Since September 2023, plaintiffs have filed numerous class action lawsuits alleging that the use of 401(k) forfeitures to offset future employer contributions violates the Employee Retirement Income Security Act of 1974...more
In Hutchins v. HP Inc., the U.S. District Court for the Northern District of California dismissed – with prejudice – the plaintiff's claims challenging the use of forfeited employer 401(k) contributions. This is the latest...more
2/13/2025
/ 401k ,
Benefit Plan Sponsors ,
Class Action ,
Compliance ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Employment Litigation ,
ERISA Litigation ,
Fiduciary Duty ,
Forfeiture ,
Retirement Plan
There has been a recent uptick in ERISA class actions challenging the use of 401(k) plan forfeitures. Forfeitures are employer contributions that participants forfeit when they leave employment before those contributions vest...more
1/24/2025
/ 401k ,
Benefit Plan Sponsors ,
Class Action ,
Employee Retirement Income Security Act (ERISA) ,
Employer Contributions ,
Fiduciary Duty ,
Forfeiture ,
Plan Administrators ,
Retirement Plan ,
Risk Management ,
U.S. Treasury ,
Vesting
The Employee Retirement Income Security Act (ERISA) prohibits employers who offer health and welfare benefit plans from discriminating against plan participants on the basis of a health status-related factor, such as a...more
12/3/2024
/ Anti-Discrimination Policies ,
Benefit Plan Sponsors ,
Compliance ,
Department of Labor (DOL) ,
Discrimination ,
Employee Retirement Income Security Act (ERISA) ,
Employer Group Health Plans ,
Employer Liability Issues ,
Fiduciary ,
Loper Bright Enterprises v Raimondo ,
Pending Litigation ,
Plan Participants ,
Putative Class Actions ,
Tobacco ,
Tobacco-Cessation ,
Wellness Programs
The U.S. Supreme Court recently granted a petition for a writ of certiorari to review the U.S. Court of Appeals for the Second Circuit's decision in Cunningham v. Cornell University, 86 F.4th 961 (2d Cir. 2023). In doing so,...more
Chavez v. Plan Benefit Services, Inc., 108 F.4th 297 (5th Cir. 2024), began when three employees of a single employer sued the service providers of their health and welfare benefit plan for allegedly charging excessive fees...more
10/31/2024
/ Article III ,
Benefit Plan Sponsors ,
Breach of Duty ,
Duty of Loyalty ,
Employee Retirement Income Security Act (ERISA) ,
Excessive Fees ,
Federal Rules of Civil Procedure ,
Fiduciary Duty ,
Petition for Writ of Certiorari ,
Plan Participants ,
Retirement Plan ,
SCOTUS ,
Split of Authority ,
Standing
As previously discussed, courts continue to disagree over the enforceability of mandatory arbitration provisions containing class action waivers set forth in benefit plans governed by the Employee Retirement Income Security...more
11/9/2023
/ Arbitration ,
Benefit Plan Sponsors ,
Class Action ,
Class Action Arbitration Waivers ,
Employee Retirement Income Security Act (ERISA) ,
ESOP ,
Federal Arbitration Act ,
Mandatory Arbitration Clauses ,
Petition for Writ of Certiorari ,
Split of Authority ,
Unenforceable Contract Terms
The U.S. Department of Labor has issued a stark warning to ERISA fiduciaries about offering cryptocurrencies and related products as potential investment options for plan participants. In Compliance Assistance Release No....more
In Hughes v. Northwestern University, current and former participants in Northwestern University's defined-contribution retirement plans filed litigation on behalf of the plans' participants asserting that the University, its...more
2/25/2022
/ 401k ,
Benefit Plan Sponsors ,
Class Action ,
Duty of Prudence ,
Employee Retirement Income Security Act (ERISA) ,
Excessive Fees ,
Fees ,
Fiduciary Duty ,
Hughes v. Northwestern University ,
Plan Participants ,
Retirement Plan ,
Retirement Plan Providers ,
SCOTUS
Courts around the country continue to approach the enforceability of class-action waivers and arbitration provisions in ERISA plan documents differently. This alert discusses recent decisions addressing these issues in ERISA...more
Carter v. Southwest Airlines Co. Board of Trustee, Case No. 8:20-cv-1381-WFJ-JSS (M.D. Fla.) was one of the latest cases in which a healthcare-plan beneficiary attempted to bring claims based upon alleged technical...more
The U.S. District Court for the Northern District of Illinois has dismissed a putative class action lawsuit brought under the Employee Retirement Income Security Act of 1974 (ERISA) by a participant of 401(k) plan against the...more