Cutting Staff? Your Retirement Plan Might Pay the PriceA layoff can quietly trigger a 401(k) problem. If employer-initiated turnover hits 20% in a plan year, the IRS presumes a partial plan termination, and everyone affected becomes fully vested in employer contributions no matter what the vesting schedule says. Troutman warns that a multi-year phased RIF can stretch the measurement period, that some voluntary quits connected to the RIF count too, and that missing one of these invites participant lawsuits and IRS or DOL audits. Worth reading before the workforce decision is final, not after.
Cutting Staff? Your Retirement Plan Might Pay the PriceAs companies across major sectors continue to announce significant reductions in force, Troutman Pepper Locke examines the retirement plan consequences that can follow a shrinking workforce, and the compliance issues plan sponsors should be watching before the next round of cuts.
Executive Compensation Planning, Part 5: Employment Agreements, Severance, and Clawback ProvisionsThe fifth installment of the firm's executive-pay series covers the contractual frame from hiring through departure: employment agreements, severance design, and the Dodd-Frank clawback rules now binding on all listed companies.
New Jersey Launches Employee Separation Reporting PortalNew Jersey now requires employers to report every employee separation to the state DOL through a new portal, under a 2023 mandate taking effect. Mostly an HR-operations item, with severance and COBRA administration touchpoints.
Schuman v. Microchip: $13 Million Severance Settlement Wins Preliminary ApprovalJudge Gilliam granted preliminary approval of a $13 million settlement resolving ERISA fiduciary-breach and benefit-denial claims by 220 former Atmel employees over severance under the Atmel U.S. Severance Guarantee Benefit Program: $9.5 million to the class plus $3.5 million in fees, reported to deliver 80 to 100 percent of unpaid severance with interest.
Executive Compensation Planning: A Practical Guide to Designing and Protecting Executive Pay, Part 5: Employment Agreements, Severance, and Clawback ProvisionsThe fifth installment in the firm's executive compensation series turns to employment agreements, severance, and clawback provisions, following earlier parts on equity compensation, deferred compensation, Section 409A compliance, and the Section 280G golden parachute rules.
New York Employers Face New Restrictions on Severance, Tuition Repayment, and Sick TimeWhat employers should know about key developments this week: • Severance Agreement Overhaul: The No Severance Ultimatums Act, awaiting Governor Kathy Hochul’s signature, would remove the current age-based restriction, extend a 21-day review period plus a seven-day revocation period to all employees.
Executive Employment Agreements: 10 Key Issues to Get RightBonus, equity, and severance arrangements should be carefully coordinated with applicable tax rules, benefit plans, and corporate governance requirements to avoid unintended consequences.
New York Employers Face New Restrictions on Severance, Tuition Repayment, and Sick TimeWhat employers should know about key developments this week: Severance Agreement Overhaul: The No Severance Ultimatums Act, awaiting Governor Kathy Hochul’s signature.
Severance as Deferred Compensation: What You Need to Know About Code Section 409A and Its ExemptionsSection 409A of the Internal Revenue Code (Section 409A) imposes strict rules governing the timing of deferred compensation payments, such as when and under what circumstances such payments can be made.
Court Affirms WARN Act Claim Disallowance Against Yellow Corporation, Signals Skepticism Toward ‘Liquidating Fiduciary’ DefenseOn June 29, 2026, the U.S. District Court for the District of Delaware affirmed the disallowance of federal WARN Act claims asserted against Yellow Corporation by the International Brotherhood of Teamsters and other unions.