Ninth Circuit Vacates ERISA Penalties Against Netflix

In Zavislak v. Netflix, Inc., No. 24-4156, 2025 WL 2717422 (9th Cir. Sept. 24, 2025), the Ninth Circuit decided a case concerning an ERISA plan beneficiary’s request for plan documents under Section 104 of ERISA, 29 U.S.C. § 1024(b)(4). The panel affirmed the district court’s conclusion that Netflix was not required to disclose certain claims administration and internal documents but vacated the lower court’s imposition of statutory penalties against Netflix.

Plaintiff M. Zavislak was a beneficiary of Netflix’s employee health plan through his spouse. In early January 2021, Zavislak mailed Netflix a letter requesting plan documents. Due to pandemic-related disruptions—most employees were working remotely—the company’s benefits manager did not receive the request. After receiving no response, Zavislak followed up on February 11, 2021, by contacting Netflix’s registered agent. Netflix’s counsel responded shortly thereafter, and by February 24, 2021, Zavislak had received seven governing plan documents. However, Netflix did not provide its claims administration agreements (with Collective Health, Anthem, Delta Dental, and Vision Service Plan) or nine other internal “ancillary documents.” Believing that Netflix had not fully complied with ERISA, Zavislak filed suit in March 2021, seeking both penalties for untimely production and an injunction compelling disclosure of the additional documents. See Zavislak v. Netflix, Inc., No. 5:21-CV-01811-EJD, 2024 WL 2882564 (N.D. Cal. June 7, 2024).

The district court (Judge Edward J. Davila, N.D. Cal.) issued findings of fact and conclusions of law in January 2024. The court determined Netflix had furnished all documents required under ERISA Section 104 and was not required to provide contracts with third-party administrators or internal business records. Although Netflix ultimately provided the governing plan documents, its February 24, 2021 disclosure came more than 30 days after Zavislak’s January 4, 2021 request. This delay violated Section 104’s timing rules. Taking into account COVID-19 disruptions and Department of Labor guidance suspending certain deadlines, the court declined to award the maximum penalty of $110/day. Instead, it assessed $15/day from January 4 to February 24, 2021—a total of 51 days, resulting in $765 in penalties. The court rejected Zavislak’s request for broader injunctive relief and denied Netflix’s arguments to eliminate penalties entirely.

On appeal, Zavislak sought an injunction requiring production of the CAAs and ancillary documents, while Netflix cross-appealed the penalty award. The Ninth Circuit affirmed that Netflix was not required to produce the CAAs or ancillary documents. Citing Hughes Salaried Retirees Action Committee v. Administrator of the Hughes Non-Bargaining Retirement Plan, 72 F.3d 686 (9th Cir. 1995) (en banc), the court reiterated that Section 104 requires disclosure only of documents that inform participants of their rights, obligations, and benefits—not contracts governing relationships between the employer and third-party administrators. The Ninth Circuit vacated the $765 penalty award. It reasoned that Department of Labor disaster relief orders extended ERISA disclosure deadlines during the pandemic, excusing delays so long as fiduciaries acted in good faith. Because Netflix furnished the required documents by February 24, 2021, before the March 1, 2021 relief deadline, and there was no evidence of bad faith, the panel concluded there was no Section 104 violation and thus no basis for penalties.

This decision reinforces the Ninth Circuit’s narrow interpretation of Section 104, limiting disclosures to documents directly relevant to participants’ understanding of their benefits and procedures. It also highlights the role of COVID-19 disaster relief orders in excusing compliance delays, where plan administrators act in good faith and provide documents as soon as practicable.