MANDATED BENEFITS
Mandated benefits are those benefits which employers in the United States must provide to employees by law. Social Security and unemployment insurance are funded through a tax paid by the employer based on the employee’s compensation. Workers’ compensation laws exist in all states. In addition, under the Family and Medical Leave Act (FMLA), employers must offer unpaid leaves to employees with certain medical or family difficulties. Other mandated benefits are available through Medicare, which provides health care for that age 65 and over. It is funded in part by an employer tax through Social Security. The Consolidated Omnibus Budget Reconciliation Act (COBRA) and the Health Insurance Portability and Accountability Act (HIPAA) mandate that an employer extend health-care coverage to employees after they leave the organization, and that most employees are able to obtain coverage if they were previously covered in a health plan.
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