Can a city make it mandatory for employees to contribute to a retirement plan?
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Can a city make it mandatory for employees to contribute to a retirement plan?
Asked on November 10, 2010 under Employment Labor Law, Oklahoma
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Yes, a city, or indeed, any employer, may make contributions to a retirement plan mandatory. That's because employers have tremendous discretion in determining the terms and conditions of employment, as well as how employees are compensated. Therefore, looking at either way, the employer could make it a term or condition of employment that employees contribute to a retirement plan; or they could make compensation be a certain amount less the required contribution to a retirement plan. The employer cannot discriminate in how it treats people on the basis of protected categories, such as race, religion, sex, age over 40, or disability, etc.; also, if there are any contrats, whether personal or union governing the employee's employment, the employer must obey or honor it. Other than that, however, they can require it.
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