Howard Levitt: Companies can be on the hook for huge LTD payments if they fire employees without care

— a recent decision out of Saskatchewan — serves as a sobering reminder to employers in all jurisdictions of their potential liability for an employee’s LTD benefits. Pasap was employed for five years as a facilities manager. The casino gave Pasap an ultimatum: resign or be fired. The court found that the ultimatum amounted a termination giving rise to damages of eight months’ salary and benefits.

Four months after his termination, Pasap suffered a heart attack requiring immediate surgery. The court found that Pasap would have qualified for long-term disability benefits had he been provided with working notice. Since the employer discontinued LTD benefits prematurely, it effectively stood in the shoes of the LTD insurer. Justice McMurtry ordered the casino to pay Pasap over $1 million in LTD benefits.

When employers cut off LTD benefits prematurely, they are not afforded the same remedies as insurance companies. When an employee succeeds against an LTD insurer after a denial of benefits, courts normally award pay up to the date of trial and put the employee back on the LTD policy indefinitely until they recover or reach age 65. The insurer can then assess whether the employee continues to be disabled, especially since some employees get better with appropriate treatment and time.

But when employees succeed against their employers for LTD benefits, putting the employee back on the policy is not an option because employers are not insurance companies. Rather, employers are left holding the heavy bag of benefits payments to age 65, as though the employee would be disabled for the entirety of the policy.Article content

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

New York to charge crypto companies for their supervisionNew York’s Department of Financial Services has released a new proposal that will make crypto companies pay for the costs associated with their BitLicense supervision. Coinbase will love this
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »

Tech companies in Ontario are laying off tons of workers and they're not done yetTech companies have laid off 150,000 people across North America, and there will likely be even more cuts in the months to come. Several Ontario a... Good time for tech companies to trim the fat, especially in marketing.
Source: blogTO - 🏆 44. / 63 Read more »

US Reps say private companies could profit unfairly from Boston Fed CBDC(Kitco News) - Nine members of the United States Congress wrote a letter to Susan Collins, President of the Federal Reserve Bank of Boston yesterday, warning that the Bank’s central bank digital currency (CBDC) initiative could give certain companies an unfair advantage.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »

Opinion | The fossil fuel lobby is powerful, but not invincible. It’s Canada’s turn to adopt a windfall profits tax on oil and gas companiesOpinion: In Canada, the idea of a windfall profits tax is gaining ground, with good reason. As families struggle to afford the basics in life, oil and gas companies are making off like bandits. PMJT & the MP for Carelton would rather bicker over the carbon tax than talk about windfall profit taxes on O&G or grocery store oligarchs. I wonder why eh? Probably b/c both the libs & cons work for the same oligarchs & bickering over the carbon tax is the perfect distraction. Nope So we're going full Venezuela? Seizing assets ?
Source: TorontoStar - 🏆 60. / 55 Read more »

Tesla's market share slips as more automakers offer EVsTesla's market share slips as more automakers offer EVs – via drivingdotca Tesla IndustryNews ElectricVehicles
Source: ottawasuncom - 🏆 4. / 92 Read more »