Employer Disability Plans May Cut Benefits

Corporate disability benefit policies sometimes sound good on paper, but do not always translate into expected financial payments when an employee becomes disabled.

Consider the case of Kathleen Schiano, who was employed by Wells Fargo & Company as a lead teller. One of her employee benefits was enrollment in a long-term disability plan, which appeared to promise the payment of a percentage of her monthly earnings until age 65 in the event of a disability.

Unfortunately, Ms. Schiano became unable to work as a result of many disabling health conditions, including chronic fatigue and fibromyalgia. Instead of receiving the disability benefits she expected, she was informed by the insurance company that she did not meet the definition of “disabled.” As a result, any long-term benefits were denied.

What happened was that during the course of her employment, the terms of the insurance policy were changed slightly but significantly. Originally, the policy’s definition of disability referred to a condition where the employee could not perform the duties of their regular occupation. This was subsequently changed to a much broader term, where the employee was unable to meet the substantial duties of any occupation.

Even the Social Security Administration, which did grant benefits, noted the extensive nature of her disabilities that made it impossible for her to work.

If you are a business professional who has suffered an unexpected disability through illness or injury, contact Fort Lauderdale disability lawyer Howard Kahn if your disability benefits are at risk. We can help you understand and protect your legal rights to disability benefits. Contact us online or by phone at 954-321-0176.