Guidance on Discrimination in Employee Benefits - Equal Employment Opportunity Commission report - Brief Article

The Equal Employment Opportunity Commission (EEOC) issued in October 2000, a new 70-page enforcement guidance that analyzes fringe benefit discrimination claims under the Age Discrimination in Employment Act, the Americans with Disabilities Act, Title VII of the Civil Rights Act of 1964, as amended, and the Equal Pay Act. The guidance explains how these employment discrimination laws apply to discrimination claims in health and life insurance, long-term and short-term disability benefits, severance and pension benefits and early retirement incentives.

The question-and-answer format addresses specific benefit issues, such as pension plans and benefits affected by pregnancy and related conditions, the "equal cost or equal benefit rule," the impact on benefits of Medicare law, and when "offsets" from certain benefits may be made because of other received benefits.

This guidance makes it clear that employers are never allowed to consider employees' race, sex, color, national origin, or religion, nor retaliate against members of these protected classes in connection with benefits. In addition, benefits which differentiate on the basis of age or disability must be carefully examined in view of the applicable laws. "Questions and Answers on EEOC Guidance on Discrimination in Employee Benefits," reprinted in BNA's Daily Labor Report, No. 193 (10/4/00), p. E-1.

Impact: Employers, and particularly benefits specialists, should become familiar with this EEOC guidance, which emphasizes the impact on benefits of several laws other than ERISA.

COPYRIGHT 2001 ACC Communications Inc.
COPYRIGHT 2001 Gale Group