Assistant Secretary of Labor Directs EBSA Staff to Implement Enforcement Priorities

The head of the Employee Benefits Security Administration ("EBSA,") Assistant Secretary of Labor Daniel Aronowitz, directed investigators and field officers to abide by new enforcement priorities and guiding principles.

In an internal Field Assistance Bulletin, Mr. Aronowitz established four guiding principles designed to make EBSA's enforcement fair, even-handed, responsive, and focused. These include: (i) prioritizing investigations that evidence the most egregious conduct or significant harm; (ii) not regulating through enforcement; (iii) requiring proper review by senior agency officials of all critical enforcement initiatives; and (iv) committing to timely and responsive enforcement.

Mr. Aronowitz emphasized that the agency will not second-guess the prudent discretionary judgment of fiduciaries. He said that investigators must focus their efforts on true bad actors whose actions cause significant harm to the benefits of workers and retirees. To maintain the agency's independence and integrity, he said that staff was prohibited from coordinating enforcement activities with plaintiff's lawyers pursuing private actions. To ensure consistency across all regions, Mr. Aronowitz stated that staff must notify leadership of significant actions, such as those involving novel legal theories or large monetary settlements, at least two weeks before any proposed action or deadline whenever possible.