DOL Updates
Discussion
DOL Demands State Action on Unemployment Insurance Fraud
On June 17, 2026, the Department of Labor’s (DOL) Acting Secretary of Labor issued formal letters to governors of 53 states and territories demanding immediate action to “combat fraud, waste, and abuse within their unemployment insurance (UI) programs.” The announcement cited examples such as California’s $20 billion federal debt tied to UI mismanagement, New York’s estimated $2 million in daily fraud losses, and Illinois’s more than $320 million in improper payments. Working with the Office of the Inspector General, the DOL indicated that it will use “every available enforcement tool,” including withholding administrative funds from noncompliant states for the first time, and stated that additional guidance and directives will be issued to states in the coming weeks. Employers should monitor for state-level responses that may affect UI tax rates, audits, or claims administration in their jurisdictions.
DOL Confirms Trump Accounts Are Not Subject to ERISA
On June 17, 2026, the DOL issued Technical Release 2026-02 confirming that employer contributions to a child’s “Trump Account” (e.g., the newly established savings accounts funded with $1,000 federal deposits for eligible children) are not subject to Title I of ERISA. Employers may contribute up to $2,500 per year tax-free to an employee’s child’s account and may facilitate employee payroll-deduction contributions, but must remain neutral toward the program (e.g., no investment influence, no endorsement, no representation that it’s an employer-sponsored benefit) to avoid inadvertently triggering ERISA coverage. Employers considering offering this as a voluntary perk should coordinate with their benefits advisor to ensure the program is structured to stay outside ERISA’s scope.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2026 ManagEase