Compliance Stuff

Workers 55 and older now make up nearly a quarter of the US workforce and represent the labor force’s fastest growing age group. Further, while the Bureau of Labor Statistics projects that the overall labor force participation rate will slightly decline between 2020 and 2030, the rate for those in the 75-and-up age group is expected to grow by 96.5% during this same decade. What does an aging workforce mean for employers? This Insight will cover four key workplace law considerations as employees continue working later into their lives. 4 Key Compliance Considerations for Employers 1. Age Discrimination Risks An aging workforce heightens the importance of careful compliance with age discrimination laws. This is especially true in light of a recent AARP Research survey of workers age 50-plus, which showed that: 22% of respondents felt they were being pushed out of work because of their age; and 64% reported seeing or experiencing age discrimination in the workplace. The federal Age D...

On March 14, 2026, the West Virginia Legislature passed a  bill  (House Bill (HB) 4009) to allow employers to contribute to a worker’s portable benefit account while still classifying that worker as an independent contractor. The bill is likely to be especially impactful for rideshare and food delivery companies that rely heavily on gig workers for app-based services. 0:00 4:27 Quick Hits West Virginia legislators passed a bill (HB 4009) that permits companies to provide portable benefit accounts for workers without needing to classify those workers as employees. Governor Patrick Morrisey has not signed or vetoed the bill yet. If enacted, the bill would take e ffect for taxable years starting on January 1, 2026, or later. Portable benefits are benefits that stay with the individual and accumulate based on hours worked or a percentage of transaction fees. They can function similar to a 401(k), paid time off program, or health savings account (HSA). Instead of benefits offered...

Love may fade, but beneficiary designations do not. That was the hard lesson learned in a legal dispute between a man’s estate and his ex-spouse over his retirement plan proceeds – ultimately, a federal appeals court in Chicago refused to honor a man’s attempt to remove his ex-wife as beneficiary of his retirement account and ruled that the ex was entitled to receive the entirety of the account. The decision, which was based on a legal test courts have long recognized in ERISA cases, produced a harsh outcome for the estate’s intended beneficiaries, despite the participant’s clear expression of intent. In this Insight, we’ll explain what happened in the recent 7th Circuit case and provide three takeaways for employers and retirement plan fiduciaries. What Led to the Beneficiary Dispute in the PCA Case For more than 30 years, a man worked for Packaging Corporation of America (PCA) and participated in the company’s 401(k) plan. When the participant got married in 2006, he designated his ...

  Beginning January 1, 2026, age 50+ catch‑up contributions for “high‑paid participants” of 401(k), 403(b), and governmental 457(b) retirement plans must be made on a Roth basis. As a result, employers must identify who is a “high-paid participant” and ensure that corresponding catch-up contributions are characterized as Roth — even if a participant’s standing catch-up deferral election is pre‑tax.   The Internal Revenue Service (IRS) recently released final regulations   implementing the mandatory Roth catch-up, which will create pressure points for payroll systems, retirement plan recordkeepers, and plan sponsors. This update summarizes the new mandatory Roth catch-up requirement, highlights selected issues for payroll and human resources to consider, and recommends solutions to reduce compliance risk.  The New Mandatory Roth Catch‑Up Rule Under final IRS regulations, a catch‑up eligible participant with FICA wages paid by applicable employer(s) above a wage thresh...