From iconic retail brands like Neiman Marcus to popular entertainment venues like Chuck E. Cheese, business bankruptcies have escalated in 2020 due to the COVID-19 pandemic. Company executives invested in Non-Qualified (NQ) plans risk losing a substantial amount in retirement savings due to guidelines set under Section 409A. These guidelines protect NQ plan assets from a change in corporate control but not from a Read More
3 Tips for Avoiding Legal Pitfalls in Addressing Employee Opioid Use
In response to concerns about the opioid epidemic and the employment provisions of the Americans with Disabilities Act (ADA), the Equal Employment Opportunity Commission (EEOC), on August 5, 2020, released technical assistance documents as guidance on opioid addiction and employment. Although directed at employees and healthcare providers, the EEOC’s guidance reminds employers of the basic parameters of the ADA Read More
DOL Issues Proposed Regulations on Pooled Plan Providers
The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) established a new structure whereby a group of unrelated employers could participate in a single defined contribution plan as of January 1, 2021. Pooled Employer Plans (PEPs) must be administered by a Pooled Plan Provider (PPP), which must register with the Department of Labor (DOL) before commencing operations. On August 20, 2020, the DOL Read More
DOL’s Proposed Regulations Likely to Lead to Fiduciary Re-evaluation of Proxy Voting
On September 4, 2020, the Department of Labor (DOL) published a proposed regulation clarifying the rules regarding proxy voting and the exercise of other shareholder rights by fiduciaries for plans subject to ERISA. With the proposed regulation, the DOL stated that it hopes to clarify the “confusion or misunderstandings” from prior guidance that ERISA fiduciaries are required to vote all proxies, noting that Read More
Proactive Employer Measures for Avoiding Coronavirus-Related Benefits Litigation
The COVID-19 pandemic has brought about an overwhelming number of changes for employers in the past few months, requiring them to realign their plans and policies to incorporate regulatory changes affecting employee benefits. In this environment, it’s important for employers to ensure these changes have not triggered any adverse consequences like benefits litigation related to the coronavirus. Employers are Read More
OCR Recommends IT Asset Inventory List for HIPAA-Covered Entities and Business Associates
In its recent cybersecurity newsletter, the Office of Civil Rights (OCR) recommended that HIPAA-covered entities and business associates develop information technology (IT) asset inventory lists to assist with tracking electronic health information (“ePHI”) throughout their organizations in order to satisfy risk analysis compliance requirements under the HIPAA Security Rule. According to the OCR, organizations Read More
IRS Expands Discretionary Amendment Deadline for Pre-Approved Retirement Plans
On September 2, 2020, the IRS released Revenue Procedure 2020-40, which modifies prior guidance set forth in Revenue Procedure 2016-37 and Rev. Proc 2019-39 to expand the circumstances under which deadlines for discretionary amendments may be extended for pre-approved qualified plans and 403(b) plans. Background The provisions of the prior revenue procedures as revised by Revenue Procedure 2020-40 include the Read More
3 Tips for Avoiding Liability Traps in Employee Leave Policies
As many businesses across the country are updating their leave policies, we offer the following three (3) tips to avoid employers’ liability traps in employee leave policies. Tip #1 – Review your leave policies for compliance with the Fair Labor Standards Act. Unless your organization has a “bona fide benefits plan,” exempt employees’ salaries may not be reduced for absences due to illness or disability without Read More
IRS Provides Potpourri of Guidance on Various SECURE Act Provisions
On September 4, 2020, the IRS issued Notice 2020-68 to provide guidance on a number of provisions in the Setting Every Community Up for Retirement Enhancement Act (SECURE Act) affecting retirement plans, as well as Section 104 of the Bipartisan American Miners Act of 2019. Notice 2020-68 also provides guidance on plan amendment deadlines. The Notice provides Q&A guidance on the following SECURE Act Read More
3 Tips for Avoiding Employment Liability Pitfalls During the COVID-19 Pandemic
Even during the best of times, employment liability presents one of the highest costs of doing businesses for employers of all sizes. During the COVID-19 pandemic, employers have had no choice but to be more vigilant than ever in minimizing all expenses, including employee-related expenses. As your risk management partner, we offer you the following three tips to avoid costly employment liability traps during the Read More
