HP Hit with Worker Benefit Suit

March 24, 2005 (PLANSPONSOR.com) - More than 3,000 people who worked at Hewlett-Packard Co. for outside contractors or temporary staffing agencies have sued the computer maker for wrongly denying them benefits.

According to a report in Business Insurance, the federal court lawsuit filed in Boise, Idaho alleges that the workers were wrongly given contract or contingent employee status. The suit seeks class-action status.

The suit said that due to the misclassification, the employees were deprived of benefits such as health insurance, employee stock options, 401(k) and other pension plans. The suit seeks retroactive and prospective benefits and compensation, as well as attorney fees and litigation expenses.

A spokeswoman for the Palo Alto, California based company said the lawsuit is without merit, Business Insurance reported.