On July 9, 2021, the Pension Benefit Guaranty Corporation (PBGC) issued an interim final rule (IFR) on the process for eligible distressed multiemployer pension plans to calculate and apply for Special Financial Assistance (SFA) awards under the American Rescue Plan Act of 2021 (ARPA). Following is a summary of the key components of the IFR: SFA Award Calculation Plan sponsors that qualify for PBGC assistance may Read More
The ARPA Rescue Plan for Distressed Multiemployer Plans
Under the American Rescue Plan Act of 2021 (ARPA), certain financially troubled multiemployer pension plans are eligible for financial assistance from the Pension Benefit Guaranty Corporation (PBGC), which estimates that approximately 11 percent of multiemployer pension plans in the U.S. are in critical condition. Plan sponsors that qualify for PBGC assistance may apply for a one-time lump sum payment to cover all Read More
American Academy of Actuaries Provides Comments on ARPA’s Temporary Funding Relief Provisions for Multiemployer Pension Plans
On July 22, 2021, the American Academy of Actuaries (“the Academy”) provided comments to the Department of Treasury and the IRS on temporary funding relief under the American Rescue Plan Act of 2021 (ARPA). The comments pertain to interpretive issues and considerations for the temporary funding relief provisions outlined in sections 9701, 9702, and 9703 of ARPA as follows: Section 9701. Temporary Delay of Read More
California Grocery Stores Fined for Not Complying With COVID Leave Rules
California’s labor commissioner has levied fines totaling almost $448,000 against three El Super grocery stores for their failure to comply with California’s COVID-19 paid sick leave policy for 95 workers affected by the coronavirus. The state labor commissioner's office launched an investigation in September 2020 after receiving complaints from El Super employees and a referral from the labor union that represents Read More
Understanding the Interplay Between the No Surprises Act and State Laws
The No Surprises Act (NSA), which was part of the Consolidated Appropriations Act, 2021, that became law in December 2020, restricts medical providers from sending consumers surprise medical bills for emergency care, transport by air ambulance, or non-emergency care at an in-network facility when patients are unknowingly treated by an out-of-network doctor or lab. The NSA includes a provision that exempts Read More
Minnesota District Court Dismisses Cross-Plan Offsetting Claim
On May 20, 2021, the U.S. District Court for the District of Minnesota dismissed a breach of fiduciary duty class action against UnitedHealth Group over an overpayment recovery process known as cross-plan offsetting that the plaintiffs claimed is a prohibited transaction under ERISA. The court found that the plaintiffs lacked standing to challenge the practice since none of them had been denied benefits or suffered Read More
IRS Updates FAQs on ARPA-Related Paid Sick and Family Leave Tax Credits
On July 29, 2021, the IRS updated its FAQs on the paid sick and family leave tax credits under the American Rescue Plan Act of 2021 (ARPA). The updated FAQs now include wages paid for leave taken by workers who accompany individuals to COVID-19 vaccination appointments and those who care for individuals recovering from any COVID-19 vaccine-related illness. Following are the FAQs updated by the IRS on paid sick and Read More
WARN Act Violation Prompts Lawsuit Against WV Coal Mine
The United Mine Workers of America (UMWA) has filed suit against Cornerstone Labor Services for failure to give adequate notice of a mass layoff at its West Virginia Coal Mountain Mine in violation of the federal Worker Adjustment and Retraining Notification Act (WARN), which requires employers to give 60 days’ advance notice of a mass layoff or plant closing. The UMWA filed the suit on behalf of Local Union 8783, Read More
U.S. Women’s Soccer Team Asks Ninth Circuit to Reinstate Equal Pay Claim
On July 23, 2021, the U.S. Women’s National Soccer Team (USWNT) filed an appeal with the Ninth Circuit to revive their unequal pay claim against the U.S. Soccer Federation (USSF) that was dismissed by a California federal judge in May 2020. The case - Alex Morgan, et al v. United States Soccer Federation - was brought under Title VII of the Civil Rights Act and the Equal Pay Act. The women soccer players claimed Read More
Lumber Liquidators to Pay $7M to Settle Class Action Overtime Claims
Parties in a class action lawsuit against Lumber Liquidators have asked a New York court to approve a settlement deal of approximately $7 million to resolve any state and federal wage claims by workers who allege the flooring retailer denied them overtime pay by misclassifying them as exempt. In Ashleigh Mason et al. v. Lumber Liquidators, a group of former and current Lumber Liquidators store managers and store Read More
