Compliance Stuff

Fees A lot of employers don’t think too much about how their 401(k) administration fees are structured. If the costs seem reasonable and the provider is doing its job, why fix what isn’t broken? But here’s the problem: many 401(k) providers charge administration fees as a percentage of plan assets, and that setup can quietly siphon thousands—sometimes hundreds of thousands—of dollars away from participants’ savings over time. Worse yet, it can expose plan sponsors (that’s you, employers!) to major fiduciary liability if those fees are deemed excessive. So, let’s break it down: How do asset-based fees hurt participants? What’s the legal risk for employers? And what’s a smarter way to structure 401(k) fees? The Problem with Asset-Based 401(k) Fees Let's compare two 401(k) plans, each with 50 participants and $1 million in plan assets. They pay their 401(k) provider the following fees for identical administration services: Plan 1:  Pays a flat fee ($2,500 base + $50 per participant) ...

On January 2, 2025, then-President Biden signed into law the Senator Elizabeth Dole 21st Century Veterans Healthcare and Benefits Improvement Act (Dole Act) , a bipartisan bill that expands healthcare and other benefits for veterans . Among its various pro-veteran measures, the Dole Act introduced noteworthy amendments to the Uniformed Services Employment and Reemployment Rights Act (USERRA). USERRA, enacted in 1994, prohibits employers from discriminating and retaliating against veterans and service members because of their military status or service. USERRA also provides reemployment rights and other rights and benefits to workers whose civilian jobs are voluntarily or involuntarily interrupted by military obligations. The Dole Act is the first amendment to USERRA since the 2022 Civilian Reservist Emergency Workforce Act (CREW Act) , which extended its coverage to Federal Emergency Management Agency (FEMA) reservists. The Dole Act further enhances job protections for military member...

On Nov. 5, 2024, Missouri voters approved Proposition A, which included a new statewide paid sick leave law and an increase to the minimum wage. The paid sick leave requirement is set to go into effect on May 1, 2025 , while the $13.75 per hour minimum wage took effect on Jan. 1, 2025. On March 13, 2025, the Missouri House of Representatives passed a bill (HB 567) that, if enacted, would repeal the paid sick leave requirement and delay the minimum wage increase. However, if passed by the Senate and signed by the governor in its current form, the bill would not become effective until Aug. 28, 2025, after the paid sick leave requirement is set to take effect on May 1, 2025. The bill has now been read twice in the Senate, and a public hearing is set for March 26, 2025. On March 12, 2025, the Missouri Supreme Court heard oral argument on the constitutionality of Proposition A. Opponents of the law, mostly business groups, argue that: The fiscal note summary to the ballot initiative did no...

The Wall Street Journal is reporting  newly appointed OFCCP Director Catherine Eschbach  announced to OFCCP staff that the Agency will review federal contractor affirmative action plans previously submitted to the Agency for evidence of discriminatory employment practices. The report quotes Director Eschbach’s email to staffers in which she states …most of what OFCCP had been doing was out of step, if not flat out contradictory, to our country’s laws, and all reform options are on the table.” It is unclear at this time what form these reviews will take or which contractors may be under review. Importantly, t he plans under review were submitted to OFCCP under the prior Executive Order 11246 and before the current administration’s recent issuance of  Executive Order 14173 , revoking EO11246. This is a developing story so stay turned for further details.   Source(s): Mitchell, L. A. (2025, March 24).  BREAKING NEWS: OFCCP to Revisit Previously Submitted Contracto...

From the feds. This week, the U.S. Equal Employment Opportunity Commission and the Department of Justice issued  technical assistance materials  on diversity, equity, and inclusion initiatives, including one document titled  “What to Do if You Experience Discrimination Related to DEI at Work,”  and another titled  “What You Should Know About DEI-Related Discrimination at Work.” Employers with DEI programs will want to review both documents and determine whether they need to make any adjustments to avoid legal challenges. Meanwhile, here are seven quick (and, in my opinion, very helpful) tips from the materials: Tip No. 1: Title VII of the Civil Rights Act of 1964 applies to all employees, male and female, "majority" and minority.   One big issue  before the U.S. Supreme Court right now  is whether “reverse” discrimination plaintiffs have a more stringent burden of proof than plaintiffs who are women claiming sex discrimination, or members of minor...

As the workplace landscape continues to evolve, employers must stay ahead of emerging challenges by implementing thoughtful and proactive policies.  In 2025, three key areas stand out as critical for fostering a positive and productive work environment: promoting collaboration and respect, supporting employee well-being, and responsibly integrating artificial intelligence.  In this article, we’ll explore how well-crafted policies in these areas can enhance workplace culture, ensure compliance, and boost employee satisfaction. Policies Promoting Collaboration, Respect, and Opportunity Diversity, Equity, and Inclusion ("DEI") is a  key employment topic to prioritize in 2025 .  On January 21, 2025, President Trump signed  Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity , which encourages private employers to end "illegal DEI discrimination and preferences."  This executive action directs federal agencies to pro...

The Federal Bureau of Investigation (FBI) recently warned employers of increasing security risks from North Korean workers infiltrating U.S. companies by obtaining remote jobs to steal proprietary information and extort money to fund activities of the North Korean government. Companies that rely on remote hires face a tricky balancing act between rigorous job applicant vetting procedures and ensuring that new processes are compliant with state and federal laws governing automated decision-making and background checks or consumer reports. Quick Hits The FBI issued guidance regarding the growing threat from North Korean IT workers infiltrating U.S. companies to steal sensitive data and extort money, urging employers to enhance their cybersecurity measures and monitoring practices. The FBI advised U.S. companies to improve their remote hiring procedures by implementing stringent identity verification techniques and educating HR staff on the risks posed by potential malicious actors, incl...