Tag: Employee Benefits

‘Out of Control’ Employee Screaming Profanities Loses out on COBRA Due to Gross Misconduct

Although the COBRA statute never defined gross misconduct — leaving it up to the courts — no dictionary is needed when an “out-of-control” employee screams profanities at and makes seemingly threatening hand gestures toward another employee, saying she would “get” hers. This behavior was “so manifestly so outrageous and extreme as to constitute gross misconduct,” […]

Feds Team Up With States to Increase Heat on Employee Misclassification

Using independent contractors is a way to avoid paying unemployment, Social Security and Medicare taxes, overtime and  benefits. However, if an employer is found liable of misclassifying an employee in tandem with committing wage and hour violations, DOL may fine the employer, and the employer may be assessed back wages and taxes. The U.S. Department of Labor (DOL) […]

Help the Government Figure If Your Health Coverage is ‘Unaffordable’

Jan. 1, 2014, sounds far away, but some plan sponsors may be hoping that day never comes. That’s the day the “shared responsibility provisions” of the Patient Protection and Affordable Care Act (PPACA) kick in; and it’s the time plan sponsors become subject to health reform’s “unaffordable coverage trigger.” Under the law, if an employee’s […]

Workers’ Comp Payout After Telecommuting Worker Trips Over Dog

The warning “Beware of the Dog” is making employers fearful in a new way. One downside of offering telecommuting privileges is injuries that occur while an employee is working from home. If an employee is injured at home while he or she is on a work-related task, he or she may be entitled to workers’ comp benefits. This raises […]

Despite Phony Divorces, Pension Plan Must Pay Spousal Benefits

Retirement plan administrators do not have the authority to conclude that a domestic relations order (DRO) is not qualified because it is based on a “sham” divorce, the 5th U.S. Circuit Court of Appeals decided July 18, 2011. The 5th Circuit stated that a key ERISA section “does not authorize an administrator to consider or […]

Self-Funded Health Plan Can’t Shake Down Providers for Benefits Paid for Non-Enrollee

The sponsor of a self-funded health plan cannot escape its responsibility to ensure that only fully eligible people are enrolled. Illustrating this maxim is a self-funded plan’s sad quest to recover gigantic sums from health providers for services it paid on behalf of a non-beneficiary. The plan paid more than $1 million in claims for a […]

Successor Company May Be Liable for Benefits Claim on Predecessor Plan

In this time of corporate restructuring, successor liability in relation to ERISA benefit plans is something to plan carefully in all of its dimensions before complicated, expensive claims take you by surprise. A case involving a top-hat deferred compensation plan — in which a federal court denied a successor employer’s motion to dismiss it from […]

Independent School Maintains Employee Benefits Despite Recession

Like so many other employers, The Bolles School grappled with how to cut expenses when the recession hit. The organization looked for ways to operate more efficiently and, in fact, cut many expenses. But it made a conscious decision not to reduce or cut certain coveted employee benefits, including 100% employer-paid medical insurance premiums, 100% […]

The Quiet Crisis: Disability Insurance ‘Coverage Gaps’ for Executives

by David Kates, Lenox Advisors Employee benefits professionals should be aware that while their company’s top executives are well protected via their life insurance coverage and retirement plans, these same executives could be woefully exposed in their disability insurance coverage. Often, a company’s top earners have coverage that isn’t up to the task of protecting […]