Hour Banking provides contractors with a mechanism to avoid overpaying premiums while affording employees the opportunity to extend medical coverage during work stoppages.

The Contractors Plan provides and tracks benefits in hourly increments. The monthly costs of benefits such as medical, dental, vision and life insurance are bundled and converted to an hourly equivalent cost. Employees can bank hours during peak work periods and draw from those excess hours to maintain coverage in the interim between contracts or if faced with a reduction of hours.

With our system, accounting for hours worked and their corresponding fringes is seamless and transparent Contractors pay only for actual hours worked, which means they don’t spend countless hours attempting to get premium refunded from insurance carriers. If a contractor experiences rapid increases or decreases in employee numbers due to the nature of a contract or down time between contracts hour banking is an elegant solution which allows employees to continue benefits, as well as a powerful and cost effective retention tool for contractors.

• Employees accumulate hours of work credit for excess hours worked.
• The possibility of ineligibility under traditional programs is eliminated.
• Employees are protected during layoffs.
• Employees may bank up to 7 months of health benefits.
• Employers pay for actual hours worked, guarding against overpayment of premium.

The Contractors Plan powered by Fringe Benefit Group can provide coverage in both monthly and hourly increments.