Employment Offer Letter Promised Insurance: Are We Legally Bound to Honor It?

We are a non-profit, and several years ago, a former board promoted a current employee to a manager position. In the notice of promotion letter to the employee, it states the new salary level and a statement that we would provide insurance coverage for the employee and dependents. We have decided to discontinue group coverage (as we only had two employees covered), and the manager is maintaining that because the letter received four years ago includes insurance coverage, we are required to maintain the same coverage. Are we? State law in Oregon states that small businesses are not required to provide insurance.

Since you are from the state of Oregon, USA, the labor consultants or HR consultants from that area will be able to give you the right advice. I am moving this thread to the USA category.

Insurance Coverage as an Employment Perk

As far as insurance coverage is concerned, it is one of the perks of employment. Conditions and perks of employment can be changed too. There are cases wherein facilities that were provided earlier were withdrawn later. However, it is better to consult with a local consultant as stated earlier.

Thanks,

Dinesh Divekar