The Charlotte, North Carolina-based Atrium Health nonprofit corporation is the target of a lawsuit over its status under the Employee Retirement Income Security Act (ERISA).
The suit, brought by former Atrium employees, alleges in federal court that Atrium incorrectly identifies as a "government entity" in order to exempt itself from legal protections for participants in the company's pension, 401(k), and health care plans.
The plaintiffs allege this exemption threatens the health care and retirement benefits of more than 65,000 Atrium Health employees by decreasing the security of the system's retirement and health care benefits and by forcing participants to pay more than they should. The plaintiffs further allege the government plan exemption allows Atrium to participate in activities that would be barred for plans governed by the Act.
The plaintiffs allege Atrium is a health care giant trying to get away with spending money to expand its operations rather than on its employees. "Bogus 'government entity' claim by Atrium Health cheats employees on benefits, lawsuit says" www.beckershospitalreview.com (Nov. 20, 2018).