President Joe Biden signed the Pregnant Workers Fairness Act (PWFA) into law at the end of 2022. The law requires employers with fifteen or more employees to provide reasonable accommodations to qualified workers or applicants with known limitations related to pregnancy, childbirth, or related medical conditions. The provisions in the law build and expand upon Title VII of the Civil Rights Act and the Americans with Read More
Reviewing Executive Compensation as Due Diligence in Acquiring a U.S. Company
As a company conducts due diligence as part of its plans to acquire a U.S. company, it should review the executive compensation of the company being acquired. This review not only allows a better understanding of the compensation structure but may uncover any liabilities or compliance issues that might affect the purchase price in the transaction. Compensation information is necessary to properly draft appropriate Read More
EEOC Settles Landmark AI Discrimination Workplace Suit
The U.S. Equal Employment Opportunity Commission (EEOC) has settled its first discrimination lawsuit involving artificial intelligence (AI) in a New York federal district court. The EEOC and iTutorGroup filed a joint settlement, which provides that the tutoring company will pay $365,000 to resolve the charges against it. The EEOC alleged that iTutor’s AI hiring selection tool illegally screened out female applicants Read More
11th Circ. Upholds Denial of Severance Claim by Former CSX Exec
In a unanimous decision, the U.S. Court of Appeals for the Eleventh Circuit upheld a lower court’s decision denying a severance package for Bryan Rhode, a former CSX executive. Like the lower court, the appellate rejected the plan participant’s allegations that a conflict of interest and a flawed investigation by a plan administrator led to the rejection of his claim. The case is Bryan Rhode v. CSX Transportation Read More
State Bans on Affirmative Action and the Impact on Corporate DE&I Programs
When the U.S. Supreme Court issued its recent decision striking down affirmative action in colleges and universities, workplace researchers forecast the quick demise of corporate diversity, equity, and inclusion (DE&I) programs. Their fears were realistic; a 2013 Harvard University study shows that racial diversity in the workplace significantly declined after several states outlawed affirmative action in college Read More
The Self-Funded Plan’s Guide To Gender-Affirming Coverage
By Tim Kennedy and Anne Tyler Hall (October 31, 2023) In recent years, the U.S. has seen an increase in the number of individuals identifying as transgender.[1] With this development, there also has been increased attention on transgender rights and protections, as well as an increase in the demand for employer-sponsored group health plans, or GHPs, to cover gender-affirmation benefits. Whether or how a GHP Read More
Ninth Circuit Decision in AT&T Case May Expose Retirement Plan Fiduciaries to New Attacks
The U.S. Court of Appeals recently revived a lawsuit against AT&T Services Inc. and its retirement plan fiduciaries after a district court had granted summary judgment in favor of the telecommunications giant. The published decision, binding in the Ninth Circuit, focused on indirect fees received by service plan providers. This issue potentially subjects retirement plan fiduciaries to legal attacks they have not Read More
Secure an Employee Plan’s Future by Proactively Self-Correcting
By Grant Shuman and Anne Tyler Hall, Hall Benefits Law SECURE 2.0 provides retirement plan sponsors an avenue to control the narrative in resolving any compliance issues under EPCRS, say Grant Shuman and Anne Tyler Hall of Hall Benefits Law. Retirement plan sponsors can take advantage of new and expanded self-correction remedies under the Employee Plans Compliance Resolution System even before the IRS releases Read More
Common Mistakes in 457 Plans of Tax-Exempt Organizations
Internal Revenue Code (IRC) Section 457 details tax consequences for deferred compensation retirement plans for tax-exempt organizations (EOs) and state and local government entities (S&L plans). Plans that meet certain eligibility requirements under Section 457(b) have deferred tax benefits, and those that fail to meet these requirements are subject to tax consequences under Section 457(f). Here are some common Read More
IRS Warns Plan Sponsors of ESOP Compliance Risks
The Internal Revenue Service (IRS) issued IR-2023-144 (“IRS Notice”) on August 29, 2023, which concerns Employee Stock Ownership Plans (ESOPs). These plans allow employees to accrue ownership of company stock over time. The IRS Notice warns employers who sponsor ESOPs to be wary of the many compliance rules that these plans involve. In particular, the IRS expresses concern in its Notice that some ESOP transactions Read More
