How A Merger, Acquisition, Or Layoff Impacts Your Florida Long-Term Disability Benefits

You spent years working for a Florida company, paid into your benefits plan, and assumed your long-term disability (LTD) coverage would be there if you needed it. Then came a merger, an acquisition, or a round of layoffs, and now you’re not sure what happens next.

If you’re dealing with a disabling condition on top of job uncertainty, it’s important to understand how employment changes affect your LTD benefits. Our experienced Jacksonville long-term disability lawyer explains what to watch for and the steps to take.

How Job Loss and Corporate Changes Affect Your Florida LTD Benefits

A June 2026 report from the US Joint Economic Committee shows the Sunshine State lost more than 50,000 jobs the previous year. If you are disabled, collecting LTD benefits, and worried about a job loss or corporate changes, you need to know how it could impact your coverage.

If you were approved for long-term disability before your last day of employment, your benefits typically continue for as long as you remain disabled. However, the Employee Retirement Income Security Act (ERISA) gives employers broad authority to modify or terminate benefit plans. Situations that can put your LTD coverage at risk include:

• A layoff or termination that ends your active employment and eliminates your access to the group plan before you file a claim.
• A merger or acquisition in which the acquiring company switches LTD carriers or restructures the benefits package entirely.
• A reduction in hours that drops you below the minimum eligibility threshold required by your policy, which is often 30 hours per week.
• A severance agreement that contains broad release language waiving your right to pursue ERISA benefit claims, including a pending or future LTD claim.

That last point deserves special attention. If you are dealing with a disabling condition and your employer presents you with a severance package, read it carefully before signing anything.

How to Protect Your Rights to Florida LTD Benefits Amidst Job Uncertainty

Do you have a disabling condition that impacts your ability to work in Florida? If your job situation is uncertain, don’t wait. Once coverage ends, your options narrow significantly.

To protect your rights to Florida LTD benefits during a job transition, take these steps:

• Get a copy of your Summary Plan Description and review coverage terms.
• File your Florida LTD claim before your employment ends.
• Ask your HR department (in writing) about group conversion options and the deadline to apply.
• Have a lawyer review any severance agreement before signing.

Under ERISA Section 510, it is unlawful for employers to terminate an employee specifically to prevent them from filing a long-term disability claim or collecting benefits they have already earned.

Consult Our Experienced Florida Long-Term Disability Lawyer

A job loss is stressful enough on its own. Adding a disability claim to the mix can feel overwhelming. To protect your benefits, contact our experienced Florida long-term disability lawyer.

Farrell Disability Law can review your case, advise you on the options, and fight for what you deserve. Request a consultation today at our Orlando or Jacksonville office.

Sources:

jec.senate.gov/public/index.cfm/republicans/fl/

dol.gov/agencies/ebsa/laws-and-regulations/laws/erisa