Sodexo Extends Benefits Eligibility to Thousands of Additional Employees
July 07, 2014
Policy change to credit temporary unit closings ensures company remains competitive while rewarding employees and meeting the Affordable Care Act’s employer mandate.
GAITHERSBURG, Md. - July 7, 2014 – Sodexo, a leading provider of sustainable, integrated facilities management and food service operations in North America, will extend the reach of its benefits package to cover an increased number of full-time employees effective January 1, 2015. Sodexo employees who work an average of 30 hours per week over the previous 52 weeks will be considered full-time and therefore eligible for company subsidized benefits. An estimated 5,200 additional Sodexo employees are expected to become eligible.
When determining eligibility for benefits, Sodexo employees on any protected leave of absence such as the Family and Medical Leave Act (FMLA), FMLA-Like, FMLA-Maternity or Military Leave, are credited in the Sodexo system with 30 hours per week while on leave. For 2015, Sodexo is adding temporary unit closings to its list of protected leaves of absences, which will largely benefit its seasonal employees working in schools, universities and college campuses which are not open year round.
“In today’s health care environment, all companies are navigating in uncharted territory and continually adjusting their policies to adapt to the evolving health care landscape,” said Gerri Mason Hall, Chief Human Resources Officer, Sodexo. “With approximately 68 percent of U.S. employers having variable-hour workers, according to benefits consulting firm Mercer, LLC, it is a challenge that businesses large and small will address as they work to comply with the employer mandate.”
For the 2014 benefits year, Sodexo had changed how it defined full-time hourly, non-exempt employees who were eligible for health and welfare benefits to match the Affordable Care Act definition of a full-time employee as someone who works an average of 30 hours or more per week over a 52-week period. In previous years, the definition of a full-time employee required a person to work 30 hours per week for 6 or more weeks each quarter.
Given analysis that considered the availability of the health care exchanges, perspectives offered by clients and other stakeholders and principles including remaining competitive, caring for employees, managing costs and complying with the law, Sodexo determined that beginning in 2015 it could remain true to these principles even while providing more employees with wider access to its benefits by refining its policy to credit temporary unit closings.
Sodexo in North America
Sodexo, Inc. (www.sodexoUSA.com), leading Quality of Life services company in the U.S., Canada, and Mexico, delivers On-site Services in Corporate, Education, Health Care, Government, and Remote Site segments, as well as Benefits and Rewards Services and Personal and Home Services. Sodexo, Inc., headquartered in Gaithersburg, Md., funds all administrative costs for the Sodexo Foundation (www.SodexoFoundation.org), an independent charitable organization that, since its founding in 1999, has made more than $22 million in grants to end childhood hunger in America. Visit the corporate blog at blogs.sodexousa.com. Visit Sodexo on Facebook and follow on Twitter @SodexoUSA.
Sodexo North America
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