When determining whether an employee is eligible for benefits, plan exclusions apply. In theory, the more clearly worded an exclusion, the more likely a worker denied benefits is to understand and accept the decision. Unfortunately, that's not always the case.
Not Employees? No Benefits.
An employer's retirement plan required employees to be classified as eligible and be treated as subject to federal wage withholding by the company. Its other benefit plans required employees to be on the company's payroll. All plans excluded individuals classified as leased employees, contract workers, and independent contractors.
A group of workers, paid through a third-party staffing firm, sued the company under the Employee Retirement Income Security Act (ERISA), claiming the company wrongfully denied them participation in the company's benefit plans. The company maintained that the workers were ineligible for bene...(register to read more)