Welcome to the Trüpp Legal Corner designed to keep business leaders informed of critical employment legislation and case law.
401(k) Contribution Limit Rises to $19,500 in 2020
Employee 401(k) contributions for 2020 have been increased by $500 and combined employer and employee contributions have been raised by $1,000. Be sure to adjust your systems and let employees know of this change. This announcement from the IRS came late this year, meaning many plan sponsors will need to provide addendums.
Smarter and Not Harder: The New IRS Hardship Distribution Regulations
The Treasury Department and IRS finalized the new hardship distribution regulations. They are similar to the proposed regulations in November 2018, but with limited clarifications and effective dates. Take a look at a summary of key features in the article linked below.
Trump Administration Revokes Executive Order 13495, Giving Service Contractors More Flexibility when Hiring Predecessor Contractor Employees
On October 31st, 2019 Executive Order 13496, Nondisplacement of Qualified Workers Under Service Contracts was revoked. This order required federal contractors to offer employees “a right of first refusal of employment.” Federal service contractors now have more flexibility to select employees to work on their service contracts.
“The revocation of EO 13495 is a welcome development for federal service contractors as it gives them more flexibility to select employees to work on their service contracts.”
OSHA Releases Two New Temporary Worker Guidance Documents
OSHA updated its “Protecting Temporary Workers” website that reminds employers about the responsibility for a temporary employee’s safety and health. This is specifically targeted to staffing agencies and their clients, specifying that they are “jointly responsible.”
Maryland’s High Court Reverses Course and Strengthens Modification Powers of the Workers’ Compensation Commission
The Maryland Court of Appeals overturned a decision that limited the Workers’ Compensation Commission’s revisory powers. The court found that a compensation rate could not be retroactively modified.
NY Harassment FAQ
New York has released a FAQ on Combating Sexual Harassment amidst the new legal requirements. The FAQ covers questions such as:
- What type of records must employers maintain to verify compliance?
- Does this law apply to New York City employers and will the mandated New York City training meet the training requirements of the New York State Law?
- Are employers required to provide the notice, policy, and training in languages other than English?
- What constitutes training materials as part of the notice?
- How are requirements applied when the training materials are delivered through software or video?