A final rule has been issued by the U.S. Departments of Labor, Health & Human Services, and Treasury (the “agencies”) that allows grandfathered group health plans and insurers to make certain cost-sharing adjustments without losing grandfathered status under the Affordable Care Act (ACA). Grandfathered plans are those that were in existence when the ACA was enacted on March 23, 2010. A few ACA provisions apply Read More
Group Health Plans and COVID-19 Vaccine Considerations
In general, employers are permitted to require that their employees be vaccinated if no disability or religious exemption applies. With two COVID-19 vaccines already authorized by the FDA for emergency use and more on the horizon, employers need to be aware of how this will affect their group health plans. In October 2020, the Trump administration released an interim final regulation (IFR) governing coverage of Read More
2020 Appropriations Bill Includes Myriad of Retirement Plan-Related Provisions
The Consolidated Appropriations Act, 2021 (CAA) was signed into law on December 27, 2020. This major funding bill included the COVID-Related Tax Relief Act of 2020 (COVIDTRA) and the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (TCDTR), which contained the following provisions affecting retirement plans: Money Purchase Pension Plan Distributions May Qualify as Coronavirus-Related Distributions The CAA Read More
Plaintiffs Face Setback in New Second Circuit PBM-Favorable Decision
Plaintiffs in an ERISA lawsuit against pharmacy benefits managers (PBMs) received another setback recently when the Second Circuit Court of Appeals upheld a district court ruling that defendants Anthem, Inc., and Express Scripts, Inc., did not violate ERISA’s fiduciary obligations because neither defendant acted as an ERISA fiduciary when entering into a contractual agreement that led to higher prescription costs for Read More
IRS Releases Final 162(m) Regulations Implementing Statutory Changes
On December 18, 2020, the IRS released final regulations under 162(m) of the IRS Code to implement the Tax Cuts and Jobs Act (TCJA) changes as well as provide guidance to employers. Section 162(m) focuses on publicly held corporations and deductions for compensation paid to covered employees. This section does not allow these corporations to deduct compensation that exceeds $1 million per year. The TCJA changes the Read More
Overview of Benefits Provisions in New COVID-19 Bill
The Consolidated Appropriations Act, 2021 (CAA) was signed into law on December 27, 2020. This major funding bill included the COVID-Related Tax Relief Act of 2020 and the Taxpayer Certainty and Disaster Tax Relief Act of 2020. Following are highlights of the provisions affecting employer-sponsored benefit plans: Flexible Spending Arrangements (FSAs) The CAA allows for certain relief pursuant to health care and Read More
DOL Adopts New Prohibited Transaction Exemption for Fiduciaries Providing Investment Advice
On December 18, 2020, the U.S. Department of Labor (DOL) published the final version of its new prohibited transaction class exemption for investment professionals: Prohibited Transaction Exemption 2020-02, Improving Investment Advice for Workers and Retirees. The new class exemption is based on the DOL’s temporary policy adopted after a 2018 ruling by the Fifth Circuit Court of Appeals in Chamber of Commerce of Read More
Pay Equity is a Key Issue for Employers to Watch in 2021
With a new administration and Congress in place, there will undoubtedly be some significant changes to employment laws, and pay equity is likely to be key issue for employers to watch in 2021 and beyond. During his campaign, President Biden indicated his support of the Paycheck Fairness Act (H.R.7) as the next step in building upon a pay equity law passed by the Obama-Biden administration, the Lily Ledbetter Fair Pay Read More
DOL Issues COVID-19-Related Guidance Regarding Whether Overtime Payments Based on Expected Hours Worked are Credited for Overtime
In Opinion Letter FLSA2020-20, the Department of Labor’s Wage and Hour Division (WHD) provided guidance on paying overtime to live-in caregivers who work shifts of more than 24 hours based on an expected number of hours worked, and whether these overtime payments can be excluded from the regular rate and credited for overtime. The employer addressed in the Opinion Letter employs caregivers to provide in-home or Read More
DOL Issues Guidance Addressing Whether Certain Telework-Related Travel is Compensable
In Opinion Letter FLSA2020-19, the Department of Labor’s Wage and Hour Division (WHD) provided guidance on whether an employee who works remotely for part of the day and works at the office for the remainder of the day while doing personal tasks in between must receive compensation for travel time between home and office. There were two examples provided in the Opinion Letter: #1: Employee has a school Read More
