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Happy New Year! The
new year frequently brings with it a flurry of activity related to
employment matters. As we move forward in to 2006, we should bear in
mind the major developments of 2005. To assist you, we are providing a
brief summary of major developments in employment law and employee
benefits about which we informed you in 2005, with quick links for more
information.
Federal Developments
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The Supreme Court held in IBP, Inc. v. Alvarez that some
walking time is compensable as working time. For a refresher on
what constitutes compensable walking time, click
here.
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The Treasury Department and IRS promulgated new regulations
governing deferred compensation under Section 409A of the Internal
Revenue Code. To review the effects of those regulations, click
here.
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A new rule governing involuntary distribution of 401(k) assets went
into effect in March. It provides that for any involuntary
distribution (resulting from a severance of the employment
relationship) where the benefit is over $1,000, the money must
automatically be rolled over into an IRA. For more information,
click
here.
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Employers (and any other entity over which the Federal Trade
Commission has jurisdiction) are now required to use “reasonable
measures” to dispose of information contained in consumer reports.
For a reminder of what constitutes “consumer information,” click
here.
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Under the Veterans Benefits Improvement Act, employers must post
information on the Uniformed Services Employment and Reemployment
Act (USERRA). To obtain a copy of the required poster, go to
www.dol.gov/vets/programs/userra/poster.htm. For more
information, click
here.
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The Fourth
Circuit, which includes North Carolina, held that general releases
signed by employees will not waive claims under the Family Medical
Leave Act (FMLA). For more information, click
here.
State Developments
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The
North Carolina Wage & Hour Act was revised in 2005. There were a number
of changes. The one which has perhaps the most universal relevance is
the requirement that employers provide at least twenty-four hours of
notice to employees prior to any change in wages; there had not
previously been a specific time limit. For more information on this and
on all of the recent changes to the Wage & Hour Act, click
here.
We look forward to
continuing to provide you with updates on relevant developments in
employment and employee benefits legal issues. For questions on any of
the above changes from the last calendar year or any other employment
law questions, please contact the head of the Employment Law Section,
Susie Gibbons, at
783-2813 or
sgibbons@poynerspruill.com.
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