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ERISA/ACA Violations
March 16, 2016

The National Law Review reported that national entertainment chain Dave & Buster’s is being sued for violating both the ACA and ERISA regulations by cutting employee’s hours in order to stop them from paying for Health benefits. The company had offered and paid for “Full-Time” employee’s medical benefits, then subsequently campaigned to “right size” the organization, and cut hours of employees in order to avoid being included in the new Affordable Care Act provisions. This new action by the US District Court for the Southern District of NY, demonstrates how careful a company must be when deciding to change the status of their employees covered under ERISA (ERISA Section 510 was what D&B was sued under). The ultimate outcome has not been decided as yet – stay tuned…

Lois Krause

Lois Krause

Author

With 25+ years of experience, Lois Krause's HR strengths include labor law, employee relations, OD, and performance management. Lois has advanced HR certifications.

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