On August 31, 2018, President Trump signed an executive order authorizing the U.S. Department of Labor (DOL) and the U.S. Department of the Treasury to evaluate expanding access to 401(k) retirement plans. The order is designed to cut some of the administrative burdens and costs that prevent smaller employers from offering 401(k) plans to their employees. The Trump administration noted that in 2017, roughly 89 percent of larger employers offered retirement plans compared to only 53 percent of small employers (those with fewer than 100 employees).
The executive order directs the agencies to consider two main issues:
- Expanding the criteria for multiple-employer plans (MEPs), under which employees of different private-sector employers may participate in a single retirement plan; and
- Raising the age when individuals with traditional Individual Retirement Accounts (IRAs) and 401(k)s must start making required minimum distributions, which is currently age 70 ½.
In an article published in the Nashville Business Journal’s Largest Employers special report on July 6, 2018, Tim Garrett provided a column highlighting three important questions for employers to ask as they strive to reduce harassment in the workplace and cultivate a healthy workplace environment. The effectiveness of an anti-harassment policy often comes down to employee perception of how the policy is enforced, trained and embraced by leadership, so it is important that employers are mindful of the answers to these questions:
Bass, Berry & Sims attorney Bob Horton authored an article for Modern Restaurant Management magazine outlining the Supreme Court’s recent decision impacting the future of class action waivers in arbitration agreements. In May 2018 the Supreme Court issued a decision in three consolidate cases NLRB v. Murphy Oil USA Inc., Epic Systems Corp. v. Lewis, and Ernst & Young LLP v. Morris ruling that “an employer may require an employee, as a condition of employment, to enter into an arbitration agreement in which the employee agrees to waive the right to bring a class or collective action.”
Bass, Berry & Sims attorney Dustin Carlton discussed the tension that exists between state and federal laws regarding medical marijuana use in the workplace. While marijuana remains a controlled substance under federal law and currently illegal to use, many states have legalized the drug for medical and even recreational use. Many employers are faced with remaining compliant with these opposing laws. Dustin recommends employers review any current zero-tolerance policies in light of new state laws, “If you are a multi-state employer, you need to assume you need to make some modifications to tailor to each individual state, or make concessions in terms of past practices.”
Bass, Berry & Sims attorney Doug Dahl outlined the key considerations, important steps and issues of concern when buying a company that is employee-owned, or at least partially employee-owned, by an Employee Stock Ownership Plan (ESOP), including:
Tim Garrett provided insight on background check best practices as employers seek ways to balance the need to validate applicants’ background and experience with compliance and privacy issues, particularly amid a surge of legislation, litigation and public scrutiny.