News Archive

"Employers that have allowed insurers to market these types of voluntary programs to their employee populations, and who are currently taking the position that the DOL's voluntary plan safe harbor applies, should take a fresh and careful look at whether all of the elements of the safe harbor have been met with respect to their voluntary benefit programs."  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 >>

"The spate of voluntary benefits cases presume that the benefit programs at issue are all considered to be employee welfare benefit plans under ERISA. Courts have not yet ruled definitively on how or if ERISA applies to voluntary benefits. The most recent case, ... as in other similar complaints, argues that the defendants breached their fiduciary duties by failing to properly manage the plan by not monitoring, negotiating or ensuring reasonable carrier selection, broker commissions and loss ratios, thereby causing plan participants to pay excessive premiums." [Haller v. Banner Health, No. 26-3114 (D. Ariz. complaint filed May 4, 2026)]  MORE >>

"Only about 24% of manufacturing employers report having a comprehensive wellbeing strategy that focuses on the 'whole employee'. In healthcare, that figure rises to just 29% -- a sign of growing recognition of stress and burnout, but also of ongoing capacity constraints. Among financial institutions, 39% of organizations report a comprehensive whole‑employee wellbeing strategy ... Without industry‑specific benchmarking, an employer could easily misread whether its wellbeing offer is table stakes or truly differentiating for its sector."  MORE >>

"Pediatric genetic screening programs provide an opportunity for parents to give their child their healthiest start. It is a way to provide early detection and better outcomes to a small percentage of families whose children have a genetic finding and provide peace of mind to the many families where there is no genetic finding. For families with no genetic finding, it also curbs unnecessary rule-out tests and procedures."  MORE >>

"More than a quarter of Gen Z learning another language through Preply currently live abroad or have done so in the past, and another 38% say they would consider it in the future. Career advancement is a leading motivator: 26% cite it as a top reason for learning a new language, more than any other generation. About one in five say they study languages to increase their salary or improve job security, while 13% believe it could help them break into a new field. Nearly half also think speaking a second language would open up job opportunities overseas."  MORE >>

"For a variety of legal, structural, and practical reasons, employers seem to struggle to determine which benefit plans are covered by ERISA and which are not. This isn't because employers are careless or uninformed; it's because ERISA is one of those laws where the line between 'covered' and 'not covered' is skewed by how benefits are actually bought and administered."  MORE >>

"Accountable plans remain the most tax-efficient way for nonprofits to reimburse employee business expenses. When properly structured and implemented, these plans allow reimbursements to be excluded from employees' taxable income and save payroll taxes for the organization.... Qualifying expenses commonly include business-related travel, meals, lodging, transportation, professional dues, continuing education, and necessary tools or supplies. Home office expenses may qualify in limited circumstances, but only when they're directly tied to the employer's business needs and not personal use."  MORE >>

"If you are an employer that takes the position that your voluntary benefits are exempt from ERISA under the voluntary benefit safe harbor, you should carefully evaluate whether your voluntary benefits satisfy all four requirements of the safe harbor. Even minor deviations can cause a program to fall outside of the safe harbor."  MORE >>

"As the market for top talent becomes more competitive, relying solely on perks is rarely enough. Today, employers are encouraged to move beyond generic offerings and consider benefits that thoughtfully support both employee needs and broader organizational objectives.... The ROI of purpose-driven benefits ... Navigating major workforce shifts ... A step-by-step guide to alignment ... High-impact employee benefit solutions ... Showcasing the value of your package."  MORE >>

"Employers most often lose the voluntary benefits exemption where they: [1] take an action or actions to 'endorse' the voluntary benefits; or [2] receive consideration as a result of providing the voluntary benefits.... If the 'voluntary benefits' exemption does not apply, the employer must comply with ERISA with respect to those benefits, just as it does for the other welfare benefits the employer offers to its employees. The employer's obligations would include compliance with ERISA's fiduciary obligations."  MORE >>

"[B]enefit leaders work closely with their brokers to get a broad view of the carriers and solutions that will best meet their needs. In addition to the kinds of benefits they're looking for, they should communicate administrative priorities — such as what kind of technology is used to simplify processes for both HR and employees, and how the company will be billed — to help brokers curate a strong list of candidates[.]"  MORE >>

"Foyer, a savings app that acts as a dedicated 401(k) for homeownership, is now being offered as a benefit through AI-powered platform Nayya, a tool that already supports millions of employees through their workplace benefits and financial options. Under this partnership, Foyer helps employees move from renting to owning by saving for a down payment, improving credit, and handling the homebuying process -- all from one app."  MORE >>

