Skip to content Skip to navigation

Clawback of Benefits

Duke Energy Truck by Electrical Tower

At some companies, a collective bargaining agreement allows employees to bank their unused sick leave or short-term disability hours, even for years. Should the company later be allowed simply to wipe out those hours, without discussion or compensation? The complaint for this class action alleges that Duke Energy Corporation did just that. It claims violations of the Employee Retirement Income Security Act (ERISA) and the Tennessee Human Rights Act (THRA) along with age discrimination.

Cigna Logo

Plaintiff Anthony Patchell suffers from disabilities from his time as a soldier in Bosnia and Iraq. When he was finally ruled to be totally disabled, he was working for a company that had a disability insurance plan, so he expected to receive benefits from the plan. The complaint alleges that he received the benefits for a short time, but that the plan then decided he was not eligible for what he had been receiving and it began to take 100% of his benefits as a clawback. The complaint claims that this is illegal under ERISA because of a recent Supreme Court case, Montanile v. Board of Trustees of the National Elevator Industry Health Benefit Plan.