10/04/2011
Executive Briefing is an electronic newsletter that focuses on emerging developments in employment, labor law and employee benefits. View the full text version of Executive Briefing. The following topics are included in the October issue:
The President's Proposed Jobs Act Affects Employers and Taxes Some Employer-Provided Health Benefits President Obama presented a new jobs bill before Congress. If enacted, the bill would extend the period of reduced payroll taxes into 2012, provide tax credits to employers for certain forms of hiring, make funds available to states to keep teachers, police and firefighters employed, and extend benefits for unemployed workers.
Jobs Act Prohibits Discrimination Against Unemployed President Obama's proposed jobs bill also effectively prohibits discrimination against unemployed job applicants by employers.
EEOC Would Increase Employer's Burden in Dealing with Drug and Alcohol Abuse Can a trucking company permanently bar a driver from a driving position if the driver self-reports alcohol abuse? The EEOC has sued in federal court to challenge such a policy, contending that the driver is a qualified individual with a disability who can perform the essential functions of the job.
New Guidance on the Taxation of Employer-Provided Cell Phones The IRS issued Notice 2011-72 and an accompanying memorandum to provide guidance on the tax treatment of cell phones provided by employers. The final result of this treatment is that the value of the cell phone is excludable from the employee's income.
Employee or Independent Contractor? More Enforcement, Easier IRS Resolution Secretary of Labor Hilda Solis signed a memorandum of understanding with the IRS that will lead to increased sharing of information on how employers classify their workers.
The IRS announced a new correction program for employers who have been misclassifying workers as independent contractors and wish to voluntarily correct the issue ongoing.
Strippers Are Employees Too The United States District Court for the Northern District of Georgia recently ruled that approximately 80 current and former nude dancers at The Onyx Club (in Atlanta) should be classified as employees rather than independent contractors for FLSA purposes.
Immigration UpdatesIt has been almost four years since employers have received "no-match" letters from the U.S. Social Security Administration (SSA). However, in April 2011, the SSA announced that it will resume sending these letters for tax year 2010. Self Check, a free Internet-based service of E-Verify, allows an individual to use the same information that employers enter into E-Verify and check it against the same databases that E-Verify checks.
Labor Law Updates Legislators have been busy in the House lately as several bills have been introduced that would curtail the NLRB's authority.