In McKenna v. ZO Skin Health, Inc., 2021 WL 4078291 (N.D. Ohio 2021), an employee sued two of her employers and their third party administrators (“TPA”) after she was denied coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”). After a cancer diagnosis, plaintiff Vicki McKenna elected COBRA after being terminated by her employer, PuraCap Pharmaceutical LLC (“PuraCap”). In April 2018, Read More

The chairman and ranking member of the House Education and Labor Committee has introduced bipartisan legislation that partially overlaps the SECURE Act 2.0. In early November, committee Chairman Bobby Scott (D-VA); Rep. Virginia Foxx (R-NC), the committee’s ranking Republican; Rep. Mark DeSaulnier (D-CA), Chairman of the Subcommittee on Health, Employment, Labor and Pensions (HELP) Committee; and Rep. Rick Allen Read More

The parties in Hill v. Mercy Health Corp. (N.D. Ill.) reached a settlement agreement in a case where the plaintiffs accused the defendants of mishandling their retirement savings. Parties in the class action lawsuit reported that the parties have reached a $3.9 million settlement in the suit brought under the Employee Retirement Income Security Act (ERISA). The plaintiffs filed a motion for preliminary approval of Read More

In late September 2021, the Departments of Health and Human Services (“HHS”), Labor and Treasury, and the Office of Personnel Management (collectively, the “Departments”) published the second interim final rule implementing certain provisions of the No Surprises Act (“Part II of the IFR”).  Part II of the IFR addresses critical components of the No Surprises Act (the “Act”) that were not addressed in the Read More

In GunBroker.com, LLC v. Tenor Capital Partners, LLC, (N.D. Ga.), an online firearms marketplace sued a financial advisory firm claiming that it provided an inaccurate enterprise valuation. The plaintiff was in the process of creating an employee stock ownership plan (ESOP) and sought the valuation from the defendant. The complaint included allegations of breach of contract, breach of fiduciary duty, fraud, and Read More

In April Hughes v. Northwestern University, a class-action lawsuit initiated by Northwestern University retirement plan participants, plaintiffs alleged the school mismanaged their retirement savings. The Seventh Circuit dismissed the case. In October 2021, the U.S. Chamber of Commerce urged the Supreme Court not to revive a lawsuit from Northwestern University workers, arguing that voiding the school's win would add Read More

The IRS updated its process for issuing guidance in the form of frequently asked questions (FAQs) on newly enacted tax legislation. To this end, the IRS posted a general overview document clarifying the ability of taxpayers to rely on FAQ guidance.  The updated process dictates that “significant” FAQs on newly enacted tax legislation, as well as any later updates or revisions, will be announced in a news release Read More

In Michael W. Allegretti et al. v. Walgreen Co. et al., (Case No. 1:19-cv-05392), (N.D. Ill.), a certified class of nearly 200,000 401(k) plan participants requested an Illinois federal judge to approve their $13.75 million deal resolving specific claims against Walgreens. The most severe claim was that the pharmacy chain cost workers $300 million by investing their retirement savings in mutual funds that generated Read More

Soon after taking office, President Biden issued an executive order requiring federal agencies to review policies or regulations issued by the prior administration that were inconsistent with the new Administration’s climate change, health, and labor policies.  In October 2021, the Department of Labor (DOL) completed its review and published proposed rules (the “Proposed Regulations”) that would significantly Read More

In November, New York Governor Kathy Hochul signed legislation passed by the New York legislature in June, whereby private business enterprises must enroll employees in the state auto-IRA program if the business itself doesn't offer a retirement plan. Unless employees opt out, businesses must enroll them in the state program. The measure (S.5395-A/A.3213-A) is effective immediately and automatically enrolls employees Read More