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Ex-Flexsteel Workers Can Seek Severance Following Covid Layoffs

Aug. 6, 2021, 2:39 PM

Iowa-based furniture maker Flexsteel Industries Inc. must face claims that it wrongly denied severance to workers laid off during the early days of the Covid-19 pandemic, after a federal judge ruled the company may have had a valid ERISA-covered plan.

Flexsteel argued that it had no formal severance plan governed by the Employee Retirement Income Security Act, because the payments it made to workers laid off before the pandemic were “lump sum” payments made in the context of “single, unique events.” But these arguments “rely too heavily on an interpretation of the facts” and thus can’t be resolved at the ...