The U.S. Equal Employment Opportunity Commission (EEOC) has referred to the reassignment or transfer of an employee as a reasonable accommodation under the Americans with Disabilities Act (ADA) as a last resort. Reassignment may be an option to consider if the only other option is termination, especially if the employee suggests it or is open to the option. Employers must first try to provide reasonable Read More

The U.S. Court of Appeals for the Ninth Circuit has reversed a federal district court decision dismissing a female public employee’s sexual harassment suit based on her male coworker’s Instagram posts. The Court ruled that although the posts were not addressed, sent, or shown to the female employee, they nonetheless affected her workplace and could result in employer liability. The case is Okonowsky v. Garland, 9th Read More

The Internal Revenue Service (IRS) recently issued a private letter ruling concluding that employers may permit employees to allocate non-elective, discretionary employer contributions among various employee benefit programs without endangering the tax advantages of those programs. The affected employee benefit programs include 401(k) plans, retiree health reimbursement arrangements (HRAs), health savings accounts Read More

Salesforce and class counsel recently filed a motion for preliminary settlement approval in a California district court. Under the terms of the non-reversionary settlement, Salesforce will pay $1.35 million to more than 50,000 class members in two Employment Retirement Income Security Act (ERISA) cases. Employees alleged that Salesforce, its board, and its investment committee violated their fiduciary duties under Read More

A California federal judge recently refused to dismiss a lawsuit against Intuit in which retirement plan participants claim that the company misused forfeited funds from its 401(k) plan. The denial of the bulk of Intuit’s motion to dismiss kept the core claims of the lawsuit intact, illustrating how 401(k) forfeiture suits under the Employment Retirement Income Security Act (ERISA) are gaining momentum in some Read More

The U.S. Department of Health and Human Services (HHS) has published its Annual Civil Monetary Penalties Inflation Adjustment in the Federal Register, which sets the amount of civil penalties for violating laws concerning the Health Insurance Portability and Accountability Act (HIPAA), the Medicare Secondary Payer (MSP) statute, and the provision of Summary of Benefits and Coverage (SBC). These adjustments apply Read More

Bank of America has become the latest employer to face a class action lawsuit alleging misuse of forfeited 401(k) funds. Retirement plan participants claim that the bank breached its fiduciary duty under the Employee Retirement Income Security Act (ERISA) by improperly benefiting from 401(k) matching funds that employees forfeited when they left the company. The case is Becerra v. Bank of America Corp., which was Read More

A three-judge panel of the U.S. Court of Appeals for the Eleventh Circuit has upheld the dismissal of a 401(k)-plan mismanagement suit brought by plan participants in favor of Home Depot. The ruling affirmed a Georgia federal court’s grant of summary judgment in the suit, in which plan participants claimed that the home improvement retailer violated the Employee Retirement Income Security Act (ERISA) in charging Read More

The U.S. Court of Appeals for the Fifth Circuit affirmed a lower court decision that vacated critical portions of the surprise billing independent dispute resolution (IDR) provisions of the Consolidated Appropriations Act, 2021 (CAA, 2021). The case is Texas Med. Ass’n v. HHS, 2024 WL 3633795 (5th Cir. 2024). Relying on the recent U.S. Supreme Court’s decision in Loper Bright, the Fifth Circuit held that the CAA, Read More

Recent lawsuits have emphasized that employers who sponsor employee benefit plans under the Employee Retirement Income Security Act (ERISA) are fiduciaries. This fiduciary duty means that employers owe an increased duty of care to the plans and their beneficiaries. As a result, employers should take certain precautions to avoid lawsuits based on a breach of their fiduciary duty. Retirement Plans In recent Read More