A New Jersey federal district court recently granted summary judgment in defendants’ favor in an ERISA excessive fee case accusing Evonik’s 401(k) plan fiduciaries of keeping imprudent investments in the plan and of allowing...more
For the last 40 years, judges were required to defer to administrative agencies’ reasonable interpretations of ambiguous federal statutes under Chevron v. Natural Resources Defense Council. The Supreme Court upended that...more
7/3/2024
/ Administrative Procedure Act ,
Chevron Deference ,
Chevron v NRDC ,
Department of Labor (DOL) ,
Employee Retirement Income Security Act (ERISA) ,
Environmental Social & Governance (ESG) ,
Government Agencies ,
Interagency Guidance ,
Loper Bright Enterprises v Raimondo ,
Regulatory Authority ,
SCOTUS ,
Statutory Interpretation
Conflicting orders on motions to dismiss from two California courts foreshadow issues for a new theory of ERISA liability. Employers have faced a recent wave of novel ERISA class actions that challenge the reallocation of...more
An enduring wave of novel class actions challenging the actuarial assumptions used to calculate certain pension benefits has prompted many sponsors of defined benefit pension plans to evaluate their plan’s terms for...more
The Fourth Circuit affirmed Aon Hewitt Investment Consulting’s trial victory in a 250,000-member class action suit alleging that Aon breached ERISA’s fiduciary duties.
Aon was initially the Lowe’s 401(k) plan’s investment...more
The Third Circuit refused to enforce a mandatory arbitration clause with a class action waiver in an ESOP, finding that the class action waiver deprived participants of statutory rights. The ESOP plan added the clause at...more
Is a new wave of ERISA fiduciary litigation targeting group health plan sponsors on the horizon? There have already been a few examples of health plan fee cases, such as claims challenging the billing practice between...more
Plaintiffs must plead a “sound basis for comparison—a meaningful benchmark” — to sustain their claims of imprudent investment and excessive fee against a 401(k) plan, the federal appeals court in St. Louis has held,...more
The DOL’s cybersecurity investigation into Alight Solutions, LLC, a retirement plan recordkeeper, has queued up court rulings on the reach of the DOL’s subpoena power that may have important implications for ERISA plan...more
A California district court recently foreclosed a former independent contractor’s claims for benefits from ERISA-governed plans when it found that plaintiff was not a “participant” as defined by ERISA and thus did not have...more
A Massachusetts district court recently ordered defendants in an ERISA fiduciary breach case to produce certain communications with their in-house and outside counsel, rejecting defendants’ argument that the communications...more
The Fall 2021 edition of the Jackson Lewis Class Action Trends Report looks at the class action risks that arise as employers navigate return-to-work during this precarious stage of the COVID-19 pandemic. Employee symptom...more
10/5/2021
/ Americans with Disabilities Act (ADA) ,
Biometric Information ,
Class Action ,
Compensation ,
Coronavirus/COVID-19 ,
Corporate Counsel ,
Discrimination ,
Employee Privacy Rights ,
Employer Mandates ,
Equal Employment Opportunity Commission (EEOC) ,
Fair Labor Standards Act (FLSA) ,
GINA ,
Masks ,
Misclassification ,
Non-Exempt Employees ,
Private Attorneys General Act (PAGA) ,
Religious Exemption ,
Return-to-Work Agreements ,
Unpaid Overtime ,
Vaccinations ,
Wage and Hour ,
WARN Act
The Third Circuit will review a Pennsylvania district court’s decision to certify a 60,000+ person class in an ERISA fiduciary breach lawsuit claiming mismanagement of a defined contribution plan’s investments and...more
Recently, in Davis v. Salesforce.com, a California district court dismissed for the second time claims alleging that the defendant 401(k) plan fiduciaries breached their ERISA fiduciary duties by retaining overpriced and...more
In our latest issue of the Class Action Trends Report, Jackson Lewis attorneys discuss how employers can undertake Diversity, Equity and Inclusion (DEI) initiatives without risking class action discrimination suits; wage and...more
