Employer-Sponsored Health Plan Federal Regulation: ACA, COBRA, ADA, GINA, CAA, MHPAEA, Reporting Requirements - Roberta Casper Watson and Dannae Delano, panelists, Strafford, live CLE webinar,...
Content Type
How to Legally Handle Bad Egg Employees
How to Legally Handle Bad Egg Employees - Katherine Brustowicz, panelist, National Business Institute live, online, HR-credit seminar, December 22, 2021, 11:00 AM - 6:00 PM (EST) - Register here
DOL Investigations of Employee Benefit Plans: Responding to Enforcement Actions, Audits, and Settlements
DOL Investigations of Employee Benefit Plans: Responding to Enforcement Actions, Audits, and Settlements November 11, 2021
The Wagner Law Group Grows L.A. Office With the Addition of Attorney Zachary Meth
Department of Labor Provides Temporary and Limited Relief to Investment Advice Fiduciaries
On October 25, the DOL issued a temporary enforcement policy related to Prohibited Transaction Exemption (“PTE”) 2020-02, an exemption for investment advice fiduciaries with respect to employee...
RIAs May Face Ticking Time Bomb After SEC Slams a $1.9-billion RIA for Neglecting ‘Orphan’ Accounts While Charging Fees, a Problem that may be Industrywide
RIAs May Face Ticking Time Bomb After SEC Slams a $1.9-billion RIA for Neglecting 'Orphan' Accounts While Charging Fees, a Problem that may be Industrywide - Ari Sonneberg, RIABiz, October 27, 2021
UPDATE: Does Your Plan use a LIMITED SCOPE AUDIT for Form 5500 Financial Reporting?
UPDATED October 27, 2021 - Originally published August 13, 2019. There has been a significant new development for employee benefit plan administrators of large plans who opt for a "limited scope...
Further Thoughts on the DOL’s Informal Guidance on Cybersecurity
As described in our May 3, 2021 Alert, the Department of Labor’s (“DOL’s") informal guidance left many unanswered questions on cyber breaches involving the theft of assets in a participant’s...
DOL Drops ‘Bomb’ On Advisors Who Give Advice To IRA Owners
DOL Drops ‘Bomb’ On Advisors Who Give Advice To IRA Owners - Km Shaw Elliott, InsuranceNewsNet, October 22, 2021
EEOC Issues COVID FAQs
The EEOC has issued Frequently Asked Questions (“FAQs”) on the enforcement of various Equal Employment Opportunity (“EEO”) laws with regard to COVID. These laws include the Americans with...
Department of Labor Issues Proposed Changes to Investment Duties Rule Under ERISA
The much-anticipated revised Investment Duties regulation drops ERISA fiduciaries into 21st century investment decision making, freeing fiduciaries to consider all relevant facts and circumstances...
What Mandatory Auto-Enrollment IRAs Actually Mean
What Mandatory Auto-Enrollment IRAs Actually Mean - Izzy Goldowitz, Mark Greenstein and Jon Schultze, 401(k) Specialist, October 16, 2021 (PDF)
Merging Global and Local U.S. HR Functions and Outsourcing Initiatives
Merging Global and Local U.S. HR Functions and Outsourcing Initiatives - David Gabor, Lorman HR-credit webinar, October 13, 2021, 1:00 - 2:00 PM (EDT) - Click here for details
So, You Are a Wealth Manager and You Think ERISA Does Not Impact Your Rollover Advice to IRA Owners? Think Again. Now.
New interpretations voiced in the Department of Labor’s (“DOL”) Prohibited Transaction Exemption 2020-02 (the “Investment Advice PTE”) could be a bomb that hits squarely on unwary wealth managers...
Bankruptcy And Restructuring Practice Area Description
Employee Stock Ownership Plans (ESOPs) Practice Area Description
Investment Management Practice Area Description
The National Association of REALTORS®, et. al.
The Coalition to Protect and Promote Association Health Plans joined with AssociationHealthPlans.com
Private Determination Letter Program
Congress Considers Mandatory Auto-Enrollment IRAs
All eyes are on Congress as it wrestles with a $1 trillion infrastructure bill and a $3.5 trillion budget reconciliation bill. The House Ways and Means Committee markup of the reconciliation bill...
HIPAA Privacy and COVID-19 Vaccinations
The Department of Health and Human Services (“HHS”), in a series of Qs & As, has stated that the HIPAA Privacy Rules do not prohibit covered entities and business associates from asking whether...
Retirement Industry People Moves
Retirement Industry People Moves - PLANSPONSOR, October 1, 2021
Pooled Employer Plans
What Employers Need to Know About Biden’s COVID-19 Action Plan and Vaccine Mandate
President Biden recently issued a six-pronged action plan that requires vaccines for employees of federal contractors and employers with 100 or more employees, and an executive order requiring all...
Court Finds “No Harm No Foul” Where Employee Fails to Show She Suffered Harm from FMLA Violation
The U.S. District Court of Montana, in Jergens v. Marias Medical Center, has dismissed an employee’s claim for FMLA violations by her former employer because the employee failed to show that she...
Asset Manager Mergers Can Warrant Fresh Looks From Plan Sponsors
Asset Manager Mergers Can Warrant Fresh Looks From Plan Sponsors - Stephen Wilkes, Bloomberg Law, September 22, 2021
The DOL’s New Cybersecurity Audits and Informal Guidance
Recently, the Department of Labor (“DOL”) has become highly focused on the cybersecurity practices of plan sponsors and their service providers. Perhaps in response to the growing number of ERISA...
Do You Have Questions About How To Comply With The New DOL Fiduciary “Investment Advice” Prohibited Transaction Exemption? Part 2
Recordkeeper Consolidation: Plan Sponsor 30-Minute Special Briefing
Recordkeeper Consolidation: Plan Sponsor 30-MinuteSpecial Briefing - Stephen Wilkes, Institutional Investment Consulting free webcast, September 14, 2021 - Click Here for details and registration
Court Decision Highlights Importance of Complying with ERISA’s “Other Instruments Rule” for Document Disclosures
The U.S. District Court of Utah has confirmed, in M.S. v. Premera Blue Cross, that a plan administrator for a self-insured group health plan violated ERISA’s disclosure requirements in its response...
IRS Guidance for Plan Sponsors on ARPA’s Effect on Funding for Plan Years 2020 and 2019
As we advised in Important Benefit Plan Provisions of the American Rescue Plan Act of 2021, in the American Rescue Plan Act of 2021 (ARPA), Congress provided funding relief for single-employer...
Look Beyond the Label when Exploring ESG Investment Options
Look Beyond the Label when Exploring ESG Investment Options - Thomas Clark, Jr., Lord Abbot, September 9, 2021
IRS Releases ACA Affordability Rates for 2022
The Internal Revenue Service has issued Revenue Procedure 2021-36 to implement the 2022 index adjustments for certain Affordable Care Act (“ACA”) contribution percentages used to determine...
Creating Effective Diversity, Equity, and Inclusion Initiatives
Creating Effective Diversity, Equity, and Inclusion Initiatives - David Gabor and Katherine Brustowicz, Clear Law Institute CLE and HR-credit webinar, September 8, 2021, 1:00 - 2:15 PM (EDT) - Click...
AD&D Plan Not Subject to State Health Insurance Law
The U.S. Court of Appeals for the Eighth Circuit has ruled, in Williams v. Unum Life, that a state law regulating health insurance policies does not apply to an accidental death and dismemberment...
Do You Have Questions About How To Comply With The New DOL Fiduciary “Investment Advice” Prohibited Transaction Exemption? Part 1
IRS Updates Guidance Regarding Correction of Tax-Qualified Plan Errors under the Employee Plans Compliance Resolution System (EPCRS)
Mistakes happen, even with respect to tax-qualified plans and 403(b) plans that have implemented internal controls designed to reduce, if not eliminate, the likelihood of plan failures. Under the...
Mental Health Parity is Finally Being Enforced
On August 12, 2021, the U.S. Department of Labor (“DOL”) issued a press release regarding a groundbreaking settlement reached with United Healthcare Insurance Co., United Behavioral Health and...
Employer’s Leave Policies Required It to Provide Paid Military Leave
The Third Circuit Court of Appeals has ruled, in Travers v. Federal Express, that the Uniformed Services Employment and Reemployment Rights Act (“USERRA”) requires employers to provide paid leave to...
FSA Debit Card Substantiation Rules
The IRS has released Information Letter 2021-0013 to reconfirm the substantiation rules for debit card use in health care flexible spending account plans (“FSAs”). Law. Health care FSAs may issue...
What Do Advisors Absolutely Need to Know About ERISA-Related Issues?
What Do Advisors Absolutely Need to Know About ERISA-Related Issues? Marcia Wagner Explains - 401(k) Specialist, August 9, 2021
Prepare Clients for a Litigious 401(k) Environment
Prepare Clients for a Litigious 401(k) Environment - Jordan Mamorsky, AccountingWeb, August 4, 2021
IRS Sheds Some Clarity on COBRA Premium Assistance
The American Rescue Plan Act of 2021 (ARPA) provides for a six-month period between April 1, 2021 and September 30, 2021, during which certain participants eligible for COBRA continuation coverage...
Some Additional Standing Issues Under ERISA
SEC Extracts $96M Settlement from TIAA Subsidiary for Rollover Practices – This is Only the Beginning
The Securities and Exchange Commission (“SEC”) beat the Department of Labor (“DOL”) to the punch and announced a major settlement with a broker dealer arising from its rollover practices. In what is...
Court Settles Dispute When Employer Switches LTD Insurer
The Fifth Circuit Court of Appeals has determined, in Talamantes v Metropolitan Life Insurance Company, that a long-term disability (“LTD”) insurer was responsible for benefit payments even though a...
Agencies Issue Regulations Restricting Surprise Billing
The Biden administration, through HHS, DOL, IRS and the Office of Personnel Management (collectively, the “Agencies”), issued an interim final rule that aims to restrict excessive out-of-pocket...
Court Rejects Health TPA’s Cross-Plan Offsetting Practice
The U.S. District Court for the District of New Jersey, in Lutz Surgical Partners PLLC v. Aetna, Inc., has ruled that a group health plan administrator (“TPA”) cannot offset overpayments made to a...
Best Practices for Promoting a Positive Work Environment for Multigenerational Workforces
Recording available here
DOL Says Claimant May Request Phone Call Recordings Relevant to Benefits Claim
The DOL has stated in a June 14, 2021 Information Letter, that under ERISA claims procedures, a participant must be given audio recordings of telephone conversations that are relevant to his claim...
Court Says No Specific Wording Required in Plan Document to Give Plan Discretionary Claims Authority
The Second Circuit Court of Appeals, in Tyll vs. Black and Decker Life Insurance Program, has ruled that a plan document is not required to use any specific language in order to give the plan...
IRS Announces 2022 HSA and HRA Limits
The IRS has announced the 2022 calendar year dollar limits for health savings account (“HSA”) contributions, the minimum deductible amounts and maximum out-of-pocket expenses for high deductible...
Primer on the Code’s Required Minimum Distribution Rules: Post-SECURE Act
Court Confirms Participant Must Exhaust Administrative Remedies Before Filing a Suit
The U.S. District Court for the Southern District of New York, in Benson vs. Tiffany and Company SPD, has ruled that a participant in an ERISA-governed group health plan may not proceed with her...
Do You Have Questions About How To Comply With The New DOL Fiduciary “Investment Advice” Prohibited Transaction Exemption? Part 2
Liability-Driven Investing and Other De-risking Strategies for Pension Plans
View Printable PDF This practice note discusses defined benefit plan de-risking techniques that defined benefit plan sponsors can use to manage the volatility inherent in defined benefit plan...
US Department of Labor Announces New Cybersecurity Guidance for Plan Sponsors, Plan Fiduciaries, Record-Keepers and Plan Participants
View Printable PDF
IRS Finally Releases Guidance Implementing COBRA Subsidies but Leaves Important Questions Unanswered
On May 18, 2021, the IRS issued Notice 2021-31 providing highly anticipated guidance for employers who must implement the COBRA rules under ARPA (as we described in our publication on March 17,...
Attorney Chrisotopher Suh Joins The Wagner Law Group
Must Death Distributions Under 10-Year Rule Be Taken Annually?
By Kimberly Shaw Elliott and Barry Salkin New Pub 590B Prompts Surprise Just in the nick of time for filing 2020 federal income tax returns, the IRS issued a revised Publication 590-B (2020),...
Employer Has Separate Obligations Under Workers’ Compensation and FMLA
The U.S. Court of Appeals for the Eleventh Circuit has ruled, in Ramji vs. Hospital Housekeeping Systems, that complying with the state’s workers’ compensation laws does not absolve an employer from...
Court Finds Project Completion Incentive Plan Not an ERISA-Covered Severance Plan
The U.S. Court of Appeals for the Fifth Circuit has ruled in Atkins vs. CB&I, LLC, that a Project Completion Incentive (“PCI”) plan which offered a bonus to employees upon termination of...
IRS Says Personal Protective Equipment Expenses are Qualified Medical Expenses
The IRS has issued Announcement 2021-7, which confirms that personal protective equipment (“PPE”) such as masks, hand sanitizer, and sanitizing wipes purchased “for the primary purpose of preventing...
Court Says Group Health Plan May Not Exclude Specified Autism Treatments
The District Court for the Northern District of California has ruled, in Doe v. United Behavioral Health, that the exclusion of certain specified procedures related to the treatment of autism...
American Rescue Plan Act Extends Tax Credits for COVID-19 Leave
On March 11, 2021, President Biden signed into law the American Rescue Plan Act of 2021 (“ARPA”). Among other provisions aimed at economic recovery, ARPA extends employer tax credit opportunities...
Important Benefit Plan Provisions of the American Rescue Plan Act of 2021
By Dannae Delano, Israel Goldowitz, Barry Salkin and Roberta Casper Watson Although not the primary focus of the American Rescue Plan Act of 2021 (“ARPA”) and, at least with respect to the...
How to Ensure Pay Equity for People of Color
How to Ensure Pay Equity for People of Color - David Gabor, SHRM HR Magazine, Spring 2021, March 11, 2021
Court Says Welfare Plan Fiduciary Breached Duties by Misusing Participant Contributions
A federal district court in the Western District of Virginia has held, in Hammer v. Johnson Senior Ctr., that the fiduciary for a welfare plan violated its duties of loyalty, care and prudence by...
