Legal Update: Increased Civil Penalty Amounts for SBC, MSP, HIPAA Violations
On Aug. 8, 2024, the U.S. Department of Health and Human Services (HHS) published a
final rule increasing key penalties affecting group health plans. HHS adjusts these penalty amounts for inflation each year to improve their effectiveness and maintain their deterrent effect. Because these penalties are substantial, employers with group health plans should periodically review their benefit plan administration protocols to ensure full compliance.
Legal Update: USCIS Extends Form I-9 Expiration Date
On Aug. 2, 2024, the U.S. Citizenship and Immigration Services (USCIS) announced
that it updated its Employment Eligibility Verification form, also known as Form I-9, to extend the form’s expiration date from July 31, 2026, to May 31, 2027.
Legal Update: Effective Date of DOL’s Retirement Security Rule Put On Hold
On July 25, 2024, a federal U.S. District Court in Texas stayed the effective date of the Department of Labor’s (DOL) final retirement security rule and certain amendments to class prohibited transaction exemptions (PTEs) until further order of the court. The final rule and PTE amendments were generally scheduled to take effect on Sept. 23, 2024.
Legal Update: Pennsylvania Federal District Court Declines to Block FTC Noncompete Ban
On July 23, 2024, the U.S. District Court for the Eastern District of Pennsylvania denied
the plaintiff’s motion in ATS Tree Services LLC v. FTC for a preliminary injunction to block the Federal Trade Commission’s (FTC) noncompete ban. This ruling differs from an early July holding in a similar case in the Northern District of Texas (Ryan LLC v. FTC) that partially blocked the ban with respect to the plaintiffs in that case, but not nationwide. In each case, the ban is still scheduled to take effect for most employers on Sept. 4, 2024.
Legal Update: Court Denies FMLA Leave for Unmarried Father Before Child’s Birth
The 11th Circuit Court of Appeals recently held in Tanner v. Stryker Corp. that an unmarried employee who traveled to be with his pregnant ex-girlfriend for the birth of their baby was not entitled to leave before the child’s birth under the federal Family and Medical Leave Act (FMLA). The 11th Circuit has jurisdiction over Alabama, Florida and Georgia, and its rulings must be followed by employers in those states.
Legal Update: Draft Forms for 2024 ACA Reporting Released
The Internal Revenue Service (IRS) has released draft 2024 forms for reporting under Internal Revenue Code Sections 6055 and 6056. Draft instructions for these forms have not yet been released.
- The 2024 draft Forms 1094-B and 1095-B are draft versions of forms that will be used by providers of minimum essential coverage—including self-insured plan sponsors that are not applicable large employers (ALEs)—to report under Section 6055.
- The 2024 draft Forms 1094-C and 1095-C are draft versions of forms that will be used by ALEs to report under Section 6056 as well as for combined Section 6055 and 6056 reporting by ALEs that sponsor self-insured plans.
No major changes were made to the draft forms for 2024 reporting. However,certain changes may be made once the forms and instructions are finalized.
Legal Update: HHS Provides HIPAA Model Attestation for Reproductive Health Care Privacy
The U.S. Department of Health and Human Services (HHS) has updated its webpage on reproductive health care privacy to provide additional resources,including a HIPAA model attestation form, that covered entities and business associates may use to comply with new protections for reproductive health care privacy. These new privacy protections become effective on Dec. 23, 2024.
Legal Update: Federal Courts Block Enforcement of Certain Section 1557 Nondiscrimination Provisions
On April 26, 2024, the U.S. Department of Health and Human Services’ (HHS)Office of Civil Rights (OCR) issued a final rule under Section 1557 of the Affordable Care Act, which prohibits discrimination based on race, color,national origin, sex, age or disability in certain health programs and activities.
The final rule was to become effective July 5, 2024, with varied applicability dates for certain provisions, but federal courts have blocked portions of the rule from going into effect.
Legal Update: Texas Federal District Court Partially Clocks the FTC’s Noncompete Ban
On July 3, 2024, the U.S. District Court for the Northern District of Texas granted the plaintiffs’ motion in Ryan LLC v. FTC for a preliminary injunction to block the Federal Trade Commission’s (FTC) noncompete ban while the court considers the merit of the case. The injunction applies only to the plaintiffs in the case: a Texas employer, the U.S. Chamber of Commerce and other business
organizations. The court intends to rule on the merits of the case by Aug. 30, 2024, before the ban’s scheduled effective date of Sept. 4, 2024.
Legal Update: U.S. Supreme Court Overrules Chevron Deference
On June 28, 2024, the U.S. Supreme Court issued a decision in Loper Bright Enterprises v. Raimondo and Relentless Inc. v. Department of Commerce. The Court overruled its 1984 decision in Chevron, U.S.A. Inc. v. Natural Resources Defense Council Inc., which held that courts should defer to federal agencies to interpret ambiguities and gaps in the laws that the agencies implement (known as Chevron deference).
Client and Employee Resources
The more your employees understand your benefit plans the more they become educated, empowered consumers. The programs you provide will also gain an enhanced value.
As your strategic partners in employee benefits, we can provide multiple avenues of ongoing support, including:
- Employee Meetings (English and Spanish)
- Webcasts
- Payroll Stuffers
- Poster Campaigns
- Newsletters
Carrier Directories
E-Verify is a web-based system that allows enrolled employers to confirm the eligibility of their employees to work in the United States. Click the image below to begin.
