The Criminal Division of the United States Department of Justice (DOJ) encourages companies to cooperate with the government whenever criminal conduct is discovered. A recent case demonstrates how voluntary self-disclosure and cooperation can help a business avoid criminal charges. It also demonstrates how extensive such cooperation must be in order to receive full credit. On October 24, 2023, the DOJ indicted Kenia Valle Boza, a former executive with HealthSun Health Plans, Inc., on six charges involving Medicare fraud in connection with a HealthSun Medicare Advantage Plan. According to the DOJ, Boza devised a scheme to submit to the Centers for… Read more
Effective: January 1, 2024 The IRS has released the 2024 cost-of-living adjustments applicable to the dollar limitations on benefits and contributions of retirement plans and health and welfare benefit plans. We recommend plan sponsors update their systems and formulas to include the limits that have been adjusted. For a printable version of this chart, click here. For more information on these cost-of-living adjustments, contact your SGR Executive Compensation and Employee Benefits counsel.
On October 31, 2023, the Department of Labor (the “DOL”) released the highly anticipated proposed rule (the “Proposed Fiduciary Rule”), which would redefine and expand the definition of “investment advice fiduciary” under the Employee Retirement Income Security Act of 1974 (“ERISA”). New Definition of “Investment Advice Fiduciary”. The Proposed Rule provides that a person would be an investment advice fiduciary under ERISA if: The person giving the advice (the “Provider”) provides investment advice or makes an investment recommendation to a “retirement investor” (i.e., a plan, plan fiduciary, plan participant or beneficiary, IRA, IRA owner or beneficiary, or IRA fiduciary); That… Read more
On October 27, 2023, the National Labor Relations Board (“NLRB”) issued a long-awaited final rule on the criteria for establishing joint employer status under the National Labor Relations Act (“NLRA”). This rule becomes effective on December 26, 2023. The new rule makes it easier to establish a joint employer relationship under the NLRA, which can be significant for employers. A joint employer may be obligated to engage in collective bargaining with a union representing jointly employed workers, share liability for unfair labor practices committed by the other employer, and may be subject to labor picketing that would otherwise be unlawful…. Read more
The Corporate Transparency Act (“CTA”) takes effect in two stages, January 1, 2024, and January 1, 2025. The CTA is particularly aimed at beneficial ownership reporting by “small” businesses. In January 2021, Congress enacted the Corporate Transparency Act (“CTA”), which is intended to bring the U.S. into compliance with international anti-money laundering standards. Under the CTA, certain entities will be required to register themselves (“Reporting Companies”), the individuals that are the direct or indirect “beneficial owners” of such Reporting Companies and the individuals that undertook the actual creation/formation of the Reporting Company (the “Company Applicants”). For purposes of the CTA,… Read more
On October 4, 2023, Deputy Attorney General Lisa Monaco announced that the U.S. Department of Justice has launched a Safe Harbor Policy for companies that self-report financial violations discovered during the acquisition of a target company. The Safe Harbor Policy will be applied across the DOJ, Monaco said, and each part of the DOJ — including individual US Attorney’s offices and DOJ components such as the Criminal Division and National Security Division (NSD) — “will tailor its application of this policy to fit their specific enforcement regime and will consider how this policy will be implemented in practice.” In the… Read more
Group health plans must submit an annual attestation confirming agreements entered into with service providers do not contain “gag clauses,” which are limitations regarding the plan’s ability to access certain de-identified claims data or disclose provider-specific information to third parties, including plan participants. The first attestation is due by December 31, 2023, and will cover the period of December 27, 2020 through December 31, 2023. Notably, not all third-party service providers are willing to submit the attestation on behalf of their clients, which means that plan sponsors may need to complete the submission themselves to ensure compliance. For more information, please see our March… Read more
On September 27, 2023, the Department of Homeland Security (DHS) announced the designation of Israel into the Visa Waiver Program (VWP). By November 30, 2023, the Electronic System for Travel Authorization (ESTA) will be updated to allow citizens and nationals of Israel to apply to travel to the United States for tourism or business purposes for up to 90 days without first obtaining a visa. The DHS identifies the change as one to further strengthen the security, economic, and people-to-people ties between the United States and Israel. To this end, Israel has implemented travel policies to allow all U.S. citizens… Read more
The New York State Office of General Services has issued the long-awaited New York State Buy Clean Concrete guidelines applicable to certain State of New York (“NYS”) construction projects. The guidelines “establish the minimum requirements for [NYS] agencies when developing and executing contracts involving low embodied carbon concrete and the applicability of the guidelines to State projects that involve the use of concrete.” The guidelines set forth “Maximum Global Warming Potential Limits for Low Embodied Carbon Concrete” (“GWP”). The applicable GWP limit depends on the specified compressive strength of the concrete and is measured in kilograms of carbon dioxide equivalent… Read more
On August 30, 2023, the U.S. Department of Labor (“DOL”) announced a notice of proposed rulemaking titled “Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees,” that would extend overtime protections to an estimated 3.6 million salaried employees. The Fair Labor Standards Act (“FLSA”) requires most employers to pay employees overtime compensation at the rate of one and one-half times the regular rate of pay for all hours worked over 40 in a workweek, unless the employee qualifies for an exemption. To qualify as an exempt executive, administrative, or professional employee under the FLSA, generally… Read more
