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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 Outdated penalties are a problem because civil penalties are less effective when they do not keep pace with the cost of living.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...

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.  

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...

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...

This year marks the 40th anniversary of Promises2Kids, originally founded in 1981 as the Child Abuse Prevention Foundation. It all started with a simple wish - ensuring children are safe, happy and loved. Three remarkable local San Diegans took that dream and transformed it into an organization t...

Contributing Author: Kristine Custodio Suero, ACP, Senior Paralegal The Internal Revenue Service announced the Cost-of-Living Adjusted Limits for 2021, which will be affecting dollar limitations for qualified pension plans for the 2021 tax year. Section 415 of the Internal Revenue Code provides ...

The Employee Benefits Security Administration (EBSA) enforces ERISA laws and regulations, including conducting civil and criminal investigations. EBSA investigations often result in recovering money from enforcement actions, voluntary fiduciary correction programs, abandoned plan programs, and in...

Did you know that October 25-31, 2020 is National Pro Bono Week? As an At-large Board member of the San Diego County Bar Association Community Service Committee and Chair for the nonprofit organization Wills for Heroes, San Diego Chapter, it is very rewarding for me to provide free wills and esta...

Contributing Author: Kristine Custodio Suero, Advanced Certified Paralegal In my past blog post, I discussed potential Department of Labor (DOL) and Internal Revenue Service (IRS) penalties for anyone who willfully violates ERISA as well for various compliance issues in violation of the law, and...

It's National Small Business Week! The U.S. Small Business Administration (SBA) spotlights our nation's 30 million small businesses. Register for the FREE National Small Business Week Virtual Conference hosted online by the SBA on September 22-24: NSBW Virtual Conference Schedule: Tuesday, Sept...

You've worked long and hard over many years building up the value of your company. While you now have wealth on paper, you're becoming increasingly concerned whether you will have the ability to realize the value you've accumulated in the form of current spendable cash because, as a nonpublicly t...

Here are some common QDRO questions:1. What Is a QDRO and Why Do I Need One?2. What is an alternate payee?3. Why do I need a QDRO?4. What are the benefits of having a QDRO?5. Are all QDROs the same?Click here to learn more about QDROs, and be sure to check out our QDRO Resources!