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
Federal Court Dismisses DOJ Antitrust Case Targeting No-Poach Agreements
A federal district court in Connecticut dismissed U.S. v. Patel, a U.S. Department of Justice (DOJ)’s antitrust case involving a jet-engine manufacturer with no-poach agreements concerning recruiting and hiring aerospace engineers with several firms that competed for its projects. Employers and HR professionals are hailing the decision as reassurance that the federal government will not apply so broadly the antitrust Read More
Bipartisan Telehealth Bill for Workers Moves Through Congress
The Telehealth Benefit Expansion for Workers Act of 2023 continues to move through Congress with bipartisan support. The bill supports continued access to telehealth services beyond the COVID-19 pandemic, allowing employers to offer standalone telehealth coverage for workers, including part-time, seasonal, and contract workers. The bill aims to increase access to mental health services, remedy provider shortages, Read More
CA Court Allows Disability-Based Associational Discrimination Claim to Proceed to Trial
A California state appeals court recently held that a worker fired after taking emergency time off to care for his disabled father could proceed on his claim for disability-based associational discrimination under the California Fair Employment and Housing Act (FEHA). The court below had dismissed his claim before trial. The case is Leyva v. Motorcar Parts of America, Calif. Ct. App., No. B307525 (April 20, Read More
