Even wellness programs with good intentions can violate the Employee Retirement Income Security Act (“ERISA”) if incentives cross the line into coercive penalties. As employers increasingly use weight loss challenges, step goals, or health screenings to promote wellness, questions arise about whether these programs comply with ERISA, the Affordable Care Act (“ACA”), and the Health Insurance Portability and Accountability Act (“HIPAA”) nondiscrimination rules. Miller Shah LLP advises employers, plan administrators, and employees on ERISA compliance and represents workers…
A recent Employee Retirement Income Security Act (“ERISA”) case has placed employer wellness program surcharges under scrutiny, alleging that penalties imposed on health plans for employees using tobacco products violate federal benefits laws. The decision highlights growing wellness program compliance risks under ERISA for employers that use financial incentives or penalties tied to employee health habits. What are Surcharges, and How do Employers Use Them? Smoking and Wellness Surcharges in Health Plans A tobacco surcharge is an extra fee on health insurance premiums for employees using…
On July 18, 2025, two former employees (“Plaintiffs”) of Nokia of America Corporation (“Nokia” or the “Company”) filed a class action lawsuit against the Company, as well as Nokia’s Administrative Oversight Committee, Pension & Benefit Investment Committee, Employee Benefits Committee, and the Nokia Investment Management Corporation (“NIMCO”) in New Jersey federal court. The suit alleges that Nokia mismanaged the Nokia Savings/401(K) Plan (the “Plan”) by investing in at least two…
Supreme Court Issues Landmark ERISA Decision in Cunningham v. Cornell On April 17, 2025, the United States Supreme Court issued its long-awaited decision in Cunningham et al. v. Cornell University et al., case number 23-1007. The Court reversed the Second Circuit’s prior ruling and held that plaintiffs asserting claims under the Employee Retirement Income Security Act of 1974 (“ERISA”) for prohibited transactions are not required to plead the inapplicability of…
On December 5, 2024, the District Court for the Middle District of North Carolina finalized a $3.5 million settlement against IQVIA Inc. (“IQVIA”), a healthcare technology company, resolving allegations that it mismanaged its $1.13 billion IQVIA 401(k) Plan (“Plan”). The class action lawsuit, brought on behalf of the Plan and approximately 9,000 employees, alleged breaches of fiduciary duty under the Employee Retirement Income Security Act (“ERISA”). Plaintiffs Darya Dearing, Janice…
On December 4, 2024, Plaintiffs Lawanda Lasha House Johnson, Rebecca A. Rice, and Shalamar Curtis (“Plaintiffs”) filed an appeal with the Third Circuit on behalf of Quest Diagnostic Inc. (“Quest”) employees to revisit their lawsuit alleging mismanagement of the Profit Sharing Plan of Quest Diagnostics (“Plan”). The proposed class, comprising of current and former employees, claims the District Court prematurely ruled in Quest’s favor without properly addressing significant factual disputes…
On October 4, 2024, the Supreme Court granted certiorari in a class-action lawsuit filed by employees of Cornell University (“Cornell”), alleging mismanagement of their retirement funds. The case presents an opportunity for the Court to address a Circuit split concerning the elements required to bring a “prohibited transactions” claim under ERISA. The Employee Retirement Income Security Act of 1974 (“ERISA”) is the federal law governing private industry retirement plans, with…
On September 5, 2024, Judge James K. Bredar of a Maryland federal court approved an $11.8 million settlement reached in a class action lawsuit against MedStar Health, Inc. (“MedStar”), the Board of Directors of MedStar Health, Inc. (“Board”), and the MedStar Health, Inc. Retirement Savings Plan Committee (“Committee” and collectively, “Defendants”). The settlement resolves allegations that MedStar mismanaged the MedStar Health, Inc. Retirement Savings Plan (“Plan”), to the detriment of…
On July 16, 2024, Plaintiff Matthew Wehner filed an appellate brief in the United States Court of Appeals for the Ninth Circuit asking the Court to reverse the 2021 dismissal of his class action lawsuit against former employer Genentech, Inc. (“Genentech”) and the U.S. Roche DC Fiduciary Committee (“Committee,” and, collectively with Genentech, “Defendants”) regarding allegedly imprudent investments in the U.S. Roche 401(k) Savings Plan (the “Plan”). The Plan is…
On October 25, 2023, U.S. District Judge Andrew L. Carter, Jr. granted final approval of a $124.6 million settlement reached in a class action lawsuit against Ruane, Cunniff & Goldfarb Inc., DST Systems, Inc., the Advisory Committee of the DST Systems, Inc. 401(k) Profit Sharing Plan, the Compensation Committee of the Board of Directors of DST Systems, Inc., and Robert D. Goldfarb (collectively, “DST Systems”). The settlement resolves allegations that…
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