Surprise DOL Guidance on Conclusion of One-Year ERISA Compliance Relief Period
By Dannae Delano and Barry Salkin Even with widespread bipartisan support, it can be difficult to draft legislation to address all possible contingencies. In the wake of the events of September 11,...
COVID-19 Resource Center
Below is a collection of vital COVID-19 resources that we have assembled to assist during this difficult time: ANNOUNCEMENTS The Wagner Law Group Creates COVID-19 Rapid Response Team and Resource...
IRS Guidance on Flexible Spending Account Relief Under CAA
The IRS has issued Notice 2021-15 (“Notice”) to provide clarification on the flexible spending account (“FSA”) relief contained in the Consolidated Appropriations Act, 2021 (“CAA”). The Notice also...
Employer Failed to Adequately Notify Participant of Group Life Insurance Conversion Rights
The Ninth Circuit Court of Appeals, in Estate of Foster v. American Marine Servs. Group Benefits Plan, has held that an employer failed to provide a former employee with adequate notice of the...
CMS Creates Additional Marketplace Special Enrollment Period
The Centers for Medicare & Medicaid Services (“CMS”) has determined that the COVID-19 emergency presents exceptional circumstances for consumers in accessing health insurance, and will be...
EEOC Explains Application of ADEA to ICHRAs
On January 7, 2021 the Equal Employment Opportunity Commission (“EEOC”) issued an opinion letter explaining the application of the Age Discrimination in Employment Act (“ADEA”) to individual...
Disclosure to Welfare Plan Participants: A Fiduciary Duty
View Printable PDF Introduction When ERISA was enacted in 1974, its primary focus was on employee pension plans, which is understandable since its enactment was a response to highly publicized...
Staying One Step Ahead: Advice for Employers in Addressing Anticipated Biden Administration Actions in the Employment Arena
Recording Available Here
FAQs Discuss Expiration of Paid Sick and Family Leave Requirements
The Department of Labor has issued additional FAQs regarding the expiration of the requirement that employers provide paid sick and family leave under the Families First Coronavirus Response Act...
Do You Have Questions About How to Comply with the New DOL fiduciary “Investment Advice” Prohibited Transaction Exemption?
By Stephen Wilkes and Susan Rees On December 15, 2020, the Department of Labor (DOL) issued class exemption 2020-02 (the PTE or Exemption) which provides conditional relief to fiduciaries who render...
Does the Recently Amended Investment Duties Regulation Change How Fiduciaries Are Expected to Make Investment Decisions for Employee Benefit Plans?
Introduction The more things change the more they stay the same. Or do they? This question should be on every employee benefit plan fiduciary’s mind after January 12, 2021, when an amended U.S....
DOL’s Proxy Voting Regs Confirm Fiduciaries Need Not Vote on Every Proxy Proposal but Must Limit Voting Decisions to Economic Interests
By Kim Shaw Elliott The Department of Labor (“DOL”) issued final regulations on December 11, 2020 about fiduciary duties for proxy voting, in its attempt to clarify many prior misunderstandings. Key...
EEOC Issues Proposed Regulations on Employer Wellness Programs
The Equal Employment Opportunity Commission (“EEOC”) has issued two sets of proposed regulations that would change certain rules on how employer-sponsored wellness programs that require employees to...
DOL Clarifies Use of Telemedicine for Purposes of FMLA Leave
The Department of Labor (“DOL”) has issued Field Assistance Bulletin (“FAB”) 2020-8 to provide guidance regarding the use of telemedicine in establishing a “serious health condition” under the...
The Wagner Law Group Announces New Florida Estate Planning Resources
Update to Connecticut Paid Family Medical Leave Act
Our January 6, 2021 law alert, An Overview of New Laws Impacting Employers in 2021, indicated that the Connecticut Paid Family Medical Leave Act (PFMLA) is effective July 1, 2021. The Connecticut...
Stimulus Package Makes Major Changes with Respect to Employer Sponsored Benefit Plans
By Dannae Delano, Barry Salkin and Roberta Casper Watson In a year-end piece of legislation intended to fund the federal government, especially one that is 5,593 pages in length, there is always the...
Significant Changes to Payroll Protection Program Made Under Consolidated Appropriations Act, 2021
One of the significant components of last year’s Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was the Payroll Protection Program (“PPP”) which was intended to provide relief for...
DOL Field Assistance Bulletin for FMLA Electronic Notices
The Department of Labor (“DOL”) has issued Field Assistance Bulletin (“FAB”) 2020-7 to provide guidance on when, as a matter of enforcement policy, it will consider the electronic posting of the...
An Overview of New Laws Impacting Employers in 2021
As we usher in 2021, we should be mindful of new laws impacting the employer-employee relationship. Changes include increases to state minimum wage rates, the end of mandated FFCRA leave,...
Benefits Plan Sponsors Face A Tough Year On Compliance
View Printable PDF Given the chaos of 2020, many ushered in the new year with open arms. The pandemic, remote work and changing needs have created unique and novel challenges that have necessarily...
IRS Issues Final Regulations Under Code Section 162(m)
By Barry Salkin and Mark Poerio Section 162(m) of the Internal Revenue Code (“Code”) denies a deduction to a publicly held corporation for remuneration paid to a covered employee in any taxable year...
Arkansas Pharmacy Law Not Preempted by ERISA
In Pharmaceutical Care Management Association v. Rutledge, the U.S. Supreme Court has held that ERISA does not preempt an Arkansas statute that imposes rules on pharmacy benefits managers (“PBMs”)....
Equal Employment Opportunity Commission Issues Guidance Regarding COVID-19 Vaccinations
On December 16, 2020, the Equal Employment Opportunity Commission (the “EEOC”) updated and expanded its technical assistance publication by adding a new section about how required COVID-19...
Agencies Issue Final Grandfathered Group Health Plan Regulations
The Department of Labor, Department of Health and Human Services, and the IRS (collectively, the “Agencies”) have issued final regulations providing greater flexibility to plan sponsors that wish to...
Attorney Jay Beskin Joins The Wagner Law Group
IRS New Guidance on State Unclaimed Property Laws and IRS Helpful Reminders on Missing Participants
View Printable PDF By Susan Rees and Seth Gaudreau After years of public commentary, the Internal Revenue Service (IRS) addresses, for the first time, whether a plan should withhold income tax when...
IRS Explains “Qualified Health Plan Expenses” for Purposes of FFCRA Tax Credit
The IRS has issued FAQs to help employers determine the amount of “qualified health plan expenses” for purposes of determining their tax credit under the Families First Coronavirus Response Act...
IRS Confirms Options for Unused Qualified Transportation Benefits Due to COVID-19
Facts. The IRS released Information Letter 2020-0024 in response to an inquiry it received from a qualified transportation plan participant with unused transit benefits due to COIVD-19. In...
PEPs Will be Up and Running by January 1, 2021
View Printable PDF On November 16, 2020, the U.S. Department of Labor (DOL) issued a final rule at 85 Federal Register 72934, providing an electronic filing procedure for interested entities to meet...
2021 Medicare Parts A & B Premiums and Deductibles
The Centers for Medicare & Medicaid Services (“CMS”) has announced the deductibles, premiums and coinsurance amounts for Medicare Part A and Part B for 2021. Medicare Part A covers inpatient...
Agencies Issue Final Regulations Regarding Health Care Transparency
By Barry L. Salkin, Roberta Casper Watson, and Dannae Delano Last June, in Executive Order 13877, President Trump directed HHS, Treasury, and Labor (collectively, the “Agencies”) to solicit comments...
Agencies Issue Guidance on Coronavirus Diagnostic Testing and Immunizations
Section 6001 of the Families First Coronavirus Response Act (FFCRA) required group health plans and health insurance issuers to provide coverage for certain items and services including in vitro...
IRS Releases 2021 Welfare Benefit Plan Limits: Health FSA and HSA Limits Increase
The IRS has released Revenue Procedures 2020-45 and 2020-32, which set forth the 2021 inflation-adjusted limits for certain employee welfare benefit plans and the dollar amounts used for certain...
Presidential Memorandum Stirs Long-Simmering Pension Issues
Employee benefits law often involves interaction between Congress, the Executive Branch, and the courts. That calls for an understanding of the politics of law reform and regulation. A recent...
IRS Announces Cost-of-Living Adjustments Affecting Retirement Plans
The Internal Revenue Service announced cost-of-living adjustments affecting certain dollar limitations for pension plans and other retirement-related limitations for 2021 in Notice 2020-79. The...
Hiring and Promotions: Tips To Help Employers Avoid Legal Minefields
Recording Available Here
Courts Decides ACA’s Individual Out-Of-Pocket Limits Do Not Apply Retroactively
The U.S. District Court for the Southern District of New York, in Fisher v. Aetna Life Ins. Co., has upheld its prior determination that a beneficiary was required to meet the ACA’s family...
Courts of Appeal Split on Circumstances Where it is Appropriate to Override the Arbitrary and Capricious Standard of Review
The U.S. Court of Appeals for the Eighth Circuit has ruled, in McIntyre v. Reliance Standard Life, that a claims decision will be judged under the arbitrary and capricious standard despite the fact...
Court Says Third Party Administrator May Be Held Liable for ERISA Fiduciary Breach and Consumer Fraud in Connection With Abbott Plan Data Breach
Another court has decided which ERISA plan fiduciaries can be held liable in connection with a data breach of a plan participant’s account. On October 2, 2020, the Northern District of Illinois, in...
IRS Again Extends Deadline for ALEs to Furnish ACA Reporting Forms to Employees
The IRS has issued Notice 2020-76, which provides an automatic deadline extension for Applicable Large Employers’ (“ALE”) reporting obligations to employees under the Affordable Care Act’s (“ACA”)...
Federal Contractors and Diversity and Inclusion Training
On September 22, 2020, President Trump issued an Executive Order (the “Order”) stating that companies doing business with the federal government (“Federal Contractors”) are barred from promoting...
The Wagner Law Group Asks DOL for Cybersecurity Guidance
By Stephen Wilkes and Livia Quan Aber We previously discussed cybersecurity best practices and provided the latest updates on recent ERISA cybertheft lawsuits here and here. With the proliferation...
Plan Participants Must be Informed of Plan Documents and Standards of Review
The Tenth Circuit Court of Appeals has ruled, in Lyn M. v. Premera Blue Cross, that the “arbitrary and capricious” standard cannot be applied to a plan administrator’s denial of a participant’s...
DOL Lifetime Income Disclosure Regulation
By Barry Salkin and Roberta Casper Watson In 2019, the SECURE Act amended Section 105 of ERISA. That section requires participant benefit statements to be distributed to participants and...
Employer May Be Held Liable for Service Provider’s Error
The Second Circuit Court of Appeals, in Sullivan-Mestecky v. Verizon Communications, Inc., has held that a plaintiff properly pled her breach of fiduciary duty claim for equitable relief against an...
DOL Responds to Decision of Southern District of New York Invalidating Four Provisions of the Family First Coronavirus Response Act
By Dannae Delano, Barry Salkin and Roberta Casper Watson On August 3, 2020, the District Court for the Southern District of New York ruled that four parts of the temporary rules adopted by the DOL...
Additional COVID-19 FAQs from the DOL About School Reopenings
The Department of Labor (“DOL”) has issued additional Frequently Asked Questions (“FAQs”) on the administration of Emergency Paid Sick Leave under the Families First Coronavirus Response Act...
IRS Issues Guidance on Qualified Birth or Adoption Distributions
View Printable PDF By Barry Salkin and Livia Quan Aber In 2020, most of the IRS guidance with respect to employee benefit plans has addressed issues arising under the CARES Act, but in recently...
Massachusetts Extends Annual Payroll Tax Exemption for Insured Plans
The Massachusetts Department of Family and Medical Leave has announced that the “annual” payroll tax exemptions received by employers for insured plans under the Paid Family and Medical Leave Law...
Ninth Circuit Rejects Request for Attorney’s Fees in ERISA Administrative Appeal
The Ninth Circuit Court of Appeals has held, in Castillo v. Metropolitan Life Ins. Co., that ERISA does not authorize an award of attorney’s fees incurred during the administrative phase of the...
DOL Issues Proposed Regulations Establishing Registration Requirement for Pooled Plan Providers
By Barry Salkin and Susan Rees One objective of the Setting Every Community Up for Retirement Enhancement (“SECURE”) Act, which was enacted on December 20, 2019, was to expand retirement savings....
IRS and PBGC Provide Guidance on CARES Act Relief for Funding of Single Employer Defined Benefit Plans
By Barry Salkin and Livia Quan Aber One objective of the Coronavirus Aid Relief and Economic Security Act (“CARES Act”) was to provide relief to sponsors of tax-qualified defined benefit plans....
DOL Releases New FMLA Forms
The U.S. Department of Labor (“DOL”) has released updated Family and Medical Leave Act (“FMLA”) forms. Background. Certain posters and forms are required under the FMLA to inform employees of their...
August 31, 2020 IRS Deadlines Approaching
By Jon C. Schultze and Kimberly Shaw Elliott An August 31, 2020, deadline to take advantage of temporary relief provided by the Internal Revenue Service (“IRS”) to (i) individuals, and (ii) sponsors...
Federal District Court Invalidates Portions of the Final DOL Rules Implementing the Paid Leave Provisions of the Family First Coronavirus Response Act (FFCRA)
By Dannae Delano, Barry Salkin and Roberta Casper Watson The federal District Court for the Southern District of New York invalidated parts of the DOL’s final rules implementing the paid leave...
Proposed Changes to DOL Fiduciary Investment Regulation: What You Should Know and How The Wagner Law Group Responded
By Barry Salkin and Stephen Wilkes The Department of Labor (“DOL”) is poised to significantly change its rules on how ERISA plan fiduciaries should evaluate investment opportunities. The employee...
Divorce in the Age of Corona, Part 1: Parenting Plans
Parents who were in the midst of the divorce process when the pandemic began, or who have only recently decided to separate, recognize that the parenting arrangements they develop for today may not...
Employees May Choose Between Profit Sharing Plan and HRA Contributions
In Private Letter Ruling 202023001, the IRS has ruled that collectively bargained employees can allocate employer contributions between a profit sharing plan and a health reimbursement arrangement...
Do Employers Need COVID-19 Waivers?
Employers who are considering resuming their operations (or employers who have already resumed operations) should consider the benefits of putting in place a COVID-19 waiver for employees and...
