U.S. House Rep. Nick Langworthy (R-NY) recently proposed during a House Oversight Committee Meeting that pharmacy benefit managers (PBMs) should be health plan fiduciaries. As fiduciaries under federal law, PBMs would have to make decisions that lower health plan costs and benefit patients. According to Langworthy, the lack of a fiduciary duty to health plans is one reason PBMs charge excessive fees, push more Read More
Former Director Accuses Netflix of Creating Sexual Workplace Culture
A former risk management director has filed a wrongful termination lawsuit against Netflix, alleging that the streaming service giant fostered a sexual workplace culture that subjected her to unwanted sexual advances. The case is Jessica Combs v. Netflix Inc., Case Number 24STCV18761, Superior Court of the State of California, County of Los Angeles. Jessica Combs recently filed claims of discrimination, Read More
IRS Issues Final and Proposed RMD Regulations Implementing SECURE and SECURE 2.0 Act Changes
The Internal Revenue Service (IRS) recently published final regulations that update the required minimum distribution (RMD) rules for qualified plans, including 401(k) plans. The final regulations implement changes made by the SECURE and SECURE 2.0 Acts and generally follow the proposed rules with a few modifications. Furthermore, the IRS published proposed regulations that address other RMD issues under the Read More
I.L. Federal Judge Approvals $9M White Castle Fingerprint BIPA Settlement
An Illinois federal district court judge has given final approval to a $9.39 million settlement in a lawsuit against White Castle by a group of employees who claimed that the company had violated their rights under the Biometric Information Privacy Act (BIPA). The case is Latrina Cothron et al. v. White Castle System Inc. et al., Case Number 1:19-cv-00382, U.S. District Court for the Northern District of Read More
Fifth Circuit Affirms Class Certification in Fringe Benefit Mismanagement Suit
The U.S. Court of Appeals for the Fifth Circuit has affirmed a lower court’s certification of a class of more than 290,000 workers against several benefits administration companies. However, the Court also ruled that this Employee Retirement Income Security Act (ERISA) suit, in which workers allege mismanagement of their fringe benefits, should proceed as an opt-out rather than a mandatory class action. The case is Read More
Legislative Developments: Pregnancy and Nursing Protections for Employees
Employers should be aware of recent federal legislation that has created new rights for pregnant and nursing employees. Some states also have passed state legislation that creates new or additional rights that employers must follow, depending on the states in which they operate. What follows is a summary of new legislation that impacts pregnant and nursing employees in the workplace. Federal Laws Congress Read More
DOL Seeks to Keep ERISA Investment Advice Regulations in Place
The U.S. Department of Labor (DOL) recently filed a reply brief in a lawsuit brought by insurance industry groups seeking to block new regulations that expand the definition of fiduciary under the Employee Retirement Income Security Act (ERISA). In its brief, the DOL asked the Court to deny a motion for a preliminary injunction that would prevent the agency from implementing and enforcing the new regulations. The Read More
Former NBCUniversal Worker Claims Termination Based on HIV Status
James Williams, an animation technician who had worked at Universal Studios Hollywood since 2022, has sued NBCUniversal under California’s Fair Employment and Housing Act. Williams claims that after his employer reprimanded him for missing work due to illness, he was fired two days after submitting paperwork for intermittent leave under California’s Family Rights Act based on his HIV status. The case is Williams v. Read More
Courts Issue Injunctions Blocking Expansion of ACA Section 1557 to Prohibit Discrimination Based on Gender Identity
A Mississippi federal district court has issued a nationwide injunction and stay on some of the new federal regulations concerning Affordable Care Act (ACA) Section 1557, which prohibits discrimination in specified health programs and activities based on certain protected characteristics. The regulations include a new and expanded definition of sex discrimination. The case is Tennessee v. Becerra, 2024 WL Read More
Fourth Circuit Affirms Dismissal of FMLA Retaliation Suit Based on Credibility Concerns
A three-judge panel of the U.S. Court of Appeals for the Fourth Circuit affirmed the summary judgment dismissal of a former worker’s FMLA retaliation and interference case in favor of Baltimore Gas & Electric Co., parent company Exelon Corp., and several individual employees. The Court ruled that the gas company’s suspicions of dishonesty concerning the former mechanic’s request for medical leave based on Read More
