Discrimination Lawsuit Challenges Nebraska Firm Termination
The case forces operators to reexamine how self-funded insurance plans influence personnel and severance decisions.
Updated on Oct. 25, 2026 in Human Resources
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Former DNA Genetics COO Delwyn Birkhofer has filed a federal discrimination lawsuit against his former employer and parent company Pillen Family Farms. The suit alleges his 2025 termination was driven by discriminatory motives related to his granddaughter's health and his own age.
Why it matters
The case highlights the operational risks businesses face when managing self-funded insurance plans, where high-cost health claims can create perceived conflicts with personnel decisions. It serves as a reminder of the strict federal protections governing employee benefit administration and nondiscrimination in hiring and termination.
The lawsuit involves a 61-year-old executive who served as COO from 2021 to 2025, during which time the company utilized a self-funded health insurance plan. The plaintiff seeks various damages including back pay and punitive awards following his termination without severance.
The players
Delwyn Birkhofer
The former Chief Operating Officer of DNA Genetics who served from 2021 to 2025.
DNA Genetics
A livestock genetics firm owned by Pillen Family Farms that utilizes a self-funded health insurance model.
Pillen Family Farms
The parent organization of DNA Genetics that operates within the agricultural sector.
The details
Birkhofer alleges that after disclosing his granddaughter's February 2025 diagnosis to the co-CEOs, his termination in May was a strategic move to avoid rising costs associated with the company's self-funded health plan. The complaint asserts that this action, alongside the denial of severance, violated the Genetic Information Nondiscrimination Act and the Employee Retirement Income Security Act. The case focuses on whether the employer's health insurance obligations influenced the decision to end the employment contract.
Timeline
April 2021: Delwyn Birkhofer joined as COO.
February 2025: Granddaughter diagnosed with a genetic blood disorder.
May 1, 2025: Birkhofer was terminated.
October 24, 2026: The lawsuit was filed.
Market Landscape
This case underscores the tension between corporate cost-control measures and federal mandates like the Genetic Information Nondiscrimination Act. It illustrates the growing legal scrutiny placed on how self-funded insurance structures intersect with employment-termination decisions.
Operators must ensure that termination decisions remain strictly grounded in performance metrics and are documented to avoid any appearance of bias regarding employee health claims. Reviewing current severance policies and ERISA compliance is essential to mitigate litigation risk in self-funded models.
The takeaway
Employers using self-funded insurance plans should audit their procedures to ensure personnel decisions are isolated from health plan utilization metrics. Counsel should be engaged to review how severance protocols and termination meetings are documented to ensure compliance with federal nondiscrimination standards.
Further reading
For broader context on managing compliance risks in benefits administration, see the Human Resources section.
Source note: This article includes information reported by Nebraska Public Media.
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