Changes in the Wind – U.S. Department of Labor Issues New National Enforcement Project List

The U. S. Department of Labor, Employee Benefit Security Administration (DOL) just announced changes to its national enforcement projects for 2026. The DOL is tasked with enforcing the Employee Retirement Income Security Act (ERISA) which governs employer-sponsored benefit plans. If your company sponsors an employee benefit plan for your employees, you should pay attention to this announcement.

The DOL’s national enforcement projects change periodically but this announcement makes some significant changes. One area that was removed from the priority list is employee stock ownership plans (ESOPs). ESOPs have been a national enforcement priority of the DOL for decades. In some jurisdictions, a newly established ESOP was guaranteed a DOL investigation within the first few years of existence. The same was true of ESOP transactions – once they were disclosed on the Annual Report, Form 5500, the DOL would come knocking at the door to investigate the ESOP transaction. With a new leader at the helm, the DOL has now removed ESOPs from its priority list. This does not mean that ESOPs will not be subject to investigations but it is no longer a stated DOL priority. Under prior leadership, the DOL had been regulating ESOPs by investigation and litigation rather than issuing guidance on ESOP issues. This is welcome news for companies that sponsor ESOPs for their employees but only time will tell if this is truly a significant change in investigation focus.

The updated enforcement list includes ongoing investigation focus on cybersecurity, mental health parity, benefit distributions, retirement plan asset management, surprise billing and criminal abuse of benefit plans that receive employee contributions. The announcement also notes that the DOL will lessen its focus on missing participants following its establishment of the Retirement Savings Lost and Found database but will continue to root out abusive multiple employer welfare arrangements (MEWAs) nationwide. Plan sponsors should review their employee benefit plans often for compliance with ERISA so that any potential issues can be identified early and resolved prior to any DOL involvement. Contact any member of our Employee Benefits Team to help you navigate compliance issues.

US Department of Labor’s Employee Benefits Security Administration updates national enforcement projects for employee benefit plans | U.S. Department of Labor

Sherry P. Porter

Sherry Porter has more than twenty years of experience in the employee benefits field.  She began her legal career as an investigator for the U.S. Department of Labor Employee Benefits Security Administration, where she conducted investigations to ensure compliance with ERISA and related laws and negotiated compliance agreements to correct violations.  Ms. Porter regularly advises clients on legislation affecting employee benefit plans, such as HIPAA privacy and security rules and the Patient Protection and... Read More