Capgemini to Pay $1M to Settle Continued Health Coverage Lawsuit

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By Kodichi Nwankwo

Capgemini North America Inc. agreed to pay nearly $1 million to roughly 1,300 workers who alleged the company failed to provide information about continued health-care coverage.

A lawsuit filed in 2016 by two Indian former employees of Capgemini alleged that the company violated the Consolidated Omnibus Budget Reconciliation Act by failing to notify workers of their right to continue health insurance coverage when they were transferred back and forth between the U.S. and India.

The workers said the transfer was an employment termination, which should have prompted the company to provide COBRA benefits.

Under COBRA, employers with 20 or more workers are required to offer their former employees the option to continue their health-care benefits after employment termination.

The parties agreed that the settlement sum was fair and reasonable. Capgemini, a multinational consulting company, didn’t admit liability.

The settlement still needs final court approval.

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