A California state judge has been asked to allow a Lyft driver’s worker misclassification lawsuit against the rideshare company to proceed separately from similar litigation being pursued by the California Labor Commissioner under the Private Attorneys General Act (PAGA). Lyft driver Brandon Olson filed suit against the company in 2018, alleging that Lyft misclassified him and other drivers as independent Read More
Court Rejects Plan Asset Claims Against 401(k) Plan Record Keeper That Shared Data for Marketing Purposes
The U.S. District Court for the Southern District of Texas recently dismissed breach of fiduciary and other claims against Shell Oil Company retirement plan record keeper Fidelity Investments in Harmon v. Shell Oil, where 401(k) participants claimed that Fidelity shared participant data with its affiliates for marketing purposes in violation of ERISA. The class action suit alleged that Fidelity breached its Read More
IRS Proffers Guidance on COBRA Premium Subsidy
On May 18, 2021, the IRS issued Notice 2021-31 that provides guidance for employers, plan administrators, and health insurers regarding the tax credit available to them under the American Rescue Plan Act of 2021 (ARPA) for providing continuation health coverage to certain individuals under COBRA. Under ARPA, a 100% COBRA premium subsidy and other COBRA benefits are available to qualifying assistance eligible Read More
Greater Price Transparency/Advanced Explanation of Benefits Requirements Coming Soon!
Passed in December 2020, the Consolidated Appropriations Act, 2021, (CAA) included provisions that address group health plan price transparency provisions, reporting, disclosure, and other patient protections. The price transparency rules are slated to become effective on January 1, 2022, so employers should be working with their carriers or TPAs on compliance efforts soon. Advance EOB Requirements The CAA requires Read More
Asset or Stock Purchase: Form of Transaction and the Impact to Employee Benefit Plans
Mergers, acquisitions, consolidations, or other reorganizations of a company can have a profound effect on employee benefit plans. For the purpose of this post, we’ll examine two common types of corporate transactions and the issues companies need to consider: Stock purchase – The buyer purchases all the stock of a company, and the seller does not retain any employees or benefit plans. Asset purchase – The Read More
Proposed SECURE Act 2.0 Offers Tax Breaks for Retirement Plan Participants and Plan Sponsors
On May 5, 2021, the House Ways and Means Committee voted unanimously to advance new retirement savings legislation to the House for approval. The Securing a Strong Retirement Act - dubbed “SECURE Act 2.0” - would enable millions more workers to build savings through employer-provided retirement plans while lowering costs for employers. Plan Participant Benefits Raises the Saver’s Credit. The Saver’s Credit Read More
EEOC Updates Vaccine Program Guidance Once Again
The Equal Employment Opportunity Commission (EEOC) has updated its What You Should Know About COVID-19 and the ADA, the Rehabilitation Act, and Other EEO Laws web page once again with more FAQs about COVID-19 vaccinations for employees. The new FAQs address mandatory vaccination policies, vaccination incentive programs, and confidentiality requirements. These key updates include the following: Federal EEO Read More
NQDC Plans Aim to Mitigate Risk of Key Employee Early Retirement
The COVID-19 pandemic has brought about a number of changes to the American workforce, including shifts in how work actually gets done - or doesn’t get done. According to government data, the pandemic has accelerated the rate at which Americans are retiring, with a reported 2.7 million Americans over the age of 55 considering retirement years earlier than they had imagined. Thanks to soaring stock market and real Read More
First Lawsuit Challenging Employer-Mandated Vaccines Dismissed
On June 12, 2021, a Texas federal judge dismissed a lawsuit against Houston Methodist Hospital filed by unvaccinated nonmanagerial workers challenging the hospital’s policy that required all covered employees to be vaccinated against COVID-19. The suit challenging the hospital’s vaccine mandate - Jennifer Bridges et al. v The Methodist Hospital - was filed on May 28, 2021. The hospital’s vaccination policy included Read More
DOL is Reviewing Overtime Pay Threshold
During testimony before the House Committee on Education and Labor on June 9, 2021, Secretary of Labor Marty Walsh told lawmakers that the DOL is reviewing the current overtime pay threshold that he said is too low and should be subject to automatic and regular updates. Currently, the overtime threshold is $684 per week, or $35,568 annually. Workers who earn below the threshold amount are required to be paid Read More
