Employers Should Apply 401(k) Forfeitures to Benefit Employees

Kollman & Saucier
Kollman & Saucier
05/31/2024
Qualcomm designed a 401(k) plan for employees that allowed Qualcomm to use forfeitures to reduce employer contributions or apply to plan administrative expenses.  Qualcomm chose the former. After Qualcomm elected to apply forfeited contributions to reduce employer contributions, a group of plan participants challenged that action in federal court, alleging that Qualcomm had a fiduciary duty to use the forfeited contributions to lower the...
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MarylandSaves: A Private Employer Retirement Savings Program, Launches September 1, 2022

Kollman & Saucier
Kollman & Saucier
07/13/2022
Maryland employers need to be aware that, effective September 1, 2022, certain employers must set up a mandatory retirement program for employees. In 2016, the Maryland General Assembly passed House Bill 1378 creating the Maryland Small Business Retirement Savings Program and Trust, or “MarylandSaves” for short.  Initially planned to go into effect in 2020, but delayed due to the COVID-19 pandemic, the law creates an obligation on employers...
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Employers, You have Another Tool to Help you with Workforce Vaccine Mandates: Insurance Premium Discounts

Kollman & Saucier
Kollman & Saucier
10/11/2021
As employees continue to return to offices, employers around the United States are looking for assistance in how to require and/or incentivize its employees to receive a COVID-19 vaccine.  Some of these initiatives come as employers prepare to confront the executive orders mandating vaccines on some workforces. On September 9, 2021, President Biden announced his Path Out of the Pandemic: Covid-19 Action Plan that in part, set a requirement that all...
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Department of Labor Releases Guidance for Extension of COBRA Benefits Under the American Rescue Plan

Vincent Jackson
Vincent Jackson
04/09/2021
On April 7, 2021, the Department of Labor released new guidance for the extension of COBRA benefits under the recently passed American Rescue Plan Act of 2021 (ARP).  COBRA continuation coverage provides group health plan benefits to individuals who were recently terminated or subject to a reduction in hours that caused a loss of health care coverage.  COBRA generally applies to all private-sector group health plans maintained by employers with at...
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Compensation Agreement Did Not Modify At-Will Status, Eighth Circuit Holds

Kollman & Saucier
Kollman & Saucier
06/29/2018
As any regular reader of this blog knows, at-will employment – under which an employee may be terminated for almost any reason, or no reason at all – is the “default” relationship in most jobs.  There is also no requirement in most industries that parties utilize an employment contract. Parties who choose to form an employment contract, however, may (but are not required to) modify this at-will employment in a variety of ways.  Most...
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Fifth Circuit Vacates DOL Fiduciary Rule

Kollman & Saucier
Kollman & Saucier
03/28/2018
On March 15, 2018, the United States Court of Appeals for the Fifth Circuit vacated the Department of Labor’s Fiduciary Rule.  The Fiduciary Rule (which is actually seven different rules promulgated by the Department of Labor) imposed heightened standards on retirement investment advisors, and expanded the definition of fiduciary under ERISA.  The Rule went into effect on June 9, 2017, with a transition period until January 1, 2018. After...
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EEOC’s Wellness Program Rules Run into a Roadblock

Healthcare in the U.S. is a hard issue.  And it’s expensive too.  Ok, you know that.  Years ago, some employers concluded that one way to reduce healthcare costs was to figure out who might get really sick and then either not hire them, or fire them.  Really a bad idea, and one that led to passage of the Genetic Information Non-Discrimination Act (GINA) and similar state laws. So, many employers looked to more “benign” ways to encourage...
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Updated Guidance For The Fiduciary Rule

Kollman & Saucier
Kollman & Saucier
05/29/2017
On May 22, 2017, the Department of Labor issued updated guidance for the fiduciary rule.  You will remember that the fiduciary rule imposes certain obligations on investment advisors, and deems them fiduciaries towards their customers. The rule goes into effect on June 9, 2017, with a transition period until January 1, 2018.  At that time, further requirements take effect.  For those advisors who have not yet familiarized themselves with the new...
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Maryland Legislative Update - The Healthy Working Families Act

Lawmakers in Maryland have attempted to pass a paid sick leave bill for a number of years.  With the General Assembly reconvening on Wednesday, the effort is being renewed this year.  Thus far, legislators have introduced House Bill 1 and House Bill 65 -- both are versions of the Healthy Working Families Act, which was introduced last session as House Bill 580.  Governor Hogan has said that he will introduce paid sick leave legislation of his...
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Supreme Court Set to Clarify Issues Surrounding Vesting of Retiree Health Benefits

Kollman & Saucier
Kollman & Saucier
11/14/2014
On November 10, 2014, the Supreme Court heard oral arguments in M & G Polymers USA, LLC v. Tackett, a case that has the potential to reshape significantly the legal landscape of retiree health benefit provisions in collective bargaining agreements (CBA). At issue is the legal framework courts should apply when faced with CBA retiree health benefit cases. There is currently a wide split among several federal circuits on the issue. On the...
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