Benefits Washing

Abstract

Employee benefits often comprise between 24% and 26% of an employee’s total compensation. As such, it is important that people know what benefits companies actually offer. Unfortunately, instead of being transparent, numerous companies engage in what this author calls “benefits washing.” Benefits washing occurs when companies provide vague or misleading information about their employee benefits in an effort to make their benefits appear better than they are. The practice occurs in three primary ways: detail omission, attention deflection, and deceptive manipulation. 

This Essay elaborates on what constitutes benefits washing. It presents numerous examples of America’s largest employers engaging in benefits washing, focusing on 401(k) plan benefits (due to the numerous variances allowed in such plans), paid parental leave, abortionrelated travel benefits, “free” training, and remote work. Next, it analyzes why benefits washing occurs. It then discusses the impact and harmful effects of benefits washing. This Essay concludes by describing the limitations of legal claims available to victims of benefits washing.

Keywords: employee benefits, benefits transparency, gender wage gap, remote work, 401(k) plans, abortion-related travel, employment law, attention deflection, detail omission, deceptive manipulation, ESG, CSR, whitewashing, hiring, deceptive practices, greenwashing, woke, paid parental leave, compensation