News & Analysis as of

Employee Retirement Income Security Act (ERISA) Severance Agreements

Mintz - Employment Viewpoints

A Post (f/n/a “Tweet”) to Remind Plan Sponsors of Key Considerations in Designing Severance Plans

The recent Complaint filed for severance benefits against Elon Musk, X Corp., et.al., serves as a reminder that it is as important to clearly establish the fiduciary governance structure over severance plans subject to the...more

Groom Law Group, Chartered

Seventh Circuit Affirms Plan Sponsor’s Discretion for Severance Benefits

A recent opinion out of the U.S. Court of Appeals for the Seventh Circuit provides additional support for ERISA-governed severance plans to incorporate a “discretionary component” as a factor in determining eligibility for...more

Proskauer - Employee Benefits & Executive...

Seventh Circuit Affirms Discretion Over Who Gets Severance Benefits

A recent Seventh Circuit decision affirms the principle that an ERISA severance plan can reserve to the employer discretion over who is eligible for severance benefits.  The case is Carlson v. Northrop Grumman Severance Plan,...more

Sherman & Howard L.L.C.

Careful Drafting Carries the Day--Northrop Grumman HR is not a Fiduciary Under Severance Plan

Northrup Grumman ends nearly decade-long class action with hundreds of members, all thanks to careful and compliant drafting of a severance plan. Here’s what you need to know. In Alan Carlson et al. v. Northrop Grumman...more

Pillsbury Winthrop Shaw Pittman LLP

Los Angeles Initiative Seeks to Impose $450,000 Cap on Annual Compensation of Executives in Health Care Facilities

The Los Angeles City Council will soon decide whether to adopt an initiative as an ordinance or refer it to voters for the 2024 ballot. If the initiative officially qualifies for the ballot, the Los Angeles City Council...more

Seyfarth Shaw LLP

Policy Matters Newsletter - March 2023

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Biden Officially Nominates Su To Replace Marty Walsh. This week, President Biden officially announced the nomination of Julie Su to replace Marty Walsh atop the Department of Labor. We have had numerous occasions to discuss...more

White and Williams LLP

The Amended New Jersey WARN Act Client Alert

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On January 10, 2023, Governor Murphy signed Assembly Bill No. 4768, which gives permanent effect to sweeping amendments previously enacted to New Jersey’s WARN Act (“NJ WARN”). Originally slated to take effect in July 2020,...more

Goodwin

Ten Action Items for Employers When Planning Layoffs

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​​​​​​​A frequently used step to control costs in times of uncertainty is to reduce personnel. A well-planned restructuring or reduction in force, generally referred to as a “layoff,” can achieve meaningful cost reductions...more

Jackson Lewis P.C.

District Court Upholds New York City Hotel Severance Law

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In a decision of great import to the New York City hospitality industry, a federal court has held that a New York City statute mandating payment of severance benefits to certain covered hotel service employees was not...more

Jackson Lewis P.C.

Motion for Class Certification Denied: Plaintiff Who Released ERISA Claims Deemed Unfit to Lead Class

Jackson Lewis P.C. on

Can a former employee serve as a class representative for ERISA claims when she has signed a general release agreement and has waived her right to participate in class actions? According to a recent decision by the District...more

Seyfarth Shaw LLP

New Restrictions in Settlement and Severance Agreements Headline Governor Newsom’s Final 2021 Legislative Approvals

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Seyfarth Synopsis: On Saturday, October 9, 2021 Governor Newsom signed the last of 2021’s pending employment-related bills, including a bill imposing even more restrictions on settlement agreements. The new laws will become...more

Verrill

Primer on Severance Plans Under ERISA and the Tax Code

Verrill on

Many employers maintain formal or informal severance policies or practices that they use sporadically. Other employers may implement a severance program for a limited period of time to reduce the number of employees overall...more

Proskauer - Employee Benefits & Executive...

