Does ERISA apply to voluntary benefits?

Sometimes. It depends on how the voluntary benefits are offered and administered.

Voluntary benefits—like supplemental life, accident, or critical illness insurance—may or may not be subject to ERISA, depending on the employer’s involvement.

🧾 When ERISA Does Not Apply:

Voluntary benefits are exempt from ERISA if all of the following are true:

  • The employee pays 100% of the premium

  • The employer’s role is limited to payroll deduction

  • The employer does not endorse the benefit or promote it as part of the company’s benefit program

For example, just allowing an insurance agent to come on-site and offering a payroll slot—without branding or recommendation—can keep the benefit ERISA-exempt.

đź“Ś When ERISA Does Apply:

If the employer:

  • Contributes toward the cost,

  • Negotiates group rates, or

  • Promotes the benefit as part of the company’s offerings,
    Then the benefit is likely subject to ERISA—and requires plan documentation.

🧠 Tip:

If in doubt, treat it like an ERISA plan and include it in your wrap document—especially if you’re helping employees enroll or answering benefit questions.

Employer Responsibilities