Tag: employment termination

EEOC Settlements a Reminder ADA May Require Extended Leave as Accommodation

Two employers entered into settlement agreements with the U.S. Equal Employment Opportunity Commission in February after the federal agency alleged the companies had violated the Americans with Disabilities Act. Both employers, the commission said, fired employees who were entitled to leave as accommodations for their disabilities. The first involved Doneen King, an employee with the […]

Court OKs $1.3M Settlement in COBRA/ARRA Class Action

Although it admitted no wrongdoing, an employer and plan administrator agreed to pay a $1.3 million settlement to a group of former employees who alleged they never received COBRA election or premium subsidy information after their involuntary termination of employment in 2010. In addition to COBRA and premium subsidy notice claims, they also sued the […]

Scooter Store Failed to Accommodate Employee With Disability, Must Pay Him $99K

The Scooter Store will pay $99,000 to an employee whose disability it failed to accommodate, according to the U.S. Equal Employment Opportunity Commission. The company, a national retailer, refused to give an employee with psoriatic arthritis time off work and fired him. EEOC sued on his behalf alleging that the employer failed to accommodate his […]

Short-lived Sale Option Did Not Negate COBRA Small-employer Exception

A former employee argued that her former employer, which employed fewer than 20 employees (and thus was exempt from COBRA) for eight months of the year, formed an affiliated service group with another employer and thus employed more than 20 employees for four months of that year. Thus, she contended the employer became subject to […]

Extended FMLA Leave May Be Protected under ADA, Court Says

Employers need to keep in mind that if an employee uses all of her allotted leave time under the Family and Medical Leave Act, it does not necessarily follow that she has lost her entitlement toward job protection. In fact, once an employee has exhausted FMLA or employer-provided leave, the employer must assess whether the […]

Loss of COBRA Eligibility Due to Union Lockout Deemed Labor Rights Violation

Typically, interference with an employee’s COBRA coverage rights raises legal claims under ERISA; however, employers should take heed that in some instances other federal laws are invoked. Recently, an employer was found to have violated federal labor law when it engaged in an unlawful lockout of union employees that included the cancellation of their health […]

Common Control Means COBRA’s Small Employer Exception Does Not Apply

Here’s a reminder that for COBRA compliance purposes, small employers must count their employee population differently if they are under common control. Recently, an employer was sued for providing just three, rather than 18, months of COBRA coverage. Because it had a workforce of fewer than 20 employees, the employer tried to fend off those […]

ADA-protected disability does not excuse sexual harassment

If an employee’s disability causes him to sexually harass co-workers, the Americans with Disabilities Act does not require the employer to turn a blind eye, the 2nd U.S. Circuit Court of Appeals ruled in McElwee v. County of Orange, No. 11-4366-cv (2nd Cir. Nov. 15, 2012). James McElwee, an individual with Pervasive Developmental Disorder, worked […]

COBRA Penalties and Legal Costs Due to Notice Failure, Evasive Answers Rise to $126K

An employer/plan administrator continues to get an expensive lesson on the risks of having both inadequate COBRA notice procedures and poor explanations of how those procedures work. An “inefficient, unwieldy” notice process — coupled with evasive and contradictory answers from employees on why a qualified beneficiary did not receive a COBRA election notice — led […]

Suspicion of FMLA Abuse Does Not Justify Firing, Says Court

Just when you may have thought the road was clear to an “honest belief” defense that linked employee termination to suspected leave abuse under the Family and Medical Leave Act, a ruling has put the brakes on that notion. A California appellate court has issued a decision against a large auto retailer that should cause […]