When Florida employees face denied disability benefits, unpaid severance, or unexpected medical costs, many assume they can turn to state law for protection—whether it’s Florida’s insurance regulations, wage laws, or consumer protections. But when the benefit at issue comes through your employer, those protections may no longer apply.
That’s because a powerful federal law known as the Employee Retirement Income Security Act of 1974 (ERISA) often preempts Florida state law. This means it overrides—or blocks—state legal claims in disputes involving most workplace benefit plans.
Here’s what you need to know before filing a benefits-related claim in Florida.
What Is ERISA?
ERISA is a federal law that sets the rules for most private-sector employer benefit plans, including:
- Health insurance
- Long-term and short-term disability
- Life insurance
- Retirement or pension plans
- Severance and bonus programs (in some cases)
It was designed to create uniform national standards and to protect employee benefit rights across all 50 states. But in doing so, it also prevents states from enforcing many of their own laws if they “relate to” an ERISA-covered plan.
What Is ERISA Preemption?
ERISA preemption means that if your dispute involves an employer-sponsored benefit plan, state laws may not apply—even if they would normally protect you. This includes:
- Florida’s insurance bad faith laws
- Claims for punitive damages or emotional distress
- State wage or contract law claims tied to certain bonuses or severance
- Consumer protection statutes
Even though these laws are valid and widely used in other cases, ERISA blocks them when the dispute is connected to a qualified benefit plan.
Common Examples in Florida
1. Denied Disability Benefits
You’re denied long-term disability benefits and want to sue the insurance company for bad faith. In most cases, if that coverage came from your job, ERISA preempts Florida’s insurance laws—and your claim can only be pursued under ERISA, with limited remedies.
2. Unpaid Severance
You’re let go and told your severance pay won’t be issued. You file under Florida’s wage laws or try to sue for breach of contract. But if the severance is part of a structured plan or company-wide policy, it may qualify as an ERISA plan—again, removing your state law rights.
3. Medical Benefit Disputes
You were denied coverage for a medical procedure that Florida mandates for insurance companies. But if your employer self-funds the health plan (as many large employers do), ERISA preemption may allow the denial to stand, since state mandates don’t apply.
Why It Matters
ERISA claims are handled in federal court, follow different legal procedures, and offer fewer remedies. You generally can’t get punitive damages, can’t demand a jury trial, and are often limited to:
- Recovery of denied benefits
- Enforcement of plan rights
- Attorney’s fees (in some cases)
This can come as a shock to employees who believe they’ve been treated unfairly—but find that the legal remedies they expected simply aren’t available under ERISA.
What You Can Do
- Get legal advice early. Before filing any lawsuit or appeal, consult with an attorney who understands ERISA. Missteps in timing or claims can weaken your case.
- Ask if your plan is ERISA-covered. Not all benefit plans fall under ERISA (for example, government and church plans are exempt). Knowing how your plan is structured is key.
- Review your Summary Plan Description (SPD). This is a required document your employer must provide. It outlines what the plan offers—and your rights under it.
Need Help with a Benefits Dispute in Florida?
At Stewart Lee Karlin Law Group, PC, we represent employees across Florida in complex benefit denial cases. Whether you’ve been denied disability insurance, health coverage, or severance pay, we’ll help you understand your rights and build the strongest possible case—even when ERISA preempts state law.
Contact SLK today to schedule a consultation and protect the benefits you’ve earned.
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