On August 20, 2024, the Northern District of Texas issued its final ruling in Ryan , LLC . v . FTC on the merits of summary judgment cross-motions, contesting the legality of the Federal Trade Commission’s NonCompete‑ Rule which would prohibit most employee...
In some M&A transactions, pre-existing employment contracts might provide certain employees with rights that must be dealt with in connection with acquisition, in some cases even if such employees will not be retained by the buyer. For example, an officer may...
Open enrollment, which often occurs in October or November for calendar year plans, is a time when employees and other eligible individuals can enroll in or make changes to their employer-based health insurance and fringe benefit options. The term has sole reference...
Few people today recall the 1963 failure of automaker Studebaker and the resulting loss of workers’ pensions. It started the buzz about the state of pension law in the United States with many issues to be resolved. For example, before ERISA, employers could...
Stock purchase agreements and asset purchase agreements will differ in how the parties approach the target's 401(k) plan(s). Generally, there are three options: (1) continue operations, (2) terminate the target 401(k) plan, or (3) merge the target 401(k) plan...
When ERISA was enacted on September 2, 1974, defined benefit pension plans were the predominant vehicle for providing retirement income to employees, offering investments managed by employers and offering participants (later their spouses, too) a fixed annuity...
The U.S. Supreme Court, in overruling its prior Chevron decision, seems to allow lower courts to independently evaluate statutory text. Many regulations, promulgated by agencies like the IRS and the DOL, have previously been upheld using the deferential framework...
When an employer contemplates an acquisition, merger, or other corporate transaction, the employer often wants to be certain that key employees remain during (and often for a time after) the transition. Retention agreements are useful for this purpose and can provide...
The SECURE 2.0 Act added an exception to the 10% early distribution penalty tax under I.R.C. § 72(t) for "emergency personal expense distributions" from a defined contribution plan. The exception, discussed under I.R.S. Notice 2024-55 , recognizes...
The U.S. Department of Labor (DOL) issued final rules in late April regarding its definition of fiduciary investment advice and associated prohibited transaction exemptions (PTEs). The rule and amended PTEs will protect retirement investors by requiring trusted...
Plan sponsors, administrators, and even qualified termination administrators may need to locate missing participants or beneficiaries. It may be time for the required minimum distribution to begin or pay a designated beneficiary. The employee may have terminated...
Plan sponsors may want guidance on how to implement a self-audit program. This is especially useful for small plans that may not be subject to ERISA’s annual audit requirement but need review of their processes and financial statements. Two common errors...
A flexible spending arrangement (often referred to as an “FSA” for the flexible spending account that is established for a participating employee) is one benefit employers may offer in a cafeteria plan to allow participating employees to use pre-tax...
Section 1557 of the Affordable Care Act (ACA) prohibits discrimination on the basis of race, color, national origin, sex, age, or disability, or any combination thereof, in a health program or activity, any part of which is receiving federal financial assistance...
The SECURE 2.0 Act made significant changes to the IRC and ERISA, as applied to tax-favored retirement plans. Section 121 of the SECURE 2.0 Act amended IRC § 401(k) to authorize a simplified cash or deferred arrangement, called a starter 401(k) plan. The plans...