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


Tags

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

Archive

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

EDIT - BlogTagCloud - Font style

description

  • 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.