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Benefits
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March 25, 2024
Class Cert. In United Military Leave Suit Will Have To Wait
An Illinois federal judge said he had doubts about claims that United Airlines owes pay to pilots taking military leaves, saying he'll wait for several appeals courts to decide the fate of similar suits before signing off on class certification.
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March 22, 2024
Activists Press Full 5th Circ. To Nix Nasdaq Diversity Rule
Conservative groups opposing a requirement that Nasdaq-listed companies publicly disclose board diversity data are pressing the full bench of the Fifth Circuit to declare the rule unconstitutional, arguing the U.S. Securities and Exchange Commission's involvement in the rulemaking process transforms the requirement into an unconstitutional restraint on free speech.
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March 22, 2024
Dril-Quip Investor Alleges Merger Will Entrench Board
A shareholder of oil drilling equipment company Dril-Quip Inc. hit its directors with a proposed class action in Delaware Chancery Court, alleging they added unreasonable provisions to the terms of its merger with Innovex Downhole Solutions Inc. to disenfranchise shareholders.
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March 22, 2024
Missed Deadline May Doom Union Worker's Benefits Fight
A Michigan federal judge on Friday warned a union worker alleging the United Auto Workers mismanaged her claim for benefits that she could have her lawsuit dismissed if she doesn't respond to the union's request to toss the accusations.
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March 22, 2024
Legal Tech Execs Can't Arbitrate ESOP Valuation Fight
A legal technology company's executives and related entities can't arbitrate a proposed class action alleging they undervalued the company's shares when shutting down its employee stock ownership plan, thereby costing participants $35.4 million, a Georgia federal judge ruled, finding the plan's arbitration clauses blocked remedies allowed by federal benefits law.
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March 22, 2024
Radiology Co., Trustee Must Face Ex-Worker's ESOP Suit
A Colorado federal judge refused to toss a proposed class action accusing a radiology company and its trustee of overcharging the company's employee stock ownership plan in a $163.7 million sale, saying the former workers' complaint puts forward enough details to back up their allegations.
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March 22, 2024
Union Seeks Quick Win In Nuclear Plant Healthcare Row
An IBEW local is urging a Pennsylvania federal judge to grant it a quick win in its fight to send to arbitration a grievance challenging a nuclear power plant operator's healthcare benefits contributions, arguing that the dispute falls within the parameters of the union's collective bargaining agreement.
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March 22, 2024
Plastics Co. Settles Claim It Forced Out Enlisted Worker
A plastics company that allegedly refused to promote a worker because he was about to deploy with the Ohio Air National Guard has settled claims that it discriminated against him and ultimately forced him to quit because of his military service.
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March 22, 2024
Congress Spares Employee Benefits From $400M DOL Cut
A commitment from Congress to keep funding level for the U.S. Department of Labor's sub-agency that oversees employee benefits despite a $400 million agency-wide cut was one of the highlights for benefits attorneys in a new fiscal year 2024 spending deal. Here are three takeaways from attorneys on the funding agreement.
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March 21, 2024
Chemours Faces Investor Suit Over Alleged Exec Misconduct
Chemical company The Chemours Co. and four of its current and former executives face claims they hurt investors by manipulating a certain financial metric so the executives might receive greater compensation under the company's incentive plans.
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March 21, 2024
Sen. Warren Wants SEC To Probe Musk Control Of Tesla Board
Sen. Elizabeth Warren, D-Mass., urged the U.S. Securities and Exchange Commission on Thursday to investigate whether Tesla's board of directors is independent from CEO Elon Musk, saying recent reports suggest the billionaire controls the board for his personal benefit.
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March 21, 2024
Cigna Slams Suit's Claims Of Algorithm-Led Coverage Denials
Insurance giant Cigna Group wants a Connecticut federal court to toss a proposed class action alleging that an algorithm unlawfully rejected hundreds of thousands of claims en masse and without a proper review, arguing the suit is based on a "misleading" news article and shows a misunderstanding of the health insurer's claim denial process.
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March 21, 2024
6th Circ. Revives McKee's Network Plan Fight With Thrifty Med
The Sixth Circuit reinstated on Thursday McKee Foods Corp.'s suit against Thrifty MedPlus Pharmacy alleging Tennessee law requiring pharmacy benefit managers to let "any willing pharmacies" participate in a network was preempted by the Employee Retirement Income Security Act, finding that amendments made to the statute didn't render McKee's claims moot.
