A 55-year-old intern? Why older apprentices may be the answer to the talent gap

Internships and apprenticeship programs may not just be for young professionals. The DOL’s Task Force on Apprenticeship Expansion recently called for a process that would establish industry-recognized apprenticeship programs (IRAPs). Read this blog post for how older apprentices may be the answer to today's talent gap.


LAS VEGAS — Want to revitalize your workforce? Try hiring a baby boomer as your new intern.

Apprentice programs may not be just for young talents fresh out of college. Employers should study such programs for older workers, said the leader of the world’s largest HR professional society.

“We oftentimes think about apprenticeships for young people, but what about the 55-year-old who needs to work or wants to work an additional 20 years and needs to learn the new coding language?” Johnny Taylor Jr., CEO of the Society for Human Resource Management, said Tuesday during a media event at the annual SHRM conference. “So apprenticeship writ large ... it’s a broader idea than just what we all think about young people getting an opportunity.”

The comments come after the DOL’s Task Force on Apprenticeship Expansion on Monday called for a process to establish industry-recognized apprenticeship programs (IRAPs).

IRAPs will be customizable apprenticeship models that the DOL calls "a new pathway for the expansion of apprenticeships."

In addition, the proposed rule outlined the process to become a standards recognition entity (SRE), which would set standards for training, structure and curriculum for the IRAPs.

DOL would ensure that SREs have the capacity and quality-assurance processes and procedures needed to monitor IRAPs and recognize that IRAPs are high quality. The department's criteria for high-quality IRAPs include: paid work, work-based learning, mentorship, education and instruction, industry-recognized credentials, safety and supervision and adhering to equal employment opportunity obligations.

"The apprenticeship model of earning while learning has worked well in many American industries, and today we open opportunities for apprenticeships to flourish in new sectors of our economy," Labor Secretary Alexander Acosta said in a statement.

Taylor has addressed expanding apprenticeships before, noting the association has recently renewed its support by studying ways to make programs more inclusive and broaden them beyond high school or college students, he said.

“I was at a meeting the other day and they referred to restoring the dignity of the first job,” Taylor said. “That’s a real aspirational thing.”

Employers also need to do more to tap hidden pools of skilled labor from the disabled to the formerly incarcerated to bridge the workplace talent gap in the United States, he said.

“How do we do that? For example, instead of a four-year college experience, maybe it’s a six-year average college experience because you go knock out your first two years,” and break up subsequent educational experiences between semesters of work, school or a mix of both combined with work internships.

The former labor employment lawyer also said key themes that SHRM is focused on this year include workplace culture, age discrimination, diversity and reskilling the U.S. workforce for the jobs of the future.

“Everyone is talking about work,” Taylor said. “It’s a great time to be in HR.”

Additional reporting by Nick Otto.

SOURCE: Siew, W. (26 June 2019) "A 55-year-old intern? Why older apprentices may be the answer to the talent gap" (Web Blog Post). Retrieved from https://www.benefitnews.com/news/shrm-calls-on-expanding-workforce-apprenticeships


How to Respond to the Spread of Measles in the Workplace

How are you responding to the spread of measles? With measles now at its highest number of cases in one year since 1994, employers are having to cooperate with health departments to fight the spread. Continue reading this blog post from SHRM to learn more.


Employers and educators are cooperating with health departments to fight the spread of measles, now at its highest number of cases in one year since 1994: 764.

Two California universities—California State University, Los Angeles (Cal State LA) and the University of California, Los Angeles (UCLA)—recently quarantined staff and students at the request of local health departments.

In April at Cal State LA, the health department told more than 600 students and employees to stay home after a student with measles entered a university library.

Also last month, UCLA identified and notified more than 500 students, faculty and staff who may have crossed paths with a student who attended class when contagious. The county health department quarantined 119 students and eight faculty members until their immunity was established.

The quarantines ended April 30 at UCLA and May 2 at Cal State LA.

Measles is one of the most contagious viruses; one measles-infected person can give the virus to 18 others. In fact, 90 percent of unvaccinated people exposed to the virus become infected, the U.S. Centers for Disease Control and Prevention (CDC) notes.

Action Steps for Employers

Once an employer learns someone in the workplace has measles, it should immediately send the worker home and tell him or her not to return until cleared by a physician or other qualified health care provider, said Robin Shea, an attorney with Constangy, Brooks, Smith & Prophete in Winston-Salem, N.C.

