Compliance Stuff

In today’s competitive and highly regulated business environment, organizations can no longer rely solely on instinct or outdated human resources practices to manage their workforce. Decisions related to hiring, promotions, compensation, employee development, and retention can carry significant financial, operational, and legal consequences. As a result, organizations that continue to rely primarily on subjective decision-making, inconsistent management practices, or outdated HR models risk falling behind competitors and exposing themselves to unnecessary liability. Employers are expected to demonstrate that workplace policies and employment decisions are job-related, consistently applied, and compliant with state and federal non-discrimination laws. This expectation has received increased national attention following Executive Order 14173 , “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” which emphasizes compliance with federal civil rights laws and reinforces ...

Employers in Virginia should be aware of legislation that would make it even harder to enforce non-competes. This is the latest in a series of moves curbing such agreements in the state. Specifically, the Virginia House of Representatives passed a bill on March 4 that would limit an employer’s ability to enforce a non-compete agreement against laid off or fired employees, unless the termination is “for-cause.” The bill, which also passed the state Senate in early February, is now headed to Governor Abigail Spanberger – and we expect her to sign it into law. Here’s what employers in Virginia need to know and a five-step action plan for compliance. New Limit on Enforceability If signed into law, SB 170 will void employee non-competes for workers who are laid off without severance or other compensation. According to the bill, this will apply to all involuntary terminations, except in “for-cause” terminations. These restrictions would apply to all non-compete agreements signed on or afte...

Compensation is generally subject to federal income tax and FICA tax when compensation is actually paid to an employee. However, nonqualified deferred compensation (NQDC) may be subject to FICA taxation before federal income taxation under a FICA tax special timing rule. The scope of NQDC subject to FICA taxation is broad, including voluntary deferrals of salary, restricted stock units and performance stock units with deferral features, SERPs, and certain deferred bonuses. Understanding when FICA tax applies to NQDC, and how to take advantage of FICA tax timing rules, can help employers avoid errors when administering their NQDC arrangements. Below is a summary of the FICA tax special timing rule and our insights. FICA Tax The Internal Revenue Code imposes FICA tax on compensation employers pay to employees for services. FICA is comprised of two separate taxes: old-age, survivor, and disability insurance tax (OASDI) (commonly called the Social Security tax) and hospital insurance tax ...