Employment Agreements and Severance
August 31, 2006
Section 409A of the Internal Revenue Code was enacted on Oct. 22, 2004 in an effort to regulate executive pay practices through the federal tax system. Failure to account for ' 409A's impact can seriously and adversely affect the economics of employment agreements, severance agreements, and other similar plans or other arrangements providing for a deferral of compensation. Consequently, this article details how ' 409A applies to these arrangements.
Social Security Mismatch Letters
August 31, 2006
On June 14 of this year, the Department of Homeland Security (DHS) published for comment in the Federal Register proposed rules outlining recommended procedures for employers to follow in response to receiving Social Security mismatch notices. In promulgating the proposed rules, DHS outlined a new enforcement position ' namely, that no-match letters are relevant evidence that can put employers on notice about the immigration status of employees.
Sprinting Toward a Brick Wall
August 31, 2006
The Baby-Boomer generation entered the practice of law in unprecedented numbers, carrying lofty expectations and the collective willpower to engender unprecedented billable hours. Now this tsunami of active lawyers is moving toward senior status, phase-down and retirement. Despite the complex emotions engendered by retirement, the Baby-Boomer generation of lawyers ' and the law firms in which they have participated or help build ' <i>must</i> plan their future.
Workplace Privacy
August 31, 2006
Last month, we discussed HIPAA, Security Breach Notification Laws, and Safeguarding Personal Information. We conclude with a brief analysis of electronic privacy issues.
The Computer Fraud and Abuse Act
August 31, 2006
In a recent decision written by Judge Richard Posner, The United States Court of Appeals for the Seventh Circuit determined that the Computer Fraud and Abuse Act (CFAA) may be used to bring a private cause of action against a former employee who permanently erased confidential data from his company-issued laptop before returning it to the company. <i>International Airport Centers, L.L.C. v. Citrin</i>, (Slip Op.) No. 05-1522 (7th Cir. March 8, 2006). In so holding, the Seventh Circuit has joined the current tide of federal courts that have permitted companies to use the CFAA as a means with which to defend themselves against the malicious and competitive acts of departing employees.
Thompson Memorandum on Fees Found Unconstitutional
August 31, 2006
Strong words: KPMG refused to pay its employees' legal fees because the government held a 'gun to its head' and thus 'violated the Constitution it is sworn to defend.' This statement from U.S District Judge Lewis A. Kaplan in the KPMG tax shelter case have shaken the foundations of corporate prosecutorial policy. <i>United States v. Stein et al.</i>, 2006 WL 1735260, (S.D.N.Y. June 26, 2006).
Quarterly State Compliance Review
August 31, 2006
This edition of the Quarterly State Compliance Review looks at some legislation of interest to corporate lawyers that went into effect during the summer of 2006, including amendments to Delaware's corporation and unincorporated entity laws. This edition also looks at recent decisions from the courts of Delaware, Nevada, and California.
Records Management Goes 'C Suite'
August 31, 2006
Just 5 years ago, if you were to approach a C-suite executive about discussing his company's record-keeping policies and procedures, you likely would have been shown the door. After all, wasn't record-keeping, file storage and electronic data retrieval the purview of middle management; perhaps residing somewhere in facilities management, information technology, or human resources? Today, a few years and numerous perspective-changing developments later, a topic that once resided quietly in back offices and file rooms has emerged at the epicenter of high-level business conversations around internal controls and risk management. What happened?
