Especially for growing businesses, claims of pay inequities could do substantial economic and reputational harm. If structured with risk management in mind, pay equity audits are instrumental in reducing long-term legal and reputational costs. Under relevant federal laws, employers’ efforts to remediate pay disparities may limit liability based on bad faith or intentional violations. In certain states, safe harbor Read More
Plaintiffs Claim Fiduciary Breach in Recent Retirement Plan Class Action While Acknowledging Insufficient Data to Determine Reasonable Fee Levels
Nestle USA and its board of directors have been served with an ERISA class action on behalf of 401(k) plan participants and their beneficiaries. The suit alleges that Nestle and its representatives failed to monitor fees or act to reduce expenses passed along to plan participants. Filed in the U.S. District Court for the Eastern District of Wisconsin on October 9, 2020, the suit -- Guyes et al. v. Nestle USA Inc. Read More
HBL’s Weekly Employment Law Update Back to School: Three Tips to Avoid FFCRA Liability Traps
With states and localities across the country taking varying and, in some cases, uncertain approaches to reopening schools, employers have struggled to properly administer Families First Coronavirus Response Act (FFCRA) leaves based on school closures and childcare unavailability. Under its powers to administer and enforce FFCRA, the Department of Labor (DOL) has taken an active approach to penalizing Read More
IRS Clarifies “Qualifying Relative” Definition for Health Plans
The IRS recently released final regulations to clarify the definition of “qualifying relative” following the suspension of the personal exemption deduction for 2018-2025 created by the Tax Cuts and Jobs Act of 2017 (TCJA). Background In August 2018, the IRS issued Notice 2018-70 which stated that it would issue proposed regulations to clarify the definition of “qualifying relative” for the TCJA-created $500 Read More
Employers Beware! Retirement Plan Disclosures Are Required Under 408(b)(2)
Since 2012, retirement plan service providers have been required to provide compensation disclosures to plan sponsors every year under Section 408(b)(2) of the Employee Retirement Income Security Act (ERISA). Once plan sponsors have received the disclosures, they are in turn required to issue 404a-5 fee disclosures to plan participants. Under ERISA's prohibited transaction rules, a service agreement must be Read More
HBL’s Weekly Employment Law Update 3 Tips for Addressing Employees’ Political Speech
As we near our national election day, employers across the country have been struggling with managing disruptive political speech to the workplace. As your risk management partner, we offer the following three legal risk management tips for addressing employees’ political speech. Tip #1 – Focus on the “what” not the “why." When political arguments become disruptive or otherwise violate company policy, Read More
3 Tips for COVID-19 Risk Management
As the effects of the coronavirus pandemic are experienced across the country, wrongful death and gross negligence claims are on the rise, particularly by the families of employees who believe their loved ones may have come into contact with COVID-19 on the job. Under normal circumstances, workplace injuries and illnesses are handled through the workers’ compensation system. Wrongful death and gross negligence Read More
DOL Issues Revised FFCRA Regulations: Three Takeaways for Employers
On September 11, 2020, the Department of Labor (DOL) issued revised regulations, scheduled to go into effect on September 16, 2020, regarding the Emergency Paid Sick Leave and Expanded Family and Medical Leave requirements under the Families First Coronavirus Response Act (FFCRA). In response to an August 3, 2020 decision of the U.S. District Court of the Southern District of New York (District Court) declaring Read More
Three Tips for a Legally Defensible Interactive Process During the Pandemic and Beyond
For many employers, the COVID-19 pandemic illuminated ongoing legal compliance challenges. As one example, with a sudden and sharp increase in requests for accommodations under the American with Disabilities Act (ADA), employers across the country learned that they may benefit from a more streamlined and efficient ADA process. Just this week, on September 8, 2020, the Equal Employment Opportunity Commission (EEOC) Read More
