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Is it fair to factor unusually high health plan costs into an employee’s total compensation package?

09/14/2016

Q: “Our standard health care benefits cover an employee’s entire premium. In practice, that usually means factoring in roughly $3.5 to $4K into the total compensation package. A candidate being interviewed asked about benefits and then voluntarily disclosed having a family (spouse and three children over 10 years of age). The candidate also (again, voluntarily) shared an interest in coming onto our health care plan, as the spouse may be considering a different job opportunity. Depending on details, we estimate that the family plan (which would be subsidized after 60-75 days of employment) could total between $18K and $24K. We were originally considering a total compensation range of approximately $55-$60K for the position, which would translate to a base salary of approximately $48-$50K (not including the standard benefits of paid leave and individual health care coverage). Can we factor in the expected family health care costs in our salary negotiations? Factoring the total health care cost into our conversation would also likely change the position into nonexempt under the new law.” – Anonymous, District of Columbia

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