What are common employer ERISA violations?
ERISA, also known as the Employee Retirement Income Security Act, is a group of federal laws with the intention of protecting workers of private companies who provide retirement, pension, health insurance, and profit sharing plans.
In short, ERISA provides a minimum set of standards that these companies must comply with.
Unfortunately, there are times when an employer violates ERISA. As a result, at least one employee is negatively impacted. Furthermore, this can land the company in hot water with federal authorities.
A violation occurs when a company fails to meet its ERISA obligations. While there are many types of violations, some of the most common include:
— Interference with employee rights
— Improperly denying benefits to a former or current employee
— Breach of fiduciary duty
From an employer point of view, it is essential for the company to fully understand ERISA, including their obligations. This helps protect against a mistake that could cause harm to the organization.
Employees should also become familiar with ERISA, ensuring that they know their rights as outlined by this set of federal laws. If you know the ins and outs of the law, it is easier to pinpoint a violation.
These common employer ERISA violations come to the forefront time and time again. A violation often leads to a dispute between the employer and employee, leading to more trouble in the future.
If an employee feels that his or her employer has committed an ERISA violation, there are steps that can be taken to resolve the issue and put this in the past sooner rather than later.
Source: FindLaw, “ERISA Violations: Penalties and Punishments,” accessed April. 14, 2015