Understanding the Fiduciary Risks of Employee Health and Benefit Plans

LOS ANGELES - April 3, 2025 - PRLog -- The Numbers Behind HR Fiduciary Liability

The financial and legal risks tied to employee benefits management are increasing, and recent statistics highlight just how serious the issue is:

• 40% of employers are unaware of their fiduciary responsibilities – Nearly 40% of employers do not fully understand their fiduciary duties under ERISA, putting them at risk of liability.
  Source: SHRM
• $1.3 billion in fiduciary liability settlements in 2023 – Companies paid over $1.3 billion in settlements due to ERISA-related lawsuits in the past year, reflecting an increase in fiduciary litigation.
  Source: Forbes
• 61% of HR professionals say compliance is their biggest challenge – More than half of HR professionals cited staying compliant with benefits regulations as their top concern, surpassing talent retention and recruitment.
  Source: Business Insider

The Hidden Liabilities HR Leaders Face

"HR leaders and benefits administrators do not just juggle spreadsheets and policies. They hold real financial and legal responsibility for employee health plans. If they mismanage funds, fail to act in employees' best interests, or don't comply with regulations, they can be personally liable. Laws like ERISA in the U.S. make it clear: ignorance is not a defense. Yet, many HR teams don't fully grasp the risk until they're in hot water."

– Roy L. Kaufmann, President, Attorney & Civil Litigator at Servicemembers Civil Relief Act Centralized Verification Service (http://servicememberscivilreliefact.com/)

The Role of Flexibility in Employee Well-being

"One of the most effective strategies I implemented for promoting employee health and well-being is incorporating flexible work schedules and encouraging regular outdoor breaks. Gardening and landscaping can be physically demanding work, so I've found that giving my team the freedom to take short, restorative breaks to stretch, hydrate, or simply enjoy a quiet moment in nature keeps them energized and focused."

– Andrew Osborne, Owner of Ozzie Mowing & Gardening (https://ozziemowingandgardening.com.au/)

HR leaders must go beyond compliance to prioritize employee well-being. Companies that promote flexibility and wellness see greater productivity and satisfaction. Andrew Osborne advocates for flexible schedules and outdoor breaks to enhance engagement, reduce absenteeism, and improve performance.

Embedding a Culture of Flexibility

Flexibility isn't just beneficial for physically demanding jobs—it's a strategy that can improve overall workplace health across industries. Ronald Osborne, Founder of Ronald Osborne Business Coach (https://ronaldosborne.org/), explains how embedding a culture of flexibility transformed employee well-being in businesses he has coached.

"I promote employee well-being by fostering flexibility and autonomy at work. Early on, I noticed employees struggled with work-life balance, so I prioritized outcomes over rigid schedules. Drawing from my MBA in finance and leadership experience, I implemented a hybrid model with clear goals. Employees set their hours and include breaks for exercise or mindfulness, supported by wellness perks like fitness memberships and mental health resources."