Wednesday, July 15, 2015

Wal-Mart sued for denying health insurance to gay worker's wife

The Wal-Mart company logo is seen outside a Wal-Mart Stores Inc company distribution center in Bentonville, Arkansas June 6, 2013.  REUTERS/Rick Wilking

Wal-Mart Stores Inc (WMT.N) employee sued the retailer on Tuesday, saying its prior policy of denying health insurance to the spouses of gay employees violated gender discrimination laws.
The lawsuit, filed in U.S. District Court in Boston, seeks nationwide class-action status.
Wal-Mart, the largest private U.S. employer, began offering health insurance benefits to same-sex spouses last year, after the U.S. Supreme Court in 2013 struck down part of the Defense of Marriage Act that denied federal benefits to married gay couples. Even after that change, the lawsuit says, Wal-Mart workers still live with the uncertainty of losing spousal coverage.
"Benefits provided by Wal-Mart as a matter of grace ... are not secure and could potentially be withdrawn just when large health care costs are incurred," the lawsuit says.
Jackie Cote, who has worked at Walmart stores in Maine and Massachusetts since 1999, said in the lawsuit that her wife, Diana Smithson, developed cancer in 2012 and the denial of insurance led to more than $150,000 in medical debt.
Cote and Smithson were married in Massachusetts in 2004, days after a court ruling made the state the first to allow gay nuptials.
Smithson worked for Wal-Mart until 2008, when she left to care for Cote's elderly mother, according to the lawsuit. The company then repeatedly denied requests by Cote to add her wife to her insurance policy. Smithson is now in hospice care, Cote said.
Last year, Cote filed a complaint with the U.S. Equal Employment Opportunity Commission, a prerequisite to filing an employment discrimination lawsuit. The commission said in January that Wal-Mart violated gender discrimination laws by denying benefits to Smithson.

The commission in recent years has pioneered the argument that employment discrimination against gay people is a form of gender discrimination, since it would not happen if an employee were of the opposite sex, but it has not been vetted by courts.

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