United States: New York Federal Court Finds That The Fair Labor Standards Act Does Not Require An Employer To Compensate An Employee For Time Spent At Mandatory Alcohol Counseling And Treatment Sessions

Employers do not have to pay their employees to attend mandatory alcohol counseling and treatment sessions, according to a New York Federal court.  In reaching its decision, the court concluded that employee attendance at these sessions does not constitute “work”, and even if it did, then the employer still would not have to pay for this time because it would be considered a non-compensable postliminary activity.  The decision is encouraging, especially because it will […]

By | February 4th, 2015 ||

United States: Employers Beware: Increased Attention To Workplace Harassment And Wellness Programs By The EEOC Coming In The New Year

Newly appointed U.S. Equal Employment Opportunity Commission (EEOC) Chair Jenny Yang recently offered some insight into the EEOC’s areas of focus for 2015, providing employers with a preview of some of the key regulatory and enforcement actions on the horizon. Two primary issues have emerged: workplace harassment and wellness programs.
Workplace Harassment
Workplace harassment is a common theme in discrimination complaints filed with the EEOC, showing up in approximately 30 percent of all complaints. Employers should […]

By | February 4th, 2015 ||

United States: District Court Rules On Special Timing Rule For FICA Tax Withholding On Deferred Compensation

In Davidson v. Henkel, No. 12-cv-14104 (E.D. Mich. 2015), a federal district court ruled that an employer violated the terms of its nonqualified deferred compensation plan by failing to withhold Federal Insurance Contribution Act (FICA) taxes using the “special timing rule.” As a result, the employer was liable to the plan participants for the additional FICA taxes owed on the deferred compensation.

There are two timing rules for determining when compensation is included as wages […]

By | February 3rd, 2015 ||