The Internal Revenue Service (“IRS”) announced cost of living adjustments affecting dollar limitations for employer plans for tax year 2018. The IRS issued technical guidance detailing these items in Notice 2017-64, in addition to previous guidance in Rev. Proc. 2017-37 and Rev. Proc. 2017-58. Many of the limitations will change because the increase in the …
Retirement Plan Fiduciaries Can Save Money and Time by Paying Attention to the Details
Individuals responsible for the administration of a 401(k) retirement plan know that details, such as a participant’s date of hire or the number of hours worked, are important when determining an employee’s plan entry date. A lawsuit recently filed by the Department of Labor is a reminder that plan fiduciaries should also be paying attention …
Why Employers Should Avoid One-Size-Fits-All Handbooks
Every business is different and has different workplace issues and concerns that need to be addressed by the employee handbook. Because each workplace is so different, employee handbooks should be specifically tailored to address specific workplace concerns and issues, and also take into account federal, state, and local laws that govern that particular workplace. Application …
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Avoid Title VII Pitfalls in Parental Leave Benefits – Offer the Same Parental Leave to Male and Female Employees
Many companies offer parental leave benefits above and beyond the 12 unpaid weeks required by the FMLA. However, well-meaning employers can run afoul of federal anti-discrimination laws by providing different parental leave benefits to fathers and mothers. Title VII bans employment discrimination on the basis of sex. 42 U.S.C.A. § 2000e-2. But recently there has …
SURVIVAL IN THE IMMIGRATION CULTURE OF DELAY AND SOCIAL MEDIA MINING: ADJUSTMENT INTERVIEWS
With the recent change by U.S. Citizenship and Immigration Services (USCIS) to mandate in-person interviews for employment based adjustment cases along with changes to require the review of social media and to what constitutes a misrepresentation of intent at the time of a visa application or entry to the U.S., employers must recalibrate and intensify …
IRS Scrutiny of Plan Loans Increases, but IRS Provides Helpful Guidance
The Internal Revenue Service (“IRS”) has increased its level of scrutiny on the limitations imposed on participant loans from defined contribution retirement plans. Internal Revenue Code (“IRC”) Section 72(p) generally limits a participant’s plan loans to the lesser of: $50,000, or 50% of the participants vested account balance. Additionally, if the participant already took out …
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The Most Common Failing of Supervision is Failing to Document
A common failing of supervision and management in dealing with a problem employee is failing to document counsellings and verbal warnings issued concerning annoying or counterproductive, yet correctable, employee behavior. For example, tardiness, excessive breaks, excessive time away from working areas, etc. These behaviors, in and of themselves, are not serious enough to warrant discharge …
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Department of Labor Ends Appeal Over Salary Basis Test Giving Businesses Green Light to Continue Business as Usual
The U.S. Department of Labor (DOL) decided this week to end its appeal of a preliminary injunction issued by a federal court in Texas. That injunction had stopped implementation of the increased salary basis test regulations issued by the DOL in 2016. The DOL’s decision to end the appeal confirms the continued application of the …