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Sunday, October 18, 2026

Disney Beats Severance Suit by Employee Terminated After Stroke - Bloomberg Law

Walt Disney Co. properly denied $44,277 in severance benefits to an employee who stopped working after having a stroke, the Second Circuit ruled Wednesday, reasoning that a termination due to disability doesn’t qualify as a layoff under the relevant plan.

The Disney severance plan gives the company discretion to interpret the ambiguous terms “layoff” and “involuntary termination of employment,” the U.S. Court of Appeals for the Second Circuit ruled in a 2-1 split opinion. The company reasonably interpreted “involuntary” to mean a termination forced upon an employee by the employer, and not one forced by external circumstances like a disabling ...

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