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Photo of Delaware Business Litigation Report Allyson Britton DiRocco
Attorney
adirocco@morrisjames.com
302.888.5210
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Allyson Britton DiRocco defends the interests of both public and private employers in a variety of industries including health care, banking, education, and municipalities against …

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Third Circuit Dismisses Employees’ Class Action Suit and Finds Chemours’ Severance Plan is not Subject to ERISA

Posted In ERISA, News

diroccoIn developing severance plans, employers should take note of the factors courts will consider in determining whether a plan would be considered an “employee welfare benefit plan” under the Employment Retirement Security Act (ERISA). Severance benefits do not implicate ERISA unless they require the establishment and maintenance of a separate and ongoing administrative scheme, and it appears that the employer’s intention is to provide benefits on a regular and long-term basis.

On April 30, 2018, the U.S. Court of Appeals for the Third Circuit affirmed the dismissal of a lawsuit initiated by a class of former employees against Chemours Company under ERISA related to an employee severance plan(Giraradot, et al. v. The Chemours Company).  More ›