On June 21, 2018, the Department of Labor (“DOL”) published an Association Health Plan Final Rule (“AHP Final Rule” or “Final Rule”) expanding the definition of “employer” under ERISA Section 3(5) for purposes of determining how an association health plan (“AHP”) can be considered a single-employer plan under ERISA. Our previous blog recaps the AHP Final Rule here.
Below is a timeline of the recent litigation surrounding the Final Rule. More information can be found on the DOL’s website.
11 states (New York, Massachusetts, California, Delaware, Kentucky, Maryland, New Jersey, Oregon, Pennsylvania, Virginia, and Washington) and the District of Columbia filed a complaint in the U.S. Federal District Court for the District of Columbia arguing, among other things, that the Final Rule’s expansion of “employer” was unlawful.
In State of New York v. United States Department of Labor, the United States District Court for the District of Columbia vacated essential portions of the “employer” definition under the AHP Final Rule.
The DOL responded to the ruling with an Initial Response.
In response to the ruling, the DOL, with the Department of Justice (“DOJ”), filed a Notice of Appeal to the district court’s ruling.
The Department of Labor’s Employee Benefit Security Administration (“EBSA”) released a policy statement regarding the status of AHPs formed in reliance prior to the district court’s ruling—below are three important takeaways from the statement:
The information and content contained in this blog are for general informational purposes only, and does not, and is not intended to, constitute legal advice.
