The U.S. Department of Labor (DOL) has proposed increasing the annual salary threshold for white collar employee exemptions to overtime under the Fair Labor Standards Act (FLSA). Under the DOL proposal, the overtime salary threshold would increase from $35,568 to $55,068, with automatic increases every three years. The revised standard would apply to all fifty states and U.S. territories, except American Read More
D.C. Federal Court Judge Dismisses 401(k) Provider’s Challenge to DOL Cryptocurrency Guidance
A D.C. federal court judge dismissed a 401(k) provider’s lawsuit challenging the U.S. Department of Labor’s (DOL) guidance concerning cryptocurrency investments. In his ruling, the judge found that DOL guidance was not subject to judicial review, and the 401(k) provider lacked standing to file suit. However, the judge also found that the relief the 401(k) provider requested, or invalidation of the DOL guidance and an Read More
EEOC Adopts Strategic Plan for Fiscal Years 2022 – 2026
The U.S. Equal Employment Opportunity Commission (EEOC) has announced the adoption of its strategic plan to cover fiscal years 2022 – 2026. The main focus of the new strategic plan is to increase public access to the EEOC and increase resources for agency investigations. In its strategic plan, the EEOC plans to devote additional resources to training staff to identify, investigate, and enforce systemic Read More
Guidance on Section 603 of the SECURE 2.0 Act Concerning Catch-Up Contributions
The Internal Revenue Service (IRS) has issued Notice 2023-62, which gives guidance on Section 603 of the SECURE 2.0 Act concerning catch-up contributions. The Notice delays the requirement in Section 603 for highly compensated individuals to make catch-up contributions on a Roth basis – with no pre-tax option – to qualified retirement plans effective January 1, 2024. Instead, the Notice establishes a two-year Read More
IRS Releases 2024 ACA Affordability and Premium Tax Credit Determinations Indexing Adjustments
The Internal Revenue Service (IRS) has released 2024 indexing adjustments to the Affordable Care Act (ACA) percentages. These percentages are critical to coverage under the ACA. As a result, large employers should pay close attention to these adjustments because failing to offer affordable coverage as defined under the ACA could result in costly employer-shared responsibility penalties. Under the ACA, the required Read More
PWFA Proposed Regulations Published
President Joe Biden signed the Pregnant Workers Fairness Act (PWFA) into law at the end of 2022. The law requires employers with fifteen or more employees to provide reasonable accommodations to qualified workers or applicants with known limitations related to pregnancy, childbirth, or related medical conditions. The provisions in the law build and expand upon Title VII of the Civil Rights Act and the Americans with Read More
Reviewing Executive Compensation as Due Diligence in Acquiring a U.S. Company
As a company conducts due diligence as part of its plans to acquire a U.S. company, it should review the executive compensation of the company being acquired. This review not only allows a better understanding of the compensation structure but may uncover any liabilities or compliance issues that might affect the purchase price in the transaction. Compensation information is necessary to properly draft appropriate Read More
EEOC Settles Landmark AI Discrimination Workplace Suit
The U.S. Equal Employment Opportunity Commission (EEOC) has settled its first discrimination lawsuit involving artificial intelligence (AI) in a New York federal district court. The EEOC and iTutorGroup filed a joint settlement, which provides that the tutoring company will pay $365,000 to resolve the charges against it. The EEOC alleged that iTutor’s AI hiring selection tool illegally screened out female applicants Read More
11th Circ. Upholds Denial of Severance Claim by Former CSX Exec
In a unanimous decision, the U.S. Court of Appeals for the Eleventh Circuit upheld a lower court’s decision denying a severance package for Bryan Rhode, a former CSX executive. Like the lower court, the appellate rejected the plan participant’s allegations that a conflict of interest and a flawed investigation by a plan administrator led to the rejection of his claim. The case is Bryan Rhode v. CSX Transportation Read More
State Bans on Affirmative Action and the Impact on Corporate DE&I Programs
When the U.S. Supreme Court issued its recent decision striking down affirmative action in colleges and universities, workplace researchers forecast the quick demise of corporate diversity, equity, and inclusion (DE&I) programs. Their fears were realistic; a 2013 Harvard University study shows that racial diversity in the workplace significantly declined after several states outlawed affirmative action in college Read More
