The Office for Civil Rights (OCR), a division of the U.S. Department of Health and Human Services (HHS), has announced a $3 million settlement with Solara Medical Supplies, LLC, a covered entity under the Health Insurance Portability and Accountability Act (HIPAA). The unauthorized disclosures stemmed from a cyberattack that resulted in violations of the HIPAA security and breach notification rules. OCR began its Read More
More I-9 Audits for Employers Expected Under Trump Administration
As the Trump administration takes swift action to change U.S. immigration policies, employers should expect increased work authorization enforcement actions. To that end, employers should review their employees’ I-9 forms for compliance in anticipation of potential I-9 audits. I-9 audits are the most common form of immigration enforcement that the federal government undertakes. During the previous Trump Read More
HHS Delays Effective Date of Final Rule Modifying HIPAA Retail Pharmacy Standards
The U.S. Department of Health and Human Services (HHS) has extended the effective date of its final rule updating electronic transaction standards for retail pharmacy transactions under the Health Insurance Portability and Accountability Act (HIPAA). The final rule also modifies the Medicaid pharmacy subrogation standard. These final rules were scheduled to go into effect on February 11, 2025. The new effective date Read More
UnitedHealth TPA Settles DOL Suit Based on Improper ER Claim Review Processes for $20.25M
UMR, which is UnitedHealth-owned third party administrator (TPA), agreed to pay $20.25 million in a U.S. Department of Labor (DOL) suit over their process for review of emergency room (ER) claims. Vincent Micone III, acting DOL secretary, has asked the U.S. District Court for the Western District of Wisconsin to approve a consent order and judgment to resolve the pending court case. In July 2023, the DOL filed a Read More
Walmart Rolls Back DEI Policies, Faces Backlash from State AGs and Shareholders
As many large American companies such as McDonald’s, Google, and Microsoft, have abandoned their diversity, equity, and inclusion (DEI) programs over the past few months, Walmart has followed suit. However, major shareholders and the attorneys general of 13 states are pushing back on that decision, demanding to know how the company will combat employment discrimination. In November, Walmart announced that it would Read More
State Republican Finance Officials Urge SEC and DOL to Adopt Regulations Prohibiting Use of ESG or DEI Factors
Republican state finance officials from 18 states have urged the acting heads of the U.S. Securities and Exchange Commission (SEC) and U.S. Department of Labor (DOL) to adopt regulations for asset managers and retirement plan sponsors banning the use of environmental, social and governance (ESG) or diversity, equity and inclusion (DEI) factors. The officials pointed to a recent legal loss by American Airlines as Read More
Agencies Report on Mental Health Parity Compliance; Highlight Enforcement Activity
The U.S. Department of Labor (DOL), U.S. Department of Health and Human Services (HHS), and the Internal Revenue Service (IRS) recently released their 2024 Mental Health Parity and Addiction Equity Act (MHPAEA) Report to Congress. DOL also released its FY 2023 MHPAEA Enforcement Fact Sheet. The Consolidated Appropriations Act, 2021, provides for an annual report specific to nonquantitative treatment limitation (NQTL) Read More
Senior Executives Balk on Providing Child Care Benefits, According to HR Professionals
According to a recent Harris Poll and KinderCare Learning Companies survey, 8 out of 10 human resources (HR) professionals report difficulties convincing senior executives that investing in childcare benefits for workers is beneficial. The survey, which included 152 senior executives and HR leaders from Fortune 500 companies shows that the C-suite is uncertain that an upgraded investment in childcare would result in Read More
Federal Court Dismisses Breach of Fiduciary Duty Claim Stemming from High Drug Costs Against Johnson & Johnson for Lack of Standing
A New Jersey federal district court has dismissed the plaintiff’s breach of fiduciary claims in Lewandowski v. Johnson & Johnson, et al. No 3:24-cv-00671 (D.N.J. January 24, 2025) without prejudice and with leave to amend the complaint, based on standing. In her lawsuit against Johnson & Johnson and its Pension & Benefits Committee, Ann Lewandowski alleged that the defendants collectively breached their Read More
Seventh Circuit Cites Noncompete Provision in Stock Agreement in Reopening Lawsuit Seeking Clawback from Company’s Former Manager
The Seventh Circuit has reinstated a lawsuit by an auto parts corporation seeking a clawback of the proceeds a former plant manager received from selling his stock shares. The Court reversed the lower court’s grant of summary judgment in favor of the former manager, stating that it should not have considered the reasonableness of the noncompete clause in the stock agreement. The case is LKQ Corporation v. Robert Read More
