By Norris A. Adams II
and Caitlin H. Walton
In the final installment of our three-part series on ERISA’s new disability claim-processing procedures, we will wrap up our discussion by providing a run-down of the remaining changes to the regulations. Click here to read part one and here to read part two.
By Norris A. Adams II
and Caitlin H. Walton
In the second installment of our three-part series on ERISA’s new disability claim-processing procedures, we will focus on what we believe are the five most significant changes to the regulations. Read part one here.
By Norris A. Adams II
and Caitlin H. Walton
This is the first installment of our three-part series on ERISA’s new disability claim-processing procedures. Here we will focus on the background leading up to the implementation of the new regulations.
Not all days are created equal. Some just seem to soak up more glory than others. This year, for example, Dec. 10 is the First Sunday of Advent, the start of Hanukkah, International Day for the Abolition of Slavery, and Dewey Decimal System Day (if you’re under 30, we’ll wait while you look that last one up). Personally, we’re looking forward to National Talk Like a Pirate Day on Sept. 19.
But no day improved its stock more this year than April 1, making up for its past irrelevance with Easter, the second day of Passover, and, of course, April Fool’s Day. If that weren’t enough, it’s rent day too.
Labor & Employment Law
In the Eastern District of North Carolina, U.S. District Judge Terrance W. Boyle recently granted conditional class certification to call center employees in their FLSA dispute against BB&T. In that case, Sheffield v. BB&T et al. (case number 7:16-cv-00332) plaintiff and the conditionally certified class allege that BB&T failed to pay overtime.
You and I make a deal: You pay me monthly installments and when an event occurs, I will pay you a set amount of money (we’ll call this deal “life insurance”). After several years, I notify you that you have failed to return a required document, allowing me to void the life insurance. The event occurs and I refuse to pay. In most circumstances you could potentially make claims against me for negligent misrepresentation or fraud; constructive fraud; and negligent or intentional infliction of emotional distress. But if I were your employer, all of these claims would be preempted by the Employee Retirement Income Security Act (ERISA).
In Prince v. Sears Holdings Corp., No. 16-1075 (4th Cir. Jan. 27, 2017), the 4th Circuit reiterated that regardless of what a plaintiff calls a claim or how the plaintiff frames the claim, if ERISA applies, then ERISA pre-empts that claim. In 2011, Prince purchased a life insurance policy on his wife through his employer, Sears. Sears sent a confirmation letter and began withholding premiums from Prince’s pay. Later that year, Mrs. Prince was diagnosed with cancer. In 2012, Prince checked his benefits summary with Sears, which confirmed the life insurance. In 2013, Sears notified Prince that he had not returned a required document in 2011—Prince denied receiving the document but had no proof it had not been sent—and, therefore, Prince’s insurance would be canceled. Mrs. Prince died in 2014 and Sears denied Prince’s claim on the insurance policy.
