Benefits News Clips 2/23/2024

McGriff Facts in a Flash

• A proposed class action lawsuit filed against Johnson & Johnson alleges that the company breached its fiduciary duties under ERISA by mismanaging its prescription drug benefits plan. This lawsuit should highlight to employers the importance of adhering to their fiduciary duties when managing their health plans. Though this case is the first of its kind, it is expected that similar cases may be filed.

Benefits News

In Updated HIPAA Security Rule Guide, NIST Addresses Cybersecurity and Other Topics

February 22, 2024 – Thomson Reuters Practical Law

HHS’s Office for Civil Rights has released a compliance guide for the HIPAA Security Rule, developed with the National Institute of Standards and Technology (NIST), detailing standards for protecting electronic health information, and offering guidance on risk assessments, risk management, and implementation considerations.

EBSA Highlights Its 2023 Enforcement Results

February 21, 2024 – Thomson Reuters

The Department of Labor’s fact sheet on ERISA enforcement for the 2023 fiscal year highlights over $1.4 billion in total monetary recoveries, including benefits restored through enforcement actions and informal resolutions, along with nonmonetary corrective actions addressing various plan issues, underscoring the agency’s extensive oversight over retirement, health and welfare benefit plans.

The ABA’s Summary of 2023 FMLA Court Decisions Has Arrived!

February 21, 2024 – Littler Mendelson P.C.

The American Bar Association’s Federal Labor Standards Legislation Committee has released its annual comprehensive report comprising every FMLA decision from federal courts in the previous year, serving as a valuable resource for HR professionals and employment attorneys.

How Pending Fishing Boat Cases at the Supreme Court Could Rock The Benefits Plan Boat

February 21, 2024 – McDermott Will & Emery

Pending Supreme Court cases have the potential to weaken judicial deference to agencies and could increase uncertainty and enable successful legal challenges against agency regulations, impacting various areas including employee benefits such as redefining investment fiduciaries, revising mental health parity standards, and regulating ESG investments.

Sponsoring a Group Health Plan for Employees? What Employers Need to Know About the Consolidated Appropriations Act

February 16, 2024 – Littler Mendelson P.C.

Employers sponsoring health insurance benefits face significant legal burdens under laws like ERISA, the Internal Revenue Code, and the ACA, heightened by the Consolidated Appropriations Act (CAA) of 2021, necessitating familiarity with its requirements to avoid litigation and government audits, particularly concerning increased disclosures and fiduciary obligations, which presents both challenges and opportunities for plan sponsors.

Recent Court Ruling Teaches Florida Employers 5 Key Lessons to Avoid Joint Employer Troubles

February 16, 2024 – Fisher & Phillips LLP

A recent federal court ruling held that a company was not deemed a joint employer in a discrimination lawsuit, providing Florida employers with a five-step roadmap to avoid unintentional joint-employer relationships. These include developing clear contractual agreements, ensuring consistency in practice, maintaining separation in forms and policies, staying updated on changes to applicable law, and regularly auditing contractual agreements and employment practices to minimize risks.