Illinois federal court denies Deere's motion to dismiss ERISA severance claims
Key points
- The court denied Deere's motion to dismiss, and the case moves forward
- The court found the severance program was an ERISA plan
- Employees allege pretextual terminations to avoid severance; the company is accused of withholding severance-rights information
A federal court in Illinois denied Deere & Company's motion to dismiss ERISA claims brought by a product manager and a senior software engineer. The court found the severance program was an ERISA plan. It said the employees plausibly alleged that their terminations were pretextual, made to avoid severance obligations, and that the company may have breached its fiduciary duty by withholding information about severance rights. Case No. 4:26-cv-04114; the ruling is dated Nov. 2. For reference only; this is not legal advice.
What employers should do
- Review whether severance programs may be treated as ERISA plans and confirm plan documents are complete
- Document the business reasons for layoff decisions to avoid claims of pretextual termination
- Clearly inform eligible employees of their severance rights
Policy details
- Jurisdiction
- US District Court, C.D. Illinois
- Status
- Enforcement action
- Effective date
- —
- Employers covered
- Deere & Company
- Official source
- Official source pending
Original report: Bloomberg Law News ↗Edited with AI assistance. Facts are based on official sources and original reports. For information only; not legal, immigration or insurance advice.