Legal Challenges to DOL’s ESG Investing Rule Continue Following Biden’s Veto of H.J. Res. 30

June 12, 2023
Hall Benefits Law, LLC

President Joe Biden recently vetoed H.J. Res. 30, a resolution that would have disapproved of the U.S. Department of Labor (DOL)’s final environmental, social, and governance (ESG) rule. Political controversy and potential legal challenges to the ESG investing rule continue. The rule allows investment plan fiduciaries to consider climate change and other ESG factors in evaluating investment decisions and shareholder rights.

H.J. Res. 30 passed both houses of Congress under the Congressional Review Act, which requires only a majority vote. An override of Biden’s veto of the resolution would require a two-thirds vote, which is unlikely to occur.

Top officers at the American Retirement Association and Ceres Accelerator for Sustainable Capital Market at Ceres lauded the veto, citing the rule as permissive, neutral, and cognizant of the real financial risks of climate change. In contrast, a senior fellow at the Competitiveness Enterprise Institute characterized the final rule as “politicized money management” that the congressional majority was willing to oppose.

Meanwhile, a lawsuit filed by Republican state attorneys general remains pending in a Texas federal court, alleging that the DOL’s final rule undermines the retirement savings of millions of workers nationwide. Most recently, the court denied the DOL’s motion to transfer the case’s venue to a federal court in the District of Columbia or the Northern District of Texas, where more than one district judge sits.

HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.

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Hall Benefits Law, LLC

HBL offers employers comprehensive legal guidance on benefits in mergers and acquisitions, Employee Stock Ownership Plans (ESOPs), executive compensation, health and welfare benefits, healthcare reform, and retirement plans. We counsel a wide spectrum of clients including small, mid-sized, and large companies, 401(k) investment advisors, health insurance brokers, accountants, attorneys, and HR consultants, just to name a few. HBL is passionate about advising clients, and we are dedicated to our mission: to provide comprehensive, personalized, and practical ERISA and benefits legal solutions that exceed client expectations.

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