On August 30, 2023, the U.S. Department of Labor’s Wage and Hour Division unveiled the details of its much-awaited Notice of Proposed Rulemaking. This notice pertains to the salary requirements of the Fair Labor Standards Act’s overtime exemption for executive, administrative, and professional employees. The announcement is among the Department’s most anticipated rulemakings of the…
In a significant announcement from the Department of Labor (DOL) on August 30, 2023, a proposed rule change concerning the Fair Labor Standards Act (FLSA) overtime exemptions has been put forward. The most noticeable impact of this rule would be a considerable increase in the standard salary threshold for “white collar” exemptions, rising from $684…
The Florida Governor, Ron DeSantis, successfully pushed through comprehensive tort reform last December, a move celebrated by many Florida residents despite their limited understanding of tort laws. Now, however, as insurance companies begin to reject claims in the wake of ‘Hurricane Idalia’, the real effects of the reform are starting to hit home. This move…
Manufacturing conglomerate 3M Co. faces uncertainty over its proposed $6 billion settlement relating to accusations that the company sold defective combat earplugs to the US military. This proposed figure could falter if substantial numbers of veterans refuse the deal. They allege that the figure is insufficient compensation for the life-altering injuries they sustain as a…
In the realm of law practice, attention often gravitates towards Biglaw, yet it is lesser-known that the overwhelming majority of attorneys are employed in modest-size firms comprising fewer than 20 lawyers. This leaves many of these attorneys left to wonder how their income measures up in comparison to their peers in larger firms whose market…
Executive deferred compensation remains one of the most potent income sources for high-level executives, yet it is often overlooked during legal proceedings due to the complex and sometimes mystifying nature of its structure. Legal professionals who are looking to more tangibly grasp this form of compensation may find that it not only broadens their perspective…
A Minnesota federal judge’s recent decision has allowed Lockheed Martin to recover attorney fees it incurred while contesting an unsuccessful retaliation case thrown by a previous lawyer. However, it was mentioned that the final compensation amount awarded to Lockheed still needs to be ascertained. The ruling determined the company’s bid for sanctions and reconsiderations was…
On August 23, 2023, the Securities and Exchange Commission (SEC) voted to adopt new and amended rules under the Investment Advisers Act of 1940. In a three to two vote, the SEC passed the Final Rules, requiring advisers to private funds, or Private Fund Advisers, to implement additional disclosures and restricts certain types of preferential…
An opportunity arose last week when the IRS delayed its enforcement of the new law that mandates workers earning over $145,000 a year to make catch-up contributions solely on a Roth (post-tax) basis. This hold, which extends until 2026, was influenced by the efforts of the benefits community and retirement plan sponsors who called on…
In a significant decision regarding employment law, the Fifth Circuit Court of Appeals expanded Title VII coverage through its ruling on the Hamilton, et al. v. Dallas County case on August 18, 2023. This decision constitutes a reversal of a nearly 30-year old line of precedent. Previously, actionable employment actions under Title VII were constrained…
The Internal Revenue Service (IRS) has announced a two-year administrative transition period, effectively delaying the Roth Catchup deadline provision of the Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act to 2026. This update was enacted through Notice 2023-62. The initial SECURE 2.0 rule stipulated that catch-up contributions—extra contributions to retirement savings that an…
In response to evolving expectations and needs in the legal field, firms are shifting their focus beyond the traditional lure of compensation. With the catalyst being the pandemic, law firms are now grappling with novel demands for quality of life and a positive firm culture. This transformation is being spearheaded by attorneys, staff and clients…
The term “regular rate of pay,” often misunderstood within legal and employers communities, can complicate wage calculations for non-exempt hourly employees. By law, these employees are entitled to receive an overtime rate that is at least one and a half times their regular rate of pay. However, issues can surface when these non-exempt employees receive…
C3.ai Inc., a software development company, has disclosed details about the severance package of its former General Counsel Richard “Chip” Lutton Jr. According to Lutton’s employment agreement, if he was terminated without a cause within his first year of service, 20% of his restricted stock unit (RSU) awards would immediately vest. As the proxy statement…
Above the Law annually publishes a comprehensive report about in-house lawyers’ compensation. As a part of this annual custom, it is once again time to collect data for this year’s report. If you are an in-house attorney interested in participating, you are kindly requested to contribute by completing a brief, completely anonymous survey. Central to…
In a significant precedent involving the Fair Labor Standards Act (FLSA), the U.S. Court of Appeals for the Third Circuit recently overruled a federal district court’s prior ruling on oil rig workers and their entitlements to compensation for time spent changing into and out of protective gear. The case in question is titled Tyger v….
In a recent decision from the Fifth Circuit Court of Appeals in the case of Hamilton v. Dallas County, a significant change was established regarding the standard for pleading Title VII claims. The court’s ruling determined that plaintiffs no longer need to articulate an “ultimate employment decision” before alleging a claim for disparate treatment under…
Legal professionals and corporate entities should be aware of recent guidance issued by the Internal Revenue Service (IRS) regarding a delay to the SECURE Act 2.0. The implementation of the provision mandating that any age 50 catch-up contributions by an employee with prior-year compensation over $145,000 be made on a Roth basis — instead of…
A growing number of US companies are now obliged to disclose salaries upfront to job applicants and current employees. However, in an effort to further address wage disparities and brain bias in promotions, legislators are calling for improved transparency surrounding opportunities for advancement. Legislation passed in Illinois this year has included provisions for such “opportunity…
Within Allen & Overy, an unanticipated shift has resulted in Abu Dhabi dealmaker Khalid Garousha being given a significant part to play as the firm is closing in on its merger with Shearman & Sterling, a key move in securing the firm’s future. Garousha was designated as the UK firm’s second in command in July…
Legal professionals understand the importance of relationship building with clients. However, the traditional hourly billing model is proving to be a strain on these fragile and crucial lawyer-client bonds. This strain is mainly due to the clients’ anxiety about the extent of billable hours spent on their case, particularly in an era of a constricting…
In the world of corporate law, the evaluation of just compensation often hinges on the market value of a property. Yet, surface-level assessments can sometimes miss the mark, leading to inadequacies in compensation. The eminent domain case, handled by Ackerman & Ackerman, P.C., serves as a telling example of this scenario. At the core of…
Enthusiasm resounds from midlevel associates based in the Los Angeles offices of a particular Biglaw firm. According to the American Lawyer’s recent Midlevel Associates Survey, one notable firm, which has asked to remain anonymous, outshone its competitors by earning an unprecedented score of 5 out of 5. The distinct honor of this ranking underscores the…
In a recent case of Klauber v. VMWare, the First Circuit Court has sanctioned the legality of a clause included in an employer’s remuneration plan allowing modification of commissions on substantial or unconventional sales. Often referred to as “windfall” clauses, such conditions are commonly seen in sales commission schemes.JD Supra reports that this ruling by…
In a move that signifies the changing economic times and a push towards improved wage structures nationwide, a considerable pay regulation update is set to take place in the state of Florida. Effective September 30, 2023, the minimum wage in Florida will increase to $12.00 per hour. Moreover, individuals in service-oriented professions who receive gratuities,…