IRS Releases ACA Affordability Rates for 2021
The Internal Revenue Service has issued Revenue Procedure 2020-36 to implement the 2021 index adjustments for certain Affordable Care Act (“ACA”) contribution percentages used to determine...
Additional COVID-19 FAQs from the DOL
The Department of Labor (“DOL”) has issued additional Frequently Asked Questions (“FAQs”) on the administration of Emergency Paid Sick Leave (“EPSL”) and Emergency Family and Medical Leave (“EFMLA”)...
Independent Analysis of EEO-1 Component 2 Pay Data
On July 16, 2020, the U.S. Equal Employment Opportunity Commission (EEOC) announced that it is funding an in-depth statistical analysis on the EEO-1 Component 2 pay data collected for FY 2017 and...
Agencies To Provide More Flexibility for Grandfathered Group Health Plans
The Department of Labor, Department of Health and Human Services (“HHS”), and the IRS (collectively, the “Agencies”) have issued proposed regulations that would provide greater flexibility for plan...
What You Need to Know About the SEC’s New Form CRS
On June 30, 2020, the Securities and Exchange Commission’s (“SEC”) new “relationship summary,” known as Form CRS, took effect. Form CRS — which broker-dealers and SEC-registered investment advisers...
The Wagner Law Group Receives IRS Approval of its Defined Contribution Plan
The Wagner Law Group is pleased to announce that we have received IRS approval of our non-standardized defined contribution plan document, further bolstering our firm’s position at the forefront of...
The DOL’s Final Regulations on E-Disclosure of Retirement Plan Documents Become Effective Soon – Are You Ready?
By Livia Q. Aber and Barry Salkin In August 2018, President Trump issued Executive Order 13847, Strengthening Retirement Security in America, one portion of which asked government agencies to...
Multiemployer Plan Withdrawal Liability Assumptions Under Attack
Three recent decisions illustrate the threats facing multiemployer plans as they struggle to collect withdrawal liability while trying to forestall insolvency. We covered those issues here. In...
Plan Sponsor and Service Provider Submit Dueling Motions to Dismiss in Response to Data Breach Suit
Further demonstrating the lack of clarity on who is liable when a plan suffers a data breach, on June 30th, Abbott Laboratories and Alight Solutions, pointed fingers at each other in dueling motions...
COVID-19 Leave and Summer Camp Closures
The Department of Labor (“DOL”) has issued Field Assistance Bulletin No. 2020-4 ("FAB 2020-4") to provide guidance on when an employee may take paid leave under the Families First Coronavirus...
How Employers Can Create Effective Diversity and Inclusion Initiatives
Recording available here
DOL Reinstates Five-Part Fiduciary Status Test and Proposes Class Exemption
By Livia Quan Aber, Barry Salkin and Stephen Wilkes On June 29, 2020, the DOL issued a rulemaking package consisting of a final rule (“Final Rule”) implementing the vacatur of the...
Multiple Employer Plans and Participating Employers Given the Opportunity to Contribute to Guidance Development on Pooled Employer Plans under the SECURE Act
On June 18, 2020, the Department of Labor took the next step toward providing guidance for multiple employer plans (MEPs) by issuing a Request for Information (RFI) seeking public comment on whether...
Agencies Issue Further Guidance on COVID-19
The Department of Labor, Department of Health and Human Services, and the IRS (the “Agencies”) have issued Frequently Asked Questions #43 (“FAQs”) regarding implementation of the Families First...
1557 Rule Changes and Bostock
The Department of Health and Human Services (“HHS”) announced on June 12, 2020, as part of a new final regulation (the “Final Rule”), that it had eliminated Obama-era nondiscrimination rules under...
Massachusetts Announces Individual Mandate Figures for 2021
Although the penalties under the Affordable Care Act’s individual mandate were eliminated in 2017, Massachusetts has continued its own individual health insurance mandate as well as associated...
Roundtable Discussion on Effective Work-Related Communication
Recording available here
IRS Issues Guidance on COVID-19 Leave Donation Programs
The IRS has issued Notice 2020-46 to explain the tax consequences of employer-based COVID-19 leave donation programs. Background. The IRS recognized that, in response to the need to provide relief...
DOL Offers Guidance to Fiduciaries Considering Private Equity Investments in Defined Contribution Plans
By Barry Salkin, Livia Quan Aber and Stephen Wilkes One of the key tasks for fiduciaries of a participant-directed individual account plan is selecting appropriate investment options. Reminding...
ACA Out-of-Pocket Limit and PCORI Fee Announced
HHS and IRS have announced inflation-adjusted out-of-pocket (“OOP”) limits that will apply to non-grandfathered health plans for plan years beginning in 2021, and the indexed PCORI fee. The OOP...
IRS Temporarily Eases Witness and Notarization Requirements for Certain Retirement Plan Participant Elections
On June 3, the Internal Revenue Service provided temporary relief from the requirement in IRS regulations that certain participant elections must be witnessed in the physical presence of a plan...
Paycheck Protection Program Flexibility Act of 2020 Passes Senate
by Barry Salkin, Roberta Casper Watson and Livia Quan Aber The Paycheck Protection Program (“PPP”), which was enacted as part of the CARES Act, allows businesses to borrow funds that are guaranteed...
Court Decision Highlights the Dangers of Cybersecurity Breaches for Both Plan Sponsors and Plan Service Providers
On May 27, 2020, the Eastern District of Pennsylvania, in Leventhal v. MandMarblestone Group, LLC, handed down a decision that highlights the dangers facing both plan sponsors and plan service...
DOL and IRS Extend Certain Deadlines for Welfare Plans and Participants
The DOL and IRS have issued COVID-19 related guidance that temporarily extends certain deadlines applicable to welfare plans and their participants and beneficiaries. COVID-19 Related Guidance. In...
Supreme Court Concludes Defined Benefit Pension Plan Participants Do Not Have Standing To Bring Breach of Fiduciary Duty Claim
The Supreme Court has long recognized that one of ERISA's principal purposes was to make “sure that if a worker has been promised a defined pension benefit upon retirement - and if he has fulfilled...
IRS Announces 2021 HSA Limits
The IRS has announced the 2021 calendar year dollar limits for health savings account (“HSA”) contributions, and the minimum deductible amounts and maximum out-of-pocket expenses for high deductible...
The Wagner Law Group Expands its Trusts and Estates Practice in Florida and Missouri
Employee Retention Tax Credit Under the CARES Act
by Barry Salkin, Roberta Casper Watson and Livia Quan Aber The Families First Coronavirus Response Act (the “FFCRA”) established tax credits under the Emergency Paid Sick Leave Act and the Emergency...
IRS Relaxes Rules for Cafeteria Plan Mid-Year Election Changes
The IRS, in Notice 2020-29, has relaxed the mid-year election change rules for cafeteria plans due to the nature of the public health emergency imposed by COVID-19, extended grace and carryover...
Return-To-Work: Creating a Viable Playbook
Recording available here
DOL Issues Revised COBRA Notices
The Department of Labor (“DOL”) has issued updated versions of its model general notice and model election notice to ensure that qualified beneficiaries better understand the...
Silver Lining: Advisors Can Urge Clients to Give More to Charity
Planning in the Age of a Pandemic: Estate Planning and CARES Act Considerations
Planning in the Age of a Pandemic: Estate Planning and CARES Act Considerations – Regina Mandl and Barry Salkin, The Wagner Law Group Free Webinar, May 6, 2020, 2:00 PM (ET) –Recording available...
Cybersecurity and Retirement Plans: What Plan Sponsors Should Do
Cybersecurity breaches of retirement plan participant accounts have occurred with increasing frequency in recent years. Just this past April, a plan participant filed a complaint alleging...
Retirement Plan Provisions of CARES Act Updated to Reflect IRS Guidance Issued May 4, 2020
The third COVID-19 Stimulus package has provisions regarding retirement plans, including expanded and penalty-free withdrawal rights, expanded loan rights, extended rights to repay loans and...
Federal Agencies Extend Deadlines for COBRA and Health Plan Claims, Appeals, and Special Enrollments
In coordination, the Department of Labor, the Department of Health and Human Services, and the Internal Revenue Service (collectively, the “Agencies”) have extended deadlines for multiple events...
IRS Extends Deadlines for Certain Filings and Actions for Employee Welfare Benefits Plan
The IRS has issued Notice 2020-23 to provide employers, employees and retirement plan service providers with relief from business disruptions from the COVID-19 pandemic. Notice 2020-23 automatically...
Reducing Legal Risk: Protecting Against Claims Stemming from COVID-19
Recording available here
Remote Online Notarization Becomes Law in Massachusetts During COVID-19 Emergency
On April 27, 2020, the Virtual Notarization Act (the “Act”) was signed into law by Massachusetts Governor, Charlie Baker, and was effective immediately. The Act allows Massachusetts notaries, using...
The Impact of the Economic Downturn on Retirement Plans
The current volatility in the economy due to the coronavirus pandemic has created various issues for retirement plans that need to be addressed in an expedited and efficient manner. The significant...
Further Guidance from DOL on the Families First Coronavirus Response Act
The Department of Labor (“DOL”) has issued additional FAQs that provide further guidance for employers and employees on the administration of the Emergency Paid Sick Leave (“EPSL”) Act and the...
Employee Benefits and Bankruptcy: A Timely and Multi-Perspective Look
Tips for Managing Telecommuters
Agencies Issue FAQs on Group Health Plan COVID-19 Coverage Requirements
HHS, DOL and IRS (the "Agencies") have jointly issued FAQ 42 to provide guidance on the implementation of the COVID-19 coverage requirements of the Families First Coronavirus Response Act ("FFCRA")...
Don’t be a Stranger: Communicating During COVID-19
Don't be a Stranger: Communicating During COVID-19 - David Gabor and Judy Rakowsky, The Wagner Law Group FREE Webinar, April 14, 2020, 1:00 PM (ET) - Recording available here
REG BI Compliance Deadline; Financial Relief Considerations for RIA Firms
By Stephen Wilkes, Livia Quan Aber and Seth Gaudreau I. The SEC Will Not Delay Reg BI and Form CRS Compliance Date Last week, the U.S. Securities and Exchange Commission (“SEC”) Chairman, Jay...
IRS Releases Guidance on Requirements for Employers to Claim EPSL and EFMLA Tax Credits Under FFCRA
The IRS has issued guidance for employers with under 500 employees explaining how to claim a tax credit for emergency paid sick leave ("EPSL") and expanded FMLA ("EFMLA") under the Families First...
Managing From Afar: Effectively Adapting to Telework
One of the realities created by the COVID-19 pandemic is that more employees are working remotely than ever before. This change raises legal and business issues that have caught many companies off...
ERISA Litigation – Lessons for Today from the Great Recession
Many of us older hands lived through the financial collapse of 2008 and, with any luck, learned a lesson or two from the experience that may come in handy now. When 2008 began, my legal practice was...
DOL Issues Guidance on Emergency Paid Sick Leave and Paid FMLA Under Families First Coronavirus Response Act
The DOL has issued a series of FAQs that provide guidance for employers administering the Emergency Paid Sick Leave ("ESPL") and the Emergency Family and Medical Leave Act ("EFMLA") under the...
The Families First Coronavirus Response Act Updated to Include Coronavirus Aid, Relief, and Economic Security Act Provisions
by Roberta Watson, Barry Salkin and Virginia Peabody This Law Alert serves as an update to the Law Alert sent out on March 19, 2020 concerning the paid leave and group health plan provisions of The...
Withdrawals and Loans from Defined Contribution Retirement Plans
View Printable PDF In reaction to the current volatility in the economy due to the coronavirus pandemic, we have been receiving a large number of questions from defined contribution plan sponsors...
PANDEMIC and Broker-Dealer/Recordkeepers and Advisors… Chances Are, Your Business Continuity Plan Did Not Fully Address This…
By Stephen Wilkes, Kimberly Shaw Elliot and Seth Gaudreau In uncertain times like these where the novel coronavirus or COVID-19 seems to be impacting everything, broker-dealers, investment advisory...
Retirement Plan Provisions of CARES Act
The third COVID-19 stimulus package has provisions regarding retirement plans, including expanded and penalty-free withdrawal rights, expanded loan rights, extended rights to repay loans and...
The CARES Act: Relief for Small Businesses
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act (the “Act”) was passed. The bill is expected to provide relief for eligible small business through a loan...
Planning and Implementing a Temporary Layoff in the Age of COVID-19
During these uncertain times, layoffs, both long term and temporary, are on the rise. Naturally, it is very important for employers to plan layoffs carefully, even when they must be implemented...
The SECURE Act’s Impact on Estate Planning and Administration
Recording available here
HDHPs May Pay for COVID-19 Testing and Treatment
The IRS has issued Notice 2020-15 permitting High Deductible Health Plans ("HDHPs") to cover testing and treatment for COVID-19, without affecting the status of a person as an "eligible individual"...
Suspending or Reducing Safe Harbor Contributions in Defined Contribution Retirement Plans
In reaction to the current volatility in the economy due to covid-19, we have been receiving a large number of questions from retirement plan sponsors regarding whether it is permissible to suspend...
The Families First Coronavirus Response Act
by Roberta Watson, Barry Salkin and Virginia Peabody Effective no later than April 2, 2020, the Emergency Paid Sick Leave Act (the “Sick Leave Act”) and the Emergency Family and Medical Leave...
Agencies Issue Proposed Rules Regarding Health Care Transparency
By Roberta Casper Watson and Barry Salkin Last June, in Executive Order 13877, President Trump directed HHS, Treasury, and Labor (collectively, the “Agencies”) to solicit comments on how providers,...
Suggested Administrative Practices in Light of Intel Decision – Ensuring “Actual Knowledge”
by Stephen Wilkes and Livia Aber As we discussed in a recent Alert, the Supreme Court's decision in Intel Investment Committee v. Sulyma requires a plaintiff's "actual knowledge" of the fiduciary...
Five Steps to Help Avoid Mistakes in Light of COVID-19
Allowing employees to telecommute is an excellent accommodation. While this option supports continued business productivity, be sure to properly track the time worked so that you do not expose your...
Advisors: Time to Finish What was Started….ERISA and Fiduciary Process Have Evolved…Have You?
Over 46 years ago, the Employee Retirement Income Security Act (“ERISA”) was passed overwhelmingly in the House of Representatives by a 376-4 vote. Congress passed ERISA to empower American workers...
Supreme Court’s Actual Knowledge Decision Underscores Importance of Plan Administrator Best Practices
The Supreme Court settled the debate over what constitutes "actual knowledge" in the context of an ERISA fiduciary breach claim in a unanimous and simple decision that applied dictionary definitions...
