The U.S. Department of Labor (DOL), the U.S. Department of Health and Human Services (HHS), and the Department of Treasury recently issued final rules under the Mental Health Parity and Addiction Equity Act (MHPAEA). The final rules focus on nonquantitative treatment limitations (NQTLs), and the comparative analysis requirement established in the CAA, 2021. These rules provide new definitions, revise existing Read More
DOL Issues Updated Cybersecurity Guidance, Confirms It Applies to All Employee Benefit Plans
The U.S. Department of Labor’s (DOL’s) Employee Benefits Security Administration (EBSA) has issued DOL Compliance Assistance Release No. 2024-01. This compliance assistance release confirms that the agency’s 2021 updated guidance on cybersecurity applies to all employee benefits plans, including all health and welfare plans and retirement plans. EBSA has specifically updated its cybersecurity guidance, which Read More
SEC May Act Due to Court Rulings Invalidating DOL Fiduciary Regulations
The Investor Advisory Committee (IAC) of the U.S. Securities and Exchange Commission (SEC) recently held a public hearing featuring a panel discussion on investment advice. Established by the 2010 Dodd-Frank Act, the IAC recommends regulatory actions to the SEC. After the public hearing, various IAC committee members expressed a willingness to recommend that the SEC take action to clarify fiduciary investment Read More
October 2024 | Happy HBL-loween! Plan Sponsor Treats Inside
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CA Appellate Court Revives Age Discrimination Claim Following RIF
The California Court of Appeals recently found that a reduction in force (RIF) is not necessarily a sufficient reason to terminate an older worker. As a result, the Court revived a former Pacific World Corp. customer service manager’s age discrimination claim under the California Fair Employment and Housing Act (FEHA). However, the Court affirmed the dismissal of the remaining two claims -- disability discrimination Read More
Handling Workplace Incivility in Virtual Channels
Whether employees work in the office or remotely, most communications take place via email, Slack, Zoom, Teams, and similar virtual collaborative programs. However, uncivil behavior is increasingly permeating online communications and seems to occur more frequently than in person, leading to a toxic workplace atmosphere. Increased virtual hostility stems from online disinhibition, a phenomenon in which people feel Read More
Reassignment as a Reasonable Accommodation
The U.S. Equal Employment Opportunity Commission (EEOC) has referred to the reassignment or transfer of an employee as a reasonable accommodation under the Americans with Disabilities Act (ADA) as a last resort. Reassignment may be an option to consider if the only other option is termination, especially if the employee suggests it or is open to the option. Employers must first try to provide reasonable Read More
Ninth Circuit Reverses Dismissal of Sexual Harassment Claim Stemming from Colleague’s Instagram Posts
The U.S. Court of Appeals for the Ninth Circuit has reversed a federal district court decision dismissing a female public employee’s sexual harassment suit based on her male coworker’s Instagram posts. The Court ruled that although the posts were not addressed, sent, or shown to the female employee, they nonetheless affected her workplace and could result in employer liability. The case is Okonowsky v. Garland, 9th Read More
Federal Judges in Florida, Texas Throw Out FTC Non-Compete Ban
Litigation continues in various federal courts nationwide over the Federal Trade Commission's (FTC) rule banning most non-compete agreements. With the most recent court decision in Texas implementing a nationwide injunction as to the FTC rule, it is not likely that the rule will go into effect as planned on September 4, 2024, as most employers had expected. Texas Judge Issues Nationwide Injunction Striking Down Read More
IRS Letter Allows Employees to Allocate Discretionary Employer Contributions Among Various Benefits
The Internal Revenue Service (IRS) recently issued a private letter ruling concluding that employers may permit employees to allocate non-elective, discretionary employer contributions among various employee benefit programs without endangering the tax advantages of those programs. The affected employee benefit programs include 401(k) plans, retiree health reimbursement arrangements (HRAs), health savings accounts Read More
