The federal Fair Labor Standards Act (FLSA) provides that employers may not require their employees to work more than 40 hours per work week unless those employees receive overtime compensation at a rate of not less than one and one-half times their regular pay. The FLSA contains certain exemptions from the overtime compensation requirement, one of which is for employees working in a “bona fide executive, administrative, or professional capacity.” In other words, if an employee works in such a capacity, the employer is exempt from the general requirement of paying overtime pay. Under the FLSA regulations, an employee’s position must satisfy three tests to qualify for this exemption: (1) a duties test, (2) a salary level test, and (3) a salary-basis test.
Estate Planning
Caregiver Bias
Today, it is commonplace for workers to handle both work and caregiving responsibilities for spouses and children, parents and other older family members, or relatives with disabilities. Women still are disproportionately more likely to exercise primary caregiving responsibilities but, in increasing numbers, men also have assumed the dual roles of caretaker and breadwinner.
Fall 2009 Report from Counsel here!
Gender stereotyping can lead to law suits under the Family Medical Leave Act. “Caregiver Bias” A recent federal appeals court decision required an employer to pay overtime compensation to salaried workers due to the employer’s performance-based bonus compensation plan.“Bonus Plan May Trigger Overtime” Adventure sports and other hazardous hobbies can lead to the loss of … Read more
Estate Planning for Vacation Homes
Whether it is a palatial estate where Rockefellers and Vanderbilts would feel at home or a rustic cabin in the woods complete with an outhouse, a family vacation home often carries sentimental value that doesn’t show up on financial ledgers. That is all the more reason why owners of such homes should plan for the … Read more
Roth 401(k)s
It has become more common for employers to offer not only conventional 401 (k) retirement plans, but, since they became available in 2006, also Roth 401(k) plans.
For 2009, an employee can put away a total of up to $16,500 in a 401 (k) plan. If the employee is at least 50 years old or will be before the end of the year, the maximum contribution rises to $22,000 because of a “catch up” contribution of up to $5,500. The total contribution may be allocated between 401(k) and Roth 401(k) accounts. In fact, the prevailing view is that it is a good idea to have some money in both types of plans because doing so will yield benefits from a diversified exposure to taxes.
Federal Privacy Rule Projects Health Information
Recently, the first-ever federal privacy standards to protect individuals’ health-care information went into effect. The mandate for these standards, collectively known as the Privacy Rule, was in the Health Insurance Portability and Accountability Act of 1996 (HIPAA). The Privacy Rule gives individuals access to their medical records and greater control over the use and disclosure … Read more
Debtors and Creditors
Personal Guarantees Nondischargeable Stanley and his wife, Kay, owned and operated a travel agency. To facilitate the business of selling airline tickets, the agency entered into an agreement with an airline ticket broker. The broker acted on behalf of airline carriers, issuing tickets and collecting payments from travel agents. The travel agency maintained a trust … Read more
Highlights of The New Federal Tax Act
On May 28, 2003, the Jobs and Growth Tax Relief Reconciliation Act of 2003 became law. Much of this federal tax law applies only to the years 2003 and 2004, after which provisions in the 2001 Tax Act will again become effective. Nonetheless, the Act contains some significant changes for individuals as well as businesses. … Read more
Telecommuting and Unemployment
Maxine worked in New York for a financial information services provider. When she moved to Florida, her employer agreed to allow her to telecommute. Maxine was responsible for the same tasks that she had handled in New York, only now from her laptop in Florida she logged onto her employer’s mainframe computer each workday. Two … Read more
When Noncompetition Agreements Cross State Lines
It is a common practice for an employer to require an employee to sign an agreement preventing the employee from competing with the employer for a certain period of time and in a designated geographic area. For many years, interpretation and enforcement of these noncompetition agreements or covenants not to compete, as they sometimes are … Read more