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We’re having problems with people coming back from FMLA/CFRA leave. Two particular situations worry us. In one case, the manager says, “I’ve redistributed the work and there’s no job anymore.” And in the other, the manager says, “We’ve hired a temp who is much better—we don’t want the person back.” Don’t we still have to […]
We’ve experienced a lot of turnover in the past two years—many employees have decided to quit and move on to other companies. On an employee’s last day, I meet with him or her to go over final paperwork, benefits, COBRA, etc., but I think we should also interview the departing employee to find out why […]
In a unanimous decision favorable to employees, the U.S. Supreme Court recently ruled that individual 401(k) plan participants can sue plan administrators under the federal Employee Retirement Income Security Act (ERISA) for breach of fiduciary duty. James LaRue had initiated the lawsuit after his employer failed to follow his investment instructions, which he said resulted […]
As of press time, the U.S. Supreme Court was set to rule on a case that could redefine the claims and remedies allowed under the federal Employee Retirement Income Security Act (ERISA). The lawsuit arose after a 401(k) plan participant asked the plan administrator, which was his employer, to change his elections. The participant claimed […]
The IRS recently issued Notice 2007-100, which gives employers an opportunity to correct unintentional operational mistakes concerning nonqualified deferred compensation plans. Internal Revenue Code Section 409A, which covers these plans, specifies the manner in which they must be reported to avoid premature taxation. The notice gives employers the opportunity to self-correct unintentional operational errors—the failure […]
The U.S. Department of Labor (DOL) has issued a proposed rule that would force 401(k) plan administrators to report compensation they derive directly and indirectly from their services. In addition, the rule would require plan administrators to disclose in writing potential conflicts of interest to plan fiduciaries, namely employers. The regulation’s main purpose is to […]
A new U.S. Equal Employment Opportunity Commission (EEOC) rule gives employers some relief regarding their ability to reduce or eliminate retirees’ healthcare benefits once they become eligible for Medicare. Such a reduction or elimination will not violate the Age Discrimination in Employment Act (ADEA), the federal statute that prohibits age-based discrimination, the new rule states. […]
A waiting-time penalty is assessed when an employer willfully fails to pay a worker the compensation he or she is entitled to on termination of employment. A California appeals court recently ruled that when a worker seeks waiting-time penalties but not unpaid final wages, his or her claim is subject to a one-year statute of […]
Only 25 percent of the 300 mid- to large-sized employers polled in a survey by global HR-services company Hewitt Associates said they viewed a high participation rate in their 401(k) plans as the prime measure of the plans’ success. The survey indicated that more employers are placing less importance on the number of employees enrolled […]
The U.S. Supreme Court has handed down an important new ruling that could open the floodgates for claims by employees charging that their employers mishandled retirement accounts. The new case involved James LaRue, who filed a lawsuit under ERISA—the federal law that governs employee benefits—claiming that his employer’s failure to follow his investment directions under […]