In 2000, the Ford Motor Company spun off its automotive parts subsidiary Visteon. This resulted in the
Question:
In 2000, the Ford Motor Company “spun off” its automotive parts subsidiary Visteon. This resulted in the transfer of some salaried employees from Ford to Visteon. In 2006, Visteon transferred some of its facilities back to Ford. In 2008, Ford conducted a major reduction in force. It offered severance pay to downsized salaried employees based on years of service with Ford. The plaintiffs in this case were salaried employees who had been transferred to Visteon and then returned to Ford. On their return to Ford, they were classified as “rehired,” rather than as “reinstated,” and given new Ford employment service dates. Consequently, their severance pay was based only on their service since 2006. Did Ford violate ERISA by classifying the employees as “rehired” rather than reinstating them with their original Ford service dates?
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