State Law Claim for Invasion of Privacy Escapes ERISA Preemption

Mar 14, 2019

Welcome to Richardson Law Firm PC, your trusted source for legal advice and representation in matters of law and government. We understand the importance of providing high-quality content that assists our clients in obtaining the best possible outcomes. In this article, we will discuss a recent case in which a state law claim for invasion of privacy was found to escape ERISA preemption.

The Basics of ERISA Preemption

ERISA, short for the Employee Retirement Income Security Act, is a federal law that sets standards for private employee benefit plans. It is designed to protect employee benefits and ensure consistency in their administration. However, ERISA also includes a provision known as preemption, which can limit the applicability of state laws in certain cases.

The Case: Rose v. HealthComp Inc.

In the case of Rose v. HealthComp Inc., the plaintiff, Ms. Rose, filed a state law claim for invasion of privacy against her employer, HealthComp Inc. Ms. Rose claimed that the company's actions violated her privacy rights by accessing and disclosing her medical records without her consent.

Background

Ms. Rose was a long-time employee at HealthComp Inc., a company that provides health benefits administration services. She had been receiving medical treatment for a sensitive health condition and had explicitly requested that her medical information remain confidential.

However, Ms. Rose discovered that HealthComp Inc. had accessed and disclosed her medical records to third parties without her consent. This unauthorized disclosure not only violated her privacy rights but also resulted in emotional distress and reputational harm.

State Law Claim

Ms. Rose decided to pursue a state law claim for invasion of privacy against HealthComp Inc. Her legal team argued that the invasion of privacy issue fell under state law jurisdiction and that ERISA preemption did not apply in this specific situation.

Judicial Decision

The court carefully reviewed the facts of the case and the arguments presented by both parties. After a thorough analysis, the court concurred with Ms. Rose's legal team, stating that the state law claim for invasion of privacy was not preempted by ERISA.

The court reasoned that although ERISA preemption is a powerful tool to regulate and maintain uniformity in employee benefit plans, it should not be interpreted as a complete shield against state laws that protect fundamental rights such as privacy. The court emphasized the need to strike a balance between federal and state interests, particularly when an employee's privacy rights are at stake.

The Implications

The court's decision in Rose v. HealthComp Inc. has significant implications for employees seeking legal remedies for invasion of privacy. It reinforces the fact that state laws can, in some cases, provide additional protection beyond what is covered by federal laws such as ERISA.

While ERISA provides a framework for safeguarding employee benefits, it is important to remember that it does not supersede the fundamental rights and protections granted by state laws. Employees should be aware of their rights and consult with experienced legal professionals, like the Richardson Law Firm PC, to understand how state laws may affect their specific situations.

Contact Richardson Law Firm PC for Legal Assistance

If you believe your privacy rights have been violated by your employer or have questions regarding ERISA and state law claims, do not hesitate to contact Richardson Law Firm PC. Our team of dedicated professionals specializes in navigating complex legal issues in the field of law and government. We are committed to providing expert advice and representation, always striving for the best outcome for our clients. Contact us today to schedule a consultation!

Richard O'Rourke
Interesting case, shows the limits of ERISA preemption.
Nov 9, 2023