Gibbons Law Alert

Gibbons Law Alert Blog

Department of Labor Final Overtime Rule

On May 23, 2016

The United States Department of Labor (“the DOL”) has finally issued the long-awaited rules dramatically increasing the minimum salary level for the overtime-exempt classifications under the Fair Labor Standards Act (“the FLSA”). The new rules also incorporate mechanisms to adjust this salary level in the future. The effect of future adjustments will require an employer to pay wage increases unrelated to the employer’s financial condition or employee performance. The new rules will have the greatest impact on those employees currently classified as exempt but who will not meet the new minimum salary threshold. These rules go into effect December 1, 2016, a date later than DOL originally communicated, which gives employers an opportunity to conduct a self-analysis to prepare for these changes.

BEIP Conversion Update: State Treasurer Recommends Amending Law

by Paul J. St. Onge and Michael D. DeLoreto

Posted in Business Incentives

On May 23, 2016

With projected revenues for State Fiscal Year (“SFY”) 2017 decreasing, on May 18, 2016, the NJ State Treasurer recommended that the Legislature amend the Business Employment Incentive Program (“BEIP”) conversion law (P.L.2015, c.194) to reduce the percentage of BEIP tax credits redeemable in SFY 2017 from thirty (30) percent to five (5) percent. In testimony before the Assembly and Senate Budget Committees, the Treasurer stated that any legislation implementing his recommendation should not change (1) the conversion election deadline of July 11, 2016; (2) the total number of years for the tax credits to be issued; or (3) the overall amounts convertible to tax credits. The only change sought by the Treasurer’s Office is to shift a greater percentage of BEIP tax credit redemptions to SFY 2018 through SFY 2021. If your business is a BEIP Grant recipient and you have questions regarding the BEIP conversion process, please contact a member of the Gibbons Government & Regulatory Affairs Department. We will continue to monitor the BEIP conversion program and any action to amend the existing law.

Update: Waterfront Access Stakeholder Group Reports to Senate Committee

by Michael D. DeLoreto

Posted in Environmental and Green Issues

On May 20, 2016

As previously reported, the New Jersey State Senate Environment and Energy Committee convened a stakeholder group to explore legislative action to address waterfront and shoreline public access. On April 21, 2016, the Committee took testimony from the stakeholder group, which will provide a full report to the Committee in a few weeks. Legislation based on the stakeholder’s report may be up for consideration in the fall. The stakeholder group received comments and participation from roughly 80 different entities. The stakeholder group members testified that a general consensus existed between all stakeholders regarding the need to protect critical infrastructure and hazardous sites from public access. This includes the State’s ports, nuclear facilities, chemical and petroleum locations, and environmentally compromised areas (i.e., locations subject to environmental cleanup). Consensus did not exist among the stakeholder group regarding access to waterfront property on or near industrial or commercial locations that are non-critical. There is also a lack of consensus regarding urban waterfront access near residential and commercial buildings. We will continue to monitor the Committee’s work towards drafting a legislative proposal on waterfront access. Should you or your organization have an interest in engaging on this issue, please contact a member of the Gibbons Government & Regulatory Affairs Department.

Defend Trade Secrets Act of 2016: Signed into Law

by Thomas J. Bean

Posted in Privacy and Data Security / Trade Secrets

On May 19, 2016

On May 11, 2016, President Obama signed the Defend Trade Secrets Act (“DTSA”) into law. President Obama publicly supported this legislation and efforts generally directed to strengthen trade secret protections within the U.S. economy. As we previously reported on May 3, 2016 and November 24, 2015, trade secret misappropriation was formerly treated exclusively as a matter of state law, governed by varied versions of the Uniform Trade Secrets Act as enacted in most states. A lack of uniform enactment of this Act resulted in differences in the application of the law between states, which presented difficulties for trade secret owners seeking to enforce their rights in the general commerce.

Clock Starts on BEIP Grant Conversion Program

by Paul J. St. Onge and Michael D. DeLoreto

Posted in Business Incentives

On May 18, 2016

Hundreds of New Jersey Business Employment Incentive Program (“BEIP”) Grant recipients may be eligible to convert their BEIP Grant to a refundable tax credit under Senate Bill 3232/Assembly Bill 4834 (S-3232/A-4834), which the State Legislature approved on December 17, 2015 and Governor Christie signed into law on January 11, 2016. If your business is a BEIP Grant recipient, Gibbons can assist you with the process of evaluating and implementing a BEIP conversion. Since the enactment of BEIP in 1996, New Jersey has entered into 499 BEIP agreements with businesses creating approximately 110,000 jobs and resulting in $12 billion in total economic activity. In 2013, the New Jersey Legislature enacted the “Economic Opportunity Act of 2013” which sunset BEIP and created the Grow New Jersey Assistance Program. The State has subsequently not fully funded BEIP Grant payments in the annual State budget. S-3232/A-4834 allows a business that is eligible to receive a BEIP Grant to direct the New Jersey Economic Development Authority (“NJEDA”) to convert its BEIP Grant to a refundable tax credit that would not be subject to the annual appropriations process. These tax credits may be applied against the business’ corporate tax liability, insurance premium tax liability, or foreign insurance tax liability. A business without these tax liabilities can apply for a tax credit...

