U.S. Supreme Court decision: U.S. Airways, Inc. v. McCutchen
The United States Supreme Court issued an opinion today in an ERISA case regarding the breadth of Section 502(a)(3) relief, and the common-fund doctrine. While the decision was unanimous on the primary issues, the Court surprised us with a 5-to-4 split on a secondary issue. Overall, the decision in U.S. Airways, Inc. v. McCutchen is …
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Employer Excise Taxes Under Health Care Reform – Contraceptive Coverage Mandate, New Proposed Regulations and HHS Due Process and Privacy Report Deadline Was 1/1/13
As you may have heard, the U.S Supreme Court denied Hobby Lobby an injunction against the PPACA contraceptive coverage mandate. Employers who maintain health care plans are required to pay excise taxes for failure to comply with a particular aspect of the law, regardless of whether coverage is affordable.
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Circuit Decision Reminds Employers: Get Your Ducks in a Row at the EEOC Charge Stage and, for Goodness Sake, Know Your Own Policies
On our sister blog — Employer Law Report – Sara Jodka analyzes a recent case — Gaglioti v. Levin Group, Inc. (6th Cir. Dec. 13, 2012), which serves as a good reminder to employers to pin down their reasoning for terminating an employee at the start, and stick to it. In addition to his other …
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‘Tis the Season For Holiday Workplace Issues – Download our Holiday eBook for Employers
Last week, on our sister blog the Employer Law Report, we ran a five-part series that addressed the Top 5 Holiday Headaches for Employers. We have taken the series, along with a special “stocking stuffer” that tackles three prickly FMLA holiday questions, and wrapped them up for you into an eBook.
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How Do You Jack a 401(k) Plan? Santomenno v. John Hancock Life Insurance Company
If you are the fiduciary of an ERISA plan that invested in John Hancock group variable annuity contracts, we hope you have heard that three individuals have filed a lawsuit, claiming to be representing your plan and its participants and beneficiaries. You will not be receiving service of process.
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U.S. Airways, Inc. v. McCutchen: If you were the victim of a car accident, would you agree to a settlement that required you to pay?
We are anticipating the upcoming oral arguments (November 27) and decision in U.S. Airways, Inc. v. McCutchen, a case at the United States Supreme Court. This case involves a situation where the employer-sponsored plan fronted the payment of health care costs a participant incurred in an automobile accident, on the condition that the participant repay …
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Ohio Supreme Court Partially Reverses its Acordia Non-Compete Decision
This past May, we reported that the Ohio Supreme Court ruled in Acordia of Ohio, L.L.C. v. Fishel that following a merger, the surviving company may not be able to enforce employees’ non-compete agreements, where the agreements failed to contain an assignment clause, and the time period of the employees’ non-competes began to run as of the date of the merger. The Court reconsidered its decision, and issued a new decision today.
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Promising Health Care Plan Benefits in Excess of Plan Terms Can be More Costly Than Anticipated
We occasionally hear that an employer wants to promise greater health care coverage than is provided under the plan terms, either in a sympathetic scenario, or to facilitate a separation. Unfortunately, this “generosity” can leave the employer obligated to provide costly benefits, without insurance coverage. Treating a Qualified Beneficiary on Short-term Disability as Continuing to …
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DOL Sues Insurance Brokerage Firm – Selection of an Annuity Provider for a Terminating Pension Plan is a Fiduciary Duty
The Department of Labor (“DOL”) has sued an insurance brokerage firm, and its owner, for allegedly breaching fiduciary duties associated with purchasing an annuity contract for a terminating defined benefit plan. The complaint alleges that in 2003, the firm entered into an agreement to function as an ERISA fiduciary with respect to the purchase, for a …
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Summary of Benefits and Coverage Required for Fall Open Enrollment
Thank you to everyone who attended our recent Health Care Reform seminar! During the seminar, we mentioned the Summary of Benefits and Coverage, or SBC, required to be distributed as early as Sept. 23, 2012. One of the questions that arose about the SBC was, “Does this mean that the insurers now have to provide …
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