Dear Littler: You alerted us to some wage & hour and leaves & benefits issues stemming from our “wandering workers” who have scattered across the country during the pandemic, yet continue to work for our Texas-based company....more
Executive Summary -
The COVID-19 pandemic required nearly every employer around the globe to take stock of its workforce, policies and practices, and adapt to a rapidly changing and unpredictable environment. COVID-19...more
In Stassi v. Commissioner, the United States Tax Court found that a settlement was not excludable from income as a personal physical injury because the taxpayer failed to demonstrate that her shingles was caused by her...more
On August 28, 2020, the U.S. Department of the Treasury issued guidance for employers with respect to the deferral of the employee portion of certain payroll taxes. This guidance stems from a presidential memorandum issued...more
In Notice 2020-46, the IRS explains how employees can forgo their paid time off balances to allow their employers to make donations to charities that are assisting individuals impacted by the COVID-19 pandemic....more
The IRS has changed its position and will allow employers to receive a tax credit for paying health care plan premiums for employees on furlough....more
One of the most enticing reasons to obtain a loan under the Paycheck Protection Program (PPP) is the potential for the loan’s forgiveness. The federal Coronavirus Aid, Relief, and Economic Security (CARES) Act authorized the...more
The Department of Labor (DOL) recently issued new guidance to states on the Short-Time Compensation (STC) program provisions (also known as “work sharing” or “shared work”) in the Coronavirus Aid, Relief, and Economic...more
On April 22, 2020, the Pennsylvania Supreme Court issued a decision affecting the classification of independent contractors for purposes of the state Unemployment Compensation Law (UCL)....more
The Department of Labor has clarified that gig workers qualify as “unemployed” under the Pandemic Unemployment Assistance (PUA) Program when they lose a significant amount of business because of COVID-19. ...more
Dear Littler: Our company is based in New York City, but since March 20 our employees have been teleworking because of the “stay at home” orders necessary to combat the spread of COVID-19. Most of our employees are working...more
On Sunday April 5, 2020, the U.S. Department of Labor (DOL) issued Unemployment Insurance Program Letter (UIPL) 16-20 to provide further guidance on Section 2102 of the Coronavirus Aid, Relief, and Economic Security (CARES)...more
On Saturday, April 4, 2020, the U.S. Department of Labor (DOL) issued Unemployment Insurance Guidance Letter 15-20 (UIPL 15-20) to provide further guidance to the states on the temporary expanded unemployment insurance...more
On April 2, 2020, the U.S. Department of Labor (DOL) issued new guidance on unemployment insurance (UI) for states responding to COVID-19, under the recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act....more
Enacted on Friday, March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (H.R. 748, the “CARES Act” or the “Act”) is intended to stimulate the U.S. economy in light of the COVID-19 pandemic....more
The U.S. Senate unanimously passed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) in the late hours of March 25, 2020. The bill provides various tax relief and loan provisions to assist businesses...more
In light of the recent coronavirus pandemic, many businesses will inevitably be forced to reduce employees’ hours and thus their compensation. As a result, employees may be eligible to file for partial unemployment benefits....more
On February 26, 2020, the IRS published proposed regulations implementing changes made by the Tax Cuts and Jobs Act of 2017 (TCJA) regarding the elimination of deductions for entertainment and the limitation on food and...more
2/28/2020
/ Business Expenses ,
Business Taxes ,
Corporate Counsel ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Meals-Gifts-and Entertainment Rules ,
Proposed Regulation ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Planning
Businesses with operations in California have begun to identify options and implement strategies for compliance with Assembly Bill (AB) 5, which imposes the ABC test for identifying whether a worker is an independent...more
10/30/2019
/ 1099s ,
ABC Test ,
Corporate Counsel ,
Corporate Restructuring ,
Employee Definition ,
Employer Liability Issues ,
Employment Tax ,
Freelance Workers ,
Gig Economy ,
Hiring & Firing ,
Income Taxes ,
Independent Contractors ,
IRS ,
Labor Regulations ,
Misclassification ,
Out-of-State Employees ,
Retroactive Application ,
Safe Harbors ,
State and Local Government ,
State Labor Laws ,
Tax Rates ,
Wage and Hour
On Friday, August 30, 2019, the California State Senate Appropriations Committee approved controversial legislation—Assembly Bill 5 (A.B. 5)—that would potentially reclassify millions of independent contractors as “employees”...more
9/4/2019
/ ABC Test ,
Dynamex ,
Employee Definition ,
Employer Liability Issues ,
Freelance Workers ,
Gig Economy ,
Governor Newsom ,
Hiring & Firing ,
Independent Contractors ,
Labor Regulations ,
Legislative Agendas ,
Misclassification ,
Pending Legislation ,
Regulatory Agenda ,
State and Local Government ,
State Labor Laws ,
Wage and Hour
Assembly Bill (AB) 5, currently pending in the California legislature, would impose the “ABC” test on California businesses and workers, dramatically altering the legal standards applied in evaluating whether a worker is an...more
8/9/2019
/ ABC Test ,
Dynamex ,
Employee Definition ,
Employer Liability Issues ,
Gig Economy ,
Hiring & Firing ,
Independent Contractors ,
Legislative Agendas ,
Misclassification ,
Pending Legislation ,
Risk Assessment ,
State Labor Laws ,
Wage and Hour
The United States Department of Labor has provided good news for gig economy employers, telling one unidentified “virtual marketplace” employer that its service providers are properly classified as independent contractors....more
5/6/2019
/ Department of Labor (DOL) ,
Economic Realities Test ,
Employer Liability Issues ,
Fair Labor Standards Act (FLSA) ,
Gig Economy ,
Independent Contractors ,
Misclassification ,
Online Platforms ,
Opinion Letter ,
State Labor Laws ,
Wage and Hour
Dear Littler: My company recently hired a new employee who is giving our human resources department some pushback on submitting his W-4. The HR manager says the employee mentioned something about not being subject to income...more
On March 4, 2019, the U.S. Supreme Court held in BNSF Railway Co. v. Loos that a railroad’s payment to an employee for work time lost due to an on-the-job injury is taxable compensation under the Railroad Retirement Tax Act...more
3/6/2019
/ Appeals ,
Back Pay ,
BNSF Railway ,
BNSF Railway Company v Loos ,
Compensation ,
Employer Liability Issues ,
Federal Employers’ Liability Act (FELA) ,
Lost Wages ,
Non-Taxable Income ,
Railroad Retirement Tax Act (RRTA) ,
Remand ,
Reversal ,
SCOTUS ,
Severance Pay ,
Taxable Income ,
Wage and Hour ,
Workplace Injury
On September 24, 2018, the IRS issued updated guidance in Notice 2018-71 (the Notice) on Internal Revenue Code section 45S, the business tax credit for employers that provide paid family and medical leave (the Credit). ...more