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Hindustan Times
a day ago
- Business
- Hindustan Times
Who Gets ‘No Tax on Overtime'? It's Messy.
WASHINGTON—President Trump's popular 'no tax on overtime' policy will help millions of workers save an estimated $90 billion through 2028, but the law is full of fine print and potential confusion over who is eligible for the new savings. Under the law, the only overtime compensation that qualifies for the new deduction is the extra wages—the 'half' of 'time and a half' pay—required under the federal Fair Labor Standards Act, or FLSA. That definition excludes overtime paid to airline employees, railroad workers and other transportation laborers covered by separate overtime laws. It doesn't include some payments under agreements outside FLSA or workers specifically exempted from FLSA. And it excludes payments required under state laws like California's, where overtime starts after eight hours daily instead of 40 hours weekly. The upshot: The break will cut taxes by thousands of dollars for many overtime workers, but some might not necessarily get the tax break, and figuring out who qualifies could be tricky. 'There's a big gap between that assumption by many hopeful people and what actually we think is going to happen,' said Mary Hevener, an attorney at Morgan Lewis who advises employers. 'A lot of the overtime that people are receiving is not going to be subject to this tax benefit.' Employers, tax lawyers and payroll professionals are wrapping their arms around the deduction, which Trump signed into law July 4 in the 'one big, beautiful bill.' Like new tax breaks for tipped workers and senior citizens, 'no tax on overtime' is retroactive to the beginning of 2025. The overtime-pay deduction is capped at $12,500 for individuals and $25,000 for married couples. That could lower some households' tax bills by $6,000, and it is available whether or not taxpayers itemize deductions. The break starts shrinking once income reaches $150,000 for individuals and $300,000 for married couples. Because it is an income-tax deduction, workers still owe payroll taxes for Social Security and Medicare on overtime pay. Lawmakers tied the tax break to the FLSA overtime definition because that was a known federal standard that could be implemented and because they wanted to limit revenue consequences, according to people familiar with the decision. The Treasury Department expects to issue guidance to help workers and employers report and claim the deduction. For 2025, the government isn't planning to change Form W-2, which reports earnings to workers and the Internal Revenue Service. Instead, as employers update systems, workers will likely rely on separate payroll statements to claim the deduction on tax returns in early 2026. The Treasury Department is considering providing relief from certain penalties during this first year. The government may also issue guidance about overtime definitions and adjusting paycheck withholding. 'Treasury began working with businesses and payroll providers three months ago—well before the bill's passage—to ensure that the president's no-tax-on-overtime commitment is implemented as seamlessly as possible for employers and delivers the full tax relief hardworking Americans were promised,' Deputy Treasury Secretary Michael Faulkender said in a statement. Railroad workers are another group whose overtime pay won't qualify for the tax deduction. Early frustrations The deduction's limits are already frustrating airline and railroad workers, who often get overtime pay under union contracts and are exempt from FLSA because they are covered by the Railway Labor Act. One result is different treatment for similar jobs. An airline jet mechanic wouldn't get the deduction but an airplane mechanic at a separate maintenance company could. 'It's a legislative blunder and a political blunder,' said John Samuelsen, international president of the Transport Workers Union, who said he thought the language was unintentional. 'This will become a huge political issue, particularly for the Republicans, if it's not fixed.' An earlier no-tax-on-overtime bill from Sen. Roger Marshall (R., Kan.) contained a more expansive definition. The American Association of Railroads is urging Congress to change the final language. Chris Comeau, a TWU member in Massachusetts, works 20 to 30 hours of overtime most weeks cleaning commuter trains and was hoping the break could save him thousands of dollars. Comeau said he supported Trump and the no-tax-on-overtime idea but was disappointed that rail workers won't qualify. 