ERISA is a set of guidelines established to protect workers who are provided benefits by their employers. If your company has a benefits package for employees, it is very important that you abide by these guidelines. An Orange County business lawyer should be consulted if you are not sure that your company is in compliance.
The Employment Income Security Act was enacted in 1974 to establish set standards for the way companies implement health, retirement, and other benefits. The purpose was to ensure that businesses fairly administer the benefits they provide. What this means to your business is that failure to comply can result in a lawsuit. For this reason, it is important to work with an Orange County business lawyer as you draw up plans to provide benefits.
It should be noted that ERISA does not require employers to provide benefits to workers. Moreover, the standards apply only to private entities. Companies that are under government control are not covered.
What ERISA Requires
ERISA governs the following:
Ensure that the benefits plan is adequately funded
- Protect against unfair implementation of the plan
- Require businesses to develop written policies for filing and processing of claims
- Oversee the conduct of health plans
- Require that businesses provide full disclosure of plan specifics to employees
- Require businesses to provide detailed reports of their plans to the federal government
The Consolidated Omnibus Budget Reconciliation Act (COBRA) was added in 1985 to provide employees leaving the company with continued health insurance at a personal cost. The Health Insurance Portability and Accountability Act (1996) provides additional protections to this end.
For Further Information
If you have further questions about ERISA and how it affects your business, or have another business law concern, call anOrangeCountybusiness lawyer at Daily Aljian, LLP for a consultation at 949-861-2524.