Proposed Ban on Non-Competes in Massachusetts

Proposed legislation introduced by Governor Patrick to eliminate most forms of non-competition agreement in Massachusetts may be enacted before July 31, 2014.  This legislation creates significant risks...
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New IRS Program for Delinquent Form 5500 Filers of Non-ERISA Plans

The Internal Revenue Service recently established a one-year pilot program that provides plan administrators and plan sponsors of certain non-ERISA and foreign plans subject to the annual Form 5500 reporting...
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Non-U.S. Retirement Plans Must Comply with or Claim Exemption from FATCA by July 1

In January 2013, the Internal Revenue Service (IRS) published final regulations under the Foreign Account Tax Compliance Act (FATCA).  FATCA is intended to make it more difficult for U.S. taxpayers to...
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Final Regulations Allow Retirement Plan Payments for Accident, Health and Disability Insurance

On May 9, 2014, the Internal Revenue Service finalized regulations that govern the tax treatment of payments made by retirement plans to pay accident or health insurance premiums.  Under the final regulations,...
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Transaction Structures for Acquisitions by ESOP Companies

ESOPs have long provided an exit strategy for owners of privately held businesses and a platform for management buyouts.  Mergers and acquisition (M&A) advisors increasingly look to leveraged ESOPs...
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IRS Rules Captive Reinsurance Arrangement Involving Retiree Medical Benefits Qualifies as Insurance for Federal Tax Purposes

On May 18, 2014, the Internal Revenue Service (IRS) ruled that an employer’s wholly owned captive insurance subsidiary could reinsure the employer’s retiree medical benefit risks and still qualify...
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Rights of Job Applicants in Germany

The German Federal Labor Court made a very clear ruling regarding job applicants in Germany who are not offered the position for which such applicants applied.  In the Federal Labor Court’s view, a...
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View From McDermott: What Private Equity and Hedge Funds (and Their Benefit Plan Investors) Should Know About ERISA

ERISA imposes numerous obligations on fiduciaries holding assets of employee benefit plans. In addition to discharging its duties prudently and for the exclusive purpose of providing benefits to benefit...
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UK Employment Alert: A Member of a Limited Liability Partnership Can be a “Worker”

by Katie Clark and Sharon Tan In a judgment handed down today, the UK Supreme Court has confirmed that LLP members are “workers”, even if they receive a share of the LLP’s profits. These individuals...
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View From McDermott: Having Their Cake and Eating It Too—An Employer’s Guide to Managing Retirement-Eligible Employees Who Want to Start Retirement Benefits and Keep Working

“I would like to start receiving my retirement benefits now, but I would also like to keep working for a bit.  Can I do this?”  Baby boomers pose this question to their employers on a routine basis. Unfortunately,...
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