Salary differential when waiving insurance benefit

[scowell]

What is the name of your state? Curious. Oh! I mean Kansas!

I don't believe I am "entitled" to what I am asking about, but I am very curious if it is common practice. If there is some entitlement I am not aware of, all the better!

This Tuesday, I am having the final interview for a General Manager position for a small motel, and I expect to get the job. The corporation that owns it has motels in several states, but is a family-owned business. They offer health insurance to all full-time employees after 30 days, which is generous. If the employee wants to make it a family policy, the employee pays the cost difference.

My question is about the reverse situation. I am covered on my wife's employment policy, so I don't need the coverage. I would prefer to have the cost the company has budgeted for my insurance added instead to my salary. This is what was done at my last two jobs. I don't believe it's a legal requirement that I have that option, but I am asking if it is a common practice for employers to allow that option. I know I am free to ask for it in salary negotiation, but we pretty much agreed on the salary request I put on my application. I wouldn't endanger the negotiation by insisting on it, so that is why I am trying to find out how commonplace the practice might be.

At my last job, it added $5,000 a year to my salary because that is what the company would have paid to insure me. If they won't negotiate to add that amount to my salary in lieu of insurance, I suppose I could accept the free insurance and carry both policies, but that seems wasteful. So, should I ask for the differential in pay? And is it common for employers to agree to it?

Thanks for your help with my first question here. I'm sure I'll have more, especially if I get the GM position!

 

[Sockeye]

There is no legal entitlement and it's a matter of company policy. My wife is on my insurance and her last company paid her an additional $150/month to waive their insurance, and her recent employer has not given her the differance.

 

[Beth3]

Employers offering "fringe pay" to employees in lieu of taking medical insurance (and as an incentive for taking coverage through their spouse's employer's health plan if available) has become more common over the past ten years but I wouldn't say it's commonplace. Conversely though, some employers have instituted requirements that they will not offer health insurance to an employee's spouse if he or she is eligible for insurance through their own employer.

No matter what though, you're not entitled to the money in lieu of taking health insurance through your employer. Your employer isn't required to offer group health insurance to begin with unless you're in Hawaii.

 

[scowell]

Thanks for the quick replies. I knew I wasn't entitled under law, I just wondered if I had a leg to stand on in terms of asking for the benefit to be added to my salary instead, based more on common practice than anything. My last two employers offered it gladly as a substitute. I just don't know how the new employer will feel about it, so I am hoping that I am not the first manager to ask for the substitution in this company. I could just not bring it up until I'm eligible. No sense spoiling my chances for the job in the interview stage!

Thanks again, and any other comments are more than welcome. Any and all thoughts appreciated!!

 

[cbg]

While I agree it's more common than it used to be I think it would really be a stretch to call it commonplace. No company I've worked for has offered it. We'd have to REALLY want someone to agree to it, and even then I think we'd want something in writing, signed by you, that if you lose your wife's insurance and you have to come onto ours your salary goes down accordingly before we'd even consider it. But then I've worked for primarily small companies.

 

[Sockeye]

I could just not bring it up until I'm eligible. No sense spoiling my chances for the job in the interview stage!

I agree with this, to bring it up in the interviewing stage would likely not look good. I know I don't wan't to concentrate my time and energies to special deals outside the policy when looking to bring someone new on.

 

[scowell]

Thanks again to all who responded. Your knowledge and wisdom has pretty much affirmed what I thought to be the case.

I have decided to not ask about anything except what the company offers in my final interview. If I get the job and become eligible for the insurance benefit in a month, I could approach the subject casually, suggesting a compromise that would save them money, at their option. I mean, if it's going to cost them $4500 a year to insure me and I offer to waive it in exchange for a $3000 a year differential in a contract that states it clearly, I see no harm in suggesting it, but certainly not until I have proven myself to be a good employee for the first month.

For what it's worth, I was a small business owner for 18 years prior to this, and I always offered my employees the option to have benefits or raises, and they ALWAYS took the raises instead. So I never had to set up a benefit program! But if I am to be General Manager for one small motel that is part of a larger corporation, I will need to know what flexibility the corporation offers its employees, so I feel I should discuss the matter with them for this reason as well as my own inclinations.