Source: https://www.thinkhr.com/blog/federal-employment-law-update-october-2018/
Timestamp: 2018-11-18 06:02:44
Document Index: 137666732

Matched Legal Cases: ['§ 541', '§ 199', '§ 1904', '§ 1904', '§ 1904', '§ 1904']

Federal Employment Law Update – October 2018 - ThinkHR Human Powered
DOL Delays Overtime Rule Until March 2019
In fall 2018, the U.S. Department of Labor, Wage and Hour Division (WHD) announced that it intends to issue a Notice of Proposed Rulemaking (NPRM) in March 2019 to determine the appropriate salary level for exemption of executive, administrative, and professional employees. The WHD stated that it is reviewing the overtime regulations at 29 C.F.R § 541, which implement the exemption of bona fide executive, administrative, and professional employees from the federal Fair Labor Standards Act’s minimum wage and overtime requirements. The NPRM will propose an updated salary level for exemption and seek the public’s view on the salary level and related issues.
IRS Reminds Business Owners of Tax Law Changes
Many owners of sole proprietorships, partnerships, trusts and S corporations may deduct 20 percent of their qualified business income. The new deduction — referred to as the § 199A deduction or the qualified business income deduction — is available for tax years that began after December 31, 2017. Eligible taxpayers can claim it for the first time on their 2018 federal income tax return. A set of FAQs provides more information on the deduction, income, and other limitations.
Businesses are now able to write off most depreciable business assets in the year the business places them in service. The 100-percent depreciation deduction generally applies to depreciable business assets with a recovery period of 20 years or less and certain other property. Machinery, equipment, computers, appliances, and furniture generally qualify.
Entertainment and meals: The new law eliminates the deduction for expenses related to entertainment, amusement, or recreation. However, taxpayers can continue to deduct 50 percent of the cost of business meals if the taxpayer or an employee of the taxpayer is present and other conditions are met. The meals may be provided to a current or potential business customer, client, consultant, or similar business contact.
Employee achievement award: Special rules allow employees to exclude certain achievement awards from their wages if the awards are tangible personal property. An employer also may deduct awards that are tangible personal property, subject to certain deduction limits. The new law clarifies that tangible personal property does not include cash, cash equivalents, gift cards, gift coupons, certain gift certificates, tickets to theater or sporting events, vacations, meals, lodging, stocks, bonds, securities, and other similar items.
The tax reform for businesses page has more information on fringe benefit changes. Additionally, see IRS.gov/taxreform for more information about these and many other tax law changes.
OSHA’s Position on Workplace Safety Incentive Programs and Post-Incident Drug Testing Clarified
On October 11, 2018, the federal Department of Labor (DOL) released a standard interpretation memorandum (Standard Number 1904.35(b)(1)(iv)) from the federal Occupational Safety and Health Administration (OSHA) detailing OSHA’s position on workplace safety incentive programs and post-incident drug testing.
29 C.F.R. § 1904.35(b)(1)(iv) states, “you must not discharge or in any manner discriminate against any employee for reporting a work-related injury or illness.” The DOL interprets that 29 C.F.R. § 1904.35(b)(1)(iv) does not prohibit workplace safety incentive programs or post-incident drug testing. The DOL stated that it:
“…believes that many employers who implement safety incentive programs and/or conduct post-incident drug testing do so to promote workplace safety and health. In addition, evidence that the employer consistently enforces legitimate work rules (whether or not an injury or illness is reported) would demonstrate that the employer is serious about creating a culture of safety, not just the appearance of reducing rates. Action taken under a safety incentive program or post-incident drug testing policy would only violate 29 C.F.R. § 1904.35(b)(1)(iv) if the employer took the action to penalize an employee for reporting a work-related injury or illness rather than for the legitimate purpose of promoting workplace safety and health.”
The DOL further states that incentive programs can be an important tool to promote workplace safety and health and that most instances of workplace drug testing are permissible under 29 C.F.R. § 1904.35(b)(1)(iv).
The memo supersedes other OSHA interpretive documents that could be considered inconsistent with the new memo. This includes:
Guidance on OSHA’s website, entitled “Improve Tracking of Workplace Injuries and Illnesses” (issued October 19, 2016) (Appendix B);
A Memorandum from Dorothy Dougherty to the OSHA Regional Administrators and State Designees entitled “Interim Investigation Procedures for 29 C.F.R. 1904.35(b)(1)(iv)” (November 10, 2016) (Appendix D).
Note: This DOL interpretation letter explains OSHA requirements, as set by statute, standards, and regulations, and how they apply to particular circumstances. However, the interpretation does not create additional employer obligations and may be impacted by changes to OSHA rules.
Read the standard interpretation
On October 11, 2018, the Social Security Administration (SSA) announced that Social Security and Supplemental Security Income (SSI) benefits for more than 67 million Americans will increase 2.8 percent in 2019. The 2.8 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 62 million Social Security beneficiaries in January 2019. Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2018. (Note: Some people receive both Social Security and SSI benefits). The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.
