What is the difference between an employment lawyer and an employee benefits attorney?
Doll Lank explained that while both employment lawyers and benefits attorneys work with companies that have employees, their areas of practice are distinct. Employment lawyers typically handle state law issues and federal civil rights claims related to workplace disputes, contracts, discrimination, and pay disputes.
By contrast, employee benefits attorneys focus on a much narrower subset of federal tax law and ERISA regulations. Their work involves retirement plans, health and welfare plans, and other benefit programs. Because of this specialization, many employment lawyers are not deeply familiar with the technicalities of ERISA or benefits law. Likewise, benefits attorneys typically do not handle employment contract disputes.
Where do employment law and benefits law overlap?
Kathleen Bass noted that overlap often occurs in leave of absence cases. Employment lawyers manage compliance with state and federal leave requirements, while benefits attorneys address the related coverage and plan implications.
Another area of intersection involves large layoffs or terminations. Employment lawyers may handle notices and compliance, but benefits attorneys ensure retirement plan rules—such as partial termination and accelerated vesting requirements—are correctly addressed. Without this collaboration, employers risk overlooking serious compliance obligations.
What are examples of benefit law issues that arise in employment disputes?
Doll Lank highlighted that benefit-related claims often surface when employees pursue litigation against their employers. For example, an employee might raise multiple claims—such as wrongful termination, discrimination, and pay issues—handled by an employment lawyer. At the same time, they may add claims about denied health or retirement benefits, which fall under ERISA and require the expertise of a benefits attorney.
Employment litigators may not fully understand the remedies available or the technical procedures required for benefits claims, which is why collaboration is critical.
How does unresolved benefits litigation affect employers?
Doll Lank emphasized that unresolved benefits issues almost always worsen over time. If plan failures or prohibited transactions are left uncorrected, penalties and costs grow, creating larger financial and employee relations problems.
Unlike most employment law claims, many benefit plan violations have no statute of limitations until the plan is terminated or the violation is reported. This structure incentivizes employers to promptly correct issues. In litigation, unresolved benefits failures can be powerful tools for plaintiffs, making early resolution with a benefits attorney essential.
How do COBRA and layoffs affect litigation?
Kathleen Bass explained that COBRA claims are often “tacked on” to wrongful termination lawsuits. While they may not be the central issue, they can create additional liability if employers fail to provide proper notices. Benefits attorneys can strengthen defenses by reviewing compliance and providing evidence that requirements were met.
She also discussed the impact of significant layoffs. If a large percentage of retirement plan participants are terminated, it may trigger a “partial termination” requiring accelerated vesting. Overlooking this obligation can result in costly corrections and back payments to former employees.
What are real-world examples where benefits attorneys changed outcomes?
Doll Lank shared a case where a wrongful termination lawsuit involved employer stock held in a retirement plan. The parties attempted to settle the case by including provisions that would have caused a prohibited transaction under ERISA. A judge required the parties to involve a benefits attorney, and Doll Lank was able to revise the settlement to ensure compliance. Without that intervention, the employer could have faced significant penalties.
Kathleen Bass provided the opposite example, where a company failed to involve a benefits attorney during a large layoff. The employment attorney handled notices correctly, but no one reviewed the retirement plan implications. Later, an auditor identified a partial termination that had not been addressed, forcing the employer to track down former employees and pay benefits with interest. This costly error could have been avoided with timely benefits counsel.
How can employment lawyers identify benefits issues early?
Doll Lank advised that whenever the term “benefits” appears in a lawsuit or employment dispute, it should signal a potential need for a benefits attorney. Employment lawyers should develop relationships with benefits counsel, creating a network they can consult when benefits-related questions arise.
Kathleen Bass added that collaboration between firms helps ensure both employment and benefits issues are fully addressed. Whether in lawsuits, layoffs, or drafting employee handbooks, employment lawyers can better protect clients by spotting benefits issues early and involving the right expertise.