Experience Dedication Wisdom
For more than a century, Clifton Budd & DeMaria has represented management in labor and employment law matters. We provide management with legal services related to all aspects of the employer-employee relationship. We are committed to providing the highest quality legal services to all clients. We work closely with them to help solve their problems and attain their business objectives.
Recent Developments
New Proposed Rules on ACA Opt-Out Payments
The IRS has issued proposed regulations that expand upon the treatment of cash incentives provided to an employee if he waives coverage under his employer's health plan (an "Opt-Out Payment").
U.S. Department of Labor Publishes New Overtime Rule
The United States Department of Labor recently issued its long-awaited rule increasing the minimum salary for overtime eligibility. Effective December 1, 2016, the minimum salary threshold for most of the white-collar overtime exemptions will increase to $47,476 per year ($913 per week).
New York State Enacts $15 Minimum Wage
New York Governor Andrew Cuomo recently signed into law a bill that gradually raises the minimum wage for many New York employers to $15 per hour by 2022.
Strategy to Increase Maximum Contributions
For 2016, contributions to a stand-alone defined contribution plan are limited to $53,000 plus, in the case of a participant who reaches age 50 by the end of 2016, additional salary deferral contributions of $6,000 ("Catch-Up Contributions"). However, by utilizing a combination of plans qualified under Sections 401(a) and 403(b) of the Internal Revenue Code ("IRC"), contributions may be as high as $77,000.
IRS Guidance on Unconditional Opt-Out Payments
Many employers offer employees a cash incentive (an "Opt-Out Payment"), if they waive coverage under the employer’s health plan. The rationale is that the Opt-Out Payment is less expensive than the employer's cost in subsidizing the coverage.