Practical HR Tips, News & Advice. Updated Daily.
Typically, interference with an employee’s COBRA coverage rights raises legal claims under ERISA; however, employers should take heed that in some instances other federal laws are invoked. Recently, an employer was found to have violated federal labor law when it engaged in an unlawful lockout of union employees that included the cancellation of their health […]
Employer sponsors of health plans must count members in retiree-only plans and COBRA-eligible plans for purposes of paying into health reform’s Patient-Centered Outcomes Research Institute. Furthermore, employees covered under two or more “specified” policies can be counted (and taxed) more than once. The IRS final rule on employer payment of PCORI fees disregarded employer requests to exclude […]
Here’s a reminder that for COBRA compliance purposes, small employers must count their employee population differently if they are under common control. Recently, an employer was sued for providing just three, rather than 18, months of COBRA coverage. Because it had a workforce of fewer than 20 employees, the employer tried to fend off those […]
Sometimes an employer may delay transfers of payroll deductions to employees’ retirement accounts. That’s a breach of fiduciary responsibility, but a recent decision by the U.S. District Court for the District of Massachusetts may offer them some comfort. Managing retirement plan administration can be a burden for busy small business owners who aren’t financial professionals. […]
Employers that sponsor health plans are bracing themselves for a significant tax hit under health reform. Health reform’s transitional reinsurance program, which will require insurers and self-funded plans to pay billions of dollars to partly reimburse commercial insurers writing individual policies for patients with very high medical costs, imposes large costs on employers to further […]
An employer/plan administrator continues to get an expensive lesson on the risks of having both inadequate COBRA notice procedures and poor explanations of how those procedures work. An “inefficient, unwieldy” notice process — coupled with evasive and contradictory answers from employees on why a qualified beneficiary did not receive a COBRA election notice — led […]
A victory by the health plan participant in US Airways v. McCutchen, now before the U.S. Supreme Court, may erode ERISA plans’ ability to enforce plan terms as written, a legal expert tells the blog. In McCutchen, the Court has a very difficult balancing act to answer whether: (1) an ERISA health plan administrator is entitled […]
Federal guidance on the Americans with Disabilities Act states that all employee medical information must be kept confidential, but that goes above and beyond what the statute requires, the 7th U.S. Circuit Court of Appeals ruled Nov. 20. Despite what the U.S. Equal Employment Opportunity Commission says, ADA protects only information obtained in response to […]
A recent Illinois federal bankruptcy court ruling is an important reminder to ERISA plan fiduciaries that violations of fiduciary duties under ERISA can result in personal liability from which Chapter 7 bankruptcy proceedings cannot protect the fiduciary. The case is In re John Dombek III, No. 11-40894 (Bankr. N.D. Ill. Oct. 16, 2012); In re John […]
Plan sponsors and administrators face many issues when making disbursements from retirement plans. A recent court ruling on a payout based on a fraudulent claim should reassure those making distributions that if the distribution was in accordance with the plan terms, an employer may not suffer a penalty. In Foster v. PPG Industries Inc. (No. […]