CounterPunch Exclusives

CounterPunch Exclusives

Labor Department Rules Will Prevent Workers From Suing Employers That Put Their Retirement Savings at Risk

On March 30, the Department of Labor (DOL) released its proposed regulations to implement President Trump’s Executive Order (EO) allowing employers to include private equity, private credit funds, crypto, and all manner of risky alternative assets in defined contribution retirement plans — mainly 401(k) plans — without worrying about employees suing them over high fees or poor performance. The President released EO 14330, “Democratizing Access to Alternative Assets for 401(k) Investors,” in August 2025. It instructs the Department of Labor and the Securities and Exchange Commission to develop “safe harbors” that will protect employers from being sued by employees who believe that their employer inappropriately allowed high fee or risky investments in their retirement accounts.

Access to workers’ nest eggs has long been a goal of the private equity industry. It has lobbied hard for this protection for employers as it wants to tap into the $9 billion in workers’ 401(k) accounts. ERISA, the Employee Retirement Income Security Act of 1974, has strict requirements for retirement account investments. Employers have a fiduciary responsibility for assuring that these investments are prudent, and can be sued by workers for including retirement assets that don’t meet this standard.

Workers have successfully sued their employers for breach of fiduciary duty for failing........

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