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
The Meaning of ‘Woke’
In the three years since George Floyd’s death, systemic oppression, police brutality, racism, and workplace discrimination have come to the forefront of our collective consciousness. This era of heightened awareness has given rise to social movements, diversity, equity, and inclusion (DE&I) programs in the workplace, and the concept of “wokeness” – or awareness of systemic issues related to race, gender, and Read More
Proposed Regulations for Pregnant Workers Fairness Act Issued
The U.S. Equal Employment Opportunity Commission (EEOC) published proposed rules to implement the Pregnant Workers Fairness Act (PWFA) on August 11, 2023. The EEOC will accept public comments on the rules through October 10, 2023, and it is specifically seeking comments on other possible accommodations and the costs of accommodations. The PWFA, which went into effect on June 27, 2023, expands protections for Read More
10th Circuit’s PBM Ruling Could Erode Similar State Laws
A recent Tenth Circuit decision invalidating portions of an Oklahoma law regulating pharmacy benefit managers (PBMs) based on preemption could negatively affect similar laws in other states. The appellate court found that the Employee Retirement Income Security Administration (ERISA) and Medicare Part D preempted the challenged provisions of the PBM law. In its decision, the Tenth Circuit also explicitly acknowledged Read More
NLRB Shifts Balance Toward Employee Rights When Assessing Lawfulness of Employer Rules
The National Labor Relations Board (NLRB) recently announced a decision in Stericycle Inc., in which it adopted a new standard for evaluating the legality of employer policies under Section 8(a)(1) of the National Labor Relations Act (NLRA). In its ruling, the NLRB overruled its previous decisions in Boeing Co. (2017) and LA Specialty Produce Co. (2019), in which it had articulated a different standard. The NLRB Read More
10th Circuit Invalidates OK PBM Law on Basis of ERISA, Medicare Preemption
The U.S. Court of Appeals for the Tenth Circuit recently overturned portions of Oklahoma’s Patient’s Right to Pharmacy Choice Act, a state law regulating pharmacy benefit managers (PBMs), who serve as intermediaries between pharmacies, insurance companies, and drug companies. A three-judge panel reversed a federal district court judge’s April 2022 ruling in finding that the Act’s restrictions on network access and Read More
DOL Seeks Comment on SECURE 2.0 Reporting, Disclosure Changes
The U.S. Department of Labor (DOL) is seeking public comment on various provisions of SECURE Act 2.0. The Employee Benefit Security Administration (EBSA) published the 60-day request for public comment in the Federal Register on August 11, 2023. Comments are due by October 10, 2023, and can be submitted via the federal rulemaking portal at www.regulations.gov or by mail to the DOL. President Joe Biden signed Read More
Former Employee Challenges Employer’s Diversity Program on Religious Discrimination Grounds
Courtney Rogers, a former recruiter for Compass Group USA, recently filed a lawsuit against the company in the U.S. District Court for the Southern District of California. Rogers argues that Compass violated Title VII of the Civil Rights Act of 1964 after it terminated her for requesting a religious accommodation to avoid working on a corporate diversity, equity, and inclusion (DE&I) program that excluded white Read More
Federal Court Temporarily Halts Additional Provisions of No Surprises Act IDR Process
A federal district court has temporarily halted additional provisions of the No Surprises Act independent dispute resolution (IDR) process, which the legislation mandates some out-of-network providers, group health plans, and insurers use to resolve billing disputes. The case is Texas Med. Ass’n v. HHS, 2023 WL 4977746 (E.D. Tex. 2023). On two previous occasions, the court has set aside portions of U.S. Department Read More
