‘Latest News’ Posts Archive

DOL Sending Emails to Form 5500 Filers About Schedule C Requirements

The Department of Labor is sending emails to Form 5500 filers if they are large employee benefit plans that have not included a Schedule C, Scott C. Albert, chief of the reporting and compliance division at DOL’s Employee Benefits Security Administration, said May 8.

DOL is concerned that plan administrators and fiduciaries are unaware of the fees and expenses that are supposed to be reported on Schedule C, Albert said. Plan sponsors are required to report on Schedule C each service provider that received $5,000 or more in direct or indirect compensation from a plan. There are very few large plans that do not require a Schedule C, primarily because of investments in mutual funds, Albert said. As a result, DOL is looking at forms filed by large plans that are missing the Schedule C, Albert said. In addition, DOL is communicating with many third-party administrators that are unaware of these fees and expenses and how they relate to Schedule C, he said.

If you have any questions regarding requirements to report direct and indirect compensation, or any other employee benefits matter, please feel free to contact us.

Blitman & King Presents to the Schenectady County Dental Association | Employment Law

On April 18, 2012, Jonathan Cerrito, Dan Brice and Ginger LaChapelle of Blitman & King presented to the Schenectady County Dental Association on issues involving 401(k) plan administration, HIPAA and employment law. Thank you to Richard Lamanna, DDS and the other members of the Association for the opportunity.

U.S. & Germany Agree Not to Tax Dividends from Certain Pension Investments

On April 12, 2012, the IRS announced that the U.S. and Germany have entered into an agreement not to tax income or dividends from investments made by certain U.S. or German pension funds. Of particular interest is that favorable tax treatment will apply to dividends received from a group trust established pursuant to IRS Revenue Ruling 81-100.

The agreement references group trusts that are “established in the United States” and the treaty between the U.S. and Germany defines the U.S. to exclude Puerto Rico. This infers that, to obtain treaty benefits, the U.S. group trust cannot allow plans that are tax-qualified only in Puerto Rick to participate. Whether the interaction of the language of the agreement and the existing treaty definition reflects a concious decision by Treasury is unclear.

If you have any questions regarding the application of the treaty agreement, or any other employee benefits matter, please feel free to contact us.

Blitman & King to Present at “Recent Developments of Critical Labor Relations Issues Before the NLRB” | Employment Law

Nathaniel Lambright, a partner in the Labor Department of Blitman & King, will present at an upcoming NLRB conference on May 11, 2012 at The Hearthstone in Depew, NY.  Mr. Lambright will discuss recent developments at the NLRB.  Other topics of interest include the duty of fair representations, relocations, closings and other entrepreneurial decisions, social media and the NLRB and the changing face of ethical obligations involving the internet and social media.

For more information on this timely labor law conference see:

Recent Developments in Labor Relations Issues Before NLRB

What does health care look like in 2014 and beyond? | Employment Law

On March 23, 2010, President Obama signed comprehensive health reform, the Patient Protection and Affordable Care Act (“PPACA”), into law.  The PPACA was later amended by the Health Care and Education Reconciliation Act of 2010 (“HCRA”).  Many of the law’s key requirements are effective beginning in 2014.  In a recent presentation and paper, Ginger LaChapelle–an Associate in the Employee Benefits Department of Blitman & King–explained these key health reform provisions relating to the establishment of state-run American Health Benefit Exchanges, and the law’s most controversial requirement, the “individual mandate.”

 Health Care Reform in 2014 and Beyond

Social Media Use May Be Concerted/Protected Activity Under Labor Law | Employment Law

Social Media—Twitter, Facebook, and other means of internet type communications—have become ubiquitous.  For those who have embraced the speed and spontaneity of such means of communication they are a boon.  Their use in connection with the workplace can be a trap for both the unwary employee and employer.

Jules Smith, a partner in the Labor and Employment Practice of Blitman & King, recently authored a paper discussing the latest pronouncements of the National Labor Relations concerning employer applications of rules restricting employee use of Social Media, which are generally measured against the rights contained in Section 7 of the National Labor Relations Act.  Section 7 provides that employees not only have the right to join a labor organization and bargain through representatives of their choosing, but also have the right to engage in “other concerted activities for the purpose of collective bargaining or other mutual aid or protection . . . .”   Concerted protected activities can occur in the absence of any labor organization.  In order to obtain the protections of the NLRA, employee action must be both concerted and protected.

The paper begins with a short history of the National Labor Relations Act, and summary of the processes and jurisdiction of the National Labor Relations Board, the agency with primary authority to enforce the NLRA.  Following thereafter is a primer on concerted/protected activities.  The paper then discusses the application of the concerted/protected activity law to the new area of social media.  Several cases are briefly discussed with analysis of the holdings of each situation.

Finally outlined is the NLRB’s treatment of employer rules adopted in response to the burgeoning use of employees of social media.  As will be seen, these rules are often overbroad and restrictive to employee rights under Section 7 of the NLRA.

Social Media Use May Be Concerted Protected Activity Under Labor Law


 

Nonprofits Face Pressure Over Pay Practices From IRS | Employment Law

The Internal Revenue Service and other governmental agencies are scrutinizing the pay practices of nonprofit organizations. Specifically, federal and state initiatives, trends and best practices are placing nonprofit organizations under pressure to disclose and justify the executive compensation programs. It is particularly important that nonprofit organizations have all contracts for executive compensation reviewed for compliance with Section 409A.

Final Rule Issued on Summary of Benefits of Coverage and Uniform Glossary | Health Care Reform

On February 8, 2012, the DOL, IRS, and HHS issued a final rule with respect to Summary of Benefits of Coverage and Uniform Glossary. In general, the rule is effective for the first plan year or open enrollment period beginning on or after September 23, 2012. In short, compliance with the final rule will require health plans to distribute a Summary of Benefits and Coverage (in the form provided by the Departments)

Continue reading “Final Rule Issued on Summary of Benefits of Coverage and Uniform Glossary | Health Care Reform” »

Blitman & King’s 22nd Annual Labor & Employment Law Seminar | Labor Relations

On March 26, 2012, Blitman and King LLP will sponsor its 22nd Annual Labor & Employment Law Seminar. The main focus of this seminar will be on labor law related topics including concerted activity, public sector updates, private sector bargaining, construction industry developments and prevailing wage issues. The seminar will also include Employment Law and Employee Benefits Breakout Sessions. The Employee Benefits Breakout Session is aimed at union officers who also serve as Trustees of associated multi employer pension, welfare and annuity plans. For more information on this seminar,please view the program below.

View Program

Presentation to the Central New York Pictage User Group by Daniel R. Brice and Jonathan M. Cerrito | Employment Law

On October 11, 2011, Daniel R. Brice and Jonathan M. Cerrito gave a presentation entitled “The Employee Benefits and Employment Picture for Photographers.” The information was presented before the Central New York Pictage User Group (CNY PUGs)–a group designed to facilitate communication and education among professional photographers on a regional level around the nation. The administration of Single-Employer 401(k) Employee Benefit Plans and employee law fundamentals were among the topics covered by the presenters.

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