Employee Benefits Plus, Inc. v. Des Moines General Hospital

Employee Benefits Plus, Inc. v. Des Moines General Hospital (1995)

This case involved a dispute between Employee Benefits Plus (EBP), a company that provides workplace benefit seminars, and Des Moines General Hospital. EBP claimed the hospital made an oral agreement to hire them to conduct employee benefit seminars and provide benefit statements to hospital workers. However, the hospital later prevented EBP from fulfilling their part of the deal and refused to pay for the services.

The Iowa Court of Appeals ruled in favor of Employee Benefits Plus. The court found that even though the agreement was made verbally (not in writing), it was still a valid, binding contract between the two parties. The court determined that Des Moines General Hospital had breached this contract by blocking EBP from completing the work they were hired to do. As a result, the hospital was ordered to pay $38,000 in damages to EBP.

This ruling matters for workers because it shows that employers can be held legally responsible when they make agreements about employee benefits and then fail to follow through. It also demonstrates that verbal contracts can be legally enforceable, protecting service providers who work with employers on workplace benefit programs.