5/13/2021
/ Business Expenses ,
Class Action ,
Compensation ,
Coronavirus/COVID-19 ,
Corporate Counsel ,
Department of Labor (DOL) ,
Diversity ,
Diversity and Inclusion Standards (D&I) ,
Equal Employment Opportunity Commission (EEOC) ,
Fair Labor Standards Act (FLSA) ,
Gender Discrimination ,
Non-Exempt Employees ,
Pay Equity Laws ,
Race Discrimination ,
Reimbursements ,
Remote Working ,
Rest and Meal Break ,
Return-to-Work Agreements ,
Statute of Limitations ,
Telecommuting ,
Vaccinations ,
Wage and Hour
Aligning itself with other circuit courts that have ruled on the issue, the Ninth Circuit recently held that ERISA does not bar forum selection clauses in benefit plans. The background of the case and the Ninth Circuit’s...more
In a 5-4 decision, the U.S. Supreme Court has ruled that federal courts can review decisions by the U.S. Railroad Retirement Board denying claimants’ requests to reopen prior benefits denials. Salinas v. U.S. R.R. Ret. Bd.,...more
2/8/2021
/ Denial of Benefits ,
Disability ,
Disability Benefits ,
Judicial Review ,
Jurisdiction ,
Railroad Retirement Act ,
Railroad Retirement Board (RRB) ,
Railroad Unemployment Insurance Act (RUIA) ,
Railroads ,
Salinas v United States Railroad Retirement Board ,
SCOTUS ,
Section 355
Last year presented many challenges, and 2021 offers a fresh start. In this issue of the Class Actions Trends Report we review the most significant developments of 2020 and take a look forward to what a new year and a new...more
2/2/2021
/ 401k ,
Americans with Disabilities Act (ADA) ,
Arbitration ,
Biden Administration ,
Biometric Information Privacy Act ,
Business Interruption ,
Class Action ,
Coronavirus/COVID-19 ,
Department of Labor (DOL) ,
Fair Labor Standards Act (FLSA) ,
Federal Arbitration Act ,
Fluctuating Workweek ,
Higher Education Act ,
Independent Contractors ,
Labor Code ,
Layoffs ,
Pregnancy Discrimination ,
Private Attorneys General Act (PAGA) ,
Ridesharing ,
SCOTUS ,
Sexual Harassment ,
TCPA ,
Trucking Industry ,
Wage and Hour
An Arkansas law regulating pharmacy benefit managers’ (PBMs) generic drug reimbursement rates, and affecting the cost of prescription drugs provided under ERISA-governed benefit plans and the administration of those plans, is...more
12/14/2020
/ Drug Pricing ,
Employee Retirement Income Security Act (ERISA) ,
Health Insurance ,
Pharmaceutical Industry ,
Pharmacies ,
Pharmacy Benefit Manager (PBM) ,
Preemption ,
Prescription Drug Coverage ,
Prescription Drugs ,
Rutledge v Pharmaceutical Care Management Association ,
SCOTUS
This term, the U.S. Supreme Court returns to a challenge to the Affordable Care Act (ACA). In the consolidated cases of California v. Texas (No. 19-840) and Texas v. California (No. 19-1019), the Court will consider whether a...more
As the COVID-19 pandemic continues to alter work lives in profound ways, employers are confronted with additional liability risks. The pandemic has created a wave of litigation that is unlikely to ebb until well after the...more
11/3/2020
/ ABC Test ,
Administrative Law Judge (ALJ) ,
Class Action ,
Collective Actions ,
Coronavirus/COVID-19 ,
Corporate Counsel ,
Due Diligence ,
Fair Labor Standards Act (FLSA) ,
Furloughs ,
Hybrid Plan ,
Independent Contractors ,
Mitigating Factors ,
Remote Working ,
USERRA ,
Wage and Hour ,
WARN Act
The U.S. Supreme Court will hear the second of several ERISA disputes this term, the first issue we discussed as the term began, October 5, 2020. Monday, November 2, 2020, the Justices will consider whether the Railroad...more
On October 6, 2020, the U.S. Supreme Court will hear argument on ERISA’s preemptive effect on a state law regulating pharmacy benefit managers’ (PBMs) generic drug reimbursement rates in Rutledge v. Pharmaceutical Care...more
A 401(k) plan and its administrators are defending the administrator’s decision to require a special valuation of former employees’ account values, given extraordinary market changes due to the COVID-19 pandemic. Under the...more
As the circuit courts continue to define the pleading standards for fiduciary breach claims challenging investments in defined contribution plans, the Eighth Circuit affirmed in part and reversed in part a district court’s...more