Small and mid-size 401(k) plan fiduciaries progressively have become the target of plaintiffs’ law firms filing suits based on alleged breaches in fiduciary duty. In most of these lawsuits, participants claim that plan sponsors have breached their fiduciary duty by charging excessive fees, making poor investment choices, or failing to monitor investments properly. Due to plaintiffs using detailed benchmark data to Read More
Wells Fargo Settles Multimillion Dollar 401(k) Suit with DOL
Wells Fargo has settled with the U.S. Department of Labor (DOL) after an investigation revealed that the fund overpaid for company stock purchased for the plan during specific years. The settlement requires Wells Fargo to pay almost $132 million to its 401(k) plan participants and a penalty of nearly $13.2 million. The lawsuit involves Wells Fargo and Company, Wells Fargo Bank, and GreatBanc Trust Company, a trustee Read More
Court Vacates HHS and EEOC Guidance on Gender Identity Discrimination Under Section 1557 and Title VII
A Texas federal district court judge has ruled that guidance issued by the U.S. Department of Health and Human Services (HHS) and the U.S. Equal Employment Opportunity Commission (EEOC) banning gender identity discrimination is unlawful. Accordingly, the court vacated the HHS and EEOC guidance; its decision is effective nationwide. The EEOC issued guidance on gender identity discrimination under Title VII of the Read More
Employer Liability for Active Shooters in the Workplace
In America today, mass shootings are a near-daily occurrence. According to data collected by the Gun Violence Archive, during the first seven months of 2022, 371 mass shootings took place in the U.S. that involved the injury or death of four or more people, not including the shooter. As a result, concerns about business liability for mass shootings have increased, requiring businesses to take various precautions to Read More
DOL Moves to Dismiss Suit Challenging its 401(k) Cryptocurrency Investment Guidance
The U.S. Department of Labor (DOL) recently asked a District of Columbia federal court judge to dismiss a lawsuit challenging its 401(k) cryptocurrency investment guidance. ForUsAll, a San Francisco-based 401(k) recordkeeping firm, sued the DOL in June 2022, claiming that the agency had changed policy in violation of the Administrative Procedure Act (APA), which requires a public notice and comment period. In Read More
More States Block Noncompete Agreements
Noncompete agreements used to be commonplace, particularly in employment sectors, but they have become increasingly rare in recent years. Employers historically have used noncompete and non-solicitation agreements to stop employees from competing with a company or soliciting that company’s customers for a specific period after they leave their employment. State legislative changes and court rulings have limited or Read More
Uncertainty Continues as Religious Freedom and LGBT Rights Continue to Clash in ACA Cases
A wave of recent court decisions is creating uncertainty about the obligations of religious employers and healthcare providers to offer or pay for the healthcare needs of gay and transgender individuals under the Affordable Care Act (ACA). This litigation illustrates the conflicts between the Religious Freedom Restoration Act (RFRA) and policies that promote nondiscrimination under the ACA. Ongoing appeals and Read More
Court Allows GINA Claims to Proceed Against Employer Wellness Program
In Glenn Williams et al. v. City of Chicago, an Illinois federal district court judge has given the green light for some city employees to proceed with their suit against their employer based on violations of the Genetic Information Nondiscrimination Act (GINA). The employees also had brought claims under the Americans with Disabilities Act (ADA) and the Fifth and Fourteenth Amendments to the U.S. Constitution, but Read More
Keys to Preventing Workplace Sexual Harassment
According to the Equal Employment Opportunity Commission (EEOC), sexual harassment complaints made up about 35% of all complaints received by the agency between 2018 and 2021. In addition, almost 80% of the complaints came from women. Sexual harassment may include unwanted sexual advances and unwelcome sexual commentary. It also may include conduct that denigrates or shows hostility to individuals or groups of Read More
DOL Proposes New Worker Classification Regulations Under FLSA
The Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) has published a Notice of Proposed Rulemaking in the Federal Register concerning the classification of employees and independent contractors under the Fair Labor Standards Act (FLSA). One of the main functions of FLSA is to outline the minimum wage and overtime requirements that apply to employees but not independent contractors. The proposed Read More
