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Labor Department Wins Appeal Over Diverted Benefit Contributions

Original: DOL Prevails in Circuit Court Appeal Over Diverted Contributions, Unpaid Health Claims

The US Department of Labor has prevailed in a circuit court appeal concerning a case involving diverted employee benefit contributions and unpaid health claims. The ruling reinforces the department's enforcement authority under ERISA to recover funds that employers diverted from benefit plans and to secure payment of owed health claims for participants.

Why now: The appellate ruling matters for employers and plan fiduciaries because it strengthens federal enforcement of employee benefit and health claims obligations.

US Department of Labor

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