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Non-Disclosure Agreement Tax Deductions

Miles & Stockbridge P.C.

Non-Disclosure Agreements and Arbitration Clauses in the #MeToo Era

With the proliferation of the #MeToo movement in late 2017 came concerns over the role that employment contracts and settlement agreements played in concealing abuse by high-level executives. Confidentiality, non-disclosure...more

Payne & Fears

Non-Disclosure Agreements in the World of #MeToo

Payne & Fears on

The #MeToo movement and recent wave of sexual harassment claims against high-profile indivduals has greatly increased scrutiny of the use of nondisclosure agreements in settlement agreements involving sexual misconduct...more

Jackson Lewis P.C.

No Tax Deduction For Sexual Harassment Settlements Subject To Confidentiality Provision

Jackson Lewis P.C. on

Congress recently passed the 2017 Tax Cuts & Jobs Act which includes Internal Revenue Code §162(q). Specifically, § 162(q) provides:- No deduction is allowed for any settlement or payment related to sexual harassment or...more

Bond Schoeneck & King PLLC

#MeToo Meets the Internal Revenue Code

The “Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for the fiscal year 2018” a.k.a. the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) will, among other things, likely...more

Gray Reed

How to Avoid Trumping Non-Disclosure Agreements

Gray Reed on

In the summer of 2016 Stormy Sultry aka Peggy Peterson and Dennis Duck aka David Dennison engaged in some alleged hanky-panky....more

Skadden, Arps, Slate, Meagher & Flom LLP

Employment Flash - April 2018

This edition of Employment Flash looks at recent court decisions, including the U.S. Supreme Court's rulings on cases relating to the definition of a whistleblower and exemptions from the overtime pay provisions. This edition...more

Whitman Legal Solutions, LLC

Why the Tax Cuts and Jobs Act May Not Always Help Sexual Harassment Victims

...Recently there has been public outrage over learning that a number of powerful individuals and institutions repeatedly had entered into confidential settlements of sexual harassment and sexual abuse claims (I’ll call both...more

Spilman Thomas & Battle, PLLC

#MeToo Movement Creates Change in Tax Code

During the height of the #MeToo movement and in the wake of the Harvey Weinstein scandal, Congress enacted a sweeping tax reform bill containing a provision intended to penalize businesses who settle claims involving sexual...more

Hogan Lovells

#MeToo Movement’s Impact on Nondisclosure Agreements or Clauses Covering Sexual Harassment

Hogan Lovells on

Employers and employees entering into separation or settlement agreements have traditionally agreed to nondisclosure clauses that prohibit disclosure of the agreement or the circumstances leading to its execution. ...more

Maynard Nexsen

Employee Benefits and the Tax Cuts and Jobs Act

Maynard Nexsen on

As we move into the second quarter of 2018, now is a good time to remind employers about the significant impact of the Tax Cuts and Jobs Act (TCJA) on employee benefits. While some of these issues may not affect the taxation...more

McAfee & Taft

Confidential sexual harassment settlement payments no longer tax-deductible

McAfee & Taft on

In a workplace era that may soon be referred to as “Pre-Weinstein,” employers not only could quietly settle sexual harassment claims by including a nondisclosure agreement that virtually assured the matter would be kept...more

Nelson Mullins Riley & Scarborough LLP

Employer Tax Deductions for Confidential Sexual Harassment Settlements Are No More

The #MeToo sexual harassment awareness movement is more than a viral hashtag. #MeToo advocates gained notoriety as TIME magazine's “Person of the Year,” were heralded by Oprah Winfrey at the Golden Globes, and challenged...more

Dentons

Time's Up For Tax Breaks On Secret Settlements

Dentons on

#TimesUp and #metoo has dominated the news cycle for months. With the public spotlight on the Harvey Weinstein, Matt Lauer, and Larry Nassar scandals, some people fear confidential settlement agreements may perpetuate sexual...more

