The PPACA hereinafter referred to affectionately as Obamacare, has created a sea change in how to deal with the whole problem, structure and cost of employee health benefits. This paper will review the impact and options available to employers in two parts.
Insurer Has Duty to Defend but Not Indemnify Due to Legal Uncertainty about Coverage at Time of Tender
By Richard L. Reiter, Esq. & Laura A. Alos, Esq. of
Wilson Elser Moskowitz Edelman & Dicker LLP
Insurer Cannot Assert Lack of Coverage for Default Judgment Due to Exclusions After Breaching Duty to Defend
By Joseph P. Monteleone, Esq. of Tressler LLP
In a unanimous Opinion handed down on June 11, 2013, the New York Court of Appeals held that "when a liability insurer has breached its duty to defend its insured, the insurer may not later rely on policy exclusions to escape its duty to indemnify the insured for a judgment against him." K2 Investment Group, LLC v. American Guarantee & Liability Ins. Co., 2013 NY Slip Op 4270, (New York June 11, 2013).
EEOC Settles First Genetic Discrimination Suit Under GINA
By Marc Zimet, Esq. of Jampol Zimet LLP
Last month, the Equal Employment Opportunity Commission (EEOC) settled its first lawsuit under the Genetic Information Nondiscrimination Act (GINA). GINA was enacted in 2008 and took effect in 2009. It prohibits an employer from using genetic information to make employment decisions, including decisions related to the hiring, firing, promotion, pay, job assignments, training, and benefits of its employees.
Exotic Dancers, Other Gentlemen's Club Employees Denied Conditional Certification
By William J. Anthony, Esq. of Jackson Lewis LLP
The U.S. District Court for the Eastern District of Arkansas (Judge Susan Webber Wright) denied a FLSA 216(b) motion for conditional certification by seven former employees of a strip club in Jacksonville, Arkansas who filed a putative class and collective action against the club's owners and managers alleging that they had been improperly classified as independent contractors in violation of the Fair Labor Standards Act (FLSA) and the Arkansas Minimum Wage Act (AMWA).
Insurance Coverage Tip
Lauren Tizio of Martin & Company
United States Liability Insurance (USLI) Company recently introduced a new Special Events Hole in One Program, which provides Prize Indemnification Coverage for Golf Tournaments.