Legal Updates

DOL Proposes to Rescind Independent Contractor Rule

On March 11, 2021, the U.S. Department of Labor (DOL) announced a proposal to rescind the Independent Contractor final rule. The rule was originally published in January, but its effective date has been delayed as the result of a freeze the Biden administration ordered on regulatory changes adopted late into the previous administration.

DOL Delays Effective Date for 2020 Employee Tip Rule

On Feb. 26, 2021, the U.S. Department of Labor (DOL) delayed the effective date of its 2020 employee tip rule to April 30, 2021. This rule was originally scheduled to go into effect on March 1, 2021.

The rule prevents employers from keeping their employees’ tips and specifically prohibits managers and supervisors from keeping any portion of employee tips, including any from a tip pool.

IRS Issues Guidance on Employee Retention Credit for 2020

On March 1, 2021, the Internal Revenue Service (IRS) issued Notice 2021-20 to provide guidance for employers claiming the 2020 employer retention tax credit. This tax credit was created by the Coronavirus Aid, Relief and Economic Security Act (CARES Act) to encourage employers to keep employees on their payroll, despite experiencing economic hardships related to COVID-19.

DOL Guidance on COVID-19 Relief for Employee Benefit Plans

On Feb. 26, 2021, the Department of Labor’s (DOL) Employee Benefits Security Administration (EBSA) issued Disaster Relief Notice 2021-01 to provide guidance on the duration of the COVID-19-related relief regarding certain employee benefit plan deadlines during the Outbreak Period.

California FAQ's on Workforce Pay and Data Reporting Requirement

Employers that have any employees in California may be subject to a new state law that requires annual reporting, according to answers to frequently asked questions (FAQs) issued by the state’s Department of Fair Employment and Housing (DFEH) on Feb. 16, 2021.

The FAQs provide this and other information about Senate Bill 973 (SB 973), which requires employers to file information about their employees’ pay and work hours with the DFEH every year, starting in 2021.