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Elliot Dinkin


Recent Jobs Growth Report and Hourly Wage Rate Increases Create an Urgency to Review Base Compensation Structures, Merit Pay Structures, and Career Ladders

Background  If you are in the midst of setting compensation rates for 2019, including salary budgets, you may want to consider the following facts:The results of the October jobs report indicated that 250,000 new jobs were created last month, with a majority of them in private industry.The unemployment rate held steady at 3.7%.Thousands of Americans … Continued

Administration Announces Big Changes for Health Reimbursement Arrangements (HRAs)

On October 23, 2018, the Trump Administration released a proposed rule that would expand the use of Health Reimbursement Arrangements (HRAs), starting in 2020, by effectively rolling back Obama era regulations.Before the Affordable Care Act (ACA)HRAs served as a vehicle that allowed employees to purchase a non-group insurance plan of their choice. Employees submitted receipts … Continued

Average Hourly Earnings Increase Is Reducing Profits: Why It Is a Better Time than Ever to Focus on a Total Compensation Approach to Controlling Overall Labor Costs

Background: Average hourly earnings increased 2.7% in June from a year earlier, according to the Labor Department’s monthly jobs data released last Friday. That is good news for U.S. workers who have seen minimal wage increases over the past few years. But the higher costs pose a threat to some U.S. companies that are already … Continued

Can A Struggling Multiemployer Plan Override A Collective Bargaining Agreement?

Background: After bargaining to impasse, Just Born implemented its last, best and final offer, which included a soft-freeze type provision, where contributions would be made to the Multiemployer Pension Fund (MEPP), just for existing employees, but not new hires. This decision (Just Born, 4th circuit court of appeals; April 26, 2018) requires Just Born to … Continued

To Ask or Not to Ask About Prior Compensation - That is the Question

The Ninth Circuit Court of Appeals issued a recent ruling that wage disparity based on “prior salary alone or in combination with other factors” violated the Equal Pay Act (Rizo v. Yovino). The court adopted the viewpoint that the objective of the Equal Pay Act is to eliminate long-standing pay disparities, not to preserve them, going … Continued

Voluntary Correction Program (VCP) Equivalent to Fix Violations Under the Fair Labor Standards Act (FLSA)

The Internal Revenue Service has created an Employee Plans Compliance Resolution System (EPCRS) for correcting qualified plan (e.g., Defined Benefit and Defined Contribution) errors, including Self-Correction Program (SCP), Voluntary Correction Program (VCP), and the Audit Closing Agreement Program (Audit CAP), to expedite the resolution of fixing certain operating mistakes.  These plans have been widely used … Continued

California Supreme Court Ruling Will Result in a Higher OT Rate for Employer’s Who Pay Flat Bonuses

The California Supreme Court issued a decision on March 5, 2018 (Alvarado v. Dart Container Corp) regarding the proper method under California law to calculate nonexempt employees’ overtime rate of pay when those employees receive a flat bonus, which generally are payments that do not vary on factors such as effort or productivity.  Flat bonuses … Continued

Why a Not-for-Profit Should Address the Tax Reform Impact on Their Total Compensation Offerings

No, I didn’t hit my head and wake up and realize that Not-For Profits (NFPs) now pay taxes.  However, as a result of the recent tax law changes, a substantial number of for-profit companies not only provided a one-time bonus, some were, also, quick to act and announced increases to:Minimum wageSalariesRetirement benefitsInvestment in training employeesNFPs … Continued

Tax Reform Provides Another Incentive to Implement Pension Plan De-Risking Strategy

Tax reform offers another incentive for employers to consider completing a pension plan de-risking strategy in 2018. A change in the corporate tax rate will make funding pension plans sooner more appealing, which many try to do before completing a risk transfer anyway.The Tax law approved in December 2017, lowers the corporate tax rate to … Continued

Treatment of Settlements After Tax Act

Unfortunately, the news is full of a multitude of stories regarding sexual harassment. Companies are aggressively trying to control the damages associated with these claims, while the brave victims who come forward want to protect their privacy.As part of the recently signed tax law, a new section was added to the Internal Revenue Code that … Continued

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