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 ||

United States: New FCRA Lawsuit Demonstrates Growing Trend Of Consumers Challenging Employer Disclosure Forms

A new putative class action lodged in California federal court against Paramount Pictures Corporation made it the latest employer to be accused of violating the Fair Credit Reporting Act by obtaining credit reports from current and prospective employees without adequate disclosure of their rights under the FCRA. The lawsuit alleges that the company has a standardized practice of obtaining consumer reports for employment purposes, but that its disclosure form is not “in a document […]

By | February 3rd, 2015 ||

United States: Northern District Of Illinois Grants Employer Summary Judgment In "Dual Jobs" Tip Credit Case

On December 17, 2014, Judge Charles Norgle of the Northern District of Illinois granted summary judgment to an employer on all counts in a tip credit case where servers argued they were engaged in activities outside of their server duties.  InSchaefer v. Walker Bros. Enterprises, Inc., 10 CV 6366, plaintiffs alleged that their employer violated the Fair Labor Standards Act (FLSA) and the Illinois Minimum Wage Law (IMWL) by: (1) incorrectly using a tip […]

By | February 3rd, 2015 ||