United States: Employee Benefits & Compensation

Deere & Co. faces a legal challenge from former employees who claim the company's severance program falls under ERISA regulations, while the agricultural equipment manufacturer argues that its one-time lump-sum payment structure exempts it from federal oversight. The case hinges on whether a simple calculation-based severance payment constitutes an employee benefit plan requiring ongoing administration, with potential implications for how companies structure their separation agreements.

The Allegheny County Board of Health has unanimously approved a revised paid parental leave bill that would provide 12 weeks of paid leave to eligible employees. The proposal, which underwent significant modifications from its original 18-week version, now moves to the Allegheny County Council for final consideration and potential approval.

New York City's Department of Consumer and Worker Protection secured a landmark $131.5 million settlement with DoorDash, marking the largest worker settlement in the city's history and the largest involving food delivery workers nationwide. The agreement provides over $115 million in direct compensation to more than 260,000 delivery workers who were underpaid, unpaid, or paid late, while establishing a comprehensive three-year compliance monitoring program.

While many employers use bonuses to reward deserving employees for various reasons, those bonuses can create complications under the Fair Labor Standards Act (FLSA) if not handled properly. More specifically, employers must properly include bonuses paid to nonexempt employees when calculating overtime.

The Centers for Medicare and Medicaid Services is expanding its ACCESS Model to include four new chronic condition tracks—heart failure, COPD, substance use disorders, and tobacco cessation—beginning spring 2027. This outcomes-based payment initiative allows participating organizations to offer between-visit interventions coordinated with existing care teams, while major health plans covering 165 million Americans have pledged to align their programs with the ACCESS framework.

Secretary of Labor Keith Sonderling had been serving as acting secretary of labor and previously held senior DOL roles, including deputy secretary and leadership positions in the WHD.

California's Assembly Bill 1697 delays the implementation of stay-or-pay prohibitions until January 1, 2027, while expanding exemptions for discretionary bonuses, financial services recruiting payments, and paid time off advances. Employers now have a one-year reprieve to review existing arrangements and develop compliant alternatives before the law takes effect.

These actions do not eliminate H-1B sponsorship, but they increase the importance of reviewing an employee’s location, the nature of the proposed filing, and the employer’s recent or anticipated workforce activity before proceeding.

Federal workplace policy developments include House passage of legislation barring convicted child predators from union leadership, a congressional hearing examining union political activities, and new Department of Labor opinion letters clarifying Fair Labor Standards Act compliance on meal breaks, nonprofit volunteers, and tip pooling.