Philadelphia, PA/ March 20, 2009 -- Littler Mendelson (Littler), the nation's largest employment and labor law firm representing management, is pleased to announce the arrival of shareholders Warren E. Fusfeld and Melissa B. Kurtzman to the firm’s Philadelphia office, both formerly of WolfBlock LLP.

Section 162(m) of the Internal Revenue Code (the "Code") generally limits the deductibility of compensation paid by a publicly traded corporation to its top executive officers (the "covered employees") to $1 million annually (the "Million Dollar Cap"). However, this limit will not apply to certain amounts that qualify as "performance-based compensation." Compensation attributable to stock options, stock appreciation rights ("SARs") and restricted stock grants may qualify as performance-based compensation if they meet certain requirements.

The Virginia Supreme Court has spoken again on the calculation of damages in a complex employment contract case. In Online Resources Corp. v. Lawlor, No. 120208 (Va. Jan. 10, 2013), the court addressed the expert qualifications required for the valuation of equity following the termination of the chairman and chief executive officer (CEO) ("executive") of a publicly-traded company, as well as the applicability of Delaware Corporations Law to related change in control (CIC) provisions. 

Background

The Internal Revenue Service recently issued proposed regulations under Section 457 of the Internal Revenue Code (the “Code”) that prescribe rules regarding deferred compensation plans sponsored by state and local governments and tax-exempt organizations.  These regulations relate primarily to the taxes imposed (under Code Section 457(f)) on the organization at the time the individual’s right to compensation vests, without regard to actual time of payment. 

As many employers are on the way to normalizing their business practices and re-engaging their employees, they should not overlook the many potential pitfalls in the administration of their retirement, health and welfare plans and their executive compensation arrangements. The risks of missteps are high, and include loss of tax-qualification of retirement plans, penalty taxes in connection with the Affordable Care Act’s (ACA) employer mandate rules, other IRS penalties, employee lawsuits and Department of Labor enforcement actions.

Laura Jousselin, Raoul Parekh and Stephan Swinkels discuss how European employers are responding to workplace changes, including AI and remote workplace demands from employees.

International Employment Lawyer

View (Subscription required.)

In February 2024, Poland’s government revealed that it is working on a comprehensive migration strategy for the years 2025-2030, advertised as a “responsible and safe” approach. The Ministry of Interior and Administration plans to spend the first half of 2024 conducting consultations to learn the preferences and expectations on migration and foreigners’ employment from various stakeholders, including the country’s biggest employers and their organizations, as well the trade unions.

April 1, 2024, will mark the beginning of new changes to USCIS form editions, filing fees, and direct filing addresses for many common immigration applications and petitions.

Of particular note are the upcoming changes to the filing requirements for the Form I-129 and Form I-140. With the H-1B lottery filing window set to open on April 1 for those selected in the FY 2025 H-1B lottery, it is imperative for visa petitioners to be mindful of the upcoming changes to avoid any unnecessary rejections of their potentially time-sensitive filings.

Filing Fees

To tackle illegal employment through subcontracting more effectively, the Flemish government improved chain liability, and introduced a duty of care. According to this duty of care, companies working with subcontractors in the Flemish Region are obliged to request certain data from these subcontractors (Cf. Decree of 27/10/2023).  

The Flemish Government's Implementing Decree was published in the Belgian Official Gazette on June 4, 2024, containing a checklist of the specific data to be requested. The decision will enter into force on January 1, 2025. 

On August 9, 2024, Illinois Governor JB Pritzker signed Senate Bill 0508 (“SB0508”) into law. This new law provides additional employment protections for individuals flagged by an employment eligibility verification system, including federal E-Verify, as having identification discrepancies. The new rights and protections created by SB0508 will take effect on January 1, 2025. This evaluation does not address whether the state law directly restricts or curtails the use of E Verify.

Deepti Orekondy and Jorge R. Lopez discuss the new rights and protections provided under lllinois’ new Senate Bill 0508, which provides additional employment protections for individuals flagged by an employment eligibility verification system.

SHRM

View (Subscription required)

Joy Rosenquist talks about some of the 30 new California laws she thinks are particularly significant for employers, including rules addressing pay transparency and off-duty cannabis use.

Law360 Employment Authority

View (Subscription required.) 

Jesús Lahera offers a detailed analysis of Spain’s Whistleblowing Directive and its impact on employers and employees.

Observatorio de RRHH

View

Protection of whistleblowers has been on the EU’s agenda for quite some time. Four years ago the EU issued the EU Whistleblowing Directive throughout its Member States.

UPDATE: This law took effect on February 8, 2024.

*  *  *

On August 31, 2021, the Office of Management and Budget (OMB) approved the Affirmative Action Program Verification Interface (AAVI) proposed by the Office of Federal Contract Compliance Programs (OFCCP) for the verification and upload of federal contractor affirmative action plans.

On February 1, 2022, the Office of Federal Contract Compliance Programs (OFCCP) presented a webinar on its new contractor portal through which covered contractors are being asked to certify whether they are meeting their requirement to develop and maintain annual affirmative action programs.

