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How an M.L.S. Degree Helps You Manage Legal Aspects of Employee Benefits

HR teams need a robust understanding of employee benefit law, basic legal compliance, and risk management.
How an M.L.S. Degree Helps You Manage Legal Aspects of Employee Benefits

By Miami Law Staff Report

Hiring and retaining top talent calls for a multidimensional HR strategy—one that balances recruitment, onboarding, workplace culture, professional development, compliance, and compensation. Among these responsibilities, crafting competitive benefits remains pivotal: one recent survey found that 60 percent of employees rank benefits as “very important” to overall job satisfaction. From health coverage and retirement plans to flexible scheduling and paid time off, thoughtfully designed benefits support employee well-being and reinforce every other element of HR’s mission.

Yet designing those packages requires careful cost analysis and close attention to an evolving web of federal and state regulations, making legal fluency a must for today’s HR professionals.

Understanding the Legal Framework of Employee Benefits in the U.S.

Across the United States, robust legal frameworks govern the benefits that employers offer their workers. These laws have been enacted at both the federal and state levels, so HR teams need to stay on top of the regulations that apply to them as they assemble benefits packages that will help them compete in their respective industries.

Overview of Federal and State Laws Governing Employee Benefits

At the federal level specifically, a handful of laws relate to such employee benefits as healthcare, workers' compensation, and disability. Most notably, these include:

  • The Affordable Care Act (ACA)- This law requires employers with 50 or more full-time employees to offer some form of affordable healthcare coverage. Failure to comply with this law could result in serious penalties. There are very few exceptions for businesses with more than 50 full-time employees.
  • The Family and Medical Leave Act (FMLA) - This law applies to employers with 50 or more employees within a 75-mile radius and entitles eligible workers to up to 12 weeks of unpaid, job-protected leave in a 12-month period for certain family and medical reasons, such as the birth of a child. Although these benefits are unpaid, they do provide workers with job security in the event that they need to take time off for medical reasons.
  • The Employee Retirement Income Security Act (ERISA)- Under this law, employees (and their beneficiaries) in the private sector are protected by certain rights related to pension, health, and other welfare benefit plans. The purpose of this law, which was established in 1974, is to protect workers' financial interests as they relate to their retirement and health insurance plans.
  • The Consolidated Omnibus Budget Reconciliation Act (COBRA)- COBRA generally covers employers with 20 or more employees and requires them to offer the option of continuing group health coverage (at the employee’s expense, up to 102 percent of the premium) after a qualifying event such as job loss. Coverage lasts up to 18 months for most terminations and up to 36 months for other events (e.g., divorce or loss of dependent status).

In addition to federal employee benefits law, HR teams also need to be aware of any specific benefits regulations at the state level. This may include laws related to health insurance, unemployment insurance, and workers' compensation.

The Role of ERISA in Employee Benefits Management

Of the federal regulations listed above, the Employee Retirement Income Security Act is one of the most complex yet important laws HR teams must comply with regarding employee benefits management and retirement plan compliance.

According to the Department of Labor, "ERISA is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans."

More specifically, ERISA sets minimum standards for most private-sector retirement and welfare benefit plans, establishes fiduciary duties for plan managers, imposes reporting and disclosure obligations, and provides a process for participants to file grievances and appeals. This includes specific reporting and disclosure requirements and the establishment of processes for employees to file grievances and appeals regarding benefit decisions.

In establishing and maintaining employee benefits packages, HR teams and other business decision-makers in the private sector need to ensure that they always remain in compliance with ERISA requirements.

The Impact of an M.L.S. Degree on Employee Benefits Management

With so many laws and regulations to be aware of when managing employee benefits plans, HR teams need a robust understanding of employee benefit law, basic legal compliance, and risk management. For those working in HR and looking to enhance their knowledge in these law-adjacent areas, pursuing a Master of Legal Studies (M.L.S.) degree can be a smart choice.

Enhancing Legal Compliance and Risk Management

In an M.L.S. program, HR professionals can complete coursework in risk management and legal compliance to better understand the skills and processes necessary to avoid non-compliance penalties and legal issues related to employee benefits. An M.L.S. program with a dedicated HR track may also include coursework in employment law, covering the nuances of employment contracts, wage protections, healthcare coverage, and related benefits.

