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cafeteria plans youve likely heard of them because your organization has one whether you knew it or not even though cafeteria plans are common erisa compliance can be an oversight for many employers but the consequences of non-compliance can be costly so in this episode of hr party of one were going to cover what you need to know about cafeteria plans which are also known as section 125 plans by the end youll have a better understanding of how your organization can stay compliant well discuss what is a cafeteria plan what employers need to know about cafeteria plan compliance and how employers can keep their cafeteria plan compliant lets dive in what is a cafeteria plan a cafeteria plan gives employees the option to set aside part of their compensation as pre-tax contributions towards health insurance and other benefits cafeteria plans are often called section 125 plans a reference to the part of the internal revenue code that outlines how such plans may operate section 125 cafete