What Happens to the 401(k) Plan When a Company Is Sold?

Administering a 401(k) plan is a team effort, requiring the expertise of HR staff, the plan’s recordkeeper, and an ERISA attorney. When a company that sponsors a 401(k) or other retirement plan sells the business, a call early in the process to the company’s ERISA attorney can help identify options and create a plan to …

Federal Court Blocks Enforcement of Some ACA Preventive Health Service Requirements: What Plan Sponsors Should Consider

In a March 2023 ruling, a Texas federal district court vacated all actions taken by the Departments of Labor (“DOL”), Health and Human Services (“HHS”), and Treasury (collectively, the “Departments”) to implement or enforce certain preventive care requirements under the Patient Protection and Affordable Care Act (“ACA”). Recently, the Departments released initial FAQ guidance addressing …

Employment Law Reminder for Educational Entities — Consider Special Rules Within FMLA, FLSA, and Title IX

While employers at most educational entities, such as K-12 schools, must follow applicable federal employment laws, there are unique provisions within those employment laws and other regulations that these employers must keep in mind. Of course, many schools have collective bargaining agreements, as well as applicable state and local statutory and regulatory provisions that they …

Layoffs Require Careful Planning to Avoid Costly Lawsuits

Current economic circumstances suggest that layoffs are coming. Indeed, in late March, Disney’s CEO, Bob Iger, announced the company’s plans to terminate more than 7,000 employees in the coming weeks, and Disney is not alone.[1] If companies and HR professionals do not carefully plan group terminations, they could face long, expensive lawsuits filed by multiple …

End of the COVID-19 Emergency – Impact on Employee Benefit Plans

On March 29, 2023, the Departments of Labor (“DOL”), Health and Human Services (“HHS”), and Treasury (the “Departments”) published FAQs Part 58 on the Families First Coronavirus Response Act (“FFCRA”), the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), and the Health Insurance Portability and Accountability Act (“HIPAA”), providing guidance on the impact …

NLRB’s Combination McLaren Decision and GC Memo KO’s Severance (and Other) Agreements

In the McLaren Macomb opinion issued last month, 372 NLRB No. 58 (2023), the National Labor Relations Board (“NLRB”) landed a healthy punch chipping away at what had previously been considered standard severance provisions in employment contracts because they substantially interfere with employees’ National Labor Relationship Act (“NLRA”) Section 7 rights. On March 22, 2023, …

Gantt V. Harris County: How Death Does Not Dismiss a TCHRA Case under the Texas Survivorship Statute

The Texas Commission on Human Rights Act (“TCHRA”) was enacted to “provide for the execution of the policies of Title VII of the Civil Rights Act of 1964 and its subsequent amendments.” Tex. Lab. Code § 21.001. Accordingly, it is rare for an issue of first impression to arise in the Texas courts. However, in …

Form I-9 Remote Flexibility Ends July 31, 2023 – 5 Things to Keep in Mind

The Department of Homeland Security (DHS) extended the COVID-19 remote completion flexibilities for Form I-9, effective November 1, 2022 – July 31, 2023. Additionally, in August of 2022, DHS invited public comment on a Notice of Proposed Rulemaking (NPRM)[1] regarding new policies for consideration in Form I-9 completion, such as permanent virtual document review options in light of new …

Michigan’s Earned Sick Time Act Is Out…At Least For Now

The wait is over – Michigan employers (and employment lawyers) now know that the Earned Sick Time Act and Improved Workforce Opportunity Wage Act, as originally proposed, will NOT go into effect on February 20, 2023.   In an opinion issued January 26, 2023, the Michigan Court of Appeals panel in Mothering Justice v. Attorney General overturned …

Federal Trade Commission Proposes Rule to Ban Non-Compete Clauses

On January 5, 2023, the Federal Trade Commission (“FTC”) issued a notice of proposed rulemaking (“NPRM”) to ban the use of non-compete clauses with all workers. Although not yet enforceable, the proposed rule marks a dramatic departure from the current regulatory landscape, which is primarily dictated by state law. A non-compete clause is a contractual …