Section 305 of SECURE 2.0 added rules for self-correcting a new category of retirement plan errors under the Employee Plans Compliance Resolution System (“ECPRS”). Specifically, Section 305 allows an “eligible inadvertent failure” to be self-corrected at any time, even if the error is considered a “significant” operational error under EPCRS. Section 305 provides that the …
Both Employers and Participants Benefit from New IRS Guidance on Correcting Inadvertent Benefit Overpayments
Retirement plan administration mistakes require difficult conversations with participants, especially when the mistake involves an overpayment. Changes in the law, specifically, SECURE 2.0 and IRS Notice 2024-77, give plan fiduciaries additional flexibility when addressing overpayments. Overpayment of Matching Contributions Consider the case of a 401(k) plan with an employer matching contribution on the first 6% …
Employer-Provided Gifts: Taxable or Not?
As we approach the holiday season, many employers consider giving employees a gift as a token of appreciation. What employers may not consider is whether those gifts create taxable income to employees. Although gifts are generally not taxable to the recipient, this general rule does not apply to gifts given by an employer to an …
Hold Up, Wait a Minute: Judge Blocks Salary Threshold Increase and Rolls It Back to Pre-July 2024
On Friday, November 15, 2024, a federal judge blocked the U.S. Department of Labor’s Final Rule (29 CFR Part 541), which would have increased the salary threshold for the Fair Labor Standard Act’s (“FLSA”) “white-collar” overtime exemption, which was set to go into effect January 1, 2025. What Is the White-Collar Overtime Exemption? The FLSA generally …
Can an Expert Define and Determine What Constitutes Discrimination?
In employment discrimination cases, the parties often retain experts to opine about various aspects of the case. An expert may provide, for example, insight as to job performance issues or, in many instances, determine the nature and scope of an employee’s alleged damages. But can an expert determine if the employer’s conduct constituted “discrimination”? The …
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The Ultimate Holiday Party Planning Guide: HR Edition
There’s glitter on the floor after the party Girls carryin’ their shoes down in the lobby Candle wax and Polaroids on the hardwood floor You and me from the night before -Taylor Swift, “New Year’s Day” Glitter should be the only mess a company needs to clean up after a holiday party. Holiday party season …
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The Freedom—and Limits—of Political Speech in the Workplace
With the 2024 election quickly approaching, employers should expect an increase in political conversation and activity in the workplace. It is essential during political seasons for both employers and employees to understand how to navigate political speech and activity to maintain positive working relationships and overall productivity. Generally, public-sector employers have little flexibility to govern …
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Let’s Start at the Very Beginning – Drafting Job Descriptions to Minimize Risk
Too often, job descriptions remain unchanged for years, merely given a perfunctory review each time an employer needs to hire a new candidate before being quickly rubber-stamped and attached to the job posting. Job descriptions are easy to breeze by when employers conduct compliance reviews – they are not typically legally binding documents and are …
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Support for Temporary Employment Agencies: WSIA Changes Ahead
Temporary Employment Agencies (TEAs) should become familiar with a change to the Workplace Safety and Insurance Act, 1997 (“WSIA”)[1], which creates a new classification, 001281, added to Class L. Traditionally, for premium setting with the Workplace Safety and Insurance Board (WSIB) under the WSIA, TEAs report and pay premiums for labour provided based on their …
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The Michigan Supreme Court Expands Public Policy Causes of Action for Retaliatory Discharge
Under Michigan’s Occupational Health and Safety Act (“MiOSHA”), employers may not “discharge an employee or in any manner discriminate against an employee because the employee filed a complaint” regarding the employer’s unsafe working conditions, among other things. MCL 408.1065(1). Any employee who “believes that he or she was discharged or otherwise discriminated against by a …