In January 2021, the U.S. Department of Labor (DOL) under the Trump administration issued a final rule defining the standard for when a worker is an independent contractor for the purposes of the Fair Labor Standards Act (FLSA). This standard remains in effect, although the DOL under the Biden administration issued a new proposed rule redefining the standard in October 2022. According to House Republican Read More
DOL Announces DST Systems to Pay Over $124M to Settle 401(k) Plan Mismanagement
The U.S. Department of Labor (DOL) has announced the settlement of a class action Employee Retirement Income Security Act (ERISA) lawsuit for more than $124.6 million on behalf of the more than 9,000 participants in the DST Systems Inc. 401(k) plan. The DOL and private plaintiffs alleged that DST and other defendants, including New York City investment management firm Ruane, Cunniff, & Goldfarb Inc., had failed Read More
FAQs (Part 60) Address Interaction of Surprise Billing Rules with ACA Cost-Sharing and Transparency Requirements
The U.S. Departments of Labor (DOL), Health and Human Services (HHS), and the Treasury recently issued joint FAQs (Part 60) concerning the implementation of specific provisions of the Affordable Care Act (ACA) and Title I of Division BB of the Consolidated Appropriations Act, 2021 (the No Surprises Act). The purpose of these FAQs is to address overlap in some areas of the ACA and the No Surprises Act. The first Read More
New York Starbucks Workers Move to Decertify Union at Buffalo, Rochester Stores
Employees at two New York Starbucks stores – Buffalo and Rochester - filed decertification petitions within two weeks of one another, seeking to dissolve the unions at those stores. The Buffalo store was the original center of the union organization movement in the high-dollar coffee chain. Workers United, the union representing both stores, attributes the decertification petitions to union-busting tactics and Read More
Kraft Heinz Sues Aetna for Violating Fiduciary Duty, Improperly Paying Providers for Medical Services
Kraft Heinz Co. has filed an ERISA lawsuit against Aetna Inc. in a Texas federal court. Aetna provides claims processing and adjudication services for Kraft Heinz, which self-funds its employees’ and retirees’ medical expenses. Under ERISA, Aetna has a fiduciary duty to properly identify, deny, and prevent the payment of any provider claims that are false or improperly submitted. Kraft Heinz claims that Aetna Read More
September Brings 5 Appellate Benefits Arguments To Watch
By Kellie Mejdrich Law360 (September 1, 2023, 7:22 PM EDT) -- In September, federal appeals courts have set oral arguments on several important employee benefits disputes from workers claiming violations of the Employee Retirement Income Security Act, and a D.C. Circuit panel will be asked to determine whether Rite Aid violated labor law when changing union retirees' health benefits. Here are five appellate Read More
Twitter Drastically Decreases Parental Leave Policy
Twitter has decreased the amount of paid parental leave that it previously offered some U.S. employees by as much as 90%. The San Francisco-based social media company formerly offered employees 20 weeks of paid parental leave. According to an internal memo, Twitter will now provide 12 weeks of paid leave for birthing employees and two weeks of paid leave for non-birthing employees, subject to any requirements under Read More
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
