What are some discrimination "red flags"?

Written by Aimee Reynard
Updated 3 years ago

The following are examples of "red flags" for discrimination:

  • Separate cafeteria plans for different employee groups (i.e., hourly and salary)
  • Exclusion of part-time, seasonal, or temporary employees
  • Employees in one division or company in a controlled group are covered but not another
  • Employment requirements (i.e., waiting periods, entry dates)
  • Entry into the plan is delayed beyond the first day of the first plan year beginning after the date the employment requirement is met
  • The plan bases employer contributions or benefits on years of service or % of compensation
  • An employer with a single cafeteria plan varies benefit contributions and rates for different groups of employees
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