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
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11th Circuit Rules Rejects Father’s FMLA Claim for Leave to Prepare for Child’s Birth
The U.S. Court of Appeals for the Eleventh Circuit has ruled that an expectant father had no right to leave under the Family and Medical Leave Act (FMLA) to travel out of state and prepare for his child’s birth. The case is Tanner v. Stryker Corporation of Michigan, 11th Cir., No. 22-14188 (June 20, 2024).…
Bank of America Faces ERISA Suit Claiming Misuse of Forfeited 401(k) Funds
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…
Circuit Split Deepens with Home Depot’s 11th Circuit ERISA Win
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…
How Well-Constructed Dress Codes Can Promote Civility
While one may not automatically equate dress codes with workplace civility, dress codes do have a role in promoting a respectful and professional workplace culture. Conversely, a dress code policy can lead to discord among employees and even violate employees’ legal rights under some circumstances.
Employers may enforce job-related dress code policies that apply equally…
Fifth Circuit Upholds Decision Overturning Key Portions of Surprise Billing IDR Regulations
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…
Understanding Fiduciary Duty Under ERISA and Avoiding Potential Breaches Leading to Lawsuits
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…
Texas Federal Court Judge Issues Preliminary Injunction Blocking DOL’s New Fiduciary Rule
A Texas federal judge has issued a nationwide preliminary injunction blocking the U.S. Department of Labor’s (DOL) new fiduciary rule, which classifies more retirement advisors as fiduciaries under the Employee Retirement Income Security Act (ERISA). The DOL’s rule was set to go into effect on September 23, 2024, until the Court issued its order in…
House Rep. Proposes Designating PBMs as Health Plan Fiduciaries
U.S. House Rep. Nick Langworthy (R-NY) recently proposed during a House Oversight Committee Meeting that pharmacy benefit managers (PBMs) should be health plan fiduciaries. As fiduciaries under federal law, PBMs would have to make decisions that lower health plan costs and benefit patients.
According to Langworthy, the lack of a fiduciary duty to health plans…
Former Director Accuses Netflix of Creating Sexual Workplace Culture
A former risk management director has filed a wrongful termination lawsuit against Netflix, alleging that the streaming service giant fostered a sexual workplace culture that subjected her to unwanted sexual advances. The case is Jessica Combs v. Netflix Inc., Case Number 24STCV18761, Superior Court of the State of California, County of Los Angeles.
Jessica Combs…