EBSA Enforcement Updates: What Employers Should Watch in the Year Ahead
The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) recently released updated enforcement priorities for employee benefit plans. While these updates do not introduce new legal requirements, they offer valuable insight into where regulators are focusing their attention.
For employers and plan sponsors, understanding these priorities can help identify areas of potential risk and ensure benefit programs remain aligned with evolving expectations.
Here’s what you need to know.
What Are National Enforcement Projects?
EBSA uses National Enforcement Projects (NEPs) to guide investigative and compliance efforts across the country. These focus areas highlight the types of issues regulators believe present the greatest risk to plan participants and beneficiaries.
While the rules themselves have not changed, enforcement trends often signal where audits or regulatory reviews are more likely to occur.
In other words, NEPs provide a roadmap for where employers should pay closer attention.
Key Areas of Increased Focus
The updated enforcement priorities emphasize several important areas.
Cybersecurity and Data Protection
As benefit administration becomes increasingly digital, regulators are placing more attention on protecting sensitive participant information. Employers may see greater scrutiny around data security practices, vendor safeguards, and internal controls related to plan systems.
Mental Health and Substance Use Disorder Benefits
Access and parity requirements for mental health benefits continue to be a priority. Regulators are looking closely at whether plans provide equitable coverage compared to medical and surgical benefits.
This reflects a broader industry trend toward improving transparency and access in behavioral health coverage.
Participant Protection and Claims Administration
EBSA is also focusing on how plans manage participant benefits in practice, including:
- Timely processing of claims and distributions
- Accuracy in administration
- Proper handling of participant contributions
Operational processes, not just plan design, are likely to receive attention.
Fiduciary Oversight and Vendor Relationships
Employers may see increased examination of fiduciary practices, particularly how service providers are selected and monitored. Documentation, governance practices, and decision-making processes all play a role in demonstrating prudent oversight.
A Shift in Enforcement Priorities
Interestingly, EBSA has removed certain plan types, including Employee Stock Ownership Plans (ESOPs), from its national enforcement list. This suggests a shift in regulatory focus toward emerging risks like cybersecurity and participant protection rather than historical enforcement themes.
For employers, this highlights how compliance expectations evolve over time.
What This Means for Employers
The updated enforcement priorities do not change existing legal obligations. However, they do offer a helpful reminder that regulators often focus on how plans operate day-to-day.
Employers may want to consider:
- Reviewing cybersecurity practices and vendor controls
- Evaluating mental health parity compliance
- Confirming administrative processes align with plan terms
- Ensuring fiduciary decisions are documented clearly
Small operational improvements today can help reduce compliance risk tomorrow.
The Maddock Perspective
At Maddock & Associates, we view enforcement updates as an opportunity for proactive planning rather than reactive compliance.
Understanding where regulators are focusing allows employers to strengthen governance, improve transparency, and build more resilient benefits programs. The goal isn’t to add complexity. It’s to create clarity and confidence in how your plans operate.
If you have questions about how these enforcement priorities may impact your organization, we’re always here as a resource.
For more insights, compliance updates, and practical guidance, explore the article, "EBSA Updates National Enforcement Projects for Employee Benefit Plans" by Dawnielle Wright in this month’s Benefitting You newsletter.
