• 25
  • July
    2011

How much of a right does an employer have to look into your personal marital status? Not as much as Continental Airlines thinks it had, according to a recent decision from the Fifth Circuit Court of Appeals.

That court recently upheld a lower court's ruling that Continental could not investigate whether its employees had sought divorce for improper reasons. In 2009, Continental sued nine of its pilots - seven men and two women - after it accused them of obtaining "sham divorces." Under federal law, the divorces enabled the pilots' spouses to get access to their lump-sum pensions even while the employee was still working. The pilots were then accused of-remarrying the same spouses. As Continental sees it, the whole thing was a calculated plan to get access to pension funds before retirement.

The pilots, all of whom were fired or resigned, are now suing Continental for wrongful termination and interference with pension rights. An attorney for five of the pilots called the decision a victory for privacy rights because it curtails an employer's right to investigate the marital situation of employees.

If Continental's view of what happened here is correct, it is fair to say that the pilots involved never actually wanted to get divorced. Regardless, this story does bring to mind the fact that determining what a soon-to-be-ex spouse is entitled to in terms of pensions and retirement benefits can be a complicated process. Financial professionals may help with the numbers aspect of things, but it may also a good idea to speak with a family law attorney. He or she will be familiar with your state's laws and can advise you as to what impact those laws have on your personal, specific situation.

Source: ABC News, "Pilots Win 'Sham-Divorce' Case Against Continental," David Koenig, 20 July 2011.