Loans under the Payroll Protection Program (PPP) are eligible for forgiveness depending upon whether and when the loan proceeds are used for qualified business expenses. Congress provided that the forgiveness of PPP loans are not includible in income. However, the Internal Revenue Service (IRS) currently takes the position that expenses funded by PPP loans are not deductible. On December 14, US lawmakers unveiled a draft of the Bipartisan Emergency COVID Relief Act of 2020, which includes a provision allowing deductions for PPP expenses that result in PPP loan forgiveness. Access the article.
The Internal Revenue Service (IRS) recently issued practical and helpful guidance in a question-and-answer format for tax-qualified retirement plans and for an Individual Retirement Arrangement (IRA), regarding the legislative changes under the Setting Every Community Up for Retirement Enhancement Act of 2019 (the “SECURE Act”) and the Bipartisan American Miners Act of 2019 (the “Miners Act”). Teal Trujillo, an incoming associate in our Chicago office, also contributed to this On the Subject. Access the article.
On December 1, Judge Jeffrey White of the US District Court for the Northern District of California invalidated two new regulations that raised prevailing wages and eligibility criteria for foreign workers to receive H-1B visas. "This decision ensures the continued viability of the H-1B program, which supplies work authorization to more than 580,000 individuals in the United States," Paul Hughes, partner at McDermott Will & Emery, said in a recent article by the Society of Human Resource Management. Access the article.
Some estimates have upwards of 10 million Americans living abroad; three-fifths of them are working in some fashion, according to a 2017 survey by the expatriate support organization InterNations. And even if a much smaller number are working for US employers, a substantial portion have spent much of 2020 navigating the challenges of visa, benefits, taxes and work status. Beyond that, the challenges that come along with remote work—Zoom fatigue, balancing caregiver roles with job tasks and more—are exacerbated by working across a long stretch of time zones. In a recent article by Evolve, McDermott partner Brian Cousin outlines the importance of employers staying engaged with their employees working abroad—and staying on top of shifting employment circumstances and restrictions. Access the article.
UK employees "working from anywhere" face fines or investigations from foreign tax authorities if they stay too long, become a resident in a foreign country for tax purposes and fail to declare their UK incomes. In some cases, they could also be hit with double taxation on the same earnings. In a recent article in The Daily Telegraph, McDermott partner Simon Goldring advises employees to consider the tax implications of extended "work from home" abroad. Access the article.
Leadership’s responsibility for assuring gender equality within the workplace just received an important, highly public “push.” In a recent article in Forbes, McDermott partner Michael Peregrine analyzes a crucial study by McKinsey and LeanIn.org, which concluded that women have born an outsized workplace-related burden during the COVID-19 economy. Access the article.
Employers are contending with how to respond to telecommuters dressing down during the pandemic. Companies also are considering how to ensure dress codes don't unlawfully discriminate or violate National Labor Relations Act (NLRA) rights. In a recent article by the Society of Human Resource Management, McDermott Employment associate Philip Shecter advises employers to be mindful of these rights, which may arise in the context of attire in favor of social justice movements. Access the article.
Class action litigation brought under the Fair Credit Reporting Act (FCRA) is on the rise—particularly in California—after the US Court of Appeals for the Ninth Circuit issued a 2017 decision applying a hypertechnical approach to the FCRA's disclosure requirements. Background checks are an integral part of the hiring process, but they open employers up to lawsuits for noncompliance with disclosure or adverse action requirements. Plaintiffs' firms are turning their attention to these cases because of the potential for statutory and actual damages, punitive damages, costs and attorneys' fees. In our recent webinars, we discussed strategies to help employers avoid and defend these claims. View Part I's slide deck here. View Part II's slide deck here.
Flu season is officially here, and in light of the COVID-19 pandemic's continued effects across the country, doctors are imploring people to get their annual flu shot. In a recent interview with the Los Angeles Times, McDermott partner Michelle Strowhiro discussed approaches and options for employers as they consider making the flu vaccine mandatory. Access the article.
Healthcare Employers: What You Need to Know about the New FFCRA “Health Care Provider” Exclusion and California COVID-19 Supplemental Paid Sick Leave
Healthcare employers are immediately impacted by two recent developments in federal and California COVID-19 paid leave laws: a Department of Labor revision to the Families First Coronavirus Response Act (FFCRA) and a new California supplemental paid sick leave legislation. For both changes in the law, quick action is required for compliance. Access the article.