Q. "An employee is asking for a special pay arrangement to help cover health insurance. How can we be both compassionate and compliant?"
Answer:
Offering a special, one-off arrangement can create significant risks related to fairness and legal exposure. It's smart to be cautious.
The primary issue is that a unique, undocumented pay arrangement—no matter how well-intentioned—can easily be seen as discriminatory if other employees learn of it. It erodes the transparency and consistency vital to a healthy, trustworthy ministry culture.
Instead of a private arrangement, consider a principled approach that serves all:
Evaluate a Broader Policy: Instead of a one-time deal, consider developing a formal, written policy for the wider group. For example, establish a taxable stipend available to a class of employees not covered by the ministry's health plan.
Explore Compliant Options: Research qualified Health Reimbursement Arrangements (HRAs) or other formal, tax-advantaged ways to help employees with health costs. These options are designed to be administered fairly and compliantly.
Communicate with Integrity: When you communicate your decision, whether it's to implement a new policy or explain why a special arrangement isn’t possible, lead with grace and honesty. Explain that your commitment to caring for all employees requires you to maintain a consistent, transparent pay structure.
By addressing the issue through a fair and consistent policy, you protect the entire ministry while honoring your commitment to care well for your employees.