No Statute of Limitations Protection Gained from Filing Forms for Employer Shared Responsibility Penalties
The IRS Office of Chief Counsel has released a memorandum stating that employers are not protected by a statute of limitations from the ACA's employer shared responsibility penalties ("ESRP"), even...
CMS Proposes Reporting Penalty Rule
The Centers for Medicare & Medicaid Services ("CMS") has proposed methods to calculate and impose civil penalties when a group health plan ("GHP") or a non-group health plan fails to comply with...
SEC Proposed Amendments to Advertising and Solicitation Rules
In early November 2019, the Securities and Exchange Commission ("SEC") released proposed amendments to the advertising rule and solicitation rule under the Investment Advisers Act of 1940 ("Advisers...
DOL Confirms Limited Partnership’s Health Plan is Not an ERISA-Covered Single Employer Plan
The United States Department of Labor ("DOL") has issued guidance (i.e., Advisory Opinion 2020-01A) to confirm that a limited partnership's health-benefit programs were not ERISA-covered group...
10 Steps Employers Should Follow When Faced With Requests for Leave or Accommodation
Recording available here
Eighth Circuit Delivers Guidance on Whether Rate Setting Amounts to Fiduciary Conduct
Courts have long struggled to set the boundaries at which point ERISA plan service providers exert sufficient control and discretion over plan assets to make them fiduciaries under ERISA 3(21). The...
Agencies Release FAQs on Updated 2021 Summary of Benefits and Coverage Template
HHS, DOL and IRS (collectively, the "Agencies") have released FAQs discussing the recently updated version of the Summary of Benefits and Coverage ("SBC") template and related materials (i.e.,...
Regina Snow Mandl Appointed by the Supreme Judicial Court to the Position of Vice Chair of the Clients’ Security Board
Regina Snow Mandl Appointed by the Supreme Judicial Court to the Position of Vice Chair of the Clients’ Security Board - Massachusetts Lawyers Weekly, February 7, 2020
Cafeteria Plan Need Not Provide Mid-Year Election Changes
The IRS has reiterated, in IRS Information Letter 2019-0028, that while a Section 125 cafeteria plan may allow participants to make a mid-year pre-tax contribution election change because of the...
De Novo Standard Does Not Save Participant’s Claim
Although the Fifth Circuit Court of Appeals, in Ariana v. Humana Health Plan of Texas, held that the "de novo" standard of review applies to a denial of benefits, this was not sufficient to save a...
The Impact of the SECURE Act on Estate Planning and Administration
Just before the end of 2019, the "SECURE Act," a bill that includes many changes to the federal tax code that apply to qualified retirement plans, such as a 401(k) or IRA, ("retirement assets") was...
Regina Snow Mandl Appointed Vice Chair of Massachusetts Clients’ Security Board
Evidence of Employer’s Mailing Procedures Does Not Prove COBRA Compliance
The United States District Court for the Middle District of Louisiana, in Randolph v. Baton Rouge Parish Sch. Bd., has ruled that an employer's declaration about its general business practices was...
#METOO in Medicine
#METOO in Medicine -David Gabor, American Medical Association, January 20, 2020
Employees Need Not Expressly Request FMLA Leave
The United States District Court for the District of Maine, in Waterman v. Paul G. White Interior Solutions, has ruled that a terminated employee may continue his Family and Medical Leave Act...
Congress Considers Multiemployer Pension Reforms While Benefit Suspensions Loom
The U.S. Treasury Department has received an application by the American Federation of Musicians and Employers' Pension Fund (the "Plan") to suspend benefits under the Multiemployer Pension Reform...
Retiree Medical Benefits Vest for Life and Survived CBA Termination
The Seventh Circuit Court of Appeals, in Stone v. Signode Industrial Group, LLC, has upheld a district court's decision that an employer was obligated to continue providing lifetime health care...
New Laws Impact ACA and Employer-Sponsored Health Plans
President Trump has signed into law a spending package which includes the Further Consolidated Appropriations Act, (the "Act"), and contains a number of provisions related to employer-sponsored...
Massachusetts Advances Regulations Imposing Fiduciary Duty on Broker-Dealers
In November 2019, the Commonwealth of Massachusetts issued revised regulations imposing a fiduciary standard upon broker-dealers, although the regulations would not apply to a broker-dealer who is a...
Federal Circuit Court Determines ACA’s Individual Mandate is Unconstitutional
The Fifth Circuit Court of Appeals, in Texas v. United States, has upheld a district court ruling that the individual mandate provision of the Affordable Care Act ("ACA") is unconstitutional....
SECURE Act Finally to Become Law
Congress is subject to one of the same vices as many Americans, namely, putting off important activities until the last moment. Earlier this year, the House of Representatives by a 417-3 vote,...
IRS Issues Qs&As on the ACA’s Individual Shared Responsibility Provisions
The IRS has issued a set of Qs&As explaining the Individual Shared Responsibility provisions of the ACA after the elimination of the individual shared responsibility penalty. Background....
ERISA Case in the District Court for the Southern District of New York Highlights Plan Sponsor QDRO Responsibilities
A sometimes forgotten issue in a divorce, separation, or other domestic relations proceeding is the division of retirement plan benefits between former partners and/or husband and wife. While the...
Increased Penalties for HIPAA Noncompliance
HHS has issued final regulations containing inflation adjustments to the civil penalties for violations of HIPAA's "administrative simplification" rules. Background. The inflation adjustments are...
The Change in the Equal Pay Landscape and its Impact on Employers
On December 6, 2019, the Second Circuit held that an employee does not have to show that she received less pay for equal work in order to prevail in an unequal pay claim. Instead, she only has to...
IRS Extends Deadline for ALEs to Furnish ACA Reporting Forms to Employees
The IRS has issued Notice 2019-63, which provides an automatic deadline extension for Applicable Large Employers' ("ALEs") reporting obligations under the Affordable Care Act's ("ACA"s) Employer...
Mandated Benefits 2020 Compliance Guide
Mandated Benefits 2020 Compliance Guide - Katherine Brustowicz, Dannae Delano, David Gabor, Barry Salkin, Marcia Wagner and Roberta Casper Watson, Wolters Kluwer, December 2019
Private Equity Fund Gains Important Victory
In Sun Capital Partners III v. New England Teamsters and Trucking Industry Pension Fund, the Court of Appeals for the First Circuit ruled on November 22 in favor of private equity funds, thus...
2020 Medicare Part A Deductibles and Part B Premiums
The Centers for Medicare & Medicaid Services ("CMS") has announced the Medicare Part A deductibles and Part B premiums for 2020. Medicare Part A covers inpatient hospital and hospice care, while...
IRS Releases 2020 Limits for Welfare Benefit Plans: Health FSA and HSA Limits Increase
The IRS has released the 2020 inflation-adjusted limits for certain employee welfare benefit plans and the dollar amounts used for certain discrimination tests. Health FSAs. The limit for employee...
DOL Says FMLA Leave Runs Concurrently with Paid Leave
The U.S. Department of Labor ("DOL") has issued Opinion Letter FMLA2019-3-A, which confirms that the terms of a leave policy provided under a collective bargaining agreement ("CBA") cannot supersede...
Two Opinions Demonstrate Importance of Prudent Administrative Procedures and Substantive Decisions in Responding to ERISA Benefit Claims
One of the most common and important tasks for ERISA plan fiduciaries is how to appropriately respond to plan participant claims for benefits. When the decision is made to deny benefits to...
Employers with California Employees who sponsor Flexible Spending Accounts May Have New Notice Requirements
A new California law (AB 1554) imposes a new notice mandate on employers with employees in California. The law requires employers, beginning in 2020, to notify their flexible spending account (FSA)...
IRS Announces 2020 Retirement Plan Limitations
The Internal Revenue Service announced cost-of-living adjustments affecting certain dollar limitations for pension plans and other retirement-related limitations for 2020, as detailed in Notice...
Final Regulations Rescind HIPAA Health Plan Identifier Rules
The Department of Health and Human Services ("HHS") has rescinded earlier regulations governing the health plan identifiers ("HPIDs") that group health plans were required to obtain and use in...
Court Rules that IRA Custodian was not a Fiduciary but did Violate MA Consumer Protection Law
In UBS Financial Services, Inc. v. Aliberti (SJC-12662), the Massachusetts Supreme Judicial Court has ruled that no fiduciary relationship existed between the commercial custodian of an individual...
EEO-1 Component 2 Data Collection Reinstated, Again
In yet another turn of events in the ongoing EEO-1 Component 2 data collection saga, the EEOC’s self-declared cessation to collect the Component 2 data has been overturned by Judge Tanya Chutkan of...
LTD Claim Denial Subject to Stricter Standard of Review Due to Untimely Decision
The Seventh Circuit Court of Appeals, in Fessenden v. Reliance Standard Life Ins. Co., has held that a plan administrator's decision to deny a participant's claim for long-term disability ("LTD")...
DOL Issues Proposed Regulations Regarding Electronic Disclosure of Pension Plan Information
In 2002, the DOL issued a safe harbor for electronic disclosure that is available only to those participants that have electronic media at work, and those individuals who affirmatively opt in to...
Participant May Sue Insurer Before Exhausting Administrative Remedies
The U.S. District Court for the District of Arizona has ruled, in Greiff vs. Life Insurance Company of North America, that a long-term disability plan participant need not exhaust an insurer's...
IRS Issues Guidance to Clarify Health Reimbursement Arrangement Rules
The IRS has issued proposed regulations to clarify the application of the ACA's employer shared responsibility provisions under Section 4980H of the Internal Revenue Code (the "Code") and certain...
Genetic Testing May Include Medical Expenses
The IRS has ruled, in Private Letter Ruling 201933005, that portions of the cost of a genetic testing service may be considered medical expenses and may, therefore, be reimbursed by a health care...
Petition For Rehearing and Supporting Amicus Briefs Filed In Schwab ERISA Arbitration Case
In August of this year, a Ninth Circuit three-judge panel ruled in Dorman v. The Charles Schwab Corporation, DC No. 4:17-cv-00285-CW, 2019 WL 3939644 (9th Cir. August 20, 2019) that a plan...
Agencies Issue Final FAQs on Mental Health Parity Implementation
HHS, DOL and IRS have issued final FAQs on the implementation of the requirements of the Mental Health Parity and Addiction Equity Act ("MHPAEA"). The MHPAEA requires that the financial requirements...
DOL Finalizes Overtime Rule
The U.S. Department of Labor finalized its overtime rule which will become effective on January 1, 2020. Notably, the DOL increased the threshold for the FLSA overtime exemption from $23,660 to...
CHIP Notice Revised
The Department of Labor ("DOL") has released a revised and updated model notice that employers can use to inform employees of the potential for state premium assistance subsidies for the purchase of...
When Will a Plan Administrator’s Denial of Benefits be an Abuse of Discretion – In Discrete Circumstances Says the Ninth Circuit
Almost every ERISA employee benefit plan contains so-called "Firestone language," which grants discretionary authority to determine eligibility for benefits and construe the terms of a plan. If a...
EEO-1 Report Update – Component 2 Data Filing Deadline Quickly Approaching
Earlier this year the EEOC announced it would reinstate the collection of EEO-1 Component 2 data, thus requiring employers to submit pay data broken own by job category, sex, race, and ethnicity....
Single Document Can Serve as ERISA Plan Document and SPD
The Eighth Circuit Court of Appeals, in MBI Energy Services v. Hoch, has held that a self-insured medical plan is entitled to reimbursement because its summary plan description ("SPD") was also the...
Supreme Court Amicus Brief Shows How High the Stakes Really are for the Future of ERISA’s “Actual Knowledge” Requirement
The battle over what constitutes "actual knowledge" of an ERISA fiduciary breach or violation ratcheted up a notch with the filing of an amicus brief in Sulyma v. Intel Corporation Investment Policy...
Multiple Employer Pension Plan Update
On October 22, 2018, the DOL issued a proposed regulation in response to the August 31, 2018, Executive Order by President Trump to remove regulatory burdens faced by defined contribution multiple...
One-Two Punch to Defuse Severance and Other Benefit Disputes
On September 4, 2019, the 5th Circuit Court of Appeals in Bangaru v. Shell U.S. Hosting Company et al, 4:17-cv-00629 (S.D. Tx.), shut the door on a former Shell executive who sought $1.5 million of...
Agencies Issue Guidance on Impact of Drug Manufacturer Coupons on ACA’s Out-Of-Pocket Limits
DOL, IRS and HHS (collectively, the "Agencies") have issued a FAQ to address whether drug manufacturers' coupons for name brand prescription drugs should be counted toward the annual cost-sharing...
ERISA Plan Administrator Denies STD Claim Too Quickly
The United States District Court for the District of Nevada, in Speca v. Aetna Life Ins. Co., has ruled that a ERISA plan administrator did not provide a full and fair review when it denied a short...
Church Plans Revisited
While the church plan exemption from the Employee Retirement Income Security Act of 1974 (ERISA) has been built into ERISA since its adoption, and the specific provision providing that exemption has...
DOL Offers Temporary Penalty Relief for All Multiple Employer Plans not Currently in Compliance with the Special MEP Reporting Requirements
Recently, the Employee Benefits Security Administration (EBSA) of the Department of Labor (DOL) announced guidance and relief (Field Assistance Bulletin 2019-01) affecting Form 5500 annual report...
Ninth Circuit Changes its Position on the Enforceability of Arbitration of Breach of Fiduciary Duty Claims Under ERISA §502(a)(2)
The Ninth Circuit, in Dorman v. The Charles Schwab Corporation, modified its position on the enforceability of arbitration agreements to ERISA claims of breach of fiduciary duty on behalf of the...
Attending Children’s Special Education Meetings Covered by FMLA
The U.S. Department of Labor ("DOL") has released Opinion Letter FMLA 2019-2-A confirming that an employee may take leave under the Family Medical Leave Act of 1993 ("FMLA") to attend special...
Defining the Limits of Broad, Complete ERISA Preemption in Health Care Excessive Fee Cases
Over several decades, courts have developed a rich history of broad, complete ERISA preemption of any and all claims in state courts as they relate to ERISA plans and participant rights to receive...
Requirements for Requesting FMLA Leave Cannot Be More Onerous than for Requesting Non-FMLA Leave
The United States District Court for the Southern District of Alabama, in Moore v. GPS Hospitality Partners IV, LLC, etc., has ruled that an employer's notice and procedural rules for requesting...
