Compliance Stuff

  Beginning January 1, 2026, age 50+ catch‑up contributions for “high‑paid participants” of 401(k), 403(b), and governmental 457(b) retirement plans must be made on a Roth basis. As a result, employers must identify who is a “high-paid participant” and ensure that corresponding catch-up contributions are characterized as Roth — even if a participant’s standing catch-up deferral election is pre‑tax.   The Internal Revenue Service (IRS) recently released final regulations   implementing the mandatory Roth catch-up, which will create pressure points for payroll systems, retirement plan recordkeepers, and plan sponsors. This update summarizes the new mandatory Roth catch-up requirement, highlights selected issues for payroll and human resources to consider, and recommends solutions to reduce compliance risk.  The New Mandatory Roth Catch‑Up Rule Under final IRS regulations, a catch‑up eligible participant with FICA wages paid by applicable employer(s) above a wage thresh...

In a significant shift in labor law enforcement, states and localities across the United States are increasingly treating wage theft not merely as a civil infraction, but as a criminal offense . This trend in certain jurisdictions reflects a growing movement that the intentional denial of wages—whether through unpaid overtime, minimum wage violations, or misclassification of workers—should be prosecuted with the same seriousness as other forms of theft. A Shift Toward Criminalization Historically, wage and hour violations have been addressed through civil penalties, administrative fines, or private lawsuits. Enforcement agencies, such as the federal and state departments of labor, have traditionally exercised discretion in issuing civil penalties, liquidated damages, or other remedies for wage underpayments. However, a growing number of states and localities are now imposing criminal penalties for willful or repeated wage violations, with penalties ranging from fines to imprisonment. F...