Search the News Archive

Denton Becomes Latest North Texas City to Offer Paid Parental Leave

"Denton recently approved six weeks of fully paid parental leave for city employees, joining other North Texas cities that offer the benefit.... Plano, Frisco and Grapevine are among the North Texas cities that don't offer paid parental leave. Dallas and Fort Worth offer up to six weeks of paid leave for full-time employees having a baby, adopting a child or fostering a child."

Missouri's Paid Sick Leave Law Set to Take Effect May 1, 2025

"With no ruling yet from the Missouri Supreme Court in the litigation challenging Proposition A, Missouri's new paid sick leave law is set to go into effect on May 1, 2025. Employers with at least one employee in Missouri should take immediate action to ensure compliance with this deadline."

New York Becomes First in the Nation to Mandate Paid Prenatal Leave

"The new legislation expands the existing Sick Leave Law to require employers to provide an additional 20 hours per calendar year of paid sick time to New York employees for prenatal healthcare services. This is intended to be a separate, stand-alone benefit from other leave policies and laws.... [E]mployers cannot require the use of one leave type over another. And unlike Paid Sick Leave, employers cannot opt for an accrual method and must make the leave available to all employees once law takes effect on January 1, 2025."

Missouri Employers Face New Mandatory Paid Sick Leave

"Missouri voters approved Proposition A ... mandating paid sick leave for most employees beginning on May 1, 2025 ... Employers with Missouri-based employees should take steps now to comply with these changes, but also closely monitor the status of laws due to pending legal challenges and the potential for changes by the Missouri legislature."

The Pregnant Workers Fairness Act Final Regulation Is Finally in Effect: What Employers Need to Know

"The PWFA is intended to serve as a gap filler. The law provides explicit protections for employees relating to pregnancy, childbirth, or related medical conditions where other federal and state statutory protections may not provide such coverage.... Training human resources professionals and management teams tasked with fielding accommodation requests will be critical in ensuring compliance with the PWFA and corresponding regulations."

IRS Disaster Relief Notice TX-2024-13, for Taxpayers Impacted by Severe Storms, Straight-Line Winds, Tornadoes and Flooding in Texas

"[I]ndividuals and businesses in Texas that were affected by severe storms, straight-line winds, tornadoes and flooding that began on April 26, 2024 ... now have until Nov.1, 2024, to file various federal individual and business tax returns and make tax payments.... [I]ndividuals and households that reside or have a business in: Calhoun, Collin, Cooke, Denton, Eastland, Guadalupe, Hardin, Harris, Jasper, Jones, Lamar, Liberty, Montague, Montgomery, Polk, San Jacinto, Trinity, Walker and Waller counties qualify for tax relief."

Comparison of Family Leave and Pay Entitlement Across 85 Countries

"Shared parental leave is the least common type. Adoption leave -- an important type of leave particularly for same sex parents, varies greatly between countries.... There is still a pattern of little or no paternity leave in many countries, while most offer some form of maternity leave though it varies greatly in length.... The rate of pay ranges from nil to full pay."

401(k)s with Bitcoin Should Expect Lawsuits (PDF)

"Even if Fidelity finds a way to appease the DOL, ... the plaintiffs bar will be waiting. 'Any employer who would follow the Fidelity lead by offering cryptocurrency and 401(k) plan is exposing itself to very serious risk of a fiduciary breach,' said Jerry Schlichter, whose firm, Schlichter Bogard & Denton, has won more than $1.5 billion for clients in retirement plan litigation."

What Employers Need to Know About Allegheny County's Paid Sick Leave Ordinance

"[A]ny employer with 26 or more employees that is situated or doing business in Allegheny County must provide employees with at least one hour of paid sick time for every 35 hours worked within Allegheny County.... By December 15, employers must post a sign notifying employees of their rights to paid sick time under the ordinance.... [If] you are already complying with the City of Pittsburgh Paid Sick Leave Act, then you're also likely meeting the primary criteria for the Allegheny County ordinance.... Even if an employer's company is not based in Allegheny County, if employees work from home within the County, the County's ordinance applies to them."

Taking Control of COVID-19 Policies: How U.S. Employers Can Move Forward While the Vaccination Mandate Ping-Pong Match Plays On

"[A] clearly drafted policy helps control your company's direction and operates as a clear message to your employees, who are stuck in the middle too.... [1] Understand your context ... [2] Be prepared for change ... [3] Gather information (with limitations) ... [4] Prepare your team ... [5] Pay attention to privacy and confidentiality rules.... [6] Promote vaccination on a voluntary basis, and consider an 'employer's choice' mandatory policy.... [7] Focus on other control measures ... [8] Review your reporting and anti-retaliation policies and training."

California Renews Employee Entitlements to Supplemental Paid Sick Leave for COVID-Related Reasons

"The latest requirements ... became effective March 29, 2021 and apply retroactively to January 1, 2021. [The authors] identify important features of the renewed measures for 2021 and compare them to the entitlements of 2020 [in a chart]."