Does Your Plan use a LIMITED SCOPE AUDIT for Form 5500 Financial Reporting?
There has been a significant new development for employee benefit plan administrators of large plans who opt for a "limited scope audit" by the plan's auditor for Form 5500 reporting of the plan's...
Plan Administrator Deemed an ERISA Fiduciary
The Fourth Circuit Court of Appeals, in Dawson-Murdock v. Nat'l Counseling Group, Inc., has allowed a life insurance beneficiary to sue her husband's employer for breach of fiduciary duties...
IRS Releases ACA Affordability Rates for 2020
The Internal Revenue Service has issued Revenue Procedure 2019-29 to implement the 2020 index adjustments for certain Affordable Care Act ("ACA") contribution percentages used to determine...
IRS Expands List of Preventive Care Benefits
IRS has issued Notice 2019-45 which expands the list of "preventive care benefits" permitted to be provided by a high deductible health plan ("HDHP") when determining if an individual is eligible to...
A Sigh of Relief For Employers Subject to Potential ACA Disparate Impact Discrimination Claims
In the aftermath of Title VI of the Civil Rights Act of 1964, litigants have pressed courts on what conduct meets the criteria for a disparate impact discrimination claim. Typically, a disparate...
Was The Court of Claims Correct for the Wrong Reason?
In Iowa Bankers Benefit Plan v. United States, the Court of Federal Claims decided that the Iowa Bankers Benefit Plan, a group health arrangement, is within the Affordable Care Act ("ACA")...
Sweeping Changes to Connecticut’s Sexual Harassment Laws Will Have a National Impact
Connecticut recently made several noteworthy changes to its sexual harassment laws designed to help eliminate harassment, prevent retaliation against claimants and expand protection when claims are...
Court Finds an Employee’s Vacation While On FMLA Leave is Acceptable
The Massachusetts Supreme Judicial Court ("SJC"), in DaPrato v. Mass. Water Resources Authority, has affirmed a jury's finding that an employee was wrongfully terminated for taking a vacation to...
Follow-up on SEC Guidance Regarding Broker-Dealers and Investment Advisors
On June 5th, the SEC issued a four-part package of guidance with respect to the activities of broker-dealers and investment advisors. We prepared an Investment Management Law Alert focusing on one...
Proposed IRS Regulation Would Eliminate “One Bad Apple” Rule for Multiple Employer Defined Contribution Plans
On July 3, 2019, the IRS proposed a new regulation addressing one problem experienced by multiple employer defined contribution plans (DC MEPs) which are tax qualified as single plans under Section...
Apprenticeship Training Programs Must File Electronic Notice to be Exempt from ERISA’s Reporting and Disclosure Requirements
The U.S. Department of Labor ("DOL") has issued new regulations requiring apprenticeship training programs to file electronically in order to take advantage of an exemption from ERISA's reporting...
HHS Guidance on When One Health Plan May Share PHI of Individuals with Another Health Plan
HHS has issued FAQs that provide guidance on the circumstances under which HIPAA's Privacy Rule allows for one health plan to share protected health information ("PHI") about individuals who "have a...
Beneficiary May Sue Trustees of One ERISA Plan for Fiduciary Breaches Causing Loss of Benefits under Another ERISA Plan
The U.S. District Court for the Southern District of New York, in DeRogatis v. Bd. of Trustees of the Cent. Pension Fund of the Int'l Union of Operating Engineers, has held that ERISA allows a...
Dramatic Changes to New York’s Harassment Prevention Law
It is now much easier for employees in New York to assert claims of workplace harassment. In the past, in order to bring a claim of workplace harassment in New York, employees were required to...
Agencies Expand HRA Availability to Provide Coverage
In response to an Executive Order from President Trump, the DOL, HHS, and the IRS proposed new regulations to expand the use of HRAs to pay for certain medical expenses. They now have released...
Massachusetts Delays the Start of Paid Family and Medical Leave Program by Three Months
Delayed Contribution Date: On Friday, June 14, 2019. the Commonwealth of Massachusetts has delayed Paid Family and Medical Leave (PFML) contributions from employers and employees. The new start...
HHS Proposes Revised ACA Section 1557 Regulations
HHS has issued proposed regulations that, if finalized, would significantly revise existing regulations issued under Section 1557 of the Affordable Care Act ("ACA"). The proposed regulations would...
Being Smart About M&A-Related Benefit Plan and Employment Issues
Recording available here
SEC Issues Final Regulation BI
The SEC, by a 3-1 party line vote, issued in a timely fashion its final regulations with respect to broker-dealer conduct, referred to as Regulation Best Interest ("Regulation BI"). The SEC's...
Massachusetts Paid Family & Medial Leave Seminar
IRS and HHS Release Certain Limits for Welfare Benefit Plans in 2020
The IRS and HHS have released some of the 2020 inflation-adjusted limits for certain employee welfare benefit plans and the dollar amounts used for certain discrimination tests. Health Savings...
Deal-Breaking M&A Issues Related to Employee Benefit Plans and Executive Compensation
Employee benefit and executive compensation related issues have been known to unravel merger and acquisition transactions. These sometimes seriously disruptive issues can explode an otherwise viable...
Forfeiture of Transportation Benefits
In Information Letter 2019-002, the IRS has confirmed that unused transportation benefits will be forfeited when an employee terminates employment. Qualified transportation fringe benefits include:...
An Ounce of Litigation Prevention for Executive Benefits…and Severance: Lessons from an Employer’s Quagmire in New Jersey
There are three instructive takeaways from the April 24th decision in Weller v. Linde Pension Excess Program (D. NJ). In that case, the employer failed in its effort to end the case before...
Guidance on When Employers Can Prorate Bonuses of Employees on FMLA Leave
The Second Circuit Court of Appeals, in Clemens v. Moody's Analytics, Inc., has held that an employer did not unlawfully interfere with an employee's rights under the Family and Medical Leave Act...
HHS Reduces Maximum Penalty Amounts for Certain HIPAA Violations
The Department of Health and Human Services ("HHS") has lowered the maximum civil monetary penalty amounts for most violations of the Health Insurance Portability and Accountability Act ("HIPAA")...
PBGC Requests OMB Approval for Data Collection for ERISA Title IV Coverage Analysis
The Pension Benefit Guaranty Corporation ("PBGC") issued a notice (84 Federal Register 20168 (Wednesday, May 8, 2019)) informing the public that the PBGC has requested the Office of Management and...
Current Association Health Plan Contracts Safe
The Department of Labor ("DOL") has announced that it will not take action against association health plans ("AHPs") that comply with its final regulations, even though these regulations were...
IRS Releases Round Two of Proposed Regulations for Qualified Opportunity Funds
On April 17, 2019, the Internal Revenue Service ("IRS") issued the second round of proposed regulations with respect to qualified opportunity funds ("QOFs"). While the first round of proposed...
IRS Expands Determination Letter Program – Revenue Procedure 2019-20
In Revenue Procedure 2016-37, the Internal Revenue Service ("IRS") eliminated the long-standing program under which a plan sponsor could request a determination that its individually-designed plan...
State Law Claims Not Preempted by ERISA
The U.S. Court of Appeals for the Ninth Circuit, in The Depot, Inc. vs. Caring for Montana, has ruled that state law claims of fraud and misrepresentation are not preempted by ERISA. Facts: Three...
Multiemployer Plan Reforms are Needed Before it’s Too Late
The President's proposed 2020 Budget, released March 11, 2019, would shore up the Pension Benefit Guaranty Corporation's ("PBGC") multiemployer pension plan insurance fund by increasing premiums,...
Participant’s Disability Claim is Time-Barred
The U.S. Court of Appeals for the Second Circuit has ruled, in Arkun v. Unum Group, that a plan participant could not sue to restore her long-term disability ("LTD") benefits because the suit was...
Rabbi Trusts – When to ask. What to get.
By Mark Poerio A recent Law360 headline brought rabbi trusts immediately to mind. It reads "Ex-Manufacturing Co. CEO Says He's Owed $4.4M in Benefits" (4/10/2019).* Litigation sprung because the...
Relative of 2-Percent Shareholder May Deduct Cost of Health Insurance
Certain individuals who receive health care coverage from an S corporation must include the cost of the coverage in their income because of their relationship to the owner of the S corporation....
Plan May Deny Coverage for Bariatric Surgery
The U.S. Court of Appeals for the Fifth Circuit, in Rittinger v. Healthy Alliance Life Insurance Company, has ruled that a plan administrator that has been granted discretionary authority with...
Update on Requirement to Report EEO-1 Wage and Hour Data
As previously reported in our Alert published on March 7, 2019, a federal judge has ordered the EEOC to provide guidance regarding the collection of wage and hour data ("Component 2 data"). On...
Court Upholds LTD Insurer’s Claim Denial Based on Failed Validity Tests
The Eighth Circuit Court of Appeals, in Johnston v. Prudential Ins. Co., has affirmed a lower court's ruling that the defendant insurer acted appropriately in terminating the plaintiff's long...
Massachusetts Issues Proposed Regulations and Toolkit for Paid Family and Medical Leave Act
On March 29, 2019, the Massachusetts Department of Family and Medical Leave (“DFML”) re-issued draft regulations on the Massachusetts Paid Family and Medical Leave Act (“PFML”). DFML will hold at...
Federal Judge Strikes Administration’s Regulations Expanding Access to Association Health Plans as Illegal
A federal judge in Washington, D.C., ruled last Thursday that the current administration's attempt to broaden the types of health plans that can avoid the coverage rules under Title I of ERISA...
Claims Denial Appeal Period Begins on Date of Denial, Not Date Benefits Cease
The First Circuit Court of Appeals has ruled, in Fortier v. Hartford Life and Accident Insurance Company, that a long term disability ("LTD") plan's 180 day period for claims denial appeals begins...
DOL Says Employees Cannot Decline FMLA Leave When Absence is Covered by FMLA
The U.S. Department of Labor ("DOL") has issued Opinion Letter FMLA2019-1-A clarifying that neither an employer nor an employee may delay designating paid leave as Family and Medical Leave Act...
SJC Rules That Workers at Whately Farm Entitled to Overtime Pay
SJC Rules That Workers at Whately Farm Entitled to Overtime Pay - David Gabor, Daily Hampshire Gazette, March 15, 2019
LTD Benefit Denial Overturned
The Ninth Circuit Court of Appeals, in Kott v. Agilent Technologies Inc. Disability Plan, has determined that a plan administrator abused its discretion in denying long-term disability ("LTD")...
EEO-1 Pay Data Collection Requirement Reinstated – OMB’s Stay Vacated
In September 2016, the Equal Employment Opportunity Commission ("EEOC") expanded its collection efforts to include summary W-2 pay data and total hours worked by race, ethnicity, and gender from...
Plans Cannot Prevent Participant from Appointing an Authorized Representative
In a letter dated February 27, 2019, the Department of Labor ("DOL") has reiterated that an ERISA-covered plan cannot prevent a plan participant from appointing an authorized representative for...
Firing After Leave Request Denial May Be FMLA Violation
The United States District Court for the Southern District of Texas, in Byrd v. City of Houston, has determined that a plaintiff-employee's Family and Medical Leave Act ("FMLA") claim should be...
New York State’s New Employment Discrimination Law: GENDA
On February 24, 2019, New York state's Gender Expression Non-Discrimination Act ("GENDA") went into effect. GENDA prohibits all employers with four or more employees from discriminating against...
DOL Guidance on ERISA Preemption
The United States Department of Labor ("DOL") has issued an Information Letter confirming that state laws requiring employers to obtain written consent before withholding amounts from employees'...
Multiple Employer Plans and PEOs
In recent years, much activity has centered around the idea of open MEPs - that is, multiple employer plans that do not require any relationship among the participating employers in the plan. In...
IRS Provides Additional Examples Where Employers May Recover HSA Contributions
The IRS has issued Information Letter 2018-0033, which provides details on certain situations that allow an employer to request the return of Health Savings Account ("HSA") contributions it made on...
Reminder for Massachusetts Employers: If You Care about your Noncompete…
There is generally a gnashing of teeth when a key employee leaves for a competitor, and that gnashing may evolve into weeping when an employer finds that its noncompetition protections are...
PBGC Issues New Staff Interpretations
In mid-2018, the Pension Benefit Guaranty Corporation ("PBGC") began posting Q&As for practitioners on its website. Last week, PBGC posted an update, including several additional Q&As. The...
Proposed Regulations Implementing Massachusetts’ Paid Family and Medical Leave Law
The Massachusetts Department of Family and Medical Leave (the "Department") has released proposed regulations explaining the rights and responsibilities of employers and employees under...
Using Required Minimum Distributions to Make Charitable Contributions – Some Things That You Need to Know
If you are 70½ years of age or older, have a standard IRA and are interested in making qualified charitable distributions, the following will be of interest to you. By making donations directly...
EEOC Delays Filing Due Date
The Equal Employment Opportunity Commission ("EEOC") announced that it has delayed the filing due date for the EEO-1 Report. The EEO-1 Report is a compliance survey mandated by federal statute and...
Employer Allowed to Deny Employee Pay Differential Due to FMLA-Related Absences
The United States District Court for the Eastern District of Arkansas, in Flowers v. McCartney, has determined that an employer did not violate the Family and Medical Leave Act ("FMLA") when it...
Court Rejects Third-Party Administrator’s Cross-Plan Offsetting Practice
The Eighth Circuit Court of Appeals, in Peterson v. UnitedHealth Group Inc., has upheld a district court's decision that a third-party administrator ("TPA") cannot engage in cross-plan offsetting to...
Nevada Issues Proposed Regulations Regarding Fiduciary Standards
While the SEC works on finalizing its proposed Regulation Best Interest, there continues to be significant activity at the state level that will cover, in varying degrees, the same subject matter....
Is the Partial Government Shutdown Affecting Your Benefit Plans?
Benefit professionals need to be very careful about how they respond to the partial government shutdown. Potential areas of concern include, but are not limited to, the following: 1. Eligibility...
Is the Partial Government Shutdown Affecting Your Company?
As the partial federal government shutdown continues, more companies are being affected, directly and indirectly, and business owners, executives and human resources professionals need to be very...
457(f) Landmine Lurks for All Tax-exempt Organizations…Even the Small Ones!
“Maybe not today. Maybe not tomorrow, but someday” … you are likely to have a golden parachute problem. It’s not often that Casablanca and tax law intersect, but the above warning is apropos for any...
