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| Is it o.k. to give an employee a hourly wage increase because they don't participate in the health insurance program? Is it o.k. to say, "Since you aren't in the health insurance program, we will increase your wages $1 per hour" As long as you do the same for every employee that doesn't participate, and you don't decrease their wages if at a later time they do join the health insurance plan.
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| At my company what we did was offer employees who elected not to participate in the medical benefits $100.00 per month. The reason we did not increase the wage is because not many of our employees are paid hourly. It is also better for us to track actual merit vs. benefit increases.
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| Yes, you need to keep your apples and oranges separate. If you compound it in the hourly rate, several different things happen. You have to pay overtime at that rate and you may end up paying more in the long run. Also, the employee (and sometimes the employer) forget that the $1.00 raise had to do with the bonus. In the long run, it's best practice to keep the insurance bonus separate from wages.
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