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Articles include: [1] New Guidance Issued on the [ACA]'s Implementation; [2] Opportunity for In-Plan Roth Conversion Expanded; [3] Contributing Employers Beware: Has the Tipping Point for Multiemployer Plans Arrived? and [4] The New EPCRS -- Much Like the Old EPCRS.  MORE >>

Newsletter on current legal issues impacting employee benefits and executive compensation. This issue includes: COBRA Audits - Another Worry for Employers; What To Do About Those Underfunded Defined Benefit Plans? The Price of Fiduciary Failure - $36.9 Million; and FSA Cap Update - Limited Relief Announced  MORE >>

"A Fox News producer sued under the D.C. Accrued Sick and Safe Leave Act after being fired for an absence he failed to report on time. He knew the night before he'd be out, told a coworker but not his supervisor, and didn't call his boss until midday. The court held his conduct wasn't protected. Paid sick leave laws ... condition protection on reasonable notice, and he didn't give any. Fox News won summary judgment." [Donner v. Fox News Network, LLC, No. 23-3401 (D.D.C. Mar. 30, 2026)]  MORE >>

"The Delaware Court of Chancery has dismissed breach of fiduciary duty and unjust enrichment claims brought by a stockholder of Twenty-First Century Fox, Inc. who argued that the equity awards granted to several Fox executives in anticipation of a corporate transaction were unnecessary and wasteful. The court held that the plaintiff's claims were derivative and the plaintiff lacked standing to bring them." [Brokerage Jamie Goldenberg Komen Rev Tru U/A 06/10/08 Jamie L Komen Trustee for the Benefit of Jamie Goldenberg Komen v. Breyer, No. 2018-0773-AGB (Del. Chanc. Jun. 26, 2020)]

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Excerpt: Pensions will be the topic on Fox\Business tomorrow (Monday) morning at 8 a.m. when Bradley Belt, former executive director of the Pension Benefit Guaranty Corporation, will presumably discuss the dire situation with our country's pension system.  MORE >>

"Section 419 plans, marketed as legitimate tax deduction vehicles funded by whole life insurance, have been classified by the IRS as abusive tax shelters and consistently rejected by the courts. Plan sponsors face a 100% excise tax on disqualifying dispositions, leaving few legitimate exit strategies for those stuck with large insurance policies held in trust. Transferring plan sponsorship to a related entity that is then sold to a third party with legitimate welfare plan expenses may be the most viable option, though professional guidance is essential."  MORE >>

"[FAB 2026-01] [1] Prioritizes egregious misconduct, participant harm, and fiduciary loyalty breaches; flags ESG-driven decisions as potential disloyalty.... [2] Limits actions to ERISA text, final regs, guidance, and case law; curbs novel theories; impacts ESOP valuation and prudence-only claims.... [3] Leadership review of significant matters; 18-30 month timelines; reinforces independence from plaintiff firms."  MORE >>

"ERISA class actions targeting voluntary benefits are on the rise. Plaintiffs allege employers and brokers breached fiduciary duties through self-dealing and excessive commissions. The strongest defense is proving ERISA doesn't apply. The DOL safe harbor exempts programs where the employer doesn't contribute, participate, or endorse beyond minimal involvement. Employers should take proactive steps now. Audit safe harbor compliance, document governance processes, and map all service provider compensation."  MORE >>

"While there are several strategies to reduce the overfunding or minimize the financial consequences, this article focuses on the business owner's state of mind, which is similar to the four stages of grief. Invariably business owners' express denial, as their belief that virtually all of the plan's asset belongs to them is dispelled. This is generally coupled with anger seeking to blame someone else (usually their actuaries) for providing inadequate advance warning."  MORE >>

16 pages. "This practice note addresses exemptions to the prohibited transactions rules of [ERISA] and the similar rules under the Internal Revenue Code.... The specific topics addressed in this practice note are (1) Statutory Exemptions, (2) Individual Exemptions, (3) Application for Class Exemptions, and (4) EXPRO (Expedited Processing) Applications for Exemption."  MORE >>

