Navigating the New Wave of Voluntary Benefit ERISA Suits

Litigation attorneys Lindsey Camp, Chelsea McCarthy, Todd Wozniak and Monica Perkowski published a Law360 article analyzing a new trend in employee benefit litigation: class actions focused on voluntary benefit programs. The authors highlight lawsuits alleging that voluntary benefit programs such as accident and critical illness insurance are covered by the Employee Retirement Income Security Act (ERISA) and that employers and plan fiduciaries have violated ERISA by causing employees to pay excessive and unreasonable premiums. The article defines voluntary benefit programs and explains when they become subject to ERISA, including U.S. Department of Labor (DOL) safe harbor conditions, before detailing the plaintiffs' theories of liability in the newly filed cases. They conclude by advising employers to review what voluntary benefits are available to employees and assess whether they meet the DOL safe harbor's four requirements to mitigate liability and fend off potential litigation.

The attorneys also published a Holland & Knight alert on this topic.

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