The employer should then notify the local health department and follow its recommended actions, said Howard Mavity, an attorney with Fisher Phillips in Atlanta. The company may want to inform workers where and when employees might have been exposed. If employees were possibly exposed, the employer may wish to encourage them to verify vaccination or past-exposure status, directing those who are pregnant or immunocompromised to consult with their physicians, he said.

Do not name the person who has measles, cautioned Katherine Dudley Helms, an attorney with Ogletree Deakins in Columbia, S.C. "Even if it is not a disability—and we cannot assume that, as a general rule, it is not—I believe the ADA [Americans with Disabilities Act] confidentiality provisions cover these medical situations, or there are situations where individuals would be covered by HIPAA [Health Insurance Portability and Accountability Act]."

The employer shouldn't identify the person even if he or she has self-identified as having measles, Mavity noted.

Shea said that once the person is at home, the employer should:

  • Inform workers about measles, such as symptoms (e.g., dry cough, inflamed eyes, tiny white spots with bluish-white centers on a red background in the mouth, and a skin rash) and incubation period—usually 10 to 12 days, but sometimes as short as seven days or as long as 21 days, according to the CDC.
  • Inform employees about how and where to get vaccinations.
  • Remind workers that relatives may have been indirectly exposed.
  • Explain that measles exposure to employees who are pregnant or who might be pregnant can be harmful or even fatal to an unborn child.
  • Explain that anyone born before 1957 is not at risk. The measles vaccine first became available in 1963, so those who were children before the late 1950s are presumed to have been exposed to measles and be immune.

Employers may also want to bring a health care provider onsite to administer vaccines to employees who want or need them, Shea said.

"Be compassionate to the sick employee by offering FMLA [Family and Medical Leave Act] leave and paid-leave benefit options as applicable," she said.

When a Sick Employee Comes to Work Anyway

What if an employee insists on returning to work despite still having the measles?

Mavity said an employer should inform the worker as soon as it learns he or she has the measles to not return until cleared by a physician, and violating this directive could result in discipline, including discharge. A business nevertheless may be reluctant to discipline someone who is overly conscientious, he said. It may opt instead to send the employee home if he or she returns before being given a medical clearance.

The employer shouldn't make someone stay out longer than is required, Helms said. Rely instead on the health care provider's release.

SOURCE: Smith, A. (9 May 2019) "How to Respond to the Spread of Measles in the Workplace" (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/legal-and-compliance/employment-law/pages/how-to-respond-spread-measles-workplace.aspx


Background Screenings and Second Chance Employment - 3 Tips for Success

Nearly seven out of 10 companies reported that they conduct criminal background checks on all job candidates, according to a 2012 SHRM survey. Read this blog post from SHRM to learn more.


Today’s employers may choose to run background checks on job applicants for variety of reasons. Concerns about negligent hiring, verifying a candidate’s honesty and accountability, and other safety- or performance-related issues may all play a part in this decision. In fact, according to SHRM's 2012 survey, nearly 7 out of 10 companies report that they conduct criminal background checks on all job candidates.

Understandably, employers want to do everything they can to protect their businesses and to ensure (as much as possible) that they’re also protecting their employees. And while an interview is an important opportunity to learn about a job candidate’s character and experience, a background screen provides tangible and practical verification of a candidate’s past, and that is reassuring. What’s important to keep in mind is that background screens are most effective when they’re used judiciously and carefully. Here are a few suggestions to consider.

  1. Tailor background screens to search for information relevant to the specific responsibilities of the job. While it can be tempting to want to know all the information available about a candidate’s past, the ethical and legal use of background screens means that a motor vehicle report, for example, isn’t relevant for a candidate who won’t be driving as part of their job. Limiting searches to the information that is most relevant to the execution of the job functions will keep you in EEOC compliance and will yield more effective background screens.
  1. Use a professional background screening company to assist you. There are many excellent and affordable screening companies to choose from, and we at Dave’s Killer Bread Foundation have had great experiences in our work with Occuscreen, GoodHire, and Checkr, among others. A professional background screening company can help you get the most out of your background checks and can work with you to ensure you’re soliciting the right information for the right purpose. Additionally, quality background screening companies are able to verify information through court runners and other means, which improves accuracy and reduces the likelihood that you’ll see or use irrelevant data (arrest records not leading to convictions, for example).
  1. Remember to be consistent. If you have two or more applicants applying for the same job, you should be requesting the same information about them when you run their backgrounds. Varying types of job responsibilities and roles might require varying levels of inquiry, but if multiple candidates are applying for the same job with the same title, it’s important to keep your process consistent. This will help you avoid the appearance of discrimination or favoritism.

