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October is Employee Ownership Month! Did you know that private and family business owners can use an ESOP as a compelling alternative for selling their business?

Posted by Marc S. Schechter | Oct 25, 2022 | 0 Comments

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...

Second Circuit Court of Appeals Rules that Retirement Plan Assets Are Subject to Garnishment

Posted by Paul D. Woodard | Oct 24, 2022 | 0 Comments

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 SB-1407 California Employee Ownership Act was signed by Gov. Newsom on September 29, 2022?

Posted by Marc S. Schechter | Oct 03, 2022 | 0 Comments

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...

Founding Partner Marc Schechter to Speak on ESOP Legal and Regulatory Updates at The ESOP Association California & Western States 2022 Annual Conference

Posted by Marc S. Schechter | Sep 26, 2022 | 0 Comments

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...

ESOPs & Succession Planning

Posted by Marc S. Schechter | Mar 31, 2022 | 0 Comments

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 - 6 OF 6] ESOPs: A Solution for The Great Resignation

Posted by Marc S. Schechter | Feb 14, 2022 | 0 Comments

[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...

ERISA Civil Penalties Inflation Adjustment Act Annual Adjustments for 2022

Posted by Paul D. Woodard | Feb 09, 2022 | 0 Comments

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 - 5 OF 6] ESOPs: A Solution for The Great Resignation

Posted by Marc S. Schechter | Feb 07, 2022 | 0 Comments

[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 - 4 OF 6] ESOPs: A Solution for The Great Resignation

Posted by Marc S. Schechter | Jan 31, 2022 | 0 Comments

[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 - 2 OF 6] ESOPs: A Solution for The Great Resignation

Posted by Marc S. Schechter | Jan 18, 2022 | 0 Comments

[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...

2022 ESOP Legislation Update: History Made in Federal Government First Set Aside Program for Wholly Owned ESOP Contractors

Posted by Marc S. Schechter | Jan 12, 2022 | 0 Comments

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 - 1 OF 6] ESOPs: A Solution for The Great Resignation

Posted by Marc S. Schechter | Jan 10, 2022 | 0 Comments

[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...

Reducing High Turnover in Trucking with ESOPs

Posted by Marc S. Schechter | Oct 13, 2021 | 0 Comments

Employee turnover is one of the most challenging issues facing many industries in the U.S. With so much spent on hiring, training, on-boarding, and getting workers up to speed, a short turnover period may cost the company more than the worker added. Many employers are struggling to address the issue, especially in times where the unemployment rate remains so low.  The trucking industry has been dealing with high turnover rates for years. Some trucking and transportation companies are learning from other employee-owned businesses and have seen results in transitioning the company to an employee-ownership model, including Employee Stock Ownership Plans (ESOPs). ESOPs often have much higher retention rates, in addition to the other benefits of giving workers a financial interest in their future with the company.  

SERPs to Recruit and Retain Executives

Posted by Paul D. Woodard | Sep 23, 2021 | 0 Comments

Supplemental Executive Retirement Plans (SERPs) can be used as a retention tool for executives. SERPs and other nonqualified deferred compensation plans (NQDCPs) incentivize executives to stay with the business or organization, while providing flexible scheduling and payment options that qualifie...

Founding Partner Marc Schechter to Speak on The Decade of the ESOP: Economic Recovery, Racial Justice and Equity at National Center for Employee Ownership (NCEO) Fall ESOP Forum

Posted by Marc S. Schechter | Sep 14, 2021 | 0 Comments

Join Founding Partner, Marc Schechter, on September 22, 2021, at the National Center for Employee Ownership (NCEO) Fall ESOP Forum, as he shares his insight on The Decade of the ESOP: Economic Recovery, Racial Justice and Equity. The NCEO Fall ESOP Forum provides information, ideas, and advice yo...

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