5 min read

ICHRA Non-Discrimination Testing: The Fair Play Guide

ICHRA Non-Discrimination Testing: The Fair Play Guide
Written by
Team Orca
Published on
Est read time
5 min read

Everyone, regardless of their job title, salary, or tenure, should have equal access to benefits. Non-Discrimination Testing ensures no favorites are played. This isn't just a matter of principle, it's the law.

What are the legal elements of non-discrimination in ICHRA?

  • Equal Access: All employees within the same class or group must have equal access to benefits without bias based on race, color, religion, sex, national origin, age, disability, or genetic information.
  • Consistency: Benefit plans, including health and retirement plans, must not favor highly compensated or key employees over others.
  • Coverage: The structure of the benefits, like health insurance plans, should not be designed in a way that discriminates against certain groups or conditions.
  • Affordability: Certain laws, such as the Affordable Care Act (ACA), mandate that health benefits must be affordable to all employees.
  • Protection against Retaliation: Employees must be protected from retaliation if they raise concerns or report discriminatory practices related to benefits.
  • Transparency: Employees have the right to be informed about their benefits and any changes to them, ensuring that they're not left in the dark about aspects that could affect them.
  • Special Provisions: Laws like the Pregnancy Discrimination Act and the Americans with Disabilities Act ensure that certain groups, such as pregnant women or those with disabilities, receive equal benefits and accommodations.
  • Documentation & Record Keeping: Employers must keep comprehensive records of their benefit plans and how they're administered. This ensures transparency and provides evidence of non-discriminatory practices.

What is ICHRA Non-Discrimination Testing?

Non-Discrimination Testing ensures no favorites are played. It's the rule that ensures bosses and entry-level workers alike get a fair deal from the ICHRA pie.

Breaking Down the Test 📝

ICHRAs allow different "classes" of employees to get varied allowances. For instance, full-timers might get a different amount than part-timers. But within those classes, it's all about equality.

In other words, you must stick to the 11 ICHRA classes.

When do you conduct ICHRA Non-Discrimination Testing?

Venteur works with employer during the on-boarding phase to make sure their ICHRA plan meets Non-Discrimination and ACA compliance requirements. We work with you to monitor your plan throughout the year to maintain compliance.

Got questions or thoughts? Get in touch with us to request a complimentary compliance review.

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