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Sexual Harassment Tax Deductions

Skadden, Arps, Slate, Meagher & Flom LLP

Key Trends in Executive Compensation, Employment Law and Compensation Committee Practices

On January 29, 2020, Skadden hosted the webinar “Key Trends in Executive Compensation, Employment Law and Compensation Committee Practices” presented by panelists Michael Bergmann, Executive Compensation and Benefits counsel;...more

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

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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

Obermayer Rebmann Maxwell & Hippel LLP

IRS Clarifies the New Section 162(q) Related to the Settlement of Sexual Harassment Claims

On February 28, 2019, the IRS posted an FAQ clarifying Section 162(q) of the Internal Revenue Code, which was added by the 2017 Tax Cuts and Jobs Act. As previously summarized by HR Legalist, a strict reading of Section...more

Fox Rothschild LLP

Take-Aways From The Cornell HR In Hospitality Conference

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I just returned (and yes, detoxed) from the Cornell HR in Hospitality Conference in Las Vegas. I presented on wage-and-hour issues at the FLSA Unconference, and participated in a roundtable where attendees were able to...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

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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

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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

Jones Day

U.S. Tax Reform Denies Deductions for Confidential Sexual Harassment Settlements

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The recently enacted tax reform bill includes a provision that significantly affects how employers settle sexual harassment claims. Section 13307 of the Tax Cuts and Jobs Act provides that no deduction is permitted for...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

Hogan Lovells

Three new acts change tax and employee benefit rules and might require employer action

Hogan Lovells on

Congress and the Administration have been busy recently, enacting not only the "Tax Cuts and Jobs Act" or "TCJA" on December 22, 2017, but also a Continuing Resolution on January 23, 2018, and the Bipartisan Budget Act of...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

Troutman Pepper

Confidential Harassment Settlements No Longer Subject To Tax Deduction

Troutman Pepper on

Q.  Has the #MeToo Movement led to any changes on how companies settle harassment complaints? A.  While there are numerous legislative initiatives on the horizon intended to change how employers handle harassment...more

Perkins Coie

New Tax Bill Eliminates Deductibility of Confidential Sexual Harassment Settlements

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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

Cozen O'Connor

II-26 – Superbowl Concerns, Tax Reform/MeToo, Restrictive Covenant Crimes, and Expanded Religious Discrimination Theories

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Is the Superbowl creeping into your workplace this week? Does Washington’s new tax reform impact how you settle sexual harassment cases? Can you actually go to jail for signing a restrictive covenant? Is there a new kind of...more

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