Employee Benefits Law Blog
On January 15, 2026, the U.S. Department of Labor’s Employee Benefits Security Administration (“EBSA”) announced a major update to its national enforcement projects for fiscal year 2026. The changes are intended to focus enforcement resources on areas that pose the greatest risk to plan participants and beneficiaries, while reducing emphasis on minor or technical compliance issues.
According to the Department of Labor, this is the most significant revision to EBSA’s enforcement framework in recent years. The goal is to make investigations more efficient and responsive and to prioritize serious misconduct and abusive practices.
1. FY 2026 Enforcement Focus Areas
Under the updated framework, EBSA investigators will prioritize the following areas:
- Cybersecurity practices affecting retirement and health plans
- Barriers to mental health and substance use disorder benefits
- Errors or misconduct related to benefit distributions
- Retirement plan asset management and fiduciary oversight
- Surprise medical billing compliance
- Criminal misuse of employee contributory benefit plans
Although not designated as a national enforcement project, EBSA will continue its long-standing focus on identifying abusive Multiple Employer Welfare Arrangements (“MEWAs”) and preventing fraudulent MEWA operators from expanding across state lines.
2. Areas Receiving Reduced Emphasis
EBSA removed Employee Stock Ownership Plans (ESOPs) from the national enforcement project list and will reduce its focus on missing participant investigations following the launch of the Retirement Savings Lost and Found Database.
3. What This Means for Plan Sponsors
While the announcement does not change existing legal requirements, it provides insight into where EBSA enforcement activity is most likely to occur in 2026. Employers and plan fiduciaries should review cybersecurity controls, mental health parity compliance, distribution procedures, and fiduciary processes related to plan assets and employee contributions.
EBSA also emphasized the importance of timely and complete responses to investigator requests, noting that cooperation can help resolve matters more efficiently and lead to better outcomes for participation.
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Our Employee Benefits Practice Group is available to assist employers with compliance reviews and EBSA enforcement matters:
ShareholderAmanda Dernovshek is an employee benefits attorney in our Business and Tax group. Her practice focuses on issues related to employee stock ownership plans (ESOPs), non-qualified deferred compensation plans, qualified ...
ShareholderJulie is an experienced attorney with over a decade of practice focused on employee benefits and retirement plan compliance. She advises employers, plan sponsors, and fiduciaries on the design, operation, and governance of ...
ShareholderWith a business-minded approach, and service-oriented delivery, Mindi helps clients navigate challenges and solve problems in the areas of employee benefits law and health care law. Mindi has spoken and written extensively on ...