And remember, background screens may involve some level of technological or human error. The information provided from a background screen is a valuable tool to help you in your hiring decision, but it is only one tool. Thoughtfully integrating this information—with your intuition, your experiences with the candidate in the interview, and your willingness to suspend bias or assumptions about an applicant’s character based on their past—can help you to make the best hiring choice every time.

Have questions about how to proceed with a report’s findings? Many employers aren’t criminal code experts, and don’t have to be. Dave’s Killer Bread Foundation is here to help. Get in touch.

SOURCE: Martin, G. (16 April 2019) "Background Screenings and Second Chance Employment - 3 Tips for Success" (Web Blog Post). Retrieved from https://blog.shrm.org/blog/background-screenings-and-second-chance-employment-3-tips-for-success


Dave’s Killer Bread Foundation is the nation’s only nonprofit foundation dedicated to inspiring and equipping employers to embrace Second Chance Employment

This post is part of a series for Second Chance Month, which highlights the need to improve re-entry for citizens returning to society and reduce recidivism. One of the primary ways to do this is by providing an opportunity for gainful employment. To sign the pledge and access the toolkit with information on how to create second chances at your company, visit GettingTalentBacktoWork.org


E-Verify Is Down. What Do Employers Do Now?

What do employers do now that  E-Verify, the federal government's electronic employment verification system, is down? The system compares employee information with the DHS and Social Security Administration (SSA) records to confirm employment eligibility. Read on to learn more.


What are employers supposed to do now that E-Verify—the federal government's electronic employment verification system—has expired?

Funding and congressional authorization for the program ran out Dec. 22, 2018, as the government went into a partial shutdown after Congress and the White House could not agree on how to fund some agencies, including the U.S. Department of Homeland Security (DHS), which administers the system, for fiscal year 2019.

E-Verify compares information from an employee's Form I-9 to DHS and Social Security Administration (SSA) records to confirm employment eligibility. Employers enrolled in the program are required to use the system to run checks on new workers within three days of hiring them.

During the government shutdown, employers will not be able to enroll in E-Verify, initiate queries, access cases or resolve tentative non-confirmations (TNCs) with affected workers.

All employers remain subject to Form I-9 obligations, however. "Remember that the government shutdown has nothing to do with an employer's responsibilities to complete the Form I-9 [in a timely manner]," said Dawn Lurie, senior counsel in the Washington, D.C., office of Seyfarth Shaw. "Specifically, employees are required to complete Section 1 of the I-9 on or before the first day of employment, and employers must complete Section 2 of the I-9 no later than the third business day after an employee begins work for pay."

No Cause for Alarm

Lurie advised employers not to panic while E-Verify is down. "Employers will not be penalized as a result of the E-Verify operations shutdown," she said. "Employers will not be penalized for any delays in creating E-Verify cases. However, employers are reminded that they must continue to complete I-9s in compliance with the law, and when E-Verify becomes available, create cases in the system."

To minimize the burden on both employers and employees, DHS announced that:

  • The three-day rule for creating E-Verify cases is suspended for cases affected by the unavailability of the service. "Normally, the employer enters information from the I-9 into E-Verify within three days of hire, but that won't be possible while the system is unavailable," said Montserrat Miller, a partner in the Atlanta office of Arnall Golden Gregory. "DHS will provide a window of time to submit those held cases once service resumes."
  • The time period during which employees may resolve TNCs will be extended. The number of days E-Verify is unavailable will not count toward the days the employee has to begin the process of resolving a TNC. "Employers can't take any adverse action against a worker with a pending TNC regardless, shutdown or not," Miller said. Currently, an employee who chooses to contest a TNC must visit an SSA field office or call DHS within eight federal government working days to begin resolving it. This period will have to be extended because of the shutdown, she added.
  • Additional guidance regarding the three-day rule and time period to resolve TNC deadlines will be provided once operations resume.

Amy Peck, an immigration attorney with Jackson Lewis in Omaha, Neb., advised employers to keep track of all new hires with completed I-9s for whom there are no E-Verify queries due to the shutdown. She also recommended attaching a memo in a master E-Verify file tracking the days that the program was unavailable. "I've seen the discrepancy come up years later during an audit," she said.

