Voluntary benefits may become next target of ERISA lawsuits, with 12 filed since December 2025
Key points
- 12 voluntary benefits lawsuits have been filed since December 2025, according to PLANADVISER
- Complaints allege employers offered supplemental insurance without negotiating premiums or running an RFP; these are unproven allegations
- In September, a California federal judge ruled an employer's commissions and endorsement brought a supplemental disability policy within ERISA
According to PLANADVISER, 12 voluntary benefits lawsuits have been filed since December 2025. Several complaints allege that employers failed to negotiate lower premiums or run a request for proposals (RFP) before offering supplemental insurance. In September, a California federal judge ruled that an employer's receipt of commissions and fees, and its endorsement of a supplemental disability policy, brought the arrangement within the Employee Retirement Income Security Act (ERISA). These are allegations in complaints and have not been adjudicated.
What employers should do
- Review premium negotiation and RFP records for existing voluntary benefit products
- Assess whether broker commissions and employer endorsements may trigger ERISA obligations
Policy details
- Jurisdiction
- Federal
- Status
- Court ruling
- Effective date
- —
- Employers covered
- Employers offering voluntary insurance benefits (accident, critical illness, cancer, hospital indemnity)
- Official source
- Official source pending
Original report: 401ktv.com ↗Edited with AI assistance. Facts are based on official sources and original reports. For information only; not legal, immigration or insurance advice.