Nonprofit organizations may legally provide severance pay. But under what circumstances, and how much? How do unemployment benefits fit with severance? And why put it in writing? Whenever a nonprofit employer considers whether to provide severance pay to a terminated employee, many significant questions can arise warranting careful evaluation of several factors including risk management, stewardship, fairness, and practical business decisions.
Reimbursing employees’ health insurance premiums and other health costs on a pre-tax basis again is available, thanks to the 21st Century Cures Act signed recently by President Obama. The law becomes effective January 1, 2017. A few words of caution - the law applies only to “small” employers, and it contains other significant limitations that could render it inappropriate in many circumstances.
By Sally Wagenmaker and Michael E. Batts, CPA
Temporary Injunction Puts Implementation in Question
A federal judge yesterday issued a nationwide temporary injunction halting the implementation of a new overtime pay rule scheduled to go into effect on December 1, 2016. The judge, Amos L. Mazzant III – appointed by President Obama – ruled that the Obama administration (specifically, the U.S. Department of Labor) exceeded its legal authority in implementing the new rule. Consequently, this rule change is on hold for all U.S. employers.