FMLA Leave Cannot be Assessed if Employee Not Required to Report to Work
The U.S. District Court for the District of Alaska, in Acosta v. State of Alaska, has held that an employer could not count the time that a rotational employee was not scheduled to work as part of...
Guidance on Parking Expenses as Qualified Transportation Fringe Benefits
The IRS has released Notice 2018-99 to provide guidance to taxpayers on determining the amount of parking expenses for qualified transportation fringe benefits that is nondeductible and/or subject...
Insurer’s Acceptance of LTD Insurance Premiums Does Not Guarantee Coverage
A federal district court has ruled, in Ward v. Aetna Life Insurance Company, that a long-term disability ("LTD") insurer's denial of the plaintiff's benefit claim was appropriate even though the...
2019 Medicare Part A Deductibles and Part B Premiums
The Centers for Medicare & Medicaid Services ("CMS") has announced the Medicare Part A deductibles and Part B premiums for 2019. Medicare Part A covers inpatient hospital and hospice care, while...
Federal Court Rules Affordable Care Act Unconstitutional
A federal district court, in the Northern District of Texas, has ruled, in Children's Hospital Association of Texas v. Azar et. al., that the individual mandate provision contained in the Affordable...
FMLA Claim Viable Even Though Employee Not Yet Eligible for FMLA Leave
The U.S. District Court for the Eastern District of Wisconsin, in Reif v. Assisted Living by Hillcrest LLC, has confirmed that a Family and Medical Leave Act ("FMLA") claim may be triggered when an...
Asset Purchasers Beware – Constructive Notice of Seller’s Union Pension Liability
A recent 9th Circuit decision called out a common misconception -- in the form of "incorrect legal advice" that the buyer received prior to closing -- that "[a]bsent an express assumption of...
IRS Extends Deadline for ALEs to Distribute 2018 ACA Reporting Forms to Individuals
The IRS has issued Notice 2018-94, which provides a 30-day extension to the deadline for Applicable Large Employers ("ALEs") to distribute the 2018 Affordable Care Act ("ACA") reporting forms to...
GM Layoffs and a Smart Reduction-in-Force Strategy
It is never easy to downsize a workforce. The best companies aim to combine a considerate exit for those who leave, with morale-building incentives for those who remain. What better way to start...
Lame Duck House Tax Proposal Includes Numerous Retirement Plan Provisions
On November 26, 2018, House Ways and Means Committee Chairman Kevin Brady (R-Texas) introduced a substantial tax package consisting of two main divisions: the Taxpayer First Act of 2018, and the...
IRS Issues Additional Guidance on Proposed HRA Regulations
The IRS has issued Notice 2018-88 to provide guidance on its proposed Health Reimbursement Account ("HRA") regulations and their application to two Internal Revenue Code requirements: the Affordable...
IRS Releases 2019 Limits for Welfare Benefit Plans: Health FSA and HSA Limits Increase
The IRS has released the 2019 inflation-adjusted limits for certain employee welfare benefit plans and the dollar amounts used for certain discrimination tests. Health FSAs. The limit for employee...
Failure to Promote is Viable Basis for FMLA Discrimination Claim
A federal district court, in Browett v. City of Reno, has determined that a plaintiff's claim of discriminatory interference under the Family and Medical Leave Act ("FMLA") could be based on his...
DOL Guidance on Auto Portability
On November 7, 2018, the Department of Labor (“DOL”) issued a news release inviting public comment on a proposed exemption related to the consolidation of small retirement savings accounts in 401(k)...
Massachusetts Unveils New Reporting Requirement
Massachusetts has sent emails to many employers in the state, informing them that they are responsible for completing the new Health Insurance Responsibility Disclosure ("HIRD") form by the end of...
IRS Announces 2019 Retirement Plan Limitations
The Internal Revenue Service announced cost-of-living adjustments affecting certain dollar limitations for pension plans and other retirement-related limitations for 2019, as detailed in Notice...
Proposed Regulations Expand Employers’ Use of HRAs
HHS, DOL and IRS (the "Agencies") have jointly issued proposed regulations intended to expand the use of health reimbursement arrangements ("HRAs") by employers. Background. HRAs are...
New Associations
New Associations - Katherine Brustowicz, Massachusetts Lawyers Weekly, October 25, 2018
No Breach of ERISA Fiduciary Duty for Employer’s Failure to Provide Notice of Life Insurance Conversion Rights
The Sixth Circuit Court of Appeals, in Vest v. Resolute FP US Inc., has affirmed a district court's decision to dismiss a breach of fiduciary duty claim based on a sponsoring employer's failure to...
DOL Issues Regulations Regarding Multiple Employer Pension Plans
The Department of Labor ("DOL") issued a proposed regulation in response to President Trump's August 31, 2018 Executive Order to remove regulatory burdens faced by multiple employer pension plans...
Fifth Circuit Court of Appeals Decision Should Serve as an Important Reminder for Employers
A recent case in the Fifth Circuit Court of Appeals, Sellers v. Minerals Technologies, Inc., should remind employers to carefully approach the termination of executives, in part because concepts of...
House Passes Family Savings Act of 2018
Last month, the House of Representatives, as part of Tax Reform 2.0, adopted the Family Savings Act of 2018 ("Act"). No action will be taken on this bill until after the mid-term elections, but...
HHS’s Final Rule Increases Penalty Amounts for HIPAA Noncompliance
HHS has issued a final rule, effective October 11, 2018, to implement certain inflation adjustments to the civil monetary penalties imposed on violations of the administrative simplification rules...
Preeminent Boston-Based Law Firm Expands its Litigation and Labor, Human Resources & Employment Law Practices With the Addition of Katherine Brustowicz
Preeminent Boston-Based Law Firm Expands its Litigation and Labor, Human Resources & Employment Law Practices With the Addition of Katherine Brustowicz
Preeminent Boston-Based Law Firm Expands its Litigation and Labor, Human Resources & Employment Law Practices With the Addition of Katherine Brustowicz - October 16, 2018 West
ERISA Does Not Preempt State’s Unfair Trade Practices and Mental Health Parity Laws
In Hansen v. Group Health Plan Cooperative, the Ninth Circuit Court of Appeals ruled that a state's unfair trade practices and mental health parity laws will not be preempted by ERISA unless certain...
IRS Provides Additional Guidance on Paid Family and Medical Leave Tax Credit
The IRS has issued Notice 2018-71 which provides additional guidance on the paid Family and Medical Leave Act ("FMLA") tax credit which was created by the Tax Cuts and Jobs Act of 2017. Background...
IRS Updates Correction Program for Retirement Plans
In 2002, the Internal Revenue Service (IRS) adopted a program - the Employee Plans Compliance Resolution System (EPCRS) - to enable sponsors of employee benefit pension plans (primarily...
Individual Policies May Create ERISA-Covered Plan
The federal district court for the Eastern District of California has ruled, in Bommarito v. Northwestern Mutual Life, that a group of individual insurance policies are an ERISA-covered plan because...
Agreement Required District Court to Consider Information from Post-Complaint Internal Review Process
The First Circuit Court of Appeals, in Doe v. Harvard Pilgrim Health Care ("HPHC"), has held that the district court erred in upholding a benefit claim denial because it neglected to enforce an...
The Pendulum Has Swung in Response To #MeToo
Much has been written about the #MeToo movement over the past several months, and, justifiably, this will continue to be the case until such time as sexual harassment is no longer plaguing our...
Estate Planning for Surviving Spouses: What to Do ASAP
Estate Planning for Surviving Spouses: What to Do ASAP - Regina Mandl, Kiplinger, September 18, 2018
Certain Employers Receiving IRS Letters to Request Information on ACA Reporting
The IRS has been sending letters to certain employers to request information about whether they satisfied their ACA reporting obligations for 2015 and 2016. Specifically, the letter is entitled...
DOL Confirms that Organ Donors Can Qualify for FMLA Leave
The U.S. Department of Labor ("DOL") has released Opinion Letter FMLA 2018-2-A confirming that organ donation surgery can qualify as a "serious health condition" that is eligible for protection...
Identifying, Securing, Developing, and Managing Great Talent
Identifying, Securing, Developing, and Managing Great Talent – David Gabor, webinar co-panelist, September 5, 2018 - Watch the presentation here
Duty Of Loyalty
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President Trump Issues Executive Order On Retirement Security
Today, President Trump issued an Executive Order directing the Department of Labor ("DOL") and the Treasury Department to ease the barriers employers face in offering retirement plans and increase...
Seeking Younger Advisors? Don’t Break Age Discrimination Laws
Seeking Younger Advisors? Don't Break Age Discrimination Laws - David Gabor, Financial Advisor, August 30, 2018
Unwanted Employer-Paid Life Insurance Taxable to Employee
The Fifth Circuit Court of Appeals, in Ramsay v. Commissioner of Internal Revenue, has upheld the Tax Court's determination that the value of employer-paid group term life insurance was taxable...
Tightening-up Executive Compensation: Five Steps for Defusing Litigation Risks and Better Enforcing Restrictive Covenants
Tightening-up Executive Compensation: Five Steps for Defusing Litigation Risks and Better Enforcing Restrictive Covenants – David Gabor and Mark Poerio, Webinar, August 28, 2018, 12:00 PM – 1:00 PM...
A Penny Wise And a Pound Foolish: Lessons Learned from the Sixth Circuit Court of Appeals
Equal Employment Opportunity Commission v. Dolgencorp, LLC, d/b/a Dollar General Corporation serves as a critical lesson of what can happen when managers are not properly prepared. The Sixth Circuit...
Court Says Administrator’s Denial of Disability Benefit Claim Was Arbitrary and Capricious
The Tenth Circuit Court of Appeals, in McMillan v. AT&T Umbrella Benefit Plan No. 1, has affirmed a district court's decision to reverse a plan administrator's denial of short-term disability...
Court Rejects Severance Pay Claim of Employee Terminated for Refusing Transfer
The D.C. Circuit Court of Appeals (the "D.C. Circuit"), in Peck. v. SELEX Systems Integration, Inc., has affirmed a district court's judgment that a terminated employee was not eligible for...
Don’t Overlook Age Discrimination: Lessons Learned from the EEOC’s Report
The Equal Employment Opportunity Commission ("EEOC") recently issued a report about age discrimination that reads like a wake-up call. Essentially, 50 years have passed since the passage of the Age...
Agencies Issue Final Rule that Expands Duration of Short-Term, Limited-Duration Health Insurance
HHS, DOL and IRS (the "Agencies") have jointly issued a final rule on August 3, 2018 (Fed. Reg., V. 83,8/3/18 p. 38212) that expands the availability of short-term, limited-duration health...
Medicare and ERISA Preempt Arkansas Pharmacy Benefits Manager Law
The Eighth Circuit Court of Appeals, in Pharmaceutical Care Management Association v. Rutledge, has held that Medicare Part D and ERISA preempt an Arkansas statute that imposed regulations on...
Workplace Sexual Harassment: New York Sets The Standard That Others Should Follow
Accounts of workplace harassment involving employees, entertainers, athletes, and students has been well-publicized in 2018. This publicity has led to the widely-known "#MeToo movement." Some states...
Anti-Assignment Provision Does Not Prevent the Grant of Power of Attorney
Although the Third Circuit Court of Appeals ruled in American Orthopedic & Sports Medicine vs. Independence Blue Cross Blue Shield, that a group health plan's anti-assignment provision was...
OCIE Identifies Common Deficiencies Relating to Best Execution
On July 11, 2018, the Office of Compliance Inspections and Examinations ("OCIE") of the Securities and Exchange Commission published a Risk Alert relating to best execution deficiencies on the part...
Employee Must Renew Request for Intermittent FMLA Leave Annually
The U.S. District Court for the Middle District of Pennsylvania has ruled, in Feistl v. Luzerne Intermediate Unit, that an employee on intermittent leave is not protected by the Family and Medical...
Morgan Stanley Complex Manager Exits After Allegations ($)
Morgan Stanley Complex Manager Exits After Allegations ($) - David Gabor, FUNDfire (A Financial Times Service), July 12, 2018
Health Plan Must Cover Room and Board During Residential Treatment for Mental Illness
The Ninth Circuit, in Danny P. v. Catholic Health Initiatives, has ruled that a group health plan violated the Mental Health Parity and Addiction Equity Act of 2008 ("MHPAEA") when it denied...
IRS Releases ACA Affordability Rates for 2019
The Internal Revenue Service has issued Revenue Procedure 2018-34 to implement index adjustments for 2019 for certain Affordable Care Act ("ACA") contribution percentages used to determine...
Massachusetts Paid Medical Leave Law
Massachusetts has enacted a mandatory statewide paid family and medical leave program which will be administered by a newly created Department of Family and Medical Leave (the "Department") within...
“Grand Bargain” Minimum Wage Increase in Massachusetts
Massachusetts has enacted a "grand bargain" minimum wage law that will gradually increase the state's minimum wage from $11 per hour to $15 over the next five years. Simultaneously, it will phase...
What the Supreme Court’s Decision in Janus v. AFSCME Council 31 Means for Millions of Government Employees
The U.S. Supreme Court recently issued its decision in Janus v. AFSCME Council 31. This case determined that forced payment of dues or fees by public employees to their collective bargaining...
Association Health Plan Final Regulations
The US Department of Labor ("DOL"), after consultation with the Department of Health and Human Services, the Centers for Medicare and Medicaid Services, the Department of the Treasury and the IRS,...
Employer Created ERISA Covered Plan by Endorsing LTD Policy
A federal district court, in Stolebarger v. Prudential Insurance Company of America, ruled that long-term disability ("LTD") benefits were covered by ERISA because the employer had "endorsed" the...
Recent DOL Settlement Agreements with ESOP Trustees
The spate of recent settlements between the U.S. Department of Labor ("DOL") and trustees of employee stock ownership plans ("ESOP") is a signal that trustees and other fiduciaries should reassess...
Non-ERISA 403(b) Plans may be Subject to Proposed SEC Regulation Best Interest
Although the DOL Fiduciary Rule and related prohibited transaction exemptions are not officially dead until the Court of Appeals for the Fifth Circuit issues its mandate vacating the rule in toto,...
Insurer’s Payment of Reduced Benefit Not a Fiduciary Breach
The Fourth Circuit Court of Appeals, in Gordon v. CIGNA Corp., has affirmed a lower court's determination that an insurance company did not breach its fiduciary duty under ERISA when it paid an...
