Legal Question in Business Law in California

The company I work for provided health insurance to the employee. If you wanted your family insured you paid the premium or got the insuranace out side the company. Unless you were selected to be a shareholder. The shareholder recieved free medical for the entire family. It is my understanding that this practice was illegal and has discontinued and only the employee recieved the company sponsored medical benefit. The company is not publicly traded. This has been the practice of the company for 20 years.

Can I sue to get reimbursement of premiums I paid outside the company plan for the last twenty years ?


Asked on 11/19/10, 7:27 am

3 Answers from Attorneys
Terry A. Nelson Nelson & Lawless

Your understanding is wrong. Different categories of employees can have different plans. Owners / shareholders always get better plans.

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Answered on 11/24/10, 11:19 am
Kevin B. Murphy Franchise Foundations, APC

As a franchise attorney I agree with the other attorney answer. Think about it; officers, managers, etc. are often given extra perks, like salary, bonuses and better medical plans. That's the way it has always been. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Attorney

Franchise Foundations APC

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Answered on 11/25/10, 6:51 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

There are, however, some limitations on tax deductibility as business expenses of health benefits made available only to owners. I am a bit rusty on the details, and I think it is just loss of a tax benefit to the company, but a company doesn't have the right to give unlimited perks to owners and still get to deduct all the costs as business expenses.

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Answered on 11/27/10, 10:21 pm


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