6th Circ. Serves Steak 'N Shake A Victory In COBRA Suit

Law360 (September 13, 2019, 7:51 PM EDT) -- The Sixth Circuit handed Steak 'n Shake a win Friday, reversing a lower court decision and finding the restaurant chain didn't have to notify a worker of her right to continued health coverage after she suffered an on-the-job knee injury.  

A unanimous three-judge panel said that the Consolidated Omnibus Budget Reconciliation Act's notification requirements are only triggered when a worker loses a job or experiences another event that causes them to lose insurance, and since Rebecca Morehouse didn't lose insurance after her injury, Steak 'n Shake didn't have to apprise her of her COBRA rights. 

"The question in dispute is whether...

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