United States: IRS Permits Puerto Rico-Qualified Plans In U.S. Group Trusts, Extends Deadline For Certain Puerto Rico Spin-Offs

The U.S. Internal Revenue Service (IRS) recently issued Revenue Ruling 2014-24, which expressly permits retirement plans that are tax qualified only in Puerto Rico (Puerto Rico-only plans) to continue to pool assets with U.S.-qualified plans in Revenue Ruling 81-100 group trusts (group trusts) now and in the future. The ruling is welcome relief for Puerto Rico plan sponsors, institutional investors and trustees, who previously were relying on transition relief that permitted Puerto Rico-only plans […]

By | October 21st, 2014 ||

United States: U.S. District Court Rejects Proposed Settlement Of High-Tech Employees Non-Solicitation Cases

On Aug. 8, 2014, Judge Lucy Koh of the U.S. District Court for the Northern District of California rejected the proposed settlement of a class action brought by employees of Silicon Valley technology companies alleging that the companies had entered into agreements not to solicit each other’s employees. In re: High Tech Emp. Antitrust Litig., 2014 U.S. Dist. LEXIS 110064 (N.D. Cal. Aug. 8, 2014).

Plaintiffs filed complaints against certain high-tech companies and film studios […]

By | October 21st, 2014 ||

United States: Holding Company With No Employees May Be The Employer Of Its Subsidiary’s Employees

In Castaneda v. The Ensign Group, Inc., a California court of appeal held that a corporation that had no employees of its own, but owned and allegedly exercised control over a corporation with employees, may be the co-employer of the controlled corporation’s employees.

John Castaneda filed a class action complaint for minimum wage and overtime violations against The Ensign Group, which he alleged was the alter ego of Cabrillo Rehabilitation and Care Center, the nursing […]

By | October 21st, 2014 ||