Benefits October 5, 2011

EEOC Files Lawsuit Against Beehive Homes For Harassing Pregnant Managers

October 5, 2011 (PLANSPONSOR.com) – Beehive Homes, which operates assisted living facilities, is being accused by the EEOC of discriminating against pregnant employees. 
 
Reported by

Beehive of Vernal, Inc., operating Beehive Homes throughout the western U.S., has allegedly subjected pregnant employees to harassment, discriminatory treatment, demotion, and discharge, the U.S. Equal Employment Opportunity Commission (EEOC) charged in a lawsuit filed in federal court.

According to the EEOC’s suit, filed in U.S. District Court for the District of Utah, Central Division (EEOC v. Beehive of Vernal, Inc), at least two pregnant managers were subjected to constant harassment by the company’s owner, who continually offered to hire replacements for them even when they were months from delivering their babies. The owner also subjected pregnant employees to closer scrutiny and harsher discipline, including demotion and discharge, as compared to non-pregnant employees, the agency claims in a news release.

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Title VII of the Civil Rights Act of 1964, as amended, protects workers from discrimination based upon sex, including pregnancy. The statute also imposes liability on employers who create an environment so hostile that an employee is constructively discharged. The EEOC filed suit after first attempting to reach a voluntary settlement. The lawsuit seeks lost wages and compensatory and punitive damages for the employees, as well as appropriate injunctive relief to prevent discriminatory practices in the future.

Compliance October 5, 2011

Court Rules COBRA Notification Required When Employment is Terminated

October 5, 2011 (PLANSPONSOR.com) – The U.S. District Court of New Jersey ruled that notification of an employee’s right to continue health care coverage under COBRA begins when the employee is terminated from a position. 


 

Reported by

In the case of Fama v. Design Assistance Corp., the court granted a summary judgment for Sarah Fama, a former employee of Design Assistance Corporation. She was awarded $10 per day in statutory damages for each day she did not receive a COBRA notice. The court also found that Design Assistance Corp. did not act in bad faith or with malicious intent in this mater.

Fama filed a lawsuit against her former employer because she never received notice of her right to continue her health care coverage after she was terminated from her position in September 2008. She spoke up when she did not receive the notice, and was later informed that due to a mistake, her health care coverage had not been canceled until January 2009. Her coverage was then retroactively reinstated to continue at no cost to Fama, until September 2009. At this time she was notified of her right to continue coverage under COBRA.

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In April 2010, Fama filed a lawsuit against Design Assistance Corp., the plan administrator, and the plan, for failure to notify her of her right to continue her coverage. She sought Employee Retirement Income Security Act (ERISA) statutory penalties, reimbursement, and costs.

The case is Fama v. Design Assistance Corp., D.NJ., No. 1:10-cv-02057-NLH –KMW.

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