'You don't get more middle class than guys that are fixing trains and riding on trains and cleaners,' he said. Employers will ultimately track two different numbers: overtime they pay and overtime qualifying for the deduction, said Curtis Tatum, senior director of legal and compliance at PayrollOrg, an association of payroll professionals. 'It's going to be a big learning curve,' he said. Employers responsible for implementing the deduction don't get direct benefits, said Steven Johnson of Morgan Lewis. They may have to explain to employees the differences between overtime amounts on pay stubs and tax forms. Workers who do benefit and don't try to adjust paycheck withholding now will likely see the deduction increase tax refunds in early 2026. Campaign promise now reality Trump pitched 'no tax on overtime' during his campaign with other tax-cut promises. Republicans layered them atop extensions of expiring tax cuts. Trump's new policies are more popular with voters than the law as a whole. In a recent Wall Street Journal poll, 72% of respondents favored the overtime deduction; support was higher among people making between $20,000 and $80,000. At a recent House Ways and Means Committee hearing in Las Vegas, paint foreman Eric Byington praised the idea. 'When you want to hustle, work overtime, that money goes straight into your pocket,' he said. 'These tax breaks are immense for the regular working people.' The benefit could spur disputes between employees and employers. The new advantage for employees covered by FLSA puts more pressure on distinctions between independent contractors and employees, and between workers who qualify for FLSA overtime and those who are exempt. 'There's massive, constant litigation over this issue, whether a person should be exempt or not,' said Thomas Cryan, an attorney at Saul Ewing. 'There's going to be lots of gray areas.' Write to Richard Rubin at
Yahoo
3 days ago
- Automotive
- Yahoo
Honda worker's Kronos outage-related timekeeping lawsuit survives
This story was originally published on HR Dive. To receive daily news and insights, subscribe to our free daily HR Dive newsletter. Dive Brief: A Honda employee may proceed with his lawsuit alleging that the company's U.S. division violated the Fair Labor Standards Act and state laws when it failed to pay him overtime in the aftermath of the 2021 Kronos outage, a federal judge held July 24. In Albert v. Honda Development & Manufacturing of America, LLC, Judge Edmund Sargus Jr. denied Honda's motions for summary judgment on the question of whether the company excessively delayed compensation for overtime that went unpaid during the outage. However, Sargus granted the company's motion for summary judgment on a portion of the plaintiff's Ohio state law claims while holding in abeyance a decision on whether Honda is criminally liable under Ohio law. The case consolidated a series of lawsuits relating to the outage, including one 2022 complaint originally filed in Alabama. Dive Insight: The facts outlined in Albert are notable given the steps Honda said it took during and after the events of the Kronos outage to compensate employees. The company was one of several forced to take emergency actions to address payroll concerns following the incident. For example, Honda offered affected employees a $1,000 interest-free loan during the second week of the outage and implemented a new pay method that would compensate nonexempt employees for 40 hours at their regular rate, as well as three hours at their overtime rate, per court documents. After the outage was resolved, Honda began a reconciliation process in which it attempted to reconcile differences between the new pay method and what should have been paid to affected workers. This 'involved analyzing about three million Kronos time swipes, recovering missing scans, and reviewing call-in and leave-of-absence records,' the court said. Honda issued approximately 20,000 reconciliation payment statements to employees, including a gross amount of more than $2,000 to the lead plaintiff in Albert. When he disputed the amounts provided for certain weeks of the outage, Honda paid the plaintiff for all hours at all pay codes that he asserted for the disputed weeks, as well as an additional inconvenience payment and attendance bonus. Nonetheless, the plaintiff claimed that Honda did not act in good faith because the company lacked a backup timekeeping system before the incident that would have allowed it to continue to track workers' hours. He also alleged that Honda's payment was excessively delayed in violation of the FLSA as well as Ohio's Prompt Pay Act. Sargus held that Honda failed to show that the lead plaintiff 'lacks evidence that his overtime payments were delayed for a period longer than reasonably necessary.' He declined to opine on the question of whether the company owed back pay or liquidated damages to the plaintiff. Other employers affected by the outage settled workers' lawsuits for millions of dollars in recent years. For instance, food corporation Cargill agreed to a $2.4 million settlement of similar claims in 2023, while health system UMass Memorial Health reached a $1.2 million settlement that same year. Litigation over the outage also has extended to UKG, the HR vendor and parent company of Kronos. The ransomware attack against UKG that precipitated the outage raised questions about HR vendors' legal liability during disruptions caused by cybercrime. Recommended Reading Amazon settles lawsuit alleging COBRA notices were threatening
