Is it legal if you have a contract of employment that states you will pay 100% of your benefits at your employer’s cost but are now told it is negated due to rising health costs?

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Is it legal if you have a contract of employment that states you will pay 100% of your benefits at your employer’s cost but are now told it is negated due to rising health costs?

Can they do this? I now have to pay 50%.

Asked on December 29, 2014 under Employment Labor Law, New Jersey

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

A contract would not be negated by rising health costs unless the contract itself specifically said it could be altered or terminated under those circumstances; that is, if somene enters into a contract, they are held to its terms even if those terms become economically disadvantageous or even a hardship to them.

The key thing, though, is that a contract is enforced according to its terms. You need to reference the terms of the contract itself to answer your question. If you have trouble understanding it, bring the contract to an attorney to review with you.


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