Bricker Graydon LLP

No tax deduction for sexual harassment payments subject to NDAs

Bricker Graydon LLP on

Parts of the Tax Cuts and Jobs Act that took effect January 1, 2018, have amended Section 162 of the Internal Revenue Code to eliminate tax deductions for settlements, payouts and attorney’s fees “related to sexual harassment...more

FordHarrison

Be My Valentine! – BUT First Please Review and Sign Below

FordHarrison on

Executive Summary: This Valentine’s Day, employers across industries were reevaluating their workplace dating and sexual harassment policies. Various surveys show that 40 percent of workers date or have dated co-workers. ...more

Conn Maciel Carey LLP

Taxing Decisions: New Rules on Deductions and Credits in the Employment Context

Conn Maciel Carey LLP on

As many individuals turn their attention to preparing and filing their tax returns on or before April 15, there are two notable changes to the tax code of which employers should take note. These changes, tucked away in the...more

Robinson+Cole Manufacturing Law Blog

Government Initiatives in Response to Wave of Harassment Allegations Challenges Manufacturers

Two recent developments, generated from the tidal forces of the #MeToo movement should get manufacturers’ attention. On December 22, 2017, Congress adopted a comprehensive tax reform law. Included in the statute is an...more

Perkins Coie

New Tax Bill Eliminates Deductibility of Confidential Sexual Harassment Settlements

Perkins Coie on

Although business-related settlement payments (and attorneys’ fees) are generally tax-deductible, the 2017 Tax Cuts and Jobs Act (the Tax Act) restricts an employer’s ability to obtain tax deductions for settlements of sexual...more

Holland & Knight LLP

Tax Reform Impacts Confidentiality in Sexual Harassment Settlements

Holland & Knight LLP on

The recently enacted Tax Cuts and Jobs Act (the Act) contains a largely unnoticed provision worth the attention of human resources professionals and legal counsel who draft and implement settlement agreements and releases of...more

Jackson Lewis P.C.

Beyond The Weinstein Effect: It’s More Than Just Training

Jackson Lewis P.C. on

In light of the many high-profile news stories involving sexual harassment, employers are cognizant of the need to update policies, improve investigation procedures, and conduct training. However, there is more going on than...more

Kelley Drye & Warren LLP

The Rising Cost of “Hush Money” – Congress Strips Tax Incentives for Sexual Harassment Nondisclosure Agreements

You can count Congress among the institutions caught in the ground swell of the #MeToo movement, and they’re using the tax code to prove it. Buried in the various changes of the new tax bill, Congress included Section...more

Seyfarth Shaw LLP

Sexual Harassment Legal Settlements: What Employers Need To Know About The New Tax Act

Seyfarth Shaw LLP on

Seyfarth Synopsis: The new Tax Act prohibits employers from deducting payments to individuals alleging sexual harassment or sexual abuse if the settlement or payment requires the Claimant to execute a nondisclosure agreement....more

Roetzel & Andress

Harvey Weinstein, Tax Reform, And Nondisclosures - Oh My!

Roetzel & Andress on

There is no doubt that the movement known as #MeToo has brought workplace sexual harassment to the forefront of conversation and is both a top priority and concern for all employers. One of the many names associated with this...more

Dorsey & Whitney LLP

Employers Beware: Tax Law Change Eliminates Tax Deductions Relating to Certain Settlements

Dorsey & Whitney LLP on

The #MeToo movement has had far-reaching implications and appears to have influenced the new federal tax law. The legislation contains a provision that has received little attention but that may have serious, unintended...more

Ervin Cohen & Jessup LLP

New and Proposed Tax Legislation Present New Difficulties for Employers Attempting to Settle Sexual Harassment Claims

Most employers have heard of the Tax Cuts and Jobs Act, signed into law on December 22, 2017, and have contemplated what it may mean for them. What has been largely overlooked, however, is a denial of deduction buried deep in...more

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