What does cafeteria plan mean?

cafeteria plan meaning in Law Dictionary

cafeteria program is a type of worker advantage plan offered in the usa pursuant to Section 125 associated with the Internal sales Code. Its name arises from the initial these types of programs that permitted employees to choose between different sorts of advantages, similar to a cafeteria.

cafeteria plan meaning in Business Dictionary

versatile employee advantage plan for which every worker gets a specific range credits. They can 'spend' these credits on a single or even more benefit-options selected from a 'menu' of advantages, such life dental care, insurance, medical program, or take cash in lieu.