On March 31, 2022, the Office of Federal Contract Compliance Programs (OFCCP) issued a new Directive 2022-02.  Its stated purpose is to provide “transparency on OFCCP’s compliance evaluation policies and expectations for contractors”—but upon review, it appears to be a retreat from the standards of transparency, certainty, and efficiency that guided OFCCP from 2017 through 2020.  The new directive radically alters OFCCP’s approach toward compliance reviews and removes guardrails that had been put in place t

On August 18, 2022, the Office of Federal Contract Compliance Programs (OFCCP) issued a revised version of its Directive 2022-01 - Advancing Pay Equity Through Compensation Analysis, which was originally issued on March 15, 2022.

On August 19, 2022, OFCCP published a notice in the Federal Register for the stated purpose of advising employers that in response to a Freedom of Information Act (FOIA) request, it is planning to produce confidential information that is protected from disclosure pursuant to a statutory exemption.

We’re thinking about rolling out some IE&D initiatives – is that the same thing as an Affirmative Action Plan?

The short answer is no, and there is often confusion between an Affirmative Action Plan, or AAP, and more general and voluntary IE&D initiatives.

Alyesha Dotson and David Goldstein said the U.S. Supreme Court's ruling striking down affirmative action admissions policies at Harvard and the University of North Carolina offers an opportunity for employers to review their DEI programs and possibly establish more robust ones to help offset any effects of the ruling.

Law360

View (Subscription required.)

Alyesha Dotson weighs in on the 5th U.S. Circuit Court of Appeals’ ruling that private businesses with religious convictions don’t have to follow antidiscrimination laws that protect LGBTQ+.

SHRM Online

View (Subscription required.)

Alyesha Dotson says the U.S. Supreme Court’s decision on affirmative action may result in a less-diverse talent pool for employers in the coming decades. 

Forbes

View 

David Christlieb talks about the Supreme Court striking down affirmative action, as well as its decision in siding with an employee who refused to work.

WGN Radio

View

On August 24, 2023, the Office of Management and Budget approved a request from the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) to revise the “Itemized Listing” that OFCCP uses to collect information from federal contractors that are selected for supply or service audits. Among the changes that have been approved is a new requirement that audited contractors:

On December 14, 2023, the U.S. Department of Labor issued final regulations requiring the so-called “nondisplacement” of workers performing work on contracts for the federal government under the Service Contract Act (SCA). These regulations implement Executive Order 14055, “Nondisplacement of Qualified Workers Under Service Contracts,” President Biden signed on November 18, 2021.

On June 3, 2024, the U.S. Court of Appeals for the Eleventh Circuit granted a preliminary injunction prohibiting a venture capital fund from awarding grants based on race and gender. In reversal of the district court, the majority found the grant contest “substantially likely to violate” 42 USC Section 1981, a federal statute enacted as part of the Civil Rights Act of 1866 prohibiting private parties from racial discrimination in contracts.

The Connecticut Supreme Court recently adopted the U.S. Supreme Court's relatively narrow definition of “supervisor” for use in determining when employers are liable under the Connecticut Fair Employment Practices Act (CFEPA) for creating or failing to remedy a hostile work environment. The decision provides employers with clarity as the term is not defined by the CFEPA.

In July, the Third Circuit upheld a District of New Jersey decision to throw out a withdrawal liability assessment, finding the multiemployer pension fund was barred from pursuing its claim because the fund unreasonably delayed notification of a withdrawal liability assessment for 12 years.

Withdrawal Liability Assessments Under ERISA

On August 23, 2024, in Restaurant Law Center v. U.S. Department of Labor, the U.S. Court of Appeals for the Fifth Circuit vacated the U.S. Department of Labor’s so-called “80/20/30 Rule” that governed how tipped employees must be paid under the Fair Labor Standards Act (FLSA). The Fifth Circuit found the Rule was inconsistent with the text of the FLSA, and was arbitrary and capricious. 

David Jordan discusses the framework of the 80/20 tip-credit rule and its current impact on employers after the Fifth Circuit’s recent decision leaves a version of the rule up for questioning.

Bloomberg Law

View (Subscription required)

In the wake of the Supreme Court’s Loper decision, Jamie Spataro says existing regulations and standards that went through extensive rulemaking are ripe for being challenged.

Business Insurance

View (Subscription required)

Erin Webber talks about the importance of networks, mentors and benefits for women and working moms in law firms.

Denver Business Journal

View (Subscription required.)

Anne C. Sanchez and Briana M. Swift explain what employers need to know about the San Francisco Health Care Security Ordinance (HCSO), a local ordinance that requires employers to make certain healthcare expenditures on behalf of their San Francisco-based employees.

SHRM

View (Subscription required)

Chelsea Lewis provides recommendations for navigating the challenges that may arise when customers or clients refuse to abide by COVID-19 mandates.

ACC South Florida

View Article 

Erin Webber explains how a remote environment requires more leadership responsibility, skills and choices.

The American Lawyer

View Article (Subscription required.) 

Kyle Roseman and Lori Alexander examine a new law in Connecticut, Public Act 21-69, which bans employers from inquiring into the ages of prospective employees "on an initial employment application."

SHRM Online

View (Subscription required.) 

Stephanie Chavez offers advice to employers who are considering hiring individuals who have a criminal record.

Law360 Employment Authority

View  (Subscription required.)