Compliance Stuff

Most executive compensation arrangements are in the form of contractual documents. Even a form deferred compensation plan (or “top hat” plan) providing deferred compensation for a select group of management or highly compensated employees , while in legal terms is still an employee benefit plan for purposes of the Employee Retirement Income Security Act of 1974, as amended (ERISA), is still, in a very essential way, a contract or agreement between an employer and those employees designated as eligible for participation. “Wiggle room” for the administrator of a plan to interpret the meaning of the plan, and discretion retained by an employer to modify unilaterally the terms of a contractual document with an executive, may be helpful but may not go as far to protect the employer as the employer might like. The well-established concept that, in the case of a benefits denial, the administrator of an ERISA plan should be permitted to interpret the terms of the plan and be subject to a defe...

Takeaways Republicans in the U.S. House of Representatives attempt to deliver on President Trump’s campaign promises in the One Big Beautiful Bill Act (BBB or the Act), which passed the House by a razor-thin margin of 215 in favor and 214 opposed on May 22, 2025 .  BBB shows favoritism of Health Savings Accounts and Health Reimbursement Account benefits , making changes to broaden their scope, increase utilization, and bolster savings.   The Act also provides a glimpse into legislative or regulatory changes that may be on the horizon for ERISA-governed plans, including standards for Pharmacy Benefit Manager compensation, contractual requirements, and disclosures applicable to government-subsidized plans.  Related Links One Big Beautiful Bill Act (H.R. 1) Executive Order:  Lowering Drug Prices by Once Again Putting Americans First Executive Order:  Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients Fact Sheet: President Donald J. T...

  How prepared is your organization?   Since the U.S. Supreme Court’s decision in  Students for Fair Admissions, Inc. v. President & Fellows of Harvard College , Diversity, Equity and Inclusion policies have faced increased scrutiny. Practices promoting DEI are continuing to be challenged by activists, workers, and politicians. Hardly a day goes by when DEI is not in the news in some fashion. In case you missed it, you can check out a few examples,  here ,  here , and  here . Consider these ten ways to avoid having your DEI practices become the next target: No. 1:   Don’t tie executive compensation to attainment of diversity goals.  Such a practice is not  per se  unlawful, but it could provide powerful evidence to support a claim that managers made employment decisions based on protected characteristics . The State of Missouri relies on this type of monetary incentive in its  lawsuit against IBM  alleging discriminati...