Fifth Circuit Rules that Project Completion Bonus is Not an ERISA Severance Plan

Whether a one-time payment of benefits constitutes an employee benefit plan under ERISA has been the source of some consternation in the courts for many years.  The Fifth Circuit, in Atkins v. CB&I, LLC, recently had occasion...more

Robinson+Cole ERISA Claim Defense Blog

When is a Severance Plan NOT an ERISA Plan

Though there are many legal complexities that can arise in a typical ERISA lawsuit, one thing that is typically not in dispute is whether there is an ERISA Plan at issue....more

Rivkin Radler LLP

Employee Benefit Plan Review – From the Courts

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Second Circuit Affirms Decision Rejecting ERISA Claims for Retiree Health Benefits The U.S. Court of Appeals for the Second Circuit has affirmed a district court’s decision dismissing claims under the Employee Retirement...more

Miles & Stockbridge P.C.

Are Severance Benefits Subject to ERISA?

Definitely maybe. Severance benefits are subject to ERISA if they comprise a “plan, fund or program.” The Supreme Court held that there is a plan, fund or program for severance benefits if (1) payment requires an “ongoing...more

McDermott Will & Emery

Former Employee’s Release Agreement Bars ERISA Claim Against ESOP Fiduciary

McDermott Will & Emery on

A recent summary-judgment decision explains how individual releases can bar the individual from pursuing ERISA fiduciary-breach claims on behalf of the plan. A plan, employer or fiduciary that wants to ensure a release that...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Dos and Don’ts for Drafting Severance Agreements

There are a number of important considerations for employers to keep in mind when drafting a severance agreement. Join Milwaukee shareholders Bud Bobber and Brian Radloff for a discussion of practical tips for drafting...more

Jackson Lewis P.C.

Court Rules That One-Time Voluntary Separation Program Is Not An ERISA Plan

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Whether a one-time voluntary separation program should be treated as an ERISA-covered severance plan depends on whether the program requires an “ongoing administrative scheme” – a requirement first established by the Supreme...more

Locke Lord LLP

[Webinar] 30th Annual Employee Benefits Webinar - September 26th, 8:15am CT

Locke Lord LLP on

Please join the Locke Lord Employee Benefits and Executive Compensation Group for our 30th annual employee benefits webinar. Our attorneys will provide an overview of current developments related to employee benefit plans....more

Morris James LLP

Third Circuit Dismisses Employees’ Class Action Suit and Finds Chemours’ Severance Plan is not Subject to ERISA

Morris James LLP on

In developing severance plans, employers should take note of the factors courts will consider in determining whether a plan would be considered an “employee welfare benefit plan” under the Employment Retirement Security Act...more

Bass, Berry & Sims PLC

Action Needed by Certain ERISA Plans – New Disability Claims Procedures Apply Beginning April 2018

In January 2018, the U.S. Department of Labor (DOL) announced that final regulations affecting how some ERISA plans process claims and appeals will apply beginning April 1, 2018. As explained below, the final regulations...more

Proskauer - Law and the Workplace

[Podcast]: Severance Pay Plans & ERISA

In this benefits law edition of The Proskauer Brief, senior counsel Anthony Cacace and partner Robert Projansky discuss how severance plans can be subject to ERISA. We will discuss the key advantages of having severance pay...more

Hogan Lovells

District Court Case Highlights Advantages of ERISA Severance Plans

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Specialists have long touted certain significant advantages to employers that come along with maintaining ERISA severance plans, and a recent district court case highlights some of these advantages....more

Jackson Lewis P.C.

Court Rules That Company Discretionary Offer Of Voluntary Separation Agreements Does Not Create An ERISA-Covered Severance Plan

Jackson Lewis P.C. on

It always has been difficult to give a consistent answer as to whether informal severance arrangements have created an ERISA-covered severance plan. In Mance v. Quest Diagnostics Inc., 2017 WL 684711 (DC NJ 2017), the U.S....more

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