News & Analysis as of

Sexual Harassment Tax Reform

Morgan Lewis

New Laws And Regulations: Insights For 2020

Morgan Lewis on

A constantly evolving framework of laws governing how multinational businesses can contact customers to how nonprofits report business income to how overtime is calculated and paid will influence how companies do business...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

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

Littler

From Settlement Disclosures to Retaliation: A Summary of Sexual Harassment Legislation in 2018

Littler on

After a tumultuous 2017, federal, state, and local governments have spent the start of 2018 reconsidering their approach toward sexual harassment in the workplace. ...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

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

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

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

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

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

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

Morgan Lewis

Guide To The New Rules For The Deductibility Of ‘Misconduct’ Payments: Government- And Quasi-Government-Imposed Penalties, Fines,...

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Recent US tax reform legislation P.L. 115-97, commonly known as the Tax Cuts and Jobs Act, made sweeping changes to when and how a taxpayer will be able to deduct payments made to settle claims of particular acts of...more

Cozen O'Connor

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

Cozen O'Connor on

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

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

Gray Reed

New Tax Law – Impacting Your Small Business and You

Gray Reed on

Agreeing with Benjamin Franklin that there is nothing certain except death and taxes, Sketch Wood and his partner Minnie Brix, owners of Wood & Brix, and their 200 employees are certain that the new tax law will affect them,...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

Morgan Lewis

New Tax Reform Brings Changes to Taxation of Settlements

Morgan Lewis on

Settlements with the government and those related to sexual harassment claims, as well as certain attorney’s fees, will be impacted by newly disallowed deductions....more

Sherman & Howard L.L.C.

#MeToo Impacts Harassment Damages/Taxes

The recently-enacted Tax Cut and Jobs Act (the “Tax Act”) includes an unheralded change to the tax law that will directly affect sexual harassment settlements. As a direct result of the recent highly-publicized cases...more

Arnall Golden Gregory LLP

Legal Issues Business Leaders Need to Know in 2018

In recent years, the CFPB has struck fear into the C-suites of financial services companies. The agency was extraordinarily active in rulemaking that addresses every aspect of lending, prepaid cards and arbitration clauses in...more

Manatt, Phelps & Phillips, LLP

Employment Law - January 2018

New Tax Bill Deletes Deduction for Sexual Harassment Settlements - Why it matters - Employers, take note: The new Tax Cuts and Jobs Act contains a provision that prohibits deductions for settlements or payments related...more

Jackson Lewis P.C.

2018 Tax Reform Series: Change To Employer Deduction Rules

Jackson Lewis P.C. on

This is the sixth article in our series covering the various tax and employee benefits-related changes contained in the Tax Cuts and Jobs Act signed by the President on December 22, 2017. One surprising change made by the...more

Akerman LLP

Tax Reform: New Act Eliminates Deduction For Settlement Of Sexual Harassment Claims Subject To A Confidentiality Agreement

Akerman LLP on

In a little noticed and controversial provision, the Tax Act created a new Internal Revenue Code provision (Code Sec. 162(q)), that eliminates a business expense deduction for: (1) “any settlement or payment related to sexual...more

FordHarrison

Another Employer Deduction Bites the Dust

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You have probably heard about the many tax deductions that you are losing (or have lost) as a result of the new tax law (known as the Tax Cuts and Jobs Act, or TCJA). But, if you are an employer, one that you may not have...more

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