Constitutional Law

ERISA: Shield or Sword?

Federal judge questioned the unfairness of interpretation of the Employee Retirement Income Security Act (ERISA) which, rather than protect employee benefits, has been used by employers as a shield against suits, the Associated Press reported.

A series of Supreme Court decisions dating to 1993 has led many federal appeals courts to rule in favor of employers, by holding that companies that offer health, life and retirement benefits under ERISA cannot be sued for large amounts of money on the policies or damages, but only smaller sums such as insurance premiums. Judge Fortunato Benavides of the U.S. Court of Appeals for the Fifth Circuit commented, “The facts . . . scream out for a remedy beyond the simple return of premiums.”

The Supreme Court has at least twice refused to clarify the ruling and Congress has yet to take action.

Full post as published by ACS Blog on July 12, 2008 (boomark / email).