Temp workers may be eligible for plan benefits; divergent decisions in 'Dupont' and 'Microsoft' cases turned on interpretation of plans
Article Abstract:
There have been divergent rulings on the eligibility of temporary employees for employee benefits by various federal circuit courts of appeals. The US Court of Appeals for the 9th Circuit ruled in Vizcaino v. Microsoft that temporary employees were eligible for such benefits in spite of having signed contracts agreeing to non-eligibility, while the 4th Circuit ruled in Clark v. Dupont that the language of Dupont benefit plans excluded leased employees. The latter court's finding shows the importance of wording contracts for temporary employees unambiguously, especially since employers are growing increasingly reliant on temporary employees for important staffing needs.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1997
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Employers may modify 'welfare plans.' (most ERISA pension requirements not applicable to welfare plans)
Article Abstract:
Two cases in 1991 reaffirmed that employers have considerable latitude under ERISA to alter and limit employees' welfare plans. ERISA defines such welfare plans as being maintained by employers to provide medical, surgical, hospital or other such benefits to its participants. In 'McGann v. H & H Music Co.' the 5th Circuit in Nov upheld the right of employers to revise welfare plan benefits. In 'Hamilton v. Air Jamaica Ltd.' the 3d Circuit ruled in Sep that employers must explicitly reserve the right to modify welfare plans.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1992
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As a result of the 9th Circuit's en banc ruling in the 'Microsoft' case, contingent workers who had agreed to give up benefits should receive them retroactively
Article Abstract:
The Ninth Circuit has ruled that contingent workers should be awarded certain benefits retroactively if these workers were integrated into an employer's workforce. Rights to participate in stock options and pension benefit plans are awardable to employees who may have been designated freelancers or temporary workers, if those employees have been classified as employees for IRS purposes. The Ninth Circuit's ruling in Vizcaino v. Microsoft conflicts with earlier Third Circuit Rulings which favored employers.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1997
User Contributions:
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- Abstracts: Employee or independent contractor? Vizcaino v. Microsoft Corporation. Vizcaino v. Microsoft Corporation; a labor and employment lawyer's perspective
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