Woman Sues FedEx for Discriminating Against Same Sex Partners by Denying Death Benefits

On January 14th, the widow of a 26-year employee of FedEx filed a discrimination lawsuit against the company claiming that she was denied death benefits for her spouse because they were a lesbian couple.

Lesly Taboada-Hall was a truck driver for FedEx in California for decades, and died of uterine cancer in June 2013. Six days later, the Supreme Court ruled that the Defense of Marriage Act (DOMA) was unconstitutional, and that the federal government could not bar recognition of same-sex marriages. The repeal of DOMA has led to spousal benefits for same sex couples through social security and insurance companies.

However, prior to the repeal, some private companies used DOMA as a standard to determine “legitimate” spouses who could apply for death benefits after the passing of their husband or wife. Stacey Schuett was determined ineligible by FedEx because her marriage to Taboada-Hall was not seen as valid, because the couple were lesbians, although they were registered in California as domestic partners, and they wed in Taboada-Hall’s hospital room the day before she died.

A state judge ruled that the couple’s marriage was valid, and the federal government ruled that, because DOMA was unconstitutional, same sex couples would retroactively receive death benefits, from private insurance to social security. However, FedEx continued to refuse death benefits to Schuett.

The company said in a statement: “Ms. Schuett’s claim has been carefully reviewed, and while we are sympathetic to her situation, we are required by federal law to apply the pension plan rules equally to all participants.”

Although many employers are now offering death benefits to same sex spouses of late employees, some companies like FedEx claim that, because there was a law in place at the time, they do not have to retroactively offer death benefits.

“But we suspect that some employers won’t do that and will continue to try and discriminate against their employee,” said Amy Whelan of the National Center for Lesbian Rights. “What happened to Stacey and Leslie can very much happen now to people who are still living in states where they’re still not allowed to marry.”

“Lesly gave 26 years to FedEx, and she respected the company. It was a point of pride with her to be an outstanding employee. Our family is still experiencing the extreme pain and grief that comes with the death of a wife and mother,” said Schuett. “FedEx should recognize our family, respect Lesly’s decades of service to the company, and honor Lesly’s intention of providing for us even after we lost her.”

On Friday, June 20th, 2014, the Social Security Administration announced that same sex couples entitled to social security benefits.  The agency will expand benefits granted to same sex couples, so that any couple who is legally married can apply for social security benefits.

The Strom Law Firm Can Help with Social Security Benefits Claims

Applying for Social Security Disability or Retirement Insurance can be complex. However, we understand that you need your benefits and we will put our years of experience to work for you to ensure that you have the representation necessary to actively pursue your claim. Call the Social Security Benefits attorneys at the Strom Law Firm today to discuss your Social Security Disability or Supplemental Security Income case today. We will be glad to discuss any questions you may have during our free, confidential consultation. (803)252-4800.