Legal Question in Business Law in New York

Company refusing to give health benefits
Hi, my husband took a new job recently. In the interview, he stated that he would need to have a job offer with full health insurance coverage for himself, his wife, (me), and two kids. They replied with an offer including ''full health benefits, such as what is offered to the other employees, after 60 days'' Four months later, We are told that they will only pay for my husband, and we have to pay the difference in cost for family coverage - about $1000 a month. They claim that they just ''don't'' pay for spouses. However, it is a small company (15 employees) and none of the other employees have children or uninsured spouses, so none of them have ever needed coverage. We moved 2000 miles for this job! We both feel cheated. Do we have any recourse? Thanks.

Asked on 12/31/06, 6:58 pm

3 Answers from Attorneys

Nancy Delain Delain Law Office, PLLC

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Re: Company refusing to give health benefits

Unfortunately, your only real recourse is for your husband to quit his job and tell the world why. Don't do that without having another job in hand first.

Health insurance coverage policy is something that the employer should make very, very clear in the interview process; they clearly didn't, and your husband should have asked about it, point-blank. Their language in the offer is vague, and should have elicited a phone call from your husband before he accepted the job and moved your family 2000 miles.

However, since you did move 2000 miles specifically for the job, you might argue that you relied to your detriment on their statement regarding health insurance; that may fly in court, but if you get to court with your husband's employer, his job won't be worth having anyway. A small employer can make an employee's live very, very miserable in many, many ways.

You might ask the employer about setting up a Health Savings Account (HSA) program to which their employees contribute pre-tax dollars to spend on health-related expenses. If you then contribute the cost of your monthly health insurance bill plus copays, at least the $1000/month will be out of pre- rather than post-tax dollars.

We have many great things in the USA, but our health insurance coverage situation is a national embarrassment. You have my sympathy.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

Answered on 12/31/06, 9:42 pm

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Mark S. Moroknek Kelly & Curtis, PLLC.

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Re: Company refusing to give health benefits

Not on the facts you describe. Under New York law there is no obligation for a company to provide benefits however once they do, they must stick to their agreement. So if there is anything in writing about the coverage that led you to believe it was family plan coverage add that to the question.

Answered on 1/02/07, 6:39 pm

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