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Release Date: 10/01/2001
Release Number:
188
Contact Name: Gloria Della
Phone Number: 202.219.8921 |
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New York, New York - The U.S. Department of
Labor has obtained a court judgment on September 28 requiring the retirement
and health plans of United Industry Workers Local 424 to pay $18,524.13 in
pension benefits and back wages to a terminated employee of the plans. The
plans, located in Lake Ronkonkoma (Long Island), New York, terminated the employee
for whistle blowing. |
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The employee was a participant covered by the
union’s health and retirement plans. The person’s employment was
terminated when the employer asked about the employee’s interview with
investigators from the department’s Pension and Welfare Benefits
Administration (PWBA) and the employee declined to respond. Local 424 ceased
operations and was merged into Local 1102. The plans cover as many as 1,873
participants. |
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“This sends a clear signal that the
department will protect participants who are wrongfully denied their rights or
benefits due to cooperation with PWBA during an investigation,” said PWBA
Regional Director Francis Clisham. |
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Besides payment of wages and benefits, the court
barred the plans from taking any action against plan participants which prevent
them from exercising their rights to benefits or cooperating with federal
government investigations. The Employee Retirement Income Security Act (ERISA)
prohibits coercion or discrimination against participants who exercise their
rights under plans governed by the law. |
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The judgment resolves a suit filed on August 30,
2001 in federal district court in Brooklyn, alleging the plans violated the
whistle blowing provisions of ERISA. This case resulted from an investigation
conducted by the New York regional office of PWBA. |
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Employers and workers can reach the office at
212.337.2228 for help with problems relating to private-sector pension and
health plans.” |
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(Chao v. Local 424 Health Benefits Plan
Civil
Action No. 01-CV-5917) |
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U.S. Department of
Labor news releases are accessible on the Internet. The information in this
news release will be made available in alternate format upon request (large
print, Braille, audio tape or disc) from the Central Office for Assistive
Services and Technology. Please specify which news release when placing your
request. Call 202.693.7773 or TTY 202.693.7775. |