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March 21, 2024
Defendants Cut As Ex-NFL Pros' Benefits Suit Moves Forward
A Maryland federal judge has let NFL officials off the hook in a lawsuit that alleges the league's disability plan incentivizes doctors to deny claims regardless of evidence, while declining to dismiss the complaint entirely.
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March 21, 2024
Healthcare Co. Beats Suit Over TDF Funds' Performance
A California federal judge granted a win to a healthcare company and its investment adviser in a class action challenging what former workers claim are shoddy target-date-funds included in the company's 401(k) plan, saying the funds at issue performed better than comparable investments.
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March 21, 2024
DOL Urges 5th Circ. To Back Biden Admin. ESG Investing Rule
The U.S. Department of Labor urged the Fifth Circuit on Thursday to uphold a rule allowing retirement advisers to consider social issues such as climate change when choosing investments, arguing that conservative states challenging the rule haven't shown it defies federal benefits law.
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March 21, 2024
Plan Admin. Escapes Ex-Aerospace Execs' Death Benefits Suit
A third-party administrator isn't liable for misrepresentation and negligence claims from former aerospace company executives over death benefits, a Pennsylvania federal judge has ruled, saying the administrator isn't to blame for the plaintiffs' lack of understanding about the termination of a deferred compensation plan.
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March 21, 2024
EBSA Gets Level Funding Of $191.1M In Spending Deal
Spending leaders in the House and Senate agreed Thursday to provide $191.1 million in fiscal year 2024 for the U.S. Department of Labor's sub-agency overseeing employee benefits, a level that's identical to what lawmakers agreed to last fiscal year.
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March 21, 2024
Salesforce Can't Ax Vast Class Suit Over 401(k) Management
Salesforce must face a class action comprising up to 50,000 employees alleging the company allowed its 401(k) plan to be filled with expensive and poorly performing investment options, a California federal judge ruled, finding the workers provided enough evidence to proceed to trial.
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March 21, 2024
'Sibling Squabbles' At NJ Law Firm Sent Back To State Court
A woman formerly employed as an administrator at her sister's New Jersey law firm won her bid to have her suit alleging an anticipatory breach of her retirement plan and retaliatory firing sent back to state court this week.
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March 21, 2024
Government Contractor Wants Out Of Exit Pay Suit
A government contractor said federal law doesn't cover its policy giving employees a bonus upon retirement, but workers lodging a lawsuit against the company weren't eligible for the payments anyway, urging a North Carolina court to toss the suit.
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March 20, 2024
Dems Float Bill To Require Earned Paid Leave For Workers
A Democratic lawmaker from Rhode Island proposed a bill Wednesday that would guarantee U.S. workers the ability to earn at least 10 paid vacation days per year — a move that could extend the benefit to almost 27 million people who lack access to compensated time off.
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March 20, 2024
UK Pension Fraud Fund To Pay Out £416M To Victims By 2026
The U.K.'s pension lifeboat scheme said Wednesday it expects to pay up to £416.7 million ($530 million) in compensation to members of pension schemes that have been hit by scams.
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March 20, 2024
Health And Safety Top Risk For Directors, Global Survey Says
Health and safety is the top risk for directors and officers worldwide, according to a survey published Wednesday, in a "surprise" result partly attributed to the lingering impact of the COVID-19 pandemic on businesses and increasing mental health considerations.
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March 20, 2024
SEC Proxy Roundup: Verizon, UPS Escape ESG Proposals
Verizon and UPS may exclude from their proxy statements shareholder proposals on social policy and climate change matters, according to U.S. Securities and Exchange Commission staff, who also denied various other requests from corporations looking to escape separate social and politics-related proposals.
Expert Analysis
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3rd Circ. Ruling Offers Tools To Manage Exempt Employees
The Third Circuit’s recent opinion in Higgins v. Bayada Home Health, finding the Fair Labor Standards Act allows employers to deduct paid time off for missed employee productivity targets, gives companies another resource for managing exempt employee inefficiency or absenteeism, says Laura Lawless at Squire Patton.
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Illinois Paid Leave Law May Create Obstacles For Employers
Illinois' Paid Leave for All Workers Act, which goes into effect next year, could create issues and potential liability for employers due to its ambiguity, so companies should review and modify existing workplace policies to prevent challenges, including understaffing, says Matt Tyrrell at Schoenberg Finkel.
