Earlier this week, the Southern District of New York denied a motion to dismiss a case against Dave & Buster’s, Inc. – a development that is sure to concern many employers around the country. This case, Marin v. Dave & Busters, raises the question of whether an employer, by reducing its employees’ full-time hours to avoid providing health insurance or paying a penalty under the Affordable Care Act, is discriminating in violation of ERISA Section 510. In a nutshell, ERISA Section 510 makes it unlawful for an employer to discriminate against a participant for exercising a right to which he or she is entitled under an employee benefit plan or for interfering with the attainment of a right to which he or she may become entitled under the plan.Here, employees had been working full-time hours and had been eligible for medical plan coverage before their hours were reduced below 30 hours per week. Further, employees allege that the employer stated that they were reducing the number of full-time employees due to the cost of complying with the Affordable Care Act. The court states that the crucial element is the employer’s intent, and that the “complaint states a plausible and legally sufficient claim for relief, including… lost wages and salary incidental to the reinstatement of benefits.” For a copy of the case, click here.
While we are pleased to have you contact us by telephone, surface mail, electronic mail, or by facsimile transmission, contacting Kilpatrick Townsend & Stockton LLP or any of its attorneys does not create an attorney-client relationship. The formation of an attorney-client relationship requires consideration of multiple factors, including possible conflicts of interest. An attorney-client relationship is formed only when both you and the Firm have agreed to proceed with a defined engagement.
DO NOT CONVEY TO US ANY INFORMATION YOU REGARD AS CONFIDENTIAL UNTIL A FORMAL CLIENT-ATTORNEY RELATIONSHIP HAS BEEN ESTABLISHED.
If you do convey information, you recognize that we may review and disclose the information, and you agree that even if you regard the information as highly confidential and even if it is transmitted in a good faith effort to retain us, such a review does not preclude us from representing another client directly adverse to you, even in a matter where that information could be used against you.