This week’s notable decision is Wilson v. Safelite Grp., Inc., No. 18-3408, __F.3d__, 2019 WL 3000995 (6th Cir. July 10, 2019), where the Sixth Circuit answers the question of what constitutes an employee pension benefit plan under ERISA. At issue is a deferred compensation plan for executive employees that the district court determined to be an employee pension benefit plan under 29 U.S.C. § 1002(2)(A)(ii) and not a bonus plan exempted from ERISA under 29 C.F.R. § 2510.3-2(c). Analyzing the plain text of ERISA and the bonus plan regulation, the Sixth Circuit affirmed the district court’s decision.
Continue Reading Sixth Circuit Finds that Deferred Compensation Plan for Executive Employees is an Employee Pension Benefit Plan
Court Holds that Detrimental Reliance Is Not Needed for Class-Wide Relief and Certifies ESOP Class
Good morning, ERISA Watchers! Now that USA has just won its fourth FIFA Women’s World Cup title, I’m bringing you more good news in this week’s notable decision: Cunningham, et al. v. Wawa, Inc., et al., No. 2:18-cv-03355-PD (E.D. Pa. July 2, 2019). In Cunningham, the court granted Plaintiffs’ motion to certify a class of Employee Stock Ownership Plan (“ESOP”) participants. In their ten-count complaint, Plaintiffs claim that Defendant Wawa violated ERISA in several ways by amending the ESOP in a manner which took away their right to hold Wawa stock through age 68 and forced them to sell their shares at an unfair price. Plaintiffs moved to certify a class and two subclasses of over one thousand participants who were adversely impacted by the amendments.
Continue Reading Court Holds that Detrimental Reliance Is Not Needed for Class-Wide Relief and Certifies ESOP Class
Court Finds that Wage/Benefit Ordinance for Hotel Workers Is Not Preempted by ERISA
Hello, ERISA Watchers! Since Wednesday’s mid-week report, there were not any more exciting circuit court decisions. Today, I want to highlight a preemption decision out of my backyard in California Hotels and Lodging Association v. The City of Oakland, No. 19-CV-01232-WHO, 2019 WL 2617057 (N.D. Cal. June 26, 2019). In November 2018, Oakland voters passed Measure Z which asked:
Shall the measure amending Oakland’s Municipal Code to: (1) establish workplace protections and minimum hourly wage of $15 with benefits or $20 without benefits, increasing annually with inflation, for employees of Oakland hotels with 50 or more guest rooms; (2) authorize administrative enforcement standards for hotel and non-hotel workers; and (3) create City department to administratively enforce Oakland’s employment standards for hotel and non-hotel workers, be adopted?
Continue Reading Court Finds that Wage/Benefit Ordinance for Hotel Workers Is Not Preempted by ERISA