NEW JERSEY ENACTS PAID FAMILY LEAVE LAW
Employees Eligible for Short-Term Benefits Beginning July 1, 2009
In May, New Jersey joined California and Washington with Paid Family Leave. Payroll deductions will begin on January 1, 2009. On July 1, 2009, the new law will provide short-term disability benefits for the following:
- Up to six weeks of paid leave during any 12- month period
- Receive benefits of up to two-thirds of the employee’s pay, up to $524 per week
- Allows employees to care for a newborn or newly adopted child (with 30 days notice from the employee to the employer and must be taken consecutively)
- Allows employees to care for a seriously ill family member (with 15 days notice, if possible, and may be taken intermittently for up to 42 days)
Employers will be required to post and distribute a form notice prepared by the New Jersey Department of Labor and a separate notice for all new hires.
This is tricky legislation for small employers (less than 50 employees) who were exempt from the federal Family and Medical Leave Act (FMLA) or New Jersey’s Family Leave Act (FLA). Unlike employers with more than 50 employees, small employers are not required to keep an employee’s job open. Nevertheless, small employers will have new responsibilities in terms of drafting new policies and managing their businesses with absent employees.
With any leave of absence legislation, employers should annually review their leave policies to ensure compliance and to prevent potential misuse by employees. Please contact us for a free consultation for our services.
Michael Osborne
mosborne@lotlawfirm.com
USCIS TO ALLOW F-1 STUDENTS OPPORTUNITY TO REQUEST CHANGE OF STATUS
Short-Term, Immediate Measure for Beneficiaries of Selected H1-B Petitions
On April 18, 2008, the U.S. Citizenship and Immigration Services (USCIS) announced that it would allow F-1 students who are the beneficiaries of selected H-1B petitions for fiscal year (FY) 2009 to request a change of status in lieu of consular notification.
This short-term measure follows an April 8, 2008 interim final rule that, among other actions, automatically extends the F-1 status of qualifying students who are the beneficiaries of approved H-1B petitions to cover the gap between the expiration of a student’s F-1 status and the H-1B employment start date of October 1. To obtain the automatic extension, a student must be the beneficiary of an H-1B petition filed for the next fiscal year (with an October 1 employment start date) and have requested a change of status. For F-1 student beneficiaries of petitions that USCIS subsequently rejects, denies, or revokes, or for those who violate their status, the automatic extension terminates at that time.
Since the rule was published after the filing period had closed for new FY 2009 H-1B petitions, many petitioners of F-1 students did not include a request for a change of status with the H-1B petition. Instead, petitioners requested consular notification based on the assumption that these students would have been required to leave the United States to obtain an H-1B visa at a consular office abroad. USCIS has determined that it will allow petitioners of F-1 students whose H-1B petitions were randomly selected to receive an H-1B visa number for FY2009 following the closure of the filing period, to now request a change of status on behalf of qualified beneficiaries, if such requests are received within 30 days of the issuance of the receipt notice.
To request a change of status in lieu of consular notification, petitioners (or authorized representatives) should send an e-mail with the request to the USCIS service center where their petition is pending within 30 days of the issuance of the receipt notice. Special email addresses for each service center have been established specifically for this purpose. Petitioners should e-mail their requests for change of status in lieu of consular notification upon receipt of the notice so the agency has the request before completing H-1B petition adjudication. The requests should include the receipt number and both the petitioner’s and beneficiary’s name, date of birth, I-94 (Arrival/Departure Record) number, and Student and Exchange Visitor Information System (SEVIS) number.
Ruby Theivakumar
rubyj@lotlawfirm.com
DIVORCE AND TAXATION ISSUES
The Non-Recognition Rule
Generally, you will not be taxed on the transfer of property to your spouse as a result of divorce. Pursuant to the federal tax code, the Internal Revenue Service (IRS) will not recognize gain or loss on the transfer of property between spouses, or between former spouses if the transfer is because of a divorce. This is known as the “Non-recognition Rule.” This rule applies even if the transfer was in exchange for cash, the release of marital rights, the assumption of liabilities, or other consideration. However, you may have to report the transaction on a gift tax return.
The definition of “property” includes all property whether real or personal, tangible or intangible, or separate or community. Included in this definition are Health Savings Accounts, Archer Medical Savings Accounts, and IRA Accounts. Property acquired after the end of your marriage and transferred to your former spouse may also be exempt, however services are not.
The IRS will consider a property transfer incident to your divorce if the transfer occurs within one year after the date your marriage ends, or is related to the ending of your marriage. The ending of your marriage, includes not only divorce, but also annulment.
A property transfer is related to the end of a marriage when it is made pursuant to a settlement agreement or judgment of divorce, and occurs within 6 years after the date your marriage ends. If that transfer occurs under different circumstances, then the IRS will presume it is not “related to the end of your marriage.” If this happens, then the burden is on you to prove that the transfer is related to the end of your marriage.
There are exceptions to the non-recognition rule which you should be aware of, and plan around. The rule does not apply in the following situations: Your spouse or former spouse is a nonresident alien; certain transfers in trust; and certain stock redemptions under a divorce or separation instrument, or a valid written agreement that are taxable under applicable tax law.
These issues should be investigated by your taxation professionals and planned for prior to the resolution of your case. Please contact us for a free consultation for our services in this regard.
Luke Lynch
llynch@lotlawfirm.com
INVESTMENT ADVISOR REQUIREMENTS
"Annual" Risk and Compliance Reviews
Registered investment advisers are required to “annually” review their compliance policies and procedures to assess their effectiveness, See SEC Rule 206(4)-7. The SEC has emphasized that it expects investment advisory firms to review their business risks on an annual basis to ensure that compliance policies and procedures adequately address all identified risks.
The SEC has provided guidance with respect to certain areas that should, at a minimum, be addressed in this annual “risk” inventory review, including:
- Marketing/Performance materials
- Form ADV Disclosures
- Client Invoice/Fees
- IPO Offerings
- Soft Dollars/Kickbacks
- Compensation
- Client Investment Objectives/Restrictions
- Trade Tickets/Allocations
- Best Execution
- Non Public/Proprietary Information Safeguards
- Personal and Proprietary Trading Activity
- Safekeeping of Client Funds/Securities
This annual risk analysis should be properly maintained and documented in such a manner that it can be provided to any appropriate regulatory body (e.g., SEC, state securities agencies) if requested. By complying with SEC Rule 206(4)-7, advisory firms will maintain control over their business (e.g. financial and regulatory) and enhance its defense position in the event of any litigation/arbitration or regulatory matters.
Our firm can provide an annual independent risk assessment designed to review current business practices with your compliance policies and procedures to ensure all risks are identified and addressed. Please contact us for a free consultation for our services.
Alan Gilmore
agilmore@lotlawfirm.com
CONTACT US
245C Nassau Street
P.O. Box 520
Princeton, NJ 08542-0520
Tel. (609) 921-7770
Fax. (609) 921-7773
www.lotlawfirm.com
