In this LIVE Webcast, a panel of thought leaders and professionals brought together by The Knowledge Group will provide and present an in-depth analysis of the fundamentals as well as recent developments in Latest Trends in ESOP Litigation: Hot-Button Issues to Watch for in 2022.
As the 2020 proxy season comes to a close, we reflect on the third year that CEO pay ratio disclosure under Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 402(u) of Regulation S-K has been required annual disclosure for public companies. Compliance should be easier for companies that have already made pay ratio disclosures in 2018, 2019 and 2020. However, companies that have been using the same median employee will need to dust off employee census data and identify a new median employee next year whose compensation will be the basis of comparison. The impact of COVID-19 on the corporate workforce may also necessitate identifying a new median employee for companies that have initiated a reduction in force.
Supporting diversity in the workplace is an essential factor that organizations must consider to ensure their success. With an ample understanding of how to effectively manage diversity and inclusion, companies will have an upper hand when it comes to recruiting and hiring talents. However, it has also become a challenge for this generation's leadership to make their organization more diverse and inclusive.
Regulatory uptakes on anti-competitive restrictions in labor markets is expected to ramp up with the Department of Justice (DOJ) Antitrust Division and the Federal Trade Commission (FTC) in the lead. Recently, the DOJ filed Statement of Interest on several pending cases to provide courts with significant guidance on the analysis of “no-poach” agreements and clarified that alleged cases of “no-poach” agreements do not automatically warrant per se review.
Diversity and Inclusion (D&I) is becoming an essential factor in workplace management. An inclusive corporate culture makes everyone feel valued, thus, boosting employee engagement and experience. D&I is also credited for improving corporate innovation and bottom line thru higher performing and more creative workforce.
Issues concerning employee misclassification continue to grow, as employers often misunderstand the legal distinctions between employees and independent contractors. While many employers are tempted to hire and classify their workers as independent contractors, they often fail to appreciate both the legal requirements necessary to accomplish this, and the disastrous financial outcomes that can result from their mistake. It is essential that employers understand and follow the complex and often confusing rules issued by state and federal agencies as well as the U.S. courts.
The COVID-19 virus has posed unprecedented challenges for employers of all sizes. Agencies at the federal, state, and local levels are issuing a stream of guidance and orders that are updated on a daily basis. Relatedly, employers are trying to familiarize themselves with the obligations imposed and benefits conferred by a barrage of new legislation.
The fiscal year 2020 continues to be a dynamic year for employee retirement plans as changes and cases continue to shape the area. Primarily, the U.S. Supreme Court agreed to review three cases relating to the Employee Retirement Income Security Act (ERISA), which involves a range of significant issues. Whereas at the circuit court level, several high-profile lawsuits are emerging that could attract the attention of judges.
During the Covid-19 crisis, some companies had compensation plans with entirely financial metrics that would pay out at zero, while other experienced tailwinds. In both cases, many companies made adjustments to short and long-term plans to respond to the unprecedented year.
The Setting Every Family Up for Retirement (SECURE) Act was signed into law last December 2019 as part of the year-end spending bill. Comprising nearly 30 provisions, the SECURE Act implements various measures aimed at improving retirement savings security. It also includes significant requirements designed to increase access to tax-advantaged accounts, as well as easier avenues for small and medium-sized companies to participate in pension plans for their employees.
Class actions alleging labor law violations continue to hound employers throughout the country. As the volume of these cases increases, new court rulings also continue to emerge and reshape the litigation landscape. Anticipated court rulings which employers should follow in 2020 include Retirement Plans Committee Of IBM v. Jander, et al., Intel Corp. Investment Policy Committee v. Sulyma, et al., and Thole, et al. v. U.S. Bank, N.A.