McDonald’s Class Action Claims Misleading COBRA Letters Caused Employees to Lose Insurance, Incur Bills Amidst Pandemic

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

McDonald’s COBRA Notice Class Action Lawsuit Overview: 

• Who: McDonald’s has been hit with a class action lawsuit over its COBRA health insurance notices.
• Why: An ex-employee says the fast-food giant breaks federal laws by confusing and misleading workers into discontinuing their healthcare coverage.
• Where: The lawsuit is pending in Florida district court.

McDonald’s violated federal laws by sending former employees misleading and confusing letters about extending their health insurance benefits, leading ex-workers to lose insurance and incur large healthcare bills during the pandemic, a former staffer alleges in a class action lawsuit.

Ashley Johnson, who worked at McDonald’s from September 2016 through September 2020, alleges in the new lawsuit that the company violates the Employee Retirement Income Security Act (ERISA) as amended by the Consolidated Omnibus Budget Reconciliation Act (COBRA) by sending out deficient COBRA notices that both confused and misled her.

“It also caused Plaintiff economic injuries in the form of lost health insurance and unpaid medical bills, as well as informational injuries,” the lawsuit alleges.

Johnson says that McDonald’s has repeatedly failed to provide participants and beneficiaries in its retirement plan with adequate notice of their right to continue their health coverage after a “qualifying event,” such as being fired.

The reason for the notice is to help people stay insured, not discourage them from seeking continuation of their insurance, which Johnson alleges McDonald’s does.

“Rather than including all information required by law in a single notice, written in a manner calculated to be understood by the average plan participant, Defendant’s COBRA notification process instead offers only part of the legally required information in haphazard and piece-meal fashion,” she says.

For example, she says that the COBRA Enrollment Notice sent to her after her termination violates the law because it fails to include an address indicating where COBRA payments should be mailed.

“Despite having access to the Department of Labor’s Model COBRA form, Defendant chose not to use the model form — presumably to save money by pushing terminated employees away from electing COBRA,” she argues.

She says that McDonald’s instead opted to break the information into multiple documents, mailed separately, containing bits and pieces of information on COBRA, all of which are still missing critical information.

She adds that McDonald’s notice does not actually explain how to enroll in COBRA, “nor does it bother including a physical election form.”

“Instead, it merely directs plan participants to a ‘catch-all’ general H.R. phone number to enroll in COBRA, operated by a third-party guised as Defendant benefits department, rather than explaining how to actually enroll in COBRA.”

McDonald’s Kept Important Info From Workers, Claims Class Action

Johnson argues that McDonald’s’ violations don’t stop there, with the fast-food giant not letting employees know about changes in federal law during the COVID-19 pandemic.

Despite the government extending the deadline to enroll in and pay for COBRA continuation coverage in May 2020, which would have allowed Johnson to keep her insurance, McDonald’s did not provide that information, and “neither Plaintiff nor any of the putative class members were able to take advantage of this crucial Congressional mandate.”

“As a result, Plaintiff lost her health insurance and incurred medical bills during the year 2020.”

Johnson argues that in addition to a paycheck, health insurance is one of the most valuable things employees get in exchange for working for an employer like McDonald’s.

She wants to represent anyone in the country who received a COBRA notice from McDonald’s and is seeking certification of the Class, damages, legal fees and costs, and a jury trial.

Have you ever been sent a confusing COBRA notice by your employer? You may not be the only one! Consider starting a class action lawsuit.

The plaintiff is represented by Luis A. Cabassa and Brandon J. Hill of Wenzel Fenton Cabassa PA.

The McDonald’s COBRA Notice Class Action Lawsuit is Ashley Johnson v. McDonald’s Corp., Case No. 1:21-cv-24339, in U.S. District Court for the Southern District of Miami.

Read About More Class Action Lawsuits & Class Action Settlements:

• McDonald’s Should Face Voice Data Privacy Lawsuit, Class Action Plaintiff ArguesReplace link text
• NCAA Can’t Shake Class Action Arguing College Athletes Should Be Paid
• McDelivery Customers Serve McDonald’s Class Action Lawsuit After Data Breach
• McDonald’s Workers Ink Settlement After Being Told to Mask with Doggy Diapers, Coffee Filters