Employees have now filed two separate 401(k) lawsuits against UnitedHealth Group (UHG), claiming that the company misused forfeited 401(k) funds from employees to reduce employer contributions into the plan. First, employees sued UHG in Kotalik et al. v. UnitedHealth Group Inc. et al., reportedly alleging that the company used the forfeited funds to pay employer contributions rather than defray
Employee Benefits
Significant 2025 ERISA Decisions for Benefits Attorneys
By Anne Hall
Various courts, including the U.S. Supreme Court, have decided cases involving the Employee Retirement Income Security Act (ERISA) so far this year. These decisions include the Supreme Court’s unanimous resurrection of an alleged retirement fund mismanagement case against Cornell University and the revival of a yacht company’s claim against its health benefits administrators for excessive fees by the Sixth Circuit.…
How Employers Are Using Office Amenities to Attract Onsite Employees
Colliers SVP Emily Hoffman says the traditional office model is not dead, just changing, and a return to the office full-time is on the rise.
Many believe offices will become a thing of the past post-pandemic; however, CNBC reported that 90 percent of companies say they will return to the office by 2024 but will utilize a hybrid model. This…
DOL Rescinds 2022 Guidance Directed to 401(k) Plan Fiduciaries Investing in Cryptocurrency
By Anne Hall
The U.S. Department of Labor (DOL) recently issued Compliance Assistance Release No. 2025-01. This release rescinds the DOL’s 2022 compliance assistance release concerning investments in cryptocurrency by 401(k) plan fiduciaries.
In its 2022 release, the DOL outlined its concerns about the prudence of 401(k) plan fiduciaries making cryptocurrency investments available to plan participants. The release cited various factors heightening…
Ritchie Trucking ESOP Case Settles for $1.9 Million
By Anne Hall
Ritchie Trucking Service Inc. has reached a $1.9 million settlement in a class action suit with participants in its employee stock ownership plan (ESOP). Plan participants had filed suit against Ritchie in the U.S. District Court for the Eastern District of California after a 2018 transaction transferred company ownership to the ESOP. The plaintiffs claimed that the transaction overvalued company…
Federal Parity Enforcement Freeze Results in Uncertainty for Benefits Attorneys
By Anne Hall
The Trump administration’s U.S. Departments of Labor (DOL), Treasury, and Health and Human Services (HHS) recently announced that it would no longer enforce regulations requiring employer health plans to analyze and compare behavioral healthcare with physical healthcare coverage. Along with a lack of enforcement, the agencies intend to review their enforcement processes more broadly.
The announcement delays a Biden administration…
Reproductive Health Privacy in Flux: Texas Ruling vs. SCOTUS Limits
A Texas federal court just shook the foundation of HIPAA’s reproductive health privacy protections — but the Supreme Court may have the final word. In a sweeping decision, Judge Matthew Kacsmaryk vacated key provisions of the 2024 Reproductive Health Rule, stripping away national safeguards on disclosing reproductive health information. Yet, a recent SCOTUS ruling in Trump v. CASA, Inc. could rein in the…
Arbitration Provision at Issue in Ninth Circuit Appeal of ERISA 401(k) Suit
By Anne Hall
The Capital Group Companies Inc. is arguing for enforcement of an arbitration provision in its 401(k) plan on appeal before the U.S. Circuit Court for the Ninth Circuit. The company claims that the lower court erred in refusing to enforce the arbitration provision. The case is Pover v. The Capital Group Cos. Inc. et al., Case Number 24-5298, U.S.…
Prudential Defends Lower Court Win in 401(k) Suit on Appeal
By Anne Hall
Prudential Insurance Co. of America recently filed an appellate brief with the U.S. Court of Appeals for the Third Circuit, arguing that the lower federal district court correctly granted summary judgment in a class action lawsuit. Plaintiff workers have appealed the court’s decision, alleging that Prudential violated its fiduciary duties under the Employee Retirement Income Security Act (ERISA) by making…
Pest Company Moves to Dismiss Workers’ Tobacco Fee Class Action
By Anne Hall
Rentokil, a United Kingdom-based pest control company, moved to dismiss a proposed class action suit alleging it charged tobacco users more for health benefits than non-tobacco users without providing a reasonable way to avoid the surcharges. In support of its motion to dismiss, Rentokil claimed that the named plaintiffs lacked standing to bring the suit because they were ineligible for…