High Court Decides ERISA Case
In a widely watched employee benefits case, the Supreme Court has made a significant ruling about an employee benefits plan covered by the Employee Retirement Income Security Act (ERISA). The Court said that, under the circumstances of this case, a conflict of interest existed when the administrator of the plan evaluates the validity of benefit claims and also pays for them.
In Metropolitan Life v. Glenn, an employee initially received disability benefits. Later, the benefits were terminated. The plan administrtor, MetLife, was also the insurer that paid claims under the benefits plan. Wait a minute, said the employee whose benefits were terminated. You can’t let the company who pays the benefits also adminster the plan and decide whether benefits are paid without violating ERISA.
In a somewhat fractured opinion, the Court didn’t say that a company could never be both the administrator that decided whether benefits were paid and the insurer that paid the benefits. In this case, said the Court, the conflict was too significant for MetLife to have both roles.
About Chris Parker
Chris Parker's practice focuses on the representation and counseling of companies in matters pertaining to the workplace and the protection of their intellectual property and trade secrets. In addition to serving as an advocate for clients, Mr. Parker is also trained as a mediator and frequently serves as a third-party neutral.
Read more about Chris Parker
About Jimmy Daniel
Jimmy Daniel provides counseling to businesses of all sizes related to the employment relationship. He assists in the drafting of employment agreements, policies, and handbooks, as well as provides guidance related to compliance with federal, state, and local legislation such as the Fair Labor Standards Act and the Family and Medical Leave Act.
Read more about Jimmy Daniel
About Larry Bridgesmith
While serving in an Of Counsel relationship with the firm, Mr. Bridgesmith also serves as the Executive Director at the Institute for Conflict Resolution at Lipscomb University and as an officer and principal in Strategic Resolutions Group, LLC. In these roles, Mr. Bridgesmith brings over 30 years of legal experience in dispute resolution and innovative workplace strategies to clients, students and business entities alike.
Read more about Larry Bridgesmith