Joanne Roskey Quoted on EBSA Enforcement Shift in Bloomberg Law
Subtitle
"Enforcement Priorities Herald Deeper Shift at Benefits Regulator"
Bloomberg Law
Joanne Roskey, former Deputy Associate Solicitor at the U.S. Department of Labor (DOL), Plan Benefits Security Division (PBSD), commented on the Employee Benefits Security Administration's (EBSA) revamped enforcement priorities that reflect a more targeted, resource-driven approach, shifting scrutiny to high-impact areas such as cybersecurity, surprise billing, and access to mental health benefits, while easing off aggressive Employee Stock Ownership Plan (ESOP) litigation. She emphasized that the changes still carry meaningful compliance implications for employers, even as the agency narrows its focus. With cybersecurity now a national enforcement priority, Roskey noted that employers' reliance on outside vendors will require greater contractual flexibility to respond to evolving guidance. Heightened enforcement means cybersecurity can no longer be treated solely as a vendor issue, particularly as EBSA builds on its 2021 guidance on risk assessments and fraud prevention.
Roskey also said new enforcement projects related to surprise billing and mental health parity may shift focus back to employers in these areas, despite their use of third-party administrators. "There's work to be done, and employers would be smart to take a proactive review of how their plans and their service providers are proceeding in the highlighted areas," she said. EBSA's limited staffing is also shaping enforcement strategy. "EBSA is not a huge agency and its resources in terms of manpower and otherwise have been significantly reduced in the last year," she noted.