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Is it illegal to terminate an employee because they are "costing" them too much money on their health insurance?

Greensboro, NC |

I was told by my employer that it was costing them too much money on health insurance and my sales and hours would not suffice and that it just wasn't working out and they had to let me go .i am currently on medical leave with a doctors note.

Attorney Answers 3


It is not illegal discrimination (race gender age etc). If there more to the story sit down in person with a lawyer and hire one for a full opinion on your options

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Amy S Cramer

Amy S Cramer


It COULD BE discrimination under ERISA, but typically theses cases can be difficult to prove.


The medical insurance provided by your employer likely qualifies as a Welfare Benefit Plan so you are protected from any retaliation based on the expenses your health condition is causing to the Plan. Violation of the FMLA and disability discrimination laws may also be implicated in your situation. You would need to speak to a lawyer in order to flesh out all of the necessary facts for a proper legal analysis of your claims.

Our firm is licensed to practice law in the State of Wisconsin and offers information on federal laws that may apply to residents of other states, however, we offer no advice as to the state laws outside of Wisconsin.

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The combination of facts you have provided strongly suggests that your employer may be discriminating against you for taking medical leave and/or the use of your employer-sponsored insurance. That would invoke protections (and create claims under) FMLA for the medical leave and ERISA for the use of your insurance. I would strongly recommend that you speak with an employment attorney in your area who can investigate your situation and discuss your options.

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