"For businesses operating in or adjacent to the digital asset space, this guidance fundamentally changes the regulatory landscape. The 'regulation by enforcement' era appears to be over, replaced with clear taxonomies and defined pathways for compliance.... The heart of the SEC's interpretation is a five-category classification system for crypto assets."  MORE >>

"Intent alone isn't enough to change beneficiaries on retirement plans.... ERISA requires strict adherence to plan documents, and courts will not honor beneficiary changes made through informal channels like faxes or verbal requests if the plan specifies a different procedure.... Review beneficiary designations after major life events, follow plan procedures exactly, obtain written confirmation, and act promptly." [Packaging Corp. of Am. Thrift Plan for Hourly Emps. v. Langdon, No. 25-1859 (7th Cir. Feb. 2, 2026)]  MORE >>

"The proposed rule is essentially a readoption of the Trump administration's 2021 rule with only minor modifications. The DOL explicitly states it is rescinding the 2024 Biden Rule and readopting the 2021 Rule with a few updates. The key structural elements are identical: the same two-core-factor framework and the same three additional guidepost factors. The modifications are minimal. The DOL's proposed rule also dedicates extensive analysis to past court decisions, concluding that this standard formalizes how courts have been deciding independent contractor cases across administrations for decades."  MORE >>

"Health plans (including employer sponsors of self-insured group health plans) must update their published NPPs. Coming to the rescue of providers that waited to make the required changes to their Notices of Privacy Practices regarding SUD treatment records, the federal government itself waited until February 16 to update its model Notice of Privacy Practices to provide sample language that can be used to update or help draft NPPs for Part 2 compliance."  MORE >>

"The 2026 Amendments lower the employer-size threshold from 30 to 15 employees. They also ease eligibility to three months' tenure and 250 base hours in the prior 12 months.... The law adds a standalone reinstatement right for employees who receive Temporary Disability Insurance (TDI) or Family Leave Insurance (FLI) benefits.... Employers should quickly update policies, train managers on reinstatement/anti-retaliation, reconfigure timekeeping for 'base hours' and prepare notices."  MORE >>

"Beginning Feb. 22, 2026, most employers in New York City must provide 32 hours of unpaid sick and safe leave.... [E]mployers must separately track and report paid sick and safe leave, unpaid sick and safe leave, and prenatal leave on pay stubs and maintain related records for at least three years.... Employers that fail to provide required sick and safe leave may be required to restore leave hours and pay $500 per employee per calendar year for each year a noncompliant policy was in effect."  MORE >>

"Colorado added paid Neonatal Care Leave to its FAMLI program effective January 1, 2026, covering parents of newborns admitted to a neonatal unit or a higher level of care. Eligible parents may take up to 12 weeks of paid Neonatal Care Leave, available only while the newborn remains hospitalized. Neonatal Care Leave is in addition to existing FAMLI benefits."  MORE >>

"Colorado HFWA leave must be paid at the same pay rate, with the same benefits, the employee would have been afforded had they worked during the leave period. Employees will not earn additional compensation during HFWA leave if the use of leave does not reduce their pay. For employees paid wages plus commissions, the calculation of the HFWA pay rate does not include commissions.... The 'lookback period' for calculating the HFWA pay rate applies only when the pay rate for the leave period is unknown."  MORE >>

"Beginning February 22, 2026, covered New York City employers must provide employees with an additional 32 hours of unpaid safe and sick time, frontloaded at hire.... The amended Earned Safe and Sick Time Act (ESSTA) adds four potential uses for safe and sick time ... Employers must also provide 20 hours of paid prenatal leave per 52-week period, which is concurrent with New York State law."  MORE >>

"The recent Executive Order aims to reexamine existing regulatory frameworks that have, until now, constrained access to alternative investments within retirement plans. Proponents believe that, with proper safeguards and guidance, offering a broader spectrum of investment options can lead to improved long-term outcomes for retirement savers."  MORE >>