Employers are required under nondiscrimination laws to offer the same benefits package to all employees to avoid:

Question

Quizplus · Accepted Answer

Adverse selection occurs when there is an imbalance in information between two parties, such as employers and employees, leading to a situation where one party may take advantage of the other by selecting benefits that are more favorable to them, based on their private information. Offering the same benefits package to all employees helps to mitigate this risk by ensuring that all employees have access to the same options, reducing the likelihood of adverse selection.

Employers Are Required Under Nondiscrimination Laws to Offer the Same