Who won this case: Pitfalls of electronic communication
Filed under: In this week's e-newsletter, Latest News & Views, Security and law
The easiest way to pump news to employees is often the company intranet. But can employees who miss important info sue you? Read the facts of this real life case and decide – who won?
The facts:
An employee volunteered to take part in a layoff in exchange for a severance package. When the time came, though, the benefits weren’t what he thought they would be. Several months earlier, the company changed its severance policy and posted the changes to its intranet. The man sued, claiming the company didn’t do a good enough job informing employees of the changes to its benefits plan.
The employer said:
Employees were supposed to check the intranet frequently for updates. Anyone who had done so would have been aware of the new severance package.
Who won the case?
Answer: The employee.
Why: The Employee Retirement Income Security Act (ERISA) requires companies to notify employees of benefits plan changes — and ensure they receive the notification. Posting an update online and hoping people would see it didn’t meet those requirements.
What’s the lesson? Despite all the ways technology can make it easier to communicate with employees, when it comes to sensitive legal information, old-fashioned paper is often the best way to go.
Cite: Rosenberg v. CNA Financial Corp.
