Adam Greetis Published in SHRM
“Increased Use of Alternative Workers Raises Critical Benefits Issues”

Adam Greetis' article, "Increased Use of Alternative Workers Raises Critical Benefits Issues,” was published in the February 23, 2010 issue of SHRM online. In his article, Adam discusses an announcement from the U.S. Department of Labor on January 8, 2010 that in December 2009, U.S. employers unexpectedly cut another 85,000 workers, bringing the total U.S. jobs lost in 2009 to 4.2 million and to 7.2 million since the recession began in December 2007. According to Adam, this announcement crushed widely held hopes that the labor market also might be improving. However, the report also noted that temporary help services added 46,500 jobs in December—the fifth straight month of growth for this industry. Adam notes that this information suggests that employers are slowly increasing headcount—at least through temporary and perhaps other forms of contingent workers (e.g., leased employees, part-timers, independent contractors).

Adam explains, "As employers expand the number and types of individuals performing services for them, questions regarding entitlement to benefits inevitably arise. For those employers who use temporary, part-time, leased, seasonal, contract and other forms of contingent workers, now is an ideal time to review benefits plan documents to determine whether such documents adequately express the employer’s intent regarding which types of workers are entitled to which types of benefits." Adam suggests that performing a quick review of plan terms and modifying and clarifying the applicable documents can help avoid contentious and expensive claims and disputes. His article describes a few important points an employer should consider when reviewing and amending benefits eligibility and exclusion provisions.