Sysco Improper COBRA Notice to Terminated Employees Class Action

The Employee Retirement Income Security Act of 1974 governs more than retirement provisions for employees of larger companies. Its amendment by the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) permits terminated employees to continue their health insurance coverage for a period of time. In this class action, the complaint alleges that Sysco Corporation did not provide proper notice of this benefit at separation.

The Deficient COBRA Notice Class is all participants and beneficiaries in Sysco’s health plan in the US who provided a COBRA notice by Sysco in the form attached to the original complaint as Exhibit A, during the applicable statute of limitations, as a result of a qualifying event as determined by Sysco, who did not choose to continue coverage.

COBRA requires that employers provide adequate notice of an employee’s right to receive continuation of coverage. The complaint says, “The notice must be sufficient to permit the discharged employee to make an informed decision whether to elect coverage.”

This notice is important enough and detailed enough that the Department of Labor (DOL) has issued a Model COBRA Continuation Coverage Election Notice. The DOL website says that the DOL “will consider use of the model election notice, appropriately completed, good faith compliance with the election notice content requirements of COBRA.”

Plaintiff Danny Walker had worked for Sysco since July 30, 2018, the complaint says, when he “was abruptly terminated on November 22, 2018. [Walker] was not fired for gross misconduct.”

The complaint lists a number of ways in which the COBRA notice he was given violates the law, including the following:

  • It does not include the name of the plan under which he could get continuing coverage.
  • It does not identify the beneficiaries who are eligible for the continuing coverage.
  • It does not explain the procedures for continuing coverage or provide contact information.
  • It does not display the amount he would have to pay to continue the coverage or the address to which the payments must be sent.
  • It does not set forth the maximum period during which he could have coverage.

COBRA applies to companies that had more than twenty employees on a typical business day during the previous year. The point of the notice, the law says, is to give “each qualified beneficiary who would lose coverage under the plan as a result of a qualifying event … to elect, within the election period, continuation coverage under the plan.” The notice must be provided to the employee within forty-four days.

Article Type: Lawsuit
Topic: Employment

Most Recent Case Event

Sysco Improper COBRA Notice to Terminated Employees Complaint

May 26, 2020

The Employee Retirement Income Security Act of 1974 governs more than retirement provisions for employees of larger companies. Its amendment by the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) permits terminated employees to continue their health insurance coverage for a period of time. In this class action, the complaint alleges that Sysco Corporation did not provide proper notice of this benefit at separation.

Sysco Improper COBRA Notice to Terminated Employees Complaint

Case Event History

Sysco Improper COBRA Notice to Terminated Employees Complaint

May 26, 2020

The Employee Retirement Income Security Act of 1974 governs more than retirement provisions for employees of larger companies. Its amendment by the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) permits terminated employees to continue their health insurance coverage for a period of time. In this class action, the complaint alleges that Sysco Corporation did not provide proper notice of this benefit at separation.

Sysco Improper COBRA Notice to Terminated Employees Complaint
Tags: Employment Violations, Improper COBRA Notice