Walmart Class Action: Retailer Failed to Provide Proper COBRA Notices

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Walmart is facing a class action lawsuit alleging it failed to provide employees with required notice of their right to continued health care coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).

Plaintiff Jamie Bryant of Florida filed the Walmart class action lawsuit, which alleges the retailer violated the Employee Retirement Income Security Act of 1974 (ERISA) as amended by COBRA by failing to provide adequate notice of their right to continue their health coverage upon the occurrence of a “qualifying event.”

According to the Walmart class action lawsuit, “COBRA requires the plan sponsor of each group health plan normally employing more than 20 employees on a typical business day during the preceding year to provide ‘each qualified beneficiary who would lose coverage under the plan as a result of a qualifying event … to elect, within the election period, continuation coverage under the plan.’”

Under COBRA, the administrator of such a group health plan is required to provide a qualified beneficiary who has experienced a qualifying event notice of their continuation of coverage rights.

Bryant says she was employed as a store manager at Walmart from 2009 until she was terminated on Apr. 8, 2016. Her termination, which was not due to gross misconduct, counts as a “qualifying event” under COBRA, the Walmart class action lawsuit states.

Bryant claims that she received a COBRA notice on April 26, but that the notice was deficient and she was unable to obtain continuation coverage. According to the Walmart COBRA notice class action lawsuit, the notice should have included certain information.

Bryan asserts that the COBRA notice she was sent partially complied with the regulations, “but only to the extent that served [Wal-Mart’s] best interest.”

According to the Walmart COBRA class action lawsuit, critical portions were omitted or altered such that she was not provided notice about all required coverage information. She says this hindered her ability to obtain continuation coverage.

The COBRA notice sent by Walmart is “confusing, ambiguous and critical components, are piecemealed throughout the notice rather than being made clear and understandable to the average plan participant,” the COBRA notice class action lawsuit states.

Bryant says that the notice she received also failed to explain coverage options that may be available for spouses and minor children.

By filing the COBRA class action lawsuit, Bryant seeks to represent herself and a Class of participants and beneficiaries in Walmart’s health plan who were sent a COBRA notice by Walmart as a result of a qualifying event. She is seeking statutory penalties, injunctive relief, attorneys’ fees and costs, and other relief deemed appropriate by the court.

Bryant is represented by Chad A. Justice of Black Rock Trial Lawyers and Luis A. Cabassa and Brandon J. Hill of Wenzel Fenton Cabassa PA.

The Walmart COBRA Notice Class Action Lawsuit is Jamie Bryant v. Wal-Mart Stores Inc., Case No. 1:16-cv-24818, in the U.S. District Court for the Southern District of Florida, West Palm Beach Division.

UPDATE: On April 18, 2019, a Florida federal judge ruled that Walmart must face a class action lawsuit claiming that the retail chain did not sufficiently inform workers of their COBRA health benefits.