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The Employer E-Letter:
Labor and Employment Law News from the
Duluth, Minnesota law firm of
Hanft Fride, A Professional Association.
Editor, Kathleen S. Bray, ksb@hanftlaw.com or 218.529.2427.
Please feel free to forward this e-mail or share it with others. If there are other topics of interest to you or any other suggestions concerning this newsletter, please let us know.
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THIS MONTH'S TOPICS:
- NEW MILITARY FAMILY LEAVE LAWS IN MINNESOTA
- ERISA STANDARD OF REVIEW
- NEW MINNESOTA LAW REQUIRING PAID LEAVE FOR PUBLIC EMPLOYEE ORGAN DONORS
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NEW MILITARY FAMILY LEAVE LAWS IN MINNESOTA
The Minnesota legislature's "Governor's Veterans Bill of 2006" includes two sections relating to leaves of absence for employees whose family members are mobilized for active duty military service, or whose family members are injured or killed during such service.
Effective 8/1/06, Minnesota Statutes § 181.947 requires employers to provide an unpaid leave of absence of up to 10 working days for an employee whose immediate family member is killed or injured while on active military duty. Immediate family member is defined as parent, child, grandparents, siblings or spouse. Employees are defined to include independent contractors working for an employer. The employee should give their employer as much notice as they are able to reasonably give prior to taking his or her leave. The employer may reduce the unpaid leave by any paid leave available to the employee. This law is applicable to family members of military personnel who are recovering from injuries that occurred prior to the effective date of the law, as well as those who are injured or killed after the effective date.
The new bill also provides, under Minnesota Statutes § 181.948, that employers must grant an unpaid leave to an employee whose immediate family member has been mobilized into active military service in support of a war or other national emergency. The leave may be limited to the actual time necessary to attend a military send-off or homecoming ceremony, not to exceed one-day's duration in any calendar year. This portion of the law defines immediate family members as grandparents, parents, legal guardians, siblings, children, grandchildren, spouses or fiancées of service members. This unpaid leave does not extend to independent contractors, however.
Have general questions regarding employment law matters? Contact Attorney Kathy Bray at 218.529.2427 or ksb@hanftlaw.com.
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ERISA STANDARD OF REVIEW
The Minnesota Federal District Court has recently confirmed the standard of review that will be applied to the decisions made by a plan administrator. Anderson v. U.S. Bancorp (July 28, 2006). In this case the employer had adopted a severance pay program which is a welfare benefit plan under ERISA. The employee alleged that the committee administering the plan violated ERISA when it denied his claim for benefits finding that he had been terminated for cause. Under the terms of the plan, severance benefits would be denied if the employee was terminated for cause. After the initial denial, the employee used the appeal process provided for under the plan and the original denial was affirmed. The employee then sued the Plan and the committee administering the plan under ERISA.
The U.S. Supreme Court has held that when a plan gives an administrator discretionary authority to determine eligibility, the administrator's decision will be reviewed by the courts based upon whether there has been an abuse of discretion. Although there are several factors that the courts will review to see if there is an abuse of discretion, the primary underlying principal is that where the plan fiduciaries have offered a reasonable interpretation of disputed provisions, the courts may not replace it with an interpretation of their own. If the plan administrator's decision is supported by a reasonable explanation, it should not be disturbed even though a different reasonable interpretation could have been made. Thus, the Minnesota District court again, affirmed the deference that it will give to a plan administrator's discretionary decision under a plan, if it is supported by relevant evidence.
One other note, at the District Court level, the employee attempted to introduce other evidence into the record. The Court ruled that it would only review the evidence available to the plan fiduciaries and the record they had available to them to determine if there was an abuse of discretion.
Questions regarding employee benefits? Contact Faye Witt for more information at 218.529.2428 or fmw@hanftlaw.com
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NEW LAW REQUIRING PAID LEAVE FOR PUBLIC EMPLOYEE ORGAN DONORS
Effective Aug. 1, 2006, a new law in Minnesota requires any public employer (state, county, city, town, school district or other governmental subdivision) employing more than 20 employees to provide a paid leave of absence to an employee who acts as an organ donor. Employees working 20 hours or more per week are eligible for the paid leave. The law requires the public employer to provide up to 40 hours of leave per donation, unless otherwise agreed to by the employer. The employer may verify the required length of the leave by report from the medical provider. The law also has provisions protecting employees from retaliation for requesting such leave, and protecting their other benefits.
The new statute can be found at Minn. Stat. 181.9456.
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Hanft Fride's business and trial lawyers are located at 1000 U.S. Bank Place, in Duluth Minnesota. Visit our website at www.hanftlaw.com. In addition to general information on the firm and our attorneys, you can find past issues of this newsletter. Keep checking back for new information, and let us know if there is anything you would like to see added to the site that would help you and your organization.
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The information provided in this E-letter is general in nature and should not be used as a substitute for professional services and advice. The communication and receipt of this information is not intended to create an attorney-client relationship. Readers should consult with their legal counsel before taking any action on matters covered in this E-letter.
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To subscribe or unsubscribe to Employment Express, e-mail your request to Kathleen S. Bray, ksb@hanftlaw.com or call 218-722-4766.
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Copyright 2006 by Hanft Fride, P.A. All rights reserved. Hanft Fride, A Professional Association, 1000 U.S. Bank Place, 130 W. Superior Street, Duluth, MN 55802. Phone 218-722-4766; fax 218-529-2401.
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