Reply
Sat 17 Feb, 2007 11:30 pm
I recently got demoted at my job (from full time benefited, to hourly). It was on good terms, they just thought I wasn't right for the position yet. I had lots of vacation/ sick time, a 401k, and a flex spending account where I agreed to have a certain amount of money taken out of my paycheck and as long as I used it for medical expenses I would get it back. I was using the flex account to pay for braces and now it's going to get cut off which leaves me in a financial bind.
I wanted to know if I was still entitled to my acrued vacation pay,for the rate I was demoted from?
What will become of the money I put in the 401k?
Are they allowed to cut me off from the flexspending even though it is not an hourly benefit? ( I don't remember seeing anyway on the form that I signed that it would end if I got demoted.)
What actions can I take if they don't reinstate my flex account or pay my vacation time?
I live in California by the way.
Your 401K contributions (and any earnings associated with them)are yours to keep. Additional employer match contributions may not be yours, depending on the commpany rules for vesting. (Typically, employer contributions vest, or become yours, after a certain period of employment).
Your vacation time is yours, though you will evidently stop accruing more time. The company has the option to either take the accrued vacation with pay or to pay you out for the balance. If your demotion is interpreted as a termination & rehire, then normally they would pay you for the vacation time. Sick time is not yours, though many people incorrectly assume it is equivalent to vacation.
Your medical savings account (pretax contributions) are yours to use. However, as of the demotion date you will likely cease further contributions to the plan. If your withdrawls to date this year exceed your contributions so far, you may have a payback issue.
You have the right to retain your company medical insurance for at least a year. However you must pay the full premium, including the company share.
Thankyou so much!
I was worried about the 401k, they were matching my investment and it was earning interest as well. I will have to check with them on their policy.
Great, I thought I was entitled my vacation time if i was fired, but wasn't sure how it worked since I was only demoted. Thankyou for clearing that up.
that's disappointing about the flexspending account though. I thought that maybe I could try and pay as much money as I could into it before my coverage expired at the end of the month.
Stumble It!
Tweet This
Bookmark on Delicious
Share on Facebook
Share on MySpace