New Tax Bill: Areas of Interest for Small Businesses
The Tax Cuts and Jobs Act of 2017 (the “Act”) provides the most comprehensive tax reform in more than three decades. Small and medium business owners will find that the Act reduces their total taxes both on an entity and an individual level, while also creating tax incentives to spend on capital expenditures through accelerated depreciation of both used and new property. Here are some highlights from the Act. Tax Rates on C Corporations and Pass-Through Entities The change in . . . Read More
Intern or Employee? DOL Adopts Courts’ “Primary Beneficiary” Analysis for Determining When Your Unpaid Intern Will Be Deemed an Employee Under the FLSA
The use of unpaid interns is a common practice across many industries, especially in the D.C. Metro area. And the question recently addressed by the Ninth Circuit is not a new one: under what set of circumstances does an unpaid intern in the private sector cross the line and become an employee under the Fair Labor Standards Act (“FLSA”) and thus become entitled to compensation? Since 2010, the Department of Labor (“DOL”), when grappling with this question, has applied a . . . Read More
Enhanced Post-Award Debriefing Requirements Included in Final Version of FY 2018 NDAA
We recently wrote about enhanced post-award debriefing requirements included in the Senate’s version of the National Defense Authorization Act (“NDAA”) for Fiscal Year 2018 [ read article here ]. The final NDAA signed into law on December 12, 2018, incorporates many of the changes from the Senate version, though the changes are not as burdensome on the Department of Defense (“DoD”) in the final NDAA. For instance, the final NDAA requires a written or oral debriefing for all contract and task order awards . . . Read More
New Year, New Certification?
With a new year upon us, it is an optimal time for contractors to review their size/status certifications on SAM.gov. A contractor’s representations in the SAM database qualify as certifications upon which federal agencies and prime contractors may rely. An inaccurate certification on SAM could lead to a protest by the SBA or liability under the False Claims Act. Therefore, it is vital that contractors keep these certifications up-to-date. SBA’s regulations require contractors to certify their size in SAM “at . . . Read More
GSA & OMB are Holding a Public Meeting and Requesting Written Comments Regarding Implementation of the “Amazon Amendment”
The General Services Administration (“GSA”) and the Office of Management and Budget (“OMB”) are providing an important opportunity to the public to provide input into the implementation of the so-called “Amazon Amendment,” Section 846 of the recently-enacted National Defense Authorization Act (“NDAA”) for Fiscal Year 2018. GSA has published in the Federal Register a Notice of public meeting and request for information (“Notice”) which can be found here . NDAA Section 846 (“Amazon Amendment”) The Amazon Amendment is anticipated to have . . . Read More
Watch Out! Wage and Hour and Benefits Changes to Know About Now
This year has been the year of change in employee pay and benefits, particularly if you are an employer practicing in more than one locality. Due to the federal government’s failure to pass wage and benefit legislation, a wave of action has spread across the country at the state and local level. Additionally, the Tax Cuts and Jobs Act (H.R. 1) that is expected to be signed by President Trump in the coming days contains additional changes to benefits that . . . Read More
Trump’s NLRB Makes Resolutions for the New Year: Rolls-Back Standards on Handbooks and Joint Employment Status
In a flurry of decisions issued last week, the National Labor Relations Board (the “Board” or “NLRB”) overruled several Obama-era precedents, including decisions on handbook policies and joint employer standards. While headlines might give the impression that changes in the Board’s view are ground breaking, the decisions represent expected policy shifts given the change in the administration. The rush to issue these decisions comes at the end of Republican Chairman Phil Miscimarra’s term, leaving the Board’s composition between Republicans and . . . Read More
2018 NDAA Makes Big Changes to HUBZone Program
The 2018 National Defense Authorization Act (“NDAA”), signed last week, made some significant changes to the Small Business Administration’s (“SBA”) Historically Underutilized Business Zone (“HUBZone”) Program. Most of the changes will not take effect until January 1, 2020, but one important change is effective immediately: the current HUBZone maps will be “frozen” and will not change until at least January 1, 2020. This means that areas that currently are designated as HUBZone (or in redesignated status) will remain HUBZones until . . . Read More
Department of Labor Seeks to Loosen Reins on Restaurant Industry By Rescinding Regulation of Certain Tip Pooling Practices
Earlier this year, in “Restaurant Industry Headed To U.S. Supreme Court Over Tipping Practices”, I wrote about the Department of Labor’s (“DOL”) 2011 Regulation related to restaurant tip distribution practices and its journey to the U.S. Supreme Court. The regulation in question announced broadly that “[t]ips are the property of the employee” and “prohibited [employers] from using an employee’s tips . . . for any reason other than . . . [a]s a credit against its minimum wage obligations to . . . Read More
The Land Mines of Unpopulated Joint Ventures
SBA has all but eliminated populated joint ventures (i.e., a joint venture with employees of its own performing direct labor). As a result, companies that want to form a joint venture for set-aside opportunities and not be affiliated with each other need to form an unpopulated joint venture. While SBA’s preference for unpopulated joint ventures is meant to benefit small business venturers and provide them with more hands-on experience, it creates wrinkles for the venturers. 1. Scope of Work When . . . Read More