Workforce Bulletin

“ERISA – you’ll need a lawyer for that.” Our practice group’s tagline is meant to be a shorthand for the alphabet soup of laws that apply to employee benefits, including the Employee Retirement Income Security Act (ERISA). Employee benefits compliance has many traps for the unwary and is ever evolving. Below, we have provided a primer on current issues of importance in the employee benefits area to help in-house attorneys identify potential risks, mitigate them, and know when to call an outside ERISA lawyer.

1. What Is Old Is New: Get Your Health Plan Governance in Order

Employers that sponsor self-funded health plans have a host of complicated obligations. There are greater potential legal, regulatory, and fiduciary risks than in years past with managing health plans because of increased congressional legislation, increased Department of Labor (DOL) focus on group health plan compliance, and increased group health plan litigation, often by the same plaintiffs’ firms that have been suing 401(k) plans in fee litigation the past 20 years or more.

As featured in #WorkforceWednesday®: This week, we cover the striking down of abortion protections for workers and LGBTQ harassment guidance, as well as the beginning of a brief EEO-1 reporting season (concluding on June 24).

The New York Retail Worker Safety Act (the “Act”) went into effect  earlier this week, on  June 2, 2025. As we outlined in our recent blog post, the law requires covered retailers to provide certain safety measures for retail store workers, including implementing a written workplace prevention policy and conducting training on the policy. The New York State Department of Labor (NYSDOL) has now provided guidance and materials on its website.

New Materials

The NYSDOL guidance includes model materials that employers can use or reference when creating materials required under the Act. The model materials include a model workplace violence prevention policy, an interactive video training program, a text version of the training program, and frequently asked questions (FAQs).

With Memorial Day in the rearview mirror and the month of June upon us, many companies and organizations throughout the country are preparing to kick off the summer by welcoming an incoming cohort of summer interns.  Internship programs are a win-win for both employers and students: they enable employers to identify future talent and provide students valuable work experience and training.  That said, employers choosing to offer such programs should take care to structure them properly to avoid any risk of liability under applicable federal and state wage and hour laws.  Keep reading to learn the key wage-hour compliance issues and best practices for hosting interns this summer.

Do I have to pay my interns?

Most likely, yes—at least unless the internship is one where the intern mainly shadows and observes but performs little to no productive work.  At least under U.S. Department of Labor Wage and Hour Division (WHD) guidance, internships generally are presumed to constitute an employment relationship under the federal Fair Labor Standards Act (“FLSA”)—and, therefore, an employer must pay wages to its interns—unless the internship satisfies the “primary beneficiary test.”

On May 19, 2025, the U.S. Department of Justice (DOJ) announced a new Civil Rights Fraud Initiative that will leverage the federal False Claims Act (FCA) to investigate and litigate against universities, contractors, health care providers, and other entities that accept federal funds but allegedly violate federal civil rights laws.

The initiative will be led jointly by the DOJ Civil Division’s Fraud Section and the Civil Rights Division—with support from the Criminal Division, federal civil rights agencies, and state partners. 

The initiative implements President Donald Trump’s Executive Order 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” (January 21, 2025), directing agencies to combat unlawful discrimination through the FCA, and complements Attorney General (AG) Bondi’s February 5 memorandum, “Ending Illegal DEI and DEIA Discrimination and Preferences.”

As featured in #WorkforceWednesday®: This week, we explore how key changes introduced by President Trump’s Executive Order 14281, “Restoring Equality of Opportunity and Meritocracy” (“EO 14281”), raise important questions for employers navigating compliance with varying federal, state, and local laws.

EO 14281 poses significant challenges for employers because it seeks to limit disparate impact liability but clashes with established state and local regulations and laws, such as New York City’s law regarding the use of automated employment decision tools. This tension underscores the increasing complexity of managing artificial intelligence (AI)-driven decision-making in the workplace amid shifting legal standards.

On May 20, 2025, Equal Employment Opportunity Commission (EEOC) Acting Chair Andrea Lucas announced that the 2024 EEO-1 Component 1 data collection is now open and will close on June 24, 2025. This gives covered employers just five weeks to file.

Overview of EEO-1 Reporting Obligations

The EEO-1 Component 1 Report, also known as the Employer Information Report, is a mandatory annual filing that captures workforce demographic data. Covered private-sector employers with 100 or more employees, and certain federal contractors with 50 or more employees meeting specific criteria, must submit demographic workforce information categorized by job classification, race/ethnicity, and sex. The data is used by the EEOC and, in years past, the Office of Federal Contract Compliance Programs (OFCCP) to support enforcement of federal anti-discrimination laws.

Hold your horses—Maryland just added a few more furlongs to its race toward a paid family leave. On May 6, 2025, Governor Wes Moore signed House Bill 102 (the Amendment), which again pushes back the start date for Maryland’s Family and Medical Leave Insurance Program (FAMLI). This latest delay came as no surprise, given Maryland Department of Labor’s (MDOL) proposal earlier this year to extend the FAMLI implementation dates, because of the “high degree of instability and uncertainty for Maryland employers and workers” created by recent federal actions.

Dates to Begin Contributions and Use Leave Benefits

As we previously discussed, FAMLI will be funded through contributions from employees and employers with 15 or more employees. Although the Amendment does not alter FAMLI’s funding model, the required payroll deductions, previously scheduled to start on July 1, 2025, will now begin on January 1, 2027, and employers will remit the first payment to the state’s FAMLI trust fund in April 2027. The Maryland Secretary of Labor also now has until May 1, 2026, to set the contribution rates for 2027, and then until November 1st to designate the contribution rate for each subsequent calendar year.

On May 9, 2025, Governor Hochul signed a budget bill into law that includes an amendment (“the Amendment”) to the New York Labor Law (NYLL). This Amendment took immediate effect, applies to pending and future actions, and dramatically changes the relief employees can seek for first-time violations the pay frequency provisions for “manual workers” found in NYLL Section 191.

The Amendment substantially reduces potential damages from 100% liquidated damages to lost interest on delayed payments for first-time violations of the NYLL’s frequency of pay requirements where employers otherwise paid manual workers’ wages on regular pay days, no less frequently than semi-monthly. For future violations, liquidated damages will only be available for a second or subsequent violation if there is a finding and order by the New York State Department of Labor (“NYS DOL”) or court of competent jurisdiction of a prior violation for employees performing the same work.  

Generational shifts in the workplace bring unique challenges and opportunities for employers striving to build productive and engaged teams.

In this one-on-one conversation, Epstein Becker Green attorney Jeff Landes joins George Whipple to explore strategies for managing and motivating the emerging workforce, with a particular focus on “Gen Z” employees. Jeff examines how organizations can adapt to generational expectations, including fostering transparency, providing meaningful feedback, and supporting mental health and wellness initiatives.

The discussion also addresses the evolving dynamics of hybrid and remote work, underscoring the importance of consistent performance management, clear communication, and innovative accommodations. From creating inclusive environments to navigating requests for flexible schedules, Jeff offers practical advice for handling the complexities of a modern workforce while maintaining operational efficiency.

Listen now to gain actionable ideas for workforce development and learn how to create a workplace culture that aligns with both employee needs and business goals.