"Because qualified transportation plans do not fall under either category (i.e., they are neither employee welfare benefit plans nor employee pension benefit plans), they are not employee benefit plans subject to ERISA's annual reporting obligation. Code Section 6039D previously imposed an annual information return requirement on certain 'fringe benefit plans,' but qualified transportation fringe benefit plans were not included."  MORE >>

"77% of respondents expected health insurance sales to increase in the next year, 64% anticipated growth in group life insurance sales, and 62% forecasted more sales of supplemental health insurance products, such as hospital indemnity and critical-illness coverage. Yet nearly half of brokers cited administrative complexity as a core challenge to employers integrating supplemental health offerings into employee benefits packages."  MORE >>

"For years, voluntary or enhanced benefits were treated as the safest part of the benefits package with minimal risk, explains Eric Silverman, founder of Voluntary Disruption. He says ERISA lawsuits involving accident, critical illness, cancer and hospital indemnity plans have forced a closer look at how these benefits are selected, priced, monitored and communicated. And the key takeaway is that process matters, even when benefits are not employer-funded."  MORE >>

"Despite cost pressure, companies are doubling down on what consistently works: wellness programs, which have become both a cost mitigation tool and retention lever. Employers are intensifying investment in mental health access, preventative care, and fertility. In a year defined by precision, wellness is one of few areas where benefits leaders see both measurable ROI and meaningful employee value."  MORE >>

"Brokers said the top ways carriers could support employers include enhancing enrollment tools and communication materials, communicating the value proposition for voluntary benefits, and offering more customizable product options.... Brokers expect strong growth in core and supplemental benefits, reflecting broader budget optimism.... Employers value the impact benefits have on morale more than brokers do.... Brokers believe education support from carriers could help boost employee adoption of supplemental health benefits.... Administrative complexity is a challenge to the adoption of supplemental health benefits."  MORE >>

"Ancillary employee benefits, like wellness programs, flexible work options, and financial wellness tools, go beyond traditional offerings to support employees' full lives and boost satisfaction, productivity, and retention. This guide breaks down the types of ancillary benefits, how to implement them effectively, and why they're essential in a modern, people-first workplace. With actionable tips and real-world examples, it's your roadmap to building a benefits package that truly stands out."  MORE >>

"While health and voluntary benefits are attracting growing attention, 401(k) plans remain the most frequently targeted ERISA plans.... Settlements remain significant but individual participants typically receive modest payouts ... Excessive fee and imprudent investment cases in 2025 averaged just over $3 million, while tobacco surcharge claims averaged nearly $5 million. Participants generally received $55-$70 per person, with plaintiffs' attorneys taking roughly one-third. Over the past five years, total settlements across ERISA cases have exceeded $1.3 billion."  MORE >>

"With many millennials and Gen Z delaying marriage and children, they're turning their emotional and financial focus toward pets. This investment naturally shapes their expectations for their benefits packages, as they're seeking options that reflect what matters most to them."  MORE >>

"Despite the many unknowns ... these lawsuits will: [1] Provide in-depth briefing on core ERISA foundational questions.... [2] Push the boundaries of fiduciary duties and prohibited transaction rules under ERISA.... [3] Create a chilling effect on employers offering voluntary benefits."  MORE >>

"For plan sponsors, this evolving litigation environment is an important reminder that understanding fiduciary risk -- and taking proactive steps to manage it -- is no longer optional.... The central argument being tested is that when an employer selects voluntary benefit programs, endorses them, and receives additional services from brokers that may be considered compensation, the employer may be exercising sufficient control for those benefits to be considered ERISA-covered plans, or at minimum subject to fiduciary standards."  MORE >>

"Employers should carefully consider whether Voluntary Benefit Plans not intended to be subject to ERISA should be listed or included in an ERISA wrap document or summary plan description .... Employers and plan administrators who offer Voluntary Benefit Plans that are intended to be exempt from ERISA should ... include clear written statement that such plans are intended to meet the ERISA exemption in the plan's offering materials.... If a Voluntary Benefit Plan is not required to file a Form 5500 because it is not subject to ERISA, employers should not file one or include information relating to such benefits on the Form 5500 for its ERISA welfare plans."  MORE >>

"These filings signal a coordinated litigation strategy that could fundamentally reclassify certain 'voluntary' benefits as ERISA‑covered plans, significantly expanding fiduciary exposure for employers. By targeting both employers and national benefits consultants, the lawsuits raise the stakes for plan design, vendor relationships, and long‑standing assumptions about ERISA's safe‑harbor boundaries."  MORE >>