"Once the system is back up, work with counsel on how much time employees have to resolve their TNCs," Peck said. "Someone receiving a TNC the day before the shutdown is a different case than somebody who had 10 days to resolve their TNC when the shutdown occurred. Those circumstances should be considered on a case-by-case basis."

Federal contractors with a federal acquisition regulation E-Verify clause should contact their government contracting officers to extend deadlines. "Federal contractors have a particular concern because nobody is supposed to be working who has not been verified through the system," Peck said. "People can be hired, but whether they are allowed to work on the contract before being run through E-Verify is a critical consideration that should be discussed with counsel."

Prepare for the Resumption of Service

Miller said employers should monitor the shutdown. "When it is over, log in to the system and see what instructions there are for creating and submitting queries," she advised. "There is an obligation to create those queries if you are enrolled in the program, even if enrolled voluntarily."

The backlog created as a result of the shutdown might have a significant impact on employers that process many E-Verify cases and specifically on the HR staff and other team members in charge of the process.

"Not all employers will be able to push all their cases through at once when the shutdown ends," Miller said. "If everyone did that, the system would crash. DHS will provide instructions on how to submit queries. Employers will be asked why the query is being submitted after the required three days. In the past, 'Government Shutdown' was one of the options in the drop-down menu."

Peck reminded employers that the loss of E-Verify does not mean there is a prohibition against hiring. "Companies should continue to hire as they need," she said.

SOURCE: Maurer, R. (3 January 2019) "E-Verify Is Down. What Do Employers Do Now?" (Web Blog Post). Retrieved from https://www.shrm.org/ResourcesAndTools/hr-topics/talent-acquisition/Pages/EVerify-Outage-What-Do-Employers-HR-Do.aspx


Bringing personal services to work

Are you looking to incorporate onsite benefits in your employee benefits package? Read this blog post from SHRM to learn more about the different onsite benefits employers are offering.


Onsite employee benefits that go beyond big-ticket items like health clinics, gyms and child care centers are now within the reach of many employers.

When Cassandra Lammers, vice president of total rewards at Audible Inc., a publisher of audio books in Newark, N.J., wanted to encourage employees to schedule regular dental visits, she focused on the large percentage of the firm's employees who are part of the Millennial generation. These younger workers tended not to use their dental benefits, claims records showed.

To address the situation, Lammers began researching mobile dental services, looking for a vendor that would provide dental care onsite during the workday. That was not as easy as it sounded. "Most of these services are designed to help the elderly and the disabled who are not able to get to a dentist's office," she noted.

See also: 15 employee benefits on the rise

After many months of looking, Lammers connected with Henry the Dentist, a mobile dental office that parks its trailer at an employer's location for a few days to provide onsite dental services. The trailer offers state-of-the-art dental services and can serve three patients at a time.

The biggest selling points for Audible were the convenience for employees and the fact that all of the dentists were in-network providers for the company's dental plan, so audible does not have to pay for the service.

"We now schedule a few days each quarter to help employees get into a normal cycle for dental visits," Lammers said. The initial visit was scheduled to last only two or three days. However, employee demand for appointments was so great that the visit lasted six full days to serve 189 employees. Lammers expects to schedule five days per quarter going forward.

"The feedback from employees has been fantastic, and they love the convenience," she said.

Alexandria Ketcheson, marketing and brand director at Henry, said that under the company's current employment model "all our dentists are full-time employees of Henry," and that "a large part of our promise to our corporate clients is that their employees will see the same medical staff during every visit."

Fill'er Up

Onsite benefit programs should be designed to save employees time and to make their lives easier. Miami-based Carnival Cruise Line offers a range of onsite benefits to accomplish just that, including dry cleaning, a coffee shop and deliveries from a flower vendor every Friday so that employees can buy fresh flowers for the weekend.

"This is all part of our effort to be an employer of choice," said Tami Blanco, the company's vice president of shoreside human resources. "We focus on providing services that employees use or need regularly. Employees want to spend their time off with family, not running errands."

One of the more popular onsite benefits is access to Neighborhood Fuel, a service that comes to Carnival Cruise employees in South Florida and fills up their gas tanks in the parking lot while they are working.

See also: The Changing Landscape of Employee Benefits

By using a smartphone app, employees can request a fill-up, leaving the gas cap door ajar on their cars. Once the fuel truck completes the fill-up, the app sends an alert with the total cost of the gas.

