IRS Orders Immediate Stop to New Employee Retention Credit Claims and Announces Future Settlement Program

The Employee Retention Tax Credit (“ERC”), enacted as a part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), is a fully refundable tax credit for employers, which is up to $26,000 per eligible employee. Because of the potentially large value of the ERC to employers, the Internal Revenue Service (“IRS”) has become…

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Department of Labor Proposes Exempt-Status Overhaul

On August 30, 2023, the U.S. Department of Labor (DOL) proposed significant increases in the compensation thresholds that must be met for employees to be classified as exempt from overtime pay requirements under the Fair Labor Standards Act (FLSA). If the proposal is finalized as presented, DOL estimates that 3.6 million employees currently classified as…

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Fifth Circuit Upends 30 Years of Title VII Precedent, Making it Easier for Employees to Bring Discrimination Claims

Last week, the Fifth Circuit Court of Appeals upended longstanding, employer-friendly precedent in cases brought under Title VII of the Civil Rights Act. For decades, an employment discrimination plaintiff in the Fifth Circuit had to demonstrate the “adverse employment action” forming the basis of their complaint constituted an “ultimate employment decision”—which the Court of Appeals…

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EEOC Releases Expansive Proposed Regulations to Implement the Pregnant Workers Fairness Act

The Equal Employment Opportunity Commission (EEOC) has released proposed regulations under the Pregnant Workers Fairness Act (PWFA) that include an expansive reading of the requirements imposed by the law. Among the proposed regulations is a proposed rule requiring employers to consider eliminating one or more essential functions of a job for up to 40 weeks…

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