Yahoo
25-07-2025
- Business
- Yahoo
This Bad Trump Habit Will Feel All Too Familiar If You Have A Toxic Boss
If you're in President Donald Trump's inner circle, your workday might not end even when you're in bed after midnight. In a recent New Yorker profile on Secretary of Commerce Howard Lutnick, Lutnick detailed Trump's regular late-night calls to him around 1 a.m., when he is in bed. Lutnick told the New Yorker writer that during these nightly bedtime calls, he and Trump discussed both work-related tariffs and 'sporting events, people, who'd you have dinner with, what was this guy like, can you believe what this guy did, what's the TV like, I saw this on TV, what'd you think of what this guy said on TV, what did you think about my press conference, how about this Truth?' For Lutnick, these wide-ranging, late-night chitchats are not exclusive to him: 'Trump has other people he calls late at night,' he told the New Yorker. But it's different when these 1 a.m. calls are coming from your boss. Lutnick, who sees himself as a 'dealmaker-in-chief' but gets described as an 'errand boy' for Trump by a critic in the profile, has gone all-in on Trump's worldview. But that doesn't mean you should. Unfortunately, Trump is not the only boss who likes to contact employees at all hours of the night ― this is an unfortunately all-too-common nightmare in the workplace. 'Some of these bosses, they call, they don't even have a question. They just want to have an audience while they think out loud. It's ridiculous,' said California-based labor and employment attorney Ryan Stygar, who consults with workers on these cases. Lutnick is on his own, but for other workers in America, there are legal and work-savvy strategies you can use to fight back. Why Employees Have The Right To Be Paid For After-Hours Work Government workers like Lutnick are excluded from the protections of federal labor law on overtime pay, but for many jobs in America, Trump's lack of work/life boundaries would raise red flags. 'A Cabinet member is almost certainly considered to be an employee who is exempt from overtime,' said Florida-based employment attorney Donna Ballman. 'Unfortunately for exempt employees, that means employers can work them 24/7 without paying more than their base salary.' But in a different industry, Trump's behavior might financially cost him as a boss. That's because the federal Fair Labor Standards Act requires employers to pay workers covered under the law for all 'hours worked' –– including time spent responding to a boss' late-night, repeated calls. Generally, the FLSA covers many workers in retail, hospitality, event-planning and health care, to name a few common examples. 'If he were non-exempt, then [Lutnick] would be entitled to be paid for work-related calls after hours,' Ballman noted. Under federal law, employers are typically excused from paying for work-related calls that last only a few minutes, but the law frowns upon long repeated calls to employees after their established workday. California goes one step further and considers even a few minutes of regular repeated overtime, like the time you spent opening and closing a Starbucks store, to be fair game for a California employer to pay for. 'Generally, for calls or work that take 4 to 10 minutes, and occurs at a somewhat regular basis, non-exempt California workers must be paid,' Stygar explained. California is also following in the steps of countries like Portugal, which has a 'right to rest' law for employees — California is now proposing a similar law of its own. If passed, 'this would prohibit employers from contacting you with work-related issues after hours, except for 'emergencies' and brief scheduling conversations,' Stygar explained. 