#MeToo Hits Employers Paying To Cover Up Misconduct

With limited exceptions, payments made by employers to settle lawsuits, and related attorneys’ fees, are generally deductible as ordinary and necessary business expenses. On December 22, 2017, the President signed reforms to the United States Tax Code.  Lost in the conversation about the changes to tax rates and various deductions is a provision, proposed by New Jersey Senator Robert Menendez, which may prevent employers from deducting payments made to settle claims for sexual harassment or sexual abuse and related legal fees.  Section 162(q) of the Internal Revenue Code now states that “[n]o deduction shall be allowed under this chapter for—(1) any settlement or payment related to sexual harassment or sexual abuse if such settlement or payment is subject to a nondisclosure agreement, or (2) attorney’s fees related to such a settlement or payment.”

Changes to Federal Law Allows More Unpaid Internships

With the Summer (finally) approaching, many employers are thinking of having “unpaid” internships for high school and college students. In recent years, however, such a program raised legal concerns over whether those interns were actually employees and had to be paid for their hours worked, as the U.S. Department of Labor under the Obama Administration had limited the circumstances in which an unpaid internship was truly “unpaid.”  However, USDOL guidance issued earlier in 2018 has changed all that – it will now be easier for employers to not pay their interns, as long as the “primary beneficiary” of the arrangement is the intern, i.e., a program that is primarily for the intern’s education and training.

Peter Frattarelli on Webinar “Pre-Employment Background Screening: FCRA, EEOC, Ban-the-Box, State and Local Law Compliance”

Peter Frattarelli to Speak at “Meet the Advocates”

Peter Frattarelli Presented NJBIZ for Sexual Harassment in the Workplace: Panel Discussion

Peter Frattarelli To Speak At NBI Seminar, “Human Resource Law From Start to Finish”