The Employee Retirement Income Security Act (ERISA) sets standards on voluntary retirement and health plans offered to employees in the private sector. While it doesn’t require employers to offer healthcare, retirement, disability, or welfare plans, for those that do, it dictates what must be included in these plans.
Failure to comply with the basic standards of ERISA can result in hefty fines and penalties. Participants will also have grounds for civil suits against their employer if the information was not appropriately and clearly disclosed. With such heavy penalties, employers must make themselves aware of ERISA law to avoid falling afoul.