Workforce Bulletin

What You Need to Know

• The Trump Administration has shifted away from Biden-era rules related to certain investments, like alternative asset investments, ESG, and cryptocurrency in 401(k) plans.
• Plan fiduciaries still need to proceed with caution.

On June 18, 2025, in the case of United States v. Skrmetti, the Supreme Court of the United States (SCOTUS) upheld Tennessee’s ban on gender-affirming care for minors, concluding that the law (titled Prohibition on Medical Procedures Performed on Minors Related to Sexual Identity, Senate Bill 1 (SB1)) does not violate the Equal Protection Clause of the Fourteenth Amendment of the U.S. Constitution.

In a 6-3 opinion authored by Chief Justice Roberts, the Court affirmed the decision from the 6^th Circuit Court of Appeals, which held that under the rational basis review, SB1 does not discriminate on the basis of sex for purposes of equal protection. Employers should be aware of certain considerations following this decision.

On July 4, 2025, there were more than hot dogs and fireworks. President Trump signed the One Big Beautiful Bill Act (OBBB), a comprehensive law that implements several of the administration’s tax, health, defense, and energy policy initiatives. This followed a flurry of activity earlier in the week in which the U.S. Senate narrowly voted to approve a substitute amendment to the OBBB. The Senate version resembles a prior version of the bill approved by the U.S. House of Representatives on May 22, 2025, but with certain key changes. All citations in this post are to the Senate provisions.

Below, we provide a summary of this legislation’s notable provisions that will directly impact employee benefits and executive compensation.

However, the law is sweeping and broader than the provisions noted here. Other, more contentious provisions in the OBBB, related to Medicaid funding cuts and efforts to decrease enrollment in the Affordable Care Act Marketplace Exchange plans could indirectly cause increased enrollment in employer-sponsored plans.

“ERISA – you’ll need a lawyer for that.” Our practice group’s tagline is meant to be a shorthand for the alphabet soup of laws that apply to employee benefits, including the Employee Retirement Income Security Act (ERISA). Employee benefits compliance has many traps for the unwary and is ever evolving. Below, we have provided a primer on current issues of importance in the employee benefits area to help in-house attorneys identify potential risks, mitigate them, and know when to call an outside ERISA lawyer.

1. What Is Old Is New: Get Your Health Plan Governance in Order

Employers that sponsor self-funded health plans have a host of complicated obligations. There are greater potential legal, regulatory, and fiduciary risks than in years past with managing health plans because of increased congressional legislation, increased Department of Labor (DOL) focus on group health plan compliance, and increased group health plan litigation, often by the same plaintiffs’ firms that have been suing 401(k) plans in fee litigation the past 20 years or more.