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Showing posts from September, 2025

How Do Alaska’s Final Paid Sick Leave Rules Differ from the Proposed Rules?

The Alaska Department of Labor & Workforce Development’s  final rules  implementing the paid sick leave provisions of Ballot Measure 1 (2024) became effective September 25, 2025 .  Previously , we highlighted what the  proposed  rules included. Here, we discuss notable changes in the  final  rules. The Department did not publish a summary of the public comments it received or explain whether and/or why it did or did not factor in those comments when finalizing the rules. Rate of Pay . Although the Department sticks with requiring employers to use the formula for calculating the “regular” rate of pay for overtime purposes when determining how much to pay employees when they use paid sick leave, for employees who work at two or more rates the Department now allows both the previously proposed “weighted average” method (for the workweek)  and  the “rate in effect” method (for the shift). Business Size . Different standards apply depending o...

Hostile Work Environment Claims Under the ADEA: Lessons from the Seventh Circuit.

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May an employee assert a hostile work environment claim under the Age Discrimination in Employment Act (ADEA)? In  Blumenshine v. Bloomington School District No. 87 , the U.S. Court of Appeals for the Seventh Circuit responded affirmatively, and, in so doing, joined a number of its sister circuits that had previously recognized such a claim. This case serves as a significant reminder to employers to understand how age discrimination can manifest in the workplace and the legal standards required to prove such claims. Quick Hits The Seventh Circuit Court of Appeals joined multiple other federal courts of appeals in finding that hostile work environment claims are viable under the ADEA . As part of stating an age discrimination claim, an employee must establish that the complained-of conduct is based on his or her age. Speculative and conclusory allegations are not sufficient to support a claim of age-based harassment. Background The plaintiff was a long-tenured and “exemplary” teache...

OBBBA Impacts on Executive Compensation: Changes to IRC Sections 162(m) and 4960

Introduction On July 4, 2025, H.R. 1 — the  One Big Beautiful Bill Act  (the OBBBA) was enacted into law. OBBBA introduces significant amendments to the Internal Revenue Code (IRC), including notable changes to sections 162(m) and 4960. [1]   Section 162(m) limits the deductibility of executive compensation for publicly held corporations, and section 4960 imposes excise taxes on excess compensation and excess parachute payments paid by certain tax-exempt organizations . These measures serve to raise tax revenue from executive compensation as a partial offset to tax costs elsewhere in OBBBA. This article summarizes the key statutory changes made to sections 162(m) and 4960 by OBBBA and discusses practical implications for affected organizations. OBBBA Changes to Section 162(m) Pre-OBBBA Law .   Section 162(m) limits the federal income tax deduction that a publicly held corporation may claim for compensation paid to any “covered employee” to $1 million per year. C...

EEOC to Close Investigations of Disparate Impact Discrimination

The U.S. Equal Employment Opportunity Commission will close almost all pending charges based solely on allegations of disparate impact discrimination by September 30, 2025, according to an internal memorandum obtained by Bloomberg Law. The agency is expected to issue right-to-sue letters to charging parties whose charges will be closed, allowing them to proceed on their own in federal court. While it is not clear whether it was explicitly stated in the memo, it appears reasonably certain the agency itself will not file any litigation premised on disparate impact theory going forward. The memo reportedly allows for limited exceptions subject to approval by EEOC leadership. Charges that allege both disparate impact and disparate treatment theories will remain open, although agency staff have been directed to investigate only the disparate treatment claims. The move follows on the administration’s April 2025  executive order  directing all federal agencies to cease using disparat...

Business license compliance as a strategic advantage

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  Business license compliance is often seen as a routine obligation, but it can be much more than that. When approached strategically, compliance becomes an opportunity to streamline operations, reduce risk, and lower costs.  Prioritizing compliance not only helps you stay ahead of regulatory requirements, but it can also enhance efficiency and support sustainable business growth. Key takeaways: Strategic value of compliance : Leveraging business license compliance strategically can streamline operations, reduce risk, and lower costs, supporting sustainable growth . Risks of ineffective compliance management : Poor compliance management can lead to severe penalties. Modernizing through technology and collaboration can mitigate these risks. Read on to learn about the business value of business license compliance, why typical license management practices introduce risks, and best practices for modernizing your business license management processes. The business value of complian...