Employment waiver

[Serencorgi]

What is the name of your state? California
Question. Someone works for a small company that has 4 or 5 locations. Non union company. He's hired part time. His hours get bumped to 40. The manager tells him he has to sign a form turning down benefits or his hours will be drastically reduced. Is this legal?

 

[cbg]

What benefits are we talking about? It matters.

 

[Serencorgi]

This isn’t a termination issue. Please read the following...

Question. Someone works for a small company that has 4 or 5 locations. Non union company. He's hired part time. His hours get bumped to 40. The manager tells him he has to sign a form turning down benefits or his hours will be drastically reduced. Is this legal?
The employee is being asked to waive his rights to medical and retirement benefits that come with being a full time employee.

 

[quincy]

This isn’t a termination issue. Please read the following...

Question. Someone works for a small company that has 4 or 5 locations. Non union company. He's hired part time. His hours get bumped to 40. The manager tells him he has to sign a form turning down benefits or his hours will be drastically reduced. Is this legal?
The employee is being asked to waive his rights to medical and retirement benefits that come with being a full time employee.

Is the increase in hours a temporary increase?

 

[Serencorgi]

It depends. If he signs the waiver they will stay 40, but if he doesn’t sign then they will cut his hours back drastically (is what he was told).

 

[quincy]

It depends. If he signs the waiver they will stay 40, but if he doesn’t sign then they will cut his hours back drastically (is what he was told).

I meant, is the increase in hours due to a temporary business need, such as an increase in hours over a holiday season, with a cutback in hours after the need passes?

 

[Serencorgi]

Oh. Sorry. Many of the employees have left to return to university. It has been a month and the store has no hired on anymore staff.

 

[quincy]

Will these same employees be returning to work at the business after their school term ends or were they only temporary, summer employees?

What sort of business is this (e.g., fast food)?

 

[cbg]

I'm tired of pulling teeth.

Was the increase in hours for the person in question ever intended to be permanent, or was it intended to be temporary, at the time it was initiated? Please answer yes or no.

 

[quincy]

The employer can matter. The benefits are medical and retirement.

 

[cbg]

That's why the employer doesn't matter. We're talking about protected benefits.

 

[quincy]

Small restaurant businesses do not have to provide health-related benefits.

 

[cbg]

There are four or five locations, he said. That's going to put him over the floor for employees, almost certainly. And with retirement plans, the number of employees is irrelevant; it's the number of hours the employee works.

 

[quincy]

There are four or five locations, he said. That's going to put him over the floor for employees, almost certainly. And with retirement plans, the number of employees is irrelevant; it's the number of hours the employee works.

Probably. Especially since the manager is asking that the form be signed.

But you know that the type of business - as well as the size - can matter. Not every employee of every business is entitled to benefits, even if the employee works 40 hours a week. And, with employees said to have left for college, this sounds to me like a restaurant industry business.

 

[cbg]

Yes, I'm well aware that not every employee of every business is entitled to benefits. I work in employee benefits, as you should remember. But Q, there is no restaurant exemption from the ACA. It is true that many restaurants are exempt because they do not meet the number of employees to be subject to it. However, the OP has said this employer has 4 to 5 locations. Even if it's four, and even if each restaurant has only thirteen employees total, that's going to be enough in total to make them subject to the ACA. And even if they don't meet the ACA requirement, as I indicated that's irrelevant for retirement benefits, as is the industry.