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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UK Employment Alert – Stopping The Clock: Mandatory Pre-Claim Conciliation Takes Effect From 6 May 2014

As we mentioned in our last UK Employment Alert, the government has introduced a new, pre-claim conciliation procedure for employment disputes. As of 6 May 2014, that procedure became mandatory. Before...
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Did France Really Ban Work E-Mails After 6 p.m.?

Several international news sources recently reported that French law now prevents employees from answering their mobile phones or professional e-mails after 6.00 pm (see articles in the Guardian and USA...
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U.S. Department of Labor Issues Proposed Regulations Amending the COBRA Notice Requirements

On May 2, 2014, the U.S. Department of Labor (DOL) Employee Benefits Security Administration (EBSA) issued proposed regulations which seek to amend the notice requirements under the Consolidated Omnibus...
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Supreme Court Grants Certiorari to Review Sixth Circuit’s Pro-Union Inference in Retiree Health Insurance Benefits Cases

The Supreme Court of the United States has agreed to resolve a circuit split about how courts should interpret collective bargaining agreements that provide for health insurance benefits for retired employees...
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