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


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


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.