The Internal Revenue Service (IRS) issued Internal Revenue Bulletin 2023-1 on January 3, 2023. Bulletin 2023-1 contains various revisions that supersede some 2022 Revenue Procedures. Administrative Rev. Proc. 2023-1, 2023-2, and 2023-3 all cover administrative issues. These procedures are effective as of January 3, 2023. Rev. Proc. 2023-1 contains revised procedures for letter rulings and information Read More
Maryland Employers Could Face Difficulties Defending Harassment Claims Under New State Laws
The Maryland state legislature has enacted two bills that may make it harder for employers to defend against harassment claims. The two employee-friendly bills, which took effect on October 1, 2022, lowered the legal standard required to establish a harassment claim and extended the period during which a person may file a civil action alleging an unlawful employment practice. Senate Bill 450 allows employees to Read More
Battle Over ESG Means Balancing Act For Benefits Plans
Law360 (March 3, 2023, 9:57 PM EST) - Congress recently passed legislation seeking to nix a U.S. Department of Labor rule meant to help retirement plan managers factor things like climate change and social justice into investment decisions, a move that attorneys say highlights the legal risks for plans that offer funds devoted to socially conscious investing. The House and Senate passed resolutions on Feb. 28 and Read More
CA Federal Court Refuses to Dismiss ERISA Safe Harbor 401(k) Claims Against Calbiotech
A California federal judge has denied Calbiotech’s bid to dismiss a former employee’s ERISA suit involving a claim that it failed to match contributions to employees’ 401(k) plans. The judge also kept the former employee’s retaliatory discharge claim alive but tossed his claims related to a separate employer-sponsored pension plan. The case is Raya v. Barka et al., case number 3:19-cv-02295, U.S. District Court for Read More
Providers and Patients File Class Action Against Insurance Companies for Failure to Pay COVID-19-Related Claims
A group of healthcare providers and individual plaintiffs have filed a class action lawsuit against UnitedHealthcare Inc., OptumHealth Care Solutions, and various other defendants in a Florida federal district court. The providers received an assignment of benefits from the defendants for COVID-19 testing that they have provided and continue to provide to beneficiaries of the defendants’ plans and their family Read More
SCOTUS Affirmative Action Decisions Could Impact Workplace DE&I Programs
The U.S. Supreme Court recently heard arguments in two college affirmative action cases. In both cases, Students for Fair Admissions, a nonprofit group, argues that affirmative action policies at Harvard University and the University of North Carolina unfairly favor Black, Hispanic, and Native American applicants over white and Asian American applicants. The implications of the high Court’s decisions in these cases Read More
Year-End Appropriations Legislation Contains Group Health Plan Provisions
The Consolidated Appropriations Act, 2023 (CAA, 2023), which Congress passed, and President Biden has now signed into law, contains provisions that impact retirement and group health plan sponsors and advisors. Plan administrators and sponsors must be aware of these provisions and make any adjustments to their plans and policies as needed. Telehealth / High Deductible Health Plans Typically, individuals can Read More
DOL Moves for Time to Issue Modified Guidance on Insurance Plans
The U.S. Department of Labor has filed a motion asking a Texas federal district court to put a pending court battle on hold while it issues revised guidance on insurance plan coverage under ERISA. Data Marketing Partnership LP offers health insurance to individuals who pay their own premiums in exchange for turning over their personal web tracking data. The case is Data Marketing Partnership LP et al. v. U.S. Read More
Class Counsel Seek $3.4M in Fees for ESOP Settlement
Counsel for healthcare workers in a class action lawsuit who alleged overcharges to their employee benefit stock plans in violation of the Employee Retirement Income Security Act (ERISA) has filed a motion requesting almost $3.4 million in attorney's fees and expenses. The case is Gamino v. KPC Healthcare Holdings Inc. et al., Case Number 5:20-cv-01126, U.S. District Court for the Central District of Read More
Top Legal Issues for Employers in 2022
Among the subjects contributing to the top legal issues employers faced in 2022 were COVID-19 vaccination requirements, a potentially new overtime rule from DOL, the economic downturn, new state laws, and post-Dobbs abortion access for employees. COVID-19 Vaccination Requirements Employers became uncertain of their legal options when some employees refused to get COVID-19 vaccinations. As a result, the EEOC Read More