'The proposed bill imposes a fine of at least $100 for the violations.'But that bill has yet to become law. In the meantime, bosses may just fire you rather than pay you for the time you are owed, because most employees are 'at will' in America, meaning they can be fired for any reason, as long as it's not discriminatory. Bosses have leverage over employees because they know you might be working here to make ends meet, 'and if I fire you, you can't pay rent anymore. So maybe you're going to give me 20-30 minutes of pre-work every week, or you will take up my call,' Stygar said. But there are other ways to fight back beyond seeking monetary compensation. How To Push Back Against Bad Bosses Who Don't Respect Work/Life Balance If you see your boss's name on your caller ID, you might feel like you have no choice but to pick up and 'uh-huh' along to their demands. But you don't have to accept a boss's constant encroachment on your free time. There are strategic ways to set boundaries. Here's how. Clarify what after-hours means to your boss. Bad bosses don't set expectations well, so you need to manage up and clarify what your work hours are in order to get peace of mind. Once you have documented a pattern of late-night emails and texts, go to your boss and explain, 'Listen, I know that you reach out to me after hours. I just want to be clear: Are these times where you need me to get back to you right away, or can these wait till the next day?' said Mary Abbajay, president of the leadership development consultancy Careerstone some industries, like politics and law, late emergency calls may be the industry norm. 'If you want a clear definition between your work life and your home life, you've got to choose the right job, the right industry, the right profession,' Abbajay said. Learn if you are the only one being singled out. Talk to other people on your team and find out if you are the only person your boss contacts after hours. If you are being singled out, consider whether it's because of your identity, like your race, age, sex, national origin or disability. These are protected statuses, and you could have a potential discrimination claim, Ballman said. 'If you are on FMLA [Family and Medical Leave Act], your boss is supposed to leave you alone on your time off. If you are being called during dinnertime when your boss knows you have toddlers, and childless employees are not being targeted, it could be sex discrimination,' Ballman listed as examples. If your attempts to get compensated are going nowhere, seek legal remedies. 'Document the hours. Submit for payment. If they say, 'No,' you can talk to a lawyer about your options,' Stygar said. Join forces with co-workers. If you're not the only one your boss is texting and calling, talk to your co-workers about pushing back as a united front. 'If you talk to the right colleagues, you at least get some support, and you get some affirmation that you're not the only one, or if you are the only one, what does that tell you?' Abbajay noted. Even people in the Trump administration might be doing this, Abbajay suggested: 'I'm sure they're all having conversations about, 'How do you handle Trump? How often do you pick up the phone?'' Complaining to co-workers about your no-good boss can even lead to lasting change in unionized workplaces. 'Better yet, form a union and make sure that the right to disconnect is clearly spelled out in your collective bargaining agreement,' Ballman advised employees going through this. Bad bosses ultimately come in all kinds of flavors ― they harangue, they harass, and they just might call you in the middle of the night. Although these late-night calls might be the norm for Trump, it doesn't have to be your workplace reality. If these constant calls are 'not serving you, personally, professionally, health-wise, then I really think it's time to look at the devils that you don't know,' Abbajay said. 'Look at other organizations. Because while this is common, it's not the norm.' Related... 6 Signs Your Boss Might Be A Narcissist The 7 Personalities Of Bad Bosses Who Think They're Good Bosses Can You Work For An Unethical Boss Without Becoming Unethical?
Malaysian Reserve
19-07-2025
- Business
- Malaysian Reserve
Labor & Employment Lawyers, at Blumenthal Nordrehaug Bhowmik De Blouw LLP, File Suit Against Addiction Research And Treatment, Inc., for Alleged Failure to Reimburse Employees for Business Expenses
