News & Analysis as of

Termination Payments

Amundsen Davis LLC

[Webinar] Illinois Paid Leave/Sick Leave Mandates – Employers, Are You Ready? - March 13th, 10:00 am CT

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The recently overhauled paid leave ordinances in Illinois include: Illinois Paid Leave For All Workers Act (effective January 1, 2024), Cook County Paid Leave (effective February 1, 2024) and the City of Chicago Paid Leave...more

Cozen O'Connor

Top (Bottom?) Ten of Tax Headaches (Challenges) for Municipal Bond Issuers

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Sometimes the first step to solving (or mitigating or avoiding) problems is to identify what the problem may be to, among other things, put time on one’s side. For issuers of tax-exempt municipal bonds, there tend to be...more

Conn Kavanaugh

Late Payment of Wages Means Triple Liability for Employers Even If Wages Are Paid Before Suit is Filed

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On April 4, 2022, the Massachusetts Supreme Judicial Court (“SJC”) dispelled the notion that employers can avoid triple liability for late payment of wages under the Massachusetts Wage Act, M.G.L. c. 149, § 148 (“Wage Act”),...more

A&O Shearman

Delaware Court Of Chancery Denies Billion-Dollar Damages In Cigna-Anthem Row

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On August 31, 2020, Vice Chancellor J. Travis Laster of the Delaware Court of Chancery ruled that neither Cigna Corporation (“Cigna”) nor Anthem, Inc. (“Anthem”) were entitled to the billions of dollars in damages and fees...more

Kramer Levin Naftalis & Frankel LLP

Second Circuit Holds That So-Called “Flip” Clause Payments Are Protected by Section 560 of the Bankruptcy Code

In Lehman Brothers Special Financing Inc. v. Branch Banking & Trust Co. (In re Lehman Brothers Holdings Inc.), No. 18-1079, --F.3d--, 2020 WL 4590247 (2d Cir. Aug. 11, 2020), the Second Circuit held that provisions in a swap...more

Faegre Drinker Biddle & Reath LLP

Second Circuit Holds That CDO Swap Payment Priority-Shifting Provisions Are Covered by Section 560 Safe Harbor

After nearly 10 years of litigation, the Second Circuit has weighed in on an appeal in an adversary proceeding arising out of the Lehman Brothers bankruptcy. The August 11, 2020, decision confirms that a trustee’s termination...more

Cadwalader, Wickersham & Taft LLP

Second Circuit’s Lehman Flip Clause Decision Continues the Expansion of the Bankruptcy Code Safe Harbors

On August 11, 2020, the United States Court of Appeals for the Second Circuit affirmed lower court decisions rejecting Lehman Brothers Special Financing Inc.’s (“LBSF”) attempt to recover nearly $1 billion in payments to...more

Orrick, Herrington & Sutcliffe LLP

Second Circuit Affirms Enforceability of Flip Provisions in Swap Agreements Under Bankruptcy Code Safe Harbor

For over a decade, Lehman Brothers Special Financing (“LBSF”) has been litigating the enforceability of so-called “flip clauses” in connection with the post-bankruptcy liquidation of swap agreements. These clauses, which are...more

Dechert LLP

Termination Payments - Changes to the taxation of UK termination payments

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In this OnPoint, we report on two changes to the taxation of termination payments to departing employees of which employers need to be aware – first, the levying with effect from 6 April 2020 of employer’s national insurance...more

A&O Shearman

Corruption and its Effect on Termination Payments: Lessons for LatAm Project Finance Transactions

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A Landmark Decision in the Ruta del Sol Arbitration Against ANI Provides Valuable Lessons for Developers and Financiers of Projects in Latin America - The landmark decision in the Ruta del Sol arbitration against the...more

Hutchison PLLC

How Companies Address #MeToo Claims in Executive Employment Agreements Matter

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In a recent working paper, researchers at UCLA and the University of Amsterdam determined that a single sexual harassment claim can cause more damage to a company’s reputation than financial misconduct or fraud. In this...more

Littler

Out With The Old, In With The New: Changes To Termination Payments And Statutory Rates In The United Kingdom

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Spring has sprung in the United Kingdom – a good time for a reminder of the annual statutory rate changes for employers, along with other changes to the taxation of termination payments. The following summary of these changes...more

Katten Muchin Rosenman LLP

Employment Matters – UK, Featuring Topics on Gender Pay Gaps, Termination Payments, Sexual Harassment, Compensation Limits,...

