Last December, Congress responded to an avalanche of sexual harassment and abuse claims across the country by including a provision within the Tax Cuts and Jobs Act at Section 13307 impacting an employer’s ability to obtain a tax deduction for settlements paid that include nondisclosure agreements. Internal Revenue Code Section 162(q) now provides that no deduction will be allowed for any settlement or payment related to sexual harassment or sexual abuse if such settlement or payment is subject to a nondisclosure agreement. Deductions for attorney’s fees related to such confidential sexual harassment settlements or payments are also prohibited. The drafters …

This past Wednesday, June 6, 2017, the Department of Labor (DOL) issued a press release announcing the withdrawal of its 2015 and 2016 guidance, formally called “Administrator’s Interpretation” (AI), concerning independent contractors and joint employment. Specifically, in the 2015 AI addressing independent contractors, the DOL took an expansive view of who would be classified as an employee. In the 2016 AI addressing joint employment, the DOL sought to broadly define the concept of joint employment under the federal Fair Labor Standards Act (FLSA) and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA). The withdrawal of these two AIs may …

According to the recent IT Security Risks Survey conducted by Kaspersky Lab, 73% of companies have been affected by internal information security breaches, and the largest single cause of confidential data losses is employees at 42%. In fact, 19% of respondents said that at least one of their employees loses a mobile device containing corporate data at least once a year. If you are not already aware, then you should be informed that your employees are most likely the biggest risk to your company’s security networks. The best way to protect your company’s data and confidential information from accidental exposure …

In November 2016, the U.S. Citizenship and Immigration Services (USCIS) released a new Form I-9 for all employers to use when hiring new employees. Starting January 22, 2017, all employers must use this new Form I-9, which has been referenced as a “smart” form because it can be filled out online and includes drop-down menus, hover text with instructions, and error messages. Failure to use the new Form I-9 beginning January 22, 2017, may result in civil fines. The new changes are specifically designed to help employers reduce technical errors. Some of the changes include: Additional spaces to enter multiple …

In a somewhat surprising and certainly controversial move, a federal court in Texas has issued a preliminary injunction stopping for the time being the DOL’s overtime rules from taking effect on December 1, 2016, as originally contemplated. Moreover, the court’s order applies to all employers on a nationwide basis. The primary DOL regulation at issue would have increased the minimum threshold salary for “white collar” exempt employees from $455 per week ($23,660 annually) to $913 per week ($47,476 annually). In granting an injunction, the court agreed with a number of states, including Ohio, that drastically raising the minimum salary needed …

On June 9, 2016, Ohio Governor John Kasich signed Sub. H. B. No. 523 into law and Ohio officially became the 25th state to legalize the use of medical marijuana. Responding to the growing acceptance of medical marijuana, the new law does allow individuals to use medical marijuana under certain conditions (see qualifying conditions below) outside of the workplace if they have a prescription from a medical professional. But the key point is that Ohio employers can still enforce a zero tolerance anti drug use policy. Even if an individual employee has a prescription for use of medical marijuana, an …