Federal Court Determines That Autism Treatment Exclusion Violates Mental Health Parity and Addiction Equity Act

On March 5, 2021, a California federal court ruled in Doe v. United Behavioral Health that UnitedHealth violated the Mental Health Parity and Addiction Equity Act (Parity Act) and federal benefits law by refusing to pay for a common form of autism treatment. Plaintiff Jane Doe filed the suit on behalf of her son against UnitedHealth, which was the administrator of the employer-sponsored health plan at Wipro Ltd., Read More

Executive Pay Clawbacks: Both Past and Future Compensation At Risk

Executive pay clawback clauses have become more common following the financial crisis of 2008 since they allow companies to recover incentive pay from executives in the event of misconduct, fraud, scandal, poor performance, or a drop in company profits.  Clawbacks Under Sarbanes-Oxley and Dodd-Frank The Sarbanes-Oxley Act of 2002 mandated an executive compensation clawback rule that covered CEOs and CFOs, but did Read More

DOL Releases Non-Enforcement Policy on ESG Final Rules

On March 10, 2021, the DOL issued a policy statement regarding enforcement of its final rules on ESG investments and proxy voting by employee benefit plans. In the statement, the DOL said that until it issues further guidance, it will not enforce the “Financial Factors in Selecting Plan Investments” regulation published on November 13, 2020 (the “ESG Rule”) and the “Fiduciary Duties Regarding Proxy Voting and Read More

DOL Proffers New Tolling Procedure for COBRA, Special Enrollment, and Claims Deadlines

On February 26, 2021, the DOL issued Disaster Relief Notice 2021-01 to provide guidance on the duration of COVID-19 relief for certain actions related to employee benefit plans.  This guidance revises the DOL’s Disaster Relief Notice 2020-01 and its Notice of Extension of Certain Timeframes for Employee Benefit Plans, Participants, and Beneficiaries Affected by the COVID-19 Outbreak, which paused the deadlines for Read More

American Rescue Plan Act Offers Critical Relief for Single and Multiemployer Pension Plans

Signed into law on March 11, 2021, the American Rescue Plan Act of 2021 (ARPA) contains provisions that benefit both single employer and multiemployer pension plans: Single Employer Provisions Extended amortization of funding shortfalls. Under the Internal Revenue Code, plan sponsors have been allowed to amortize contributions required to pay for plan underfunding over a period of seven years. ARPA lowers a plan Read More

American Rescue Plan Act and COBRA: Guide for Employers

The American Rescue Plan Act of 2021 (ARPA) included a provision to help unemployed workers by authorizing a 100% subsidy of COBRA health insurance premiums through September 30, 2021. The ARPA was signed into law by President Biden on March 11, 2021. Under the ARPA, employers would receive the subsidy through a payroll tax credit against their quarterly taxes. Employees who lost their jobs due to the pandemic and Read More

Circuit Court Deems Bonus Program a Non-ERISA Plan

The U.S. Court of Appeals for the Fifth Circuit has ruled that a lawsuit involving a construction company’s bonus program belongs in state court because it is not a benefit program that is governed by ERISA. The case -- Atkins et al. v. CB&I, LLC -- was filed by five construction workers in Louisiana after the company they worked for refused to pay them a bonus because they quit their jobs before the project Read More

BlackRock Signs Nearly 8-Figure Deal to End ERISA Class Action Claim

Following almost four years of litigation, a $9.65 million settlement has been reached in a complex ERISA class action brought by investors in the BlackRock Retirement Savings Plan that included allegations of self-dealing and excessive fees.  Plaintiffs Charles Baird and Lauren Slayton sought to certify two classes, including one class of BlackRock employees that participated in the company’s collective trust Read More

Updated CDC Guidance: Masks in the Workplace

The COVID-19 pandemic has brought dramatic changes to the employment landscape over the past year, challenging employers to keep pace with ongoing updates to guidance from OSHA and the Centers for Disease Control and Prevention (CDC) on how to protect employees from being exposed to COVID-19 in the workplace. The CDC recently updated three of its resource pages that provide guidance on the use of masks to help Read More

House Introduces Immigration Reform Bill: The United States Citizenship Act

On February 18, 2021, the United States Citizenship Act was introduced into the U.S. House of Representatives as a comprehensive immigration reform bill that President Biden said would “restore justice, humanity, and order to our immigration system.” The 353-page bill follows through on a number of President Biden’s campaign promises, including a direct path to citizenship for “Dreamers” - undocumented immigrants Read More