Former Trump casino drops workers’ health insurance

New Jersey insurance agents to target employees of Trump Taj Mahal in Atlantic City

Insurance News

By Lyle Adriano

An appeals court ruled on Jan. 15 that the Trump Taj Mahal casino was within its rights to discontinue providing health insurance and pension benefits to its workers.

Trump Entertainment Resorts Inc. filed for bankruptcy last October and ended its benefits as part of the insolvency process. The company argued that it could no longer afford to provide the benefits.

Republican presidential candidate Donald Trump founded the company, but he no longer owns or controls it.

Unionized workers under Unite Here Local 54 appealed, arguing that a bankruptcy court judge did not have the jurisdiction to determine whether or not a company could end worker benefits. The court, however, ruled in favor of the company.

Despite filing for bankruptcy, Trump Entertainment Resorts managed to give its workers stipends to allow them to purchase insurance on the open market, including coverage through the ACA.

Activist investor Carl Icahn is acquiring the casino from insolvency. He had been financially supporting the casino for more than a year. If the court ruling went against him, he would have cut off funding to the casino and force the establishment to close.

Thanks to the current ruling, Icahn is free to take the casino without issue.

Keep up with the latest news and events

Join our mailing list, it’s free!