In response to the Supreme Court's decision in Cunningham v. Cornell, Chantel Sheaks, Vice President of Retirement Policy at the U.S. Chamber of Commerce, expressed concerns about potential consequences for employers. Sheaks said, "The Supreme Court’s decision in Cunningham v. Cornell will open the floodgates to frivolous litigation against every employer that sponsors an employee benefits plan and underscores the need for Congressional action, as ERISA was designed to encourage employers to offer benefit plans without the threat of excessive legal challenges."
She further referenced a previous case, Varity Corp. v. Howe, noting that Congress aimed to prevent a system where administrative costs or litigation expenses would deter employers from providing benefits. Sheaks emphasized, "Congress must uphold ERISA's original intent and protect employers from frivolous legal burdens that undermine their ability to provide benefits plans."
The statement reflects the Chamber's stance on maintaining the balance intended by ERISA (Employee Retirement Income Security Act) to encourage employers in offering benefits without facing excessive legal challenges.
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