The U.S. Court of Appeals for the Second Circuit upheld a lower court ruling that C&S Wholesaler Grocers, Inc. (C&S) was not responsible for a $58 million payment to a Teamsters pension fund. A unanimous three-judge panel of the court noted that an ERISA provision could make a successor liable for pension payments in some circumstances. However, the panel concluded that the provision did not apply in the case Read More
On Remand from Supreme Court, Eighth Circuit Rules That ERISA Does Not Preempt State PBM Regulation
The U.S. Court of Appeals for the Eighth Circuit recently issued its decision in Pharm. Care Mgmt. Ass'n. v. Wehbi, 2021 WL 5355916 (8th Cir. 2021), after reconsidering its prior ruling on remand from the U.S. Supreme Court. The Eighth Circuit reversed course from the prior ruling and concluded that ERISA did not preempt a North Dakota state law that governed relations between pharmacies and pharmacy benefit managers Read More
New Audit Rules for Employee Benefits Plans Take Effect
After the U.S. Department of Labor expressed concerns about the quality of audits in employee benefit plans, the American Institute of Certified Public Accountants (AICPA) released a Statement on Auditing Standards (SAS 136) to address those concerns. Originally slated to go into effect in 2020, AICPA delayed implementing the audit rules for one year due to the COVID-19 pandemic. As a result, SAS 136 will apply to Read More
Former Washington NFL Team Employees Share Workplace Misconduct Incidents with House Committee
The U.S. House of Representatives Oversight and Reform Committee held a two-hour roundtable discussion on February 3, 2022, with six former Washington Football Team (WTF) employees concerning sexual harassment and workplace misconduct claims under the team's owner Dan Snyder. An attorney for Snyder has categorically denied the accusations by former employees, some of which arose for the first time during the Read More
Sex Discrimination Includes Discrimination Based on Sexual Orientation and Gender Identity Under ACA Section 1557
The U.S. Department of Health and Human Services (HHS) published new guidance in January 2022 reaffirming the definition of sex discrimination under Section 1557 of the Affordable Care Act (ACA). HHS states that statutes prohibiting discrimination based on race, color, national origin, sex, age, or disability apply to all health programs or related activities receiving federal funding. More specifically, the HHS Read More
NJ Court Orders Judge to Undergo Mental Exam in Workplace Bias Suit
A U.S. magistrate judge for the U.S. District Court for the District of New Jersey granted the defendant’s request that Superior Court Judge Deborah M. Gross-Quatrone undergo an independent medical exam (IME) in her workplace discrimination claims against Bergen County Superior Court officials. The case is Deborah Gross-Quatrone v. Bonnie Mizdol et al., case number 2:17-cv-13111, U.S. District Court for the District Read More
CA Federal Judge Awards $20M to Class Attorneys in UnitedHealth ERISA Suit
A California federal magistrate judge has awarded over $20 million in attorney fees and costs to class counsel in its ERISA suit win over United Behavioral Health (UBH), a UnitedHealth Group unit. Although the magistrate judge slightly reduced their request, the award largely satisfied the class counsel's request for fees and costs. Justification of the Attorneys’ Fees and Costs Awards The court justified the Read More
Upcoming ERISA Cases for Benefits Attorneys to Monitor
Various ERISA cases are pending at the U.S. Supreme Court and lower federal courts that could significantly affect ERISA law. Here is an overview of the cases you may wish to monitor in the upcoming months. High Court Could Consider Challenge to State Automatic-IRA Programs California Secure Choice Retirement Savings Program, or CalSavers, requires California workers to have a portion of their earnings Read More
Outdoor Guide Cos. Continue Challenge to DOL Wage Rule at the 10th Circuit
An outdoor guide company and a trade association representing several such companies have filed suit challenging the authority of President Joe Biden through the U.S. Department of Labor (DOL) to implement a federal minimum wage hike for federal contractors. This wage increase would extend to guides and outfitters on federal lands. Duke Bradford, owner of Arkansas Valley Adventure LLC d/b/a AVA Rafting and Read More
See’s Candies Fails to Dismiss Worker Lawsuit Over Spouse’s Death from COVID
In See's Candies Inc. et al. v. Superior Court of California for the County of Los Angeles, filed in the Court of Appeal of the State of California, Second Appellate District, a California appeals court in early January 2022 refused to grant See's Candies Inc.’s demurrer in a case involving the death of an employee’s husband from the coronavirus. The lawsuit alleges that See’s insufficient safety protocols led to a Read More
