on work which grows productivity. Take care of your employees with a complete benefits package that can especially help an employee with reduced work hours. Below are some health benefits that you as an employer can introduce to your workforce or learn more about in order to help your employees with reduced work hours.
Short-Term Disability (STD): If an employee becomes pregnant or suffers from a non-work-related illness they may be eligible for this type of insurance. STD insurance pays out a portion of the employees’ income if they are unable to work. Benefits are paid directly to the employee and some policies can cover up to 70% of wages. The duration of benefits with STD vary, but some last anywhere from three to six months.
Long-Term Disability (LTD): Much like STD, Long-Term Disability pays out a portion of employees’ wages if an employee is unable to work for a long period of time. Benefits for LTD are paid out over the course of sometimes two to 10 years or more depending on the policy. For both LTD and STD, there is an elimination period, which means a certain amount of time must pass between injury and receipt of benefits.
Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA): Employees qualify for COBRA when a job situation changes. An employee may lose their job, or work hours may be reduced so much the employee no longer qualifies for health benefits based on the terms laid out by the plan. Furloughed employees may also qualify for COBRA if the health plan becomes inactive due to reduced work hours. COBRA allows an employee to keep his or her health plan for up to three years after the employee was laid off. The biggest caveat to COBRA is that employees will need to pay the full cost of the health plan without the employer contribution in place. The employee will also be subject to any changes the employer decides to make for the health plan.
Family Medical Leave Act of 1993 (FMLA): United States Labor law requires employers to provide employees with job protected unpaid leave for qualified medical and family reasons. There are certain qualifications such as: working for an employer for at least 12 months, accumulating 1,250 hours of work completed and the employer has 50 or more employees within 75 miles of the job site. Employees can take up to 12 weeks of leave per 12-month period.
