Eligibility for voluntary benefits (vacation, sick leave, medical insurance, retirement benefits, life insurance and most disability plans) is at the discretion of the employer. Employers should be certain that their policy is clear on what benefits are offered to full time vs. part time employees and the eligibility requirements for these benefits (number of hours, types of benefits etc.) The policy should be administered in a fair and consistent manner. One exception is under the Employee Retirement Income Security Act (ERISA) with the "1,000 hour rule". Employees who have completed 1,000 hours of service in a period of 12 consecutive months are eligible to participate in any company pension or profit-sharing plan that is offered to other employees. This requirement applies to both full-time and part-time employees.
There are mandated benefits such as unemployment and workers compensation that may be required under state law. Employers should check the laws of the states in which they operate for the requirements of mandated benefits.
Please Note: This material is provided as general information and is not a substitute for legal or other professional advice. Contact the Knowledge Center for more information.
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