On January 31, President Trump nominated Judge Neil Gorsuch from the Tenth Circuit Court of Appeals to fill the Supreme Court seat previously held by the late Justice Antonin Scalia. Judge Gorsuch is known as a conservative, a textualist, and a talented writer—much like Justice Scalia. So, what effect would a Justice Gorsuch have on employers? Continue Reading What Does Gorsuch Supreme Court Nomination Mean for Employers?
President Trump’s Executive Order Suspending Entry to the US Raises Employment Law Considerations
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We are living in uncertain and quickly changing times. Most recently, on January 27, 2017, President Trump issued an Executive Order that suspends entry into the US for 90 days of certain aliens from Iraq, Syria, Iran, Libya, Somalia, Sudan and Yemen. For more information, read here. For US multinational employers, this latest Executive Order immediately begs the question: What action must, or should, a US employer take with respect to its mobile workforce, managers and business leaders?
President’s Executive Order can impact travel for certain lawfully present non-immigrants and immigrants to the US
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As you know, on Friday, January 27, 2017, President Trump issued an Executive Order (EO) suspending entry into the United States of aliens from Iraq, Syria, Iran, Libya, Somalia, Sudan and Yemen. The suspension will be in place for 90 days and applies to both immigrants and nonimmigrants. Specifically excluded from the EO are foreign nationals traveling on diplomatic visas, North Atlantic Treaty Organization visas, C-2 visas for travel to the United Nations, and G-1, G-2, G-3 and G-4 visas. The EO also grants authority to the Secretaries of State and Homeland Security to continue issuing visas and other immigration benefits to nationals of otherwise blocked countries, if doing so is deemed to be in the national interest. Such determinations will be made on a case-by-case basis.
Expatriate Taxation, Part II: Not All U.S. Expats Can Exclude Their Foreign Earned Income
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Since many Texas companies send employees on international assignment, they should be mindful that the U.S. federal income tax rules don’t apply to everyone in the same way. A case in point is a recent Tax Court Memorandum decision, Qunell v. Commissioner of Internal Revenue. In that case, the Tax Court held that even though the taxpayer was employed in Afghanistan for 16 months, he was not entitled to exclude his income earned in Afghanistan for 2011 from U.S. tax because he was deemed to have a U.S. abode. For those who have only a high-level understanding of the foreign earned income exclusion under Section 911 of the Internal Revenue Code (see previous post here), this result may not be obvious. But the statute is clear that even if a taxpayer otherwise qualifies to exclude foreign earned income under Section 911, that exclusion is not available if the taxpayer has an abode within the United States.
So, what is an “abode”? Continue Reading Expatriate Taxation, Part II: Not All U.S. Expats Can Exclude Their Foreign Earned Income
US Federal Agencies Issue Joint Guidance for HR Professionals Warning of Criminal Liability for Wage-Fixing and No-Poaching Agreements
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On October 20, 2016, the US Department of Justice (DOJ) and Federal Trade Commission (FTC) issued antitrust guidance for human resource (HR) professionals and others involved in hiring and compensation decisions. The guidance warns of criminal prosecution against companies, HR professionals and other individuals, for formal and informal wage-fixing or no-poaching agreements between companies. The agencies also encourage companies, HR professionals and other individuals to quickly report antitrust violations to the DOJ under its Corporate and Individual Leniency Policies.
To learn more about the guidance, click here.
Voting Laws – Do’s and Don’ts for Texas Employers
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November 8 is shaping up to have one of the largest voter turnouts in history. As such, Texas employers should ensure they comply with election voting laws as they relate to employees. Chapter 276 of the Texas Election Code sets certain requirements for employers. Below are some do’s and don’ts for employers with voting employees: Continue Reading Voting Laws – Do’s and Don’ts for Texas Employers
“Catching Up” on Exempt Status—Using Bonuses and Incentive Payments to Meet the FLSA’s New Salary Threshold
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As discussed in a prior post, the Department of Labor’s new overtime regulations increase the weekly minimum salary threshold an employee must be paid to maintain exempt status under the FLSA’s “white collar” exemptions. The Final Rule, which becomes effective December 1, 2016, could affect up to 4.2 million employees according to DOL estimates. But an employer hoping to classify its employees as exempt need not meet the new threshold entirely through base salary. Instead, the new regulations allow employers to use bonuses, commissions, and incentive payments to satisfy up to 10% of the minimum salary threshold.
Pay Equity: Everything Employers Need to Know
Title VII and the Equal Pay Act expressly ban the unequal treatment and compensation of female employees. Yet pay inequity can creep in to even the most well-intentioned companies. As a consequence, standards for evaluating pay practices are rapidly evolving in both the public and private sectors, and many companies are pledging to improve wage equality. What’s more, with the EEOC now targeting equal pay discrimination, we are primed to see a wave of class action lawsuits that could cost companies millions in back pay and damages. Is your company keeping up? Continue Reading Pay Equity: Everything Employers Need to Know
Expatriate Taxation – Don’t Be a Cowboy!
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Posted in Employment Agreements, Handbooks & Policies
Texas companies that send their employees on international assignment shouldn’t let their employees figure out their US federal income taxes by themselves. A case in point is a recent Tax Court Memorandum decision, Gerencser v. Commissioner of Internal Revenue, where the taxpayer not only lost to the IRS but was assessed with penalties as well. A well-written global mobility policy that requires expats to use the company’s designated tax return preparer is best practice, but surprisingly not all companies take this approach. Because a failure by the expat to properly compute taxes could, in fact, subject the employer to liability, it is important that companies review their global mobility policies. Continue Reading Expatriate Taxation – Don’t Be a Cowboy!
Shots Fired By 5th Circuit – Prohibiting Guns in Parking Lots Could Lead to Wrongful Discharge Claims
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The Fifth Circuit held Monday, August 8, 2016, that employers who prohibit workers from storing guns in locked vehicles may be subject to wrongful discharge claims. The decision was based on the Mississippi Supreme Court’s interpretation of a Mississippi statute, but Texas employers should take note—Texas has the same statute, potentially resulting in the same holding. Continue Reading Shots Fired By 5th Circuit – Prohibiting Guns in Parking Lots Could Lead to Wrongful Discharge Claims