Today on Just Compensation, Megan Monson, Julie Levinson Werner, Taryn E. Cannataro, and Amy C. Schwind discuss some of the issues an employer must consider as the workforce becomes increasingly remote. They recommend that employers set clear expectations on issues such as hours and availability for employees who work from home, and they encourage employers to be aware of compliance issues arising from such state specific requirements such as non-competes, benefits, wage and hour laws, and reporting obligations.

Speakers:

Megan Monson, Partner, Employee Benefits & Executive Compensation Julie Levinson Werner, Partner, Employment Counseling & Litigation Taryn E. Cannataro, Counsel, Employee Benefits & Executive Compensation Amy C. Schwind, Counsel, Employment Counseling & Litigation

Megan Monson, Amy Komoroski Wiwi, and Jessica I. Kriegsfeld talk about recent developments and trends in the law relating to employment-related non-competition agreements, including a proposed federal rule that could significantly limit their use. They also explore potential ideas and workarounds for employers to consider in place of non-competes in order to provide protection to a company. 

Note: Since the time of recording this episode, NY law has now passed both the senate and assembly. 

Speakers:

Megan Monson, Partner, Employee Benefits & Executive CompensationAmy Wiwi, Partner, Employment Counseling & LitigationJessica Kriegsfeld, Associate, Employee Benefits & Executive Compensation

Andrew E. Graw, Megan Monson, Jessica Kriegsfeld discuss the SECURE 2.0 Act and some of the retirement plan changes it will create in 2023 and beyond, such as raising the age for taking required minimum distributions from tax-qualified plans; mandating automatic enrollment; and increasing the catch-up contribution limit. The lawyers explain the public policy behind the changes— to increase retirement plan savings as well as the number of people participating in 401Ks, —and reiterate the importance of employers providing information that allows employees to make educated decisions about their retirement plan savings and deferral elections.

Episode Resource: 

• SECURE 2.0 Legislation: Impact on Qualified Plans (EBEN) | Lowenstein Sandler LLP

Speakers:

Andrew E. Graw, Partner and Chair, Employee Benefits & Executive CompensationMegan Monson, Partner, Employee Benefits & Executive CompensationJessica Kriegsfeld, Associate, Employee Benefits & Executive Compensation

The latest “Just Compensation” podcast features Megan Monson, Taryn E. Cannataro, and Jessica Kriegsfeld of Lowenstein’s Employee Benefits & Executive Compensation group describing some of the benefits-related considerations of which buyers should be aware in transactions involving an entity that uses a professional employer organization or PEO. Many companies use PEOs to handle HR tasks such as payroll; however, acquiring a company that uses a PEO may require a different approach for deal documentation and consideration on the go-forward status of health/welfare and retirement plans, including understanding procedural requirements and limitations, to name a few—all of which could cause unexpected delays and administrative burdens.

Episode Resources:

• 401k Plan Considerations in M&A Transactions
• Acquiring a Company That Uses a Professional Employer Org.

Speakers: Megan Monson, Partner, Employee Benefits & Executive CompensationTaryn E. Cannataro, Counsel, Employee Benefits & Executive CompensationJessica Kriegsfeld, Associate, Employee Benefits & Executive Compensation

In this edition of “Just Compensation,” Andrew E. Graw, Chair of Lowenstein’s Employee Benefits & Executive Compensation practice, talks with partner Megan Monson and counsel Taryn E. Cannataro about 401(k) plan considerations in the context of mergers and acquisitions. They address potential alternatives on what to do with a target’s 401(k) plan (if anything) in a transaction, including some pros/cons of each approach; specific considerations for 401(k) plans that vary based upon deal structure; the 401(k) plan termination process; and the importance of employee messaging related to 401(k) plan treatment. 

Speakers: Andrew E. Graw, Partner and Chair, Employee Benefits & Executive Compensation Megan Monson, Partner, Employee Benefits & Executive CompensationTaryn E. Cannataro, Counsel, Employee Benefits & Executive Compensation

In this episode, the hosts discuss how companies can structure “in-the-money” stock options in order to avoid violating IRS rules governing non-qualified deferred compensation. They also address the benefits and potential downsides to this kind of option and what companies should know if they’re looking to grant them.

Speakers: Andrew E. Graw, Partner and Chair, Employee Benefits & Executive Compensation Megan Monson, Partner, Employee Benefits & Executive CompensationTaryn E. Cannataro, Counsel, Employee Benefits & Executive Compensation

Lately, more and more companies are unfortunately finding themselves in a situation where they need to lay off part of their workforce. This discussion outlines some of the high-level considerations to keep in mind as companies navigate this process, including whether to offer the impacted employees’ severance or other benefits like extended COBRA; whether the company should require employees to sign a release in connection with severance offer, and if there is any risk of violating the ADEA, WARN Act, or other protective state or federal statutes.

The panelists also address extending the post-termination period during which an employee might be eligible to exercise vested stock options, and the PR ramifications of layoffs. 

Speakers: Megan Monson, Partner, Employee Benefits & Executive CompensationJulie Levinson Werner, Partner, Employment Counseling & LitigationJessica Kriegsfeld, Associate, Employee Benefits & Executive Compensation

Darren Goodman, Megan Monson, and Taryn E. Cannataro of Lowenstein’s Executive Compensation & Employee Benefits Group discuss what companies can or should do if stock options are about to expire, which is a particular concern in today’s uncertain economic climate.

Speakers:Darren Goodman, Partner, Employee Benefits & Executive Compensation Megan Monson, Partner, Employee Benefits & Executive Compensation Taryn E. Cannataro, Counsel, Employee Benefits & Executive Compensation

Darren Goodman and Taryn Cannataro of Lowenstein’s Employee Benefits and Executive Compensation group are joined by guest Eric Weiner, partner in the firm’s Tech Group and the Co-Chair of Lowenstein Crypto to discuss a hot topic and emerging trend in executive compensation: cryptocurrency and token issuances. Despite the recent downturn in the crypto markets, we have continued to see crypto employers granting tokens to incentivize their employees. This podcast episode provides a brief overview of the various forms of token issuances, how token awards differ from equity awards from a tax perspective, and considerations to keep in mind if you plan to grant tokens to employees.

Speakers:Darren Goodman, Partner, Employee Benefits & Executive Compensation Eric Weiner, Partner, Tech Group and Co-Chair of Lowenstein Crypto Taryn E. Cannataro, Associate, Employee Benefits & Executive Compensation

Megan Monson, Andrew E. Graw, Taryn E. Cannataro of Lowenstein’s Employee Benefits & Executive Compensation group discuss with partner Marie DeFalco, Co-Chair of the firm’s Investment Management group, the significance of the QPAM exemption from ERISA prohibitions on transactions with a party in interest for investment advisers. The group explains current and possible new requirements for qualifying for the QPAM exemption; registration and recordkeeping rules; the potential impact of raising the required total AUM; and how the lack of a lack of a “grandfathering” period can prove a challenge for investment advisers.

Episode Resources:

• DOL Proposes Significant Changes to the QPAM Exemption for Managing ERISA Assets
• Plan Fiduciaries, Including Investment Advisers and Fund Managers, Take Note – U.S. Department of Labor Proposes Enhanced QPAM Requirements

Speakers:

Megan Monson, Partner, Employee Benefits & Executive Compensation Andrew E. Graw, Partner and Chair, Employee Benefits & Executive Compensation Taryn E. Cannataro, Associate, Employee Benefits & Executive Compensation Marie DeFalco, Partner and Co-Chair, Investment Management Group