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Plaintiffs brought a class action complaint alleging that our client breached its employee handbook with regard to payment of benefits relating to Continued Illness Bank balances upon an employee retiring after 25 years of service.
VERDICT: District Court granted summary judgment for our client recognizing that the client’s employee handbook did not constitute a standardized group employment contract, that the Continued Illness Pay-Out Benefit was not deferred compensation or wages under the Montana Wage Act, and that the employer was permitted to make changes to the handbook without violating the covenant of good faith and fair dealing. Lower court decision affirmed by Montana Supreme Court on Appeal.
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