Labor & Employment Law Daily Wrap Up, DOL NEWS—Labor Department announces developments in enforcement actions, training and education campaigns, (May 7, 2026)

By Jonathan Anderson

One employer was cited for wrongfully suspending a whistleblower who reported safety concerns to federal authorities.

The Department of Labor (DOL) announced developments in two enforcement actions against employers, in addition to news about unrelated education and safety campaigns. The Employee Benefits Security Administration said a court ordered a health plan administrator to pay more than $1.3 million to restore losses to health plans after allegedly violating federal law. Separately, the Occupational Safety and Health Administration (OSHA) cited a railroad company for wrongfully suspending an employee who reported a train collision and safety concerns. Meanwhile, OSHA promoted its annual National Safety Stand-Down to Prevent Falls in Construction campaign. The Employment and Training Administration also issued a readout of a recent roundtable discussion about apprenticeships and announced the launch of a website designed to help people develop skills related to artificial intelligence.

Employee benefits ruling. A federal court has ordered Apex Management Group I Inc. and one of its owners to pay at least $1.3 million to restore losses to more than 700 employer health plans. The consent order and judgment come after the DOL alleged the company violated federal employee benefits law, according to the Employee Benefits Security Administration.

In May 2024, the DOL filed a complaint alleging that Apex and one of its owners operated a multiple employer welfare arrangement (MEWA) that provided essential minimum coverage health plans to hundreds of small employers, each of which established a separate self-funded Employee Retirement Income Security Act (ERISA) plan. In total, the MEWA covered more than 11,000 employees and beneficiaries.

The DOL in the complaint alleged that Apex and the owner acted as fiduciaries to each plan, violated their fiduciary duties, and engaged in prohibited transactions by causing the plan assets of some of the plans to be used to pay claims of other plans, co-mingling assets of unrelated plans, and causing plans to pay undisclosed and excessive compensation to Apex.

Under the court order, filed in the Northern District of Illinois, Eastern Division, Apex and the owner must pay $1.3 million to a settlement fund to restore plan losses, pay up to an additional $445,000 based on loss calculations, pay civil penalties, and direct additional funds held by third-party administrators be transferred to the settlement fund.

The court appointed an independent fiduciary to calculate losses and distribute funds to the plans, plan sponsors, and plan participants.

Apex and the owner are also barred from serving as fiduciaries or service providers to any ERISA plan unless they disclose all fees they receive and any fees they arrange for third parties. After the DOL filed its complaint, Apex reviewed and reduced the fees it charges the plans.

Additionally, Apex must require all third-party administrators responsible for invoicing plan sponsors to disclose each month: the amount of fees paid to Apex, the amount of fees paid to each service provider that Apex has arranged or contracted to receive fees, the total amount of fees paid to all service providers and brokers, all amounts from contributions that were remitted to a claims funding account that month, and the running balance of each plan’s claims funding account.

Whistleblower protection. OSHA has cited Canadian Pacific Kansas City Ltd. (CPKC) for violating the Federal Railroad Safety Act by wrongfully suspending an employee who reported a train collision and safety concerns to federal authorities.

A Kansas City-based employee reported to the Federal Railroad Administration (FRA) that a minor train collision occurred at Canadian Pacific’s Knoche Yard on August 11, 2024. The employee also conveyed safety concerns to the FRA. OSHA said the employee’s disclosures to the FRA were required by law.

In September 2024, the employee represented other workers involved in the collision during a disciplinary hearing as their union chairman and disclosed they reported the incident. As a result, CPKC investigated the employee and charged them with violating internal company policy for failure to notify management of the collision, despite not being present for it. The employee was subsequently suspended for 20 days without pay.

OSHA ordered CPKC to rescind the employee’s 20-day suspension and pay all back wages plus interest. The employer was also ordered to expunge the major rules violation and all references to the disciplinary action from the employee’s personnel record. CPKC must also pay compensatory and punitive damages.

Fall prevention campaign. OSHA promoted its annual National Safety Stand-Down to Prevent Falls in Construction campaign, which runs through May 8, 2026. The nationwide event focuses on preventing falls, the leading cause of fatalities in the construction industry.

OSHA said it would publish a list of events on its website identifying opportunities to participate locally. The campaign is open to organizations of all sizes and industries.

Apprenticeship roundtable. The Employment and Training Administration issued a readout of a recent roundtable discussion about apprenticeships, entitled “Building Pathways to Degree-Connected Registered Apprenticeships.”

The discussion was held with community college, university, and workforce-development leaders and focused on degree-connected registered apprenticeships.

AI literacy website. The Employment and Training Administration announced the launch of a website designed to help people develop skills related to artificial intelligence (AI).

The administration said the website is intended to provide tools and guidance to help organizations integrate AI skills into registered apprenticeship programs. The initiative builds on the objectives laid out in the DOL’s AI Literacy Framework released earlier this year. The portal is organized around three key areas: AI skills and literacy; training modules for specific occupations and industries; and options to integrate AI in registered apprenticeship programs.

Companies: Apex Management Group I Inc.; Canadian Pacific Kansas City Ltd.

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