:: Claim of Interference With Benefits Rights Requires Bona Fide Employment Status
Although the Second Circuit has not squarely addressed this issue, courts in this District have held that § 510 only proscribes interference with the employment relationship . . . Thus, “plaintiffs must allege that defendant took some type of adverse employment action to interfere with the attainment of their benefit rights under the plan.â€
Tirone v. New York Stock Exchange, Inc., 2006 WL 2773862 (S.D.N.Y.) (September 28, 2006)
In Tirone, the plaintiff commenced an ERISA class action against the NYSE on behalf of himself and at least 14 other former NYSE employees whose health and life insurance benefits were discontinued by a leave of absence policy. In early 1990, the plaintiff took a medical leave of absence after he began experiencing seizures. His employer, the NYSE, classified him as “totally disabled.â€
Under the NYSE Welfare Benefit Plan, the Plaintiff was approved for long-term disability benefits payable by Unum Insurance Company on the basis of a total disability. The Plaintiff also participated in an HMO and enjoyed group benefits under separate policies – the curtailment of these benefits gave rise to the case. Read more
