Once again, the U.S. Supreme Court has declined to hear a case concerning whether wedding vendors can refuse to provide services to same-sex wedding ceremonies based on their First Amendment religious beliefs. The case - Arlene's Flowers Inc. v. Washington - came on appeal from the Washington Supreme Court, which had affirmed a lower court ruling that a florist’s refusal to provide flowers for a same-sex wedding Read More
Immediately Following Recent Guidance, DOL Initiates Cybersecurity Retirement Plan Audit Initiatives
The Employee Retirement Income Security Act of 1974 (ERISA) became law before the computer age, so there are no provisions in the Act dealing with cybersecurity. However, in April 2021, the DOL released its first-ever guidance on cybersecurity for retirement benefit plan sponsors, record keepers, service providers, and participants. That guidance came in three forms: Tips for Hiring a Service Provider with Read More
More Biometric Litigation: Former Employee Files Privacy Suit Against Dollar Tree
A former Dollar Tree employee in Illinois has filed a proposed class action against the company and its subsidiary, Family Dollar Inc., for violating the Illinois Biometric Information Privacy Act (BIPA) by requiring employees to scan their fingerprints every day to clock in and out of work. BIPA prohibits private entities from collecting, storing, buying, or selling an individual’s biometric information without Read More
Supreme Court Rejects Another ACA Challenge and Leaves ACA Intact
On June 17, 2021, the U.S. Supreme Court ruled that Texas - along with 17 other states and two individuals - lacked standing to challenge the Affordable Care Act’s (ACA) individual mandate to purchase health insurance. Congress eliminated the monetary penalty for not complying with the mandate in 2017, effectively making the ACA’s individual mandate provision unenforceable. In a 7-2 decision, the high court found Read More
Third, Eighth, and Ninth Circuits to Address Jurisdiction for COVID-19-Related Injury and Wrongful Death Cases
Three federal appellate courts are set to address whether COVID-19-related injury and wrongful death litigation belong in state courts where the cases originated or in federal courts under the Federal Officer Removal Statute. Third Circuit In June, a Third Circuit panel heard arguments in a pair of cases where two New Jersey nursing homes accused of failing to protect patients from COVID-19 are seeking to have the Read More
GAO Releases ERISA Enforcement Report; Highlights COVID-19 Challenges, Fiduciary Breaches, and Prohibited Transactions
On May 27, 2021, the U.S. Government Accountability Office (GAO) released the results of a 15-month investigation into ERISA enforcement by the Department of Labor’s Employee Benefits Security Administration (EBSA). EBSA is charged with protecting the rights of participants in employer sponsored benefit plans. As of fiscal year 2020, this included about 154 million participants in 722,000 retirement plans and 2.5 Read More
Walmart Hit With Biometric Privacy Case by Warehouse Worker
A former warehouse worker has filed potential class action claims against Walmart, alleging that the retailer violated his and others’ biometric privacy rights by tracking workers in its Illinois distribution facility using voice recognition software without the workers’ consent. In Barton v. Walmart Inc., plaintiff Andrew Barton filed suit alleging that Walmart was in violation of the Illinois Biometric Information Read More
IRS Provides “Gloss” to Definition of Involuntary Termination and Eligibility for the ARPA COBRA Subsidy
Recently, the IRS issued Notice 2021-31 that provides guidance for employers, plan administrators, and health insurers regarding the tax credit available to them under the American Rescue Plan Act of 2021 (ARPA) for providing continuation health coverage to certain individuals under COBRA. Under ARPA, a 100% COBRA premium subsidy and other COBRA benefits are available to qualifying assistance eligible individuals Read More
U.S. Supreme Court Strikes Down NCAA Rules Restricting Education-Related Compensation and Benefits for College Athletes
On June 21, 2021, the U.S. Supreme Court unanimously upheld a Ninth Circuit ruling that the National Collegiate Athletic Association’s (NCAA) rules limiting athletes’ education-related compensation and benefits violate U.S. antitrust laws. In Alston v. NCAA, the high court resolved a circuit split on whether the NCAA rules limiting education-related benefits to student athletes was in violation of the Sherman Read More
Solving a Circuit Split? Supreme Court to Hear Fiduciary Breach Excessive Fee Case
On July 2, 2021, the U.S. Supreme Court granted certiorari in Hughes v. Northwestern University to address the split among several circuit courts on the pleading standard that applies to breach of fiduciary duty claims under ERISA. The issue coming before the eight Supreme Court justices this fall (Justice Amy Coney Barrett recused herself from the case) is this: Whether allegations that a defined-contribution Read More
