A class action lawsuit has been filed against Dave & Buster’s, Inc. for “right sizing” hours of employees to avoid coverage under the ACA. The lawsuit was brought under ERISA section 510, that prohibits firing and other actions designed to prevent employees from becoming entitled to employee benefits. The possibility of such a suit was noted in the November 20, 2014 edition of the Bull Sheet. As was noted then, employers should be careful in what they say and do in this area. It is difficult to say whether the suit will be successful. ERISA section 510 has primarily been successfully used by people being fired, etc. to prevent vesting in benefits, instead of preventing an employer from becoming subject to a federal law. It seems more likely than not that the suit will not succeed.
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Aug 2015
Class Action Filed Concerning Obamacare “right sizing” of hours of employees
August 18, 2015 By