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Opinion
Federal Judge's Amici Invitation Is A Good Idea, With Caveats
An Arkansas federal judge’s recent order — inviting amicus briefs in every civil case before him — has merit, but its implementation may raise practical questions about the role of junior attorneys, economic considerations and other issues, says Lawrence Ebner at the Atlantic Legal Foundation.
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9 Years Post-Ritchie, Some Clarity On Texas Fiduciary Duties
The Texas Supreme Court's 2014 Ritchie decision made shareholder conduct harder to police because it rendered some actions unassailable, regardless of the effect on minority owners, but a Texas appellate court's recent opinion in Sohani v. Sunesara provides useful instruction on how to structure an attack on self-dealing, say Robert Wilkins and Kaitlyn Faucett at Lightfoot Franklin.
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Fox Ex-Producer Case Is A Lesson In Joint Representation
A former Fox News producer's allegations that the network's lawyers pressured her to give misleading testimony in Fox's defamation battle with Dominion Voting Systems should remind lawyers representing a nonparty witness that the rules of joint representation apply, says Jared Marx at HWG.
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Employee COVID Protocols After National Emergency Ends
Now that the Biden administration has announced its plan to officially end the COVID-19 national emergency and public health emergency in May, employers must carefully consider how to proceed with their mandatory vaccine policies and other responses to the pandemic, say Elisabeth Hall and Olubusola Olanrewaju at Miles & Stockbridge.
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How Employers Can Leverage Retirement Law Changes
The SECURE Act 2.0 includes significant changes to benefits plans that affect employer plan sponsors and participants alike, but there are particular provisions that can and should serve as retention tools for sponsors who deliberately and thoughtfully convey these benefits to the workforce, say Anne Tyler Hall and Phil Koehler at Hall Benefits Law.
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Opinion
Stanford Law Protest Highlights Rise Of Incivility In Discourse
The recent Stanford Law School incident, where students disrupted a speech by U.S. Circuit Judge Kyle Duncan, should be a reminder to teach law students how to be effective advocates without endangering physical and mental health, says Nancy Rapoport at the University of Nevada.
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Dispute Prevention Strategies To Halt Strife Before It Starts
With geopolitical turbulence presenting increased risks of business disputes amid court backlogs and ballooning costs, companies should consider building mechanisms for dispute prevention into newly established partnerships to constructively resolve conflicts before they do costly damage, say Ellen Waldman and Allen Waxman at the International Institute for Conflict Prevention and Resolution.
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Garmon Defense Finds New Relevance As NLRB Stays Active
With a more muscular National Labor Relations Board at work, employers should recall that they have access to a powerful yet underutilized defense to state law employment and tort claims established under the U.S. Supreme Court decision in San Diego Building Trades Council v. Garmon, say Alex Meier and Cary Reid Burke at Seyfarth.
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The Important Role Of Contra Proferentem In ERISA Cases
A Pennsylvania federal court's recent decision in Stein v. Paul Revere Life Insurance illustrates what happens when ERISA plan terms are unclear, and why the contra proferentem principle should be applied uniformly in all ERISA cases, says Mark DeBofsky at DeBofsky Law.
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Practical Skills Young Attorneys Must Master To Be Happier
For young lawyers, finding happiness on the job — with its competitive nature and high expectations for billable hours — is complicated, but three skills can help them gain confidence, reduce stress and demonstrate their professional value in ways they never imagined, says career counselor Susan Smith Blakely.
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No Surprises Act Gives Plan Sponsors Savings Opportunities
Under the No Surprises Act, the potential savings for an ERISA group health plan and its participants are significant, and sponsors should focus on the negotiation of third-party administrator service agreements to avoid exposure to breach of fiduciary claims for payment of excessive fees, say attorneys at Hall Benefits.
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ABA Opinion Should Help Clarify Which Ethics Rules Apply
A recent American Bar Association opinion provides key guidance on interpreting ABA Model Rule 8.5's notoriously complex choice-of-law analysis — and should help lawyers authorized to practice in multiple jurisdictions determine which jurisdiction's ethics rules govern their conduct, say attorneys at HWG.
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5 Potential Perils Of Implementing Employee Sabbaticals
As companies try to retain employees with sabbatical benefits amid record-low unemployment rates, employers should be aware of several potential legal risks when considering policies to allow these leave periods, say Jesse Dill and Corissa Pennow at Ogletree.