Although the Internal Revenue Code does not allow employers to exclude part-time employees, it has allowed them to exclude employees from their 401(k) plans until they have worked at least 1,000 hours in a year. As a result, employers historically used this rule to exclude part-time employees from plan participation, including the right to make elective salary deferral contributions to a plan. However, the Setting Read More
As COVID Vaccine Injury Lawsuits Increase, Liability Questions Arise
The U.S. Department of Justice (DOJ) has posted an employment ad seeking eight attorneys to work in its Countermeasures Injury Compensation Program (CICP). The LinkedIn ad appeared soon after the filing of a lawsuit in Louisiana last month by six plaintiffs who allege injuries from the COVID-19 vaccine against the federal government. These individuals are seeking to overturn the immunity that the feds granted big Read More
Lawsuit Claims UnitedHealthcare Uses AI to Deny Majority of Medicare Advantage Extended-Care Facility Claims
As the healthcare industry has begun to use artificial intelligence (AI) algorithms in its claims determination process, litigation has ensued. In a recent class action lawsuit, plaintiffs claim that UnitedHealthcare used its “nH Predict” AI algorithm to wrongfully deny elderly patients’ claims for post-acute care, including stays in skilled nursing-care facilities and in-home care. When patients appeal the denials Read More
Isolated Incidents of Allegedly Inappropriate Behavior Insufficient to Establish Sexual Harassment Claim
A California appellate court has upheld the trial court’s dismissal of a county employee’s sexual harassment claim. The court found that isolated, minor instances of alleged harassment were insufficient to sustain the worker’s claim. The case is Robinson v. County of Los Angeles, Calif. Ct. App., No. B317521 (Nov. 8, 2023). The employee worked as a student professional worker in a county public defender's office, Read More
IBM Shifts Employees From 401(k) to Hybrid Pension
IBM has notified its employees that it will suspend its current match and 1% automatic contribution to employee 401(k) plans as of January 1, 2024. In lieu of contributing to a 401(k) plan, the industry leader will provide a monthly account credit toward a new Retirement Benefit Account (RBA). Employees also will receive a one-time salary increase to offset the difference between the current 401(k) contribution and Read More
HHS Issues First Settlement for HIPAA Violations Related to a Ransomware Attack
In late October, the U.S. Department of Health and Human Services (HHS) reached a settlement agreement with a medical management company based in Massachusetts over alleged HIPAA violations. Under the settlement terms, the company will pay $100,000 and comply with a three-year corrective action plan (CAP). The company is a HIPAA business associate (BA) that provides services to HIPAA-covered entities (CEs), Read More
Court Finds in Favor of Veteran Whose Employer Denied His Disability Accommodation Request
A former Texas state trooper recently won a $2.4 million verdict against the Texas Highway Patrol under the Uniformed Services Employment and Reemployment Rights Act (USERRA). In his lawsuit, the former law enforcement officer alleged that the state agency failed to accommodate a disability that he sustained during military service. Although a Texas appellate court ruled in 2018 that the state had immunity from the Read More
EBSA Rejects Requested Delay as Proposed Fiduciary Rule Moves Forward
The U.S. Department of Labor's (DOL) Employee Benefits Security Administration issued a letter rejecting a request for delays in the rulemaking process concerning the expansion of the definition of "fiduciary" under the Employee Retirement Income Security Act (ERISA). The Securities Industry and Financial Markets Association (SIFMA), American Retirement Association (ARA), and various other financial groups previously Read More
Weis Markets Faces Lawsuit for Allegedly Misusing EAP Benefit
The U.S. Equal Employment Opportunity Commission (EEOC) has filed a lawsuit against Weis Markets, a Pennsylvania supermarket chain. In the lawsuit, the EEOC alleges that a supervisor subjected an employee to sexual harassment, and the employer fired her after she refused to comply with its unlawful directive to participate in the company employee assistance program (EAP). The employee reportedly reported her Read More
Health Care Stakeholders Support Passage of The Value in Health Care Act
Seventeen healthcare stakeholder groups have come together to support The Value in Health Care Act, a bill that a bipartisan coalition reintroduced in Congress this summer. The bill supports a shift in the medical care industry from the current fee-for-service model to an accountable care model, which assigns compensation to medical providers based on health outcomes. Instead of incentivizing physicians to prescribe Read More
