The Employee Benefits Security Administration (EBSA) made major changes to its enforcement priorities on January 15, 2026. The agency removed Employee Stock Ownership Plans (ESOPs) from its national enforcement project list and shifted focus to cybersecurity threats and mental health parity.
This marks the first major policy change under EBSA’s new leadership. Daniel Aronowitz, who now heads the agency, announced an “even-handed, responsive approach” to enforcement instead of aggressive litigation against employers. According to Bloomberg Law, the overhaul reflects a strategic pivot toward modern workplace risks.
ESOPs are no longer a top enforcement target. The agency also reduced its focus on missing participants to free up resources for what it calls “higher-impact areas.” EBSA officials say the shift will help protect employee benefit plans under the Employee Retirement Income Security Act (ERISA) more effectively.
Cybersecurity is now a central concern. With more plan data stored digitally, EBSA wants to ensure retirement and health plans are protected from hackers and data breaches. The Department of Labor stated that cyber threats to plan participants are growing and require immediate attention.
Mental health parity is also a priority. EBSA will investigate whether health plans provide equal access to mental health services compared to medical services. This aligns with federal laws requiring parity in coverage.
EBSA recovered $1.4 billion in fiscal year 2024, according to the Department of Labor. That includes:
- $742 million from 514 civil investigations
- 161 criminal convictions or guilty pleas
- 12 fiduciaries removed from plans
- Improved compliance procedures for 48 plans
The agency also runs the Voluntary Fiduciary Correction Program (VFCP), which allows plan sponsors to self-correct violations without penalties.
Plan sponsors should review their cybersecurity measures and mental health coverage now. EBSA’s enforcement projects guide which violations will face investigation. Companies that don’t comply could face civil penalties, lawsuits, or criminal charges.
The changes come as EBSA prepares its budget strategy for fiscal year 2026. The agency’s congressional budget justification highlights the need for modernized enforcement tools to address emerging threats.
Missing participants and ESOPs aren’t completely ignored, but they’re no longer top priorities. EBSA says it will still handle complaints and major violations in these areas on a case-by-case basis.
Aronowitz’s leadership signals a shift from aggressive enforcement to a more balanced approach. Experts say this could reduce litigation risk for employers, but only if they stay compliant with EBSA’s new focus areas.
Workers and retirees are affected throughout their careers by EBSA’s enforcement. The agency has broad powers to investigate plan administrators, fiduciaries, and service providers. Compliance assistance is available through EBSA’s regional offices for those who need help understanding the new priorities.
For more details on EBSA’s enforcement activities, visit the official enforcement page.
