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Recent Developments in New York Regarding Employment Practices

A federal district court in New York ruled that a church agency did not violate the Family and Medical Leave Act by dismissing an employee whose investment decisions resulted in a loss of $8 million in church funds.

New York
State:
Key point. An employer that has decided to dismiss an employee does not violate the Family and Medical Leave Act by announcing its decision when the employee is away from work on medical leave.

A federal district court in New York ruled that a church agency did not violate the Family and Medical Leave Act by dismissing an employee whose investment decisions resulted in a loss of $8 million in church funds. The director of human resources of a church agency invested funds belonging to a health insurance program for retirees. When it was learned that the director's investment decisions had resulted in a loss of $8 million, the church tried to negotiate an orderly resignation rather than terminate the director outright. In a memorandum to a church official, the director stated that "upon mutual agreement and execution of a negotiated resignation agreement, I will resign, at a time certain, ...

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Posted:
  • January 1, 1998

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