Legal Question in Employment Law in California

I work in California, and my company offers a small reimbursement for those who opt out of receiving health benefits for the year. I received that benefit all last year. During our open enrollment presentation this past November, I was told that if you would not like to change anything from your current plan, then you do not need to do anything. Therefore, I did not act upon anything, figuring I would still receive the benefit this year. As the new year came, I noticed that I was not receiving the benefit anymore. I am now being told that opting out was one of the benefits that you would have to re-new every year. Is there any way that this is against California labor law? Am I entitled to receiving some type of benefit?


Asked on 1/18/13, 1:57 pm

1 Answer from Attorneys

Charles Perry Law Offices of Charles R. Perry

There is no state law requiring an employer to provide health insurance, or requiring the employer to provide a reimbursement for those who opt out of a health insurance plan. I also assume that no local ordinance regarding health insurance, such as the one in San Francisco, applies to you.

There is some possibility that you have a claim against your employer for the loss of a benefit, based upon the fact that you were not properly notified of a change in your compensation. If you are an at-will employee, however, your employer has the right to change your compensation at any time for days and hours not yet worked. California law thus allows your employer to eliminate the reimbursement for any period of time in the future. This rule may limit the amount of your claim.

If you are interested in pursuing this, you can speak to the California labor commission or to a plaintiff-side employment lawyer. The labor commissioner's web page is at http://www.dir.ca.gov/dlse/

Best of luck to you.

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Answered on 1/19/13, 1:19 am


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