Employees who participate in an employer sponsored qualified retirement plan such as a 401(k) plan make contributions to their account through employee deferrals. The employer is responsible for contributing the participants' deferrals to the plan trust. Thus, if your employer offers a 401(k) pla...
Senate Bill (SB) 1407, the California Employee Ownership Act, was signed into law by Governor Gavin Newsom on September 29, 2022. The bill will be codified as Government Code Section 12100.30 to 12100.33.
Contributing Author: Kristine Custodio Suero, Advanced Certified Paralegal The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 was enacted to advance the effectiveness of civil money penalties and to strengthen their deterrent effect. Outdated penalties are a problem be...
Amid the highest inflation rates in four decades, the Internal Revenue Service has raised the contribution limits of how much Americans can contribute into their 401(k) plans in 2023, by a record amount.
October is Employee Ownership Month! Did you know that private and family business owners can use an Employee Stock Ownership Plan (ESOP) as a compelling alternative for selling their business at fair value while enabling it to remain independent? Want to learn more about ESOPs? Download our ESOP...
The anti-alienation provision under Section 206(d)(1) of ERISA provides federal protection to retirement assets from most ordinary creditors. The provision thus prohibits an assignment or alienation of pension plan benefits under each pension plan. In contrast, the Mandatory Victims Restitution Act (MVRA) requires courts to issue a restitution order in addition to a conviction against a defendant in order to compensate the victim of an offense for any damage to or loss or destruction of victim’s property.
October is Employee Ownership Month! Did you know that there are 19 Employee Ownership State Centers (hubs) across the U.S.? Check out the interactive map on Employee Ownership Expansion Network (EOX) by clicking here.
October is Employee Ownership Month! Did you know that the largest majority employee-owned company is a grocery store? Publix Super Markets headquartered in Lakeland, Florida employs 230,000 workers. Its ESOP has been around since 1974. Click here to check out the other companies listed in NCEO's...
October is Employee Ownership Month! Did you know that SB-1407 California Employee Ownership Act was passed in both the state Senate and Assembly and was presented to Governor Newsom on September 9, 2022? SB-1407 was signed into law by Gov. Newsom on September 29, 2022. Click here to read more ab...
Governor Gavin Newsom signed SB-1407 California Employee Ownership Act on September 29, 2022...
Founding Partner, Marc Schechter, will be speaking on ESOP Legal and Regulatory Updates at The ESOP Association California & Western States (CAWS) 2022 Annual Conference on Thursday, September 29, 2022. This year's conference will be held at the Loews Coronado Bay - San Diego. Butterfield Schecht...
On February 18, 2022, SB-1407 California Employee Ownership Act was introduced by Senator Josh Becker to expand employee ownership of California businesses.
California is facing a Silver Tsunami of retiring business owners. There are many owners of small- to medium-sized businesses with no succession plan in place for when they retire. Business owners in California should consider an ESOP as an option to provide tax benefits and a ready buyer for their company when looking towards retirement. An ESOP allows owners and founders invested in the continued success of the company to maintain majority interest and control of the company to ensure the traditions of quality while rewarding employees who help build the company.
[BLOG SERIES] ESOPs: A Solution for The Great Resignation - Week 6 of 6: Can ESOPs Benefit Disadvantaged Communities? Employee share ownership has the unique benefit of distributing the success of the company among the employees who contributed to the company's growth. While employees generally benefit from ESOPs wherever the business is located, ESOPs in economically distressed communities could benefit the workers who live in those same communities...
The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 was enacted to advance the effectiveness of civil money penalties and to strengthen their deterrent effect. Outdated penalties are a problem because civil penalties are less effective when they do not keep pace with the cost of living. The law requires agencies across the federal government to adjust their penalties for inflation not later than January 15 of every year. The Department of Labor’s Civil Penalties Inflation Adjustment Act Annual Adjustment for 2022 final rule was published in the January 14, 2022 Federal Register. Below is a table that reflects the 2022 and 2021 civil money penalty amounts.
[BLOG SERIES] ESOPs: A Solution for The Great Resignation - Week 5 of 6: How can an ESOP help in my specific industry? For certain industries, attracting and retaining workers is especially difficult in these times. The trucking, hospitality and grocery industries are no stranger to these perils. Learn more about how ESOPs can help in various industries.
[BLOG SERIES] ESOPs: A Solution for The Great Resignation - Week 4 of 6: Why are ESOPs an effective tool in addressing high turnover? An Employee Stock Ownership Plan (ESOP) provides a way to reward employees for their hard work by allowing them to share in the growth in value of the company. This gives employees an incentive to see the company thrive and continue to grow. With a long-term interest in the business, it also encourages employees to stay with the company, saving the company costs associated with high turnover rates.
[BLOG SERIES] ESOPs: A Solution for The Great Resignation - Week 3 of 6: Is my company too small for an ESOP? ESOPs are not for everyone, but here are some considerations if you are asking yourself, “Is my company too small for an ESOP?”
[BLOG SERIES] ESOPs: A Solution for The Great Resignation - Week 2 of 6: What are the benefits of an ESOP? One of the benefits of an ESOP is the understanding that employees who have an ownership interest in the company will be encouraged to do what is best for the company's financial interest. As shareholders in the company through participation in the ESOP, the employee has a financial incentive to see the company succeed...
On December 27, 2021, the National Defense Authorization Action (NDAA) for Fiscal Year 2022 was signed into law and made ESOP history. This is the first ever set aside program for federal government contractors who are 100% ESOP-owned to be eligible for noncompete follow-on contracts, subject to satisfactory performance. The pilot program is effective January 1, 2022, for a duration of five years.
[BLOG SERIES] ESOPs: A Solution for The Great Resignation - Week 1 of 6: What is an ESOP? An Employee Stock Ownership Plan (ESOP) is a qualified retirement plan that invests primarily in employer securities. ESOPs allow employees to share in ownership of their employer. Eligible employees are provided stock ownership as a benefit of working for the company. There are many benefits to providing an ESOP to employees...
Join me on January 18, 2022, for my presentation, ERISA Benefit Claim Procedure and Litigation - Best Practices and Strategy to Avoid Potential Pitfalls, with the San Diego Chapter of Western Pension & Benefits Council. Topics include: ERISA claim administration basics - Statutory and legal fr...
Contributing Author: Kristine Custodio Suero, Advanced Certified Paralegal The Internal Revenue Service announced cost-of-living adjusted limits for 2022. The limits have increased! Here are some of the adjustments: Effective January 1, 2022, the limitation on the annual benefit under a defin...
National Pro Bono Week will be celebrated October 24th to 30th this year. The San Diego County Bar Association continues to partner with the nonprofit organization Wills for Heroes, San Diego Chapter, providing free wills and estate planning services to eligible first responders and licensed fr...