$40 Million Settlement Approved in Reliance Excessive Fee Case

"Reliance will pay $39,800,000 ... Those still in the plan will have it deposited into their 401(k) accounts; those who have since left the plan will be given the choice of either a cash distribution or of having it rolled over into another tax-deferred account. Class counsel [Schlichter Bogard & Denton LLP] will receive a percentage-based attorney's fee of $13,266,266[.]"

Fifth Circuit Ruling May Make HIPAA Enforcement More Difficult for HHS

"[T]he court emphasized that the plain language of the Encryption Rule only requires that a covered entity have a 'mechanism' for encryption in place; a covered entity's failure to encrypt three devices did not mean that it 'never implemented 'a mechanism' to encrypt anything at all.' ... The court held that HHS could not prove that M.D. Anderson 'disclosed' ePHI 'without proving that someone 'outside' the entity received it,' a standard that the agency conceded could not be met in that case, and that would be difficult to meet generally." [Univ. of Texas M.D. Anderson Cancer Center v. HHS, No. 19-60226 (5th Cir. Jan. 14, 2021)]

California Significantly Expands Its Family and Medical Leave Law

"[S]tarting January 1, 2021, CFRA will apply to employers with only 5 or more employees ... Other critical changes include the ability of employees to take leave to care for grandparents, grandchildren, siblings and domestic partners, in addition to parents, children and spouses, and the availability of leave for qualifying military exigencies."

Expiration of the FFCRA and California COVID-19 Supplemental Paid Sick Leave: What Now?

"Employers with employees who had been on FFCRA leave, which will expire on December 31, 2020, should evaluate the circumstances of continued leave ... Employers allowing employees to continue their FFCRA leave up to the original leave entitlement may claim the payroll tax credit until March 31, 2021. Employers should evaluate what leaves and benefits may be available to employees seeking time off for COVID-19 related reasons, beyond the FFCRA and California COVID-19 Supplemental Paid Sick Leave law."

Schlichter Sanctioned for 'Reckless' Litigation

"Determining that the decision to pursue litigation was 'objectively reckless,' a federal judge has sanctioned the law firm of Schlichter Bogard & Denton with a fine of (up to) $1.5 million.... The suit -- which was dismissed in August -- was ... brought by participants in plans that had chosen Empower as recordkeeper, and investment options from Great-West and other fund complexes from which participants could choose.... Great-West Capital Management LLC and Empower Retirement (its affiliate plan administrator) requested the sanction, following an 11-day bench trial earlier this year where the plaintiffs failed to produce 'any legally cognizable evidence' of damages." [Obeslo v. Great-West Capital Mgmt. LLC, No. 16-230 (D. Colo. dismissed Aug. 7, 2020; sanction order Sep. 28, 2020)]

The Contingency 'Plan'

"[H]ow much should the plaintiffs' attorneys who wrangled a $12 million settlement receive for their time, effort and trouble? ... $4 million [is] the settlement amount requested by the law firm of Schlichter Bogard & Denton for their work in a suit involving Oracle Corp. and its 401(k) plan (over 6,300 hours ...). That's aside from the requested reimbursement of what those same attorneys characterize as 'reasonable out-of-pocket expenses of $410,501.60, and $25,000 for each of the named class representatives.' "

Important Takeaways from the DOL's Temporary Rule on the FFCRA

"[1] Clarification of the qualifying reasons for use of Paid Sick Leave and Expanded FMLA under the FFCRA.... [2] The DOL encourages employers to implement highly flexible work arrangements.... [3] Employers and employees may agree to intermittent leave.... [4] Statewide 'shelter-in-place' orders and their effect on paid sick leave.... [5] Determining whether employers meet the employee thresholds to be covered by FFCRA paid leave provisions.... [6] Limited exemptions for small businesses to offer paid leave.... [7] DOL's model notice and employer requirements.... [8] Documentation requirements for paid leave under FFCRA."

CMS Issues COVID-19 Guidance: Medicare Coverage and Payment

"In its [March 5 guidance], CMS details coverage (as well as payment) information for Original Medicare and Medicare Part D and Medicare Advantage plans. The guidance reinforces current Medicare coverage policies, which continue to apply for COVID-19 patients, and highlights areas of coverage that necessitate flexibility within the program from providers, Medicare contractors and Medicare plan sponsors."

Final Hardship Withdrawal Regs Issued -- Where Do We Stand?

"Plan sponsors should ... [1] Consider how hardship withdrawals will be made available going forward in light of the rule changes.... [2] Understand how hardship withdrawals were administered during 2018 and 2019, so that plan amendments can adequately reflect administration of the plan.... [3] Make sure the plan is amended within the required time frame to reflect how hardship withdrawals have been and will be administered.... [4] Review the summary plan description to determine whether modifications are necessary."