The U.S. Court of Appeals for the Second Circuit zeroed in on potential defects in jury instructions as it heard oral arguments in an appeal of a class action lawsuit against Yale University, signaling that it may order a new trial. Employees alleged that Yale violated its fiduciary duty under ERISA by mismanaging their retirement plan. Although the jury found that Yale had violated its fiduciary duty and caused a Read More

The U.S. Department of Labor (DOL), the U.S. Department of Health and Human Services (HHS), and the Department of Treasury recently issued final rules under the Mental Health Parity and Addiction Equity Act (MHPAEA). The final rules focus on nonquantitative treatment limitations (NQTLs), and the comparative analysis requirement established in the CAA, 2021. These rules provide new definitions, revise existing Read More

The U.S. Department of Labor’s (DOL’s) Employee Benefits Security Administration (EBSA) has issued DOL Compliance Assistance Release No. 2024-01. This compliance assistance release confirms that the agency’s 2021 updated guidance on cybersecurity applies to all employee benefits plans, including all health and welfare plans and retirement plans. EBSA has specifically updated its cybersecurity guidance, which Read More

The Investor Advisory Committee (IAC) of the U.S. Securities and Exchange Commission (SEC) recently held a public hearing featuring a panel discussion on investment advice. Established by the 2010 Dodd-Frank Act, the IAC recommends regulatory actions to the SEC. After the public hearing, various IAC committee members expressed a willingness to recommend that the SEC take action to clarify fiduciary investment Read More

The California Court of Appeals recently found that a reduction in force (RIF) is not necessarily a sufficient reason to terminate an older worker. As a result, the Court revived a former Pacific World Corp. customer service manager’s age discrimination claim under the California Fair Employment and Housing Act (FEHA). However, the Court affirmed the dismissal of the remaining two claims -- disability discrimination Read More

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