Moving the Bonus Plan Goalposts – Be Smart or Be Sued
Whenever a company announces performance goals that apply to cash bonus, equity award, or vesting conditions, there is some risk that affected employees will later question the end-of-period...
How to Best Manage Sexual Harassment in Medicine?
How to Best Manage Sexual Harassment in Medicine? - David Gabor, MedPage Today, June 10, 2018
Sixth Circuit Decision Highlights Importance of Firestone Language for Plan Interpretation
The Sixth Circuit Court of Appeals, in Clemons v. Norton Healthcare Retirement Plan, held that certain doctrines of contract interpretation did not apply to resolve ambiguities in an ERISA plan once...
Fiduciary Implications Of Flexible Retirement Income Solutions With Fiduciary Checklist and Q&A
View Printable PDF Executive Summary Although comprehensive retirement income solutions may be top of mind, partial solutions used on their own, or in combination with other retirement income...
ERISA Plan’s Anti-Assignment Provision Bars Healthcare Provider’s Benefit Claim
The Ninth Circuit Court of Appeals, in Eden Surgical Center v. Cognizant Technology Solutions Corp., dismissed a healthcare provider's lawsuit against a group health plan in which the provider...
Severance Plan Not Covered by ERISA
The Third Circuit Court of Appeals has ruled, in Girardot v. The Chemours Company, that an employer's severance plan is not a welfare benefit plan as defined under ERISA and, therefore, plan...
Recent FINRA Notices Seek Comment on Proposed Amendment to Quantitative Suitability and Efficacy of Supervision Rule
On the heels of the Security and Exchange Commission's (the "Commission") April 18, 2018 release of the proposed Regulation Best Interest rule package ("Regulation BI") (which was covered in our...
IRS Announces 2019 HSA Limits
The IRS has announced the 2019 calendar year dollar limits for health savings account ("HSA") contributions, and the minimum deductible amounts and maximum out-of-pocket expenses for high deductible...
Post-FMLA Leave Not Required Under ADA
The U.S. Supreme Court has declined to review Severson v. Heartland Woodcraft, Inc., which leaves standing a Seventh Circuit Court of Appeals decision concerning the availability of extended leave...
ERISA and Severance Benefits: 3rd Circuit Decision Should Prompt Employers to be Proactive
A recent 3rd Circuit Court of Appeals decision should remind employers to take the initiative -- in severance plans and agreements -- to affirmatively address whether ERISA will govern plan...
DOL Issues Temporary Enforcement Policy with Respect to Investment Advice Fiduciaries
Today, the Department of Labor ("DOL") issued Field Assistance Bulletin 2018-02 (the "FAB"), which indicates that both the DOL and the IRS will continue to rely upon its previously announced...
IRS FAQs Provide Guidance About the Paid Family and Medical Leave Tax Credit
The IRS has issued FAQs that provide guidance to employers on the Paid Family and Medical Leave Tax Credit which was created by the Tax Cuts and Jobs Act of 2017. Background. The FMLA Tax Credit, as...
Another Win for the Plan Fiduciary – Fifth Circuit Follows Dudenhoeffer Standards in RadioShack Case
On February 6, 2018, the Court of Appeals for the Fifth Circuit in Singh v. RadioShack Corp. aligned with the Second Circuit and affirmed the dismissal of Plaintiffs' proposed class action. The...
New Associations
New Associations - Regina Mandl & Shanna Giora-Gorfajn, MA Lawyers Weekly, April 26, 2018
Voluntary Severance Plans: From Success to Backfire
What happens when 3,000 employees over age 55 receive a buy-out offer because they have more than 10 years of experience? Fidelity made that offer to 7% of its workforce, and more than 50% of the...
Agencies Issue Proposed FAQs on Mental Health Parity Implementation
HHS, DOL and IRS (the "Agencies") have jointly issued proposed FAQs to provide guidance on the implementation of the requirements of the Mental Health Parity and Addiction Equity Act of 2008 (the...
2018 Update for Internal Revenue Code Section 162(m) Changes
The Tax Cuts and Jobs Act of 2017 made fundamental changes to Section 162(m) of the Internal Revenue Code. The general nature of those changes is noted below, along with thoughts about their impact...
SEC Proposes Three Related Releases on Retail Investor Matters
I. Introduction After a delay of almost eight years from the date that the SEC is authorized under the Dodd-Frank Act to provide for fiduciary standards for broker-dealers and investment advisers,...
Employee Awarded Benefits Due to Employer’s Flawed Administrative Procedures
In Frye v. Metropolitan Life Insurance Co., a federal district court in Arkansas has held that an employee is entitled to proceeds from dependent life and accidental death and dismemberment...
Employee’s ADA and FMLA Claims Dismissed Due to Attendance Issues
In Wolf v. Lowe's Companies, Inc., a federal district court in Texas dismissed a former employee's Americans with Disabilities Act ("ADA") Family and Medical Leave Act ("FMLA") discrimination claims...
New Wagner Law partner to head new Lincoln office
New Wagner Law partner to head new Lincoln office - Wicked Local, April 11, 2018
Tax Exempt Organizations: Get Your Filings Right – Or Else…
At the IRS, does anyone really read Form 990s, 990-EZs, and 990-PFs? Interestingly, the first level reader is apparently not a human . . . but an IRS computer. Those who prepare 990 filings should...
Sixth Circuit Finds Disability Claimant Wasn’t Deprived of a Full and Fair Review
In Castor v. AT&T Umbrella Plan No. 3, the Sixth Circuit rejected an employee's claim that the administrator for her employer's disability plan had violated the DOL's claims procedure...
Participant Has Burden of Proof in LTD Claim
In Castor v. AT&T Umbrella Plan No. 3, the Sixth Circuit rejected an employee's claim that the administrator for her employer's disability plan had violated the DOL's claims procedure...
Fifth Circuit Adopts Standard of Review for ERISA Benefit Denial Claims
The Fifth Circuit Court of Appeals, in Ariana v. Humana Health Plan of Texas, has held that the "de novo" standard of review applies to ERISA denial of benefits claims involving challenges to a...
Court of Appeals Decision on Fiduciary Rule Changes the Legal Landscape and Creates Uncertainty
The viability of the DOL's Fiduciary Rule and related exemptions was put in some doubt yesterday by a Court of Appeals decision that "vacate[s] the Fiduciary Rule in toto." The U.S. Court of Appeals...
10 Ways to Protect Against Sexual Harassment in the Workplace
10 Ways to Protect Against Sexual Harassment in the Workplace - David Gabor, Think Advisor, March 15, 2018
Sexual Harassment: What You Need to Know to Protect Your Company and Your Employees
Watch David's Presentation here
Supreme Court Says Retiree Health Benefits Ended When CBA Expired
The U.S. Supreme Court, in CNH Industries N.V. v. Reese, has ruled that certain retiree health benefits provided under a collective bargaining agreement ("CBA") terminated when the CBA expired. In...
How the TCJA Could Drive You to Divorce
How the TCJA Could Drive You to Divorce – Regina Mandl, Tax Notes, March 12, 2018
IRS Reduces HSA Contribution Limits for Family HDHP Coverage
The IRS has released Revenue Procedure 2018-18 to implement certain changes under the Tax Cuts and Jobs Act ("Act"). One of the changes affecting health and welfare plans is a change to the...
Department of Labor to Pilot Self-Reporting Wage Violation Program
The Department of Labor's Wage and Hour Division (WHD) has announced a new program that seeks to improve the often lengthy and difficult resolution process following an employer's violation of the...
Qualified Plan Changes in Bipartisan Budget Act of 2018
On February 9, 2018, Congress passed the Bipartisan Budget Act of 2018 ("Budget Act"). This two-year budget agreement contains a number of provisions relating to tax-qualified retirement plans,...
Agencies’ Proposed Rule Expands Duration of Short-Term Health Insurance
HHS, DOL and IRS (the "Agencies") have jointly issued a proposed rule that expands the availability of short-term, limited-duration health insurance. The proposed rule would allow consumers to buy...
Tax Cuts and Jobs Act; The New Federal Divorce Law
This article, authored by Regina Mandl, Esq. and quoting Barry Salkin, Esq., was published in the February 26, 2018 issue of Massachusetts Lawyers Weekly. I never have had a client who has said that...
FINRA Rules Going into Effect in 2018
There are a host of new and amended rules promulgated by the Financial Industry Regulatory Authority ("FINRA") that will be going into effect throughout 2018. This Alert summarizes these impending...
Federal Court Explains What Constitutes FMLA Interference
An Illinois federal district court, in Hall v. Board of Education of the City of Chicago, has determined that an employer may have interfered with a teacher's FMLA rights when it requested that she...
Massachusetts Securities Division Files Suit to Enforce Fiduciary Rule
In a recent Alert, we discussed how several states are charting their own course while the U.S. Department of Labor ("DOL") proceeds with its review of the Fiduciary Rule, the Best Interest Contract...
Sick Pay Is Not “Wages” under Massachusetts Law
The Massachusetts Supreme Judicial Court, in Tze-Kit v. Massachusetts Port Authority, held that sick pay does not constitute wages under the Massachusetts Payment of Wages Law. Accordingly,...
SEC Offers Amnesty Under Share Class Selection Disclosure Initiative
In our January 18, 2018 Law Alert on share class selection, we expressed our opinion that share class selection is likely to remain an enforcement focus for the Security and Exchange Commission (the...
Tax Reform: Unintended Consequences for Broker-Dealers
The "Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018" (the "Tax Act") - formerly known as The Tax Cuts and Jobs Act -...
Compensation and Benefits: The Front Line in the War Against Sexual Harassment
Our article, "Hitting Workplace Harassers Where It Hurts" (National Law Journal, 12/30/2017*), began by recognizing that a 2016 EEOC study carried the following warning about sexual harassment in...
Employee’s FMLA Retaliation Claim May Proceed to Trial Due to Close Timing of FMLA Request and Termination
A federal district court, in Walpool v. Frymaster, LLC, has allowed a terminated employee's Family and Medical Leave Act ("FMLA") retaliation claim to proceed to trial due to the close proximity...
Congress’ Spending Bill Delays Certain ACA Taxes and Extends CHIP
On January 22, 2018, President Trump signed into law a short-term spending bill (i.e., a "continuing resolution") that reopened and refunded the federal government for three weeks (i.e., until...
Recent Developments – States Proceed with Their Own Fiduciary or “Best Interest” Standards
States Proceed with Their Own Fiduciary or "Best Interest" Standards While the U.S. Department of Labor ("DOL") continues with its mandated review of the Fiduciary Rule and related exemptions,...
ERISA Doesn’t Preempt Montana’s Mental Health Parity Law
A federal district court, in Sand-Smith v. Liberty Life Assurance Company of Boston, determined that ERISA did not preempt Montana's mental health parity law and that the state law was therefore...
Regulatory Focus on Share Class Selection in 2018
In recent years, the Office of Compliance Inspections and Examinations ("OCIE") of the Security and Exchange Commission ("Commission") has increasingly scrutinized share class selection by...
A Window into the DOL Wage and Hour Division: Opinion Letters Shed Light
The U.S. Department of Labor Wage and Hour Division ("WHD") is responsible for providing guidance regarding wage and hour questions that arise under the Fair Labor Standards Act ("FLSA")....
DOL Announces Applicability Date for Disability Claims Regulations
The DOL has announced April 1, 2018 as the effective date for its final disability claims procedure regulations. The regulations were originally slated to apply to disability claims filed on or...
Medicine must address #MeToo moment—and beyond
Medicine must address #MeToo moment—and beyond - David Gabor, AMA Wire, June 11, 2018
DOL to Expand Association Health Plans
The Department of Labor has issued proposed regulations that would allow "bona fide groups or associations of employers" to more easily join together to form Association Health Plans ("AHPs") that...
IRS Extends Deadline for ALEs to Distribute 2017 ACA Reporting Forms to Individuals
The IRS has issued Notice 2018-06, which provides an automatic 30-day extension to the deadline for Applicable Large Employers ("ALEs") to distribute the 2017 Affordable Care Act ("ACA") reporting...
PBGC Issues Final Regulations for Terminating Defined Contribution Plans
The issue of missing participants in terminating defined contribution plans is not a new one. The issue was addressed by the Department of Labor in Field Assistance Bulletin, 2014-01, Fiduciary...
2018 Medicare Part A Deductibles and Part B Premiums
The Centers for Medicare & Medicaid Services ("CMS") has announced the Medicare Part A deductibles and Part B premiums for 2018. Medicare Part A covers inpatient hospital and hospice care, while...
Exes and Taxes
Exes and Taxes – Regina Mandl, Associated Press, December 22, 2017
Excess Employee Remuneration for Tax-Exempt Organizations
Today, President Trump signed the tax bill (formerly known as "The Tax Cuts and Jobs Act") into law. The tax bill had to be renamed as the not-too-catchy "Act to provide for reconciliation pursuant...
Tax Reform Bill Passes Both Chambers; Awaiting President’s Signature
House and Senate Republicans voted along party lines yesterday and into the early hours today to pass a tax reform bill, after weeks of wrangling by both Chambers to reconcile the respective...
TPA’s Recordkeeping Demonstrates Employer Met COBRA Notice Requirements
The Eleventh Circuit Court of Appeals, in DeBene v. Bay Care Health System, Inc., determined that an employer had met its COBRA notification requirements based solely on ample evidence of its...
“Lifetime” Retiree Health Benefits Ended When CBA Expired
The Sixth Circuit Court of Appeals, in Watkins vs. Honeywell International Inc., determined that an employer's promise to provide healthcare benefits for its retirees expired when the collective...
FINRA Shares Examination Findings
The Financial Industry Regulatory Authority (FINRA) recently released the results of its exam program to assess compliance with securities rules and regulations. FINRA conducts cyclical examinations...
Employer Not Liable for Failure to Send COBRA Election Notice
In Sanders vs. Temenos, Inc. the U.S. District Court for the Southern District of Florida determined that an employer was not liable for a failure to provide a COBRA notice because its former...
Social Security Administration Revises 2018 Taxable Wage Base Cost-of-Living Adjustment
On November 27, 2018, the Social Security Administration issued a press release announcing its revision of the maximum amount of earnings subject to Social Security tax for 2018 from $128,700, as...
IRS to Begin Assessing Penalties for Employer Shared Responsibility Provisions
The IRS has announced, through a series of questions and answers, that it will begin the process of assessing penalties for violations of the Affordable Care Act's ("ACA"s) employer shared...
