Employers who sponsor employee benefits programs understand the importance of maintaining accurate records of benefit eligibility, elections, claims, payments, and other data. Besides complying with ERISA’s record keeping requirements, keeping accurate benefit records is simply a prudent business practice. In recognition of this, employers retain outside service providers such as consultants, third party administrators, insurers, …
The Sixth Circuit Rules on What Constitutes “Similarly Situated”
On November 13, 2019, the United States Court of Appeals for the Sixth Circuit issued a recommended for full-text publication opinion that analyzed and decided the concept of what it means to be “similarly situated” in the context of proving a prima facie case of discrimination. In Johnson v. Ohio Department of Public Safety, the …
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Sixth Circuit Court of Appeals Rules that Retiree Health Benefits May be Terminated Based on Ordinary Contract Principles
In its latest case addressing retiree health benefits, the Sixth Circuit Court of Appeals has held that a collective bargaining agreement’s general durational clause controls when retiree healthcare benefits end. Zino v. Whirlpool Corp., 2019 BL 50961, 6th Cir. (2019). This is a new data point indicating that the Sixth Circuit has moved away from …
Sixth Circuit Affirms Attorneys’ Fees for “Enforcement” of Non-Compete Agreement
In a dispute involving a non-compete agreement with three former employees, the U.S. Court of Appeals for the Sixth Circuit recently upheld a district court decision to award attorneys’ fees to the employer even though there was never any final determination of liability with respect to the non-compete agreement. In Kelly Services, Inc. v. De …
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The Sixth Circuit Offers Employers Guidance on the Americans with Disabilities Act’s “Interactive Process”
On November 30, 2018, the United States Court of Appeals for the Sixth Circuit, in a published decision, offered guidance to employers regarding the Americans with Disabilities Act’s (“ADA”) “interactive process” and what conduct may render the employer liable under the ADA. In Brumley v. United Parcel Service, Inc., 909 F.3d 834 (6th Cir. 2018), …
Buyers Beware: Sixth Circuit Holds That Asset Purchaser Can Be Sued for Predecessor’s Unpaid Pension Liability
In a typical asset sale transaction, the purchaser takes great care to disclaim any responsibility for the seller’s business debts. When the seller is a sponsor of a defined benefit pension plan, this typically includes a disclaimer for any pension liability (e.g., unpaid plan contributions, PBGC premiums, and liability upon plan termination). The purchaser will …
The Sixth Circuit Reminds Plan Sponsors of the Importance of Firestone “Magic Words” for ERISA Plan Interpretation
A recent ruling by the Sixth Circuit Court of Appeals acts as an important reminder to ERISA plan sponsors that reserving the written right to interpret plan documents may be critical in interpreting otherwise ambiguous language. The Firestone Language In the 1989 case Firestone Tire & Rubber Co. v. Bruch, 489 U.S. 101 (1989), the …
To Institute Arbitration, Employers Must Make Employee Acceptance a Condition of Continued Employment
On December 15, 2017, the United States District Court for the Eastern District of Michigan issued an opinion reinforcing the principle that an employer may only institute arbitration as a dispute resolution mechanism for existing employees if the employer expressly informs the employee that continued employment is contingent upon the employee’s acceptance of the arbitration …