Information about Medicare changes for 2019, when announced, will be available at www.medicare.gov. The Social Security Act provides for how the COLA is calculated. To read more, visit www.socialsecurity.gov/cola. See a fact sheet showing the effect of the various automatic adjustments.
On October 4, 2018, the federal Equal Employment Opportunity Commission (EEOC) announced preliminary fiscal year (FY) 2018 sexual harassment data. What You Should Know: EEOC Leads the Way in Preventing Workplace Harassment addresses the EEOC’s role in enforcement, education, and training for workers and employers, and offers new solutions to reduce harassing conduct in the workplace.
The EEOC’s training program, “Respectful Workplaces,” launched in October 2017 and teaches skills for employees and supervisors to promote and contribute to respect in the workplace. More than 9,000 employees and supervisors in the private, public, and federal sector work forces participated in Respectful Workplaces trainings this past fiscal year. An additional 13,000 employees participated in EEOC’s antiharassment compliance trainings.
USCIS Notice to Appear Policy Memorandum Not Applicable to Employment-Based Petitions
On September 27, 2018, the United States Citizenship and Immigration Service (USCIS) clarified that its Notice to Appear (NTA) policy memorandum (PM), released June 28, 2018, providing guidance on when the USCIS may issue Form I-862, Notice to Appear, will not be implemented with respect to employment-based petitions and humanitarian applications and petitions. Existing guidance for these case types will remain in effect.
An NTA is a document that instructs an individual to appear before an immigration judge. This is the first step in starting removal proceedings. Beginning October 1, 2018, USCIS may issue NTAs on denied status-impacting applications, including but not limited to, Form I-485, Application to Register Permanent Residence or Adjust Status, and Form I-539, Application to Extend/Change Nonimmigrant Status.
The USCIS will send denial letters for status-impacting applications that ensures benefit seekers are provided adequate notice when an application for a benefit is denied. If applicants are no longer in a period of authorized stay, and do not depart the United States, the USCIS may issue an NTA. The USCIS will provide details on how applicants can review information regarding their period of authorized stay, check travel compliance, or validate departure from the United States.
According to the USCIS, it will continue to prioritize cases of individuals with criminal records, fraud, or national security concerns and will continue the current processes of using our discretion in issuing NTAs on these case types.
The updated policy affects the following categories of cases where an individual is removable:
Cases where fraud or misrepresentation is substantiated, and/or cases where there is evidence the applicant abused any program related to receiving public benefits. The USCIS will issue an NTA in these cases, even if it denies the case for reasons other than fraud.
Criminal cases where an applicant is charged with (or convicted of) a criminal offense, or committed acts that are chargeable as a criminal offense, even if the criminal conduct was not the basis for the denial or the ground of removability. The USCIS will, where circumstances warrant, refer cases to ICE without issuing an NTA or adjudicating an immigration benefits.
Cases where the USCIS denied a Form N-400, Application for Naturalization, on good moral character grounds because of a criminal offense.
Cases where an applicant will be unlawfully present in the United States when the USCIS denies the petition or application.
The PM did not change USCIS policy for any of the following categories:
Cases involving deferred action for childhood arrivals (DACA) recipients and requestors when processing an initial or renewal DACA request or DACA-related benefit request; or processing a DACA recipient for possible termination of DACA. Read the PM that applies to cases involving DACA recipients and requestors.
On September 24, 2018, the IRS announced that eligible employers who provide paid family and medical leave to their employees may qualify for a new business credit for tax years 2018 and 2019. Additionally, eligible employers who set up qualifying paid family leave programs or amend existing programs by December 31, 2018, will be eligible to claim the employer credit for paid family and medical leave, retroactive to the beginning of the employer’s 2018 tax year, for qualifying leave already provided.
In Notice 2018-71, the IRS provided detailed guidance on the new credit in a question and answer format. The credit was enacted by the 2017 Tax Cuts and Jobs Act (TCJA). The notice also clarifies how to calculate the credit including the application of special rules and limitations.
Read Notice 2018-71
On September 21, 2018, the Internal Revenue Service announced (Notice 2018-75) that employer payments or reimbursements in 2018 for employees’ moving expenses incurred prior to 2018 are excluded from the employee’s wages for income and employment tax purposes.
To qualify, reimbursements or payments must be for work-related moving expenses that would have been deductible by the employee if the employee had directly paid them prior to January 1, 2018. The employee must not have deducted them in 2017.
See Form 3903 or Publication 521 for more information on the 2017 rules.
Read Notice 2018-75
Treasury and IRS to Launch Redesigned W-4 Form in 2020
On September 20, 2018, the Treasury Department announced that the IRS will implement a redesigned W-4 form for tax year 2020, a timeline that will allow for continued work to refine the new approach for the form. As a result of the enactment of the 2017 Tax Cuts and Jobs Act, the Treasury Department and the IRS are revising the wage withholding system and Form W-4, Employee’s Withholding Allowance Certificate. In June 2018, the IRS released a draft redesigned form for public comment and received many suggestions for improvements, which they are working to integrate.
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