Addiction Research And Treatment, Inc. allegedly failed to reimburse employees for business expenses, which included personal cell phone usage on behalf of Defendant. **THIS IS AN ATTORNEY ADVERTISEMENT** TULARE, Calif., July 19, 2025 /PRNewswire/ — The Sacramento employment law attorneys, at Blumenthal Nordrehaug Bhowmik De Blouw LLP, filed a class action complaint alleging that Addiction Research And Treatment, Inc. violated the California Labor Code. The Addiction Research And Treatment, Inc. class action lawsuit, Case No. VCU321645, is currently pending in the Tulare County Superior Court of the State of California. A copy of the Complaint can be read here. According to the lawsuit filed, Addiction Research And Treatment, Inc. allegedly (a) failed to pay minimum wages, (b) failed to pay overtime wages, (c) failed to provide legally required meal and rest periods, (d) failed to provide accurate itemized wage statements, (e) failed to reimburse for required expenses, (f) failed to pay sick wages, and (g) failed to provide wages when due, all in violation of the applicable Labor Code sections listed in California Labor Code Sections 201-203, 226, 226.7, 233, 246, 510, 512, 1194, 1197, 1197.1, 2802, and the applicable Wage Order(s), and thereby gives rise to civil penalties as a result of such alleged conduct. Additional allegations include Addiction Research And Treatment, Inc. failing to reimburse employees for required business expenses. California Labor Code Section 2802 expressly states that 'an employer shall indemnify his or her employee for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties…' During employment, Plaintiff and other California Class Members were allegedly required to use their personal cellular phones as a result of and in furtherance of their job duties. For more information about the class action lawsuit against Addiction Research And Treatment, Inc., call (800) 568-8020 to speak to an experienced California employment attorney today. Blumenthal Nordrehaug Bhowmik De Blouw LLP is an employment law firm with offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside and Chicago that dedicates its practice to helping employees, investors and consumers fight back against unfair business practices, including violations of the California Labor Code and Fair Labor Standards Act. If you need help in collecting unpaid overtime wages, unpaid commissions, being wrongfully terminated from work, and other employment law claims, contact one of their attorneys today. **THIS IS AN ATTORNEY ADVERTISEMENT** Media ContactNicholas De BlouwBlumenthal Nordrehaug Bhowmik De Blouw LLP(800) 568-8020[email protected]
Malaysian Reserve
15-07-2025
- Business
- Malaysian Reserve
Labor & Employment Lawyers, at Blumenthal Nordrehaug Bhowmik De Blouw LLP, File Suit Against Curo Pet, LLC, for Alleged Failure to Reimburse Employees for Business Expenses
The animal medical service provider, Curo Pet, LLC allegedly failed to reimburse employees for business expenses, which included personal cell phone usage on behalf of Defendant. **THIS IS AN ATTORNEY ADVERTISEMENT** SAN FRANCISCO, July 15, 2025 /PRNewswire/ — The San Francisco employment law attorneys, at Blumenthal Nordrehaug Bhowmik De Blouw LLP, filed a class action complaint alleging that Curo Pet, LLC violated the California Labor Code. The Curo Pet, LLC class action lawsuit, Case No. CGC-25-625576, is currently pending in the San Francisco County Superior Court of the State of California. A copy of the Complaint can be read here. According to the lawsuit filed, Curo Pet, LLC allegedly (a) failed to pay minimum wages, (b) failed to pay overtime wages, (c) failed to provide legally required meal and rest periods, (d) failed to provide accurate itemized wage statements, (e) failed to reimburse for required expenses, (f) failed to pay sick wages, and (g) failed to provide wages when due, all in violation of the applicable Labor Code sections listed in California Labor Code Sections 201-203, 226, 226.7, 233, 246, 510, 512, 1194, 1197, 1197.1, 2802, and the applicable Wage Order(s), and thereby gives rise to civil penalties as a result of such alleged conduct. Additional allegations include Curo Pet, LLC failing to reimburse employees for required business expenses. California Labor Code Section 2802 expressly states that 'an employer shall indemnify his or her employee for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties…' During employment, Plaintiff and other California Class Members were allegedly required to use their personal cellular phones as a result of and in furtherance of their job duties. For more information about the class action lawsuit against Curo Pet, LLC, call (800) 568-8020 to speak to an experienced California employment attorney today. Blumenthal Nordrehaug Bhowmik De Blouw LLP is an employment law firm with offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside and Chicago that dedicates its practice to helping employees, investors and consumers fight back against unfair business practices, including violations of the California Labor Code and Fair Labor Standards Act. If you need help in collecting unpaid overtime wages, unpaid commissions, being wrongfully terminated from work, and other employment law claims, contact one of their attorneys today. **THIS IS AN ATTORNEY ADVERTISEMENT** Media ContactNicholas De BlouwBlumenthal Nordrehaug Bhowmik De Blouw LLP(800) 568-8020nick@