Navigating Complexities in Health Insurance and Retirement Plans

In an M.L.S. degree program, HR professionals will also have the opportunity to explore coursework specific to human resource compliance in critical areas such as compensation and benefit plan administration. Through this coursework, HR employees can explore the strategic importance of compensation and benefits in achieving organizational goals while sharpening the skills needed to design and manage these systems confidently.

Key Legal Issues in Managing Employee Benefits

Aside from simply knowing the ins and outs of federal and state regulations regarding employee benefits, HR teams must also know how to navigate the nuances associated with addressing disparities and handling disputes related to healthcare benefits regulations. Moreover, understanding employee benefits law is crucial for proactively identifying compliance gaps and resolving disputes effectively.

Addressing Disparities and Discrimination in Benefit Plans

HR teams must regularly review employee benefits plans for fairness and equity, ensuring that current benefits do not disproportionately benefit some groups of employees more than others. When disparities are discovered, HR professionals have an obligation to work diligently to redesign benefits plans with the needs of all employees in mind.

In doing so, HR professionals may need to consider not just legal requirements and state/federal regulations, but employee feedback as well.

Handling Litigations and Disputes in Employee Benefits

Even when employee benefits packages are carefully researched and curated, disputes and even litigation may still occur. When this happens, human resources teams must be prepared to handle conflicts confidently and professionally. This includes, primarily, being aware of some of the most common areas where employee benefits disputes may arise. These often include:

  • Disability benefits
  • Health insurance benefits
  • Claims related to ERISA

When disputes and litigation occur, HR teams play a critical role in responding to formal complaints promptly and knowing their respective legal obligations moving forward. This may include meeting with legal counsel, as well as maintaining detailed documentation of all matters related to the dispute. Depending on the dispute, HR teams may consider negotiations or mediation with the opposing party to resolve the matter as efficiently as possible while preserving the company's reputation.

Strategies for Effective Employee Benefits Management with an M.L.S. Degree

The world of employee benefits can be complex, but there are some strategies and best practices that HR professionals can follow to maintain compliance and stay competitive in their respective industries.

Implementing Best Practices for Compliance and Efficiency

All human resources professionals are encouraged to stay on top of changing laws and mandates related to employee benefits, especially at the state and federal levels. As new laws and regulations are enacted, HR teams' responsibilities can evolve over time. That said, these professionals must always work with the most up-to-date information to avoid non-compliance issues.

HR teams are also encouraged to review their benefits packages regularly and perform routine audits and compliance checks on retirement plans, healthcare plans, and other facets of a company's benefits package. Regular audits ensure retirement plans compliance and help identify areas where legal or procedural improvements may be necessary. This, in addition to establishing clear communication with employees regarding benefits packages, can help HR teams avoid disputes and litigation while continuing to offer benefits that suit workers' needs.

Leveraging Technology in Employee Benefits Administration

These days, HR teams also have a lot of technology at their disposal when it comes to managing employee benefits packages. This includes talent management software, which can streamline many aspects of benefit plan administration to save HR professionals valuable time. These tools can also be useful for tracking benefits, generating reports related to benefit use, and even performing routine compliance audits on different aspects of a benefits package.

New AI-driven platforms can assist HR professionals in staying compliant with evolving healthcare benefits regulations.

Navigate the Complexities of Employee Benefits with an M.L.S. Degree

HR teams are under a great deal of pressure to craft lucrative benefits packages for employees. Still, with legal and compliance risks on the line, these professionals must also use caution to avoid disparities and even litigation down the road. HR departments can ensure compliant and competitive employee benefits packages through strategic best practices and the adoption of suitable technology.

An online Master of Legal Studies degree from the University of Miami School of Law can help you build your knowledge and expertise in specific areas of HR compliance, including employee benefits and compensation. You can even opt for your online M.L.S. curriculum with a dedicated HR track to further specialize your skills — so get in touch to request more information or apply for this program today.

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