12 Employee Benefits Not Required By Law in 2023

A variety of employee benefits is not required by law. You also will be surprised to know some fundamental employee benefits not mandated by law.

Employers offer different types of employee benefits to improve employees’ quality of life. But, not every employee’s benefits are required by law; even most of the employee benefits are non-mandated.

We come up with some of the most common benefits that are not mandated by federal or state law. So, let’s dive right in:

Employee Benefits Not Required By Law

employee benefits not required by law
List of employee benefits that are not required by law

Non-mandatory employee benefits are tuition reimbursement, wellness programs, remote work flexibility, paid time off (PTO), paid vacation time, employee stock option, pet insurance, and more.

List of employee benefits not required by law:

  1. Tuition Reimbursement
  2. Paid Time Off (PTO)
  3. Wellness Programs
  4. Workplace Flexibility
  5. Paid Vacation Time
  6. Pet Insurance
  7. Free Food at Work
  8. Employee Stock Option (ESO)
  9. Flexible Spending Account (FSA)
  10. Paid Training And Development
  11. Remote Work Flexibility
  12. Commuter Benefits

1. Tuition Reimbursement

Tuition reimbursement, also known as tuition assistance, is an employee benefit that pays a set amount or percentage of an employee’s education expenses per year. 

Most large companies and organizations give tuition reimbursement as employee benefits. Now tuition assistance is one of the important employee benefits.

Normally, tuition assistance covers an employee’s undergraduate education expenses.

2. Paid Time Off (PTO)

paid time off (PTO)

Paid time off (aka PTO) is an employee leave policy that allows employees to set days off schedule from work by themself and still receive compensation from the company.

PTO is one of the most common employee benefits that is not mandated by law. Many employers consider PTO to attract more talented employees.

Employee’s absences such as illness, personal issues, family emergency leave, vacation and more are typically included as paid time off.

3. Wellness Programs

To improve employees’ overall general health, employers offer wellness programs. Companies feel the importance of wellness programs because of the connection between health and work.

Wellness programs as employee benefits are not widely common, but this employee benefit is gradually added to employers’ employee benefits packages. This benefit is also not offered as part-time employee benefits.

Some of the common types of wellness programs are nutrition education, gym membership, smoking cessation programs, weight-loss competitions, and more.

4. Workplace Flexibility

workplace flexibility

Morden companies are taking workplace flexibility benefits in the high dimension. Especially, most multinational technology companies are giving their employees workplace flexibility benefits.

Workplace flexibility benefits allow employees to work from anywhere they want. That means if you are able to work from any place as you prefer.

5. Paid Vacation Time

There are similarities between paid vacation time and paid time off (PTO). Paid vacation time benefit counts only employee’s vacation time; on the other hand, PTO counts any type of leave from work.

Paid vacation time gives employees days off opportunities for vacation while still receiving employees’ wages. Paid vacation time benefit designed by the employer’s management.

Federal or state law does not require paid vacation time as an employee benefit, and this benefit is not included in four major employee benefits lists.

6. Pet Insurance 

pet insurance

Now, pet insurance is one of the trendy employee benefits that employers provide. Pet insurance benefit is an insurance policy that covers veterinary treatment costs when employees’ pets get ill and injured.

Pet insurance is a non-mandatory employee benefit. The providing rate of pet insurance as an employee benefit goes up gradually.

7. Free Food at Work

When an employer provides food at work for employees with no financial cost, that is considered free food at work employee benefit.

The world’s biggest organizations like Robinhood, Yahoo, SendGrid are providing free food at work as employee benefits. 

No federal or state law required a company to provide free food at work to employees.

8. Employee Stock Option (ESO)

Employee stock option, also known as ESO, is a financial equity compensation provided by organizations to employees. 

Employees are able to purchase the company’s shares at specific discounts or earlier than other shareholders to get the maximum return.

GoDaddy, Lowe’s, Aflac, and more companies offer employees an Employee Stock Option or ESO.

9. Flexible Spending Account (FSA)

flexible spending account (FSA)

Whatever you call it, Flexible Spending Account or Flexible Spending Arrangement both have the same meaning, and it is shortly called FSA.

A flexible Spending Account (FSA) is a tax-advantaged financial account that is used to pay for certain health care expenses. The company established a Flexible Spending Account (FSA) for employees.

Although healthcare benefits are required by law, a Flexible Spending Account is not required by law.

10. Paid Training And Development

Paid training and development is another employee benefit that major companies offer their employees.

Paid training and development programs pay employees to attend any training and development programs.

Companies like Amazon, Bonobos, AT&T, Paychex, and more provide their employees paid training and development benefits.

11. Remote Work Flexibility

Remote work flexibility employee benefits allow employees to work from home or any place they want.

In the modern work environment, remote work is a very common thing. Remote work flexibility as an employee benefit has advantages and disadvantages both.

No more than 18% of people work remotely full-time all over the world. In the United States, remote work flexibility as an employee benefit is higher than in other parts of the world.

12. Commuter Benefits

commuter benefits

When employers let employees set aside pre-tax money to pay for workplace transportation expenses, that is the commuter benefit.

Commuter benefits are not required by law. Employees can reduce taxable income for commuter benefits.

Final Thoughts

For employees and employers, it’s necessary to know what employee benefits are not required by law.

Limited employee benefits are mandatory employee benefits, but most employee benefits are non-mandatory.

Every employer designs their benefits packages for their full-time and part-time employees.

Required employee benefits depend on states but non-mandated employee benefits brought by company’s management.

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