labor lawAdivision of labor law center

Two recent changes to the law require employers to change their benefits for employees who serve in the Military Reserve.

The Heroes Earnings Assistance and Relief Tax Act or HEART Act requires employers to permit distributions from healthcare flexible spending accounts. The law prevents a “use-it-or-lose-it” policy for qualified reservists. Under the new law, reservists cannot lose unused funds, as can other employees under cafeteria benefits plans. Reservists must be permitted to withdraw the funds without penalty.

The new regulations went into effect in the middle of 2008, but many employers still struggle with compliance.

Under the HEART Act, benefit plan sponsors must amend cafeteria plans to allow distributions to qualified military reservists and notify all participants – not only qualified reservists – of the changes.

The law also permits active duty reservists to withdraw money (more…)

Employers have been invited to comment on new regulations regarding 401k and other retirement savings plans.

The US Department of Labor recently announced stricter rules for employers to follow in informing workers of options. These regulations are proposed at this point, however, they will become final beginning January 1, 2009. The proposed regulations were published in the Federal Register on July 23, 2008.

Employers can comment on the new regulations by (more…)

Employers are warned that the US Department of Labor and the Securities and Exchange Commission or SEC will be sharing information on employee retirement plans such as 401ks. This collaboration enables the federal agency to more strictly enforce regulations on employers.

Elaine L. Chao, U.S. secretary of labor, and Christopher Cox, chairman of the U.S. Securities and Exchange Commission (SEC), today committed to (more…)