Mandatory purchase of LTD insurance

[johndoe23]

What is the name of your state? CA
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I've been with my company just over 3 years. The company resells I.T. hardware and services. I'm a manager of a team of engineers.
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We just went through our annual 'open enrollment' period for benefits. While reviewing my selections I noticed an area that read "NOTE: The plan(s) listed below represent current coverage that will continue through the upcoming plan year."
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Below the note listed the typical company sponsored insurance additions: Basic Life/AD&D Insurance Plan, Short Term Disability Plan and Long Term Disability. The first two were paid 100% by the company however the Long Term Disability had an amount under the employee contribution section. I decided to contact the provider and ask why I was being forced to pay this.
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The provider replied back and stated "The LTD is a mandatory plan. If you have any questions, please see your HR representative." MANDATORY? I then contacted my HR benefits coordinator and was told LTD coverage is mandatory by all associates regardless of if they purchased medical coverage or waived it entirely and that the associate was required to pay 50% of the premium.
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My question is: Is it legal for a company to make Long Term Disability coverage mandatory then require the employee to pay 50% of the premium?
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What is the name of your state? CA

 

[xylene]

Mandatory employee contributions to long term disability plan are legal.

Employers can mandate various coverages. Even health.

Why? A rationale:

Because many times the company pays a group rate. You pay your share. The company can't opt you out of their bill, so they have no duty to opt you out.

Also they are allowed to define benefits plans.

 

[johndoe23]

Thanks for the follow-up.

The company is saying this insurance is a condition of employment. Can they enforce this after I've been hired? (been employed with them for 3+ years) I always oupted by 'waiving' all the medical, dental, vision, etc. as I am covered elsewhere yet I must still pay for the LTD.

How is this legal? It is not pre-tax either. They are giving the option for the employee to pay 100% of the premium so that it is pre-tax. I was approached by an employee that cannot afford even the 50% premium and will go into financial hardship over it. Very frustrating all around on this one.

 

[ecmst12]

I thought the employer could only mandate coverage if they are paying 100% of the premium. CBG?

You can't get disability coverage through your spouse, so far as I know, so it's not a terrible idea to have this coverage anyway. And at least as far as I've seen, it's only a few dollars from each check, not like they're taking a significant amount of your pay for it.

 

[cbg]

I thought the employer could only mandate coverage if they are paying 100% of the premium.

I always thought so too, but I can't back it up. I don't know if it's Federal law, state law, or a company policy at the insurance company where I used to work.