On August 25, 2023, in response to concerns regarding the timely implementation of SECURE 2.0’s Roth catch-up contribution requirement, the IRS issued Notice 2023-62, which provides that 401(k), 403(b) and 457(b) plans now have until December 31, 2025 to comply.
Continue Reading SECURE 2.0 Act:  Hip, Hip Delay! IRS Establishes a Two-Year Transition on the Roth Catch-Up Contribution Requirement

On November 22, 2022, the U.S. Department of Labor (“DOL”) announced a final rule (the “2022 Final Rule”) that allows plan fiduciaries to consider climate change and other environmental, social, and governance (“ESG”) factors when selecting retirement investments and exercising shareholder rights, such as proxy voting, for ERISA-governed plans.
Continue Reading DOL’S Final Rule Gives ERISA Fiduciaries Green Light to Consider ESG Factors When Selecting Investments

On April 9, 2022, Maryland became just the tenth state (in addition to the District of Columbia) to enact a paid family and medical leave law that covers private-sector workers, after overriding Governor Larry Hogan’s (R) veto. 
Continue Reading Maryland Becomes the Tenth State to Pass a Paid Family Leave Law

On April 16, 2021, Governor Newsom approved S.B. 93, a statewide COVID right-to-recall law that faltered on its first attempt last October.  In the interim, a number of counties and cities passed almost identical measures, which will remain in effect to the extent they are more generous than the state law.
Continue Reading California’s COVID Right-to-Recall Law Unites Patchwork of Local Ordinances

On May 14, 2020, the Department of Health and Human Services issued a final rule stating that group health plans, including employer-sponsored health plans, are not required to count the value of drug manufacturer coupons toward participant deductibles and out-of-pocket maximums.  The Final Rule, published in HHS’s Notice of Benefit and Payment Parameters for 2021, allows group health plans to exclude the value of drug manufacturer coupons from participant annual cost-sharing amounts even where no medically appropriate generic drug is available. 
Continue Reading HHS Rule is Good News for Prescription Drug Accumulator Programs

The Universal Paid Leave Amendment Act of 2016, which implements the District of Columbia’s new Paid Family Leave program, kicks-in for employees on July 1, 2020.  However, employers must post a PFL notice in the workplace no later than February 1, 2020.   
Continue Reading D.C. Employers Risk Fines for Failing to Comply with Paid Family Leave Notice Requirements

The IRS has issued final regulations amending the hardship distribution rules for qualified retirement plans, including 401(k) and 403(b) plans, as well as for 457(b) plans. The final regulations are substantially similar to the proposed regulations that were issued in November 2018, but provide a few clarifications.  Plans that have been complying with the proposed regulations will satisfy the final regulations.
Continue Reading IRS Issues Final Regulations Relaxing 401(k) Hardship Distribution Rules

For at least one more year, health plans, including employer-sponsored plans, will be able to exclude the value of drug manufacturer discounts from participant deductibles and out-of-pocket maximums, even where no medically appropriate generic drug is available. 
Continue Reading Government Hits Pause on HHS Prescription Drug Rule Set to Take Effect January 1, 2020

The current trend at both the state and federal levels is moving in the direction of mandatory paid family leave.  For example, in recent years, 6 states (California, Massachusetts, New Jersey, New York, Rhode Island, and Washington) and the District of Columbia have enacted mandatory paid family leave benefits for employees.  Moreover, at least 18 other states are currently considering some form of paid family leave legislation.
Continue Reading As State Paid Family Leave Laws Increase, U.S. Congress Considers Nationwide Paid Family Leave

On October 29, 2018, the Internal Revenue Service, Department of Labor and Department of Health and Human Services jointly released proposed regulations in response to President Trump’s executive order calling for an expansion of the ability of employers to offer health reimbursement arrangements to their employees and to allow HRAs to be used in conjunction with nongroup coverage.
Continue Reading Proposed Regulations Expand Availability of Heath Reimbursement Arrangements