Benefits & Compensation

On March 31, SBA Administrator Jovita Carranza and Treasury Secretary Steven T. Mnuchin announced that the SBA and Treasury Department have initiated a “robust” mobilization effort of banks and other lending institutions to provide small businesses with $349 billion in much-needed capital pursuant to the Paycheck Protection Program, established by the Coronavirus Aid, Relief, and

On Friday, March 20, 2020, the Internal Revenue Service (IRS), US Department of Labor (DOL), and US Department of the Treasury published a joint news release (Release) regarding tax credits available to employers who will be required to provide paid sick and family care leave for COVID-19-related purposes under the Families First Coronavirus Response Act

The Ninth Circuit just reiterated one of the late U.S. Circuit Judge Stephen Reinhardt’s last opinions after the U.S. Supreme Court wiped it out last February. (Decision here.) In February 2019, the Supreme Court vacated and remanded Rizo v. Yovino, which held that employers cannot justify a wage differential between men and women

(With thanks to Barbara Klementz for this post.)

Why hire through a PEO?

When companies start expanding internationally, it is often important to “put boots on the ground” as quickly and cost-effectively as possible.  The traditional approach of establishing a local entity and employing employees through the local entity may not always work due to the cost and time involved in setting up and maintaining the local entity and local payroll, as well as the complexity of establishing and administering supplementary benefits.


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Public school teachers, police, firefighters, and other state and local government employees accept their jobs with the understanding that their relatively low salaries are backed up by excellent pension benefits. In July 2019, Moody’s Investors Service estimated that U.S. public pensions are underfunded by $4.4 trillion. U.S. public pension underfunding is larger than the

Ten years from now there may well be no more Employee Retirement Income Security Act (ERISA) class actions. The law, like the rest of life, is not immune from disruptive innovations. In our own lifetime, we have seen disruptive innovations from chemical photography to digital photography, from personal computers to smart phones, and from snail

On September 24, 2019, the Department of Labor (finally) issued the final rule on the minimum salary threshold required for employees to qualify for the Fair Labor Standards Act’s “white-collar” exemptions.

The final rule:

  • Raises the new minimum salary threshold to $35,568 per year ($684 per week). The previous salary threshold, which had been in place since 2004, was $23,660 ($455 per week).
  • Raises the “highly compensated” employee salary threshold from $100,000 to $107,432 per year.
  • Allows employers to count certain non-discretionary bonuses, incentives, and commissions to satisfy up to 10% of an employee’s salary level.
  • Does not impact the job duties test.
  • Is estimated to make an additional 1.3 million more workers eligible for overtime.
  • Will take effect quickly — on January 1, 2020.


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This summer the U.S. Women’s Soccer team won more than the World Cup – they’ve had tremendous success in garnering public support in their bid for equal pay. However, beyond the star power of Alex Morgan and Megan Rapinoe, pay equity continues to be a hot button issue for employers in the U.S.

We’re pleased

We’re excited to announce a new article authored by Jim Baker that was published in the Summer 2019 issue of the Benefits Law Journal.

In this article, Jim covers how the dramatic increase in the number of workers who are classified as independent contractors is changing how employers and workers interact, specifically the implications on

Congratulations and special thanks to Lisa Brogan (Chair), Editor, and Contributors James Baker, Jordan Faykus, and Jenna Neumann for their contributions to the 2019 Edition of The ABA Business Law Section, Recent Developments In Business and Corporate Litigation; Chapter 20: ERISA.

Covered topics include:

  • US Supreme Court on church plan exemptions;
  • The standard of review