Some employers offer benefits not only to their current employees, but under certain circumstances also offer certain benefits, such as health insurance, to employees who retire from working for them. Employers sometimes modify the terms of benefit policies, programs, and plans for a number of reasons, including to change coverages or eligibility requirements or to adjust contribution rates. Employers looking to make these sorts of changes, or even to discontinue certain retiree benefits, can do so now with more confidence that they won’t violate the Americans with Disabilities Act (ADA) after a recent decision by the United States Supreme Court.
On June 20, 2025, the Court decided in Stanley v. City of Sanford, Florida that retirees, as former employees, are not covered by the ADA’s anti-discrimination provision when applied to receipt of certain post-employment benefits.
The case was brought by Karyn Stanley, a firefighter who worked for a Florida city’s fire department. When she was hired in 1999, the city offered health insurance until age 65 for employees who retired either with 25 years of service and or those employees who retired due to a disability but prior to having 25 years of service. However, a few years later, in 2003, the city changed its retiree health insurance policy to provide health insurance to age 65 only for retirees with 25 years of service. Employees who retired earlier due to disability would receive coverage not until age 65, as previous, but...
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