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A reminder that employee benefits may not be terminated due to nonpayment of the employee contribution. Benefits may only be terminated when eligibility for the employer contribution toward PEBB benefits ends as outlined in WAC 182-12-131(7) and PEBB Policy Addendum 19-1A.
If you are unable to collect the employee contribution due to the employee not responding to the employer's requests for payment of premiums, the employer must pay for PEBB insurance coverage billed by the PEBB Program regardless of an employee's underpayment or nonpayment.
We suggest the following guidance on how you can address unpaid employee premium payments. Speak with your HR and legal advisers as you deem necessary.
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Prepayment: Implement payroll deductions for the employee contribution from the last payroll (or last several payrolls) based on the anticipated duration of the absence from work or the duration of the eligibility period following the end of payroll deductions (e.g., as much as 6 months for faculty maintaining benefits through two-year averaging).
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Pay-as-you-go: Negotiate timely payments by the employee on the same schedule as if payroll deductions were occurring. (Consider incorporating the "pay-as-you-go" concept into employment contracts as a condition of continued employment. For example, "Failure to remain up-to-date [employer option on the definition] will result in termination of the employment relationship.")
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Electronic Funds Transfer (EFT): Negotiate and implement automatic electronic payments prior to the employee's transition to nonpayroll deduction status.
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Collection agency: Engage a collection agency to recover the employee contribution.
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Engage the HR department: How does HR deal with similar personnel issues like employee failure to submit payment for other fees such as parking, association membership, dues, or clubs? Consider responding similarly or involving HR to engage the employee.
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