Voluntary Benefits: A Small Wave with Big Potential
Litigation attorney Lindsey Camp was interviewed for a PLANSPONSOR article about emerging litigation involving voluntary benefit programs and when these benefits fall under the Employee Retirement Income Security Act (ERISA). Recent lawsuits allege that employers breached their fiduciary duties by failing to negotiate lower premiums for voluntary benefits, raising questions about the protections available under the U.S. Department of Labor's safe harbor. As this new theory of liability develops, Lindsey advised employers to make a clear decision about whether to treat a voluntary benefit as an ERISA plan and ensure their day-to-day actions align with that choice. She also noted that the safe harbor is "an important guidepost" but is not dispositive of whether a voluntary benefit is subject to ERISA.