Amid bank uncertainty, our Employment and Executive Compensation and Benefits practices address frequently asked questions regarding potential consequences for delayed payroll, 401(k) and health premium payments, the impacts of furloughs and reductions in force and more.
TABLE OF CONTENTS
What is the primary impact to employers with funds at an unstable bank?
Can an employer delay payroll? What are the consequences of the failure to pay wages when due?
What if an employer has to make late 401(k) plan salary deferral contributions and fails to remit loan repayments to its 401(k) plan?
What if an employer has to make late health and welfare premium payments?
What if a bank cannot timely process funds needed for an upcoming payroll cycle?
What if a bank cannot timely process funds for the next payroll cycle, and alternative funding sources are not available?
What is a furlough?
Do equity awards continue to vest while an employee is on furlough?
Is an employee still eligible to receive health and welfare benefits if they are furloughed?
How is paid time-off (PTO) treated on a furlough?
What is a reduction in force (RIF)?
What considerations are applicable to a RIF?
What should an investor or lender know if they agree to advance funds to fund payroll?
Can an employer issue shares or offer other non-monetary income to employees in lieu of payroll if it does not have cash available?
Can an employer require its employees to waive their claims against its employer as a condition of...
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