Earlier this fall, the Office for Civil Rights (OCR) issued guidance to help the public understand when a business or employer can request information on an individual’s COVID-19 vaccination status without violating the HIPAA Privacy Rule. This blog addresses the impact of the HIPAA Privacy Rule only. Note there may be other federal or state laws that may apply resulting in a different conclusion.
The HIPAA Privacy Rule does not apply to employment records and generally does not regulate what information can be requested by an employer from employees as part of the terms and conditions of employment that an employer may impose on its workforce. For example, the HIPAA Privacy Rule does not prohibit an employer from requiring or requesting each workforce member to:
Provide documentation of their COVID-19 or flu vaccination.
Sign a HIPAA authorization for a covered health care provider to disclose the workforce member’s COVID-19 vaccination record to their employer.
Wear a mask while in the employer’s facility, on the employer’s property, or in the normal course of performing their duties at another location.
https://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.png00adminhttps://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.pngadmin2021-12-07 14:05:352021-12-07 14:05:35Ooh Baby It’s a Wild World…Your Vaccination Status: What Does HIPAA Actually Protect and Prohibit
With employers considering the imposition of health plan premium surcharges on participants who are COVID unvaccinated, a recent court decision highlights the importance of complying with the HIPAA wellness program requirements.
A federal district court in Ohio recently rejected a portion of Macy’s motion to dismiss the Department of Labor’s (DOL’s) enforcement action with respect to the tobacco surcharges on health plan premiums Macy’s imposed as part of its wellness program. In its enforcement action, the DOL focused on the lack of a reasonable alternative standard for some of the years covered by the enforcement action and the lack of retroactively refunding the surcharge to participants who earned the right to avoid the surcharge later in the plan year for certain years in which a reasonable alternative standard was made available. As background, health contingent wellness programs are required to provide a reasonable alternative standard for earning the incentive (avoiding the surcharge) under HIPAA. Read more
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As a result of the current labor shortage that many employers are currently faced with, more and more companies are finding themselves rehiring former employees. If those former employees previously participated in an employer’s 401(k) plan prior to their severance from employment, such employers should review their 401(k) plan documents to see how such rehired employees are treated under those plans. Read more
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The IRS has announced the 2022 cost of living adjustments to qualified plan limits. As expected, many of the limits increased significantly compared with prior years. Below are the highlights, and our full historical chart can be found here for easy reference.
401(k), 403(b), Profit-Sharing Plans, etc.
2022
2021
2020
Annual Compensation
305,000
290,000
285,000
Elective Deferrals
20,500
19,500
19,500
Catch-up Contributions
6,500
6,500
6,500
Defined Contribution Limit
61,000
58,000
57,000
ESOP Distribution Limits
1,230,000
245,000
1,165,000
230,000
1,150,000
230,000
Defined Benefit Limit
245,000
230,000
230,000
HCE Threshold
135,000
130,000
130,000
Key Employee
200,000
185,000
185,000
457 Elective Deferrals
20,500
19,500
19,000
Taxable Wage Base
147,000
142,800
137,700
https://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.png00adminhttps://www.employeebenefitslawblog.com/wp-content/uploads/2022/10/logo_vertical-v2.pngadmin2021-11-05 10:01:242021-11-05 10:01:24Easy Money…2022 IRS Limits Announced Today
With the exception of certain small businesses, being an employer generally means offering an array of benefits to remain competitive in the worker marketplace. As the employer grows, typically so does the list of employee benefit plans being offered. This naturally translates into more service providers, and for good reason. Employers typically don’t possess the knowledge and skillset to offer these benefits in-house, and ERISA, which applies to most employee benefit arrangements, requires the plans to be administered in accordance with some of the highest standards of care under law. As a result, employers are frequently hiring and replacing service providers.
Today’s post focuses on some tips for employers in a sometimes-overlooked aspect of the process of hiring a service provider – the contract between the employer and the provider. In concept, the service provider agreement is relatively simple – it needs to set out each party’s role and responsibility in delivering the employee benefit. As always though, the devil is in the details. Below are some tips for employers:
In June 2020, the IRS issued Notice 2020-42 providing temporary relief from the physical presence requirement for certain participant distribution and beneficiary designation elections required to be witnessed by a notary public or plan representative. This temporary relief was scheduled to expire June 30, 2021, and now has again been extended by the IRS.
As the COVID-19 pandemic continues, the IRS issued Notice 2021-40, again extending the temporary relief through the 12-month period ending June 30, 2022, as long as the prior requirements are met. See our January 25, 2021 blog posting for a summary of the requirements. Read more
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The COBRA subsidy from COVID-19 stimulus bill – The American Rescue Plan Act of 2021 (ARPA) – is nearing an end and in many cases requires employers to provide notices by September 15. The COBRA subsidy covered 100% of COBRA premiums for assistance-eligible individuals for periods of coverage beginning on or after April 1, 2021 through September 30, 2021. We previously covered the details of the subsidy in these posts: These Boots Are Made For Walking…But If You Quit, You Might Not Get the COBRA Subsidy and Lean on Me…New Guidance on Federal COBRA Subsidy. Because eligible individuals have 60 days to elect COBRA, there are still a couple months of coverage periods for which individuals may still be able to elect the subsidy. Read more
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Ooh Baby It’s a Wild World…Your Vaccination Status: What Does HIPAA Actually Protect and Prohibit
/in Health & Welfare Plansby Leslie Thomson
Earlier this fall, the Office for Civil Rights (OCR) issued guidance to help the public understand when a business or employer can request information on an individual’s COVID-19 vaccination status without violating the HIPAA Privacy Rule. This blog addresses the impact of the HIPAA Privacy Rule only. Note there may be other federal or state laws that may apply resulting in a different conclusion.
