Laid-Off Employees File ERISA Suit Against Twitter for Failure to Pay $500 Million in Severance

A group of former Twitter employees laid off after Elon Musk took over the company recently filed a proposed class action lawsuit in a California federal court. The former employees allege that Twitter failed to pay laid-off employees more than $500 million in severance according to the company's ERISA-governed severance plan, which Musk promised would remain in effect. The Twitter severance plan provided Read More

U.S. Supreme Court Agrees to Hear Whistleblower Retaliation Case

The U.S. Supreme Court has agreed to hear Murray v. UBS Securities, LLC, a case concerning the protections against retaliation for employee whistleblowers under the Sarbanes-Oxley Act of 2002. The legal issue involve whether the whistleblower bears the burden of proving that an employer acted with retaliatory intent or whether the employer bears the burden of proving that it had no intent to retaliate against the Read More

Remote Work May Not Be the Only Cause of Worker Productivity Decrease

According to a recent study based on data from the U.S. Bureau of Labor Statistics, American worker productivity has declined for an unprecedented five straight quarters in a row. Remote work critics claim that returning to traditional, in-office work will cure the problem. However, other factors may also contribute to the decline in worker productivity. First, employers are working longer hours than last year but Read More

Biden Announces Initiatives to Lower Health Care Costs

President Joe Biden recently announced initiatives to lower consumer healthcare costs and crack down on “junk” short-term insurance policies. The Biden administration plans to place significant limits on the short-term insurance policies that are supposed to provide temporary coverage as people transition between jobs but often deny basic health care coverage. The goal is to close existing loopholes that currently Read More

The Pregnant Workers Fairness Act (PWFA): What Employers Need to Know

A new federal law, the Pregnant Workers Fairness Act (PWFA), became effective on June 27, 2023. PWFA adds to existing protections for pregnant workers under Title VII of the Civil Rights Act of 1964 and the Americans with Disabilities Act (ADA). Under the PWFA, employers with fifteen or more qualified employees in both the public and private sectors must provide reasonable accommodations to employees with known Read More

Supreme Court Decision Prompts CMS to Send $9B to 1,600 Hospitals for Medicare Underpayments

After a recent U.S. Supreme Court decision found that the U.S. Department of Health and Human Services (HHS) had wrongfully cut prescription drug prices for 349B-covered hospitals between 2018 and 2022, the Centers for Medicare and Medicaid Services (CMS) is proposing to return $9 billion in underpayments to those 1,600 hospitals. The 340B Drug Pricing Program requires drug companies to offer outpatient Read More

IRS Issues Guidance on COVID-19 Expenses for HDHPs and Clarifies HSA Rules on Preventive Care

Due to the end of the COVID-19 public health and national emergencies, the Internal Revenue Service (IRS) has issued guidance to high-deductible health plans (HDHPs) in the form of Notice 2023-37. This notice provides guidance on COVID-19 expenses for and clarifies items and services related to preventive care under health savings account (HSA) eligibility rules. Under its 2020 guidance, the IRS allowed HDHPs to Read More

USCIS Receives Record-Setting Number H-1B Visa Registrations for FFY 2024

U.S. Citizenship and Immigration Services (USCIS) has received 758,994 H-1B cap-subject visa registrations for FY 2024, the highest number ever received. In response, USCIS selected 110,791 registrations to meet the annual H-1B visa quota of 85,000, equivalent to a newly low selection rate of 14.6%. Selected employers had until June 30, 2023, to submit their full H-1B visa petitions for adjudication. Although the Read More

Sixth Circuit Finds Benefits Committee Improperly Delegated Eligibility Determination, Penalizes ERISA Plan Administrator for Failure to Timely Provide Plan Documents

An ERISA-governed employee welfare benefit plan participant filed a request for extended long-term disability benefits. She received a denial of her request from the employer’s benefits department. The participant sued the plan and the plan administrator, arguing that she was entitled to extended benefits. She also claimed the plan failed to provide her with timely copies of the plan and other documents that she Read More

IRS Office of Chief Counsel Issues Memo Addressing Tax Treatment of Employer-Funded, Insured, Fixed-Indemnity Wellness Policy

The IRS Office of Chief Counsel recently issued Chief Counsel Advice (CCA) 202323006, which relates to the tax treatment of an employer-funded, insured, fixed-indemnity wellness policy. Although CCAs are not usable or citable as precedent, they provide insight into IRS policy and guidance for employers and wellness plan sponsors, particularly for audits. The policy the Chief Counsel addressed in the memo provided Read More