NOTE: This post was originally written August 29, 2023, and was updated on September 27, 2023.

Breaking news: On September 19, 2023, the Oklahoma Attorney General filed a Petition for En Banc Rehearing, challenging the Tenth Circuit panel’s decision in this case and requesting a rehearing before the full Tenth Circuit bench. The Oklahoma Attorney General argued in his Petition that the panel’s decision contradicted established Supreme Court precedent and recent circuit court decisions regarding the scope of ERISA preemption, failed to address the ERISA “savings clause,” and was overbroad in its articulation of Medicare Part D preemption. On September 25, 2023, the Tenth Circuit ordered PCMA to respond to the Petition. We will provide further updates as this matter develops.

Continue Reading Tenth Circuit Rules ERISA Preempts Oklahoma PBM-Reform Law

On August 23, the Internal Revenue Service issued Rev. Proc. 2023-29, announcing that the Affordable Care Act (ACA) affordability threshold will be 8.39% for plan years beginning in 2024, a substantial decrease from the 9.12% affordability threshold set for plan year 2023. This marks the largest change yet in the affordability thresholds year-over-year. The affordability threshold is used to determine whether employer-sponsored health coverage is affordable for purposes of the ACA’s employer-shared responsibility provisions.

Continue Reading Planning for Open Enrollment? Note the ACA Affordability Threshold Drop

We recognize that many companies sponsor ERISA welfare benefit plans and will soon be undergoing their open enrollment process and issuing related participant communications. To assist with that process, we have prepared an Automatic Participant Disclosures Checklist for use during open enrollment and throughout the plan year. Note that some of these disclosures may be delivered electronically under certain circumstances.

If you have questions regarding the information in this checklist or would like additional information regarding electronic delivery of notices, please contact any of the attorneys in our Employee Benefits Practice Group.

Recent years have brought a steady stream of developments in labor and employment law, and 2023 has been no exception. As we expect regulatory and legislative changes to continue, it is critical for employers and HR professionals to stay informed of the impact these developments will have in the workplace. We invite you to join us for a lively presentation discussing the significant legal developments that employers should consider as we look forward to 2024.

Continue Reading Register Now | Significant Labor & Employment Law Developments Impacting the Workplace

On April 28, 2023, the IRS Office of Chief Counsel issued Chief Counsel Advice Memorandum 202317020 (CCA Memo), with an important reminder to employers who provide health and dependent care flexible spending arrangements (FSAs) under an Internal Revenue Code (Code) Section 125 cafeteria plan: a failure to adequately substantiate FSA expenses before reimbursement may result in the loss of the tax-free status of all benefits provided under the Code Section 125 cafeteria plan.  

Continue Reading Flexible Spending Accounts: Require Substantiation or Risk Disqualification

Late last week, the Internal Revenue Service (IRS) issued guidance on Section 603 of the SECURE 2.0 Act with respect to catch-up contributions. The guidance includes a two-year administrative transition period – until 2026 – to implement the Roth catch-up contribution provisions under SECURE 2.0 and is in response to employer coalitions and industry groups who had voiced concerns about being able to timely implement those provisions.

Continue Reading Amid Concerns, IRS Delays Required Roth Catch-Ups Until 2026 to Allow For Plan Compliance

On July 25, the Department of Labor, Department of the Treasury, and Department of Health and Human Services (the Departments) released new Proposed Rules (Proposed Rules) that clarify certain requirements imposed by the Mental Health Parity and Addiction Equity Act (MHPAEA). In addition to the new Proposed Rules, the Departments issued their annual MHPAEA report to Congress (Report) to detail recent enforcement efforts.

Continue Reading New Proposed Mental Health Parity Rules Amid Report of Widespread Failure

The U.S. Citizenship and Immigration Services (USCIS) recently announced that it will publish a revised Form I-9 (Employment Eligibility Verification), which is used by employers to verify an employee’s identity and employment authorization.

Continue Reading Employers Must Switch to New Version of Form I-9 by October 31, 2023

The Supreme Court recently ruled that the burden an employer must meet in denying a requested religious accommodation is “substantial” and not merely “de minimis.”  Employers will now have a harder time denying religious accommodations.

Continue Reading Supreme Court Increases Employer’s Obligation in Religious Accommodation Requests