Seaman appealed, and the Eleventh Circuit reinstated her lawsuit. The appellate court rejected the district court’s rationale for dismissing the suit, noting that although it is true that future participation in the 401(k) plan and health insurance coverage were not vested, other cases had held that an employer may not discharge employees to prevent them from taking advantage of benefits even if those benefits are not yet vested.
According to the Eleventh Circuit, “The validity of a section 510 claim does not hinge upon whether the benefits involved are vested but upon the purpose of the discharge. A plaintiff must show that the employer had the specific intent to interfere with the employee’s right to benefits. This standard does not require the plaintiff to show that interference with ERISA rights was the sole reason for discharge but does require the plaintiff to show more than the incidental loss of benefits as a result of a discharge.”