A Compilation Of Recent Updates You Should Know
RMD Rules Changing for IRAs
People are living longer despite the economy, so the starting age for mandatory RMD withdrawals from IRA accounts has been increased to 73 … for individuals who turn age 72 this year (i.e., after 12/31/22).
Maryland Studying 4-Day Workweek
Bills in both houses of the Maryland legislature propose a study for a shift to a 4-day workweek for both private and public employers in Maryland. We trust there will be some minimum coverage scheduling requirements in whatever results are implemented.
Unions on the Move
A bit of a paradox exists in the union arena: the rate of unionization has actually decreased, although the actual number of employees in unions has increased. One industry that is facing union activity is the video game industry, as a result of long hours and allegedly poor working conditions, including sexual harassment and discrimination and a lot of pressure. One would think developing games would be enjoyable, as people follow their passion to work in the software industry. But the size and competition in that industry have led to poor practices by both management and employees. One common practice is called the “crunch,” where employees have to work 60 – 100 hours per week to meet a deadline. Game testers organized at Microsoft, for example – not the type of job one would normally consider high-tension. Other reasons for unionizing, according to game developers, include the ability to work from home, create collective power and support co-workers.
The point here is that if it can happen in what might be assumed (rightly or wrongly) to be an “idyllic” industry environment like software game development, it can happen anywhere employee concerns are not addressed. Managers need to remember that communication includes listening as well as speaking. Those who forget may end up paying a steep price – all the more likely with a labor-friendly administration and NLRB in place.
Social Security Taxable Income Level Increased
Effective this past January 1, the level of income subject to Social Security tax increased from $147,000 to $160,200, an increase of $13,200, or nearly 9 percent. This obviously does not reflect anticipated earnings increases – more likely it reflects the status of the mythological (i.e., existing on paper only) Social Security Trust Fund.
California Ban on Arbitration Agreements Overturned
California had enacted legislation that called for potential criminal and civil penalties if employers required signing of an arbitration agreement as a condition of employment. That law has been struck down by the (liberal) 9th Circuit Court as being an “unacceptable obstacle to the accomplishment and execution of the full purposes and objectives” of the Federal Arbitration Act (“FAA”). The 9th Circuit had previously upheld the law, but a Supreme Court decision regarding arbitration led the 9th Circuit to withdraw that verdict and reconsider, leading to the above outcome.