HR Home Forums Answer for extended health benefits premium changes employee and employer 3 months

Conner Lantz
Keymaster
Post count: 4836

Although you have communicated that changes can take place at the company’s discretion for operational needs – if push came to shove, you could be in a difficult situation having to prove the operational need. This proof could be at the cost of a civil case and all the associated costs with a legal action. It is highly likely that any mediator or court would default to “reasonable notice” and whether or not that was given. Of course “reasonable notice” is difficult to determine because it is dependent on the severity, need, and operational costs or undue hardship to the company.
In this case, it is not unreasonable to default to as much notice as possible, especially given the effect to employees take home pay and benefits. Employees might need time to consider signing up to a partner’s plan in the event that they opted out because yours was better at the time. They may also need time to consider the slight impact to their take-home pay and what, if any, concessions need to be made.
It would not be unreasonable to give as much notice as possible and afford some transition concessions if need be. In this case, 90 days notice would be, at a minimum, a reasonable notification period.