KC steel company illegally obtained medical records during COVID-19, lawsuit claims
A federal lawsuit brought by a former director with Kansas City’s Steel Ventures, LLC, or EXLTUBE, claims the company violated state and federal privacy laws by obtaining employees’ sensitive medical information for the purpose of mitigating exposure to COVID-19 and seeking to avoid a loss of profits.
The civil lawsuit, filed in the Western District of Missouri last November, is headed for a bench trial next month. It was brought by Micah Morrison, a 10-year employee and former operations director at EXLTUBE, who alleges the company fired him after he raised concerns.
Named in the lawsuit are parent company SPS Companies, Inc., Steel Ventures, LLC and four higher up employees. Defense lawyers representing those parties did not immediately reply to The Star’s request for comment. But in court filings, lawyers have denied the company “engaged in any wrongful or unlawful conduct whatsoever.”
In March 2020, Morrison received an email that showed the company had “secretly and without authorization obtained the confidential health information” of employees and their spouses and children, the lawsuit alleges. It further alleges the company’s goal was to target employees who were at high risk for COVID-19 and encourage them to stay home from work and use vacation leave.
The medical information was obtained from Blue Cross Blue Shield of Kansas and violated state and federal privacy laws including HIPAA, the lawsuit claims.
The lawsuit contends the company could have informed all employees that those with higher risk for severe COVID-19 exposure could take leave, but “did not do so because they were fearful that too many employees would request leave or accommodations,” resulting in diminished operations and profits.
The company is a wholesale distributor that oversees roughly 650 employees, according to the lawsuit. Its services include residential and commercial plumbing, mechanical and industrial piping, and fire protection.
Morrison claims he reported his concerns to other supervisors and his own human resources representative. He says he was fired in July, claiming the company retaliated against him for raising the issue.
This story was originally published November 18, 2021 at 4:41 PM.