New Jersey State Pay-to-Play Rules and Federal Elections

by Steven H. Sholk

Posted in Political and Campaign Finance Compliance

On May 18, 2016

New Jersey has its own individual pay-to-play rules that do not apply to federal candidates regardless of the state office that the candidate holds. The two sets of New Jersey pay-to-play rules (“Pay to Play Rules”) of concern are: (i) New Jersey statutory rules for state contracts under N.J.S.A. 19:44A-20.13-20.25, and (ii) New Jersey regulations of the New Jersey State Investment Council (“SIC”) pursuant to N.J.A.C. 17:16-4.1 to 4.11. The New Jersey Election Law Enforcement Commission (“ELEC”) and the New Jersey State Treasurer have stated that contributions to a federal account that are to be used only in federal elections will not trigger the New Jersey pay-to-play rules. See Advisory Opinion No. 03-2006; Letter of Bradley I. Abelow, New Jersey State Treasurer, June 23, 2006. The SIC regulations are applicable to political contributions and payments to political parties. See N.J.A.C. 17:16-4.2. Political contribution is defined as a contribution for the purpose of influencing any election for New Jersey state office, and under certain circumstances, any election for New Jersey local office. Since candidate committee for President is a candidate committee for a federal office, contributions to the committee are not political contributions. The SIC regulations define a “political party” as one that does not include a federal or national campaign committee, or nonstate political committee,...

Waterfront Access Regulations Make Long Walks on the Beach More Complicated

by Michael D. DeLoreto

Posted in Regulatory Counseling and Departmental Action

On May 18, 2016

For the second time in eight years, the New Jersey Appellate Division has rejected the State’s waterfront access regulations. On December 22, 2015, the court held in Hackensack Riverkeeper v. New Jersey Department of Environmental Protection that the most recent iteration of the waterfront access rules exceeded the authority of the NJDEP. This decision prompted quick legislative and executive action prior to the end of the 216th Legislative Session, and ushers in the possibility of future legislative action. NJDEP initially issued waterfront access regulations in 2007 that mandated broad public availability. These regulations were struck down by the Appellate Division in Borough of Avalon v. New Jersey Department of Environmental Protection, 403 N.J. Super. 590 (App. Div. 2008), certif. denied, 199 N.J. 133 (2009). In response to Avalon, the NJDEP issued new regulations in 2012 and 2015. The 2012/2015 regulations required each town to develop its own public access rules, known as Municipal Public Access Plans (“MPAP”). The MPAP would be reviewed and approved by the NJDEP on a case-by-case basis to ensure proper public access. After the NJDEP’s approval, the MPAP would then be incorporated into the town’s master plan. Upon a challenge from various groups, the Appellate Division concluded the latest regulations (1) exceeded the Legislature’s limited delegation of authority to the NJDEP...

U.S. Fish and Wildlife Proposes Changes to Eagle Management Program

by Gibbons P.C.

Posted in Development/Redevelopment / Environmental and Green Issues

On May 11, 2016

On May 4, 2016, the United States Fish and Wildlife Service (“FWS”) proposed amendments to regulations governing its comprehensive eagle conservation and management program. The proposal follows a successful challenge by environmental groups to FWS’ prior attempt to change its eagle rules, which was tossed out by a federal judge in 2013. The proposed modifications include changes to the manner by which FWS issues permits allowing otherwise prohibited activities which may unintentionally injure or disturb golden and bald eagles.

Legal Issues to Consider as Intern Season Approaches

by Gibbons P.C.

Posted in Wage and Hour

On May 11, 2016

With summer around the corner, it is a good time for a refresher on legal implications when hiring interns. Specifically, when must interns be paid and what other legal protections do interns have? Wage and Hour Issues – As has been widely publicized in recent years, a number of companies who utilize unpaid interns have found themselves the object of lawsuits. It is thus important for companies to make an informed decision on the compensation issue before the hiring process begins.

New York State Enacts a New Paid Family Leave Law

by Elizabeth Cowit

Posted in Family Leave

On May 9, 2016

New York State recently passed the Paid Family Leave Benefits Law, which is among the strongest and most comprehensive leave statutes in the country. The new law amends the State’s current disability law, and imposes obligations on employers beginning in 2018. Unlike the federal Family and Medical Leave Act (“FMLA”), the NY law will provide both protected leave and paid benefits during the leave. The new law covers employers in the for-profit sector, with at least one employee, along with certain other employers in the public and not-for-profit sectors.