Gavel on book If established under objective business criteria, bona-fide employment-based classifications that do not discriminate in favor of “the prohibited group” may be a reasonable classification of employees.

Under federal law, employer provided benefits eligible for tax exclusions are subject to numerous nondiscrimination provisions. These provisions all are based on one important condition: ensuring executives, key employees or other highly paid individuals (“the prohibited group”) are not treated more favorably than other employees.



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