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Health insurance paid so no yearly raise Iowa

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  • Health insurance paid so no yearly raise Iowa

    I became asst manager a few yrs ago & with that promotion I recieved medical benefits & was promised a raise once a year. This year when I inquired about my raise I was told that since the company pays my health ins premium thats my raise or I could have them cancel my insurance & get my raise instead! Is that legal for them to do since medical insurance is
    one of the benefits for my position?

  • #2
    They can change their mind about benefits & a raise also. A raise is never
    required unless you have a binding employment contract or CBA requiring
    them or if the minimum wage increases & an employee would be making below
    min. wage.

    I assume this was just a verbal promise of a raise every year.
    Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

    Live in peace with animals. Animals bring love to our hearts and warmth to our souls.


    • #3
      My experience as a small business owner (a law firm with fewer than 10 employees) is that the cost of the medical insurance I provide to my employees at no additional cost to them is going up about 17% or more each year. So trying to give them a raise on top of that increased cost is just not very realistic. When we have a really good revenue month I try to hand out bonuses, but that is about all I can afford to do.
      Bob Bollinger, Attorney
      Board Certified Specialist in NC Workers' Compensation Law
      Charlotte, NC