Forced to pay for free health insurance! HELP

[Shana819]

What is the name of your state?NJ
My employer offers health insurance as a no cost benefit to all eligible FULL TIME employees. I am a FULL TIME employee of two years. For 2 years I have waived the benefit because of my husband's coverage. Now that my husband's insurance has changed, I would like to take the policy that my company offers as a "no cost benefit". I am being told, however, that in order to be insured I will have to have my hourly rate decreased by the full amount of the premium. The reason given is that my starting salary was based on the fact that I didn't need insurance.That is entirely untrue considering I was not eligible when I started. I started as PART TIME. At no time during my employment has my waive of insurance been related to my salary or my pay increases. It hasn't even been discussed! Can they do this to me? If I choose not to accept the insurance, can I ask for the difference in the form of a pay increase? Please, if you have any suggestions - respond!! I am at my wits end. Thank you

 

[pattytx]

There is another similar post to yours (might even have been you).

Under a Section 125 plan, premiums paid by the employee reduce taxable wages for FIT, FICA/Medicare and, in most states, SIT.

What the employer appears to be telling you is, that as a part-time employee, you are responsible for paying a portion of the premiums, whereas full-time employees do not contribute. Under this scenario, your gross hourly rate is not being lowered; your taxable wages are.

Now, if your GROSS hourly rate is being lowered, and ALSO, the deductions are being made on a pre-tax basis, that is somewhat different. However, it still would not be illegal, as long as you were notified of the lower hourly rate. The employer is allowed to manipulate hourly rates and to offer different benefits to different classes of employees, as long as such actions are not done solely for an illegal reason.

 

[Shana819]

Patty, Thank you for your response. I have updated my question as It may have been a bit too confusing. (sorry) Basically, I started there as a part time employee - ineligible for insurance at no cost. For the past 2 years I am a full time employee who is eligible but has waived the coverage. I am still full time. Does that change anything? My wage is is being reduced so that I am paying the enitre cost of the premium. Wouldn't a "no cost benefit" be in addition to one's salary?