The HIPAA Privacy Rule does not apply to employment records and generally does not regulate what information can be requested by an employer from employees as part of the terms and conditions of employment that an employer may impose on its workforce. For example, the HIPAA Privacy Rule does not prohibit an employer from requiring or requesting each workforce member to:
Read more
I Feel Good… I Knew That I Would… Wellness Program Reminders
/in Cafeteria Plans, DOL, Fiduciary Duties, Fringe Benefits, Health & Welfare Plans, Litigationby Alex Smith
With employers considering the imposition of health plan premium surcharges on participants who are COVID unvaccinated, a recent court decision highlights the importance of complying with the HIPAA wellness program requirements.
A federal district court in Ohio recently rejected a portion of Macy’s motion to dismiss the Department of Labor’s (DOL’s) enforcement action with respect to the tobacco surcharges on health plan premiums Macy’s imposed as part of its wellness program. In its enforcement action, the DOL focused on the lack of a reasonable alternative standard for some of the years covered by the enforcement action and the lack of retroactively refunding the surcharge to participants who earned the right to avoid the surcharge later in the plan year for certain years in which a reasonable alternative standard was made available. As background, health contingent wellness programs are required to provide a reasonable alternative standard for earning the incentive (avoiding the surcharge) under HIPAA. Read more
Here I Go Again in the Plan…Treatment of Rehired Employees
/in 401(k) Plans, ERISA, IRS, Retirement Plansby Benjamin Gibbons
As a result of the current labor shortage that many employers are currently faced with, more and more companies are finding themselves rehiring former employees. If those former employees previously participated in an employer’s 401(k) plan prior to their severance from employment, such employers should review their 401(k) plan documents to see how such rehired employees are treated under those plans. Read more
Easy Money…2022 IRS Limits Announced Today
/in 401(k) Plans, 403(b) plans, 457(b) plans, Defined Benefit Plans, ESOPs, IRS, Retirement Plansby Lyn Domenick
The IRS has announced the 2022 cost of living adjustments to qualified plan limits. As expected, many of the limits increased significantly compared with prior years. Below are the highlights, and our full historical chart can be found here for easy reference.
245,000
230,000
230,000
Stronger . . . Services Agreements for Benefit Plans
/in Benefits Plan Creation, ERISA, Health & Welfare Plans, Retirement PlansBy Kevin Selzer
With the exception of certain small businesses, being an employer generally means offering an array of benefits to remain competitive in the worker marketplace. As the employer grows, typically so does the list of employee benefit plans being offered. This naturally translates into more service providers, and for good reason. Employers typically don’t possess the knowledge and skillset to offer these benefits in-house, and ERISA, which applies to most employee benefit arrangements, requires the plans to be administered in accordance with some of the highest standards of care under law. As a result, employers are frequently hiring and replacing service providers.
Today’s post focuses on some tips for employers in a sometimes-overlooked aspect of the process of hiring a service provider – the contract between the employer and the provider. In concept, the service provider agreement is relatively simple – it needs to set out each party’s role and responsibility in delivering the employee benefit. As always though, the devil is in the details. Below are some tips for employers:
Read more
Oh Won’t You Stay…A Little Bit Longer…Because There’s No Need to Sign Your Distribution Form in Person
/in 401(k) Plans, Defined Benefit Plans, ERISA, IRS, Retirement Plansby Elizabeth Nedrow and Becky Achten
In June 2020, the IRS issued Notice 2020-42 providing temporary relief from the physical presence requirement for certain participant distribution and beneficiary designation elections required to be witnessed by a notary public or plan representative. This temporary relief was scheduled to expire June 30, 2021, and now has again been extended by the IRS.
As the COVID-19 pandemic continues, the IRS issued Notice 2021-40, again extending the temporary relief through the 12-month period ending June 30, 2022, as long as the prior requirements are met. See our January 25, 2021 blog posting for a summary of the requirements. Read more
This is the End: Employers Must Provide Notice of the Expiring COBRA Subsidy Period
/in DOL, ERISA, Health & Welfare Plans, IRS, Legislationby Brenda Berg
The COBRA subsidy from COVID-19 stimulus bill – The American Rescue Plan Act of 2021 (ARPA) – is nearing an end and in many cases requires employers to provide notices by September 15. The COBRA subsidy covered 100% of COBRA premiums for assistance-eligible individuals for periods of coverage beginning on or after April 1, 2021 through September 30, 2021. We previously covered the details of the subsidy in these posts: These Boots Are Made For Walking…But If You Quit, You Might Not Get the COBRA Subsidy and Lean on Me…New Guidance on Federal COBRA Subsidy. Because eligible individuals have 60 days to elect COBRA, there are still a couple months of coverage periods for which individuals may still be able to elect the subsidy. Read more