The Washington Report

July 17, 2024

Note to Subscribers

While we do our best to provide timely updates, it is possible that the information shared in the newsletter may change after our publication deadline.

Other HR/Employment

 

Spring 2024 Regulatory Agenda Released
On July 5, 2024, the Biden Administration released its Spring 2024 Unified Agenda of Regulatory and Deregulatory Actions, which provides an updated report on the actions federal departments and administrative agencies (e.g., the Department of Labor, Department of Treasury, Department of Health and Human Services, Pension Benefit Guaranty Corporation, etc.) plan to issue in the near and long term. The agendas include regulatory plans and priorities and provide a framework of activity expected throughout this year and ending in spring 2025. Departments and agencies may delay the release of regulations at any time, so it is important to note that projected timelines are estimates and may not be met by the date(s) indicated in the agendas.

A variety of regulations are scheduled to be issued in the months ahead potentially impacting health care, retirement, compensation, and employment. For additional information, please refer to the specific regulatory agendas.

The White House press release is available here.

The link to the current Unified Agenda of Regulatory and Deregulatory Actions (i.e., updated Regulatory Agendas and Plans, searchable by department and agency) is available here.

The complete Semiannual Agenda website is available here.

Aon Publications

 

District Courts Put Parts of 1557 Regulations on Hold Across U.S
Three U.S. District Courts have blocked the Department of Health and Human Services (HHS) from fully enforcing the most recent final nondiscrimination regulations issued by HHS under Section 1557 of the Affordable Care Act (the 1557 regulations). The federal court decisions apply in some cases only in certain states and in other cases only to certain parts of the 1557 regulations.

The Aon bulletin is available here.

SCOTUS Overrules Chevron Deference Doctrine—Employers Assess Impact on Regulation of Employer Health Plans
In a landmark decision on administrative law, the U.S. Supreme Court on June 28 struck down the Chevron doctrine of judicial deference to a regulatory agency’s interpretation of statutes the agency administers. In addition to its impact in other areas of the law, the Supreme Court’s decision in Loper Bright Enterprises v. Raimondo calls into question the extent to which agency regulations governing employer-sponsored group health plans will now be subject to more challenges in court.

While Loper did not involve employer group health plans and does not require employer plan sponsors to take any action, employers are assessing Loper for its possible effect on federal regulation of employer group health plans. This Aon bulletin discusses:

• The Chevron doctrine of judicial deference;
• The Loper decision; and
• The implications of Loper for regulation of employer group health plans.

The Aon bulletin is available here.

Aon Client Alert: A Post-Chevron World: What Does It Mean for Retirement Plan Sponsors and Fiduciaries?
On June 28, 2024, the U.S. Supreme Court issued a landmark decision in the cases of Relentless v. Department of Commerce and Loper Bright Enterprises v. Raimondo (collectively, the “Post-Chevron” decision). This decision overturns the Supreme Court’s prior 1984 decision in Chevron U.S.A. Inc. v. Natural Resources Defense Council, a doctrine often referred to as “Chevron deference.”

Under Chevron deference, if a federal statute was determined to be ambiguous, a reviewing court was generally required to defer to a regulatory agency’s interpretation of the statute, even if the court read the statute differently or had a different interpretation. With the overturning of Chevron deference, courts will still be able to consider an agency’s position, but now can no longer substitute the agency’s judgement for their own in determining the best interpretation of the law.

Aon’s Actuarial and Retirement Legal Consulting & Compliance teams have prepared a Client Alert (A Post-Chevron World: What Does It Mean for Retirement Plan Sponsors and Fiduciaries?) summarizing the Supreme Court decision and potential retirement plan implications.

The Aon Client Alert is available here.

Double Trouble—Programs Offering Tax Savings for Employers and Employees Face IRS Rules Against “Double-Dipping”
Just as “Seinfeld” lampooned the culinary rule against "double-dipping" potato chips, the Internal Revenue Service (IRS) has warned employers against benefit programs that offer employers and employees tax savings that, at first glance, appear too delicious to pass up. But like ranch dressing and George’s half-eaten “double-dipped” chip, these purported tax benefits—lower Federal Insurance Contributions Act and income taxes, increased take-home pay, nontaxable health care benefits—risk the wrath of onlookers, which, in this case, is the IRS.

This Aon bulletin discusses:

• How These Programs Work;
• IRS Rulings Against “Double-Dipping”; and
• What Employers Should Do.

The Aon bulletin is available here.