Tax Bill Bars Companies From Deducting Payments in Sex Harassment Settlements Where Agreement Is Subject to a Nondisclosure Agreement

The Tax Cuts and Jobs Act of 2017 (the “Tax Bill”), which President Trump signed into law on December 22, 2017, eliminates companies’ ability to deduct settlement payments in sexual harassment cases, where such payments are subject to non-disclosure clauses (“NDAs”). Under the extremely broad provision, “No deduction shall be allowed” for “(1) any settlement or provision related to sexual harassment or sexual abuse if such settlement or payment is subject to a nondisclosure agreement, or (2) attorney’s fees related to such a settlement or payment.” The prohibition applies to amounts “paid or incurred” after December 22, 2017, meaning that companies currently negotiating sexual harassment claims are affected.

Campbell Litigation, P.C.January 11, 2018Tax Cuts and Jobs Act, Trump, Internal Revenue CodeComment

Paid Leave Measures Introduced to Congress

Paid leave has been a high-profile issue in Congress this year after President Trump and his daughter, White House aide Ivanka Trump, asked Congress to find ways to consider paid leave for working families. In Colorado, there is currently no requirement for employers to provide paid family and medical leave to their employees. Several bills have been introduced to Congress this year which would allow employees to receive some form of paid leave.

Campbell Litigation, P.C.December 7, 2017Paid Leave, Ivanka Trump, Family Act, Tax Cuts and Jobs ActComment

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