A bipartisan group of legislators recently introduced H.R.8442 – Worker Flexibility and Choice Act, a bill allowing businesses to maintain gig workers as independent contractors. The bill also would provide some legal protections for those workers, despite their independent contractor status. As an independent contractor, the worker would receive a 1099 form from the business at the end of the tax year rather than a Read More
Cybersecurity Breach Suits Raise Questions About Liability for Benefits Plans
ERISA Claims Arising from Unauthorized Retirement Account Access Cybersecurity breaches concerning workers' personal information and retirement savings have increased liability risks for benefit plans and third-party administrators under federal benefits laws. In February 2021, the U.S. Government Accountability Office (GAO) issued a report warning about these increased legal risks for ERISA plan fiduciaries due Read More
DOL Regulations Expand Liability for Financial Advisors Giving Pension Rollover Advice
The U.S. Department of Labor (DOL) began fully enforcing its Prohibited Transaction Exemption 2020-02 as of July 1, 2022. These regulations apply to and expand liability for financial advisors giving clients pension rollover advice. Some aspects of the rule were already in effect. Still, advisors must now provide clients with a mandatory written explanation of why the investment professional or financial institution Read More
KFC Argues to Eleventh Circuit that EEOC Charge Isn’t a “Claim”
The U.S. Court of Appeals for the Eleventh Circuit recently heard arguments in PMTD Restaurants LLC v. Houston Casualty Co., case number 22-11391. PMTD, the owner of a KFC/Taco Bell franchise, argued that a Georgia federal district court erred in defining the word “claim” in its employment practices policy. More specifically, PMTD alleged that an U.S. Equal Employment Opportunity Commission discrimination charge Read More
2022’s Notable Health Law Rulings
The year of 2022 has been a year for major legal rulings impacting various aspects of health care and pharmaceutical law. The following is a summary of the most significant of those decisions: U.S. Supreme Court Overturns Roe v. Wade The U.S. Supreme Court’s highly controversial ruling in Dobbs v. Jackson Women’s Health Organization on June 24, 2022, overturned nearly 50 years of the constitutional right to Read More
University Medical Center’s Delayed Disclosure of HIPAA Hacking Breach Results in $875,000 Settlement
The Office of Civil Rights (OCR), a division of the U.S. Department of Health and Human Services (HHS), has reached an $875,000 settlement and an extensive corrective action plan (CAP) with a university medical center concerning its violation of HIPAA’s privacy, security, and breach notification rules. Hacking a medical center web server, containing protected health information (PHI) by an unknown third party, led to Read More
Eleventh Circuit Reinstates Lawsuit Seeking Equitable Relief by Participant in ERISA Life Insurance Plan
In Gimeno v. NCHMD, Inc., 2022 WL 2309436, the U.S. Court of Appeals for the Eleventh Circuit reversed the trial court's dismissal of a lawsuit for breach of fiduciary duty concerning an ERISA-governed life insurance plan. In reinstating the lawsuit, the Court of Appeals ruled that ERISA permits claims to recover money equal to benefits lost due to a breach of fiduciary duty. After a life insurance plan Read More
Eleventh Circuit Rejects Joint Employer Argument in FLSA Case
A three-judge panel has summarily denied a request for rehearing by the plaintiffs in Ramon Valle et al. v. Ceres Environmental Services Inc. et al., case number 21-12020, U.S. Court of Appeals for the Eleventh Circuit. In Valle, six laborers were seeking unpaid overtime and wages under the Fair Labor Standards Act (FLSA) from two environmental response companies stemming from their work during Hurricane Michael. A Read More
Costco ERISA Suit Ends in $5.1 Million Deal
A Wisconsin federal judge approved a $5.1 million settlement of a class action lawsuit against Costco concerning its 401(k) plan. Costco Wholesale Corp.'s retirement plan participants alleged that the company violated the Employee Retirement Income Security Act (ERISA). An independent fiduciary, Fiduciary Counselors, approved the settlement, which represents an amount that is about 16% of the allegedly excessive fees Read More
Application of WARN Act Complicated by COVID-19 Pandemic
The aftermath of the COVID-19 pandemic is making employer compliance with some federal laws, such as the Worker Adjustment and Retraining Notification (WARN) Act, more complicated. In addition, the rise of the remote workforce also is making compliance more difficult. Court ruling and changes in state laws are contributing to these ongoing issues concerning the WARN Act. The WARN Act is a federal law that Read More
