On May 16th, Governor Cuomo announced the issuance of proposed regulations by several New York State agencies which limit administrative costs and executive compensation for entities receiving State funding or State-authorized payments. The proposed regulations arise from Executive Order No. 38, which generally restricts covered organizations from spending more than $199,000 in State funds on executive compensation.
On April 18, 55% of Citibank’s voting shareholders refused to approve the compensation plan for Citibank’s top five executives, including its Chief Executive Officer. To read more about this recent excercise the "say-on-pay" power under the Dodd-Frank Consumer Fraud and Protection Act (“Dodd-Frank”), click here for an article written by my colleagues Andrew J. Bernstein and Jessica W. Catlow.
According to the Wall Street Journal, RIM employees left “no stone unturned” in an effort to resolve the recent, well-publicized blackberry outages. Once the outages were finally resolved, should non-exempt employees be paid overtime for the time they spent at home catching up on the emails accumulated on their Blackberrys? For the answer to this and other thorny questions, click here.
At a signing ceremony held this morning at the offices of the Department of Labor in Washington, D.C., the DOL and the IRS signed a memorandum of understanding that will likely result in increased DOL and IRS enforcement proceedings against employers accused of misclassifying employees as independent contractors. Seven states also signed similar agreements, including Connecticut, Maryland, Massachusetts, Minnesota, Missouri, Utah, and Washington. Hawaii, Illinois, Montana, and New York are expected to follow shortly.
My colleague, Tyrone Thomas, writes that "The Governor of New York has taken a strong and outspoken stance aimed at placing those with the largest paychecks at institutional nonprofits under a microscope. Governor Cuomo’s newly formed Task Force on Not-For-Profit Entities will be conducting a review of current compensation levels of not-for-profit organizations that have received funds from the State of New York." Please read the entire advisory here.