According to a recent Harris Poll and KinderCare Learning Companies survey, 8 out of 10 human resources (HR) professionals report difficulties convincing senior executives that investing in childcare benefits for workers is beneficial. The survey, which included 152 senior executives and HR leaders from Fortune 500 companies shows that the C-suite is uncertain that an upgraded investment in childcare would result in Read More
Federal Court Dismisses Breach of Fiduciary Duty Claim Stemming from High Drug Costs Against Johnson & Johnson for Lack of Standing
A New Jersey federal district court has dismissed the plaintiff’s breach of fiduciary claims in Lewandowski v. Johnson & Johnson, et al. No 3:24-cv-00671 (D.N.J. January 24, 2025) without prejudice and with leave to amend the complaint, based on standing. In her lawsuit against Johnson & Johnson and its Pension & Benefits Committee, Ann Lewandowski alleged that the defendants collectively breached their Read More
Seventh Circuit Cites Noncompete Provision in Stock Agreement in Reopening Lawsuit Seeking Clawback from Company’s Former Manager
The Seventh Circuit has reinstated a lawsuit by an auto parts corporation seeking a clawback of the proceeds a former plant manager received from selling his stock shares. The Court reversed the lower court’s grant of summary judgment in favor of the former manager, stating that it should not have considered the reasonableness of the noncompete clause in the stock agreement. The case is LKQ Corporation v. Robert Read More
Title VII Compliance Amidst DEI Executive Orders and Criminal Investigation Threats
The requirements of Title VII are critical for all employers to know. However, strict compliance with Title VII is more important than ever considering two recent developments: the Trump administration’s executive orders targeting diversity, equity, and inclusion (DEI) programs and the U.S. Department of Justice’s (DOJ) memo addressing criminal investigations of illegal programs. Title VII applies to employers Read More
Federal Agencies Issue FAQs, Again Extending Enforcement Relief for Surprise Billing QPA Calculations
The U.S. Department of Labor (DOL), U.S. Department of Health and Human Services (HHS), and the Internal Revenue Service (IRS) have issued FAQs About Consolidated Appropriations Act, 2021 Implementation Part 69. The FAQs provide guidance on the calculation of the qualifying payment amount (QPA) used in the independent dispute resolution (IDR) process under the No Surprises Act. The FAQs also extended enforcement Read More
Employers Struggle to Provide Quality Healthcare Amid Increased Costs and Fiduciary Concerns
Employers are facing multiple challenges this year in providing competitive and quality health care benefits for employees. Skyrocketing costs, increased fiduciary risk, and a constantly evolving legal and political landscape all are impacting the ability of employers to effectively provide healthcare benefits. Nonetheless, employers appear dedicated to continuing to provide these benefits, with an estimated 43% Read More
The Long-Term Impact of DEI Executive Orders
In January 2025, the President issued two executive orders (EOs) concerning diversity, equity, and inclusion (DEI) and diversity, equity, inclusion, and accessibility, (DEIA) initiatives. These EOs are likely to have a significant impact on the practices of both the federal government and the private employer sector for years to come. Ending Radical and Wasteful Government DEI Programs and Preferencing The Read More
PBM Contracts Could Expose Plan Sponsors to Fiduciary Liability
March 5, 2025. By Anne Tyler Hall and Tim Kennedy*-Hall Benefits Law A plan sponsor’s fiduciary duty to be transparent in Pharmacy Benefit Manager contracts safeguards plan participants’ interests and mitigates the risk of litigation, regulatory penalties, and reputational harm, say Hall Benefits Law practitioners. Pharmacy Benefit Managers (PBMs), particularly the Big 3 PBMs (CVS Caremark, Express Scripts, and Read More
Treasury and IRS Issues Regulations on SECURE 2.0 Act Retirement Plan Catch-Up Provisions
The U.S. Department of Treasury and the Internal Revenue Service (IRS) has proposed regulations concerning SECURE Act 2.0 changes to retirement plan catch-up contributions. The changes include increased catch-up contributions for plan participants between ages 60 and 63 and mandatory Roth tax treatment for catch-up contributions made by certain 401(k) plan participants. Increased Catch-Up Contributions for Certain Read More
HRSA Guidelines Expand Women’s Preventive Health Services Requiring Coverage Without Cost-Sharing Under ACA
The Health Resources and Service Administration (HRSA) of the U.S. Department of Health and Human Services (HHS) approved updated preventive services guidelines for women on December 20, 2024. Under the Affordable Care Act (ACA), group health plans and insurers, with the exception of non-grandfathered plans[1], must cover certain preventive health services without cost-sharing. The updated HRSA guidelines apply to Read More