Legal

Millard Bennett
Managing Principal Stein, Sperling,
Bennett, DeJong, Driscoll & Greenfeig, P.C.

As we settle into a new year, increasing pressures associated with a declining economy are weighing heavily on individuals as well as the business community.

Consequently, the need for legal counsel has seen an upward trend as more and more people seek means to survive hardship and companies aim to safeguard against potential lawsuits. Business employment challenges and taxpayer issues are among the prevalent concerns we face in the wake of the recession.

The Bureau of Labor Statistics of the U.S. Department of Labor recently reported that the unemployment rate rose from 6.8% in November to 7.2% in December, a loss of 524,000 jobs. Under federal law, employers with more than 100 workers may be required to provide affected employees with 60 days notice of a "mass layoff" or "plant closing"; as well as notify local government officials. Failure to comply with this act may result in costly penalties to employers, including compensatory damages to employees.

To avoid detrimental consequences, employers are increasingly consulting employment law practices in the management of compliance requirements.

To a greater extent legal counsel is also being sought with regard to selection and separation issues. Issues relating to enforcement of restrictive covenants and/or discrimination in employment termination decisions are increasingly being raised.

According to the Equal Employment Opportunity Commission's Fiscal Year 2008 Performance and Accountability Report, the EEOC received 95,402 private sector charges of discrimination, a 15.2% increase in all charges filed in FY 2007. With employee lawsuits on the rise, employment law attorneys are helping employers properly handle layoffs and terminations.

In the tax arena, tax law attorneys are keeping individuals abreast of information to help them stay afloat in the declining economy. The Internal Revenue Service has reacted quickly to taxpayers' anxieties. In News Release 2009-2, IRS announced that its employees will have greater discretion to suspend collection action in hardship cases and more flexibility to continue installment agreements of taxpayers who have missed a payment. Congress too has moved to grant tax relief. Those who lose their homes through 2009 will generally not be taxed on relief from indebtedness on up to $2 million of acquisition debt related to a principal residence. Those who can afford to buy a home and can close before July will generally qualify for a tax credit of $7,500 if they have not owned a principal residence in the previous three years and if their income is below the $75,000- $95,000 phase-out threshold if single or $150,000-$170,000 if married. And look for another round of rebates or similar benefits in 2009 to give an ill economy a quick feel-better "shot in the arm."

At Stein Sperling, our experienced Employment Law Group and Tax Law Group recognize the challenges our society faces in today's economic climate. Since 1978, we have successfully guided many clients through turbulent times and in 2009 we are poised to continue this standard of service.