Supreme Court Decision on Employee Stock Ownership Plans: Employment Law Manual Updated

Author: Marta Moakley, XpertHR Legal Editor

The Supreme Court has issued a decision interpreting requirements regarding the administration of an employee stock ownership plan (ESOP) under the Employee Retirement Income Security Act of 1974 (ERISA). In Fifth Third Bancorp v. Dudenhoeffer, the Court eliminated the special presumption of prudence to which ESOP fiduciaries had been entitled.

As a result, the Employer Liability Concerns in Employee Management section of the Employment Law Manual has been updated.