As businesses are increasingly focused on reopening and rebuilding, it’s important to also stay on top of non-COVID-related regulatory and legislative matters to ensure continued compliance. This update covers issues involving ERISA, the SECURE ACT, State Paid Family Leave, Temporary COVID-19 Provisions and more.
Insurer Concessions: A Wrinkle to Consider | Learn More
As employers and insurers are negotiating plan renewals, a new wrinkle is important to consider. Rather than reducing premium rates, insurers are offering employers/plan sponsors a variety of concessions. These concessions are coming in many shapes, colors and forms. If the employer/plan sponsor does not consider these carefully, these concessions could end up being ‘wolves dressed in sheep’s clothes’, particularly as it relates to ERISA.
Litigation Prompts a Reminder | Learn More
Two recent cases point out the importance of abiding by ERISA plan language. In one case, the court decision made clear that if the intent is to require participants to follow an administrative process, it must be communicated clearly to them. The other court decision emphasizes that if a plan wants the court to respect its discretionary authority, it should make certain that plan participants know about it.
SECURE Act Updates | Learn More
The IRS recently issued guidance addressing several aspects of the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act). Of particular note, this guidance clarifies provisions relating to plan participation for long-term part-time employees, withdrawals for birth or adoption expenses, and the tax credit available for costs associated with establishing small employer pension plans.
State Paid Family Leave Updates: California, Massachusetts and New York | Learn More
California’s Governor Newsom signed a law that makes significant changes under two of the state’s existing family and medical leave entitlements. First, the new law expands the California Family Rights Act (CFRA) to apply to small employers, as well as expands the definition of family members and the reasons for job-protected leave. Secondly, as a result of the changes made by the CFRA amendments, the state’s New Parent Leave Act will sunset. In Massachusetts and New York, the relevant state enforcement agencies of their respective paid family leave programs provide updates for 2021 under their state-wide leave programs.
New York City Amends Earned Safe and Sick Time Act | Learn More
Mayor De Blasio signed amendments to the New York City’s Earned Safe and Sick Time Act (ESSTA). These amendments align the ESSTA with the state’s paid sick leave law, which took effect on September 30, 2020.
Select State and Local Temporary COVID-19 Provisions | Learn More
In response to the COVID-19 outbreak this year, many existing paid sick leave laws in states and local jurisdictions have been enacted to provide for certain benefit and leave protections. This article highlights a few state and local developments with regard to these temporary COVID-related leaves of absence laws, namely California, Sacramento County, District of Columbia, and Philadelphia. Of particular note, a new law in California imposes a new reporting and notification obligation on employers.
New Jersey TDI Rates for 2021 | Learn More
Individuals employed in the state of New Jersey may be entitled to temporary benefits for a disability caused by non-occupational sickness or accident, including pregnancy and related medical conditions. The law applies to those employers who are subject to the state’s Unemployment Insurance law. The New Jersey Department of Labor and Workforce Development released the maximum unemployment (UI) and temporary disability insurance (TDI) benefit rates, the alternative earnings and base week amounts, and the taxable wage base contribution rates for calendar year 2021.