The NAM filed a brief, along with the ERISA Industry Committee and LPA, on 4/5/01 supporting a company's denial of full-time employee benefits to contract workers (temps, third-party employees). A group of contract workers claimed they were entitled to benefits under the company's pension, stock ownership, profit sharing, medical and life insurance plans)."The plaintiffs were repeatedly told and signed agreements indicating that they understood that they were not entitled to Xerox benefits," the NAM told the court. It "defies common sense to think that Xerox would have taken all these steps if the company had intended its plans to provide benefits . . . ."
Xerox won in district court, but the workers appealed. AARP and the National Employment Lawyers’ Association have urged the appeals court to reverse the decision.
On 7/3/01, the Second Circuit affirmed the district court's ruling. This is an important decision that will hamper efforts by contract workers to claim eligibility for benefits reserved for full-time employees.