IRS Issues Guidance Expanding and Modifying 409A Correction Program and New Reporting Requirements for Stock Transfers under ISOs and ESPPs
The IRS issued Notice 2010-80 (the “Notice”), which made favorable changes to the procedures for voluntary correction of failures to comply with Internal Revenue Code Section 409A (“Section 409A”) originally issued in Notice 2010-6. These changes should make the correction procedures more accessible and less burdensome. For a summary of the changes, please click here to read the Executive Compensation Update published by the Employee Benefits and Executive Compensation Client Service Group on December 7, 2010.
Virginia Federal Court Rules Health Reform “Individual Mandate” Unconstitutional
On December 13, the U.S. District Court for the Eastern District of Virginia ruled that the individual mandate of the Patient Protection Affordable Care Act, as amended (“PPACA”), which requires individuals to purchase health insurance or pay a penalty, was unconstitutional. Virginia v. Sebelius, E.D. Va., No. 3:10-CV-188, memorandum opinion 12/13/10. The 42-page ruling declared that the penalty was beyond Congress’s Commerce Clause powers and could not be rationally construed as a tax. To learn more about this ruling, please click here to read the Client Alert published by the Employee Benefits and Executive Compensation Client Service Group on December 16, 2010.
CMS Issues Final Regulations Modifying Two Stark Exceptions
The CMS has issued final regulations that will change two important Stark exceptions: the in-office ancillary services exception and the physician owned hospital exception. These regulations result from changes made to both exceptions by the Patient Protection and Affordable Care Act (“PPACA”). For more about these regulations, please click here to read the Client Alert published by the Life Sciences and Health Care Client Service Group on December 16, 2010.
Supreme Court to Consider Three Patent Cases this Term
On Monday, November 29, 2010, the U.S. Supreme Court granted Microsoft’s petition for a writ of certiorari in a case that questions the evidentiary standard for invalidating patents. Microsoft Corp. v. i4i L.P., No. 10-290, 2010 WL 3392402 (S. Ct. 2010). To learn more about this case and the other patent cases to be considered by the Court this term, please click here to read the Client Alert published by the Intellectual Property practice group on December 2, 2010.
Civil Penalties Available for Suitable Seating
Bright v. 99¢ Only Stores confirms that PAGA Penalties can be recovered. A number of big box retailers recently have been hit with lawsuits for failure to provide suitable seating to cashiers. The California wage order covering the retail industry requires employers to provide working employees with suitable seats when the nature of the work reasonably permits their use. For more information on the case, please click here to read the Client Alert published by the Retail Client Service Group on December 7, 2010.
Enforcement International: The Anti-Bribery Hot Water Just Keeps Getting Hotter
Dramatic developments in anti-bribery law enforcement continue—and more are certain to follow in 2011 and beyond. For more information, please click here to read Bulletin 475 published by the International Trade Client Service Group on December 10, 2010.