So far, half of Carnival Cruise's Miami-based employees have signed up to use the service, and 75 percent of those employees say it is of great value to them, Blanco said.

Beware Upselling

When an employer offers any onsite benefit to employees, it comes with an implicit endorsement of the vendor's services, so it's important for employers to proceed with caution when choosing those vendors.

Carnival Cruise Line, for example, often offers new services to one group of employees as a pilot project to see if it is something the company wants to offer to all employees.

Before offering onsite dental care, Lammers not only read the reviews of the dental providers working for Henry the Dentist but also asked pointed questions about how the service ensures the safety of employees while they are walking to and from the mobile facility and while they are inside receiving treatment. "We also wanted to understand how they operate [and] how they interface with employees, ensure confidentiality, et cetera," said Lammers, who inspected the mobile dental facility personally.

See also: How millennials are shaping employee benefits

Once employees begin using any onsite service, employers should check in periodically to make sure employees are happy with the service and comfortable using it. For example, if employees feel a vendor is putting pressure on them to buy more or to upgrade, that's something an employer may want to address directly with the vendor so that employees don't feel pressured.

SOURCE: Sammer, J (5 July 2018) “Bringing personal services to work” (Web Blog Post). Retrieved from https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/bringing-personal-services-to-work.aspx


What to Know in the Immigration Debate Now: “Queen-of-the-Hill”?

What will be the fate of those who dream to come to America? Explore the immigration debate in this article from SHRM.


Immigration reform is filled with complexities.  Just to name a few are the politics, the body of law and policy and often the use of terms that only add confusion. During the 2007 immigration debate, I recall the term “clay pigeon” (a Senate floor procedure) confused even the experts.  Right now, the term that is turning heads is “Queen-of-the-Hill”. So why does it matter you ask? Well let me explain.

A bipartisan group in the House has called on leaders to consider a proposal for a "Queen-of-the-Hill" (most votes wins) immigration rule (H. Res. 774) and urge action to vote on a legislative solution for the Deferred Action for Childhood Arrivals (DACA) program. SHRM and CFGI are members of the coalition for the American Dream which issued a press statement in support of action.

A vote on this issue matters because earlier in the year votes in the Senate failed. Right now, 190 Democrats and 50 Republicans in the House (a majority of the House) support H. Res. 774 and a debate and vote on immigration DACA related proposals.  If Congress, could begin to move proposals forward there might be a chance (if even a small chance) to break the logjam on immigration reform.

Specifically, "Queen-of-the-Hill' is a House procedure that has not been used since 2015. The procedure would require separate votes and consideration of (four immigration) proposals on the House floor and members could vote in support of as many proposals as they want.  The proposal that receives the greatest number of votes would be adopted. If none of the proposals receive a majority-of-the-votes, then none of the proposals would be adopted.

The proposals that would get a vote under H. Res. 774 include:

  • The Securing America's Future Act (HR 4760), a bill that would allow DACA recipients to apply for three years of work authorization and deferred deportation that may be extended if they qualify. The bill also includes other provisions like mandatory E-Verify, historical limits to family sponsored green cards, a reallocation of visas to employment-based green cards and a new agricultural guest worker program.
  • The House DREAM Act (H.R. 3440), a bill that would allow DACA recipients and DACA eligible individuals to apply for work authorization and deferred deportation, legal permanent residence and a five- year path to citizenship if they qualify.
  • The USA Act (H.R. 4796), a bill that would allow for DACA recipients and DACA eligible individuals to apply for work authorization and deferred deportation and legal permanent residence if they qualify.
  • A yet to be unveiled bill from House Speaker Ryan (R-WI)

Whether there is any chance for success will be up to House leaders, as the House bipartisan group is asking leaders to support H. Res. 774.  However, the resolution may be far from successful. House Speaker Ryan (R-WI) has publicly stated he does not believe it makes sense to bring a bill through a process that only produces something that would get vetoed by the president. In this scenario, it is possible that any immigration bill that could pass the House might not make it through the Senate let alone find support from the president. 

Given, the president’s resistance to many DACA related proposals, perhaps in the end, he will be the “King” of this “Queen-of-the-Hill” strategy.

This article was written by Rebecca Peters of SHRM Blog on April 23rd, 2018.


The Cadillac Creep Will Impact Your Econo-Health Plan

How will the Cadillac tax effect you in the near future? From SHRM, get the details in this article.


