We have continued to follow the litigation and political maneuvering surrounding last year's proposed wage and hour regulations. Those regulations, which would have increased the threshold requirement for most salary exempt positions from $455 to $913 per week, were temporarily halted nationwide last November by a federal judge in Texas. Since that time, the case has been appealed to the Fifth Circuit Court of Appeals, while political wrangling over the regulations has continued. Recently, President Trump's initial pick for Secretary of Labor, Andrew Puzder, withdrew his nomination and was replaced by Alexander Acosta, the dean of Florida International Law School.
In our blog entry dated November 23, 2016, Coolidge Wall announced that a federal judge in Texas had issued an injunction halting the Department of Labor's new wage and hour regulations from being implemented on December 1, 2016, as anticipated. These amended regulations purported to increase the threshold salary requirement for most exempt positions from $455 to $913 per week, which would have impacted more than an estimated four million workers throughout the country. Many employers were poised to implement changes in compliance with the amendments, and others had already implemented such changes in advance of the effective date.
In the midst of the "alphabet soup" of regulations and regulators that could affect your business, Ohio has an ingredient all its own...the VSSR.
On May 18, 2016, the Department of Labor announced new rules which will govern compensation for every employer in the country which is covered by the federal Fair Labor Standards Act. With a few exceptions, this includes any employer which has gross revenue of $500,000 or more.
The IRS has released final regulations governing when taxpayers must capitalize expenditures and when they can deduct expenditures related to the acquisition of tangible property. These regulations are effective for taxable years beginning on or after January 1, 2014. Importantly, the final regulations provide for a de minimis safe harbor election that allows taxpayers to immediately deduct the cost of acquiring certain items of tangible property, provided that specific requirements are satisfied. The election is made annually by attaching a statement to a timely filed income tax return.