News and Articles

Legal Update - October 2019 Newsletter

Yogi Patel - Wednesday, October 02, 2019

Dear valued clients and supporters: This month's newsletter will focus on: 1) changes to federal overtime rules; 2) tax-deferred savings for business owners; and 3) recent ground breaking legislations in California which could lead to similar changes in New York.

Federal Overtime Law Update

For the first time in over 15 years, the federal Department of Labor increased the minimum salary an employee must be paid in order to be exempt from overtime under the Fair Labor Standards Act (FLSA). Under the old rule, employees had to be paid at least $455 per week in order to be overtime exempt; the new threshold amount is now $684 per week (the equivalent of $35,568 annually). A similar exemption for "highly compensated employees" was raised from $100,000 to $107,432 per year. Under the new rule, employers may now also use certain non-discretionary bonuses, such as commissions, to satisfy up to 10% of the minimum salary threshold. In addition to receiving the increased salary, employees still must meet the "duties" test, meaning they perform certain executive, administrative, professional, or other certain tasks as their main job functions. According to current reports, it is estimate that this change will make 1.3 million current workers who were previously exempt now eligible for overtime pay. As the new rule is set to go into effect on January 1, 2020, employers are encouraged to start taking measures to update their payroll practices as soon as possible.

Tax-Deferred Savings For Business Owners

One of the most misunderstood tools available to business owners are various mechanisms that can potentially defer up to hundreds of thousands of dollars in taxes into retirement accounts. In failing to utilize 401k accounts, cash balance plans, and other similar benefits, business owners often overlook and miss out on significant savings for their retirements. If you are a business owner who has yet to take advantage of these tax-saving measures, we recommend you speak to your financial advisor about these plans. To the extent you do not have someone you work with regularly or need a second opinion, we would be happy to connect you with financial professionals with whom we work with.

Ground breaking laws out of California

Earlier this week, California enacted the Fair Play to Pay Act which functionally allows student athletes in California to be paid for their names, images and likenesses despite NCAA regulations prohibiting such compensation. The law, which is scheduled to go into effect in January 2023, does not require schools to pay athletes directly as employees. Instead, it makes it illegal for schools to prevent an athlete from earning money by selling the rights to his or her name, image or likeness to outside bidders. The law also allows college athletes to hire a licensed agent to represent them. Current NCAA rules do not allow a player to accept any compensation related to his or her status as a college athlete from outside sources. While legal challenges to the new law is expected, other states, including New York could likely follow California's lead further upending the NCAA's control on this issue. Another ground breaking law signed last month in California, which could also pave the way for similar legislation in New York (and other states), takes aim at the gig economy. Governor Newsom signed a controversial bill last month known as AB 5, after months of uproar from businesses and gig companies like Uber and Lyft. The bill will require businesses to hire workers as employees, not independent contractors, with some exceptions. Lyft, Uber, and DoorDash have warned that they were each ready to spend $30 million on a ballot initiative to overturn AB 5. California labor unions, which support AB 5, have vowed to fight back.

Readers are encouraged to follow us on Twitter (@lloydpatelllp) and Facebook to receive updates on these and other issues throughout the month.

Recent Posts


Independent Contractor Trade Secrets Act Selling Business Lactation Law Glatt v. Fox Searchlight Pictures, Inc. Postnup Economic Injury Disaster Loans $15 Minimum Wage Prenup Interview Series Domain Name Employment Law Emergency Economic Injury Grants Federal Small Business Assistance Executive Negotiation Facebook Privacy and Litigation Housing Law Immigration Status Alter-Ego Doctrine NY payroll law Employment Offer/Agreement federal Department of Labor Household Employees Divorce Paycheck Protection Program Arbitration Agreements Tax-Deferred Savings Employee Manuals and Policies Start-up Ventures Unionization Security Sexual Harassment policy marijuana usage Marijuana Testing Employee Salary Histories NYC Human Right's Law's Affordable Care Act Federal Overtime Law EEOC Filing Requirement Interns as Employees Sexual Harassment and Discrimination In The Workplace Privacy Plastic Bag Ban Fair Workweek Law Nobel Prize Non-Qualified Stock Options Ban the Box NYC Salary History Law Internet Law NQSO Negotiating Newsletter Real Estate Law Sexual Harassment I-9 Verification stocks NYC Sexual harrassment law entrepreneur Federal Joint Employer Rule Fair Work Week Legislation Hairstyle Discrimination Executive Severance NYC Sick Leave Law Minimum wage COVID-19 National Labor Relations Board Transgender protections Workplace Requirements ACA U.S. Department of Labor Interns Payroll Scams Nanny Audit Overtime Exemptions Credit Checks National Labor Relations Act Health Care NLRB Overtime Rules Fair Chance Act Fair Labor Standards Act Wage Theft Protection Act New York City Human Rights Law Web Domains Browning-Ferris Case Firm Announcements Joint-Employer Relationship workplace discrimination Apple vs. FBI sexual harassment training Attracting Investment Credit History Business Law Trade Secrets AirBnB Federal Acquisition Regulatory Council Landlord-Tenant Law Right to Unionize drug testing Department of Labor Intellectual Property Credit Westchester Safe and Sick Time Laws #meToo Corporate Law Out-of-State LLC Owners Fair Labor Standards Act (FLSA) Technology Fair Play to Pay Act Families First Coronavirus Response Act Womens Rights Business Mandatory Class Action Waivers Paid Family Leave Glatt v. Fox Searchlight Pictures Employer Mandate Employment Contracts Unions New Address Criminal Record Illegal rentals graduate students Federal Contractors Fair Pay and Safe Workplace Executive Order LinkedIn New York Earned Sick Time Act Human Rights Law Wage and Hour Law employment discrimination lawsuits Worker's Rights Salary History Inquiries commuter benefits Trademark licensing Westchester County implementing new leave laws Trademark Law Pregnancy Public-Sector Union Fees Freelance Isn't Free


EDIT - blog-container - This controls the styles for the headings

EDIT - BlogTagCloud - Font style


  • EDIT  - post-body - Font style

EDIT - side-panel - This is the colour of the sidebar headings

Snap | BC Module - Blog - Blog Description

Snap | BC Module - Blog - Blog Title

EDIT - Snap | BC Module - Blog - Date - This is the date box style

EDIT - Snap | BC Module - Blog - Post Content - Font style

EDIT - Snap | BC Module - Blog - Post Title - Heading style

EDIT  - Snap | BC Module - Blog - Sidebar Content - Font style

EDIT - Snap | BC Module - Blog - Sidebar Title - Heading style

latest blog title snap text


Disclaimer: Nothing on this website is or should be construed as legal advice.
An attorney-client relationship does not exist with our firm unless a signed
retainer agreement is executed, and we do not offer legal advice through
this site or any of the content located on it. For legal advice for your
particular circumstances, please contact us directly.