American workers have benefits protection under the Employee Retirement Income Security Act (ERISA). According to the U.S. Department of Labor, ERISA demands that employers remain transparent with their benefits packages, own fiduciary responsibility over the assets and provide a process for grievances and appeals, among other regulations. ERISA covers retirement plans and some non-retirement benefits like healthcare.
When employers neglect their ERISA responsibilities, you have grounds for a lawsuit. However, you might wonder what counts as a violation. See below for some potential ERISA violations that might occur at your workplace.
Unfair benefits denial
Unwarranted benefits denial count as an ERISA violation. Many denials happen because of clerical errors, insufficient evidence of health conditions, pre-existing conditions and contradictory evidence. However, this is not always your fault and might be the result of unethical business practices by your employer’s benefits provider. Even if the mistake is not malicious, it still counts as an ERISA violation.
Neglecting fiduciary responsibility
Breaching fiduciary responsibilities is another violation of ERISA regulations. Unfortunately, sometimes it is difficult to know when the fiduciary does not carry out their duties. For example, the fiduciary must act in the best interest of the beneficiaries and maintain a diversified asset plan for retirement packages. If you are not knowledgeable about investment accounts, you might not realize that you are the victim of an employee rights violation. Therefore, accountability and frequent audits are necessary for the safety of Delaware employees.
Some employers try to exploit their workers by leaving them in the dark. Many people do not know about their protections under ERISA. If you just learned about it, or wonder about your employer’s ethical conduct, start looking into your benefits plan today.