Benefits when your company is bought by a new company.

[ttyl211]

What is the name of your state (only U.S. law)? MN

A year ago the company I was working for was bought. A few weeks later a handful of us were made to fill out job applications for the new company and since then our paychecks have come from new company. Everybody else at the company is still receiving paychecks from the old company.

The new company's website lists retirement benefits and medical benefits/health insurance as part of their benefits. If my paychecks are coming from them should I not be getting the benefits they offer?

In August last year the handful of us on the new company's payroll all received in the mall a letter about joining up for the company's 401k. I went to work the next day and we were told our line of business was not eligible for 401k at that time.

Also when I look at the company's website for job posting it says " is an Equal Opportunity, Affirmative Action Employer." I have not idea if that pertains to me or not.

Any advise is greatly appreciated. Thanks.What is the name of your state (only U.S. law)?

 

[cbg]

Merging the benefits options of two companies is a long and tedious process. Having been on both sides of the desk on this issue, I can tell you that it could be quite two years before the dust settles. In the meantime, nothing you have described is illegal or even unexpected. While the due diligence is done and benefits contracts are re-written, it's quite common (and quite legal) for you to continue the benefits of your old company, even if your paycheck is coming from the new company.

This is not even remotely what Equal Opportunity means; it is not that it does not apply to you, but that it does not apply to this situation. Equal Opportunity means that you will not be treated adversely on the basis of your race, religion, national origin or other characteristic protected by law; it does not remotely mean that you have to be given the benefits of your new owner. Legacy Company A and Legacy Company B are not characteristics protected by law; it is therefore quite legal for the benefits to be different. It is even legal for it to be based on job description or department.

 

[ttyl211]

cbg, thank you for the reply. So even in 1 or 2 or even 3 years there is no change in benefits there is nothing I can do? Once again thank you for your reply.

 

[cbg]

That is correct. There will likely be a change in benefits before three years; two has been the average in my experience (and I've gone through this more than once). It might be less if the companies are smaller rather than larger. But benefits are not an entitlement and unless you work in Benefits (which I do - I've got more than 30 years experience in the field and it's pretty much all I've done for the last decade) you really have no idea how much work is involved in merging the two company's benefits together in a way that complies with all the applicable laws. It is by no means a quick or easy process for the Benefits office.