Archives

Deferred Compensation Plans: Take Time Now to Ensure Compliance with Section 409A

Internal Revenue Code Section 409A regulates deferred compensation plans and other arrangements, including severance plans, annual bonus payments, long-term incentive arrangements, stay bonuses, and settlement agreements upon termination. Section 409A rules govern compensation that was deferred or became vested after Jan. 1, 2005. Because employers have faced many difficulties trying to comply with these rules, […]

Bulletin: Government revises Form I-9

The U.S. Citizenship and Immigration Services (USCIS) has released a new Form I-9, which you can access at www.uscis.gov. Five documents, which employees previously could have submitted for proof of identity and employment eligibility, were removed from List A because they lack sufficient features to help deter counterfeiting, tampering, and fraud. Employers can no longer accept […]

Bulletin: New state minimum wage goes into effect on Jan. 1, 2008

As of the first of the year, California’s minimum wage will be $8.00 per hour, up from the 2007 rate of $7.50. Keep in mind that this rate increase affects not only hourly, nonexempt workers but also salaried, white-collar exempt employees. As of January 1, the minimum monthly salary for these exempt employees will rise […]

Discipline: What Do You Recommend to Improve Our Discipline Process and Remedy Employee Misconduct?

We are trying to make better sense of our discipline system. After people get a verbal and then a written warning, we suspend and ultimately fire them if the misconduct continues. But the suspension seems more like a gift than a punishment to many of our workers. What do you recommend for the “serious” steps […]

Exempt Employees: Deductions for Disability Leave Didn’t Violate Salary Basis Rule; Tips for Reviewing Your Plan

Under California and federal law, an exempt employee must receive his or her full salary for any week in which the person performs any work, regardless of the quality or number of hours worked. This is known as the “salary basis” rule. If you dock an exempt employee’s weekly salary, you could violate this rule […]

A Shameless Plug: Vote For Our Beloved Blawg!

We’ve been selected as one of the ABA Journal’s Blawg 100, a list of the 100 best blogs for lawyers as selected by the editors of the ABA Journal, the flagship magazine of the American Bar Association. And they’re running a contest to determine which are the most popular. We are under the “gossip” category. […]