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Against a backdrop of increasing lawsuits challenging employee benefits plans, employers should take greater oversight of their vendors and shore up the processes that guide execution of their fiduciary responsibilities, one attorney told HR Dive.
One sign of the litigation trend can be seen in the number of class-action lawsuits alleging violations of the Employee Retirement Income Security Act, or ERISA. A Bloomberg Law analysis published last month found that nearly 70 such claims had been filed during 2026’s first quarter, a figure almost double the rate observed during the same time frame in 2025 and 2024.
ERISA compliance can be a complicated function even without an uptick in lawsuits to worry about, especially given the role that vendors and third-party administrators play in benefits operations, said Anne Greene, partner at Saul Ewing. As plan fiduciaries, employers have several responsibilities under ERISA, and vendor oversight is a key component of fulfilling these duties.
Much of that work involves constant communication between the employer and the vendor or service provider, Greene said, and employers should enlist vendors with whom they are comfortable having discussions about investment decisions and similar areas.
