Salesforce and class counsel recently filed a motion for preliminary settlement approval in a California district court. Under the terms of the non-reversionary settlement, Salesforce will pay $1.35 million to more than 50,000 class members in two Employment Retirement Income Security Act (ERISA) cases. Employees alleged that Salesforce, its board, and its investment committee violated their fiduciary duties under Read More
When Offering Resignation In lieu of Termination May Be Preferable
While termination is never easy for an employer, allowing "resignation in lieu of termination" can be preferable for all parties involved in some circumstances. Resignation allows employees to tell future job prospects that they left voluntarily and may insulate employers from potential legal risks. Employers should consider some factors in determining whether allowing a voluntary resignation rather than Read More
Federal Judge Refuses to Dismiss Intuit Lawsuit as 401(k) Forfeiture Suits Continue to Proliferate
A California federal judge recently refused to dismiss a lawsuit against Intuit in which retirement plan participants claim that the company misused forfeited funds from its 401(k) plan. The denial of the bulk of Intuit’s motion to dismiss kept the core claims of the lawsuit intact, illustrating how 401(k) forfeiture suits under the Employment Retirement Income Security Act (ERISA) are gaining momentum in some Read More
HHS Adjusts Civil Monetary Penalties for HIPAA, MSP, and SBC Violations as of August 8, 2024
The U.S. Department of Health and Human Services (HHS) has published its Annual Civil Monetary Penalties Inflation Adjustment in the Federal Register, which sets the amount of civil penalties for violating laws concerning the Health Insurance Portability and Accountability Act (HIPAA), the Medicare Secondary Payer (MSP) statute, and the provision of Summary of Benefits and Coverage (SBC). These adjustments apply Read More
11th Circuit Rules Rejects Father’s FMLA Claim for Leave to Prepare for Child’s Birth
The U.S. Court of Appeals for the Eleventh Circuit has ruled that an expectant father had no right to leave under the Family and Medical Leave Act (FMLA) to travel out of state and prepare for his child’s birth. The case is Tanner v. Stryker Corporation of Michigan, 11th Cir., No. 22-14188 (June 20, 2024). Tristan Tanner became an employee of Stryker, a medical technology company when it acquired Tanner's former Read More
Bank of America Faces ERISA Suit Claiming Misuse of Forfeited 401(k) Funds
Bank of America has become the latest employer to face a class action lawsuit alleging misuse of forfeited 401(k) funds. Retirement plan participants claim that the bank breached its fiduciary duty under the Employee Retirement Income Security Act (ERISA) by improperly benefiting from 401(k) matching funds that employees forfeited when they left the company. The case is Becerra v. Bank of America Corp., which was Read More
Circuit Split Deepens with Home Depot’s 11th Circuit ERISA Win
A three-judge panel of the U.S. Court of Appeals for the Eleventh Circuit has upheld the dismissal of a 401(k)-plan mismanagement suit brought by plan participants in favor of Home Depot. The ruling affirmed a Georgia federal court’s grant of summary judgment in the suit, in which plan participants claimed that the home improvement retailer violated the Employee Retirement Income Security Act (ERISA) in charging Read More
How Well-Constructed Dress Codes Can Promote Civility
While one may not automatically equate dress codes with workplace civility, dress codes do have a role in promoting a respectful and professional workplace culture. Conversely, a dress code policy can lead to discord among employees and even violate employees’ legal rights under some circumstances. Employers may enforce job-related dress code policies that apply equally to all employees, regardless of protected Read More
September 2024 | West Coast, Up High, and Down Low
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Fifth Circuit Upholds Decision Overturning Key Portions of Surprise Billing IDR Regulations
The U.S. Court of Appeals for the Fifth Circuit affirmed a lower court decision that vacated critical portions of the surprise billing independent dispute resolution (IDR) provisions of the Consolidated Appropriations Act, 2021 (CAA, 2021). The case is Texas Med. Ass’n v. HHS, 2024 WL 3633795 (5th Cir. 2024). Relying on the recent U.S. Supreme Court’s decision in Loper Bright, the Fifth Circuit held that the CAA, Read More
