Atrium Defeats Suit, Convincing Judge It's ERISA-Exempt

By Danielle Nichole Smith (September 3, 2019, 2:51 PM EDT) -- Atrium Health won't have to face a proposed class action alleging it ran afoul of the Employee Retirement Income Security Act after a North Carolina federal judge held that its retirement and health plans were "governmental plans" exempt from the federal benefits statute.

U.S. District Judge Thomas D. Schroeder in his order Friday granted Atrium's bid to dismiss its former workers' suit accusing the health care organization of wrongly claiming the governmental plan exemption to avoid having to comply with ERISA.

Applying a two-prong test established by the U.S. Supreme Court in NLRB v. Natural Gas Utility District of Hawkins County...

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