As an HR Professional in 2010, I recall thinking, as I struggled to wrap my mind around the myriad of complex provisions included in the ACA, that the Cadillac tax was probably one provision that I didn’t need to concern myself with.  After all, it was years in the future and only applied to those other, richer plans, right?  Time for a fast forward reality-check. 

The Cadillac tax has been delayed in the past but is set to begin in 2022 on high-cost employer-sponsored health coverage.  It will tax health coverage that exceeds $10,200 for individual coverage and $27,500 for family coverage at the rate of 40%.  This includes contributions made by employers and employees toward health coverage premiums but not cost-sharing amounts such as deductibles, coinsurance or co-payments made when care is delivered. 

But, employers, like mine, have certainly not been idle during the last eight years.   We have continued to work to design health care plans that will attract and retain top talent while ensuring that coverage meets minimum value and affordability requirements mandated by the ACA.  All the while, health care costs, particularly driven by prescription drug costs, continue to climb.    Studies suggest that prescription drugs will continue to represent a larger portion of the overall health spending.   I have seen this firsthand with the employer-sponsored plans I manage where prescription drug costs may represent over 30% of total health claims spent.   

This leaves employers with some tough decisions to either reduce the benefits they offer to maintain a cost-effective plan that still meets minimum coverage and affordability standards or absorb additional costs.  And then, there’s the Cadillac creep. A monthly individual premium of $10,200 annually or $850 per month no longer seems far-fetched as I stare into a future where drug cost inflation rates outpace wage increases. 

I’m a proud member of the Society for Human Resource Management (SHRM), which encourages Congress to fully repeal the excise tax.  I support and join in SHRM’s advocacy efforts to defeat this tax because over 178 million Americans get their health care through employer-sponsored health plans.  We can’t afford to let the Cadillac creep impact employers and employees.

This article was written by Crystal Frey of SHRM Blog on April 20th, 2018.


5th Circuit Ruling Leaves DOL’s Fiduciary Rule in Limbo

 

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When the Dallas-based 5th Circuit Court of Appeals struck down the Department of Labor's (DOL's) controversial fiduciary rule on March 15, just two days after the Denver-based 10th Circuit upheld the same rule, it created a split among the circuits. As a result, the U.S. Supreme Court may eventually decide the rule's fate. In the meantime, President Donald Trump's administration continues to review its options.

"Pending further review, the [Labor Department] will not be enforcing the 2016 fiduciary rule," a DOL spokesman said in a statement to CNBC. Prior to the court decisions, Labor Secretary Alexander Acosta said that the DOL was considering public input about revising the regulation and, if necessary, will propose changes in consultation with the Securities and Exchange Commission and other regulators.

However, unless the fiduciary rule is definitively repealed or replaced, employers that sponsor 401(k) and similar defined contribution plans should continue to take it seriously and closely monitor their vendor arrangements, benefits advisors said. The Obama administration's regulation, formally known as Definition of the Term "Fiduciary"; Conflict of Interest Rule-Retirement Investment Advice, began taking effect in stages in June 2017.

The rule requires anyone being paid to give investment advice to retirement savers—whether to participants in a 401(k) or similar employer-sponsored plan or to those with individual retirement accounts (IRAs)—to follow the fiduciary standard of conduct under the Employee Retirement Income Security Act (ERISA). In other words, investment advisors can only make recommendations that reflect loyalty to the "best interests" of plan participants without regard to commissions and fees rather than investments that are just "suitable," and must disclose any potential conflicts of interest. Failure to do so means that advisors—and the plan sponsors that hire them—could face class-action lawsuits brought by participants and ERISA-violation penalties.

In the 5th Circuit ruling, a three-judge panel split 2-1 in vacating the rule where the court has jurisdiction—Texas, Louisiana and Mississippi. The court, in particular, held that the DOL went too far in extending the fiduciary standard to advice provided to IRA savers. "IRA plan 'fiduciaries,' though defined statutorily in the same way as ERISA plan fiduciaries, are not saddled with these duties, and DOL is given no direct statutory authority to regulate them," the majority opinion stated. Days earlier, in a March 13 decision, the 10th Circuit held that the fiduciary rule was the result of a sound regulatory process. "Relying on the record before it, the DOL could reasonably conclude that the benefits to investors outweighed the costs of compliance," the two-judge panel said.

—shrm.org