The Washington Report
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February 26, 2020
Other HR/Employment
NLRB Releases Final Rule on Joint Employer Status
On February 25, 2020, the National Labor Relations Board (NLRB) released a final rule for the purpose of carrying out the provisions of the National Labor Relations Act (NLRA) by establishing the standard for determining whether two employers are a joint employer under the NLRA. The NLRB “believes that this rulemaking will foster predictability and consistency regarding determinations of joint-employer status in a variety of business relationships, thereby enhancing labor-management stability, the promotion of which is one of the principal purposes of the Act.” Under the final rule, an entity may be considered a joint employer of a separate employer’s employees only if the two share or codetermine the employees’ essential terms and conditions of employment, which are exclusively defined as wages, benefits, hours of work, hiring, discharge, discipline, supervision, and direction. (Additional information may be found in the final rule and fact sheet.)
The final rule has been classified as a major rule subject to congressional review. The final rule will become effective on April 27, 2020. However, at the conclusion of the congressional review, if the effective date has been changed, the NLRB will publish a document in the Federal Register to establish the new effective date or to withdraw the rule.
The final rule is available here.
(The final rule will be published in the February 26, 2020, Federal Register.)
The news release is available here.
A fact sheet is available here.
IRS Releases Proposed Regulations Updating Guidance on Business Expense Deductions for Meals and Entertainment
On February 24, 2020, the Internal Revenue Service (IRS) released proposed regulations on the business expense deduction for meals and entertainment following changes made by the Tax Cuts and Jobs Act (TCJA). The 2017 TCJA eliminated the deduction for any expenses related to activities generally considered entertainment, amusement, or recreation. It also limited the deduction for expenses related to food and beverages provided by employers to their employees.
The proposed regulations address the elimination of the deduction for expenditures related to entertainment, amusement, or recreation activities, and provide guidance to determine whether an activity is considered to be entertainment. The proposed regulations also address the limitation on the deduction of food and beverage expenses and affect taxpayers who pay or incur expenses for meals or entertainment. This updated guidance generally follows Notice 2018-76, issued on October 15, 2018, which provided transitional guidance on the deductibility of expenses for certain business meals. Comments on the proposed regulations and outlines of topics to be discussed at a public hearing must be received by April 13, 2020. The IRS will hold the public hearing on these proposed regulations on April 7, 2020.
The proposed regulations are available here.
(The proposed regulations will be published in the February 26, 2020, Federal Register.)
The news release is available here.
EEOC Launches Guidance Database
On February 20, 2020, the Equal Employment Opportunity Commission (EEOC) published a Notice of Availability regarding the launch of a single, searchable indexed database containing all EEOC guidance currently in effect. The database is the result of Executive Order 13891 signed by President Trump in October 2019. According to the EEOC, the database will be publicly available on or after February 28, 2020.
The EEOC Notice is available here.
The October 2019 Executive Order is available here.
Aon Webinars
How Do You Create the DC Plan of the Future?
On Tuesday, March 3, 2020, 11:30 a.m. CT/12:30 a.m. ET Aon will be hosting a webinar titled How Do You Create the DC Plan of the Future? This is the first in a two-part series of DC conversations. Aon experts will provide our point of view on how employers can address smart design, engagement, and governance.
During the webinar, we will share initial findings from our recent DC employer survey as we discuss:
- Designing a plan to optimize employee decisions;
- Understanding employees' broader finances and needs;
- Following a process for comprehensive plan management to help minimize risks; and
- Identifying opportunities from the SECURE Act to improve plan performance.
Webinar registration is available here.