Mythbusters: What Do the Gender Pay Results Really Mean? The gender pay gap figures have been a hot topic over the past few weeks as the 2018 deadline for reporting has passed. With approximately 1,500 qualifying employers...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

A New Regime: Changes to the Tax and National Insurance Contributions Treatment of Termination Payments in the UK to Take Effect...

On April 6, 2018, there will be an important change to the way termination payments are taxed in the United Kingdom. New tax rules, which aim to simplify the taxation of termination payments, will mean that income tax and...more

Faegre Drinker Biddle & Reath LLP

Changes to the Taxation of Termination Payments

The U.K. government has introduced the following changes to termination payments which will apply from 6 April 2018: - Where an employer has no contractual right to make a payment in lieu of notice, but decides to make a...more

Proskauer - Law and the Workplace

Unused Sick Time Does Not Count as Wages under Massachusetts Wage Act

On January 29th, Massachusetts’ Supreme Judicial Court held that accrued, unused sick time does not count as wages under state employment law, as employment lawyers in Massachusetts had previously anticipated....more

Sheppard Mullin Richter & Hampton LLP

Sixth Circuit Provides Clarification On Legality Of Draw-On-Commission Policy

Last month, the Sixth Circuit revived a lawsuit brought under the Fair Labor Standards Act (“FLSA”) alleging that a retailer’s commission policy was unlawful in Stein v. hhgregg, Inc., 2017 U.S. App. LEXIS 19908 (6th Cir....more

Orrick, Herrington & Sutcliffe LLP

IRS Reverses its Position Regarding the Treatment of Merger Breakup Fees

In July 2014 AbbVie Inc. and Shire Plc's announced a $54.8 billion merger deal that would have made AbbVie the largest U.S. company to move its legal residence, though not its operations, abroad in order to lower its tax rate...more

Seyfarth Shaw LLP

Need to Know: Recent and Upcoming Changes to the UK’s Employment Law Landscape

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New legislation due to come into force in April 2017 requiring employers to publish details of their average pay for men and women - New Gender Pay Gap Reporting obligations are expected to come into force in April 2017....more

Proskauer Rose LLP

A Month in UK Employment Law - November 2016

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Taxation of termination payments draft legislation published - At present, in certain circumstances the first £30,000 of a termination payment is exempt from income tax and national insurance ("NIC"). However, there have...more

Arnall Golden Gregory LLP

No Termination Payment for You!

I was recently asked whether the US had any regulations similar to the EU’s Commercial Agent Regulations–pursuant to which, upon termination or expiration of certain agency contracts, the agent would be entitled to an...more

McDermott Will & Emery

UK Employment Alert: Changes To The Taxation Of Termination Payments

The government has published its response to feedback received on its proposals to simplify the taxation of termination payments, expected to come into force in April 2018. The following table sets out the main proposals...more

Faegre Drinker Biddle & Reath LLP

Proposed Changes to the Taxation of Termination Payments

Following a consultation on the taxation of termination payments launched in summer 2015, the U.K. government has proposed a number of measures intended to take effect in April 2018, including: - Making all payments in...more

McDermott Will & Emery

Changes To The Taxation Of Termination Payments

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Summary - The government has published its response to feedback received on its proposals to simplify the taxation of termination payments, expected to come into force in April 2018. The following table sets out...more

Dechert LLP

Government Set to Overhaul Taxation on Termination Payments

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Currently, non-contractual compensation payments made solely on account of termination of an individual’s employment enjoy a favourable tax treatment in two respects – the payment can be made without deduction of income tax...more

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