Chase Manhattan Faces EEOC Lawsuit

The Equal Employment Opportunity Commission contends that Chase Manhattan Bank and its insurer are violating the Americans With Disabilities Act by limiting benefits for people with mental disabilities. The federal commission says the New York-based bank and Unum Life Insurance Co. have denied disability pay to employees with mental illnesses after 18 months. The EEOC demands that Chase cover back pay and damages for the 28 employees whose long-term benefits were cut off, according to the federal complaint. The government filed the lawsuit in New York this week on behalf of 28 bank workers who had requested disability benefits. Chase says its employees would pay 30% to 40% more for the same level of insurance coverage if the courts agree with the EEOC. Unum, which administers the bank’s plan for long-term disability, said it would have no comment until it had a chance to review the lawsuit.