CLIENT ALERT: Second Circuit Identifies Three-Part Test to Determine Whether Severance Plans Are Subject to ERISA

October 21, 2015 – In Okun v. Montefiore, the Second Circuit Court of Appeals identified a three-part test to determine whether an employer's severance policy constitutes an “employee welfare benefit plan” under ERISA. Being subject to ERISA results in more stringent regulatory requirements, as well as certain additional protections and benefits for employees.

The attached Client Alert reviews the Okun decision and the three-part test that employers can look to in analyzing whether their severance plan is an ERISA plan.