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ARTICLE · 29 JULY 2022

Question Corner - July 28, 2022

Parsons Behle & Latimer
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An employee has been permanently disabled since 2012 and has been allowed by union contract to remain on the group insurance, provided the employee pays his or her share of the premium.

United StatesEmployment and HR
Jason R. Mau
Jason R. Mau

Terminating Coverage

Q. An employee has been permanently disabled since 2012 and has been allowed by union contract to remain on the group insurance, provided the employee pays his or her share of the premium. The employee has become delinquent and has stated they don't have the money to pay the amount due. Are we allowed to terminate the coverage?

A. Yes, you can, assuming the union contract does not state otherwise. If the contract does not state otherwise, you are not bound by Idaho or federal law to maintain employee coverage under these circumstances. Specifically, the Americans with Disabilities Act (ADA) and the Family and Medical Leave Act (FMLA) do not require continued coverage in your situation. Employee coverage under the ADA is required only if continued coverage is provided for other employees on similar leave. Terminating coverage for this employee for failure to pay the premium is not an ADA violation if all similarly-situated employees are held

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