Employee Benefits Archives - Page 56 of 151

California COVID-19 Supplemental Paid Sick Leave Act (AB 1867): Paid Leave, Notice and Posting Requirements Effective Immediately

by Marjorie C. Soto Garcia | Sep 25, 2020 | Employee Benefits, Employment, Health and Welfare Plans, Labor

On September 9, 2020, California Governor Gavin Newsom signed into law Assembly Bill 1867, the California COVID-19 Supplemental Paid Sick Leave Act. According to the law, employers with more than 500 employees nationally, and employers of healthcare-provider and emergency-responder employees previously exempted from Families First Coronavirus Response Act (FFCRA) requirements, must provide California employees with two weeks of supplemental paid sick leave for specified COVID-19 reasons. Additionally, the law requires employers to comply with urgent-notice and posting requirements that are administratively burdensome.

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Last Chance for Enhanced COVID-19-Related 401(k) Loans: September 22

by Jeffrey Holdvogt | Sep 18, 2020 | Employee Benefits, Retirement Plans

The Coronavirus Aid, Relief and Economic Security (CARES) Act, passed by US Congress in March in response to the COVID-19 pandemic, permits a “qualified individual” to increase the amount they can borrow from a 401(k). Such individuals may borrow 100% of their account balance up to $100,000 (less any outstanding loans).

The deadline for taking enhanced loans is September 22. In a recent article by Forbes, McDermott Will & Emery partner Jeff Holdvogt highlights some of the tax implications individuals should consider.

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Using Paid Time Off Funds to Provide Student Loan Relief to Employees

by Jeffrey Holdvogt | Sep 17, 2020 | Employee Benefits, Employment, Retirement Plans

What do unused paid-time-off (PTO) days, student loan debt and the coronavirus have in common? An opportunity for employers to provide financial relief to employees who are increasingly putting off vacations due to the COVID-19 pandemic.

In a recent article by the Society of Human Resource Management, Jeff Holdvogt, a partner in McDermott’s Chicago office, explained that more employees, particularly Millennials, are telling employers that benefits to help pay off student loan debt would go a long way to attracting and retaining them.

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SDNY Vacates Portion of DOL Final Rule on Families First Coronavirus Response Act

by Lindsay Ditlow | Sep 9, 2020 | Employee Benefits, Employment

On August 3, 2020, the US District Court for the Southern District of New York struck down four parts of the US Department of Labor’s (DOL) Final Rule implementing the Families First Coronavirus Response Act (FFCRA). A copy of the court’s ruling is available here. The FFCRA provides COVID-19-related sick leave and family leave to employees of businesses with fewer than 500 employees.

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It’s Back to Basics for Employee Benefits Priorities

by Lisa Loesel | Sep 3, 2020 | Employee Benefits, Health and Welfare Plans, Retirement Plans

Prior to the pandemic, ultra-low unemployment at roughly 3.3% put a spotlight on ‘lifestyle benefits’ for employees such as gym memberships and pet sitting. When the COVID-19 crisis hit, the focus immediately shifted for many plan sponsors.

Some employers are now offering high-deductible health plans (HDHPs) paired with health savings accounts (HSAs). Scaling back on company matches to 401(k) plans and contributions to profit sharing accounts are two other areas where employers are trying to save money, said Lisa Loesel, an employee benefits partner at McDermott.

“Depending on what kind of plan they have and the terms set forth for them, we have seen plan sponsors delay the timing of their contributions, change the amount, move from a fixed to a discretionary amount or even cut their contributions indefinitely,” Loesel said in a recent article for PLANSPONSOR Magazine.

Among sponsors offering a pension plan, more are de-risking their plans. “The market happens to be favorable for doing this right now,” she says.

In Spain, Employers Contend with Pandemic’s Changing Impact

by Brian S. Cousin | Sep 1, 2020 | Employee Benefits, Employment

Employers in Spain are contending with the ongoing effects of the coronavirus pandemic, which continues to raise health and safety concerns. A resurgence of COVID-19 cases in July prompted some parts of the country to re-implement restrictions that had been lifted earlier.

“Spain was among the countries hit hardest by the coronavirus,” said Brian Cousin, head of the employment practice group at McDermott Will & Emery, in a recent article by the Society for Human Resource Management (SHRM). Employers and HR professionals in Spain should monitor news about national and local restrictions and regulations, as well as new guidance issued by local health authorities, the Spanish Health Ministry and the World Health Organization, according to Cousin. “Local and regional requirements can change on a daily basis,” he said.

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ESOP Litigants Play by Their Own Valuation Rules

by Richard J. Pearl | Aug 27, 2020 | Benefit Controversies, Digital Health, Employee Benefits, Employee Stock Ownership Plans (ESOPs), Fiduciary and Investment Issues, Retirement Plans

Imagine if you were playing on a baseball team and the opposing players argue that you are violating the rules of soccer. That’s what it’s like when private parties and the Department of Labor (DOL) challenge Employee Stock Ownership Plan (ESOP) valuations. Plaintiffs play a very different valuation ballgame, which confounds experts who go up against them in a dispute involving allegations that an ESOP paid more than “fair market value” for stock of the sponsor company. In a recent webinar, McDermott attorney Richard Pearl discussed valuation concepts and some fundamental issues under the Employee Retirement Income Security Act.

“Because of Bostock” – Court Delays HHS Rule Re-interpreting Section 1557 Discrimination “Because of Sex”

by Jacob Mattinson, Todd Solomon, Gregory Fosheim and Winnie Uluocha | Aug 25, 2020 | Benefit Controversies, Employee Benefits, Health and Welfare Plans

One day before an updated rule of the US Department of Health and Human Services regarding Section 1557 of the Patient Protection and Affordable Care Act took effect, the US District Court for the Eastern District of New York ordered a stay and issued a preliminary injunction precluding the most recent final rules from becoming operative. Entities subject to Section 1557 should — at least until decisions are issued in cases pending in US district courts — be cautious in their approach to their non-discrimination compliance obligations.

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Updated PBGC Guidance for Defined Benefit Plans

by Jeffrey Holdvogt | Aug 21, 2020 | Employee Benefits, Fiduciary and Investment Issues, Retirement Plans

Earlier this year, the US Pension Benefit Guaranty Corporation (PBGC) issued a final rule, modifying PBGC regulations that apply to defined benefit pension plans. Among those changes were revisions to: (i) the reportable event notification requirements; (ii) annual financial and actuarial information (Form 4010) reporting; (iii) single-employer plan termination rules; and (iv) the premium rate calculation rules. The rule was generally effective on March 5, 2020, but some provisions have different applicability dates.

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Multiemployer Pension Plans: Addressing the Issue of Underfunding

by Todd Solomon | Aug 11, 2020 | Employee Benefits, Retirement Plans

A significant issue facing many business owners is the impact of underfunded multiemployer pension plans. This is most common, but not exclusive to, unionized businesses. McDermott Partner and Global Head of the Firm’s Employee Benefits and Executive Compensation Practice Group Todd Solomon joins Domenic Rinaldi, owner and managing partner of Sun Acquisitions, for a recent episode of the M&A Unplugged Podcast to talk about multiemployer pension plans and discuss proactive steps owners can take to get ahead of future issues regarding pension participants.

Access the podcast.

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