DOL Extends Transition Period for BICE and Other Exemptions by 18 Months
The DOL finalized its proposed 18-month extension - from January 1, 2018 to July 1, 2019 - of the Transition Period for the Best Interest Contract Exemption ("BICE"), Principal Transactions...
ACA’s PCORI Fee Increases
IRS Notice 2017-61 provides that the latest Patient Centered Outcomes Research Institute ("PCORI") fee amount for policy and plan years that end on or after October 1, 2017, and before October 1,...
FINRA’s New Qualification and Registration Rules Effective October 1, 2018
Last month, the Securities and Exchange Commission (SEC) approved a new set of rules proposed by the Financial Industry Regulatory Authority (FINRA) intending to consolidate and simplify...
Massachusetts Increases Employers’ Health Care Assessments
Massachusetts Governor Baker has signed Bill H. 3822 "An Act Further Regulating Employer Contributions to Health Care" (the "Act"), which will temporarily increase fees for the state's Employer...
Amendments to the Tax Cuts and Jobs Act; Senate Version of Tax Bill Unveiled
Yesterday, Senate Republicans unveiled their version of the tax bill (the "Senate Bill"). This comes one week after House Republicans first introduced the Tax Cuts and Jobs Act (the "House Bill"),...
IRS Releases Guidance on QSEHRAs
The IRS has released guidance on the requirements for eligible small employers to offer qualified small employer health reimbursement arrangements ("QSEHRAs") to eligible employees. In Notice 2017-...
Tax Cuts and Jobs Act: Good News for 401(k) Plans, Bad News for Nonqualified Deferred Compensation
Yesterday, the Chair of the House Ways and Means Committee introduced the tax-writing body's inaugural bill, the Tax Cuts and Jobs Act (the "Act") outlining the federal tax reform plan. In general,...
Employer’s Honest Belief of FMLA Abuse Defeats Employee’s Retaliation Claim
The Third Circuit Court of Appeals, in Capps v. Mondelez Global, LLC, has ruled that an employer's decision to terminate an employee based on its honest belief that the employee misused FMLA leave...
Disability Claims Regulations Delayed
The DOL has proposed a 90-day delay in the effective date of the new ERISA disability claims regulations. This would change the effective date of the regulations to April 1, 2018. Background. In...
IRS Announces 2018 Retirement Plan Limitations
The Internal Revenue Service announced cost-of-living adjustments affecting certain dollar limitations for pension plans and other retirement-related limitations for 2018, as detailed in Notice...
IRS Guidance on Health Care Reporting Requirements for 2017 Income Tax Returns
The IRS has stated that it will not accept Forms 1040 for the 2017 tax year if the taxpayer does not report on the ACA's health coverage reporting requirements. This is the first year that the IRS...
Calculating Regulatory Assets Under Management
A question we frequently receive from our advisory firm clients is whether they are accurately calculating and reporting regulatory assets under management ("RAUM"). RAUM, as a metric, was first...
New Agency Rules Expand ACA’s Contraceptive Coverage Exceptions
The IRS, DOL and HHS have released two interim final rules that implement President Trump's executive order exempting certain employers from the ACA's contraceptive coverage mandate. The interim...
No New COBRA Election Period for Incapacity
A California District Court, in Regents of the Univ. of Ca. v. Stidham Trucking, Inc., has ruled that while a COBRA election period may be tolled during a period of incapacity, being incapacitated...
ACA Does Not Prohibit Lifetime Benefit Caps for Retiree-Only Benefit Plans
The Ninth Circuit Court of Appeals, in King v. Blue Cross and Blue Shield of Illinois, has ruled that the ACA does not prohibit lifetime benefit maximums for retiree-only plans. However, the court...
Pregnancy is Not a Pre-existing Condition for Disability Insurance
The U.S. Court of Appeals for the Eleventh Circuit, in Bradshaw v. Reliance Standard Life Insurance Co., has rejected a disability insurer's decision to deny disability benefits to an insured who...
BICE and Related Exemptions: Limiting Your Liability Until Full Implementation
Background - Transition Period May be Extended Until July 1, 2019 The DOL recently proposed to extend the transition period by 18 months (i.e., from January 1, 2018 to July 1, 2019) for the full...
Individual Supervisor May be Liable under FMLA
A Massachusetts District Court, in Eichenholz v. Brinks Incorporated, et. al., has determined that an individual supervisor may be held personally liable for violating an employee's FMLA rights....
Update Regarding EEOC Reporting Requirements
The Equal Employment Opportunity Commission ("EEOC") released an updated EEO-1 reporting form in August of 2016, which requires covered employers to provide employee pay data beginning in March...
IRS Releases ACA Affordability Rates for 2018
The Internal Revenue Service has released Revenue Procedure 2017-36 to implement index adjustments in 2018 for certain Affordable Care Act ("ACA") contribution percentages used for purposes of...
DOL Officially Proposes 18-month Delay Of Full Implementation Of BICE And Other Exemptions
Today, the DOL released its full proposal to extend the transition period by 18 months for the full implementation of the Best Interest Contract Exemption ("BICE"), the Principal Transactions...
IRS Guidance Clarifies Impact of Executive Order on ACA Mandate Penalties
The IRS recently released four information letters to clarify and confirm that the employer and individual mandate penalties of the Affordable Care Act ("ACA") continue to apply. The information...
DOL to Review Disability Claims Procedure Regulations
DOL recently announced that it will review ERISA's disability claims procedures regulations for questions of law and policy to determine if they should be amended, delayed, or withdrawn. The...
DOL Seeks 18-Month Delay of Best Interest Contract Exemption and Other Fiduciary Rule Exemptions
In an August 9, 2017 court filing, the U. S. Department of Labor ("DOL") announced that it had, on August 9, taken steps to delay the date for full implementation of the Best Interest Contract...
IRS Releases 2017 Draft Forms for ACA’s Employer Reporting Requirements
The IRS has released draft versions of the Forms 1094 and 1095 that employers will use to satisfy their ACA reporting obligations for the 2017 tax year. Background. The ACA amended the Internal...
Fifth Circuit Finds SPD to be Official Welfare Plan Document
The Fifth Circuit Court of Appeals, in Rhea v. Alan Ritchey, Inc. Welfare Benefit Plan, has confirmed that a welfare benefit plan's summary plan description ("SPD") could serve as the official plan...
“Cat’s Paw” Liability Theory Applies to FMLA Retaliation Claims
The Sixth Circuit Court of Appeals, in Marshall v. The Rawlings Company LLC, has issued a ruling that confirms the "cat's paw" is a valid theory of liability for FMLA retaliation or interference...
State Law Prohibiting Discretionary Clauses Not Preempted by ERISA
The Ninth Circuit Court of Appeals, in Orzechowski v. The Boeing Co Non-Union Long-Term Disability Plan, has ruled that ERISA preemption does not apply to a California law prohibiting discretionary...
Supreme Court Finds ERISA Exemption Applies to Religious Hospital Plan
The Supreme Court, in Advocate Health Care Network v. Stapleton, has ruled that ERISA's church plan exemption applies to employee benefit plans established by church-affiliated organizations. In...
New Fiduciary Rule Applies to HSAs
The Department of Labor ("DOL") has clarified that individuals who provide advice on health savings accounts ("HSAs") may be considered fiduciaries under its recently-released Fiduciary Rule if...
Recently-Enacted State-Level Legislation Imposes New Obligations on Financial Institutions, Investment Advisers and Service Providers to 403(b) Plans
Legislation recently enacted by two states obligates financial institutions and investment advisers, as well as service providers to non-ERISA 403(b) plans, to meet new compliance requirements....
CMS Proposes Change in Small Employer Enrollment Procedure
The Centers for Medicare & Medicaid Services ("CMS") has proposed a change in the method used by small businesses and their employees to enroll in insurance coverage through the Federal...
Agencies Release FAQs on Mental Health Parity
DOL, HHS and IRS have released FAQs about Affordable Care Act Implementation Part XXXVIII. Specifically, FAQs XXXVIII address whether certain requirements under the Mental Health Parity and...
Federal Court Finds City, Not Staffing Agency, Employer for FMLA Purposes
The Fourth Circuit Court of Appeals, in Quintana v. City of Alexandria, has ruled that the primary employer for an employee claiming FMLA violations was a municipality and not the staffing agency...
Court: Employer Need Not Translate COBRA Election Notice into Non-English Language
A federal district court in Florida has ruled that COBRA does not require an employer, acting in its role as group health plan administrator, to translate COBRA Election Notices into terminated...
Court Determines Employer Not Required to Notify Employee of FMLA Rights
The Tenth Circuit Court of Appeals has ruled, in Branham v. Delta Airlines, that FMLA does not require an employer to notify an employee who may be eligible for FMLA leave about her rights...
Two HHS Settlements for HIPAA Violations Include Penalties Totaling over $5 Million
HHS has announced two major settlements it has reached with covered entities to resolve alleged violations of the HIPAA Privacy and Security Rules. The terms of each settlement agreement require...
DOL Confirms June 9th Applicability Date of The Fiduciary Rule and Exemptions
The U.S. Department of Labor ("DOL") has confirmed that it will not seek to further delay the June 9, 2017 applicability date of the new fiduciary rule defining investment advice ("Fiduciary Rule"),...
IRS Guidance on Tax Treatment of Benefits Paid by Self-Funded Fixed-Indemnity Plans
The IRS has issued a Chief Counsel Advice addressing whether a benefit paid from an employer's self-funded, fixed-indemnity health plan is taxable when the average amount received by employees for...
House Passes ACA Reform Bill
The House of Representatives has passed a revised version of the American Health Care Act (the "AHCA") to implement certain changes to the Affordable Care Act ("ACA"). Although the ACHA was intended...
Covered Entity Agrees to Pay HHS $31,000 for Business Associate Agreement Failure
HHS has announced that a health care provider has paid $31,000 and agreed to implement a corrective action plan to settle potential violations of the Health Insurance Portability and Accountability...
The Wagner Law Group Receives IRS Approval of its Volume Submitter 403(b) Plan
The Wagner Law Group has again broken new ground by receiving IRS approval of its volume submitter 403(b) plan. The IRS's new pre-approved 403(b) plan program represents the first opportunity for...
Employer Liable for Failing to Furnish Life Insurance Conversion Information
The United States District Court for the Western District of Pennsylvania recently ruled, in Erwood v. Life Insurance Company of North America and Wellstar Health System, Inc. Group Life Insurance...
HHS Releases Final Rule Intended to Lower Premiums and Stabilize ACA Marketplace
HHS has issued a final rule intended to implement certain changes that insurers contend are necessary to help lower premiums and provide stability to the Affordable Care Act individual health...
HHS Releases HIPAA Guidance on “Man-in-the-Middle” Attacks
HHS has issued guidance to advise covered entities and business associates about certain risks attendant to using HTTPS inspection products to prevent third-parties from intercepting and altering...
Federal Court Says Insurer’s Recoupment Practice is Illegal
The United States District Court for the District of Connecticut recently declared, in Connecticut General v. True View Surgery Center One LP, that ERISA prohibited a health insurer's practice of...
DOL Announces 60-day Delay to Fiduciary Rule and Exemptions, and Makes Significant Changes to Transition Period Compliance
The U.S. Department of Labor's ("DOL") proposed 60-day delay to the new fiduciary rule defining investment advice ("Fiduciary Rule"), the Best Interest Contract Exemption ("BICE"), and other related...
Federal Court Says Insurer’s Practice of Cross-Plan Offsetting is Illegal
The United States District Court for the District of Minnesota recently determined, in Peterson v. UnitedHealth Group, Inc., that a health insurer's practice of "cross-plan offsetting" was illegal...
IRS Clarifies the Rules for Disposal of Cafeteria Plan Forfeitures
The IRS has issued guidance on the rules for disposing of unused funds in a cafeteria plan where the plan's sponsor discontinues its business operations. In Information Letter 2016-0077, the IRS...
House Committees Release Proposals to “Repeal and Replace” ACA
Two House of Representatives Committees have each released separate budget proposals that, after review and mark-up, will form the American Health Care Act ("AHCA"), the first in a series of...
IRS Extends Deadline for Small Employers to Furnish QSEHRA Notice to Employees
The IRS has issued Notice 2017-20 to extend the deadline for employers who establish a qualified small employer health reimbursement arrangement ("QSEHRA") to send a required notice to employees...
Hardship Distributions
In recent months, the IRS has provided guidance with respect to hardship withdrawals from tax-qualified plans. In an October 2016 entry on its website, Hardship Distribution Tips from EP Exams, the...
Federal Court Finds FMLA Retaliation When Employer Revokes Telework Arrangement
The Seventh Circuit Court of Appeals recently determined, in Wink v. Miller Compressing Co., that an employer had retaliated against an employee in violation of the Family and Medical Leave Act of...
IRS Proposes Update to Mortality Tables for Defined Benefit Pension Plans
In recent months, the IRS has provided guidance with respect to hardship withdrawals from tax-qualified plans. In an October 2016 entry on its website, Hardship Distribution Tips from EP Exams, the...
IRS Issues Proposed Regulations Redefining Dependent for Federal Tax Purposes
The Internal Revenue Service has issued proposed regulations that redefine the term "dependent" under the Internal Revenue Code. In particular, the proposed regulations implement the changes made to...
DOL Seeks Fiduciary Rule Delay
In recent months, the IRS has provided guidance with respect to hardship withdrawals from tax-qualified plans. In an October 2016 entry on its website, Hardship Distribution Tips from EP Exams, the...
President Trump Issues Memorandum Delaying Fiduciary Rule
Friday, February 3, 2017 - The waiting and speculation as to the actions that the Trump Administration might take with respect to the DOL Fiduciary Rule ("Fiduciary Rule") has ended. This afternoon,...
Updated Law Alert on Fiduciary Rule
We would like to update the ERISA LAW ALERT sent earlier today. In the Alert, which was based on a draft version of the Executive Memorandum, we stated that the DOL Fiduciary Rule would be delayed...
FMLA Notice Failure is FMLA Interference
The Sixth Circuit Court of Appeals recently determined, in Casagrande v. OhioHealth Corp., that an employer violated the Family and Medical Leave Act of 1993 ("FMLA") when it failed to notify an...
President Trump Issues ‘Two-for-One’ Regulations Executive Order
On Monday, January 30th, President Trump issued an executive order providing that, unless otherwise prohibited by law, in the event an executive department or agency proposes or promulgates a new...