One Manitoba government employee has gone a step further, filing a class action lawsuit against the province and Canada Life. She is appealing the denial of her claim for long-term disability benefits. The employee of Manitoba’s Legislative Assembly since 2014 has been in charge of the Manitoba government’s Legislative Assembly gift shop. She feels her long COVID and chronic fatigue syndrome make it impossible for her to perform her job responsibilities.
By November 2024, she had filed a lawsuit. This move came after Canada Life had denied her claim for long-term disability benefits through a group plan for provincial employees. The full-time employee’s duties were a mix of hands-on culinary work, procurement, supplier meetings, budgeting, general administration, daily sales and deposits, etc. Court filings show that these duties require a good deal of strenuous exercise as well. Sadly, her health no longer allows her to fulfill those duties.
Employee’s Health Challenges
Ever since her diagnosis, the staffer has suffered from debilitating long COVID symptoms, as well as her new chronic fatigue syndrome. The findings of an independent health and rehabilitation specialist (physiatrist) report that she now shows the characteristics of post-viral prolonged recovery. A collection of symptoms including fatigue and brain fog were emphasized, demonstrating a marked effect on her capacity to hold gainful employment.
Out of this medical proof, Canada Life found her claim but then decided that she was still capable of working at a sedentary capacity. The insurer countered that this finding established she was able to carry out her work functions. The plaintiff’s lawsuit counters that Canada Life “arbitrarily and without justification denied her right to the payment of LTD benefits and have done so in a high handed, egregious and cavalier manner.”
Legal and Employer Responsibilities
Emma is the director of brand and client experience at NOVA Injury Law. Here’s her insightful take on what employers should be doing about disability accommodations. She emphasized that employers must ensure they are “clearly explaining the plan’s terms, conditions, and claims procedures to employees.” Edmonds emphasized that providing employees with disabilities reasonable accommodations is both a legal requirement and a moral imperative.
The employee is now facing “severe financial hardship” due to the decision by Canada Life, the lawsuit states. Perhaps most importantly, it acknowledges that the current situation has created “severe trauma and worry.” The denial of the LTD benefits has further compounded the problems the employee is facing. She didn’t want to jeopardize her ability to recover from long COVID, which she’s already grappling with.
Response from Government and Insurer
In response to the lawsuit, the Manitoba government has owned up to their malpractice but refused to speak on the issue further due to active litigation. This long silence is full of questions. How do insurers determine whether to pay disability claims and what standards do they apply in doing so?
As the situation continues to play out in court, it raises a lot of fundamental questions. What are public sector employers doing to manage disability claims and help employees cope with ongoing long-term health issues? What happens in this lawsuit may determine the success or failure of other similar lawsuits going forward.
