A split three-judge panel of the U.S. Court of Appeals for the Ninth Circuit affirmed a federal district court’s decision that an embezzler lacked standing under ERISA to direct how her former employer spent restitution that she paid in an accompanying criminal case. The case is Colleen Lehr et al. v. Perri Electric Inc. et al., case number 19-17199, U.S. Court of Appeals for the Ninth Circuit. In its unpublished Read More
4th Circuit Allows FMLA Claims to Proceed Based on Worker’s Leave Notices Sent Via Facebook Messenger
The 4th Circuit Court of Appeals has given the green light for an assembly line worker’s Family and Medical Leave Act (FMLA) claim to proceed despite using Facebook Messenger to communicate his notice of leave to his employer. The case is Roberts v. Gestamp West Virginia LLC, 4th Cir., No. 20-2202 (Aug. 15, 2022). Roberts worked on an assembly line at Gestamp, a West Virginia auto parts manufacturer. Gestamp Read More
2023 Healthcare Trends and Legislative Issues to Watch
While no one can predict the future with 100% accuracy, some healthcare trends and legislative issues are more likely to arise in 2023 than others. Continually rising healthcare costs, increased mental health services, Affordable Care Act tweaks, and the Consolidated Appropriations Act are all likely to play a significant role in the months ahead. Increased Healthcare Costs Healthcare costs are rising, and Read More
2023 Spending Bill Includes Extension of Pre-Deductible Coverage for Telehealth Services
The $1.7 trillion spending bill for 2023 contains several different provisions of importance for employers. Among these provisions is the extension of a provision of the 2020 Coronavirus Aid, Relief and Economic Security (CARES) Act concerning telehealth until December 31, 2024. This provision allows health savings account (HSA)-qualifying high-deductible health plans (HDHPs) to cover telehealth and other Read More
Instacart Settles San Diego Worker Misclassification Suit for $46.5M
Instacart has agreed to settle a suit covering about 308,000 workers whom the company misclassified as independent contractors in violation of California’s labor code for a total of $46.5 million. The affected individuals worked for the grocery delivery service as “shoppers” between September 2015 and December 2020. The case is The People of the State of California v. Maplebear Inc., case number Read More
Five ERISA Cases to Watch in 2023
As 2023 begins, cases involving various aspects of the Employee Retirement Income Security Act (ERISA) are pending before various federal courts, including the U.S. Supreme Court. The following five cases merit close attention as they progress through the courts. Lloyd v. Argent Trust Company, Case Number 22-3116, U.S. Court of Appeals for the Second Circuit The first case is a proposed class action lawsuit in Read More
Class Action Lawsuit Accuses UnitedHealthcare Group of Underpaying Claims for Out-of-Network Care
Members of self-funded healthcare plans administered by UnitedHealthcare Group (“United”) have filed a class action lawsuit against the company for violating its fiduciary duty under ERISA and their plans' terms. In their lawsuit, the plaintiffs allege that United has systematically underpaid benefits for claims relating to out-of-network healthcare providers. Many self-funded healthcare plans that United Read More
DOL Issues Proposed Rule on Independent Contractors
The U.S. Department of Labor (DOL) has issued a proposed rule to clarify the distinction between employees and independent contractors under the Fair Labor Standards Act (FLSA). The new rule would replace a 2021 rule in which two factors, i.e., control over the individual's work and the worker's opportunity for profit or loss, carried greater weight than other factors in making this distinction. Under the standard in Read More
CA Joins Other States with Paid Leave Laws
California has joined a steadily increasing list of eleven states and the District of Columbia in expanding paid leave programs for employees. Another five states have widened the range of paid time off by expanding paid sick leave policies. In addition, while select states allow paid time off for employees to care for family members, a growing number of states, including California, have extended paid leave Read More
DOL, HHS, and Treasury Issue FAQs on Affordable Care Act and CAA 2021
On December 23, 2022, the U.S. Department of Labor (DOL), the U.S. Department of Health and Human Services (HHS), and the U.S. Department of the Treasury (collectively, “the Departments”) issued joint FAQs concerning certain provisions of the Consolidated Appropriations Act 2021 (CAA). The FAQS relate to the implementation of Title II (Transparency) of Division BB of the CAA, which addresses the mandatory reporting Read More
